Responding to calls from local authorities and residents to ease financial pressure through installment-based land use fee payments, the Ministry of Finance has stated that current legislation does not yet allow for this. However, the ministry confirmed it will consider the proposal during upcoming revisions to related decrees.

According to voters in Ho Chi Minh City, current land prices are disproportionate to citizens’ incomes. Many households, particularly those in financially difficult situations, struggle to change the land use designation from agricultural to residential - often needed when subdividing plots or building homes for their children.

Voters proposed a number of policy adjustments, including fairer conversion fees, reduced personal income tax on property transactions, and exemption or reduction schemes for low-income households. Notably, they suggested allowing these households to pay land use conversion fees in installments over an extended period, helping them secure stable housing.

In its response, the Ministry of Finance cited the 2024 Land Law - effective August 1, 2024 - which mandates:

“Upon changing the land use purpose, land users must pay a one-time land use fee or land rental fee for the entire lease term, calculated as the difference between the value of the land before and after conversion.”

Article 8 of Decree 103/2024 reinforces this for individuals and households, aligning with the principles in the 2024 Land Law.

Accordingly, households converting agricultural land to residential land must pay the difference between the residential and agricultural land use fees, based on prices at the time the conversion is approved.

The Ministry noted it has received numerous reports indicating that new land pricing tables - drafted under the 2024 Land Law - have caused a sudden spike in land values in certain provinces, especially for residential land.

As a result, many residents now face significantly higher fees when converting land use purposes, compared to the previous pricing system under the 2013 Land Law. There is growing pressure to revise the land use fee structure to ease the financial burden on the public.

The Ministry of Finance revealed it is finalizing a draft special Government Resolution designed to address and resolve complications related to land use fee calculations for households converting agricultural land to residential use. This draft, after legal review by the Ministry of Justice, will be submitted to the Government for a final decision.

Installments, exemptions, and deferred land use fees

In response to suggestions allowing low-income households to pay land use conversion fees via long-term installment plans, the Ministry clarified the current legal framework.

Article 22 of Decree 103/2024 (amended by Clause 8, Article 1 of Decree 291/2025) and Point a, Clause 11, Article 18 of Decree 101/2024 (amended by Point a, Clause 3, Article 3 of Decree 226/2025) already permit deferred payments of land use fees under certain conditions.

Specifically, land users may request to defer payment when applying for a land use rights certificate for the first time. Procedures for requesting deferred payments are clearly outlined in these legal documents.

In addition, current law provides for exemptions and reductions of land use fees in cases such as: The state grants land or approves land use conversions; Households face genuine financial hardship; Applicants belong to priority policy groups.

According to Articles 18 and 19 of Decree 103/2024, full or partial exemptions are available for: War invalids or disabled veterans unable to work; Families of martyrs without able-bodied members; Poor households; Ethnic minorities; Citizens relocated due to government land reclamation for safety reasons.

Furthermore, preferential exemptions apply to land within the allocated residential land limits for: Families of people who contributed to the revolution; Those entitled to benefits under the policy for meritorious individuals, according to applicable legal provisions.
 
Nguyen Le