Under the new Land Law, which takes effect from January 1, 2025, there will be four forms of compensation when the state acquires land:
- Providing land with the same purpose as the land acquired. In case there is no land to compensate, compensation shall be made in the form of money according to the specific land price decided by the competent People’s Committee at the time of approving the plan of compensation, support, and resettlement.
- The person whose land is acquired shall be compensated with land or housing, and in case the person requests compensation in the form of money, the state shall satisfy such request.
- The person whose land is acquired, who has a demand and whose locality has the condition in terms of the land fund, shall be considered for compensation in the form of land with a different purpose.
- The person whose land is acquired, who has a demand and whose locality has the condition in terms of the housing fund, shall be considered for compensation in the form of housing.
When the state acquires land, if the remaining area of the land plot is smaller than the minimum area prescribed by the provincial People’s Committee, and if the land user agrees to the acquisition, the land shall be acquired and compensation and support shall be provided.
Compared with the 2013 Land Law, the new law expands by two more forms of compensation, namely compensation in the form of land with a different purpose from the acquired land or in the form of housing. The old law prescribed that compensation in the form of housing shall only be applied when the people have no other residential land or house in the same commune, ward, or town.
Regarding compensation for land when the state acquires agricultural land, households and individuals whose agricultural land is acquired shall be compensated with agricultural land, money, land with a different purpose, or housing.
The area of agricultural land compensated shall be calculated within the limit prescribed by the regulations and the area of the land received by inheritance.
Economic organizations currently using agricultural land that was allocated by the state with payment, leased by the state, or received by land transfer shall be compensated for that land if it is acquired.
Communities and religious organizations currently using agricultural land that is acquired shall be compensated for that land.
Regarding the limit of compensation for agricultural land under the 2024 Land Law: When the state acquires agricultural land currently used by households and individuals, the limit of compensation for agricultural land shall be prescribed as follows:
Firstly, the area of agricultural land compensated shall include the area within the limit prescribed in Article 176 and Article 177 of this Law and the area of land received by inheritance.
Secondly, in the case of the area of agricultural land received by land use right transfer in excess of the limit prior to July 1, 2014, compensation and support shall be provided in accordance with the regulations of the Government.
Thirdly, in the case of agricultural land used prior to July 1, 2004 in which the land user is a household or individual directly engaged in agricultural production but does not meet the conditions to be granted a Certificate of Land Use Right and Ownership of Assets Attached to the Land in accordance with the regulations of this Law, compensation shall be provided in accordance with the regulations of the Government.
Thus, according to the provisions of the amended Land Law in 2024, compensation for land when the state acquires agricultural land of households and individuals shall be implemented as aforementioned.
