According to Lawyer Tran Tuan Anh - Director of Bright Legal Law Firm, agricultural land compensation may increase sharply in the near future compared to the present.
Explaining the reason, Lawyer Tran Tuan Anh said that according to the provisions of the 2024 Land Law, the regulation on land price framework and land will be priced according to market principles has been removed. Each locality will decide on the land price list and adjust the price once a year to match the market land price (instead of every 5 years and based on the minimum - maximum land price issued by the Government as at present).
According to Lawyer Tran Tuan Anh, in Clause 5, Article 7 of Decree 71/2024/ND-CP, specific land prices are determined by the method of land price adjustment coefficient calculated as follows:
Land price of land plot to be valued (1m2) = Land price in the land price list of land plot to be valued x Land price adjustment coefficient.
Lawyer Tuan Anh said that according to Article 159 of the 2024 Land Law, from January 1, 2026, provinces and centrally run cities will apply a new land price list. The new land price list is regulated to be close to the market land price, which may increase compared to the current price. Every year, the People's Committee at the provincial level is responsible for submitting to the People's Council at the provincial level a decision to adjust, amend, and supplement the land price list for promulgation and application from January 1 of the following year.
"Therefore, 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 at present, except in the case of compensation by leasing land with one-time payment for the entire lease term, the land price for calculating land rent will be a specific land price decided by the People's Committee at the competent level right at the time of approval" - Lawyer Tuan Anh informed.
However, Lawyer Tuan Anh noted that the specific increase depends on each province, each land location and the compensation resources of the locality. Not all places have increased sharply at the same level.
In addition, according to the Director of Bright Legal Law Firm, the 2024 Land Law, people who are compensated for agricultural land will also receive additional expenses such as support for stabilizing their lives; Support for stabilizing production and business; Support for moving livestock... In addition, people will also enjoy many benefits in terms of compensation and resettlement compensation when their land is recovered according to the 2024 Land Law.
Regarding the compensation payment period when the State reclaims land, Lawyer Tuan Anh said that within 30 days from the date of the decision approving the compensation, support and resettlement plan effective, the agency, unit or organization implementing compensation must pay compensation and support to people whose land is reclaimed or property owners.
In case the payment is made after the 30-day period, the agency, unit or organization performing compensation must pay an additional amount equal to the late payment amount according to the provisions of the 2019 Tax Administration Law calculated on the late payment amount and the late payment period.
