What is encroachment and occupation of land?
Pursuant to Clauses 9 and 31, Article 3 of the 2024 Land Law, the concept of land encroachment and land occupation is stipulated as follows:
- Land occupation is the use of land managed by the State without permission from a competent state agency or the use of land by another legal land user without permission from that person.
- Land encroachment is the act of a land user moving the boundary markers or boundaries of a land plot to expand the land use area without permission from a competent state agency or without permission from the legal user of the encroached land area.
Can neighbors who encroach on land and build a house get their own land?
Pursuant to Point d, Clause 1, Article 118 of the 2014 Construction Law, amended by Clause 44, Article 1 of the 2020 amended Construction Law, as follows:
The demolition of construction works is carried out in cases where construction works encroach on public land, land under the legal use rights of organizations and individuals; construction works that are not in accordance with approved construction designs in cases of exemption from construction permits
Thus, in case the neighbor encroaches on the land and builds a house, the construction built in the encroached area can still be demolished and returned to the legal land user.
How to calculate the latest illegal profits for land encroachment?
Pursuant to Point b, Clause 2, Article 6 of Decree 123/2024/ND-CP, the method of calculating illegal profits for land encroachment will be as follows:
The act of encroaching or occupying land as prescribed in Article 13 of Decree 123/2024/ND-CP, including the act of illegally encroaching on land by neighbor, the illegal profit is determined by the value of the land use right of the encroached or occupied land area, calculated according to the following formula:

In which:
- The land area and land price are determined at the time of making the administrative violation record.
- The type of land in violation is the type of land after encroachment or occupation determined according to the current status of the type of land in use at the time of making the administrative violation record.
- The number of years of violation is determined from the time of land encroachment or occupation to the time of making a record of administrative violation.
- In case the land area is violated after encroaching or occupying without land prices in the land price list, taking the land price at the land parcel of the same type of land after encroaching or occupying the closest position with the violating land area to determine the illegal benefits.
- In case of encroachment or occupation of unused land but not used for purposes in the Land Price List, the competent authority or person shall determine the illegal profits based on the actual incident, evidence, documents, and papers (if any).