The support for stabilizing production upon land recovery by the state

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On May 15, 2014, the Government issued the Decree No. 47/2014/ND-CP on compensation, support and resettlement upon land recovery by the State, within that the most important content is the support for stabilization of livelihood and production upon land recovery by the State.

Accordingly, economic organizations, households and individuals engaged in production and business and foreign-invested enterprises are entitled to support in money for stabilizing production which does not exceed 30% of the after-tax income of one year being the average of the last three years. Upon land recovery by the State, households and individuals currently using land received through contractual allocation for use for agricultural, forestry or aquaculture purposes (excluding land for special-use forests and protection forests) from state-owned agricultural or forest farms who are members of these farms currently working or having retired, stopped working due to loss of working capacity or been laid off on allowance and are directly engaged in agricultural production and earn stable incomes from agricultural production on such land shall be entitled to support for stabilization of livelihood and production.

In particular, if between 30% and 70% of the area of agricultural land is recovered, support shall be provided for 6 months in case relocation is not required, and for 12 months in case relocation is required. The period of support may be up to 24 months in case of relocation to localities with difficult or extremely difficult socio-economic conditions. If over 70% of the area of agricultural land is recovered, support shall be provided for 12 months if relocation is not required and for 24 months if relocation is required. The period of support may be up to 36 months in case of relocation to localities with difficult or extremely difficult socio-economic conditions;

And the level of support per registered household member shall be calculated in money equivalent to 30 kilos of rice a month at the average local price at the time of support. Economic organizations, households and individuals engaged in production and business and foreign-invested enterprises are entitled to support in money for stabilizing production which does not exceed 30% of the after-tax income of one year being the average of the last three years.

This Decree takes effect on July 1, 2014 and replaces the Government’s Decree No. 197/2004/ND-CP dated December 03, 2004.