Compensation principle close to market price
The 2024 Land Law applies the principle of compensation based on the actual value of agricultural land at the time of recovery. This means that previous compensation rates, which were often lower than market prices, will be adjusted to reflect actual value. For example, a plot of agricultural land in the suburbs of Hanoi, which was previously compensated at VND2 million/m2, can now be increased to VND4 million/m2 depending on the land price list and other adjustment factors.
The land price framework will be issued by the provincial People's Committee or equivalent, usually applied in a 5-year cycle. After each cycle, this price list can be updated to suit the actual situation, ensuring the rights of the people as well as creating favorable conditions for socio-economic development.
How to calculate compensation price for agricultural land
Compensation price for agricultural land is determined according to the following formula:
Compensation price for agricultural land = Area of recovered land (m2) x Compensation price (VND/m2).
In there:
Compensation price is calculated by: Land price specified in the land price list x Agricultural land increase/decrease coefficient each year x Other adjustment coefficients (if any).
Land price list is the main basis for determining compensation level, built on market value in the area.
Speaking to Lao Dong reporter, lawyer Truong Anh Tu - Chairman of TAT Law Firm (Hanoi Bar Association) - recommended that people should carefully check the land price list issued locally. If there are any questions about the compensation level, people should consult experts or lawyers to protect their legal rights.
Agricultural land compensation price list 2024
The compensation land price list is built based on the economic, social and geographical characteristics of each area. Each locality will have different prices, suitable for the actual value of the land. People can get this price list at the local land office to know the compensation level.
In addition, some factors such as land location (near residential areas or in remote areas), development potential, and land use purpose after recovery will also be considered when calculating compensation levels. Areas with development potential or near the center often have higher adjustment coefficients, leading to better compensation levels for people.
Applying a land price list close to market price not only ensures people's rights but also helps reduce complaints and disputes related to land. People need to clearly understand their rights and coordinate with authorities so that the compensation process goes smoothly.
The 2024 Land Law is an important step forward in adjusting and perfecting land policies in Vietnam. Positive changes in the way agricultural land compensation is calculated not only help people feel secure but also create motivation to promote sustainable infrastructure and economic development projects.
