中文Yes. When the State recovers land, an organization (including a state-owned enterprise) suffering damage to assets assigned by the State for management and use, and required to relocate to a new site, may use the asset compensation to invest at the new site under an investment project approved by the competent authority — under Point c, Clause 3, Article 92 of the Land Law 2024 (No. 31/2024/QH15).
1. May an SOE use compensation money to invest when land is recovered?
Yes. Point c, Clause 3, Article 92 of the Land Law 2024 provides: when the State recovers land, an organization suffering damage to assets assigned by the State for management and use and required to relocate to a new site may use the asset compensation to invest at the new site under an investment project approved by the competent authority. Note that an organization whose land is recovered but which receives no compensation for the land (land without land use levy, or leased land funded by the state budget, etc.) is entitled to monetary support where required to relocate to a new site as decided by the competent state authority; the maximum support level does not exceed the land compensation level (Point a, Clause 3, Article 92).
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2. Who is responsible for implementing and evaluating the business and investment plans of an SOE?
Under Point a, Clause 2, Article 100 of the Law on Enterprises 2020, the Director or General Director has the right and duty to organize the implementation and evaluate the results of the state-owned enterprise’s business plans and investment plans; to organize the implementation and evaluate the implementation of resolutions and decisions of the Members’ Council, the Company Chair and the owner’s representative agency; and to prepare and submit to the Members’ Council or Company Chair quarterly and annual reports on the results of business plan targets and financial reports.
3. Standards and conditions for Directors and General Directors of SOEs
Under Article 101 of the Law on Enterprises 2020, a Director or General Director of a state-owned enterprise must: not fall into the prohibited categories under Clause 2, Article 17; have professional qualifications and business management experience or experience in the company’s business sector; have no family relationship with the head of the owner’s representative agency, members of the Members’ Council, the Company Chair, supervisors, etc.; never have been dismissed from a state-owned enterprise; not concurrently serve as Director or General Director of another enterprise; and meet other standards and conditions under the company charter.
Notes on applying current legal provisions
Decree 47/2014/ND-CP (amended by Decree 01/2017/ND-CP) and Circular 80/2017/TT-BTC have been replaced by the Land Law 2024 and Decree 88/2024/ND-CP (implementation authority now rests with the two-tier local government). The current rules on state-owned enterprises: the Law on Enterprises 2020 and Law No. 68/2025/QH15 (effective from 01/8/2025). To determine the legal basis applicable to your dossier, please contact an ANT Legal lawyer at 0966.475.966.
Common risks to note
If the investment project at the new site has not yet been approved by the competent authority, the asset compensation cannot be disbursed for its intended purpose. In addition, clearly distinguish relocation support (not exceeding the land compensation level) from asset compensation so the money is managed and used as prescribed.
How can ANT Legal help?
ANT Legal assists with advice on compensation and support procedures upon State land recovery, state-owned enterprise governance, and executive management matters.
For quick advice, you may contact a lawyer at 0966.475.966.
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