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PROPERTY

A degree of disquiet

Much discussion has ensued in response to a new draft
decree on land use fees and rents.
By TRAM ANH

draft decree from the Ministry of various economic sectors. It has also ters and assigned responsibility for speci-
Finance (MoF) on land use fees encouraged the efficient and economical fying several such matters, including land
A and rents features a number pro- use of land, gradually cut speculation, use fees and rents, to the government.
visions that have triggered concern among and minimized wasteful land use, con- In regard to financial obligations
businesses about the potential for greater tributing to the promotion and develop- regarding land rents, the draft decree
risks and possible disadvantages. ment of the country’s real estate market. states that these obligations begin when
The Vietnam Chamber of Commerce Despite such achievements, however, the decision to lease land is made. The
and Industry (VCCI) recently provided regulations on land use fees and land Law also mandates that businesses must
feedback on the draft after consulting rents under the Land Law exhibit several pay the lease prior to using the land.
with businesses and analysts. The policy limitations that must be addressed. However, VCCI noted that, in many
has been progressively institutionalized The Land Law 2024, enacted at the instances, businesses pay land use fees
following market principles, it wrote, pro- beginning of this year, introduced signifi- but State agencies fail to complete the site
moting transparency and equality across cant changes relating to land finance mat- clearance process, resulting in significant

38 Vietnam Economic Times May 27, 2024 en.vneconomy.vn