Vietnam: Reimbursement of compensation, land clearance in Da Nang hi-tech park

On January 04, 2018, the Government of Vietnam issued Decree No. 04/2018/ND-CP providing for preferential policies for Da Nang hi-tech park. What are the cases in which land users are not required to reimburse compensation and land clearance costs?

According to Article 6 of Decree No. 04/2018/ND-CP of Vietnam’s Government, land users are not required to reimburse compensation and land clearance costs in the following cases:

- Land is allocated without land use fees or exempted from land rent for the entire lease period, and the Land Management Board has transferred the land before July 01, 2014;

- Land is used for the construction of transportation works, technical infrastructure, green areas, and public parks according to the general construction plan and functional zoning plan (including cases where the land was used before the effective date of this Decree);

- The Land Management Board and its subordinate units use the land to build agency headquarters, public works, facilities for management and infrastructure operations (including cases where the land was used before the effective date of this Decree);

- Land is leased under an annual land rent payment scheme and is eligible for exemption or reduction of land rent but the user voluntarily chooses not to enjoy the land rent incentives;

- For projects with a capital scale of VND 3,000 billion or more, land users are not required to reimburse compensation and land clearance costs.

Cases of land use not specified above must comply with the regulations on reimbursement of compensation and land clearance costs.

View more details at: Decree No. 04/2018/ND-CP of Vietnam’s Government takes effect from February 20, 2018.

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