Land compensation and resettlement in Vietnam under Decree 88/2024/ND-CP

On July 15, 2024, the Vietnamese Government promulgated Decree 88/2024/ND-CP regulating land compensation and resettlement when the State expropriates land. This new regulation will officially take effect on August 1, 2024, immediatle with Land Law 2024. In the article below, Viet An Law Firm will analyze some notable contents in the new regulations on land compensation and resettlement in Vietnam under Decree 88/2024/ND-CP.

Overview of Decree 88/2024/ND-CP

Promulgated day

15/7/2024

Effective date

1/8/2024

Replaced documents

The following Decrees cease to be effective from the effective date of Decree 88/2024/ND-CP:

• Decree 47/2014/ND-CP regulating land compensation, support and resettlement upon expropriation by the State;
• Decree 06/2020/ND-CP amends and supplements Article 17 of Decree 47/2014/ND-CP.

Governing scope

Pursuant to the new Vietnam Land Law 2024, the Government promulgated a Decree to guide regulations on land compensation and resettlement when the State expropriates land.

This Decree details and guides the implementation of Clause 3 Article 87, Article 92, Article 94, Article 95, Article 96, Article 98, Article 99, Article 100, Article 102, Article 106, Article 107, Article 108, Article 109, and Article 111 of the Law on Land concerning land compensation and resettlement when the State expropriates land. Specifically includes 03 Chapters:

• Chapter 1: General regulations
• Chapter 2: Detailed regulations on land compensation and resettlement when the State expropriates land
• Chapter 3: Implementation article

Compensation by land with the purpose of use is different from the type of land expropriation or by housing  when the State expropriates land

Article 4 of Decree 88/2024/ND-CP regulates compensation by land with the purpose of use is different from the type of land expropriation or by housing when the State expropriates land. This is a new regulation compared to Decree 47/2014/ND-CP as amended and supplemented by Decree 06/2020/ND-CP. The regulations guide the content specified in Clause 1 Article 96, Clause 1 Article 98, and Clause 1 Article 99 of the Land Law 2024.

According to regulations, land price for calculation of land levies when compensated by land with the different purpose of use depending on each case is determined as follows:

• For types of land expropriation for households, individuals, and persons of Vietnamese descent residing overseas who are using residential land, owning houses associated with land use rights in Vietnam: The land price determined according to the land price list at the time of approving the compensation and resettlement arrangement.
• In case of compensation by leasing out land under the one-off arrangement, the land price for land rent calculation: The specific land price decided by the competent People’s Committee when approving the compensation and resettlement arrangement.
• For the type of land expropriation for economic organizations with expropriated homestead land: The specific land price is decided by the competent People’s Committee when approving the compensation and resettlement arrangement.

The holder of expropriated homestead land is compensated by land with the purpose of the use is different from the type of land expropriation or by housing where there is a difference in the value between the land compensation and support money with the land levy and land rent when allocated land or rent other categories of land or the purchasing houses money shall be handled as follows:

• In case the compensation and support money for land is greater than the land levy or land rent when allocated or leased land for a purpose different from the expropriation land or the purchasing house’s money, the holder of expropriated land shall receive the difference;
• In case the compensation and support money for land is smaller than the land levy or land rent when allocated or leased land for a purpose different from the expropriation land or the purchasing house’s money, the holder of expropriated land must pay the difference.

Compensation for land when real area is different from what is stated in land use right papers

According to Article 6 of Decree 88/2024/ND-CP, households and individuals who are using land when the real area is different from what is stated in the land use right papers upon expropriation specified in Article 137 of the Land Law 2024 shall pay compensation for land as follows:

• If a real area is smaller than the area stated in land use right papers, land compensation shall be made according to the real area following Clause 6 Article 135 of the Land Law 2024.
• In case the difference in land area is the real area bigger than the area stated in land use right papers stipulated in Article 137 of the Land Law 2024, not in dispute with neighboring land users, compensation for land shall be made according to the real area following Clause 6 Article 135 of the Land Law 2024.
• In case the Certificate or documents specified in Article 137 of the Land Law 2024 have an inaccurate location and coordinates, compensation will be considered according to the correct location and coordinates based on actual measurements.

Thus, compared to Article 12 of Decree 47/2014/ND-CP, this new regulation has supplemented the method to determine in case the Certificate or papers specified in Article 137 of the Land Law 2024 if location and coordinates are inaccurate. Accordingly, the consideration of compensation according to the correct location and coordinates when measuring.

At the same time, force majeure events are added. Accordingly, in case the actual measurement has been completed to expropriate land, but then due to natural disasters, landslides or subsidence lead at the time of making the compensation, support, and resettlement arrangement, the area of the measured land is changed, the measured data shall be used to make a compensation, support, and resettlement arrangement.

Compensation for residential land and other categories of land in the same parcel with housing, houses, and construction serving daily life

If Article 6 of Decree 47/2014/ND-CP only stipulates compensation for land when the State expropriates residential land, Section 1 Chapter II of Decree 88/2024/ND-CP specifically stipulates compensation for residential land and other categories of land in the same parcel with housing, houses, and construction serving daily life.

Accordingly, the new Decree determines the following cases:

• Land compensation for households and individuals currently using land with housing, houses, and construction serving daily life, households and individuals currently using residential land in areas with difficult socio-economic conditions or areas with extremely difficult socio-economic conditions before July 1, 2014, without papers on use rights.
• Land compensation for households and individuals using land for housing in violation of the law on land before July 1, 2014
• Land compensation for households and individuals using land allocated ultra vires before the effective date of the Law on Land
• Land compensation when the State expropriates residential land prescribed in Article 98 of the Law on Land.

This new regulation aims to guide the determination of compensation for land when the State expropriates residential land. Especially, cases of land use with violations such as violations of the land law before July 1, 2014, allocated ultra vires,…

Compensation for (non)agricultural land that is not residential land

Section 2, Chapter II of Decree 88/2024/ND-CP stipulates land compensation for households and individuals using land for purposes in the group of agricultural land and non-agricultural land that is not residential land when the State expropriates land.

For the agricultural land

Previously, Decree 47/2014/ND-CP did not specify this content and only specifically stipulated the category of non-agricultural land that is not residential land. According to the new regulations in Article 12 of Decree 88/2024/ND-CP, the compensation for land for households and individuals using the category of land for agricultural land purposes is as follows:

• In case of using land and obtaining no instrument concerning land use right, if eligible for compensation: Receive compensation for the expropriated land area within the limit on agricultural land allocation to individuals specified in Article 176 of the Law on Land.
• In case of using land in violation of the land law before July 1, 2014, if eligible for compensation: Receive compensation for the expropriated land area within the limit on agricultural land allocation to individuals.
• In case of using land allocated ultra vires before July 1, 2014, if eligible for compensation: Receive compensation for the expropriated land area within the limit on agricultural land allocation to individuals.

Note: When compensating for agricultural land used by households and individuals due to land allocation by the State, recognition of land use rights, or transfer of land use rights, the land use term serving as the basis for compensation calculation shall be applied according to the land use term specified at Point a Clause 1 Article 172 of the Law on Land without deducting the specified time previous land use.

For non-agricultural land that is not residential land  

Decree 88/2024/ND-CP has added additional cases of compensation for non-agricultural land, not residential land when the State expropriates land as follows:

• Supplementing the case in which households and individuals using non-agricultural land which is not residential land before July 1, 2014, and in violation of the law on land if they are eligible for compensation: Accordingly, they shall be compensated for land according to the expropriated used area. The type of land for compensation calculation shall be applied as the case of land allocated by the State with the collection of land levy and a stable, long-term land use term.
• Supplementing the case in which households and individuals using non-agricultural land which is not residential land due to ultra vires allocation or using land acquired due to purchase, receipt through liquidation, sale, or distribution of housing and constructions affixed to the land that does not comply with laws before the effective date of the Law on Land. The compensation for land is divided into the following cases:
  • The land had been used stably before October 15, 1993
  • The land had been used stably from October 15, 1993, to the day before July 1, 2014
  • The land has been allocated from July 01, 2014, to the day before the effective date of the Law on Land, the land user obtains document(s) proving the completion of land levy payment.

Compensation for damage to property and remaining investment

In addition to regulations on compensation for làn value in the remaining land when the State expropriates land as Decree 47/2014/ND-CP, as amended and supplemented by Decree 06/2020/ND-CP, Section 3 Chapter II Decree 88/2024/ND-CP also adds the following contents:

• Supplementing compensation for damage to house and construction affixed to land when the State expropriates land at Point b Clause 2 Article 102 of the Land Law 2024
• Supplementing compensation and support due to relocate graves when the State expropriates land;
• Supplementing compensation for the expenses for reformation, repair housing for users of the state-owned houses that are subject to demolition;
• Guiding on compensation and support for damage to land in construction safety corridors, protected areas, and safety belts when constructing works and areas with safety corridors at Article 106 of the Land Law 2024

Support and implement resettlement

For support to stabilize the livelihood and production

• Supplementing the case of support to stabilize the livelihood when the State expropriates land of less than 30% of the agricultural land area currently in use: The province-level People’s Committee shall decide on the level of support, duration of support, and periodic payment of support money to suit each specific case but not exceeding the support level specified in Clause 1, Article 19 of Decree 88/2024/ND-CP.
• Supplementing conditions for support for production and business stability: For households, individuals, economic organizations, and foreign-invested economic organizations to be compensated for land. For households and individuals that are using land due to land allocation, there must be a land use contract.

For implement resettlement

• In case households, individuals, and persons of Vietnamese descent residing overseas are eligible to implement resettlement and have need for self-accommodation, in addition to receiving compensation for land in cash, they are also entitled to receive support money for self-accommodation.
• Supplementing the responsibilities of province-level People’s Committees to support renting houses, allocating residential land, selling housing, and supporting by cash for self-accommodation in case it is within the scope of land expropriation that must be demolished but there is no other place to live in the district-level area where the expropriated land exists.
• Guiding the implementation resettlement in case of implementation of projects for national defense and security, transport, irrigation, technical infrastructure, and social infrastructure that must expropriate residential land in the parcel with housing that the persons whose land has been expropriated want to resettle on the parcel through swapping the location of residential land to the rear in the agricultural land area of the remaining land parcel after expropriation.

Some notes on transitional regulations

Decree 88/2024/ND-CP takes effect from August 1, 2024. However, some transitional regulations should be noted as follows:

• In case the land expropriation decision has been issued according to land laws before the effective date of Decree 88/2024/ND-CP but the approval for compensation, support, and resettlement arrangement has not yet been decided: The compensation, support, and resettlement shall be carried on in accordance with regulations of Decree 88/2024/ND-CP.
• In case the land expropriation decision and the decision to approve the compensation, support, and resettlement arrangement have been issued according to land laws before the effective date of Decree 88/2024/ND-CP but have not been implemented: The approved compensation, support, and resettlement shall be carried on
• In case investment projects whose compensation, support, and resettlement policy frameworks have been approved by the Prime Minister before the effective date of Decree 88/2024/ND-CP but the compensation, support, and resettlement arrangements have not yet been approved by local governments: The policies that are more advantageous to holders of appropriated land according to the compensation, support, and resettlement policy frameworks and regulations of Decree 88/2024/ND-CP shall apply.

Clients who have related questions or need legal support to land compensation and resettlement in Vietnam under Decree 88/2024/ND-CP, please contact Viet An Law Firm for the best support!