Four Scenarios Where Compensation is Not Granted When the State Reclaims Land from 2026

Specifically, according to Clause 10, Article 3 of Resolution 254, the National Assembly outlines four scenarios where no land compensation is granted when the State reclaims land.

The case outlined in Clause 1, Article 107 of the Land Law addresses compensation for residual investment costs in land when the State reclaims land for national defense, security, or socio-economic development for the public good. The following situations are not eligible for land compensation but may receive compensation for residual investment costs:

Land allocated by the State without land use fees, except for agricultural land of households or individuals eligible for compensation as per Article 96 of the Land Law;

Land allocated to organizations with land use fees but exempt from payment;

Land leased with annual land rent payments or a one-time payment for the entire lease period but exempt from rent, except as specified in Clause 2, Article 99 of the Land Law;

Agricultural land within the public utility fund leased by the People’s Committee of the commune; Land contracted for agricultural, forestry, aquaculture, or salt production; Agricultural land allocated beyond the limits defined in Article 176 of the Land Law.

The case of land managed by State agencies or organizations as per Article 217 of the Land Law includes:

Land for public purposes; Rivers, streams, canals, creeks, ponds, lakes, lagoons, and cemeteries; Land for funeral homes, crematoria, and ash storage facilities; Specialized water surface land; Special-use forests, protected forests, and production forests; Land reclaimed by the State and managed by land development funds; Land reclaimed by the State and managed by the People’s Committee of the commune in cases specified in Clause 1(d), Clause 3, Article 82; Clause 2, Article 82 in rural areas; Clause 5, Article 86; and Clause 2(e), Article 181 of this Law.

Land returned or transferred by foreign diplomatic organizations no longer needing it, based on international treaties, agreements, and relevant laws; Agricultural land used for public utility by communes, wards, or towns; Unused land.

The case of land reclamation as per Article 81 of the Land Law involves violations of land laws, including:

Using land for purposes other than those allocated, leased, or recognized by the State, after being administratively penalized and continuing to violate;

Destroying land after being administratively penalized and continuing to violate; Land allocated or leased to ineligible recipients or without proper authority.

Land transferred or gifted from individuals or entities not permitted to do so under this Law; Land managed by the State but encroached upon or occupied; Failure to fulfill financial obligations to the State.

Agricultural land left unused for 12 consecutive months, perennial crops for 18 months, or forest land for 24 months, after being administratively penalized and failing to use the land within the specified period;

Land allocated, leased, or permitted for purpose conversion, recognized, or transferred for investment projects but left unused for 12 consecutive months or delayed by 24 months compared to the project timeline.

In cases of non-use or delay, investors may request a 24-month extension and pay additional fees equivalent to the land use or rent for the extended period.

If the land remains unused after the extension, the State will reclaim it without compensating for the land, attached assets, or residual investment costs.

The final case, as per Clauses 1 and 2, Article 82 of the Land Law, covers land reclamation due to legal termination of use, voluntary return, threats to human life, or inability to continue use.