Compensation for land recovery may change
According to Point e, Clause 1, Article 160 of the 2024 Land Law, compensation when the State reclaims land will be calculated based on specific land prices.
According to the provisions of Clause 3, Article 159 of the 2024 Land Law (amended in Decree 151/2025/ND-CP), it is clearly stated: The provincial People's Committee will develop and decide on the first land price list to be announced and applied from January 1, 2026. Every year, the Provincial People's Committee is responsible for deciding to adjust, amend, and supplement the land price list to be announced and applied from January 1 of the following year.
Accordingly, from January 1, 2026, the Provincial People's Committee will develop and decide on the first land price list. The land price of the land price list will be built according to the area and location:
According to Article 30 of Decree 71/2024/ND-CP, specific land valuation must be implemented in accordance with the provisions of Article 158 of the 2024 Land Law and Articles 4, 5, 6, 7 of Decree 71/2024/ND-CP; results of synthesizing and analyzing information on market land prices; factors affecting land prices.
At Point d, Clause 6, Article 158 of the 2024 Land Law, the land price adjustment coefficient method is applied to specifically assess compensation when the State reclaims land in cases of reclaiming many adjacent plots of land with the same purpose of use and has been regulated for land prices in the land price list but is not eligible to apply the comparison method.
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 land price list of land plot to be valued x coefficient of land price adjustment
Accordingly, the land price of the land price list will be built according to area, location and will be announced by the Provincial People's Committee and applied from January 1, 2026.
The adjustment of the land price list will be close to the market land price where the land compensation price is calculated according to a specific land price (including the land price adjustment coefficient method implemented according to the land price list).
Therefore, from January 1, 2026, market land prices will affect land compensation prices. Compensation prices may be higher than current prices, except in cases 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.
Factors affecting land prices
Factors affecting land prices are stipulated in Article 8 of Decree 71/2024/ND-CP as follows:
* Factors affecting land prices for non-agricultural land, including:
- Location, location of the land plot, land plot;
- Traffic conditions: width, road surface structure, adjacent to 01 or more road surfaces;
- Conditions for water supply and drainage, electricity supply;
- Area, size, shape of land plot, land plot;
- Factors related to construction planning include: land use coefficient, construction density, construction boundary, construction height limit, limit of basements built according to detailed construction planning approved by competent state agencies (if any);
- Current environmental and security status;
- Land use term;
- Other factors affecting land prices in accordance with actual conditions, cultural traditions, and local customs and practices.
* Factors affecting land prices for agricultural land, including:
- Crop and livestock productivity;
- Location, characteristics of land plots, land plots: nearest distance to the place of production and consumption of products;
- Traffic conditions for product production and consumption: road width, road allocation, road surface structure; terrain conditions;
- Land use term, except for agricultural land allocated by the State to households and individuals according to the limit of agricultural land allocation, agricultural land within the limit of receiving transfer of rights, is not based on land use term;
- Other factors affecting land prices in accordance with reality, cultural traditions, and local customs and practices.
