The Labor Newspaper's Legal Consulting Office replied:

Article 79 of the 2013 Land Law provides for compensation for land when the State recovers residential land as follows:

1. Households and individuals currently using residential land and overseas Vietnamese who own houses associated with land use rights in Vietnam and are eligible for compensation as prescribed in Article 75 of this Law, when the State recovers land, compensation shall be as follows:

a) In case there is no other residential land or house in the commune, ward or township where the recovered land is located, compensation shall be made with residential land or houses; in case there is no need for compensation in terms of residential land or houses, the State shall compensate in cash;

b) In case there is still residential land or house in the commune, ward or township where the recovered land is located, compensation shall be made in cash. For localities with conditions on residential land funds, they shall be considered for compensation in residential land.

2. Households and individuals which have to relocate but are not eligible for compensation for residential, then the State will sell, lease out houses or allocate residential land with land use fees.

3. Economic organizations, overseas Vietnamese, and foreign-invested enterprises that are using land to implement housing construction projects when the State recovers the land, if they are eligible, compensation specified in Article 75 of this Law shall be compensated for land.

4. The Government shall detail this Article.

Thus, the above case will be compensated by the State when the residential land is recovered.