Vietnam: Guidelines for compensation for land upon expropriation of inhabited land by the State

According to Article 6 of Decree No. 47/2014/ND-CP of Vietnam’s Government, compensation for land upon expropriation as defined in Article 79 of the Law on Land of Vietnam shall be done as follows:

Case 1: Households and individuals, overseas Vietnamese who are owning inhabited land, land - linked houses in Vietnam, have Certificate of land use right or are eligible for issuance of Certificates of land use right, ownership of land-linked houses and properties according to the Law on Land, the compensation for land shall be done as follows:

- In case all of inhabited land is expropriated or the remaining area of inhabited land after expropriation is ineligible for residence according to the regulations prescribed by the province-level People’s committee and such owners have no other land or houses elsewhere for residence, the compensation in the form of land or resettlement housing shall be made to them.

- In case all of inhabited land is expropriated or the remaining area of inhabited land after expropriation is ineligible for residence according to the regulations prescribed by the province-level People’s committee and such owners have land or houses elsewhere for residence, the compensation in money shall be made to them. For localities that have land fund, compensation in the form of land shall be considered.

Case 2: In case one household of multiple families residing in the same parcel of land subject to expropriation or multiple households co-owning the same parcel of land subject to expropriation and if such land is eligible for division into separate families according to the provisions of the Law on Residence, the province-level People’s committee shall rely on land fund, resettlement housing and actual circumstances in the locality to decide grant of land, resettlement housing to individual households.

In which, households and individuals, overseas Vietnamese as defined in Case 1 who do not require compensation in the form of land or resettlement housing shall be compensated in money by the State.

Besides, if households and individuals are subject to relocation but ineligible for compensation of land, the State shall offer sale, lease, lease-purchase of houses or allocation of inhabited land with land levies if such households and individuals have no other land or houses elsewhere for residence upon expropriation by the State. Prices of sale, lease, lease-purchase of houses; rate of land levies on land allocated by the State shall be stipulated by the province-level People’s committee.

In case portion of the inhabited land subject to expropriation is agricultural land and not yet recognized as inhabited land, conversion of such portion of land into inhabited land shall be accepted by the State upon demand by households and individuals as owners thereof. However, portion of land to be converted into inhabited land must fall within the limit of land allocation by locality and such conversion of use purpose must conform to land-use planning approved by competent agencies. Upon conversion of use purpose, households and individuals must perform their financial obligations as stipulated by the Law on collection of land levies, land rent, water surface rent.

In case a parcel of land currently employed by economic organizations, overseas Vietnamese, foreign-invested enterprises (commonly referred to as entities) for a construction project is subject to expropriation by the State, and if conditions for compensation as defined in Article 75 of the Law on Land are met by such entities, compensation shall be accepted and made as follows:

- In case a portion of the land is expropriated and the remaining portion is still eligible for the implementation of the construction project, compensation for the expropriated portion shall be made in the form of money;

- In case all or portion of the land is expropriated and the remaining portion is ineligible for the implementation of the construction project, compensation for all or portion of the expropriated land shall be made in the form of land for the implementation of the project or in the form of money;

- For any project that is already put into practice, compensation shall be made in the form of money upon expropriation.

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

Thu Ba

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