Developer Advances Funds for Compensation, Support, and Resettlement

The newly adopted resolution outlines key mechanisms and policies to address challenges in the implementation of the Land Law. It stipulates that developers must advance funds to cover compensation, support, and resettlement costs, as well as any discrepancies between the agreed land prices and the average market rates.

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On the morning of December 11th, during the final working day, the National Assembly adopted a resolution outlining mechanisms and policies to address challenges in the implementation of the Land Law, with a majority of delegates in favor.

A notable highlight of the resolution is the addition of a provision allowing the state to reclaim land for socio-economic development in the national and public interest. Specifically, if agreements are reached on over 75% of the land area and with more than 75% of land users, the Provincial People’s Council may consider and approve the reclamation of the remaining land area for allocation or lease to investors.

Delegates at the session on the morning of December 11th. Photo: Như Ý

Earlier, in a report on finalizing the draft resolution, Minister of Agriculture and Environment Trần Đức Thắng stated that investors will advance funds to pay compensation, support, and resettlement allowances, as well as the difference between the agreed land price and the average market rate.

Provincial People’s Committees will regulate temporary housing arrangements, duration, and funding for those affected by land reclamation decisions prior to the completion of resettlement plans.

Additionally, provincial authorities must establish measures and support levels to ensure housing and livelihood stability for individuals whose land is reclaimed, as well as property owners, in line with local conditions. Based on these regulations, communal People’s Committees will determine specific support measures for individual projects.

Land compensation rates are calculated as per Article 91, Clause 2, of the Land Law, while land use fees at resettlement sites are based on land price tables and adjustment coefficients outlined in this resolution.

In cases where in-place residential land compensation is provided but the land price at the compensation location is not listed in the price table, authorities will reference prices from similar locations to make decisions.

In such instances, communal People’s Committees are responsible for reporting to provincial authorities for inclusion in the land price table during the nearest council session.

The resolution will take effect from January 1, 2026; however, certain provisions, such as five-year land use planning for cities and communal land use planning, will be effective from December 11, 2025.

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