On June 26, Ms. Nguyen Thi Hong (Hung Loc ward, Vinh city, Nghe An) reported having to pay too much money when converting land use purposes.
According to Ms. Hong, on May 16, 2025, her family submitted an application to convert 300m2 of garden land to residential land at the reception and return of results department of Vinh City People's Committee.
On June 23, the family received a notice of tax calculation, with the land price after conversion being 15 million VND/m2, while the old price was only 85,000 VND/m2. The total amount of land use fees payable is up to VND 4.497 billion - a figure beyond the family's ability to pay.
"Although my family's land is still attached to the road, it is close to the cemetery, so we can only sell it for about 3 billion VND, while the land use fee that must be paid is up to nearly 4.5 billion VND" - Ms. Hong said.
Some other households also expressed their dizziness when receiving a notice from the tax authority about the amount to be paid when converting from garden land to residential land according to the new price list.
Previously, as Lao Dong reported, Nghe An Provincial People's Committee has just issued a new land price list applicable from May 21, with the strongest increase in the adjustments so far, in some places up to 15 times compared to the period 2020 - 2024.
In Vinh City, the adjustment level is concentrated on central roads and regional connecting routes. For example, Quang Trung Street increased from 52 million VND to 150 million VND/m2; the two-way lot on the frontage increased from 53 million VND to 165 million VND/m2.
In Nghi Xuan commune, the road connecting provincial road 535A to provincial road 353B increased from 1.2 million VND to 18 million VND/m2 (an increase of 15 times). The 72m road connecting Vinh City - Cua Lo increased from 3 million VND to 35 million VND/m2.
The fact that the new land price list has a skyrocketing price compared to the old price causes great difficulties for people when converting land use purposes because they have to pay too much money.
On June 26, speaking with a reporter from Lao Dong Newspaper, Mr. Nguyen Duy Nhat - Deputy Director of the Department of Agriculture and Environment of Nghe An province - confirmed that he had received information from people about the new land price list.
"Nghe An province has developed a new land price list according to the principle of closely following market prices. However, in reality, this price list is only approaching about 7080% of market price. The requirement for people to pay 100% of land use fees when converting from garden land to residential land is implemented according to current regulations" - Mr. Nhat said.
Mr. Nhat added that currently, competent authorities are drafting a Decree amending regulations on land use fee collection. Accordingly, when converting the purpose of use from garden land to residential land, people will only have to pay 50% of the land use fee instead of 100% as at present. "This Decree will be passed in the coming time. Therefore, in my opinion, people should wait for the new policy to be issued before implementing the conversion to avoid unnecessary disadvantages" - Mr. Nhat recommended.
