IS LAND BE EXPROPRIATED IF LAND USERS FAIL TO FULFILL FINANCIAL OBLIGATIONS TO THE STATE?

According to the provisions of the 2024 Land Law, is land be expropriated if land users fail to fulfill financial obligations to the state?

Table of Contents

1. Cases of land expropriation due to violations of land laws

2. What are the cases of force majeure in which financial obligations to the State are not fulfilled but land is not expropriated?

1. Cases of land expropriation due to violations of land laws

Pursuant to Article 81 of the 2024 Land Law, cases of land recovery due to violations of land laws include:

“Article 81. Cases of land expropriation due to violations against land law

1. A land user uses land for a purpose other than the intended purpose for which the State allocates, leases out the land or recognizes LURs of the land and has been penalized for unintended use of the land constituting an administrative violation but continues committing such violation again.

2. A land user destroys land and has been penalized for the land destruction constituting an administrative violation but continues committing such violation again.

3. Land is allocated or leased out to ineligible subjects or ultra vires.

4. Land is received by conveyance or donation from a person who is allocated or leased out the land by the State but the person is not permitted to convey or donate the land according to regulations of this Law.

5. Land is allocated by the State to manage but is trespassed or appropriated.

6. A land user fails perform financial obligations to the State.

7. A land user has not used annual crop land or land used for aquaculture for a period of 12 consecutive months; perennial crop land for a period of 18 consecutive months; forestry land for a period of 24 consecutive months and has been penalized for the disuse constituting an administrative violation but continues failing to use the land according to the period stated in the decision to impose penalty for the administrative violation;

8. If the State allocates, leases out land, permits land repurposing, recognizes LURs, receives LURs by conveyance for execution of an investment project but the land is not used for 12 consecutive months from the date of actual land receipt (or the land use is behind schedule by 24 months if land is not put into use or put into use behind schedule), the investor shall be given a land use deferral of up to 24 months and has to pay the State an amount equal to land levy and land rent accrued over the deferral period. If the investor does not put the land into use upon expiration of the deferral period, the State will expropriate the land without land-related recompense, property affixed to the land, and the residual land value.

9. The cases specified in Clauses 6, 7 and 8 of this Article shall not apply to cases of force majeure.

10. The Government of Vietnam shall elaborate this Article.”

Therefore, the act of failing to fulfill financial obligations to the State is an act of violating the law on land and is subject to land revocation, except for cases of failure to fulfill financial obligations due to force majeure.

2. What are the cases of force majeure in which financial obligations to the State are not fulfilled but land is not expropriated?

Pursuant to Clause 1, Article 31 of Decree 102/2024/ND-CP, which stipulates cases of force majeure in which land is not expropriated due to failure to fulfill financial obligations to the State:

“Article 31. Regulations on cases of force majeure to be applied in handling cases specified in Clauses 6, 7 and 8, Article 81 of the Land Law

1. Cases of force majeure to be applied in handling cases specified in Clauses 6, 7 and 8, Article 81 of the Land Law are force majeure events and objective obstacles as prescribed by civil law that directly affect land use, including:

a) Natural disasters, environmental disasters;

b) Fire, epidemics;

c) War, state of national defense and security emergency;

d) Other cases as prescribed by law on state of emergency;

d) In case a competent state agency applies temporary emergency measures, seizes or freezes land use rights and assets attached to land in accordance with the provisions of law, and the land user is then allowed to continue using the land;

e) The administrative decision or administrative act of a competent state agency is an objective obstacle, not due to the fault of the land user, directly affecting the use of the land;

g) Other cases decided by the Prime Minister upon the proposal of the provincial People’s Committee or the Minister of the specialized management ministry.” Thus, even if the land user does not fulfill his/her financial obligations to the State, the land will not be expropriated if he/she falls under the above force majeure cases.