A case reflecting problems related to compensation for construction works when the State recovers land. According to the reflection, the enterprise leased land from the State in the form of annual payment, for a term of 50 years, but has now been recovered when the remaining lease term is 33 years.
On the land, there are many legal construction works such as 5-story houses for restaurant business, warehouses for producing confectionery, pharmaceuticals and all have construction permits. Because it is located within the project boundary, all assets on the land must be relocated.
From this reality, land users wonder whether the recovered works will be compensated according to the new construction value equivalent or only compensated according to the actual value.
Regarding this content, the Department of Land Administration, Ministry of Agriculture and Environment said that, based on Clause 2, Article 102 of the 2024 Land Law, houses and construction works that are not houses or works serving life but are demolished or partially demolished, the property owner is entitled to compensation for damages according to each specific case.
Accordingly, if houses and works are demolished or completely demolished, or partially demolished but the remaining part does not meet technical standards, they will be compensated with the new construction value of works with equivalent technical standards according to point a, clause 2, Article 102 of the Land Law.
For construction works that are dismantled or demolished but are not in the above-mentioned cases, the compensation level will be determined according to actual damage according to Clause 1, Article 14 of Decree 88/2024/ND-CP.
Thus, the compensation for works when land is recovered does not apply a common calculation method for all cases, but must be based on the current status of works after being dismantled and demolished and the ability to ensure technical standards of the remaining part. The Department of Land Administration requests people to contact local land management agencies for consideration and specific guidance.
