The Ho Chi Minh City Department of Natural Resources and Environment (TN&MT) has recently sent a document to the City People's Committee proposing policies on compensation, support, and resettlement for land acquisition and relocation projects on and along canals and waterways.

Specifically, for land originating from rivers, streams, canals, and specialized water bodies that have been encroached upon and illegally converted to other uses, no compensation will be provided, but land support will be calculated.

For land used before July 1, 2014, 70% of the compensation price for residential land will be subsidized. For land used from July 1, 2014 onwards, no land subsidy will be applied. The land area used for calculating the subsidy is the area containing houses, structures, and other architectural works.

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People living along the canals are still waiting for relocation projects. Photo: HT

For land areas not originating from rivers, streams, canals, and specialized water bodies, compensation, support, and resettlement will be calculated according to the regulations in effect at the time the compensation, support, and resettlement plan is approved.

According to the Department of Natural Resources and Environment, regarding minimum resettlement support, the People's Committees of districts and communes in Thu Duc City will base their resettlement decisions on the regulations in the 2024 Land Law. In cases where the entire house and land are reclaimed and eligible for land compensation, resettlement will be provided in the form of land plots or social housing.

In cases where land is reclaimed but the conditions for compensation for residential land are not met, if the reclaimed residential land area is greater than or equal to the local residential land allocation limit, resettlement will be provided in the form of land plots or social housing; if it is smaller, only social housing will be provided.

In cases where resettlement is granted but the compensation and support for land are insufficient compared to the value of a minimum resettlement plot, the State will provide sufficient support to ensure the allocation of a minimum resettlement plot (in cash, land, or housing).

If the total compensation and support for housing and land received by a household is insufficient to cover the cost of housing in the resettlement area, the Compensation, Support, and Resettlement Council of the project will consider allowing the household to pay in installments.

In the case of resettlement with land plots, households will pay the total amount of compensation and support for the land they have received. The difference between the value of the land plot allocated to the household and the amount the household initially paid will be recorded as a debt for land use fees as per regulations.

In the case of resettlement in apartment buildings, households will pay the total amount of compensation and support received for housing and land.

The difference between the value of the allocated apartment and the initial payment made by the household will be repaid in monthly installments over a maximum period of 15 years, calculated based on the average interest rate on demand deposits of four state-owned commercial banks (BIDV, Agribank , VietinBank, Vietcombank) on the outstanding balance.

According to the Department of Natural Resources and Environment, if approved by the Ho Chi Minh City People's Committee, this policy will apply to projects implementing compensation, support, and resettlement work in accordance with the 2024 Land Law.

The Department will incorporate this into the decision of the Ho Chi Minh City People's Committee promulgating regulations on compensation, support, and resettlement when the State recovers land in Ho Chi Minh City (replacing the previous Decision No. 28).

These new policies were also proposed by the Department for immediate application to the Rach Xuyen Tam project (from the Nhieu Loc - Thi Nghe canal to the Vam Thuat river) implemented in Binh Thanh and Go Vap districts, affecting approximately 2,300 households.

Ho Chi Minh City: Pilot program allowing all households with houses along canals and waterways to rent or rent-to-own social housing . To expedite compensation procedures in projects relocating houses on and along canals and waterways, the Ho Chi Minh City Department of Construction has proposed a pilot program allowing these households to rent or rent-to-own social housing.