The National Assembly on December 11 approved a resolution introducing certain mechanisms and policies to address difficulties and obstacles in implementing the Land Law.
Under the resolution, the State can reclaim land for socio-economic development for three following cases:
The first case involves projects within free trade zones and international financial centers.
The second case pertains to land use for projects where agreements on land use rights have expired or have been extended twice without completion, but agreements have been reached for over 75% of the land area and with more than 75% of land users. In such instances, the provincial People's Council will consider and approve the reclamation of the remaining land area to allocate or lease it to investors.
The third case involves creating land funds to settle projects under Build-Transfer (BT) contracts.
A notable point in the resolution is the compensation mechanism when land acquisition agreements reach the "75%" threshold (second case). If the compensation, support, and resettlement amount per unit area is lower than the average agreed land price, the landowner will receive the difference. Investors will advance the funds to cover the compensation, support, resettlement, and the difference between the average agreed land price and the compensation plan. This difference will be included in the project's investment costs.
Additionally, the resolution mandates that the State compensates for property damage when reclaiming land.
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