100 Real Estate Projects in Ho Chi Minh City Awaiting Land Use Fee Payments

The Ho Chi Minh City Real Estate Association (HoREA) has submitted a proposal to the National Assembly, offering feedback on the draft Resolution outlining mechanisms to address challenges in implementing the Land Law for businesses in the city.

Mr. Le Hoang Chau, Chairman of HoREA, stated that in the urgent document No. 148/2025 sent to the Standing Committee of the National Assembly, HoREA proposed amendments to the draft Resolution. These amendments aim to introduce mechanisms and policies to resolve difficulties and obstacles in the implementation of the Land Law. HoREA advocates for the addition of a provision exempting businesses without fault from paying additional land use fees, thereby removing legal barriers for hundreds of projects currently stalled in the city.

According to HoREA, Article 257, Clause 2(d) of the 2024 Land Law poses a risk by requiring additional payments for delays in land value calculations without clearly defining the responsibility of businesses.

Delays in issuing land price decisions or adjusting planning are primarily due to administrative procedures and the authority of state agencies, which are beyond the control and authority of businesses. Therefore, requiring businesses to pay additional land use fees for these periods is unreasonable.

HoREA proposes adding Article 10a to the draft Resolution, stipulating that land users are considered faultless if, at the time of the land price decision, there is no official document from a competent authority determining their fault. In such cases, businesses should be exempt from paying the additional fee.

HoREA also suggests a mechanism allowing provincial People’s Committees to deduct any additional payments already made by businesses from other financial obligations if it is later determined that the businesses were not at fault.

According to HoREA’s statistics, there are about 100 real estate and commercial housing projects in Ho Chi Minh City awaiting land use fee and additional payment notifications. For instance, Novaland has 13 projects, Hung Thinh Land has 8 projects, and the Observation Tower (Empire City) project by King City Company (a collaboration between Tien Phuoc Company, Tran Thai Company, Keppel Land, and Gaw Capital Partners), among others.

HoREA believes that applying this regulation will impose a financial burden on businesses. The Ho Chi Minh City People’s Committee has also stated that it will petition the Government to remove both the additional payment and late payment penalties to maintain investor confidence.

HoREA further proposes adding a mechanism to exclude fault and deduct already paid amounts to prevent businesses from being wrongfully penalized, thereby fostering a more transparent and stable investment environment.

Previously, under Decree 291 issued by the Government, which amends certain provisions of Decree 103 on land use fees and land rent—effective from November 6—the additional land use fee is set at 3.6% per year on the payable land use fee, instead of the previously proposed 5.4%.

The calculation period for the additional fee is determined from the time the financial obligation arises until the 8th working day after the land price decision is issued. Decree 291 also allows for the recalculation of additional fees previously paid under Decree 103.