Vietnam’s Decree 47: Compensation for land currently used by residential community

According to Article 5 of Decree No. 47/2014/ND-CP of Vietnam’s Government, compensation for land and expenses invested in agricultural land currently used by residential community and religious establishments as defined in Clause 3 Article 78 of the Law on Land shall be done as follows:

- As for agricultural land used before July 01, 2004 (the effective date of the Law on Land 2003) including the land not originally allocated by the State, the land leased out by the State with annual payment of land rent and included with Certificate of land use right or eligible for issuance of certificates of land use right, ownership of land-linked houses and properties as defined in Article 100 and 102 of the Law on Land shall be compensated in the form of land as defined in Clause 2, Article 74 of the Law on Land of Vietnam;

- As for agricultural land originally allocated by the State without payment of land levies, or leased out by the State with annual payment of land rent shall not be compensated in the form of land but shall be compensated for the remaining land-related investment expense (if any). Determination of the remaining land-related investment expense for compensation shall be done according to the provisions set out in Article 3 of Decree No. 47/2014/ND-CP.

Besides, compensation for land and the remaining expenses invested in the land not owned by residential community, religious establishments as defined in Clause 5, Article 81 of the Law on Land of Vietnam shall be stipulated as follows upon expropriation of non-agricultural land by the State:

- As for non-agricultural land used before July 01, 2004 including the land not originally allocated by the State, the land leased out by the State with annual payment of land rent and included with Certificate of land use right or eligible for issuance of certificates of land use right, ownership of land-linked houses and properties as defined in Article 100 and 102 of the Law on Land shall receive compensation for land as defined in Clause 2, Article 74 of the Law on Land;

- Non-agricultural land that is used by religious establishments from July 01, 2004 to the date of expropriation notification and originates from land transfer or gifts shall not be compensated for land;

- Agricultural land originally allocated by the State without payment of land levies, or leased out by the State with annual payment of land rent shall not be compensated for land but shall be compensated for the remaining land-related investment expense (if any). Determination of the remaining land-related investment expense for compensation shall be done according to the provisions set out in Article 3 hereof;

- In case all or part of the area of land is expropriated and the remaining area is ineligible for use and if residential community or religious establishments need to use the land for their common purposes, they shall receive new land allocated elsewhere. Such allocation must conform to land-use planning approved by competent agencies.

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

Thu Ba

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