Article 91 of the 2024 Land Law stipulates the principle of compensation and site clearance, which states 4 forms of compensation when the state reclaims as follows:
- Land allocation with the same purpose of use as the type of recovered land, in case there is no land for compensation, compensation will be made in cash according to the specific land price of the recovered land type, decided by the People's Committee at the competent level at the time of approving the compensation, support and resettlement plan
- In case the person whose land is recovered needs compensation in cash, he/she will be compensated in cash according to his/her wishes.
- People whose land is recovered and need compensation in other land than the land for use and the locality has a land fund shall be considered for compensation in other land for use
- People whose land is recovered and need compensation in housing, if the locality has a housing fund, will be considered for compensation in housing.
Regarding the method of calculating compensation for site clearance, according to the 2024 Land Law, specific land prices are used as a basis for calculating compensation when the State reclaims land.
At the same time, according to Clause 1, Article 160 of the 2024 Land Law, specific land prices are regulated as follows:
a) Calculating land use fees for organizations when the State allocates land with land use fees, does not auction land use rights, does not bid to select investors to implement projects using land, allocates land with land use fees to winning investors or economic organizations that are awarded by the investor to establish projects using land, recognize land use rights, permit change of land use purpose but must pay land use fees.
b) Calculating land rent when the State leases land and collects land rent once for the entire lease term, except in cases where it is through auction of land use rights.
c) Calculating the value of land use rights when equitizing state-owned enterprises according to the provisions of law on equitization.
d) Determine the starting price for auctioning land use rights when the State allocates or leases land, except for the case specified in Point i, Clause 1, Article 159 of this Law.
d) Calculating land use fees and land rents when extending land use, adjusting land use term, adjusting detailed construction planning; allowing change of land use form.
e) Calculating compensation when the State reclaims land.
Thus, it can be seen that specific land prices are the basis for compensation for site clearance, people can hardly calculate exactly how much compensation their land plot will receive when it is recovered but only have the compensation price notified.
Specific land prices are determined by the land price adjustment coefficient method applicable to the case of calculating land compensation when the State reclaims it, which is calculated as follows:
Value of land plot to be valued (1m2) = Land price in land price list x Land price adjustment coefficient
In which:
- Land prices in the land price list issued by the People's Committees of provinces and cities are applied in stages of 5 years. To know exactly, people must see the correct address, location of the land plot (location 1, location 2, location 3, location 4),...
- The coefficient of land price adjustment when calculating compensation is decided by the Provincial People's Committee. However, the Provincial People's Committee will decide on the land price adjustment coefficient for each project at the time the State decides to reclaim the land. In other words, the land price adjustment coefficient will not be announced in advance and applied annually as in the case of calculating land use fees when issuing red books and pink books for areas exceeding the limit.
