Investments

Over 100 Pending Land-Use Fee Projects Await Resolution in Ho Chi Minh City

In Ho Chi Minh City, approximately 100 real estate projects are currently awaiting government announcements regarding land use fees and additional land use charges.

Administrator

5 October, 2025

On the afternoon of October 3rd, Mr. Nguyen Van Duoc, Chairman of the Ho Chi Minh City People’s Committee, along with representatives from various departments, held a meeting with the Managing Director of Lotte Properties HCMC (South Korea). During the meeting, Lotte expressed its desire to continue the Thu Thiem Eco Smart City project (in An Khanh Ward) if Ho Chi Minh City provides support and resolves investment obstacles.

Chairman Nguyen Van Duoc stated that the city acknowledges the company’s proposal and will report to the central government for appropriate handling. The city’s leadership welcomes Lotte’s continued partnership and commitment to sharing challenges and completing the project on schedule.

Following this announcement, the Ho Chi Minh City Real Estate Association (HoREA) submitted a document to the Government, requesting clarification on the legal aspects of the additional fees outlined in Decree No. 103/2024/NĐ-CP regarding land use fees and land rent.

HoREA also proposed to the National Assembly the addition of Article 11a after Article 11 in the “Draft Resolution on Mechanisms and Policies to Overcome Difficulties in Implementing the Land Law.” This addition focuses on the “additional payment required from land users for periods where land use fees or rent were not calculated,” excluding cases where the user is not at fault. This proposal addresses a legal loophole in Article 257, Clause 2(d) of the 2024 Land Law, which only applies to cases of fault, neglecting situations where businesses are not responsible.

Lotte’s project in Thu Thiem Urban Area is attracting investor attention.

According to Mr. Le Hoang Chau, Chairman of HoREA, approximately 100 real estate and commercial housing projects in Ho Chi Minh City are awaiting notifications regarding land use fees, additional land use fees (if applicable), and supplementary payments for delays. He cited examples such as 13 projects by Novaland, 8 projects by Hung Thinh Land, and the Empire City Observation Tower project by the joint venture Emperor City Limited Company.

Mr. Chau emphasized that adding the provision for “supplementary payments, excluding cases where the land user is not at fault,” will protect the legitimate rights of investors when policies change. This not only ensures fairness but also positively impacts the investment environment, particularly in attracting foreign direct investment (FDI) into the real estate sector, a crucial driver of Vietnam’s economic growth.

HoREA suggests that if the National Assembly approves, the additional payments should be deductible from other financial obligations of the enterprises to ensure fairness.

Regarding the fee rate, Clause 1 of Article 50 and Clause 9 of Article 51 in Decree 103/2024/NĐ-CP stipulate a rate of 5.4% per year on land use fees and land rent (as per Clause 2 of Article 257 of the Land Law). Mr. Chau commented that this rate is too high. The Ministry of Finance has reduced it to 3.6% per year, which will alleviate the burden on businesses.

Report and photo: Son Nhung

– 08:55 05/10/2025