As of July 1, 2014, people whose land is recovered by a competent state agency will be given compensation for it within 30 days from the date of recovery, along with various support, under the 2013 Land Law that will take effect the same day.

>> Minister highlights major contents of amended Land Law In order to protect the legitimate rights and interest of citizens, the Law stipulates that the compensation upon land recovery by the state must be made in a democratic, impartial, equal, public, timely, and lawful manner. The compensation must be made in the form of allocating new land with the same land use purpose as the recovered land.

If there is no land available for compensation, the land users shall receive compensation in money calculated according to the specific land price of the type of recovered land, as decided by the provincial-level People’s Committee at the time of the recovery decision. Under Article 93 of the Land Law, within 30 days after the decision of land recovery by a competent state agency takes effect, agencies and organizations in charge of compensation shall pay compensation and support to people whose land is recovered. If agencies and organizations in charge of compensation delay the payment, in addition to the compensation and support prescribed in approved plans for compensation, support and resettlement, people whose land is recovered are entitled to an amount equivalent to the late- payment interest in accordance with the Law on Tax Administration calculated based on the unpaid amount and the delayed period. In case people whose land is recovered do not receive the compensation and support prescribed in approved plans for compensation, support and resettlement, this compensation and support must be deposited in the temporary custody account of the State Treasury. For land users who are entitled to compensation upon land recovery by the state but have not fulfilled land-related financial obligations as prescribed by law, the amount of these financial obligations must be deducted from the compensation amount and paid back to the state budget.Land recovery Regarding land recovery, before issuing a decision on land recovery, at least 90 days prior to the recovery of agricultural land or 180 days prior to the recovery of non-agricultural land, competent state agencies shall notify the land users of the land withdrawal.

The contents to be notified include land recovery, investigation, survey, measurement, and inventory plans. Land users whose land is recovered shall coordinate with agencies and organizations performing compensation and ground clearance in the process of investigation, survey, measurement, inventory, and making of plans for compensation, support and resettlement. After the land recovery decisions take effect and plans for compensation, support and resettlement approved by competent state agencies are publicized, land users whose land is recovered shall comply with the land recovery decisions.Support to people whose land is recovered For households and individuals directly engaged in agricultural production, when the state recovers agricultural land and there is no agricultural land available for compensation, in addition to receiving monetary compensation, they are entitled to support for vocational training, occupation change and job seeking. In case the people who are entitled to support for vocational training, occupation change or job seeking are of working age and have a need for vocational training, they may be admitted to vocational training centers and receive counseling on job seeking and preferential loans to develop production and business. Households and individuals using residential land in combination with trading and services in which the main source of income derives from trading and services, and needing to be relocated when the state recovers land, are entitled to preferential loans to develop production and business. Under the new law, plans for vocational training, occupation change and job seeking shall be developed and approved concurrently with plans for compensation, support and resettlement. In addition, before making land recovery, all projects must prepare a plan of resettlement for those who are subject to relocation, said Bui Ngoc Tuan, head of the Department for Economic and Land Fund Development. This new regulation is aimed at helping those who are relocated find a new residence soon to stabilize their lives, Tuan said.Land prices

Under the Law, the government shall promulgate land price frames once every five years for each type of land and for each region. During the implementation of land price frames, if the popular price in the market increases by 20 percent or more over the maximum price or shrinks by 20 percent or more below the minimum price prescribed in land price frames, the government shall adjust land price frames accordingly. Competent state agencies will decide the specific land prices to be applied for compensation in case of land recovery.

These prices will be based on calculations of a price verification unit and must be in accordance with market prices.     

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