Decree No. 197/2004/ND-CP on Compensation, Support and Resettlement upon Land Recovery by the State

Document identity and legal basis

Decree No. 197/2004/ND-CP on Compensation, Support and Resettlement upon Land Recovery by the State, issued by the Government. The excerpt cites its principal legal bases as the Law on Organization of the Government dated 25 December 2001 and the Land Law dated 26 November 2003, upon the proposal of the Minister of Finance.

The excerpt provided does not state the effective date or contain a transitional provision naming the instrument it replaces. The full official text should be consulted for promulgation date, effective date and repeal or replacement clauses.

Scope and subjects of application

Article 1 provides that the Decree regulates compensation, support and resettlement when the State recovers land. Article 2 defines the subjects of application as organizations, Residential community, religious establishments, households and individuals using land, and other subjects related to compensation, support and resettlement.

The Decree applies where land recovery is carried out under the Land Law, with specific handling of cases of voluntary donation of land under Article 1, and cases of land recovery without compensation under Article 7 and Article 38 of the Land Law 2003.

Core principles and entitlements

Articles 3 to 6 and 18 set out general principles. The State organizes payment of compensation, support and resettlement. Persons whose land is recovered and who satisfy the conditions for compensation under Article 8 are compensated; persons not eligible for compensation are considered for support. Compensation for land is calculated on the basis of land price under Article 9 and Remaining land investment cost where applicable.

Resettlement is addressed in Articles 4 and 33 to 38. Land users who must relocate are entitled to resettlement arrangements, including allocation of land or house in resettlement areas, and support for production and livelihood in the new location. Compulsory conditions for resettlement areas and measures to stabilize production and life are prescribed. Special projects designated by the Government have separate resettlement provisions under Article 38.

Compensation for assets attached to land is governed by Articles 18 to 25. Owners of assets that were lawfully created are compensated for houses and construction works, crops and livestock (including aquaculture animals), graves and cultural or historical works. Illegal houses and works, or assets created after the land recovery decision, are handled distinctly, including non-compensation or consideration of support depending on timing, legality and planning compliance. Compensation for assets under State ownership and compensation for employees who lose work in economic organizations are also regulated.

Support policies and levels

Articles 27 to 32 provide support in addition to compensation. These include relocation support for households that must move, support for stabilization of life and production, support for career conversion and job creation for households and individuals directly engaged in agricultural production when agricultural land is recovered, support for persons renting houses not under State ownership, support upon recovery of public land of Communes, Wards and Townships, and other locality-specific supports decided by the People's Committee at the provincial level based on actual conditions.

Specific land types are dealt with in Articles 10 to 17, including agricultural land of households and individuals including agricultural land interspersed within residential areas, non-agricultural land other than residential land, residential land and co-owned residential land, land within safety corridors for construction works, and cases where organizations whose land is recovered are not compensated but must relocate.

Organization of implementation

Articles 39 to 48 regulate implementation. The People's Committees at relevant levels assign the task of compensation, support and resettlement, establish the compensation, support and resettlement council, and direct preparation, tham dinh and approval of the compensation, support and resettlement plan. Procedures for agreement on compensation and support, responsibilities of provincial departments (including the Ministry of Finance and the Ministry of Planning and Investment at central level), and organizational responsibility of the assigned implementing organization are set out. Article 48 provides for funding of organizational costs for implementation, and Article 47 provides for coercive enforcement of the land recovery decision and site clearance. Article 49 provides for complaints and settlement of complaints by persons whose land is recovered.