Circular No. 116/2004/TT-BTC guiding the implementation of Government Decree No. 197/2004/NĐ-CP dated December 3, 2004 on compensation, support, and resettlement when the State expropriates land.

CIRCULAR

Guidelines for Implementing Decree No. 197/2004/NĐ-CP

dated December 3, 2004 of the Government on Compensation, Support, and Resettlement when the State Recovers Land

The Ministry of Finance provides guidelines on compensation, support, and resettlement when the State recovers land as follows:

Based on the Land Law dated November 26, 2003;

WHEREAS, Decree No. 181/2004/NĐ-CP dated October 29, 2004 of the Government on the implementation of the Land Law;

Pursuant to Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when the State reclaims land;

These guidelines provide instructions on certain aspects of land compensation, asset compensation, support policies, resettlement arrangements, and the implementation of compensation, support, and resettlement when the State recovers land for cases specified in Decree No. 197/2004/NĐ-CP of the Government dated December 3, 2004 on Compensation, Support, and Resettlement when the State Recovers Land (hereinafter referred to collectively as Decree No. 197/2004/NĐ-CP).

Part I
GENERAL PROVISIONS

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

Article 2 of Decree No. 197/2004/NĐ-CP stipulates the scope of application; it is detailed as follows:

Organizations, community groups, religious institutions; households, individuals within the country, overseas Vietnamese, foreign organizations, and individuals currently using land that will be recovered by the State (hereinafter referred to collectively as persons whose land is being recovered) who meet the conditions for land and asset compensation shall be compensated according to regulations; if they lose their place of residence after the recovery of land, they shall be resettled.

Compensation and resettlement shall not be provided to:

a) Persons leasing or borrowing land from those whose land is being recovered;

b) Persons receiving joint venture or cooperative investment contributions but have not transferred land use rights or ownership of assets to the joint venture or cooperative organization;

c) Other entities not granted land or leased land by the State.

The handling of compensation and support funds (if applicable) between the lawful land user and the owner of assets on the land being recovered, who are lessees, borrowers, or joint venture or cooperative contributors, shall be resolved according to civil relations and economic contracts already signed.

Article 3 of Decree No. 197/2004/NĐ-CP stipulates compensation, support, and resettlement; it is detailed as follows:

3.1. In cases where the State recovers land for purposes specified in Clause 1 of Article 1 of Decree No. 197/2004/NĐ-CP, the State must organize the implementation of compensation, support, and resettlement.

3.2. Individuals or entities granted land by the State for use in purposes specified in Clause 1 of Article 1 of Decree No. 197/2004/NĐ-CP have the obligation to pay compensation, support, and resettlement costs. Foreign organizations and overseas Vietnamese investing in Vietnam and granted land with payment of land use fees or lease fees are exempt from compensation, support, and resettlement costs.

If individuals or entities granted land with payment of land use fees or lease fees must pay compensation, support, and resettlement costs to those whose land is being recovered, these costs can be deducted from the land use fees or lease fees payable. Specific deduction amounts are regulated by the Government's Decree on Land Use Fee Collection and the Government's Decree on Land Lease Fee Collection.

Article 4 of Decree No. 197/2004/NĐ-CP stipulates resettlement; it is implemented only in the following cases:

4.1. Households or individuals who must move their residences due to the recovery of all residential land or the remaining area after recovery is lower than the new residential land allocation limit at the local level (except in cases where households or individuals do not require resettlement). 4.2. The remaining area after recovery is not suitable for household or individual housing construction planning.

4.3. Households or individuals using residential land within the safety zone of public works with protective safety zones and requiring relocation.

4.4. Other cases decided by the Chairman of the People's Committee of the province or centrally governed city (hereinafter referred to collectively as the provincial-level People's Committee) in accordance with current land laws and local realities.

COMPENSATION AND SUPPORT FOR LAND

Article 6 of Decree No. 197/2004/NĐ-CP stipulates the principles of compensation; some clauses of this article are detailed as follows:

Part II
1.1. Clause 2 stipulates that persons whose land is being recovered shall be compensated by the provision of new land with the same purpose of use; if there is no land available for compensation, they shall be compensated by the value of land use rights at the time of the recovery decision; specific cases include:

a) Persons using agricultural land as prescribed by law but arbitrarily converting it to non-agricultural use shall only be compensated based on agricultural land;b) Persons using non-agricultural land (excluding residential land) as prescribed by law but arbitrarily converting it to residential use shall only be compensated based on non-agricultural land (excluding residential land).

Compensation shall be carried out by providing new land with the same purpose of use; if there is no land available for compensation, it shall be compensated by providing housing or money, as appropriate to local circumstances.

1.2. Clause 3 stipulates that in cases where land users are entitled to compensation when the State recovers land but have not fulfilled their financial obligations regarding land as required by law, the amount to be deducted from the compensation and support funds to repay the budget shall be the amount of financial obligations owed. Financial obligations include: land use fees payable, land lease fees for land leased by the State, income tax from the transfer of other land parcels of the person whose land is being recovered (if applicable), fines for violations of land laws, compensation to the State for losses caused by improper management and use of land, and fees and charges for land management and use.

If the total amount of financial obligations regarding land exceeds or equals the amount of land compensation, the maximum amount to be deducted shall be equal to the amount of land compensation.

The area of land to be compensated is determined based on actual measurements of the area recovered from each land user.

Article 8 of Decree No. 197/2004/NĐ-CP stipulates the conditions for entitlement to land compensation; some clauses of this article are detailed as follows:

Where the amount of financial obligations regarding land to be paid is greater than or equal to the land compensation payment, the maximum amount to be deducted shall be equal to the land compensation payment.

1.3. The area of land for compensation is the area determined on-site - actually measured area of land to be recovered from each land user.

2. Conditions for being entitled to land compensation as stipulated in Article 8 of Decree No. 197/2004/NĐ-CP; some clauses of this provision are specifically guided as follows:

2.1. Clause 2 provides that the decision on land allocation by the competent state agency in accordance with the laws on land means that the agency allocating the land must be consistent with the provisions of the land laws at the time of the decision.

2.2. Some types of documents specified in Clause 3 are detailed as follows:

a) Point a stipulates documents regarding the right to use land before October 15, 1993, issued by the competent authority during the implementation of the land policy of the Democratic Republic of Vietnam, the Provisional Revolutionary Government of the Republic of South Vietnam, and the Socialist Republic of Vietnam, which shall be implemented according to the guidance of the Ministry of Natural Resources and Environment;

b) Point c stipulates legal documents concerning inheritance, gift of the right to use land or property attached to the land, and documents transferring benevolent houses attached to the land, including:

- Inheritance documents in accordance with the law;

- Gift documents for real estate with notarization or confirmation by the People's Committee of the commune at the time of the gift;

- Documents transferring benevolent houses attached to the land issued by the organization or entity transferring the house and confirmed by the People's Committee of the commune;

c) Point d stipulates documents concerning the liquidation, valuation, and purchase of residential houses and land attached to them in accordance with the law, as follows:

- The residential house must have documents on the liquidation, valuation, and purchase of residential houses and land attached to them, and it must belong to the state;

- State-owned residential houses include: houses taken over from the previous regime, ownerless houses, vacant houses that have been established as state-owned; houses created through state budget investment; houses created using funds originating from the state budget; houses created through a method where the state and the people jointly contribute; other state-owned houses;

- Documents on the liquidation, valuation, and purchase of state-owned residential houses and land attached to them before July 5, 1994;

- Purchase documents for state-owned residential houses sold by administrative units, military forces, state organizations, state enterprises, and housing management organizations in accordance with Decree No. 61/CP dated July 5, 1994 of the Government on the sale and trading of residential houses.

2.3. Clause 6 provides that households and individuals currently using land without the documents specified in Clauses 1, 2, and 3 of Article 8 of Decree No. 197/2004/NĐ-CP but who have been using the land stably before October 15, 1993, regardless of whether they were users before or after October 15, 1993, now have their land recognized by the People's Committee of the commune as non-disputed land eligible for compensation when the state recovers it.

3. The land price for compensation and the costs invested in remaining land are stipulated in Article 9 of Decree No. 197/2004/NĐ-CPb) Persons using non-agricultural land (excluding residential land) as prescribed by law but arbitrarily converting it to residential use shall only be compensated based on non-agricultural land (excluding residential land).

3.1. Clause 1 stipulates that the land price for compensation must be the price of land with the same purpose of use as the land being recovered at the time of the recovery decision published annually on January 1st by the Provincial People's Committee in accordance with the Government's regulations; compensation will not be provided based on the price of land intended for a different purpose after recovery, nor will it be provided based on the price of land used in a manner inconsistent with its designated purpose under the law.

3.2. Clause 3 stipulates reasonable costs invested in remaining land as actual expenses incurred by the land user to invest in the land for permitted use purposes up until the time of state land recovery. These costs must be fully documented and substantiated. The costs invested in remaining land are determined by subtracting the amount corresponding to the time already used from the total reasonable costs calculated in monetary terms. Costs invested in remaining land include:

- Land use fees for unused periods in cases of land allocation with a term, prepaid land rental fees for unused periods (with payment receipts);

- Expenses for leveling the ground and improving the land according to its condition when allocated or rented, and consistent with the land's designated use. If agricultural land or residential land has been compensated according to the price of agricultural or residential land, then leveling and improvement costs will not be compensated;

- Other related expenses.

The Provincial People's Committee shall determine the method of calculating the costs invested in remaining land based on the proposal of the Department of Finance, in line with local realities. Expenses lacking documentation, evidence, and substantiation will not be compensated.

4. Compensation and support for agricultural land of households and individuals are stipulated in Article 10 of Decree No. 197/2004/NĐ-CP; some contents of this provision are detailed as follows:

4.1. Agricultural land specified in Article 10 includes: annual crop land (rice fields, grasslands for livestock breeding, other annual crops); perennial crop land; forestry land (productive forest land; protective forest land; special-use forest land); aquaculture land; salt production land; other agricultural land as specified in Clause 4 of Article 6 of Decree No. 181/2004/NĐ-CP dated October 29, 2004 of the Government (hereinafter referred to as Decree No. 181/2004/NĐ-CP).

4.2. Clause 1 and Clause 3 provide that in cases of compensation by allocating new land with the same purpose of use, depending on the actual land fund in the locality, the area of new land allocated to each household shall not exceed the area of land recovered and shall not exceed the limit of agricultural land allocation in the locality. If there is no land available for compensation, then compensation shall be made in cash based on the price of agricultural land of the same category in the locality.

a) In cases where compensation is made by allocating new land with a lower land price than the land being recovered, in addition to receiving new land, the person whose land is being recovered shall also receive compensation in cash for the difference in value; if the area recovered is larger than the area of new land allocated, then compensation in cash shall be provided for the excess area (larger).

b) In cases where compensation is provided through the transfer of new land with a higher land price than the land being expropriated, the compensation shall be given by transferring new land corresponding to the value of the land use right of the expropriated land and consistent with the actual land fund of the locality.

4.3. Clause 2 provides for compensation for agricultural land intermixed within residential areas and garden ponds adjacent to residential land within residential areas, in addition to compensation based on the price of similar agricultural land, such land also receives support in cash. The calculation of the support price ranges from 20% to 50% of the price of adjacent residential land; specific guidance is as follows:

- Agricultural land intermixed within residential areas must be plots located within residential areas;

- Garden ponds adjacent to residential land within residential areas are plots that have at least one side bordering residential land within residential areas;

- The specific level of support ranges from 20% to 50%, decided by the Provincial People's Committee based on the proposal of the Department of Finance, with the participation of relevant sectors, to suit local conditions.

4.4. Clause 5 provides for compensation when expropriating agricultural land leased by households and individuals from state-owned farms and forestry enterprises; specific guidance is as follows:

Households and individuals directly engaged in agricultural production and whose main source of livelihood comes from agricultural production must be recognized as farmers. When the State expropriates their land, they will not receive land compensation, but will receive compensation for investment costs in remaining land and support.

4.5. For forestry land planned for production forests and business operations, which has been assigned by the State to households and individuals for long-term stable use, when the State expropriates such land, compensation for land will be provided. If the land has not yet been assigned for long-term stable use, when the State expropriates it, compensation for land will not be provided, but compensation for investment costs in the land will be provided.

In the case of forestry land planned for protective forests and special-use forests, which belongs to protective forests and special-use forests managed by state-owned farms, forestry enterprises, People's Committees at all levels, or Forest Protection Boards, if these farms, enterprises, People's Committees at all levels, or Forest Protection Boards lease such land to organizations, households, and individuals for forest regeneration, care, protection, or planting forests using state budget funds according to lease contracts, then when the State expropriates the land, households and individuals will not receive compensation for land, but will receive compensation for crops on the land. The level of compensation is equivalent to the share of products distributed according to Circular No. 80/2003/TTLT/BNN-BTC dated September 3, 2003, jointly issued by the Ministry of Finance and the Ministry of Agriculture and Rural Development, guiding the implementation of Decision No. 178/2001/QĐ-TTg dated November 12, 2001 of the Prime Minister regarding the rights and obligations of households and individuals granted, leased, or contracted forests and forestry land.

5. Compensation for non-agricultural land, specifically residential land, as stipulated in Article 13 of Decree No. 197/2004/NĐ-CP, is specifically guided as follows:

5.1. Residential land is determined according to the provisions of Articles 50, 83, 84, and 87 of the Land Law 2003 and Articles 45, 46, 47, 48, 79, and 80 of Decree No. 181/2004/NĐ-CP; when the State expropriates such land, compensation is calculated in monetary terms based on the price of residential land.

The determination of residential land for compensation as residential land when the State expropriates it is carried out according to the guidelines of the natural resources and environment authority.

5.2. If the person whose residential land is expropriated needs to relocate, they may receive compensation through the transfer of new residential land, resettlement housing, or monetary compensation based on the value of the land use right at the time of the expropriation decision.

6. Handling specific cases concerning residential land as stipulated in Article 14 of Decree No. 197/2004/NĐ-CP; is specifically guided as follows:

If the person whose land is expropriated requests the State to expropriate the remaining area as directed in Section 4, Part I of this Circular, this area will be compensated according to the provisions of Decree No. 197/2004/NĐ-CP and the guidance in this Circular.

In cases where households and individuals whose residential land is expropriated do not meet the conditions for compensation and, after expropriation, have no other place to live, the Provincial People's Committee will consider assigning new residential land to rural households and individuals; considering assigning new residential land, allowing purchase of houses, or renting houses for urban households and individuals, in accordance with local conditions.

7. Regarding compensation for residential land for those currently co-using land as stipulated in Clause 2 of Article 15 of Decree No. 197/2004/NĐ-CP, is specifically guided as follows:

When the State expropriates land and the land documents do not specify the area of land under the exclusive use of each organization, household, or individual, the Provincial People's Committee will guide the acceptance and distribution of land compensation money to ensure that the person entitled to compensation directly receives the compensation money and the total amount of compensation for each organization, household, or individual co-using the land equals the total compensation for the entire co-used land area.

8. Compensation for land within the safety zone during construction of projects with protective safety zones as stipulated in Clause 2 of Article 16 of Decree No. 197/2004/NĐ-CP; is specifically guided as follows:

8.1. In cases where the purpose of land use changes:

a) Changing the purpose of land use from residential land to non-agricultural land (not residential land) or from residential land to agricultural land, compensation will be provided based on the difference between the price of residential land and the price of non-agricultural land (not residential land), or between the price of residential land and the price of agricultural land;

b) Changing the purpose of land use from non-agricultural land (not residential land) to agricultural land, compensation will be provided based on the difference between the price of non-agricultural land (not residential land) and the price of agricultural land.

8.2. In cases where there is no change in the purpose of land use (residential buildings or structures that can exist within the safety zone of the project), but the usability is restricted, compensation will be provided in cash based on the actual loss. The level of compensation is the restricted land area multiplied by the difference in land prices before and after the expropriation decision. The specific level is decided by the Provincial People's Committee to suit local conditions.

8.3. When the safety protection corridor of the construction project occupies more than 70% of the land area with residential buildings or constructions belonging to one land user, the remaining land area shall also be compensated according to the provisions of points 8.1 and 8.2 of this section.

9. Handling cases where organizations have their land reclaimed but are not entitled to compensation as stipulated in Article 17 of Decree No. 197/2004/NĐ-CP., is specifically guided as follows:

9.1. Organizations that are state administrative agencies, public service units, state-owned enterprises which have been allocated land or leased land without having to pay for land use rights fees or have paid such fees from state budget funds, when the State reclaims the land, they shall not be entitled to compensation but only be compensated for the remaining investment costs in the land according to the guidance provided in point 3.2 of Section 3 of this Part (if such investments were not funded from the state budget). In cases where relocation to a new site is required, they shall be supported financially to implement approved investment projects; the maximum support amount shall not exceed the compensation for the reclaimed land paid by the entity to which the land was allocated or leased by the State.

The organization whose land is reclaimed may use this money to invest at the new site according to the project already approved by the competent authority. If this amount is not fully utilized for the investment at the new site, the remaining amount must be deposited into the state budget in accordance with the provisions of the State Budget Law.

9.2. Organizations not falling under the category specified in point 9.1 of this section shall be supported for relocation according to the planning guidelines prescribed by the Prime Minister.

Part III
COMPENSATION AND SUPPORT FOR ASSETS

1. Principles of asset compensation as stipulated in Article 18 of Decree No. 197/2004/NĐ-CP.b) Persons using non-agricultural land (excluding residential land) as prescribed by law but arbitrarily converting it to residential use shall only be compensated based on non-agricultural land (excluding residential land).

1.1. Clause 1 defines assets attached to land as including: individual buildings; buildings constructed in a single compound (hereinafter referred to collectively as buildings), crops on land.

1.2. Clause 5 provides that assets attached to land created after the decision to reclaim the land has been announced shall not be compensated, including crops on land.

2. Compensation for buildings and structures on land as stipulated in Article 19 of Decree No. 197/2004/NĐ-CP.b) Persons using non-agricultural land (excluding residential land) as prescribed by law but arbitrarily converting it to residential use shall only be compensated based on non-agricultural land (excluding residential land).

2.1. Clause 2 applies to other assets that are buildings or structures (excluding those defined in clause 1); it is guided as follows:

a) Demolishing buildings or structures affecting other constructions, which cannot be used as originally designed or planned, or require demolition, shall be compensated.

b) Determining the percentage of remaining quality of damaged buildings or structures shall be carried out by the agency responsible for compensation, support, and resettlement, with the participation of relevant specialized agencies. The percentage of remaining quality of buildings or structures shall be determined according to the guidelines of the Ministry of Construction and related ministries and sectors.

c) For infrastructure technical works that are no longer usable or actually unused, when the State reclaims the land, they shall not be compensated.

2.2. Clause 3 is guided as follows:

For buildings or structures partially demolished, where the remaining part is no longer usable, or where demolition affects other buildings or structures within the same compound, making them unusable as originally designed or planned, full compensation for the entire structure shall be provided according to Article 19 of Decree No. 197/2004/NĐ-CP and the guidance in this Circular.

3. Handling specific cases of compensation and support for buildings and structures as stipulated in Article 20 of Decree No. 197/2004/NĐ-CP. some clauses of this provision are specifically guided as follows:

3.1. Clause 1 applies to other buildings or structures permitted to be built on land that meet the conditions for compensation, which shall be compensated according to Article 19 of Decree No. 197/2004/NĐ-CP and the guidance in this Circular.

3.2. Point a of Clause 2 applies to other buildings or structures not permitted to be built but constructed on land meeting the conditions for land compensation according to Article 8 of Decree No. 197/2004/NĐ-CP, constructed before July 1, 2004, shall be compensated according to Article 19 of Decree No. 197/2004/NĐ-CP and the guidance in Section 2 of this Part; if constructed from July 1, 2004 onwards and not in compliance with the designated land use purpose as prescribed by law, they shall not be compensated. In special cases, the provincial People's Committee shall consider supporting each case appropriately based on local circumstances.

4. Compensation for buildings and structures for individuals currently using state-owned housing as stipulated in Article 21 of Decree No. 197/2004/NĐ-CP., is specifically guided as follows:

4.1. Clause 1 defines the area of state-owned housing self-improved, repaired, or upgraded as lawful when permitted by the authority issuing the housing allocation decision or the state-owned land management agency at the locality.

4.2. Clause 2 applies to individuals currently using state-owned housing that are demolished and are entitled to rent housing at the resettlement site. In special cases, if there is no resettlement housing available, individuals using state-owned housing shall be supported financially to arrange new accommodation; the financial support shall be 60% of the value of the land and 60% of the value of the rented house. If there is resettlement housing available but the individual does not rent it, they shall not receive financial support.

5. Compensation for crops and livestock as stipulated in Article 24 of Decree No. 197/2004/NĐ-CP. some clauses of this provision are specifically guided as follows:

5.1. Clause 1 specifies the compensation level for annual crops as the value of the harvest yield of one crop cycle, calculated based on the highest productivity of the main crop in the three consecutive years prior to the land reclamation, at the average market price of similar agricultural products in the locality at the time of land reclamation.

5.2. Clause 2 provides for compensation for perennial crops; perennial crops include industrial trees, fruit trees, timber trees, leaf trees, and forest trees as defined in Clause 1 of Article 2 of Decree No. 74/CP dated October 25, 1993 of the Government detailing the implementation of the Law on Land Tax for Agricultural Land. When the State reclaims the land, compensation shall be based on the current value of the orchard, excluding the value of the land use right. The current value of perennial orchards for compensation purposes shall be determined as follows:

a) For plants that are in the investment cycle or during the basic construction period, the current value of the orchard is the total initial investment cost and the care costs up to the time of land recovery calculated at the prevailing market price in the locality;

b) For perennial plants harvested once (timber trees) that are in the harvest period, the current value of the orchard for compensation is equal to the quantity of each type of plant multiplied by the selling price per tree of the same type, age, size, or with the same product yield capacity in the local market at the time of compensation minus the recoverable value (if any);

c) For perennial plants harvested multiple times (fruit trees, oil-yielding trees, resin-producing trees, etc.) that are in the harvest period, the current value of the orchard for compensation is the selling price of the orchard in the local market at the time of compensation minus the recoverable value (if any);

d) For perennial plants that have reached the liquidation period, only the felling costs for the owner of the orchard will be compensated;

The initial investment cost, care costs, and felling costs mentioned in this section shall be converted into monetary terms based on the average cost level in the locality as specified by the Provincial People's Committee for each type of plant;

5.3. For crops and secondary forest products planted on forest land allocated by the State to households and individuals for planting, encircling, protecting, and regenerating forests, where the land was vacant or barren hills when allocated, and the households and individuals invested their own capital to plant forests, they shall be compensated according to the selling price of felled forest trees at the forest gate of the same type in the locality at the time of the land recovery decision, minus the recoverable value (if any);

6. Handling of compensation money for assets belonging to the State as stipulated in Article 25 of Decree No. 197/2004/NĐ-CP;, is specifically guided as follows:

Organizations whose land is recovered by the State and suffer asset losses due to State management and use, and must relocate to a new site, shall use the asset compensation money to invest in the new site according to the approved investment project by the competent authority. The amount of asset compensation shall be paid by the entity to which the State has allocated or leased the land; if not fully utilized, the remaining amount shall be deposited into the State budget;

Part IV
SUPPORT POLICY;

1. Support for stabilizing livelihoods and production as provided for in Clause 2 of Article 28 of Decree No. 197/2004/NĐ-CP;, is specifically guided as follows:

When the State recovers land from economic organizations and production and business households registered for business operations and they cease production and business activities, they shall be supported up to a maximum of 30% of one year's post-tax income, based on the average income of the three preceding years. Post-tax income shall be determined based on the financial report approved by the tax authority; in cases where it has not been approved by the tax authority, the determination of post-tax income shall be based on the post-tax income declared by the unit in the annual financial report and business operation results report submitted to the tax authority;

2. Support for career transition and job creation as provided for in Article 29 of Decree No. 197/2004/NĐ-CP;, is specifically guided as follows:

a) Supporting the career transition of laborers within working age in households whose agricultural production land is recovered shall be implemented through partial support for vocational training costs at local vocational training centers. The specific level of support shall be decided by the Chairman of the Provincial People's Committee to suit local conditions;

b) In cases where localities cannot organize vocational training for career transition and the project proponent using the recovered land cannot organize such training, or the beneficiary does not wish to participate in the training, monetary support shall be provided; the specific level of monetary support shall be decided by the Chairman of the Provincial People's Committee to suit local conditions;

3. Support for tenants who do not own the property as provided for in Article 30 of Decree No. 197/2004/NĐ-CP;, is specifically guided as follows:

Households and individuals residing in the locality who lease non-State-owned property and must move due to State land recovery shall be supported for relocation expenses at the level specified in Article 27 of Decree No. 197/2004/NĐ-CP; the beneficiary must have a lease agreement;

4. Other support as provided for in Article 32 of Decree No. 197/2004/NĐ-CP;, is specifically guided as follows:

In addition to the support provided for in Articles 27, 28, 29, 30, and 31 of Decree No. 197/2004/NĐ-CP, based on local realities, the Chairman of the Provincial People's Committee shall decide on additional support measures to ensure the stability of livelihoods and production for those whose land is recovered. Additional support funds shall be paid by the entity to which the State has allocated or leased the land; for land recovered under planning and land use plans but without a land use project, the organization using the land fund shall bear the payment responsibility.

Part V
RELOCATION

1. Resettlement arrangement as prescribed in Article 34 of Decree No. 197/2004/NĐ-CPb) Persons using non-agricultural land (excluding residential land) as prescribed by law but arbitrarily converting it to residential use shall only be compensated based on non-agricultural land (excluding residential land).

1.1. Publicize the resettlement plan; create conditions for households to view their resettlement sites and openly discuss the proposed resettlement arrangements.

1.2. The area of new residential land allocated at the resettlement site for households and individuals shall not exceed the limit set by the locality for new residential land allocation.

1.3. The land price for payment of land use fees at the resettlement site shall be decided by the Provincial People's Committee according to the Government's regulations on methods for determining land prices and price ranges for various types of land. The sale price of resettlement houses shall be determined by the Provincial People's Committee based on construction unit prices and local realities. The rental price of houses shall be determined by the Provincial People's Committee to suit local conditions.

Households and individuals receiving land, purchasing houses, or renting houses at the resettlement site must pay land use fees, house purchase fees, and house rental fees as stipulated by law and can deduct these from compensation and support payments if there is a difference, which shall be settled according to regulations.

1.4. Organizations assigned the task of managing the resettlement area and implementing resettlement arrangements shall be responsible for collecting land use fees and house purchase fees from those being resettled.

2. Support measures for production and living conditions at the resettlement area as prescribed in Clause 1 of Article 36 of Decree No. 197/2004/NĐ-CPinclude support for seeds for the first agricultural crop, agricultural extension services, plant protection services, cultivation and livestock breeding techniques, and business operation techniques for commercial production, based on the actual situation in the locality, the Chairman of the Provincial People's Committee shall decide to provide support in cash or in-kind as appropriate.

Part VI
IMPLEMENTATION OF COMPENSATION, SUPPORT AND RESettLEMENT

1. Procedures for organizing implementation of compensation, support and resettlement

Organizations assigned the task of implementing compensation, support and resettlement must carry out the distribution of claim forms, guidance on filling out claims, collection of claim forms... of those whose land is being reclaimed to establish compensation, support and resettlement plans.

1.1. Individuals whose land is being reclaimed must declare the area, grade, type, location of the land, quantity, quality of existing assets on the reclaimed land, number of household members, number of workers..., express their resettlement preferences (if any) and submit them to the organization assigned the task of implementing compensation, support and resettlement.

1.2. Organizations assigned the task of implementing compensation, support and resettlement must check the declarations and organize inventory, measurement, and specific determination of the area of reclaimed land, damaged assets with the participation of local authorities (Commune People's Committees), confirmation by the individuals whose land is being reclaimed and whose assets are being damaged. After completing the inventory, measurement, and determination, they must publicly post the draft compensation, support and resettlement plan (draft plan) at the workplace of the organization assigned the task of implementing compensation, support and resettlement, and at the Commune People's Committee office where the land is located for the individuals whose land is being reclaimed and other related parties to participate in providing opinions; the content of the public posting includes:

a) Name and address of the individual whose land is being reclaimed;

b) Area, type, grade, location, source of the reclaimed land; quantity, volume, remaining percentage (%) of quality of damaged assets;

c) Basis for calculating compensation and support amounts such as: land price for compensation, house and construction price for compensation, number of household members, number of working-age laborers, number of people entitled to social assistance of the household, relocation registration place, etc.;

d) Specific beneficiaries of support and resettlement for each household and individual.

1.3. Organizations assigned the task of compensation, support and resettlement must incorporate feedback, answer questions, and improve the compensation, support and resettlement plan before submitting it to the District People's Committee for approval or sending it to the Department of Finance (Provincial Review Board) for review before submitting it to the Provincial People's Committee for approval (for projects reclaiming land approved by the Provincial People's Committee).

1.4. After the compensation, support and resettlement plan is approved by the competent authority, the organization assigned the task of implementing compensation, support and resettlement must publicly post the plan at its workplace and the Commune People's Committee office where the land is located, announce the compensation payment schedule and time, resettlement resolution, and land clearance implementation.

2. The compensation, support and resettlement plan is divided into two parts

Part I: Determining the level of compensation and support for each person whose land is being expropriated.
Part II: Resettlement plans, land prices for land use fee collection, house sale prices, rental prices for houses in resettlement areas; the amount of money that persons whose land is being expropriated must pay to the state budget due to non-compliance with financial obligations regarding land according to the laws on land; the amount of land use fees, money spent on purchasing resettlement houses, etc.

3. Payment of compensation, support, and resettlement.

3.1. When paying compensation to persons whose land is being expropriated and who have suffered property damage, full payment vouchers must be established and signed off by the person receiving compensation and support. In cases where the person entitled to compensation authorizes another person to receive the compensation, the person entitled to compensation must issue a power of attorney confirmed by the People's Committee of the commune where they reside.

3.2. All documents related to compensation, support, and resettlement must be retained and managed by the organization implementing compensation, support, and resettlement in accordance with current regulations.

4. Delegation of authority to approve compensation, support, and resettlement plans.

Based on local realities and the nature and scale of the project, the Provincial People's Committee delegates the authority to approve compensation, support, and resettlement plans to the District People's Committees to ensure prompt and effective implementation of compensation, support, and resettlement.

Part VII
EXPENSES FOR ORGANIZING AND IMPLEMENTING COMPENSATION, SUPPORT, AND RELOCATION

1. The budget estimate for expenses related to the implementation of compensation, support, and relocation work, established by the organization implementing compensation, support, and relocation, includes the following contents:

1.1. Expenses for propaganda and dissemination of decisions on land expropriation and compensation policies when the State expropriates land; organizing mobilization of affected parties to implement land expropriation decisions and conducting surveys and investigations on economic and social conditions, the actual status of land and assets within the scope of the project.

1.2. Expenses for inventory and assessment of actual land and asset losses including: distributing declaration forms, guiding those suffering losses to declare; measuring land area, inventorying the quantity and value of houses, structures, crops, and other assets damaged when the State expropriates land from organizations, households, and individuals; checking and comparing declarations with inventory results, determining the extent of loss for each specific expropriated party; calculating the value of losses in land, houses, structures, crops, and other assets, etc.

1.3. Expenses for establishing compensation, support, and relocation plans including: preparing compensation plans from the initial calculation of compensation indicators, approving compensation plans, publicly posting compensation, support, and relocation plans, etc.

1.4. Expenses for reviewing compensation, support, and relocation plans (if applicable).

1.5. Inspecting and guiding the implementation of compensation policies, resolving difficulties in compensation work, and organizing the payment of compensation; expenses for enforcing compensation decisions (if applicable).

1.6. Renting office space and equipment for the organization implementing compensation, support, and relocation and the review agency (if applicable).

1.7. Printing and office supplies expenses.

1.8. Other expenses directly related to organizing and implementing compensation, support, and relocation.

The total estimated budget for compensation, support, and relocation work shall not exceed the limit specified in Clause 2, Article 48 of Decree No. 197/2004/ND-CP.

2. The level of expenditure for organizing and implementing compensation, support, and relocation work is as follows:

2.1. For expenditures that have national standards and norms such as travel expenses, conference fees, measurement, inventory, determination of land and asset losses, overtime pay, etc., these should be implemented according to current regulations.

2.2. For expenditures without national standards and norms such as field investigation, survey, preparation of compensation, support, and relocation plans, review and approval of compensation plans, etc., the Provincial People's Committee will decide on specific expenditure levels suitable for each task based on actual job requirements and the characteristics of each project.

2.3. For salaries or allowances of staff participating in compensation implementation, these should be implemented according to the salary and allowance regulations in revenue-generating public institutions.

2.4. Printing costs, office supplies, fuel, logistics services, etc., are calculated based on the actual needs of each project.

2.5. If the organization implementing compensation, support, and relocation needs to rent and establish an office, it can allocate funds for office rent and equipment at the average local price.

Based on the approved budget and the actual requirements of the compensation, support, and relocation tasks to be carried out, the organization assigned to implement compensation, support, and relocation may temporarily advance cash to cover specific expenses as they arise. When spending, the organization must establish complete payment vouchers in accordance with regulations.

3. After completing the compensation, support, and relocation work, the organization implementing compensation, support, and relocation must submit a final report on the costs of organizing and implementing compensation, support, and relocation to the finance department within thirty days. The final report must reflect all the contents stipulated in this Circular and other relevant documents.

4. Funding for compensation, support, and relocation is uniformly calculated for projects within the local administrative area.

Part VIII
IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette.

This Circular replaces Circular No. 145/1998/TT-BTC dated November 4, 1998, issued by the Ministry of Finance guiding the implementation of Decree No. 22/1998/NĐ-CP dated April 24, 1998, of the Government on compensation for losses when the State recovers land for national defense, security, national interests, and public interest purposes; Joint Circular No. 106/2002/TTLT/BTC-BCN dated November 22, 2002, of the Ministry of Finance and the Ministry of Industry guiding compensation and support for constructing high-voltage power transmission lines; and Circular No. 4448/TC-QLCS dated September 4, 1999, of the Ministry of Finance regarding guidance on handling certain difficulties in land recovery and clearance work.

During the implementation of this Circular, if any difficulties arise, it is requested that the People's Committees of provinces and centrally-administered cities promptly report to the Ministry of Finance for study and resolution./.

In the course of implementing this Circular, if any issues arise, it is requested that the People's Committees of the provinces and centrally governed cities promptly report to the Ministry of Finance for study and resolution.