Through a Resolution addressing difficulties in implementing the Land Law: Clarifying the compensation mechanism when an agreement reaches 75%

On the morning of December 11th, with a majority of delegates present voting in favor, the National Assembly passed a Resolution stipulating a number of mechanisms and policies to remove difficulties and obstacles in the implementation of the Land Law. The Resolution consists of 3 Chapters and 13 Articles and will take effect from January 1st, 2026.

Delegates voted to approve the National Assembly Resolution stipulating a number of mechanisms and policies to remove difficulties and obstacles in the implementation of the Land Law. Photo: Quang Vinh

According to the adopted Resolution, there are three cases in which the State can reclaim land for socio -economic development in the national and public interest. Firstly, this includes projects within free trade zones and projects within international financial centers.

The second case involves using land for a project through an agreement on land use rights that has expired, or has exceeded the extension period for completion, but where more than 75% of the land area and more than 75% of the land users have been agreed upon. In this case, the Provincial People's Council shall consider and approve the revocation of the remaining land area to allocate or lease the land to the investor.

Overview of the meeting. Photo: Quang Vinh

The third case involves creating land funds to pay for projects under Build-Transfer (BT) contracts, for leasing land for continued production and business activities in cases where organizations are using land that the State is reclaiming as stipulated in Articles 78 and 79 of the Land Law, Clause 1 of this Article, and Point a of this Clause.

The most notable point in the Resolution passed by the National Assembly is the compensation mechanism for land acquisition when an agreement reaches a rate of "75%".

Minister of Agriculture and Environment Tran Duc Thang presents the Report on the acceptance, explanation, and draft Resolution. Photo: Quang Vinh.

In the report on the acceptance and explanation of the draft Resolution, Minister Tran Duc Thang stated that the Government has incorporated the addition of Clause 7, Article 3, regarding compensation and resettlement support for land acquisition cases as stipulated in Point b, Clause 2, Article 3, in the following direction: Compensation and resettlement support for the remaining land area shall be applied as in cases where the State acquires land. If the total amount of compensation and support received according to the compensation and resettlement support plan per unit of land area is lower than the average of the agreed land price, the landowner whose land is acquired shall receive the remaining amount compared to that average.

Regarding the timing of land valuation for land used as payment under build-transfer (BT) contracts, the Government has incorporated feedback and refined the process as follows: The time of land valuation for land used as payment under BT contracts is the time when the State decides to allocate or lease the land. If the State delays allocating or leasing the land for payment under the BT contract, the investor will receive an additional amount equivalent to the average interest rate of state-owned commercial banks on the value of the project or its components.

The period for receiving the land price is calculated from the time of acceptance of the completed project item or BT project to the time of the decision on land allocation or lease. Minister of Agriculture and Environment Tran Duc Thang informed that the regulation on the time of determining land prices as above is consistent with the time of determining land prices in land law over the periods; at the same time, it partially compensates for the losses of investors due to the State's delay in land allocation or lease and applies to BT contracts implemented from the date the Resolution takes effect (January 1, 2026).

In addition, incorporating feedback from National Assembly deputies, the Government has reviewed and revised several aspects of the draft Resolution, including: adding a provision assigning the Government the authority to regulate the details of land acquisition before approving compensation and resettlement plans, and land acquisition before completing resettlement arrangements; adding a provision stating that in cases where land is leased through auction, the land user must pay the land rent in a lump sum for the entire lease period; and reviewing and refining the technical aspects of language, format, and presentation to ensure consistency in the draft Resolution.

Anh Vu - Viet Thang

Source: https://daidoanket.vn/thong-qua-nghi-quyet-thao-go-kho-khan-thi-hanh-luat-dat-dai-lam-ro-co-che-boi-thuong-khi-thoa-thuan-dat-75.html