Conditions for land compensation when the State acquires land
Clause 2, Article 95 of the 2024 Land Law stipulates the conditions for land compensation when the State recovers land for national defense and security purposes; socio-economic development for national and public interests for individuals and households as follows:
"2. The cases specified in Clause 1 of this Article shall be compensated for land when one of the following conditions is met:
a) Have a Certificate of land use rights or a Certificate of house ownership and land use rights or a Certificate of land use rights, house ownership and other assets attached to land or a Certificate of land use rights, ownership of assets attached to land.
b) There is a decision on land allocation or land lease or decision on permission to change land use purpose from a competent state agency.
c) Have one of the documents on land use rights as a basis for granting a Certificate of land use rights and ownership of assets attached to land according to the provisions of Article 137 of the 2024 Land Law.
d) Receive transfer of land use rights in accordance with the provisions of law from a person with legal land use rights but has not completed land registration procedures.
d) Land use as agreed in the mortgage contract to settle debt; document recognizing the results of the land use rights auction in which the auction winner has fulfilled financial obligations as prescribed by law".
Thus, to receive land compensation, individuals and households must meet one of the following conditions:
(1) Have Certificate (red book, pink book).
(2) There is a decision on land allocation or land lease or decision allowing change of land use purpose.
(3) Have one of the documents on land use rights as the basis for granting the Certificate.
(4) Receiving land use rights transfer from a person with legal land use rights but has not completed land registration procedures.
(5) Land use as agreed in the mortgage contract to settle debt; document recognizing the results of the land use rights auction in which the auction winner has fulfilled financial obligations.
How to calculate compensation when land is acquired
According to Clause 6, Article 158 of the 2024 Land Law, the land price adjustment coefficient method is used to specifically determine compensation when the State recovers land in cases of recovering many adjacent land plots with the same purpose of use and whose land prices have been specified in the land price list but do not meet the conditions for applying the comparison method.
Pursuant to Point e, Clause 1, Article 160 of the 2024 Land Law, Clause 5, Article 7 of Decree 71/2024/ND-CP, the specific land price is determined by the land price adjustment coefficient method applied to the case of calculating land compensation when the State recovers land, calculated as follows:
Value of land plot to be appraised (1m2) = Land price in land price list x Land price adjustment coefficient (coefficient K)
In there:
- Land prices in the land price list are developed by the provincial People's Committee and submitted to the People's Council of the same level for decision on the first land price list to be announced and applied from January 1, 2026. Accordingly, each locality will decide on the land price list and adjust the price list once a year to match the market land price (instead of once every 5 years and based on the minimum and maximum land prices issued by the Government as at present).
- Land price adjustment coefficient is determined according to each land type, land location, and area by dividing the market land price by the land price in the land price list at that land location and area.
