Land rental prices increase rapidly, businesses urgently petition

QUANG ĐẠI |

Nghe An - Land rent will increase dramatically if applied according to the new price list, causing heavy pressure on the already disadvantaged business community.

On April 28, information from the Tax Department of Region X (headquartered in Vinh City, Nghe An), the unit has just sent document No. 832 to the Nghe An Provincial Business Association, with annual land rent expected according to the draft new land price list.

According to the Tax Department of Region X, the calculation of land rent is based on the 2024 Land Law and current regulations. The tax authority said that with the price of non-agricultural production and business land equal to 20% of residential land, and commercial and service land equal to 25% of residential land, the land rental amount in 2025 will have a sudden increase compared to the present for some enterprises.

Gia dat tang qua cao, e khach, mot chu kiot thong bao cho thue tren duong Nguyen Van Cu (TP Vinh, Nghe An). Anh: Quang Dai
Land prices increased too much, leaving few customers, a kiosk owner announced a rental on Nguyen Van Cu Street (Vinh City, Nghe An). Photo: Quang Dai

Attached to document No. 832, the Tax Department of Region X sent a notice of land rent expected according to the new price list, showing a series of enterprises with skyrocketing land rent levels.

Nghe An Trade Union Tourism and Trade Union Member LLC rents land in Cua Lo Town to face a 295% increase in land rent (from 551 million to more than 1.62 billion/year); Nghe An Province Guesthouses increase land rent by up to 170%; Nghe An International Hotel Joint Stock Company increases land rent by 195%; Mega Market Vietnam Company Limited, Nghe An branch, increases land rent by 145%; Nghe Tinh Port Joint Stock Company increases 170%...

Bieu du kien tien thue dat theo bang gia moi, cho thay mot loat doanh nghiep co muc tien thue dat tang phi ma. Anh: Quang Dai
The land rent estimate table according to the new price list shows a series of enterprises with skyrocketing land rent levels. Photo: Quang Dai

Previously, at the working session between leaders of Nghe An Provincial People's Committee, Departments and Associations, and Business Associations in Nghe An province on April 27, 2025, Nghe An Department of Agriculture and Environment affirmed that the land rental of enterprises will only increase by 15% to 20% after applying the newly adjusted land price list for 2025.

This reality has caused the Nghe An business community, which is struggling to recover after the COVID-19 pandemic, to face further difficulties. In 2024 alone, the whole province had nearly 1,800 dissolved and temporarily suspended operations, according to data from the Nghe An Typical Business Association.

Faced with this situation, on April 28, 2025, Nghe An Outstanding Business Association issued document No. 188 recommending to Nghe An Provincial People's Council. Accordingly, the business community recommends:

Adjust the percentage of land rental unit price to be more reasonable, not allowing the increase to exceed 20% compared to the previous period.

Consider further reducing the percentage of production land and commercial service land (the Provincial People's Committee plans to be 20-25%) compared to residential land in this period, to support businesses to stabilize production.

Currently, the business community is waiting for consideration and reasonable adjustment from the Nghe An provincial government, to avoid causing a new "shock" for many businesses that are already facing many difficulties, said Mr. Tran Anh Son - Chairman of the Nghe An Outstanding Business Association.

QUANG ĐẠI
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