Ministry of Construction’s Stance on Average Land Use Fee Calculation for 20% Social Housing Land Area

Specifically, voters in Hai Phong City have proposed that the Ministry of Construction review and provide guidance on the method of calculating the average land use fee (averaged across the entire project) as suggested by the city for the 20% area of social housing (NOXH). This fee should be equivalent to the aforementioned value; the timing of the land use fee calculation should align with the land price calculation for selection or the time of land allocation to the project investor. This includes infrastructure costs (as calculated).

After careful consideration, the Ministry of Construction has stated that, regarding the payment equivalent to the land value invested in technical infrastructure for NOXH construction, on October 10, 2025, the Government issued Decree No. 261/2025/NĐ-CP. This decree amends and supplements certain provisions of Decree No. 100/2024/NĐ-CP dated July 26, 2024, which details the implementation of the Housing Law concerning the development and management of NOXH. It also amends Decree No. 192/2025/NĐ-CP dated July 1, 2025, which details the implementation of certain provisions and measures of Resolution No. 201/2025/QH15 dated May 29, 2025, by the National Assembly. This resolution pilots specific mechanisms and policies for NOXH development.

According to Clause 1, Article 1 of Decree No. 261/2025/NĐ-CP:

“1. Amend and supplement Clauses 2, 3, and 4, and add Clause 2a after Clause 2 of Article 19 as follows:

“2. The amount the investor must pay, equivalent to the land value invested in technical infrastructure for NOXH construction, includes:

a) The land use fee for 20% of the residential land area of the project, determined according to land laws;

b) The amount equivalent to the cost of technical infrastructure construction, calculated as 20% of the residential land area divided by the total project land area, multiplied by the total technical infrastructure construction cost. This is based on the investment rate for technical infrastructure construction announced by the Minister of Construction at the time of land use fee calculation, as specified in point a. It excludes land reclamation costs and sea encroachment costs for projects involving sea encroachment.

2a. If the investor delays payment as specified in Clause 2, they must pay a late payment fee (or an equivalent amount) for the amount specified in Clause 2, in accordance with tax laws.

3. The amount the investor pays under Clauses 2 and 2a (if applicable)

must be deposited into the local budget and managed, used in accordance with state budget laws and the National Housing Fund regulations.

4. Once the commercial housing project investor has paid the amount equivalent to the NOXH land value invested in technical infrastructure, as specified in Clauses 2 and 2a (if applicable), they have fulfilled their NOXH obligations.”

Thus, current housing laws only stipulate the amount commercial housing project investors must pay, equivalent to the land value invested in technical infrastructure for NOXH construction.

This includes the land use fee for 20% of the project’s residential land area, determined by land laws; the equivalent cost of technical infrastructure construction, calculated as 20% of the residential land area divided by the total project land area, multiplied by the total technical infrastructure construction cost, based on the investment rate announced by the Minister of Construction; and the timing of land use fee calculation, as per land laws.