From August 1, the Government will allow provinces and centrally run cities to set up their own land development funds to help make available “clear” ground areas for auctioning land use rights among planned projects and provide financial supports for building resettlement areas and vocational training for inhabitants whose land is recovered by the State. These funds also function to manage recovered or transferred land areas without investment projects or not yet put for land use rights auction, and provide information on land prices and local land areas available for use.
Land users whose current land areas are recovered by the State will be compensated with new land plots planned for the same use purpose with recovered areas. If there is no available land for compensation, they will receive cash amounts equal to their land prices calculated at the time of land recovery decisions. Any positive or negative difference between the recovered land price and the value of new land use rights or resettlement houses may be paid in cash to or should be paid by displaced inhabitants.
Farmers and their households whose agricultural land is recovered for infrastructure or real estate development projects and who are not compensated with land will be provided with supports for stabilizing their daily life and production, and finding new occupations. In addition, they may either receive cash amounts equal to 1.5-5 times of the value of the recovered land or residential land areas, apartments or land areas for non-agricultural production.
At least six months before the expiration of the prescribed land use duration, current users being economic organizations, overseas Vietnamese and foreign organizations and individuals that wish to extend that duration must file extension applications with provincial-level Natural Resources and Environment Departments. Vietnamese households and individuals wishing to further use their current land areas may file applications with district-level Natural Resources and Environment Offices.
In some specific cases, provincial-level People’s Committees may re-determine land prices to be applicable in their localities based on actual land use rights transfer prices on the market. Annual land lease rates will be equal to 0.5-2% of land prices as decided by provincial-level People’s Committees according to use purposes of leased land.