After the State recovered the land, this recovery led to losses in property, production and business. Therefore, those damages will be compensated. Next, LawFirm.Vn will specifically discuss the regulations on compensation for damage to property, production and business when the State recovers land.
1. Principles of compensation for property, production and business damage when the State recovers land
Article 88 of the 2013 Land Law stipulates two principles of compensation for property damage and cessation of production and business after the State recovers land:
– Legal property owners whose assets are attached to land have property damage;
– Organizations, households, individuals, Vietnamese residing abroad, and foreign-invested enterprises have had to stop production and business activities and damage has occurred.
2. Compensation method for each type of property
2.1. Compensation for damage to houses and structures built on land (Article 89 of the Land Law 2013)
– For houses and structures serving daily activities attached to land of households, individuals, and Vietnamese residing abroad, when the State recovers land, they must be dismantled in whole or in part, but the remaining portion must be dismantled. If the house or structure does not meet technical standards as prescribed by law, the owner of that house or structure will be compensated with the value of the new construction of the house or structure with equivalent technical standards.
In case the remaining part of the house or construction still meets technical standards as prescribed by law, compensation will be based on actual damage.
– For houses and other constructions attached to land that do not fall into the above cases, when the State recovers the land and is completely or partially dismantled and the remaining part does not meet technical standards as prescribed by the Law. compensation for damages according to the Government’s regulations.
– For technical and social infrastructure works attached to currently used land that do not fall into the two cases mentioned above, the compensation level is calculated by the value of new construction of works with equivalent technical standards according to regulations of specialized laws.
Note : Article 9 of Decree 47/2014/ND-CPspecifically stipulates the compensation level for cases where houses and works do not serve daily activities as follows:
– Compensation level for the total existing value of the damaged house or structure and the amount calculated as a percentage of the existing value of the house or structure according to the formula below and must not exceed 100% of the construction value. New construction of houses and structures with technical standards equivalent to damaged houses and structures:
In there:
Tgt: Existing value of damaged houses and structures;
G1: Value of new construction of damaged houses and works with equivalent technical standards issued by specialized management ministries;
T: Depreciation period applicable to damaged houses and structures;
T1: The time the damaged house or structure has been used.
– For houses and other constructions that are partially demolished but the remaining part is no longer usable, compensation will be paid for the entire house and construction; If a part is demolished but the remaining part still exists and can be used, compensation will be paid for the value of the demolished structure and the cost to repair and complete the remaining part according to equivalent technical standards of the house. building before being demolished.
– For houses and construction works that do not meet technical standards according to regulations issued by specialized management ministries, the Provincial People’s Committee shall stipulate specific compensation levels to suit the actual conditions in the locality. direction.
– In addition, for houses and works for people using state-owned housing, it is regulated as follows according to the provisions of Article 14 of Decree 47/2014/ND-CP
+ If the user of a state-owned house (rented house or self-management organization) within the scope of land recovery must be demolished, the current tenant will not be compensated for the area of the state-owned house. and illegally expanded area, but will be compensated for self-renovation, repair, and upgrade costs; Compensation levels are prescribed by the Provincial People’s Committee.
+ The above housing user is allowed to rent a house at the resettlement site; House rental price is the rental price of state-owned housing; Rented houses are sold by the State to current tenants according to Government regulations; In special cases where there is no resettlement house to arrange, they will receive monetary support equal to 60% of the land value and 60% of the value of the rented house to take care of their new accommodation.

2.2. Compensation for plant varieties and livestock
Article 90 of the 2013 Land Law stipulates:
– In case of damage to plants:
+ For annual crops, the compensation level is calculated by the yield value of the harvested crop including the highest yield of the main crop in the 3 consecutive previous years in the locality and the average price at the time of harvest. return land;
+ For perennial trees, the compensation level is calculated by the current value of the garden according to local prices at the time of land recovery, excluding the value of land use rights;
+ For unharvested crops that can be moved to another location, compensation will be paid for moving costs and actual damages due to having to move or replant;
+ For forest trees planted with state budget capital, natural forest trees assigned to organizations, households, and individuals to plant, manage, care for, and protect, compensation will be based on the actual damage value of the trees. The garden is divided among people to manage, care for, and protect according to the provisions of law on forest protection and development.
– In case of damage to aquatic animals:
+ For aquatic animals that have reached harvest time at the time of land acquisition, compensation is not required;
+ For aquatic animals that have not yet reached harvest time at the time of land recovery, compensation will be paid for actual losses due to early harvest; In case you can move, you will be compensated for moving expenses and damages caused by moving; The specific compensation level is prescribed by the provincial People’s Committee.
2.3. Compensation for property relocation costs when the State recovers land
Regulations in Article 91 of the 2013 Land Law are as follows: If assets must be moved, the State will compensate the costs for dismantling, moving, and installing; In case the machinery system or production line must be moved, compensation will be paid for damage during dismantling, transportation, and installation.
Note : In this case, the compensation level will be determined by the Provincial People’s Committee.
2.4. Compensation for damage to land within safety corridors when constructing works with safety corridors
Article 94 of the 2013 Land Law stipulates: When the State constructs public, national defense, and security works with safety protection corridors without recovering land within the safety corridor, the land user is entitled to Compensate for damages due to limited ability to use land and damage to assets attached to land according to Government regulations.
Note : Article 10 of Decree 47/2014/ND-CP specifically stipulates the compensation method as follows:
– In case of changing land use purpose:
+ Changing the purpose of land use from residential land to non-agricultural land that is not residential land or from residential land to agricultural land:
Tbt = (G1 – G2) x S
In there:
Tbt: Compensation for damages;
G1: Average residential land price per m 2 ;
G2: Price of non-agricultural land other than residential land or average price of agricultural land per m 2 ;
S: Land area whose land use purpose has been changed;
+ Changing the land use purpose from non-agricultural land to agricultural land:
Tbt = (G3 – G4) x S
In there:
Tbt: Compensation for damages;
G3: Average price of non-agricultural land, non-residential land per m 2 ;
G4: Average price of agricultural land per m 2 ;
S: Land area whose land use purpose has been changed.
– In cases where the land use purpose is not changed but limits the ability to use the land, the determination of the level of compensation for damage shall be specifically prescribed by the Provincial People’s Committee based on the actual situation in the locality. .
– Housing, other construction works and other assets attached to land within the safety corridor that are damaged due to clearance will be compensated according to the prescribed damage level.
– When the construction safety protection corridor occupies space of more than 70% of the area of the land plot with houses and construction works, the remaining land area will also be compensated according to the prescribed level as stated above.
– Households and individuals using residential land located within the safety corridor when constructing public works with safety corridors must relocate without having any other accommodation in the commune, ward, or district. Towns where there is land within the safety corridor will be resettled; be compensated for moving costs, and supported to stabilize life and production.
3. Cases where compensation for assets attached to land is not provided
According to the provisions of Article 92 of the 2013 Land Law, the following cases are not compensated when the State recovers land:
– Assets attached to land belong to one of the following types:
+ Land recovery due to improper use by the State
+ The user intentionally destroys the land;
+ Delivering, transferring, or donating in contravention of legal regulations;
+ Land is allocated for management but is encroached upon;
+ Land use rights cannot be transferred without the user being irresponsible and being encroached upon;
+ Land allocated or leased by the State to implement an investment project that is not used for 12 consecutive months or is 24 months behind the progress recorded in the investment project from the date of handover must be put into use. use;
+ Individual using land dies without heirs;
+ Land is allocated and leased by the State for a term but not extended.
– Assets attached to land are created contrary to the law or created after a land recovery notice is issued by a competent state agency.
– Technical infrastructure, social infrastructure and other construction works are no longer in use.
4. Payment of compensation
The payment deadline is specified in Article 93 of the 2013 Land Law as follows:
– Within 30 days from the date the land recovery decision of the competent state agency takes effect, the agency or organization responsible for compensation must pay compensation and support to the person responsible. reclaimed land.
– In case of delay in payment, when paying compensation and support, in addition to compensation and support according to the compensation, support and resettlement plan approved by the competent authority, the person whose land is recovered will still have be paid an additional amount equal to the late payment interest according to the provisions of the Law on Tax Administration calculated on the amount of late payment and the period of late payment.
– In case the person whose land is recovered does not receive compensation or support according to the compensation, support and resettlement plan approved by the competent authority, the compensation and support money will be deposited into the temporary account of the owner. State Treasury.
– Land users who are compensated when the State recovers land but have not yet fulfilled their land-related financial obligations to the State according to the provisions of law must subtract the amount of unpaid financial obligations from the amount. Compensation money is returned to the State budget and the deduction of this amount is specifically guided in Article 30 of Decree 47/2014/ND-CP