According to voters in Ho Chi Minh City, current land prices are not aligned with the living standards and income levels of residents. In reality, some households face financial difficulties when subdividing land or building homes for their children, as they cannot afford the fees to convert agricultural land into residential land.
Voters have proposed setting a reasonable conversion fee, reducing personal income tax on property transfers, and implementing exemptions or reductions for low-income families. Additionally, they suggest allowing struggling households to pay land conversion fees in installments over an extended period, helping them secure stable housing.
In response, the Ministry of Finance cited the 2024 Land Law (effective from August 1, 2024): “When converting land use purposes, land users must pay land use fees or land rent in a single payment for the entire lease term, equal to the difference between the land use fees or rent of the new land type and the previous land type.”
Regulations allow land users to defer land use fee payments when receiving land-use right certificates for the first time. Photo: Thạch Thảo |
Article 8 of Decree 103/2024 on calculating land use fees for households and individuals follows the same principles as the 2024 Land Law.
Households and individuals converting agricultural land to residential land must pay the difference between residential land fees and agricultural land fees at the time of conversion approval.
Recently, the Ministry of Finance has received feedback that some localities’ land price tables under the 2024 Land Law show a sharp increase compared to the 2013 Land Law. Specifically, residential land prices have risen significantly relative to agricultural land.
As a result, households converting agricultural land to residential land face much higher fees than before. Many suggest adjusting these fees to ease the burden on residents.
The Ministry of Finance is finalizing a draft Government Resolution to address challenges related to land use fee calculations for households converting agricultural land to residential land. This draft will be submitted to the Government for approval after review by the Ministry of Justice.
Exemptions, Reductions, and Deferral of Land Use Fees
Regarding installment payments for struggling households, the Ministry of Finance clarified that Article 22 of Decree 103/2024 (amended by Article 1, Clause 8 of Decree 291/2025) and Article 18, Clause 11(a) of Decree 101/2024 (amended by Article 3, Clause 3(a) of Decree 226/2025) allow land users to defer land use fee payments when receiving land-use right certificates for the first time, with specified procedures.
Current laws also provide exemptions and reductions for land use fees when the state allocates land, permits conversions, or issues certificates, aiming to support low-income residents and policy beneficiaries.
Specifically, Articles 18 and 19 of Decree 103/2024 exempt or reduce land use fees within residential land limits for poor households, policy beneficiaries, and those in genuine hardship. This includes full exemptions for disabled veterans, families of martyrs without primary earners, poor households, ethnic minorities, and those displaced due to life-threatening land recovery.
Exemptions and reductions also apply to households and individuals with revolutionary merit, as defined by laws on beneficiary rights.
By Nguyễn Lê
– 13:00 30/11/2025
Proposed Abolition of Market-Based Land Valuation Starting 2026
“Implementing the Ministry of Finance’s proposed land price table guidelines will streamline the process, allowing for swift and efficient adjustments using the K coefficient. This approach eliminates restrictions on the frequency of adjustments when resolving land use fees,” stated Dr. Pham Viet Thuan, Director of the IEEr Institute.
Soaring Land Prices: Will the Real Estate Market Cool Down?
According to experts, the significant increase in land price adjustments will make it challenging for the real estate market to cool down.
Hanoi Approves New Land Price List: Inner City Peaks at 702 Million VND/m², Substantial Fluctuations in Outskirts
The Hanoi People’s Council has approved a new land price table effective from January 1, 2026. Prime locations along central streets will see land prices set at 702 million VND per square meter. Suburban areas have experienced the most significant adjustments, with the highest increase recorded at approximately 26%.
Hanoi Offers Up to 24 Months’ Salary Support for Non-Permanent Staff Leaving During Two-Tier Government Implementation
Individuals working outside the official staffing quota at Party and State-assigned Associations at the city and district levels prior to July 1, 2025, who leave their positions due to the implementation of the two-tier government organizational model, will receive a one-time allowance. This allowance is capped at a maximum of 24 months of their current salary or remuneration.
No Additional Land Fees Proposed for Businesses Without Fault
HoREA emphasizes that the addition of this regulation aims to safeguard the legitimate rights and interests of investors in the event of policy changes.
