Principles of compensation 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 prices, which are often lower than market prices, will be adjusted to reflect real value.
For example, an agricultural land plot in the suburbs of Hanoi was previously compensated only VND2 million/m2, now it can increase 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 agricultural land compensation prices
The 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 ( equal to/m2).
In which:
+ Compensation price is calculated by: Land price specified in the land price list x Coefficient of increase/decrease of agricultural land for each year x Other adjustment coefficient (if any).
+ The land price list is the main basis for determining the compensation level, built on market value in the area.
People need to 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
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 the compensation level. Areas with development potential or near the center often have higher adjustment coefficients, leading to better compensation for people.
Applying a land price list close to market price not only ensures the rights of the people but also contributes to reducing complaints and disputes related to land. People need to clearly understand their rights and coordinate with authorities to make the compensation process go smoothly.
