Can expired land be compensated when it is recovered in Vietnam?

Can expired land be compensated when it is recovered in Vietnam?

Article 82 of the 2013 Land Law stipulates cases in which compensation for land is not made upon land expropriation by the State, according to which:

The State shall recover land without compensation for land in the following cases:

1. The cases specified in Clause 1, Article 76 of this Law;

2. Land which is allocated by the State for management;

3. Land which is expropriated as prescribed in Article 64 and at Points a, b, c and d, Clause 1, Article 65 of this Law;

4. Cases that are not eligible for a certificate of land use rights and ownership of houses and other land-attached assets in accordance with this Law, except the cases prescribed in Clause 2, Article 77 of this Law.

5. Principles of support upon land expropriation by the State:

a/ Upon land expropriation by the State, in addition to receiving compensation in accordance with this Law, land users shall also be considered for receiving support from the State;

b/ The support must ensure impartiality, equality, publicity, timeliness and lawfulness.

6. The support upon land expropriation by the State includes:

a/ Support for stabilizing livelihood and production;

b/ Support for training, occupation change and job seeking for cases of recovery of agricultural land from households and individuals directly engaged in agricultural production, or of recovery of land which is a combination between residential land and land for trading and services of households and individuals that have to be relocated;

c/ Support for resettlement in case of recovery of land from households, individuals and overseas Vietnamese who have to be relocated;

d/ Other support.

7. The Government shall detail this Article.

According to Article 65 of the 2013 Land Law, land expropriation due to termination of land use in accordance with law, voluntary return of land or risks of threatening human life include:

1. Cases of land expropriation due to termination of land use in accordance with law, voluntary return of land or risks threatening human life include:

a/ Organizations to which land is allocated by the State without land use levy, or organizations to which land is allocated with land use levy and the land use levy is originated from the state budget, are dissolved, go bankrupt, move to another place, or have lower or no land use demand; land users which lease land with annual rental payment are dissolved, go bankrupt, move to another place, or have lower or no land use demand;

b/ Individual land users die without any heir;

c/ Land users return the land voluntarily;

d/ Land is allocated or leased by the State for definite periods and such periods expired without extension allowed;

e/ Land is located in environmentally polluted areas which bears the risks of threatening human life;

f/ Land having risks of being eroded or sunk or otherwise affected by other natural disasters threatening human life.

According to this Article, when you do not carry out the procedures for extending the land use period after the expiration date, at the time the State recovers the land, your family will not be compensated in Vietnam.

If payment of compensation for land is delayed, will people request to calculate interest in Vietnam?

According to Article 93 of the Land Law 2013, payment of compensation, support and resettlement money, specifically as follows:

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.

Clause 2, Article 59 of the Law on Tax Administration 2019 provides as follows:

2. Calculation of late payment interest:

a) The rate of late payment interest is 0,03% per day on the overdue amount;

b) The period over which late payment interest is charged is a continuous period from the day succeeding the day on which late payment interest is charged as specified in Clause 1 of this Article to the day preceding the date of payment of the outstanding tax, refunded tax, increase in tax, imposed tax.

Thus, in case an individual or household is late in paying compensation in Vietnam, in addition to compensation and support according to the compensation and resettlement plan approved by a competent authority, they can also claim to calculate late payment interest from the day succeeding the day on which late payment interest is charged, from the effective date of the withdrawal decision.

When the State recovers land and causes damage to crops, what is implementation of compensation in Vietnam? 

Pursuant to Clause 1, Article 90 of the 2013 Land Law, compensation for plants and livestock is as follows:

1. In case the land expropriation by the State causes damage to plants, the compensation shall be made according to the following provisions:

a/ For annual crops, the compensation must be equal to the output value of the harvest. The output value of the harvest is the highest yield of the harvests in the preceding 3 years of the local main crop and the average price at the time of land expropriation;

b/ For perennial crops, the compensation must be equal to the current value of the planting area calculated in local prices at the time of the land expropriation, excluding the value of land use rights;

c/ For plants which have not been harvested yet but can be brought to another location, the transportation cost and the actual damage due to the transportation and re-planting must be compensated;

d/ For planted forests funded by the state budget and for natural forests allocated to organizations, households and individuals for planting, management, growing or protection, the value of the actual damage must be compensated. The compensation amount must be divided to those who manage, grow and protect the forests in accordance with the law on forest protection and development.

According to this Article, when the State recovers land and causes damage to crops, the compensation shall comply with the above provisions in Vietnam.

Besy Regards!