Vietnam: Calculation of compensation for losses caused to houses upon expropriation by the State

According to Article 9 of Decree No. 47/2014/ND-CP of Vietnam’s Government, compensation for land-linked houses, construction works upon expropriation as defined in Clause 2, Article 89 of the Law on Land shall be done as follows:

- Compensation for houses and works equals the total existing value of lost houses, works and the amount of money is calculated in percentage of the existing value of such houses, works. In which:

+ Existing value of lost houses, works is determined by multiplying percentage of remaining quality of such houses, works by the value of complete construction of houses, works according to technical standards promulgated by relevant ministries.

+ Amount of compensation is calculated in percentage of the existing value of houses, construction works shall be stipulated by the province-level People’s committee but not exceed 100% of value of complete construction of houses, works with technical standards equivalent to lost houses, construction works.

Existing value of lost houses, construction works shall be determined as follows:

In which:

Tgt: Existing value of lost houses, works;

G1: Value of new construction of lost houses, works with technical standards promulgated by relevant ministries;

T: Depreciation period applied to lost houses, works;

T1: Period over which lost houses, works are used;

- For any house or work part of which is demolished and the remaining part is unusable, compensation shall be made for the entire house or work; houses, works part of which is demolished and the remaining part is usable, compensation shall be made for the demolished part only plus expenses for repair and completion of the remaining part according to technical standards applied to houses, works prior to demolition.

- For houses, works that do not meet technical standards as stipulated by relevant ministries, the province-level People’s committee shall rely on actual circumstances in the locality to decide specific compensation appropriately.

View full text at Decree No. 47/2014/ND-CP of Vietnam’s Government, effective from July 01, 2014.

Thu Ba

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