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RECEIVING COMPENSATION WHEN THE STATE RECOVERS LAND

My family has a land parcel in Thanh Khe district, Da Nang city. My land parcel is recovered for the implementation of hospital construction project. The area of land recovered by the State is residential land, the origin of the land is transferred with the long-term use and the People’s Committee of Thanh Khe district issued the land use right certificate. I bought this land parcel for my children. We have not built any houses or other assets on this land parcel yet. So I want to ask you how will the state compensate for my family?

THE LEGAL CONSULTING LETTER

First of all, FDVN Law Firm would like to give our formal greeting and grateful thanks to you. For all the things you care about, we would like to state via the following content:

  1. Conditions for receiving compensation:

Your family is using land from being transferred with the long-term and issued the Certificate of land use rights. So, your family meets the conditions for receiving compensation when the State recovers land according to Clause 1 of Article 75 Law on Land 2013, namely:

Article 75. Conditions for receiving compensation when the State recovers land for national defense or security purpose; for socio-economic development in the national or public interest

  1. Households and individuals using land which is not leased land with annual rental payment, having a certificate of land use rights, a certificate of ownership of houses and residential land use rights, or a certificate of land use rights and ownership of houses and other land-attached assets (below referred to as the certificate), or being eligible to be granted a certificate under this Law but not being granted that certificate yet, except the cases prescribed in Clause 2, Article 77 of this Law. Overseas Vietnamese who are eligible to own houses associated with land use rights in Vietnam and are granted a certificate of land use rights and ownership of houses and residential land use rights and other land-attached assets, or being eligible to be granted such certificate under this Law but not being granted that certificate yet.

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  1. Compensation amount:

Compensation upon land recovery by the State is specified clearly at Land on Law 2013, guided specifically at Decree No.47/2014/NĐ-CP dated May 15, 2014 about Regulations on compensation, support, and resettlement upon land expropriation by the State (hereinafter called Decree No. 47/2014/NĐ-CP). Besides, Da Nang People’s Committee promulgated Decision No.38/2017/QĐ-UBND dated November 30, 2017 about Regulations on compensation, support, and resettlement upon land expropriation by the State in Da Nang City. Accordingly:

Case 1: Your family has no other land parcel elsewhere for residence: the compensation in the form of land or resettlement housing shall be made to them.

Case 2: Your family has other land parcel elsewhere for residence: the compensation in the form of money shall be made to them. In case localities that have land fund, compensation in the form of land shall be considered.

Compensation in the form of money is based on land price for compensation calculation of recovered land levies that is decided by Da Nang People’s Committee at the time of expropriation. Da Nang Division of Natural Resources and Environment shall preside over and collaborate with relevant agencies, organizations, submit Da Nang People’s Committee for decision coefficient of land price adjustment for define specific land price. (Pursuant to Article 4 Decision No. 38/2017/QĐ-UBND).

Quoting the relevant laws as follows:

Clause 1 of Article 79 Law on Land 2014

“Article 79. Compensation for land when the State recovers residential land

  1. Households and individuals using residential land and overseas Vietnam owning houses associated with land use rights in Vietnam, who are eligible for compensation as prescribed in Article 75 of the Law upon land recovery by the State, shall be compensated as follows:

a/ If they have no other residential land or houses in the communes, wards or townships in which the recovered land is located, they shall be compensated with residential land or house. If they have no need for compensation with residential land or house, the State shall compensate them in money;

b/ If they have other residential land or houses in the communes, wards or townships in which the recovered land is located, they shall be compensated in money. For localities with available land fund, the compensation in the form of land may be considered.

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Clause 1 of Article 6 Decree No. 47/2014/NĐ-CP

“Article 6. Compensation for land upon expropriation of inhabited land by the State

Compensation for land upon expropriation as defined in Article 79 of the Law on Land shall be done as follows:

  1. Households and individuals, overseas Vietnamese who are owning inhabited land, land – linked houses in Vietnam, have Certificate of land use right or are eligible for issuance of Certificates of land use right, ownership of land-linked houses and properties according to the Law on Land, the compensation for land shall be done as follows:
  2. a) In case all of inhabited land is expropriated or the remaining area of inhabited land after expropriation is ineligible for residence according to the regulations prescribed by the province-level People’s committee and such owners have no other land or houses elsewhere for residence, the compensation in the form of land or resettlement housing shall be made to them.
  3. b) In case all of inhabited land is expropriated or the remaining area of inhabited land after expropriation is ineligible for residence according to the regulations prescribed by the province-level People’s committee and such owners have no other land or houses elsewhere for residence, the compensation in money shall be made to them. For localities that have land fund, compensation in the form of land shall be considered.

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Article 4 and Article 5 Decision No. 38/2017/QĐ-UBND

“Article 4. Determining specific land price to serve as a basis for compensation calculation

  1. Land price used for compensation calculation according to specific land price of recovered land levies that is decided by City People’s Committee at the time of expropriation
  2. The Division of Natural Resources and Environment shall preside over and collaborate with relevant agencies, organizations, submit City People’s Committee for decision coefficient of land price adjustment for define specific land price according to Clause 1 of this Article.”

“Article 5. Compensation when the State recovers land (Perform according to Article 70 Law on Land; Article 6 Decree No. 47/2014/NĐ-CP dated May 15, 2014 of Government (hereinafter called Decree No. 47/2014/NĐ-CP) and Article 4 Circular 37/2014/TT-BTNMT dated June 30, 2014 of the Ministry of Natural Resources and Environment (hereinafter called Circular No. 37/2014/TT-BTNMT)

We ensure to provide you with accurate and explicit consultancy. Please feel free to contact us if you have any questions.Best Regards,

Traslation into English: Legal Officer Bui Anh Vinh (Mr)

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