The Underperforming Land Development Project: Inefficiency Leads to Consequences

Land Recovery Process for Violations

Decree 102 outlines the land recovery process for users who fail to fulfill their financial obligations to the state. When individuals or entities do not meet their land-related financial duties, such as paying land use fees or rent, and have been subject to coercive measures by competent tax authorities, the land may be reclaimed.

In such cases, the tax authority is responsible for notifying the land management agency and providing relevant documents to initiate the land recovery process. The following section outlines the steps and procedures involved in this process.

According to the decree, if the violation warrants administrative sanctions, the land management agency has 30 days from receiving the notification to propose land recovery to the competent state agency as outlined in Article 83 of the Land Law.

For violations that do not require administrative penalties, land recovery can proceed after receiving conclusions from authorized inspection or audit agencies regarding the necessity of land recovery.

Upon receiving the relevant documents, the land management agency has 30 days to prepare and submit a land recovery proposal to the People’s Committee with the appropriate level of authority.

Within 10 days of receiving the proposal, the People’s Committee must notify the land owner, owners of assets attached to the land, and any other relevant parties about the land recovery.

The land owner and affected parties have a specified period, as stated in the notification, to settle any assets on the land. This period cannot exceed 45 days, unless the investor purchases the assets attached to the land, in which case the state will lease or allocate the land according to legal regulations.

Within 15 days of the conclusion of the notification period, the People’s Committee is responsible for issuing a land recovery decision and organizing its implementation. If the land user does not comply, coercive measures may be employed to enforce the decision.

The land owner is obligated to comply with the land recovery decision, surrendering the land and relevant land-use rights documents to the authorized entity or individual as specified in the decision.

Projects Hoarding Land Will Face Land Recovery

In addition to non-compliance with financial obligations, Article 81 of the 2024 Land Law also outlines other circumstances that can lead to land recovery due to violations of land laws.

Specifically, land may be reclaimed in cases where it has been allocated or leased to the wrong entity or without proper authority. This also applies to land acquired through transfer or donation from individuals or entities who were not authorized to make such transactions under the Land Law.

Land recovery is also applicable when state-managed land is encroached upon or occupied without authorization. If land is used for purposes other than those specified by the state and the user has been administratively sanctioned for this violation but continues to disregard the regulations, the land may be recovered.

Furthermore, land allocated for annual crops, aquaculture, or tree plantations that remains unused for 12, 18, or 24 consecutive months, respectively, and has incurred administrative penalties without subsequent utilization, will be subject to recovery.

The Land Law also addresses land allocated, leased, or converted for investment projects. If this land remains unused for 12 consecutive months after onsite handover or if the project falls 24 months behind schedule, the investor may be granted an extension of up to 24 months, provided they pay additional land use fees or rent for the extended period.

If the investor fails to utilize the land within the extended period, the state will recover the land without providing compensation for the land itself, any remaining assets attached to the land, or the investment costs incurred.