Based on Article 96 of the 2024 Land Law, regulations on land compensation when the State recovers agricultural land from households and individuals are as follows:
(1) Households and individuals who are using agricultural land when the State recovers land, if they meet the conditions for compensation specified in Article 95 of the 2024 Land Law, are compensated with agricultural land or in cash or with land with other use purposes than the type of land recovered or with housing.
(2) Households and individuals who are using agricultural land when the State recovers land, the compensation for agricultural land is regulated as follows:
- The compensated agricultural land area includes the area within the limits specified in Article 176 and Article 177 of the 2024 Land Law and the land area inherited;
- For agricultural land areas due to receiving land use rights transfer exceeding the limit before July 1, 2014, compensation and support are carried out according to the Government's regulations.
(3) For agricultural land used before July 1, 2004, where the land user is a household or individual directly engaged in agricultural production but does not meet the conditions to be granted a Certificate of land use rights and ownership of assets attached to land according to the provisions of the 2024 Land Law, compensation shall be carried out in accordance with the Government's regulations.
The 2024 Land Law has removed regulations on land price frames and land will be valued according to market principles. Based on Clause 3, Article 159 of the 2024 Land Law (amended in Decree 151/2025/ND-CP), it is clearly stated: The provincial-level People's Committee shall develop and decide on the first land price list for publication and application from January 1, 2026. Annually, the provincial-level People's Committee is responsible for deciding to adjust, amend, and supplement the land price list for publication and application from January 1 of the following year.
According to point e, clause 1, Article 160 of the 2024 Land Law, compensation money when the State recovers land will be calculated based on the specific land price.
In addition, based on Clause 6, Article 158 of the 2024 Land Law, regulations on Principles, bases, and methods of land valuation are as follows:
Article 158. Principles, bases, and methods of land valuation
6. Cases and conditions for applying the land valuation method are specified as follows:
a) The comparison method is applied to value in cases where there are at least 3 land plots with the same land use purpose, with certain similarities in factors affecting the land price transferred on the market, winning the auction of land use rights where the winning bidder has fulfilled financial obligations according to the winning bidding decision;
b) The income method applied for valuation for cases where the land plot, agricultural land area, non-agricultural land is not residential land but the land plot, land area to be valued does not meet the conditions for applying the comparative method but determines the income and expenses from land use according to the land use purpose to be valued;
c) The surplus method applied for valuation for cases where land plots and land areas for investment projects do not meet the conditions for applying the comparative method, the income method but are estimated to be the total development revenue and total development costs of the project;
d) The method of land price adjustment coefficient is applied to specifically value and calculate compensation money when the State recovers land for cases of recovering many adjacent land plots, with the same land use purpose and land prices have been regulated in the land price list but are not eligible for the comparison method.
In addition, based on Article 30 of Decree 71/2024/ND-CP, the specific land valuation must be implemented according to the provisions of Article 158 of the 2024 Land Law and Articles 4, 5, 6, 7 of Decree 71/2024/ND-CP; the results of summarizing and analyzing information about market land prices; factors affecting land prices.
Thus, there are 4 methods used to value land, calculate land compensation money, and depending on the characteristics and situation of the land area, competent authorities will apply different types of land valuation methods.
Along with that, from January 1, 2026, depending on the area where the market land price will affect the land compensation price, the compensation price may be higher than before except in cases of compensation by leasing land with one-time payment for the entire lease term, the land price calculated for land rent will be the specific land price decided by the competent People's Committee at the time of approval.
