In 2017, when the State Audit audited forestry companies in Dak Lak, it recommended collecting all land rent arrears from 2006 to 2016 from over 17 enterprises, totaling more than VND54 billion.

This occurred after the enterprises had not submitted applications for exemptions or reductions on time, though they were eligible for investment incentives.

The main reason enterprises had not filed applications on time was that before 2024, although the policy on exempting and reducing land rent was stipulated in the Investment Law, Land Law and many guiding documents, there was a lack of a dissemination policy and support for implementation. 

As a result, most agricultural and forestry companies did not promptly submit applications for exemption and reduction under regulations.

This issue is widespread among enterprises operating in remote areas, where the workforce primarily consists of ethnic minorities with limited access to administrative procedures. 

Meanwhile, production activities face numerous challenges due to land encroachment, illegal occupation, and inadequate infrastructure. During that period, enterprises were not provided with guidance or reminders from authorities to complete declaration procedures for exemptions or reductions, leading to missed opportunities.

The burdens arising from these policies, combined with periodic adjustments to land rent rates, pushed many enterprises into financial distress. Many enterprises have had to halt operations or sell assets to settle debts, and lacked the capacity to develop land use plans or access credit. Meanwhile, tens of thousands of hectares of forestry land remain poorly managed and maintained.

The land rent exemption and reduction policies are inadvertently sidelining enterprises facing the greatest difficulties. This problem was highlighted by the business community in Hanoi in their proposal to amend the draft Decree 103.

Currently, the Ministry of Finance (MOF) is revising regulations to align with the new context, specifically certain provisions of Decree 103/2024/ND-CP. The proposed amendments were published on the Government and Ministry of Finance’s electronic portals on May 24, 2025, including feedback from two enterprises and associations in Hanoi requesting retroactive application of exemption and reduction policies similar to those for public entities, to ensure fairness and transparency for enterprises and citizens.

Some opinions have proposed adding transitional provisions to address cases involving organizations with 100 percent state capital using land for water supply, drainage, and wastewater treatment projects in urban and rural areas. These cases have been required to switch to land leasing or have delayed procedures for land rent exemptions.  

Additionally, cases where land lessees submitted late applications for exemptions or reductions due to objective reasons, including delays in land leasing procedures with resource and environment agencies not caused by the taxpayers themselves, should be addressed.

Hanh Nguyen