Circular No. 91 TC/QLCS guides the compensation and support for land clearance to serve the restoration of National Highway I from Ho Chi Minh City to Nha Trang.

CIRCULAR

Guidelines for Compensation and Support for Land Acquisition to Restore National Highway I from Ho Chi Minh City to Nha Trang

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Implementing the guidance of the Prime Minister as stipulated in Circular No. 5139/KTN dated September 15, 1995 of the Government Office; based on the opinions of relevant ministries and sectors, the Ministry of Finance guides the compensation and support for land acquisition to restore National Highway I from Ho Chi Minh City to Nha Trang as follows:

I. OBJECTS AND SCOPE OF COMPENSATION AND SUPPORT

Organizations and individuals who are Vietnamese citizens directly managing and using the land, being the owners of existing assets on the land, now that the State is reclaiming the land for the purpose of restoring National Highway I from Ho Chi Minh City to Nha Trang, shall be considered for compensation for losses or support if they are organizations or individuals eligible for compensation for losses or support as prescribed in Article 2, Article 3, and Article 4 of Decree No. 90/CP dated August 17, 1994 of the Government.

The land and existing assets on the land when the State reclaims the land for the purpose of restoring National Highway I from Ho Chi Minh City to Nha Trang shall be compensated or supported within the scope:

The land and assets on the land outside the protective strip of National Highway I as prescribed in Decree No. 203-HĐBT dated December 21, 1982 of the Council of Ministers (now the Government).

II. COMPENSATION FOR DAMAGE TO LAND OR SUPPORT:

1. For legally used land outside the protective strip of National Highway I, now reclaimed for the purpose of restoring National Highway I:

Organizations and individuals using land outside the protective strip of National Highway I, which was transferred or used stably before October 15, 1993, and have the necessary conditions to obtain certificates of land use rights according to the regulations of the Government or have transfer, conversion, or inheritance documents recognized by competent authorities at all levels for specific purposes, shall be compensated by the State through the provision of equivalent land for replacement or monetary compensation according to the value of the land with the same purpose of use.

In cases not eligible for compensation, they will be supported (compensated) according to Article 9 of Decree No. 90/CP dated August 17, 1994 of the Government.

a. For agricultural and forestry land:

- Agricultural and forestry land reclaimed within the new highway construction area shall be compensated with equivalent land according to Clause 1 of Article 8 of Decree No. 90/CP dated August 17, 1994 of the Government.

- Agricultural and forestry land outside the new highway construction area, if used for construction or traffic safety, shall be compensated for crop damage but not for land. After the construction period, the National Highway I Project Management Board shall be responsible for restoring the land and returning it to each household for continued cultivation. In special cases where short-term crops cannot be planted, the land may be considered for allocation.

b. For residential land:

- If the remaining land area after reclamation still ensures sufficient living space and the household agrees to stay, they will only be compensated monetarily for the reclaimed area, not with new land.

- If the remaining land area after reclamation is insufficient for living, the People's Committee of the commune, ward, or town shall report to the district People's Committee to submit a plan to the provincial People's Committee for approval to allocate residential land to compensate each household for the reclaimed area. For urban areas, depending on local land availability, the provincial People's Committee shall decide the amount of land compensation for each household, with any shortfall to be compensated monetarily. The People's Committee of the commune shall be responsible for compiling and submitting a decision to the provincial People's Committee to recover and manage the remaining land reasonably and effectively.

- If the value of the compensatory land is lower than the value of the reclaimed land, the State shall compensate the difference in money. If the value of the compensatory land is higher than the reclaimed land, the State shall only compensate the equivalent value of the reclaimed land, and the excess land shall be supplementary land, with the recipient required to pay land use fees according to Decree No. 89/CP dated August 17, 1994 of the Government.

- If the recipient does not accept the land, they will be compensated monetarily.

c. Reclaimed land:

Reclaimed land shall be compensated with equivalent land for the same purpose of use and exempted from payment of land use fees. If the compensatory land is not for the same purpose as the reclaimed land, the compensatory land may be converted to the same purpose as the reclaimed land, and the recipient of the compensatory land shall be exempted from payment of land use fees for the conversion.

d. Land prices for calculating compensation for land damage:

According to the specific land prices for each type, grade, and location of land issued by the provincial People's Committee according to Decree No. 87/CP dated August 17, 1994 of the Government.

e. Land fund for land compensation:

According to Article 7 of Decree No. 90/CP dated August 17, 1994 of the Government.

2. For legally used land within the protective strip of National Highway I:

Based on Article 8 of Decree No. 203-HĐBT dated December 21, 1982 of the Council of Ministers (now the Government) and Section 2 of Part I of Decision No. 06-CT dated January 3, 1990 of the Chairman of the Council of Ministers (now the Prime Minister), land reclaimed within the protective strip of National Highway I shall be considered for compensation and support as follows:

- For land used or with houses and structures prior to December 21, 1982, compensation shall be made according to the actual area used for housing and other architectural structures as stipulated in Clause 1 of Section II above. The remaining land area shall be compensated according to agricultural and forestry land as stipulated in Clause 1 of Section II above.

- For land with houses and construction works built after December 21, 1982, when the State recovers the land, compensation for the land shall not be provided. Organizations, households, and individuals must move themselves and arrange new accommodation on their own. However, for households and individuals who truly have difficulties, if they have no other place to live after the recovery of their current residence, which has been confirmed by local authorities, they may be considered for allocation of new residential land with a minimum area suitable to the actual situation in the locality and must pay land use fees as prescribed in Decree No. 89/CP dated August 17, 1994.

The People's Committee of communes, wards, and towns shall be responsible for compiling and reporting to the People's Committee of the district to propose a plan to the People's Committee of the province for allocating new residential land from the land fund mentioned in Point e Clause 1 Section II above.

3/ Illegally used land:

When the State recovers such land, the user shall not be compensated for losses related to the land and property and must bear all costs for demolition and clearance of the site according to the requirements of the State as stipulated in Article 10 of Decree No. 90/CP dated August 17, 1994.

III/ COMPENSATION AND SUPPORT FOR DAMAGE TO PROPERTY ON LAND:

1/ Compensation and support for damage to houses and structures: (Including structures serving individual houses)

a/ Compensation for damage to houses and structures deemed lawful construction:

Houses and structures (hereinafter referred to as works) meeting any of the following conditions shall be considered lawful:

- Built before the issuance of Decree No. 203-HĐBT on December 21, 1982, on legal land and with a construction permit (for urban areas) or confirmation by local authorities (for rural areas), currently being used stably without disputes.

- Built after the issuance of Decree No. 203-HĐBT on December 21, 1982, on legal land outside the protection zone of National Highway I and with a construction permit (for urban areas) or confirmation by local authorities (for rural areas), currently being used stably without disputes.

a-1/ For works that are completely demolished or moved:

Works determined to be lawful shall be compensated for assets based on the current value of the demolished work. The compensation amount is calculated using the formula:

Compensation Amount = Usable Area of the Demolished Work X New Construction Cost Unit Price issued by the Provincial People's Committee according to State regulations X Remaining Quality Ratio of the Demolished Work.

In cases where the local area has not established a standard price list for new house construction, the minimum standard price list for new house construction at Appendix 1 attached to Decree No. 61/CP dated July 5, 1994, issued by the Government can be applied.

Determining the remaining quality ratio of the work shall be carried out according to Circular No. 13/LB-TT dated August 18, 1994, jointly issued by the Ministry of Construction, Ministry of Finance, and State Price Bureau.

If the residual value of the house and auxiliary structures is too low, the compensation amount is insufficient to construct a new house with equivalent technical standards, the household may be additionally compensated, but the total compensation amount shall not exceed the new construction cost according to the standard price list issued by the local authority for a house with the same technical standards.

For works that can be dismantled and moved to a new location for installation, only the costs for dismantling, transportation, installation, and material loss during dismantling, transportation, and installation shall be compensated. The maximum compensation amount shall not exceed 10% of the standard price of the work with the same technical standards issued by the Provincial People's Committee.

a-2/ For works partially cut off:

The area for calculating compensation is determined as follows:

- Works partially cut off but still safe and ensuring the continued existence of the remaining parts of the work shall be compensated based on the area of the cut-off and demolished part.

- Works partially cut off and determined to affect the safety of the work to varying degrees, the area for compensation calculation is:

+ The area of one or more units or rooms that cannot exist.

+ The entire area of the work if the whole work cannot exist.

The method of calculating the compensation amount is similar to that specified in Point a Clause 1 Section III above.

b/ Support for houses and structures not considered lawful construction within the protection zone of National Highway I:

Houses and structures constructed unlawfully within the protection zone of National Highway I, in principle, shall not be compensated, but the State may consider partial support depending on the degree and nature of legality of the land and structures on the land, specifically as follows:

b-1/ For rural areas:

Houses and structures built within the protection zone of National Highway I after December 21, 1982, and other cases without valid documents but recognized by the Commune People's Committee as having no disputes, shall be considered for support as follows:

+ Works constructed on land after December 21, 1982, to before the Land Law was issued on December 29, 1987, shall be subsidized at 70% of the compensation amount for lawful works with the same technical standards.

+ Works constructed on land used from December 30, 1987, to before the Land Law was issued on October 15, 1993, shall be subsidized at 60% of the compensation amount for lawful works with the same technical standards.

+ Works constructed on land used after October 15, 1993, shall not be compensated or subsidized, and the owner of the work must dismantle it themselves.

b-2/ For urban areas:

Based on Article 10-3c and Article 11-2d of Decree No. 60/CP dated July 5, 1994, and Circular No. 647/CV-ĐC dated May 31, 1995, of the General Department of Land Administration regarding valid land documents and Decree No. 203-HĐBT dated December 21, 1982, it is stipulated as follows:

+ Works constructed without a permit after December 21, 1982, with valid land use rights documents, but the house and residential land conform to the planning, confirmed by the Commune, Ward, or Town People's Committee as having no disputes, shall be subsidized at 60% of the compensation amount for lawful works with the same technical standards.

+ Works constructed without a construction permit on land used before October 15, 1993, without valid documents but conforming to the planning, confirmed by the Commune or Ward People's Committee as having no disputes, shall be subsidized at 50% of the compensation amount for lawful works with the same technical standards.

+ Construction works within the boundary of traffic safety protection zones that have been marked out and within planning areas announced before construction but still constructed shall not be compensated or subsidized and must be removed at the expense of the constructor.

The compensation amount for lawful construction works with the same technical standards to calculate the support level as stipulated in Point b Clause 1 Section III shall be determined according to the provisions of Point a Clause 1 Section III herein.

2/ Compensation for crops and relocation of graves, historical relics, churches, communal houses, pagodas, martyrs' cemeteries, and other assets:

Shall be carried out strictly in accordance with the provisions of Article 13 and Section 1 - Article 12 Decree No. 90/CP dated August 17, 1994 of the Government.

IV - RELOCATION SUPPORT

Each household that must relocate their residence from the area subject to land and asset compensation will receive relocation support to stabilize their living conditions at the following levels:

- Rural areas: 500,000 VND

- Areas densely populated with emerging urban centers: 630,000 VND

- Urban areas of type 5: 750,000 VND

- Urban areas of type 4: 870,000 VND

- Urban areas of type 3: 1,000,000 VND

- Urban areas of type 2: 1,120,000 VND

- Urban areas of type 1: 1,250,000 VND

Households whose currently used houses are partially cut off shall receive support to stabilize their living conditions at 50% of the level specified for households that must fully relocate.

V/ IMPLEMENTATION

The Chairmen of the People's Committees of provinces and cities from Ho Chi Minh City to Nha Trang are responsible for directing and implementing compensation in accordance with the provisions of this Circular. The examination and organization of compensation implementation shall follow the procedures stipulated in Chapter IV of Decree No. 90/CP dated August 17, 1994 of the Government.

The National Highway I Management Board is responsible for organizing direct payment to each organization, household, and individual according to the approved compensation plan by the Chairman of the Provincial People's Committee.

The Departments of Finance and Price Control of provinces and cities from Ho Chi Minh City to Nha Trang are responsible for assisting the provincial-level People's Committees in determining land prices, asset values, etc., for compensation, supervising and guiding the implementation of compensation in their respective localities. The Tax Departments of provinces and cities from Ho Chi Minh City to Nha Trang are responsible for collecting land use fees in accordance with the provisions of Decree No. 89/CP and the Circulars guiding the Ministry of Finance.

The Ministry of Finance (State Asset Management Department) is responsible for guiding and inspecting the implementation of land and asset compensation by localities and the National Highway I Management Board.

Those entitled to compensation must directly receive such compensation. Any practice of compensating through any organization and then distributing it to individual households afterwards violates Decree No. 90/CP dated August 17, 1994 of the Government and will be dealt with according to the Law.

This Circular applies to the compensation of land and assets on land due to land clearance for the construction of National Highway I from Ho Chi Minh City to Nha Trang. During the implementation process, if any issues arise, localities and grassroots units should report them to the Ministry of Finance for consideration and resolution.