Accordingly, the percentage for calculating the annual land rental price for the commercial and service groups in area 1 (Districts 1, 3, 4, 5, 10, Phu Nhuan) will be 1.5%, area 2 (Thu Duc City, Districts 6, 7, 8, 11, 12, Binh Thanh, Binh Tan, Tan Binh, Tan Phu, Go Vap) will be 1% and area 3 (Hoc Mon, Cu Chi, Binh Chanh, Can Gio, Nha Be districts) will be 0.75%.
For non-agricultural production and business land (not commercial service land for business purposes), the rate will also be determined by region: region 1 applies a rate of 1%; region 2 a rate of 0.75%; region 3 is 0.5%.
For agricultural land (including leased land in the High-Tech Agricultural Zone), the corresponding rate is 0.25%; land in the High-Tech Zone, Quang Trung Software Park, export processing zones, industrial parks, and industrial clusters is 0.5%.
This will be the rate applied as the basis for calculating land rent in the city, effective from January 20. According to many experts, the new regulation has reduced the percentage of land rent calculation quite significantly, however, due to the sharp increase in land price list of Ho Chi Minh City compared to the old price, the annual land rent is still calculated to be high.
Through discussion with an import-export business that is renting land in District 1 of Ho Chi Minh City, the leader of this business said that his company is currently renting a land plot of nearly 1,500 m2 of commercial service land for office rental in District 3, Ho Chi Minh City.
According to the previous Decision 50/2014, the annual land rent was about 4 billion VND. According to the new land price list and the newly announced annual land rent rate, the company's upcoming land rent will be approximately 6 billion VND. This is what makes businesses tired because it significantly increases their costs, this leader shared.
Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association - said that, based on the practical situation of the city, the regulation on the percentage rate for calculating the annual land rental price as the city will apply in the near future will have a negative impact on investment attraction activities and the sustainable development of the Ho Chi Minh City real estate market.
Mr. Chau gave an example of a land plot at a location with non-agricultural production and business land that is not commercial or service land on Street No. 1, Linh Trung Ward, Thu Duc City.
Before 2022, applying Decision 50/2014/QD-UBND, Road No. 1, Linh Trung Ward, Thu Duc District (old) in Area 3, the land rental rate (%) for non-agricultural production and business purposes was applied at 1.3% of the land price of the land price list issued at that time together with the price of non-agricultural production and business land that is not commercial or service land. The rental price at that time was calculated at 52,416 VND/m2.
During the period of 2023 and the first 10 months of 2024, with the price of non-agricultural production and business land that is not commercial or service land in this area adjusted to increase to 2.52 million VND/m2 along with the application of an additional land use coefficient of 2.6 times, the annual land rental price is determined to be 85,176 VND/m2.
And now, when applying the new land price list, the land price in this area is increased to 19.9 million VND/m2 and according to the new calculation, it will be 0.75% of the land price of the adjusted land price list, so the annual land rental price will be 149,250 VND/m2.
This shows that if a business rents land for industrial production in this area, within just 3 years from 2023-2025, the business will have its land rent adjusted up twice. This will be a significant financial pressure for businesses.
Meanwhile, according to the viewpoint of the Ho Chi Minh City Department of Finance when giving these rates, this is an increase within the tolerance limit of the Ho Chi Minh City economy, an inevitable increase when the State adjusts the land price list towards approaching the market price.
