Land rent reduction should continue: VCCI
Land rent reduction should continue: VCCI
The Vietnam Chamber of Commerce and Industry (VCCI) has called for a continuation of the 30 per cent reduction in land rent, claiming it has provided a boost to the economy and helped businesses facing global and domestic challenges.
In an earlier development, the Ministry of Finance said it has been working on alternatives to the current flat 30 per cent reduction in land rent.
The chamber said the flat 30 per cent reduction aligns with Việt Nam’s economic growth goals. According to the VCCI, the proposed reduction in land rent is a critical support for the Government’s ambitious target of 8 per cent economic growth this year. This policy is expected to provide momentum for the 2026–2030 period, during which the Government is aiming for double-digit growth.
The private sector, which contributed nearly half of Việt Nam’s GDP last year, has been identified as a key driver of economic growth. The chamber said the rent reduction has eased financial burdens on businesses, which will enable them to expand production, increase investment and navigate economic uncertainties.
This year, businesses are expected to face significant challenges, including global economic pressures affecting exports, rising inflation and increased production costs due to supply chain disruptions.
The VCCI said the land rent reduction, implemented between 2021 and 2024, has delivered positive results and was well-received among the business community while having a manageable impact on the state’s budget.
Maintaining this reduction rate in 2025 would further strengthen the private sector’s ability to drive growth and create jobs. Additionally, the policy may enhance Việt Nam’s resilience amid global economic risks by reducing operating costs for businesses, thereby increasing their competitiveness in international markets, according to the chamber.
Meanwhile, there has been concern over how much of an impact the policy, if continued, will have on the state’s budget. On the other hand, the continuation of the policy could encourage the Government to look for alternative funding sources. Minor momentary setbacks could be offset by long-term socio-economic benefits.
However, the chamber said not all businesses rely equally on leased land, with sectors like manufacturing and logistics likely to benefit the most from the land rent reduction. VCCI advised the Government to conduct a sector analysis to identify priority industries that can benefit the most from the policy.
