How is compensation, support and resettlement payment regulated?

Article 94 of the 2024 Land Law stipulates the funding and payment of compensation, support, and resettlement, as follows:

1. Compensation, support and resettlement costs are guaranteed by the State. Compensation, support and resettlement costs include: compensation, support and resettlement when the State reclaims land; costs to ensure the organization of compensation, support and resettlement and other costs.

2. In case the State allocates land with land use fees or leases land in accordance with the provisions of the law on land, if the project implementer voluntarily advances compensation, support and resettlement costs according to the compensation, support and resettlement plan approved by the competent authority, the State budget shall reimburse the project by deducting the land use fees and land rent payable. The deducted amount shall not exceed the land use fees and land rent payable; the remaining amount (if any) shall be included in the project investment cost.

In case the State allocates land without collecting land use fees, allocates land with collecting land use fees, or leases land according to the provisions of the law on land, and the project implementer is exempted from land use fees and land rent for the entire land use term if he/she voluntarily advances compensation, support, and resettlement costs according to the compensation, support, and resettlement plan approved by the competent authority, then the compensation, support, and resettlement costs shall be included in the project investment costs.

3. Payment of compensation, support and resettlement is made as follows:

a) Within 30 days from the date the decision approving the compensation, support and resettlement plan takes effect, the agency, unit or organization implementing the compensation must pay compensation and support to the person whose land is recovered and the property owner;

b) In case the agency, unit or organization implementing compensation is late in payment, when paying compensation and support to the person whose land is recovered or the property owner, in addition to the compensation and support according to the compensation, support and resettlement plan approved by the competent authority, the person whose land is recovered or the property owner shall also be paid an additional amount equal to the late payment amount as prescribed by the Law on Tax Administration calculated on the amount of late payment and the late payment period.

The competent authority approving the compensation, support and resettlement plan is responsible for approving the plan for late compensation payment to the person whose land is recovered and the property owner. The budget for late compensation payment is allocated from the budget of the authority approving the compensation, support and resettlement plan.

4. In case the person whose land is recovered or the owner of the property does not receive compensation or support according to the compensation, support and resettlement plan approved by the competent authority or in case the recovered land or property is in dispute, the compensation and support will be deposited into the deposit account of the unit or organization performing the compensation, support and resettlement tasks opened at a commercial bank in which the State holds controlling shares at a non-term interest rate. Interest from the compensation and support will be paid to the person with the right to use the land or the owner of the property being compensated or supported.

5. In case the compensation, support and resettlement plan needs to be revised or supplemented and includes changes in land prices and property prices, the land prices and property prices for calculating compensation shall be determined at the time of issuance of the decision to adjust the compensation, support and resettlement plan. In case the land prices and property prices at the time of issuance of the decision to adjust the compensation, support and resettlement plan are lower than the land prices and property prices in the approved compensation, support and resettlement plan, the compensation prices in the approved plan shall apply. The revised or supplemented contents that are not land prices and property prices shall be applied according to the provisions of the law on land at the time of approval of the compensation, support and resettlement plan.

6. Land users who are compensated when the State reclaims land but have not yet fulfilled their financial obligations regarding land to the State according to the provisions of law must deduct the amount of money for which financial obligations have not yet been fulfilled from the compensation amount to be returned to the State budget.

7. The Government shall detail this Article.