On April 27, Nghe An Provincial People's Committee said that it had received a collective petition from Associations and Business Associations in the area, proposing to consider adjusting the land price list for the period 2020-2024 and handling the shortcomings in the 2025 land price draft.
According to the petition sent to the Standing Committee of the Provincial Party Committee, People's Council, People's Committee and the Vietnam Fatherland Front Committee (VFF) of Nghe An province on April 22, the Associations and Business Associations of Nghe An province highly appreciated the province's leadership and support in the past time.
However, businesses have reported that production and business activities are under great pressure from financial instability, tariffs and disruptions in the global supply chain.
In that context, the Government has had many support policies such as reducing VAT by 2%, reducing land rent by 30% to share difficulties with businesses. However, according to the draft land price list for 2025, land prices in Nghe An are expected to increase by an average of 200% to 700% compared to the period of 2020-2024, resulting in an annual land rent increase of 150%-400% compared to 2024. Enterprises assessed that this was a "dizzying" increase and far beyond the actual endurance.
In the recommendation document, the Associations and Business Associations in the province proposed 4 contents:
First, refer to the experience of neighboring provinces such as Thanh Hoa and Ha Tinh - localities that decided to keep the land price list unchanged for 2020-2024 until the end of 2025, to reduce cost pressure for businesses.
Second, it is recommended to reduce the percentage of land rental prices for calculating annual land rents to limit negative impacts.
Third, it is proposed to apply the principle of stabilizing land rent according to Decree 103/2024/ND-CP, in which land rent cannot be adjusted to increase beyond the average total consumer price index (CPI) of the previous 5 years.
Fourth, review and rebalance land rental prices on some routes that are not suitable for practice.
Business Associations and Associations believe that the reasonable adjustment of land rent this time not only contributes to creating consensus in the business community but is also an important condition to support businesses to improve production capacity, improve product quality and facilitate international economic integration.
Currently, newly invested enterprises are still entitled to preferential treatment of land rent exemption. However, when the incentive period expires, attracting long-term investment will face many difficulties.
Notably, the Business Associations and Associations also expressed surprise at not receiving any documents to collect opinions from affected subjects before issuing the draft land price list - a step that is considered not to ensure the principle of transparent consultation.
Currently, Nghe An Provincial People's Committee has assigned specialized agencies to inspect, review and advise on solutions for the above recommendation.
