Regulations on budgets for recompense, support and resettlement in Vietnam from August 1, 2024

Regulations on budgets for recompense, support and resettlement in Vietnam from August 1, 2024 (Image from the internet)

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

Budgets for recompense, support and resettlement in Vietnam from August 01, 2024

According to Article 28 of Decree 88/2024/ND-CP, budgets for recompense, support and resettlement in Vietnam are regulated as follows:

- The Budgets for recompense, support and resettlement in Vietnam is regulated in Clause 1, Article 94 of the Land Law 2024. The determination of compensation, support, and resettlement funding must follow an approved plan by the competent authority.

- upon land expropriation by the State to implement projects, the funding is regulated as follows:

+ The budgets for recompense, support and resettlement in Vietnam are included in the total investment of the project;

+ Ministries and sectors are responsible for ensuring the Budgets for recompense, support and resettlement in Vietnam for investment projects decided by the National Assembly, approved, and decided by the Prime Minister, and projects invested by ministries and central authorities;

+ Provincial People's Committees are responsible for ensuring the Budgets for recompense, support and resettlement in Vietnam for projects under the decision authority of the provincial People's Council and projects outlined at point b of this clause but the responsibility is assigned to the provincial People’s Committee;

+ In cases where the investor voluntarily advances the money for compensation, support, and resettlement for units or organizations implementing compensation, support, and resettlement, they are responsible for ensuring the funding.

Responsibilities for recompense, support and resettlement in Vietnam

- Ministries, ministry-level agencies, agencies under the Government of Vietnam, economic groups, general companies, and public service providers with investment projects requiring land repossession must cooperate with local People's Committees and implementing units or organizations to ensure Budgets for recompense, support and resettlement in Vietnam as per Decree 88/2024/ND-CP.

- Provincial People's Committees are responsible for directing the organization of recompense, support, and resettlement upon land expropriation by the State as per Decree 88/2024/ND-CP.

- The Ministry of Natural Resources and Environment is responsible for inspecting and auditing the implementation of recompense, support, and resettlement upon land expropriation by the State as per this Decree.

(Article 29 of Decree 88/2024/ND-CP)

Principles of recompense, support, and resettlement upon land expropriation by the State in Vietnam

The principles of recompense, support, and resettlement upon land expropriation by the State in Vietnam are regulated in Article 91 of the Land Law 2024 as follows:

- recompense, support, and resettlement upon land expropriation by the State must ensure democracy, objectivity, fairness, transparency, promptness, and conformity with legal regulations; for the common benefit, sustainable, civilized, and modern development of the community and local areas; considerate of social policy beneficiaries and direct agricultural producers.

- Compensation for land is carried out by assigning land with the same usage purpose as the repossessed land. If there is no land for compensation, monetary compensation is made according to the specific land price of the repossessed land type as decided by the competent authority at the time of approving the compensation, support, and resettlement plan.

In cases where land repossessed individuals are compensated by land, if they wish to be compensated with money, they will be compensated with money as per their registered preference while establishing compensation, support, and resettlement plans.

For those who have land repossessed and have a demand and local conditions permit, compensation can be considered by allocating land with different usage purposes from the repossessed land or by housing.

- Asset owners as per civil law who suffer damage to assets are entitled to compensation. Those who have production or business establishments stopping production due to land repossession by the State are considered for support.

- The State is responsible for supporting the individuals whose land is repossessed and asset owners to create employment, ensure income, and stabilize living and production conditions.

- Resettlement areas must have fully completed technical and social infrastructure conditions according to the detailed planning approved by competent authorities; they must also conform to local cultural traditions, customs, and practices. Resettlement areas can accommodate one or multiple projects.

- Provincial and district People's Committees are responsible for organizing the establishment and implementation of resettlement projects to ensure proactive resettlement arrangements for individuals whose land is repossessed. Approval of compensation, support, and resettlement plans and resettlement arrangements must be completed before the land repossession decision.

- Upon land expropriation by the State according to Articles 78 and 79 of the Land Law 2024 and the remaining land area after repossession is less than the minimum area as regulated by the provincial People’s Committee (Clause 2, Article 220 of the Land Law 2024), if the land user agrees to repossession, the competent authority decides on land repossession and implements compensation, support, and management of this land area according to the law.

Compensation and support funding for land repossession as regulated in this clause are included in the compensation, support, and resettlement funding of the investment project.

Le Nguyen Anh Hao

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