Compensation for agricultural land may increase from 2026
The 2024 Land Law has removed the regulation on land price framework and land will be priced according to market principles. Accordingly, when removing the land price framework, each locality will decide on the land price list and adjust the price list 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).
Pursuant to Clause 3, Article 159 of the 2024 Land Law (amended in Decree 151/2025/ND-CP), it is stated: The provincial People's Committee shall develop and decide on the first land price list for promulgation and application 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.
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.
At the same time, Clause 5, Article 7 of Decree 71/2024/ND-CP stipulates that specific land prices are determined by the method of land price adjustment coefficient, which is 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 Land price adjustment coefficient
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.
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.
Compensation for land when the State reclaims agricultural land
According to Article 96 of the 2024 Land Law, compensation for land when the State reclaims agricultural land from households and individuals is stipulated as follows:
- Households and individuals who are using agricultural land when the State reclaims the land, if they meet the conditions for compensation prescribed in Article 95 of the 2024 Land Law, will be compensated in agricultural land or in money or in land with a different purpose than the type of reclaimed land or in housing.
- Households and individuals who are using agricultural land when the State reclaims the land, compensation for agricultural land is regulated as follows:
+ The area of agricultural land to be compensated includes the area within the limit prescribed in Articles 176 and 177 of the 2024 Land Law and the area of land received by inheritance;
+ For agricultural land areas due to receiving land use rights transfer exceeding the limit before July 1, 2014, compensation and support shall be implemented in accordance with Government regulations.
- For agricultural land used before July 1, 2004, where the land users are households or individuals directly engaged in agricultural production but do not meet the conditions for being granted a Certificate of land use rights and ownership of assets attached to land according to the provisions of the 2024 Land Law, compensation shall be implemented in accordance with the Government's regulations.
