Highlights of Decree 91/2019 on Administrative Sanctions Relating to Land
On 19 November 2019, the Government of Vietnam promulgated Decree No.91/2019/ND-CP on Administrative Sanctions Relating to Land (“Decree 91”). Decree 91 shall replace the Decree No. 102/2014/ND-CP (“Decree 102”) on the same subject. The key differences between Decree 91 and Decree 102 will be compared hereunder.
| Decree 102 | Decree 91 | Remark | |
| Rectification measures | – | Various rectification measures including but not limited to: (i) obligation to submit the revenue illegally generated by committing violations as specified in this Decree; (ii) obligation to follow administrative procedures regarding land; (iii) obligation to return land that is used in a manner that is against regulations and law; (iv) obligation to terminate contracts for mortgage on land use rights; (v) obligation to return revenue generated from land sale, lease and sublease that are against regulations and law during remaining land use period; (vi) obligation to satisfy financial obligations relating to land; | Decree 91 provides a detailed list of rectification measures that might be implemented in case of violations relating to land. The Revoked Decree 102 did introduce various rectification measures; however, such measures had been mentioned in general terms and not as detailed as the measures provided in Decree 91. |
| Obstruction or damage to land use of other individuals
| (i) Warning or a fine ranging from VND 500,000 to VND 1 million for violations committed in rural areas; a fine ranging from VND 2 million to VND 5 million for violations committed in urban areas like intrusion of waste, hazardous substance, building materials or other articles into other person’s land lot or protrusion of these things from the violator’s land lot, which hinders the other person’s land use; (ii) A fine ranging from VND 2,000,000 to VND 10,000,000 for violations committed at rural areas; a fine ranging from VND 5,000,000 to VND 30,000,000 for violations committed at urban areas like excavation, wall erection or fence building which hinders or causes any possible loss to the other person’s land use. | (i) Placement of construction materials or other objects on land plots of other individuals or on self’s land plots causing obstruction or damage to the use of land of other individuals shall be met with a fine ranging from VND 1 million to VND 3 million; (ii) Placement of wastes or toxic substances on land plots of other individuals or self’s land plots causing obstruction or damage to the use of land of other individuals shall be met with a fine ranging from VND 3 million to VND 5 million; (iii) Digging, constructing walls or erecting fences causing obstruction or damage to the use of land of other individuals shall be met with a fine ranging from VND 5 million to VND 10 million. | In Decree 102, the fine for violations at rural areas and urban areas are different. Under Decree 91 however, the fine is regulated solely on the type of and not the place such violation. Additionally, the fine implemented in Decree 91 is lower compared to that in Decree 102. |
| Wrongful trade of land use rights in the form of dividing into parcels and selling vacant land in investment projects for construction of houses | (i) A fine ranging from VND 20 million to VND 50 million, imposed on the project covering the land size of below 1 hectare; (ii) A fine ranging from VND 50 million to VND 100 million, imposed on the project covering the land size varying from 1 hectare to below 3 hectares; (iii) A fine ranging from VND 100 million to VND 150 million, imposed on the project covering the land size varying from 3 hectares to below 5 hectares; (iv) A fine ranging from VND 100 million to VND 150 million, imposed on the project covering the land size of equal to and more than 5 hectares. | *Wrongful trade without satisfying one of the conditions under the law (i) A fine ranging from VND 20 million to VND 50 million shall be imposed if area of land traded is less than 0.5 hectare; (ii) A fine ranging from VND 50 million to VND 100 million shall be imposed if area of land traded is from 0.5 hectare to less than 1 hectare; (iii) A fine ranging from VND 100 million to VND 200 million shall be imposed if area of land traded is from 1 hectare to less than 3 hectare; (iv) A fine ranging from VND 200 million to VND 500 million shall be imposed if area of land traded is 3 hectare or more. *Wrongful trade without satisfying two or more of the conditions under the law (i)A fine ranging from VND 50 million to VND 100 million shall be imposed if area of land traded is less than 0.5 hectare; (ii)A fine ranging from VND 100 million to VND 200 million shall be imposed if area of land traded is from 0.5 hectare to less than 1 hectare; (iii)A fine ranging from VND 200 million to VND 500 million shall be imposed if area of land traded is from 1 hectare to less than 3 hectare; (iv)A fine ranging from VND 500 million to VND 1 billion shall be imposed if area of land traded is 3 hectare or more. | Decree 91 implements a higher fine compared to that of Decree 102. |
If you have any questions or require any additional information, please contact Hoang Tran of ZICO Law Vietnam (a member of ZICO Law).
This alert is for general information only and is not a substitute for legal advice.