Guideline for recompense, support, and resettlement payment upon land expropriation by the State in Vietnam from August 1, 2024

Guideline for recompense, support, and resettlement payment upon land expropriation by the State in Vietnam from August 1, 2024 (Image from Internet)

On July 15, 2024, the Government of Vietnam issued Decree 88/2024/ND-CP on regulations for recompense, support, and resettlement upon land expropriation by the State.

Guideline for recompense, support, and resettlement payment upon land expropriation by the State in Vietnam from August 1, 2024

Article 25 of Decree 88/2024/ND-CP stipulates the payment of recompense, support, and resettlement upon land expropriation by the State in Vietnam as follows:

- The deduction of unpaid financial obligations related to land from the compensated amount as provided in Clause 6, Article 94 of the Land Law 2024 shall be implemented according to the following provisions:

+ Unpaid financial obligations related to land include land levy and land rent payable to the Government and late payment fees (if any) that have not been settled by the time the recompense, support, and resettlement plan is approved;

+ The unpaid financial obligations stipulated in point a, clause 1, Article 25 of Decree 88/2024/ND-CP are determined in accordance with the laws on land levy and land rent collection.

In cases where the unpaid financial obligations exceed the compensation amount at the time of the recompense, support, and resettlement plan approval, the household or individual continues to owe the difference; if the household or individual is assigned resettlement, the remaining unpaid amount is deducted from the amount needed for obtaining homestead land or purchasing a house at the resettlement location, and the remaining unpaid financial obligations are still recorded as debt.

+ Compensation amounts to be deducted for unpaid financial obligations include compensation for land and compensation for remaining investments in the land (if any).

Amounts compensated for relocation costs, damage to property, business interruption, and other support payments shall not be deducted from unpaid financial obligations related to land.

- For cases of compensation by allocation of new land or homestead land, or resettlement housing, any value difference shall be settled in cash according to the following provisions:

+ If the land compensation amount is greater than the homestead land or resettlement housing value, the resettled person receives the difference;

+ If the land compensation amount is less than the homestead land or resettlement housing value, the resettled person must pay the difference, except as provided in clause 1, Article 24 of Decree 88/2024/ND-CP.

- When determining the compensation amount for land that the landholder is entitled to under Decree 88/2024/ND-CP, the land levy and land rent as if a Land Use Right Certificate is issued at the time the recompense, support, and resettlement plan is approved must be deducted.

- Compensation and support for persons with shared land use rights and assets attached to the land upon land expropriation by the State shall be allocated according to the agreement among those with shared land use rights and assets in compliance with civil law provisions.

- In cases where the recovered land and attached assets are in dispute and have not been resolved, compensation and support money shall be deposited into the deposit account of the unit, organization tasked with recompense, support, and resettlement at a state-controlled commercial bank. After the authorized state agency resolves the dispute, the money is paid to the legitimate land user or asset owner.

More details can be found in Decree 88/2024/ND-CP, which comes into force in Vietnam from August 1, 2024.

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