Compensation for property damage, investment costs in land according to the 2024 Land Law

In Sections 102 to 107, Subsection 3, Chapter VII of Land Law No. 31/2024/QH15, there are regulations regarding compensation for property damage and investment costs in land, as follows:

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The 2024 Land Law specifically regulates cases of compensation for property damage, investment costs in land.

Article 102. Compensation for damage to houses, residential houses, structures attached to land when the State recovers land

1. Regarding houses, residential buildings attached to the land of households, individuals, Vietnamese nationals settling abroad that need to be dismantled or demolished when the State recovers land, the owner of those houses, structures shall be compensated by the value of new construction of houses, structures, which meet technical standards according to the relevant laws and regulations.

The owner of houses, structures is allowed to use the remaining materials of the houses, structures.

2. Regarding buildings, structures attached to the land that do not fall under the cases specified in paragraph 1 of this Article, when the State recovers land and the buildings, structures are completely or partially dismantled or demolished, they shall be compensated for the damage as follows:

a) Regarding buildings, structures that are completely or partially dismantled or demolished, if the remaining part does not meet the technical standards as prescribed by the construction laws and regulations, they shall be compensated by the value of new construction of buildings, structures that meet technical standards according to the construction laws and regulations;

b) Regarding other buildings, structures that are dismantled or demolished and do not fall under the cases specified in point a of this paragraph, they shall be compensated for the actual damage.

3. Regarding technical infrastructure works, social infrastructure works attached to the land that are not subject to the cases specified in paragraphs 1 and 2 of this Article, the compensation level shall be calculated based on the value of new construction of works that meet the technical standards according to the specialized legal regulations.

4. The provincial people’s committee shall issue the actual compensation unit price for houses, residential buildings, construction works specified in this Article to serve as a basis for compensation calculation when land is recovered; the compensation unit price specified in this Article must be appropriate to the market price and reviewed for adjustment in case of fluctuations to serve as a basis for compensation calculation when land is recovered.

5. The Government shall provide detailed regulations on this Article.

Article 103. Compensation for crops, livestock

When the State recovers land and causes damage to crops, livestock, compensation shall be made as follows:

1. For annual crops, the compensation level shall be calculated based on the value of the crop harvested. The value of the crop harvested shall be calculated based on the highest productivity of the crop in the previous 03 consecutive years at the local area and the compensation unit price;

2. For perennial crops, the compensation level shall be calculated based on the actual damage value of the orchard.

For perennial crops that have multiple harvests but are in the harvest period, the compensation level shall be calculated based on the unharvested yield of the orchard corresponding to the remaining years in the harvest cycle and the compensation unit price;

3. For unharvested crops that can be moved to another location, compensation shall be made for the relocation costs and the actual damage caused by the relocation and replanting.

For forest planted with state budget capital, natural forests assigned to organizations, households, individuals for planting, managing, caring, and protecting, compensation shall be made based on the actual damage value of the orchard; the compensation money shall be divided among the managers, caregivers, and protectors according to the provisions of forestry laws;

4. When the State recovers land and causes damage to livestock such as aquatic products or non-movable livestock, compensation shall be made according to specific compensation levels determined by the provincial people’s committee;

5. The owners of crops, livestock specified in paragraphs 1, 2, 3, and 4 of this Article shall be entitled to self-recover crops, livestock before returning the land to the State;

6. The provincial people’s committee shall issue the compensation unit price for crops, livestock according to the production process specified by the Ministry of Agriculture and Rural Development or issued by the locality according to legal regulations; the compensation unit price specified in this Article must be appropriate to the market price and reviewed for adjustment in case of fluctuations to serve as a basis for compensation calculation when land is recovered.

Article 104. Compensation for asset relocation costs when the State recovers land

1. When the State recovers land and assets need to be relocated, the State shall compensate for the costs of dismantling, moving, and installing; in case of relocation of machinery systems, production lines, they shall also be compensated for the damage caused by dismantlement, transportation, and installation.

2. The provincial people’s committee shall determine the compensation level specified in paragraph 1 of this Article.

Article 105. Cases not eligible for compensation for assets attached to land when the State recovers land

1. Assets attached to land fall under one of the cases specified in paragraphs 1, 2, 4, 5, and 8 of Article 81, points b and c of paragraph 1 of Article 82 of this Law.

2. Assets attached to land that are not established according to legal regulations or established within the effective period of land recovery notice issued by the competent authority according to the provisions of this Law.

3. Assets attached to land are construction works according to the construction permit with a time limit according to construction laws that have expired at the time of land recovery.

The owners of assets specified in this paragraph shall be supported for dismantling, demolition, and relocation.

4. Technical infrastructure works, social infrastructure works, and other construction works whose owners determine are no longer needed before the competent authority issues the land recovery decision.

Article 106. Compensation for damage to land within the safety protection corridor of works, protected areas, safety belts when constructing works, areas with safety protection corridor

When constructing works, areas with safety protection corridor in which land is not recovered located within the safety protection corridor of works, protected areas, safety belts, the land user shall be compensated for the damage due to the restriction of land use capability, damage to assets attached to the land according to the provisions of the Government.

Article 107. Compensation for investment costs in the remaining land when the State recovers land for national defense, security purposes; socio-economic development for national and public interests

1. Cases where land is not compensated but being compensated for investment costs in the remaining land when the State recovers land include:

a) Land is granted by the State without land use fees, except for agricultural land of households, individuals compensated for the land specified in Article 96 of this Law;

b) Land is granted to organizations falling under cases subject to land use fees but exempt from land use fees;

c) Land is leased by the State for annual land rent payment; land is leased for one-off land rent for the entire lease period but exempt from land rent payment, except for cases specified in paragraph 2 of Article 99 of this Law;

d) Land belongs to agricultural land fund used for public purposes by the commune people’s committee for lease;

e) Land allocated for agricultural production, forestry, aquaculture, salt-making;

f) Agricultural land allocated exceeding the prescribed limit according to Article 176 of this Law.

2. Investment costs in the remaining land include the entire or partial costs of the following:

a) Ground leveling costs;

b) Costs of improving fertility, desalination, erosion prevention, encroachment prevention for land used for agricultural production;

c) Costs of enhancing load-bearing capacity, vibration resistance, land subsidence resistance for land used for production, business purposes;

d) Compensation, support, resettlement costs advanced according to the compensation, support, resettlement plan approved by the competent authority that have not deducted from land use fees, land rent to be paid;

e) Other related costs invested in land appropriate to the land use purposes.

3. The Government shall provide detailed regulations on this Article.