Will land allocated by the People's Committee be expropriated in Vietnam? If the person whose land is expropriated does not receive compensation, will that money belong to the State Treasury in Vietnam?

Will land allocated by the People's Committee be expropriated in Vietnam?

In 2015, my family was assigned a piece of land with an area of ​​500 m2 by the People's Committee for agricultural production purposes. However, recently the District People's Committee decided to expropriate that land due to violation of land allocation authority. Please let me know if this is legal?

Reply:

Clause 3, Article 75 of the 2013 Land Law stipulates the authority of the Commune People's Committee as follows:

3. Overseas Vietnamese who are allocated land with land use levy by the State, or are leased land with full one-off rental payment for the entire lease period, or are transferred land use rights in industrial parks, industrial clusters, export processing zones, hi-tech zones or economic zones, having a certificate or being eligible to be granted a certificate of land use rights and ownership of houses and other land-attached assets under this Law but not being granted that certificate yet.

Thus, the People's Committee of the commune handing over land to your family is not within its authority in Vietnam.

Clause 1, Article 63 of the 2013 Land Law regulates land expropriation due to land law violations as follows:

...

c) Land is allocated or leased to the wrong person or without the right authority;

...

Clause 5, Article 23 of Decree 45/2014/ND-CP regulates grant of certificates of land use rights and ownership of houses and other land-attached assets to households and individuals that are allocated land ultra vires as follows:

5. The State shall not grant certificates of land use rights and ownership of houses and other land-attached assets for and shall recover all land areas allocated or leased ultra vires on and after July 1, 2014.

Comparing with your case, the decision by the District People's Committee to expropriate land due to violation of land allocation authority is in accordance with the law in Vietnam.

Will land allocated by the People's Committee be expropriated in Vietnam? If the person whose land is expropriated does not receive compensation, will that money belong to the State Treasury in Vietnam? (Image from the Internet)

Can people whose land is expropriated be able to negotiate compensation prices in Vietnam?

Let me ask, my land is subject to land recovery but the price is too low, do I have right to negotiate the price with the State?

Answer: Pursuant to Clause 2, Article 74 of the 2013 Land Law, which stipulates principles of compensation upon land expropriation by the State:

2. The compensation must be made in the form of allocating new land with the same land use purpose with the expropriated land. If there is no land available for compensation, the land users shall receive compensation in money calculated according to the specific land price of the type of expropriated land which is decided by the provincial-level People’s Committee at the time of the recovery decision.

Therefore, there are two forms of land compensation when the state decides to  expropriate:

+ One is to allocate land with the same use purpose as the land  expropriated by the State.

+ Second is monetary compensation. For this form, the price will be calculated according to the land price of each specific type of land decided by the Provincial People's Committee at the time of expropriation.

Therefore, the land price that you are compensated for is based on the price that the Provincial People's Committee has issued and you do not have the right to negotiate the price in case of land expropriation in Vietnam.

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If the person whose land is expropriated does not receive compensation, will that money belong to the State Treasury in Vietnam?

When the state compensates money for land expropriation, if the compensated person does not receive it, who does that money belong to?

Reply:

Pursuant to Clause 3, Article 93 of the 2013 Land Law stipulates:

1. Within 30 days after the decision on the land expropriation by a competent state agency takes effect, agencies and organizations in charge of compensation shall pay compensation and support to people whose land is expropriated.

2. If agencies and organizations in charge of compensation delay the payment, in addition to the compensation and support prescribed in approved plans for compensation, support and resettlement, people whose land is expropriated are entitled to an amount equivalent to the late- payment interest in accordance with the Law on Tax Administration calculated based on the unpaid amount and the delayed period.

3. In case people whose land is expropriated do not receive the compensation and support prescribed in approved plans for compensation, support and resettlement, this compensation and support must be deposited in the temporary custody account of the State Treasury.

4. For land users who are entitled to compensation upon land expropriation by the State but have not fulfilled land-related financial obligations as prescribed by law, the amount of these financial obligations must be deducted from the compensation amount and paid back to the state budget.

5. The Government shall detail this Article.

Thus, when receiving compensation due to land expropriation, if you do not come to receive it, that money will be deposited in the treasury for temporary custody, not owned by that treasury in Vietnam.

Best regards!