Learn about Land Law 2013
(Baonghean) - Question: In the documents guiding the implementation of the revised Land Law, how are compensation for remaining investment costs in land when the State reclaims land for national defense and security purposes; socio-economic development for national and public interests specified?
Reply:According to Article 3, Decree No. 47/2014/ND-CP (Decree regulating compensation, support, and resettlement when the State acquires land) stipulates compensation for remaining land investment costs when the State acquires land for national defense and security purposes; socio-economic development for national and public interests as follows:
1. The subjects that are compensated for the remaining investment costs on land when the State reclaims land for national defense and security purposes; socio-economic development for national and public interests are the cases specified in Article 76 of the Land Law.
2. Remaining land investment costs are the costs that land users have invested in land in accordance with the land use purpose but have not yet fully recovered by the time the competent state agency decides to reclaim the land. Remaining land investment costs include all or part of the following costs:
a) Site clearance costs;
b) Costs of improvement to increase soil fertility, remove acidity, wash away salt, and prevent erosion and intrusion of land used for agricultural production purposes;
c) Cost of reinforcing the ability to withstand vibration and subsidence of land used as production and business premises;
d) Other related costs invested in land in accordance with the land use purpose.
3. Conditions for determining investment costs in remaining land:
a) There are records and documents proving investment in land. In case the remaining land investment costs have no records and documents proving, the People's Committee of the province or centrally-run city (hereinafter referred to as the provincial-level People's Committee) shall, based on the actual situation in the locality, prescribe the determination of the remaining land investment costs;
b) Land investment costs do not originate from the state budget.
4. The remaining land investment cost must be calculated in accordance with the market price at the time of the land recovery decision and is determined according to the following formula:
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In there:
P: Remaining land investment cost;
P1: Land leveling costs;
P2: Cost of improvement to increase soil fertility, remove acidity, wash away salt, and prevent erosion and intrusion of land used for agricultural production purposes;
P3: Cost of reinforcing the ability to withstand vibration and subsidence of land used as production and business premises;
P4: Other related costs invested in land suitable for land use purposes;
T1: Land use term;
T2: Remaining land use term.
In case the time of investment in land is after the time of land allocation or lease by the State, the land use period (T1) is calculated from the time of investment in land.
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