As Vietnam moves toward achieving emerging market status by 2025, property tax has become a controversial and crucial issue. It is not merely a fiscal tool to increase state revenue, but also a mechanism to address persistent issues in the real estate market—such as speculation, unused land and property hoarding in anticipation of price hikes. Currently, notaries require that the actual transaction price be declared for tax calculation purposes, while bailiffs no longer certify transaction values as they did in the past. Instead, they issue general reports, which has become a popular—yet opaque—method of tax evasion. If this situation is seen as a small step toward establishing a fair “rule of play” in the real estate sector, then it is a step in the right direction—but only on the surface. The deeper issue lies in the large number of land lots that remain vacant for decades, yet their prices continue to rise based on broker claims rather than actual utility. Some argue that credit tightening policies, such as restricting bank loans, can help curb speculation. However, this is a misconception. The true solution lies not in restricting access to credit but in using property tax to enforce proper use of […]
To read more, please click here.
