What is the land compensation price framework when the State recovers land?
The land compensation price frame when the State recovers is the basis for determining the compensation level for land users whose land is recovered to serve national defense, security and socio-economic development.
The correct application of the price frame helps ensure the legitimate rights of people, while limiting complaints and land disputes arising during land recovery.
Conditions for compensation when the State recovers land
Land users are compensated when the State recovers land if they meet the conditions according to land law regulations. Accordingly, the land being used must have a Certificate of Land Use Rights (red book, pink book) or be eligible for a Certificate but has not been issued.
In case the land is allocated, leased or allowed to change the purpose of use by the State, there must be a decision from a competent state agency.
In addition, land users who have legal papers on land use rights according to the provisions of land law through various periods, or have received transfers, inherits, gifted legally and have fulfilled financial obligations to the State are also eligible for compensation. Land must be used stably, without disputes, with receipts of tax and land use fees as prescribed.
How to determine the current land compensation price frame
The current land compensation price framework does not apply rigidly according to the land price list but is determined based on specific land prices. Specific land prices are decided by the provincial People's Committee, based on the land price list and the land price adjustment coefficient to ensure closeness to common land prices on the market.
According to new regulations, the land price list is built by the provincial-level People's Committee, submitted to the People's Council of the same level for approval and announced for application from January 1, 2026. Localities will review and adjust the annual land price list to accurately reflect actual land price fluctuations.
Principles of land compensation when the State recovers land
The principle of land compensation when the State recovers is implemented in the order of priority. First of all, the State prioritizes compensation with land with the same purpose of use as the type of land recovered, if the locality still has a suitable land fund.
In case there is no land for compensation, the person whose land is recovered will be compensated in cash. The compensation amount is determined according to the specific land price decided by the Provincial People's Committee at the time of issuing the land recovery decision, ensuring publicity and transparency.
How to calculate land compensation when the State recovers land
Land compensation money when the State recovers is calculated according to the formula: the value of 1m2 of land is equal to the land price in the land price table multiplied by the land price adjustment coefficient (coefficient K). The land price in the land price table is built according to each type of land, location and specific area.
The land price adjustment coefficient is determined by dividing the market land price by the land price in the land price table at the same location and area. The application of the K coefficient helps the compensation level approach the market price, contributing to ensuring the rights of people and creating consensus in the land recovery process.
