Guidance on calculating compensation upon land expropriation for safety protection corridor in Vietnam

Guidance on calculating compensation upon land expropriation for safety protection corridor in Vietnam (Image from the Internet)

Guidance on calculating compensation upon land expropriation for safety protection corridor in Vietnam

According to Article 106 of the Land Law 2024, during the construction of a project, in areas with a safety protection corridor but without reclaiming land within the corridor's boundaries, the land user is compensated for damages due to the restricted use of the land and the damage to assets attached to the land as per the regulations of the Government of Vietnam.

Article 18 of Decree 88/2024/ND-CP stipulates compensation and support upon land expropriation for safety protection corridor in Vietnam as follows:

(1) Compensation for damages due to restricted land use within the safety protection corridor as prescribed in Article 106 of the Land Law 2024 is carried out as follows:

- Changing the land use purpose from homestead land to non-agricultural non-homestead land or from homestead land to agricultural land, the level of compensation is determined as follows:

Tbt = (G1 - G2) x S

- In which:

+ Tbt: Compensation money for damages;

+ G1: Average price of homestead land per m²;

+ G2: Average price of non-agricultural non-homestead land or agricultural land per m²;

+ S: Area of land subject to change in land use purpose;

- Changing the land use purpose from non-agricultural non-homestead land to agricultural land, the level of compensation is determined as follows:

Tbt = (G3 - G4) x S

- In which:

+ Tbt: Compensation money for damages;

+ G3: Average price of non-agricultural non-homestead land per m²;

+ G4: Average price of agricultural land per m²;

+ S: Area of land subject to change in land use purpose.

- In cases where the land use purpose is not changed but the land use capacity is restricted, the compensation level for damages is determined by the Provincial People's Committee based on the actual situation in the locality.

(2) For houses, other constructions, and other assets attached to the land within the safety protection corridor, the protection area, or the safety belt that are damaged due to clearance, the compensation is provided according to the level of damage as stipulated.

(3) When the safety protection corridor, the protection area, or the safety belt occupies more than 70% of the area of a parcel with a house or construction, the remaining land area is also compensated according to sections (1) and (2) if the remaining land area is smaller than the minimum area stipulated by the Provincial People's Committee as specified in clause 2 of Article 220 of the Land Law 2024 for residential parcels or if it does not meet the conditions for construction according to specialized legislation for parcels with constructions.

(4) Residential land with houses attached within the safety protection corridor, the protection area, or the safety belt when construction requires relocation as per the decision of a competent state authority, the land user and the owner of the house attached to the land, if having a demand, are entitled to resettlement arrangement, compensation for relocation costs, and support for stabilizing life and production in addition to the compensation provided in section (1).

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