Land Recovery and Compensation in Vietnam Under the 2024 Land Law

State recovery of land is one of the most sensitive issues for any business holding land in Vietnam. A factory, warehouse or project site can, in defined circumstances, be recovered by the State for national or public purposes. Foreign-invested enterprises should understand when this can happen and what compensation and remedies apply under the 2024 Land Law (Law No. 31/2024/QH15, in force from 1 August 2024).

When can the State recover land?

The 2024 Land Law groups the grounds for land recovery into several categories, the main ones being:

• Recovery for national defence and security purposes;
• Recovery for socio-economic development in the national or public interest (for example, infrastructure, industrial zones and other listed projects);
• Recovery due to a violation of land law (such as serious misuse or failure to use land as required);
• Recovery due to termination of land use in accordance with law, voluntary return, or risk to human life.

The law sets out defined project types that qualify for recovery in the public interest, aiming to reduce the discretionary scope that existed under the 2013 regime.

Principles of compensation

Compensation, support and resettlement are governed by principles designed to place affected users in a position at least equivalent to before. Key points include:

• Compensation is generally paid based on the specific land price of the recovered land, benchmarked closer to market value under the new price tables;
• Where eligible, users may be compensated with land of the same purpose, with money, or with resettlement land or housing;
• Support measures (stabilisation of life and production, training and job change, and other support) may apply in addition to compensation;
• Compensation for assets attached to the land — buildings, works and, where applicable, crops — is assessed separately from land compensation.

An important condition is that eligible users must generally hold a land-use right certificate or qualify under the recognised categories; otherwise entitlement to land compensation may be limited, though compensation for lawful assets on the land may still apply.

Process and safeguards

Recovery follows a sequence of notice, inventory, appraisal, an approved compensation and resettlement plan, and issuance of the recovery decision. Affected parties have the right to be consulted on the plan and to have their assets inventoried. After the 2025 administrative reforms, the competent authorities operate within the two-tier local government model, with functions reassigned from the abolished district level.

Remedies: complaint and litigation

A party that disagrees with a land-recovery or compensation decision may pursue an administrative complaint or initiate an administrative lawsuit within the statutory time limits. Given the value at stake for an FIE, early legal review of the recovery decision, the compensation valuation and the resettlement plan is strongly advisable. For related land disputes, see our overview of resolving land disputes in Vietnam.

Practical takeaways for foreign investors

• Keep land-use certificates and asset records complete and current — they are the basis of compensation entitlement;
• Track any indication that your land may fall within a planned public project;
• Engage early if a recovery notice is issued — valuation and resettlement terms are often negotiable within the legal framework;
• Observe the strict time limits for complaints and lawsuits.

How LTV Law can help

LTV Law assists foreign-invested enterprises in assessing land-recovery decisions, reviewing compensation valuations and resettlement plans, and pursuing complaints or administrative litigation where appropriate. Contact us to review your situation.