When the State recovers land, citizens’ biggest questions are always: how much compensation, calculated at which price, and where will we live if we lose our home? Vietnam’s Land Law 2024 together with Decree 88/2024/ND-CP has rebuilt the entire compensation, support and resettlement framework around two core principles: compensation at specific land prices and resettlement in housing equal to or better than the old home.
1. Compensation principles (Article 91)
Compensation, support and resettlement upon state land recovery must ensure: democracy, objectivity, fairness, publicity, transparency, timeliness and legal compliance, with attention to social policy beneficiaries and people directly engaged in agricultural production. Specifically:
- Land compensation: effected by allocating land of the same use purpose as the recovered land; where no land is available, compensation is paid in cash at the specific land price of the recovered land type, as decided by the competent People’s Committee at the time of approval of the compensation, support and resettlement plan;
- Recovered land holders may register their wish to receive cash compensation when the plan is prepared;
- Asset owners suffering asset damage are compensated for the damage;
- The State is responsible for supporting recovered land holders to secure jobs, income and stabilize their lives and production.
2. “Specific land price” — which price, decided by whom?
The specific land price is decided by the competent People’s Committee at the time of approval of the compensation, support and resettlement plan, determined under the land valuation methods (Article 158). It is NEITHER a negotiated price NOR the free market price — but the law sets a protective “floor”: the specific land price used for compensation must not be lower than the land price table price (Clause 8, Article 158).
As the new 2026 land price tables track market prices more closely, this floor helps recovered land holders receive more realistic compensation than before.
3. Forms of compensation
- Land of the same use purpose as the recovered land (priority);
- Cash at the specific land price — per the registered wish;
- Land of a different use purpose or housing (Article 4 of Decree 88/2024/ND-CP): any difference between the land compensation/support amount and the payable land use fee/rent (or house purchase price) is settled — surpluses are paid out, shortfalls topped up.
4. Compensation for assets on the land
Under Article 102 (houses and construction works) and Article 103 (crops and livestock) of the Land Law 2024 (detailed in Article 14 of Decree 88/2024/ND-CP), owners of houses, construction works, crops and livestock attached to the land are compensated for asset damage upon state recovery, provided the assets are lawfully documented and do not violate planning or illegal construction rules. Illegally built assets on encroached land are in principle not compensated.
5. Resettlement policy (Article 111)
People whose residential land is recovered and who have no other housing are arranged resettlement on the principle: new housing equal to or better than the old home. Citizens may choose resettlement by residential land or by housing, are prioritized in choosing suitable locations, receive support for moving and life stabilization costs, and are exempted from or granted reductions of land use fees upon resettlement land allocation as prescribed.
Frequently asked questions
Q: At which point in time is the compensation price set?
A: At the time of approval of the compensation, support and resettlement plan — not when the recovery decision is issued or when payment is made. This is the key legal milestone when disputing the price.
Q: What if I disagree with the compensation amount?
A: Citizens may comment during plan preparation, and may complain about the plan approval decision or bring an administrative lawsuit if they consider the decision unlawful.
Q: Is there extra support for recovered agricultural land?
A: Beyond land compensation, people directly engaged in agricultural production may be considered for life stabilization support, vocational training and job conversion support (under Decision 12/2024/QD-TTg and Decree 88/2024/ND-CP).
Has your family’s land been recovered and do you need the compensation plan reviewed? Contact us for advice.
Prepared by the FLAW AI Legal Council. This content is pending QA Council review before submission for approval; it is for reference only and does not replace legal advice for your specific case.
