Currently, Ho Chi Minh City is seeking comments on the new Draft Decision of the Ho Chi Minh City People's Committee on adjusting the land rental rate. Based on this draft, many companies renting land in industrial parks and industrial clusters are under great pressure, which is the risk of having to pay high land rental fees with a very large area of use.
The reason is that the new land price list shows that land prices have increased from 4-5 times to dozens of times compared to previous prices, including agricultural land. It is natural that land prices increase according to market prices, but certainly land rental prices in industrial parks and export processing zones must increase accordingly.
For example, according to the previous calculation, Thu Duc district (now Thu Duc city) in Area 3 is applied with a percentage (%) of land rental price for non-agricultural production and business purposes of 1.3% and based on the land price list issued under Decision 02/2020/QD-UBND, Road No. 1 of Linh Trung Export Processing Zone has a price of 4.2 million VND/m2; based on Decision No. 56/2023/QD-UBND, Thu Duc city in Area 2 has a land price adjustment coefficient of 3.3, the annual land rental price is calculated as follows: 4.2 million VND/m2 x 3.3 x 1.3% = 180,180 VND/m2.
However, according to the current calculation method of the Draft Decision, the land rental rate in this area will be 0.75% and based on the land price of Road No. 1, Linh Trung Export Processing Zone, the new price is 39.7 million VND/m2.
The land rent payable under the new calculation will be 39.7 million VND/m2 x 0.75% = 297,750 VND/m2. This amount is 65% higher than the previous calculation.
Many businesses reported that in order to be leased land by the State, their companies also compensated people for land and fulfilled some obligations to the locality.
Now, the increase in land rental prices will cause many difficulties for companies, especially those involved in infrastructure development and businesses that lease land; increase costs, reduce profits, and lose competitive advantages in Ho Chi Minh City compared to neighboring localities.
According to Mr. Le Hoang Chau, Chairman of HoREA, the Draft Decision is based on the "Adjusted Land Price List" issued under Decision 79/2024/QD-UBND of the Ho Chi Minh City People's Committee, effective from October 31, 2024 to December 31, 2025, and in the coming time, the City People's Committee will issue the "First Land Price List" applicable from January 1, 2026 according to the provisions of the Land Law 2024, so it is "transitional" and may be considered for adjustment later to suit the city's reality.
Therefore, Mr. Chau proposed to amend the Draft Decision to apply the percentage rate for calculating land rental price for non-agricultural production and business purposes for land located at Road No. 1, Linh Trung Export Processing Zone, Binh Chieu Ward, Thu Duc City, Area 2, including: Thu Duc City, districts: 6, 7, 8, 11, 12, Binh Thanh, Binh Tan, Tan Binh, Tan Phu, Go Vap is 0.5%, 0.25% lower than the proposal of the Department of Finance in the Draft Decision.
Accordingly, the annual land rental price is calculated according to the formula: 39.7 million VND/m2 x 0.5% = 198,500 VND/m2, only increasing 1.1 times, increasing 10% compared to the previous calculation is more reasonable.
HoREA also proposed that the Department of Finance reconsider the land lease in the High-Tech Park and Quang Trung Software Park, applying 0.25% of the land price list similar to that for agricultural land to create favorable conditions to attract investment in the High-Tech Park and Quang Trung Software Park.
As for non-agricultural production and business land that is not commercial or service land; land for public works with business purposes, the rate will be reduced by 0.25% for each area specified in Clause 3, Article 3 of the Draft. As for commercial and service land, the rate will be reduced by 0.25% for each area specified in Clause 4, Article 3.
