Notable new points of Decree 88/2024/ND-CP

The following article briefly provides notable new points of the Government's Decree 88/2024/ND-CP dated July 15, 2024 (hereinafter referred to as “Decree 88”) regulating compensation, support and resettlement when the State recovers land, including four parts: (1) Terminology and explanations; (2) Scope of adjustment and subjects of application; (3) Some new points of the Decree and (4) Opportunity assessment.

1.        Terminology and explanations

According to Article 3 Land Law 2024, the terms in the article are explained as follows:

1.1.   “Compensation for land” refers to the State's return of the land use right value of the recovered land area to the one whose land is recovered.   

1.2.   “Support when the State recovers land” is the State's policy to assist those whose land is recovered and owners of land-attached assets to stabilize their lives, production and development in addition to the compensation amounts prescribed in this Law.

1.3.    “The State recovers land” refers to the competent authority’s decision to recover land use rights of land users or to recover land from current land users or to recover land that is being assigned by the State for management.

1.4.    “Resettlement” is the process by which the State provides compensation through residential land or housing in a resettlement area or at another appropriate location for those whose land is recovered or provides residential land or housing for resettlement to those who do not qualify for land compensation according to the provisions of this Law but have no other place of residence.

2.        Scope of regulation and subjects of application

2.1.      Scope of adjustment

This Decree details and guides the implementation of Clause 3 Article 87, Article 92, Article 94, Article 95, Article 96, Article 98, Article 99, Article 100, Article 102, Article 106, Article 107, Article 108, Article 109 and Article 111 Land Law 2024 on compensation, support and resettlement when the State recovers land.

2.2.      Subjects of application

The Decree applies to (i) state agencies exercising the rights and responsibilities on behalf of all land owners, performing the task of unified state management of land and civil servants engaged in land-related matters at the commune level; units and organizations performing the tasks of compensation, support and resettlement; (ii) the owner of the recovered land and the owner of assets attached to the recovered land; (iii) other subjects related to compensation, support and resettlement when the State recovers land.

3.        Some new points of Decree 88

3.1.      Variety of compensation methods

Compared to Land Law 2013, Land Law 2024 expands two more compensation methods: compensation with land having different purposes from the recovered land and compensation with houses (without the limitation as in Land Law 2013).

Decree 88 provides specific provisions on these forms of compensation. For households, individuals and people of Vietnamese origin residing abroad who are using residential land or owning houses associated with land use rights in Vietnam:

• The land price for calculation of land use fees shall be determined according to the land price table at the time of approval of the compensation, support and resettlement plan;
• In case where compensation is provided by leasing land with one-time rental payment for the entire lease term, the land rental price shall be decided by the competent People's Committee at the time of approval of the compensation, support and resettlement plan.

For economic organizations with recovered residential land: The competent People's Committee determines the land price at the time of approving the compensation, support and resettlement plan.

3.2.      Additional methods to determine compensation in certain cases

Compared to the provisions of Article 12 of Decree No. 47/2014/ND-CP dated May 15, 2014 of the Government, the provisions of Article 6 of Decree 88 have supplemented new methods of determining compensation in cases of force majeure events and in cases where the certificates or papers stipulated in Article 137 Land Law 2024 do not have accurate position or coordinates.

• In case the actual measurement for land recovery has been completed, but then due to natural disasters, landslides or subsidence, the measured land area is changed at the time of making the compensation, support and resettlement plan: Use the measured data to make a compensation plan, support and resettlement.
• Certificates or papers specified in Article 137 Land Law 2024 with inaccurate locations and coordinates: Compensation according to the actual location and coordinates of measurement.

In addition, Decree 88 also supplements cases of compensation for non-agricultural land other than residential land when the State recovers land for households and individuals, including:

• Cases where non-residential, non-agricultural land has been used before July 1, 2014, in violation of land law but still qualifies for compensation.
• Cases where non-residential, non-agricultural land was granted improperly or acquired through improper purchase, liquidation, pricing, or distribution of housing or structures attached to land before the effective date of the Land Law.

3.3.      Supplementing forms of support when the State recovers land

Decree 88 also supplements specific regulations on two new forms of support, including:

• Assistance in relocating livestock.
• Support for dismantling, demolishing and relocating land-attached assets including structures built with a temporary construction permit, which, at the time of land recovery, has expired according to construction law.

3.4.      Supplementing cases of support and resettlement arrangement

Decree 88 supplements the case of supporting life stability when the State recovers land of less than 30% of the agricultural land area currently in use. The provincial People's Committee shall decide the support amount, duration of support, and periodic payment of support money to suit each specific case but not exceed the prescribed support amount[1].

Moreover, Decree 88 provides guidance on resettlement arrangements for projects related to national defense, security, transportation, irrigation, technical and social infrastructure requiring land recovery for residential purposes in cases where the individual or household wishes to resettle on-site through a land swap on the remaining agricultural land after recovery[2].

4.        Opportunity assessment

4.1.      Opportunities for Investors

Decree 88 details and supplements new provisions, increasing transparency and clarity in compensation, support and resettlement when the State recovers land. This allows businesses to easily predict and calculate costs incurred when conducting projects related to land recovery as well as to be flexible in planning real estate investment, development and business operations.

4.2.      Opportunities for households and individuals

The Decree clearly stipulates the support for vocational training, career transition and job search for households and individuals whose land is recovered. This creates opportunities for people to improve their skills, switch careers, and find new job opportunities. In addition, households and individuals will also receive a reasonable compensation, which can be used to invest or improve their living standards.

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