1. Principles of compensation when the State reclaims land for road construction
According to Clause 1, Article 79 of the 2024 Land Law, land recovery for road construction is a case of land recovery for socio-economic development for national and public interests. Therefore, those who have their land recovered to build a road will be compensated according to the following methods: Land compensation or money compensation.
In order to be compensated for land, individuals using land must meet one of the following conditions:
- Land other than leased land with annual land rent payment.
- Have a Certificate.
- Having a land allocation decision or land lease decision or decision allowing change of land use purpose from a competent state agency.
- Having 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 to households, individuals and communities using land as prescribed in Article 137 of this Law.
- Receive the transfer of land use rights according to the provisions of law from a person with legal land use rights but has not completed the land registration procedures.
- To use land according to the agreement in the mortgage contract to settle debts; documents recognizing the results of the auction of land use rights for which the auction winner has fulfilled financial obligations according to the provisions of law.
Thus, compensation when the State reclaims land for construction is implemented according to the above principle.
2. How is the compensation price for land for road construction calculated?
According to Clause 1, Article 160 of the 2024 Land Law, specific land prices are applied to calculate compensation prices when the State reclaims land, and are stipulated 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.
