In what cases will businesses have land recovered?

Businesses have land recovered in case of violating legal regulations on land use, such as not using land for the right purpose, leaving land fallow for too long, or not fulfilling financial obligations to the State. Land recovery aims to ensure effective land use, avoid wasting resources, and promote economic development. Businesses need to master the regulations to protect their legal rights.

Cases of businesses have land recovered

Enterprises can have land recovered according to the provisions of Chapter VI of the Land Law 2024. Cases of recovery are divided into four main groups: recovery for defense, security, and socio-economic development purposes; confiscation due to violation of land law; recovery due to termination of investment project operations; and recovery due to non-use of land within the prescribed time.

Revocation for purposes of national defense, security, socio-economic development for national and public interests

According to Article 78 and Article 79 of the Land Law 2024, the State has the right to reclaim land from enterprises to serve national defense and security interests or socio-economic development for national and public interests.

Land acquisition purposes serve defense projects such as military bases, defense projects, security and transportation projects, irrigation, energy, healthcare, education, environment, and other infrastructure projects. This helps develop infrastructure, ensure social security, protect the environment, and serve public interests.

Refer to cases where the State recovers land for national defense, security, and socio-economic development purposes for national and public benefits: HERE

Businesses that have land recovered in these cases must comply with the decision of the competent state agency and may be considered for compensation according to regulations.

Revocation due to violation of land law

The State recovers land from enterprises if there are violations of land law according to Article 81 of the Land Law 2024. Basic violations include:

• Using land for the wrong purpose that has been assigned, leased or recognized, has been sanctioned but continues to be violated.
• The land user destroyed the land and was administratively sanctioned but continued to violate it.
• Land is allocated or leased to the wrong person or without the right authority.
• Land received by transfer or donation from a person who is not eligible for transfer or donation according to regulations.
• Land is allocated by the State for management, but it is encroached and occupied.
• Land users do not fulfill financial obligations to the State.

Enterprises that commit the above acts will be subject to a decision to confiscate by competent state agencies without compensation or land support.

Revocation due to termination of land use according to law

According to Clause 1, Article 82 of the Land Law 2024, enterprise land can be revoked when:

• The organization that is allocated land without collecting land use fees is dissolved, goes bankrupt or terminates operations according to the law.
• Land is allocated or leased for a limited period but cannot be renewed.
• The investment project is terminated according to the provisions of investment law.
• Land is recovered because the forest has been reclaimed in accordance with the law on forestry.

In addition, according to the provisions of Clause 3, Article 82 of the Land Law 2024, cases where the State recovers land due to life-threatening risks or cannot continue to be used include:

• Residential land located in an area of ​​environmental pollution that poses a threat to life; Other land in the contaminated area cannot continue to be used for its original purpose.
• Residential land at risk of landslides, subsidence or other life-threatening natural disasters; Other land is subject to landslides, subsidence or natural disasters, making it unusable.

In this case, businesses can receive compensation or support if they have a legal basis to determine valid land use rights before being revoked.

Revocation due to land not being used within the prescribed time

The State recovers land when an enterprise does not put the land into use within the time limit prescribed in Clauses 7 and 8, Article 81 of the Land Law 2024:

• Agricultural land was abandoned continuously for 12 months, forestry land for 24 months.
• The land in the investment project is not used continuously for 12 months or the land use progress is 24 months slower than committed.

If the business does not have a legitimate reason (natural disaster, war, economic crisis…), the land will be recovered without compensation.

Procedures for land recovery for businesses

The land recovery process for businesses must comply with the steps prescribed by law. Accordingly, the land recovery process includes:

• Step 1: Competent state agencies inspect and prepare violation records or land recovery plans.
• Step 2: Notice of land recovery sent to the enterprise at least 90 days in advance (for non-agricultural land) or 180 days (for agricultural land).
• Step 3: Conduct an inventory of land and assets attached to land, and determine compensation plans, if any.
• Step 4: The competent authority issues a decision on land recovery and organizes enforcement if the enterprise does not comply.
• Step 5: Hand over the land to the State and make compensation according to the approved plan.

Land recovery must ensure proper procedures to avoid causing unnecessary damage to businesses.

CSPL: Article 85 and Article 89 Land Law 2024.

How is compensation when the State recovers land from enterprises?

Regulations on compensation cases when land recovery:

According to the provisions of Clause 2, Article 95 of the Land Law 2024, businesses have land recovered can be compensated if they meet the following conditions:

• There is a land use right certificate or equivalent document.
• There is a decision to allocate land, lease land or change land use purpose.
• There are documents eligible for issuance of certificates according to Article 137 of the Land Law.
• Receive legal land use rights transfer but not yet registered.
• Have a mortgage contract or document confirming that the winning auction has fulfilled financial obligations.

However, there are still cases where land compensation is not provided when the State recovers land, as stipulated in Article 101 of the Land Law 2024, including:

• Cases specified in Clause 1, Article 107 of the Land Law.
• Land is managed by State agencies and organizations according to Article 217 of the Land Law.
• Land is recovered according to the provisions of Article 81, Clauses 1 and 2, Article 82 of the Land Law.
• In case of not meeting the conditions for issuance of a Certificate of land use rights and ownership of assets attached to land, except for the cases specified in Clause 3, Article 96 of the Land Law.

Regulations on compensation methods when recovering land:

According to Article 91 of the Land Law 2024, businesses that have land recovered can be compensated if they meet the conditions of legal land use rights. The level of compensation depends on the type of land, purpose of use, remaining term and value of assets on the land. Compensation cases include:

• Monetary compensation: Applicable when the recovered land has a legal certificate of use rights. Compensation value is calculated according to the land price frame prescribed by the State.
• Compensation with other land: Enterprises can be allocated other land of equivalent value if the State has a land fund.
• Resettlement support or financial support: Applicable to businesses whose land is recovered to serve infrastructure development projects.

In case land is recovered due to violations or misuse, the enterprise will not be compensated.

Consulting services on land recovery cases for businesses at Long Phan Consulting Company

Long Phan Consulting Company supports businesses in issues related to land acquisition, including:

• Consulting on conditions, order and procedures for land recovery according to the latest regulations.
• Support businesses to complain and sue against illegal land recovery decisions.
• Representing customers in working with competent authorities.
• Consulting on reasonable compensation plans to ensure the interests of the business.

With a team of experts in the field of land and businesses, Long Phan Consulting Company is committed to bringing the most optimal solutions to customers. In addition, we will base on your needs and each specific case to come up with the most optimal and effective solution.

Some frequently asked questions about cases where businesses have land recovered

To give you a clearer perspective on this issue, we provide some common questions about businesses have land recovered:

Please give more examples of “socio-economic development projects for national and public benefits” for which the State can recover land from enterprises?

In addition to the above mentioned projects, these projects may include the construction of new urban areas, model rural residential areas, industrial clusters, concentrated production areas, waste treatment works, parks, squares, monuments, resettlement projects, licensed mineral mining areas… according to approved planning and land use plans.

How to determine if an enterprise “uses land for improper purposes” leading to confiscation?

This is determined based on the land allocation decision, land lease, land use right certificate or approved detailed planning. If an enterprise uses land for another purpose (for example, agricultural land used to build factories) without permission to change the purpose and has been sanctioned for administrative violations but repeats the violations, it may be revoked.

What is considered a “legitimate reason” for delay in putting land into use or delay in project progress?

The Land Law 2024 and guiding documents stipulate force majeure cases or objective obstacles such as natural disasters, enemy sabotage, and dangerous epidemics; or due to changes in state policies and planning that directly affect the project; or due to temporary suspension to adjust planning at the request of a competent state agency… Enterprises must prove and be approved by the competent agency.

Do businesses have the right to negotiate compensation when land is recovered?

Enterprises have the right to participate in the process of formulating and appraising compensation, support and resettlement plans; give opinions and recommendations on compensation levels and support policies. However, the final decision on compensation plans falls under the authority of state agencies, based on the policy framework and specific land prices prescribed by the State. Enterprises have the right to complain if they do not agree.

If land is confiscated due to law violations (no land compensation), how will the business’s assets on land be handled?

In this case, the enterprise will not be compensated for the land, but the remaining value of legal assets attached to the land (created according to regulations before the time of violation) can be considered for compensation or support according to specific provisions of law and recovery decisions. Enterprises may also be required to dismantle and relocate assets within a certain period of time.

What specific rights do businesses have during the process of the State implementing land recovery procedures?

Enterprises have the right to receive land recovery notices before the prescribed deadline; participate in the process of inventorying land and assets; have access to and provide information on compensation, support and resettlement plans; to express opinions and dialogue with planning agencies; and has the right to complain or sue against land recovery decisions or decisions approving compensation plans if they think they are not in accordance with the law.

After the decision to recover land, how much time does the enterprise have to hand over the premises?

The land handover deadline is stated in the land recovery decision and the decision approving the compensation, support and resettlement plan. If the enterprise does not voluntarily hand over, the competent state agency will issue a decision on enforcement and organize enforcement according to regulations.

Where and according to what procedures can businesses complain or sue against land recovery decisions?

Enterprises can file a first-time complaint with the state agency that issued the land recovery decision or initiate an administrative lawsuit at the competent People’s Court according to the provisions of the Law on Administrative Procedure. If you do not agree with the results of resolving the first complaint, you can make a second complaint to the immediate superior agency or sue in court.

Conclude

Land recovery for businesses must comply with legal regulations and ensure the rights of relevant parties. For detailed advice on each specific case, please contact Long Phan Consulting Company via the hotline 0906735386. Our team of experts is always ready to support and protect the legal rights of businesses.