HCMC – The Vietnam Chamber of Commerce and Industry (VCCI) has proposed a 30% reduction in land rental fees for businesses this year to help ease rising costs and mitigate inflation risks, reported the Vietnam News Agency.
VCCI stated that the proposed cut is reasonable, as it would provide financial relief for businesses while there would be limited impact on state budget revenue. The Ministry of Finance is currently gathering feedback before submitting the proposal to the Government.
Vietnam previously implemented similar land rent reductions from 2021 to 2024, which helped businesses recover from the economic effects of the Covid-19 pandemic. Extending this policy in 2025 would further support businesses and economic growth, VCCI emphasized.
In October 2024, the Ministry of Finance proposed a 30% land rent cut for all businesses, including those that had already benefited from previous reductions. The ministry noted that the measure was aligned with economic conditions, citing a slowdown after typhoon Yagi struck northern Vietnam in September last year.
At a Government meeting on February 5, Prime Minister Pham Minh Chinh directed ministries to explore additional tax and fee reductions for businesses and individuals. The Government is also reviewing a proposal to extend agricultural land tax exemptions until 2030 to encourage investment in farming and rural development.
With a GDP growth target of 8% for 2025, the proposed land rent cut is part of broader efforts to fuel economic growth.
