Regulations on life stabilization supports upon land expropriation by the State in Vietnam from August 1, 2024

Regulations on life stabilization supports upon land expropriation by the State in Vietnam from August 1, 2024 (Image from the internet)

On July 15, 2024, Hanoi promulgated Decree 88/2024/ND-CP stipulating compensation, support, and resettlement upon land expropriation by the State.

Regulations on life stabilization supports upon land expropriation by the State in Vietnam

(1) Households and individuals currently using agricultural land, if eligible for land compensation, will receive life stabilization supports as follows:

- Recovering between 30% and 70% of the agricultural land area currently in use will be supported for 6 months if not having to relocate, and for 12 months if having to relocate; in case of moving to areas with difficult socio-economic conditions or particularly difficult socio-economic conditions, the maximum support period is 24 months. For cases of recovering more than 70% of the agricultural land area currently in use, support will be provided for 12 months if not having to relocate, and 24 months if having to relocate; in case of moving to areas with difficult socio-economic conditions or particularly difficult socio-economic conditions, the maximum support period is 36 months;

- The area of agricultural land recovered to calculate life stabilization supports as specified in point a of this clause is the area within the commune-level administrative unit where land is recovered at the time of the decision approving the compensation, support, and resettlement plan, and is determined for each land recovery project by the competent People's Committee without aggregating the recovered agricultural land areas of previous land recovery projects;

- The support amount for each person as specified above is calculated in cash equivalent to 30 kg of rice per month at the local average price at the time of support.

(2) In cases where households and individuals currently using land as specified in (1) have less than 30% of their agricultural land area recovered; households and individuals currently using land not eligible for land compensation or allocated for agricultural, forestry, aquaculture, or salt production purposes from state-owned farms, forestry farms, or converted state-owned agricultural enterprises, agricultural production groups, agricultural cooperatives, and having land allocation contracts, the provincial People's Committee shall decide the support level, support period, and periodic payments of support money suitable for each specific case but not exceeding the support level stipulated in (1).

(Article 19 Decree 88/2024/ND-CP)

Regulations on production and business stabilization support upon land expropriation by the State in Vietnam

Based on Article 20 of Decree 88/2024/ND-CP, the support for production and business stabilization upon land expropriation by the State stipulated in point b clause 1 Article 108 of the Law on Land 2024 is implemented as follows:

- Entities eligible for production and business stabilization support

+ Economic organizations, households, individuals engaged in production, business, foreign-invested economic organizations whose production and business activities are suspended and are eligible for land compensation will receive support for production and business stabilization;

+ Households and individuals currently using land allocated for agricultural, forestry, aquaculture, or salt production purposes, within the scope of clause 2 Article 19 of Decree 88/2024/ND-CP, will be supported for production stabilization.

- Conditions for receiving production and business stabilization support

+ For households, individuals, economic organizations, and foreign-invested economic organizations eligible for land compensation;

+ For households and individuals currently using land allocated as per clause 2 Article 19 of Decree 88/2024/ND-CP, there must be a land allocation contract.

- The implementation of production and business stabilization support follows these regulations:

+ Households and individuals whose agricultural land is recovered will be supported for production and business stabilization, including: plant seed, livestock seed support for agricultural production, agricultural and forestry extension services, plant protection services, veterinary services, cultivation techniques, livestock techniques, and business and production technical services within the public and commercial sector;

+ For economic organizations, households, individuals engaged in production, business, and foreign-invested economic organizations within the above criteria, support will be provided in cash equal to 30% of one year’s post-tax income, based on the average post-tax income of the previous 3 consecutive years.

Post-tax income is defined as income after paying personal income tax and corporate income tax as per the laws on personal income tax and corporate income tax.

- Employees of economic organizations, households, individuals engaged in production, business, and foreign-invested economic organizations within the above criteria under labor contracts shall be granted job loss allowance policies according to labor law with the period of allowance not exceeding 6 months.

- For households and individuals currently using land allocated for agricultural, forestry, aquaculture, or salt production purposes from state-owned farms, forestry farms, or agricultural companies converted from state-owned farms, agricultural production groups, agricultural cooperatives, and having land allocation contracts, the provincial People's Committee shall decide on production stabilization support levels appropriate for each project.

- The provincial People's Committee shall decide support levels, support periods, and periodic payments of support money in line with local realities.

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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