On May 15, 2015, the Government passed Decree No. 68/2018/ND-CP detailing some articles and measures to implement the Law on State Compensation Liability (“Decree 68”) which has been effective since July 1, 2018.

This recent compensatory mechanism has many significant modifications, such as expanding the entities eligible for compensation, compensation cases, period of prescription for lodging compensation claims, etc. in favor of the sufferers. This Decree applies to Individuals and organizations suffering from material damage and mental suffering caused by law enforcers and other organizations and individuals regarding state compensation.

Decree 68, which consists of 6 chapters and 37 articles, stipulates in detail the contents of the Law on State Compensation Liability 2017 (“SCL 2017”), particularly, provisions on determination of damage caused by infringement of property; period of prescription for lodging compensation claims; determination of extraordinary expenditures to be compensated procedures for settlement of claims; responsibility for reimbursement; responsibility for, and the implementation of state compensation.

Some highlights of Decree 68 are as follows:

  1. Regarding damages caused by infringement of property

Determination of the amount of loss and damage always been a problem for the competent authorities due to the fluctuation of the market price, particularly, different markets such as urban and rural areas have different market prices. Decree 68 stipulates the determination of market prices of damaged assets which have the same or similar properties, standards, techniques, effects and quality in the market.

The concept of “market” as the basis for determining the “market price” is the district-level market where the actual damages arise. In cases where the district-level market of the place of actual damage has no property of the same type or the same technical and performance criteria and quality, the “market” shall be the nearest district-level market.

  1. Regarding the period of time to determine the damage

Such duration shall be calculated from the date on which the actual damage arises until the date on which the damage is terminated. In case the damage is not terminated at the time when the compensation cases is handled, the duration for termination of the damage shall be calculated up to the time when the compensation cases is handled.

  1. Regarding the determination of extraordinary expenditures to be compensated

In the past few years, there have been many cases where sufferers claimed extraordinary expenditures such as expenses of accommodation, transportation, etc. during the compensation process. However, such expenses were not types of compensation intended under the previous Law on State Compensation Liability 2009. The issue of determining the compensation for extraordinary expenditures has been neglected for many years.

To overcome this legal gap, SCL 2017 supplements this content, accordingly, the Decree specifies clearly the determination of extraordinary expenditures to be compensated. In particular, extraordinary expenditures to be compensated include expenditures on rental of rooms, travel, printing, sending of complaints or denunciation; hire of defenders or protectors of rights and legitimate interests of sufferer; on relatives’ travel to visit detainees, prisoners. Such extraordinary expenditures will be calculated specifically for the whole compensation claim process.

  1. Regarding the restoration of honor

In Decree 68, provisions for honor restoration are stipulated specifically in four articles.  The restoration of honor of a sufferer in criminal procedures shall be conducted in the two forms, including (i) directly apologizing and publicly; and (ii) publishing a public apology and making public rectification. The Decree specifies the main contents of the written notice on the State’s restoration of honor to the sufferers. In addition, the Decree regulates the deadline for the sufferers to give their opinions and the legal consequences of not responding to the honor restoration notice.

Besides, the Decree specifies the main contents of the written apology and public rectification, also the composition and procedures for the directly and publicly apologizing. Notably, public postings for public apology and making public rectification must be posted in a prominent place on the main page of the newspaper.


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