## Suggested Title: HoREA Proposes Amendments to the 2024 Land Law to Address Practical Difficulties
Proposed Amendments to the 2024 Land Law to Address Implementation Challenges
The Ho Chi Minh City Real Estate Association (HoREA) has recently submitted recommendations to the Ministry of Agriculture and Environment, suggesting the retention and addition of crucial provisions in the draft 2024 Land Law. The goal is to address practical challenges and transform land resources into a driving force for socio-economic development.
Specifically, HoREA proposes maintaining the content of Clause 26, Article 1 of the draft Law (as of July 28, 2025) regarding amendments to Point d, Clause 2, Article 257 of the 2024 Land Law. This suggestion aims to abolish the unreasonable regulation concerning “the amount of money that land users must additionally pay for the period during which land use or land rent was not calculated.”
According to HoREA, removing this proposed amendment to Point d, Clause 2, Article 257 will continue to cause difficulties for projects involving land use. In reality, there have been numerous cases where government agencies delayed issuing decisions on land use or rent charges, or supplementary decisions, resulting in significant financial burdens for businesses.
Currently, based on Point d, Clause 2, Article 257 of the 2024 Land Law, Clause 1, Article 50, and Clause 9, Article 51 of Decree 103/2024/ND-CP stipulate: “The amount of money that land users must pay additionally… is calculated at a rate of 5.4%/year on the amount of land use or rent charges.” This regulation results in a substantial additional amount, putting pressure on businesses and delaying project implementation.
For instance, Project A, which was allocated land in 1995, 30 years ago, has just been informed in 2025 that the land use charge is 100 billion VND. In addition to the obligation to pay 100 billion VND in land use charges, they must also pay an additional amount of 100 billion VND x 5.4%/year x 30 years = 162 billion VND (1.62 times the land use charge).
Illustration: Hong Khanh |
For Project B, which was allocated land in 2005, 20 years ago, and was informed in 2025 that the land use charge is 100 billion VND, they must pay an additional amount of 100 billion VND x 5.4%/year x 20 years = 108 billion VND (1.08 times the land use charge) on top of the 100 billion VND land use charge.
In the case of Project C, which was allocated land in 2015, 10 years ago, and has now been informed in 2025 that the land use charge is 100 billion VND, they must pay an additional 100 billion VND x 5.4%/year x 10 years = 54 billion VND (54% of the land use charge) in addition to the principal amount.
Recommendations to Retain Important Provisions in the 2024 Land Law
HoREA argues that not proposing amendments to Point d, Clause 2, Article 257 of the Land Law is inconsistent with Clause 2, Article 55 of the 2025 Law on the Issuance of Legal Documents.
HoREA maintains that Point d, Clause 2, Article 257 of the 2024 Land Law effectively has retroactive effect, applying to cases of land allocation and leasing since the 1993, 2003, and 2013 Land Laws. This means that land users are required to pay additional money for periods when land use or rent charges were not calculated.
HoREA asserts that this provision contradicts the 2025 Law on the Issuance of Legal Documents, which prohibits retroactive application if it results in new legal obligations or increases existing ones. Therefore, this content needs to be amended to avoid imposing unreasonable financial burdens on businesses and individuals.
Illustration: Thao Nguyen |
HoREA contends that the regulation in Point d, Clause 2, Article 257 of the 2024 Land Law regarding the collection of “additional money” for periods when land use or rent charges were not calculated has been applied to cases of land allocation and leasing since the 1993, 2003, and 2013 Land Laws—stages when the law did not stipulate such an obligation. This indicates a retroactive effect, resulting in new and more onerous legal responsibilities, which contradicts the principles of law-making.
According to Decree 103/2024, this additional amount is currently calculated at a rate of 5.4%/year on the land use or rent charges. Even though the Ministry of Finance has proposed reducing it to 3.6%/year, HoREA believes this rate is still too high and recommends lowering it to 0.5%/year. The reason for this suggestion is that the delay in issuing land price decisions or notifying financial obligations lies entirely with the managing agency and is not the fault of the enterprise. Enterprises are only subject to penalties if they fail to pay after receiving the notification.
HoREA also refutes the viewpoint of “mixed responsibility” between state agencies and enterprises because determining land prices or approving planning adjustments falls within the exclusive competence of the state. Enterprises have no influence over these matters unless there is corruption involved.
Therefore, HoREA recommends retaining Clause 62, Article 1, which proposes amending Point d, Clause 2, Article 257 of the 2024 Land Law as follows: “The Government shall stipulate the application of land pricing methods for the cases specified in Points a, b, and c of this Clause.”
Previously, Mr. Nguyen Quoc Hiep, Chairman of GP.Invest and the Vietnam Contractors Association, has repeatedly expressed that requiring enterprises to pay land use charges in such cases is unreasonable. The fault for the delay in paying land use charges does not lie with the enterprises, yet they bear the brunt of it. Despite their repeated petitions, the Ministry of Finance has not agreed. Local authorities where they operate have also acknowledged the unfairness of this collection but cannot propose changes as they are responsible for enforcing the law.
Mr. Pham Duc Toan, General Director of EZ Property, shared: “It is unreasonable, both emotionally and logically, to require enterprises to pay additional land use charges for projects before land prices are determined.”
“Some localities require enterprises to complete their land use obligations before granting construction permits. Determining land prices is the responsibility of the state. It is inappropriate to penalize enterprises for something that is not their fault,” Mr. Toan frankly stated.
Hanh Nguyen
– 11:51, August 15, 2025
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