Vietnam: Determination of value of land use rights to be refunded when the State expropriates land

Circular No. 80/2017/TT-BTC of the Ministry of Finance of Vietnam stipulates the determination of the remaining value of property pertaining to land that has been legally established according to regulations of law without provision of the state budget to return to property owners when the State expropriates land due to violations against regulations of law on land (providing guidelines for Clause 1 Article 18a of Decree No. 47/2014/ND-CP of Vietnam’s Government – added in Clause 2 Article 4 of Decree No. 01/2017/ND-CP of Vietnam’s Government). According to this regulation, provincial People's Committees shall consider each circumstance to make a decision on returning the remaining value of property pertaining to land to land users having their land expropriated due to violations against regulations on land mentioned in Points c and g Clause 1 Article 64 of the Land Law.

The determination of the remaining value of property pertaining to land to return to property owners mentioned above shall be carried out from the time the State expropriates land.

The remaining value of property pertaining to land stated above means the total remaining value of each piece of property pertaining to land. The remaining value of each piece of property pertaining to land shall be determined as follows:

The remaining value of plants or domestic animals shall be equivalent to the compensation for plants and animals specified in Article 90 of the Land Law;

The remaining value of houses, buildings or other construction works pertaining to land (hereinafter referred to as "construction works pertaining to land”) shall be determined as follows:

A financial authority (under the level having the power to expropriate land) shall take charge and cooperate with relevant authorities in setting up a council to determine the remaining value of the property pertaining to land specified above; and submit it to the People’s Committee of the same level for approval. The financial authority may hire a price evaluation organization to determine the remaining value of the property pertaining to land specified above if necessary; take charge and cooperate with relevant authorities in assessing the remaining value thereof determined by the price evaluation organization and submit it to the People’s Committee of the same level for approval.

Circular No. 80/2017/TT-BTC of the Ministry of Finance of Vietnam takes effect from September 15, 2017.

Source: Portal of the Ministry of Finance

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