HoREA recently proposed to supplement several important provisions in the draft 2024 Land Law to resolve practical issues and turn land resources into a force for socio-economic development.

The association urged the Ministry of Agriculture and Environment (MAE) to keep the content of Clause 26, Article 1 of the draft law (dated July 28, 2025), on the amendments and supplements to Clause d, Paragraph 2, Article 257 of the 2024 Land Law. This provision aims to abolish the unreasonable regulation on “additional fees that land users must pay for the period during which land-use or lease fees had not been calculated.”

HoREA argues that abandoning the proposed amendment to Clause d, Paragraph 2, Article 257 will cause ongoing difficulties for project development. In practice, delays by state agencies in issuing decisions on land-use fees, rental fees, or supplementary decisions have led to significant financial burdens for businesses.

Currently, Point d, Clause 2, Article 257 of the 2024 Land Law and Clause 1, Article 50, and Clause 9, Article 51 of Decree 103/2024, say: “The additional amount to be paid by land users is calculated at 5.4 percent per year on the payable land use or lease fee.” This regulation makes the additional amount very large, putting pressure on businesses and slowing down project implementation.

For example, Project A, allocated land in 1995 (30 years ago), is notified in 2025 of a VND100 billion land-use fee. In addition to paying VND100 billion, it must pay an additional VND100 billion x 5.4 percent/year x 30 years = VND162 billion (1.62 times the original fee).

Project B, allocated land in 2005 (20 years ago), is notified in 2025 of a VND100 billion land use fee. It must pay an additional VND100 billion x 5.4 percent/year x 20 years = VND108 billion (1.08 times the original fee).

Project C, allocated land in 2015 (10 years ago), is notified in 2025 of a VND100 billion land use fee. It must pay an additional VND100 billion x 5.4 percent/year x 10 years = VND54 billion (54 percent of the original fee).

Proposals to retain key provisions in 2024 Land Law

HoREA argues that the failure to propose amendments to Clause d, Paragraph 2, Article 257 of the 2024 Land Law is inconsistent with Clause 2, Article 55 of the 2025 Law on Promulgation of Legal Documents.

It believes that Clause d, Paragraph 2, Article 257 applies retroactively to cases of land allocation and leasing from the 1993, 2003, and 2013 Land Laws. This forces land users to pay additional fees for periods when land-use or rental fees were not previously calculated.

According to HoREA, this regulation conflicts with the 2025 Law on Promulgation of Legal Documents, which prohibits retroactive application if it creates new or heavier legal liabilities. Thus, this provision needs revision to avoid imposing unreasonable financial burdens on businesses and individuals.

HoREA notes that the regulation in Clause d, Paragraph 2, Article 257, requiring “additional fees” for periods when land-use or rental fees were not calculated, applies to cases from the 1993, 2003, and 2013 Land Laws, the periods when such obligations did not exist. This retroactive rule creates new and heavier legal liabilities, violating principles of legal document issuance.

Under Decree 103/2024, these additional fees are calculated at 5.4 percent per year on the owed land-use or rental fees. Although the Ministry of Finance proposed reducing this to 3.6 percent per year, HoREA considers this still too high and suggests lowering it to 0.5 percent per year. 

The rationale is that delays in issuing land price decisions or financial obligation notifications are entirely the responsibility of state agencies, not businesses. Businesses should only face penalties if they don’t pay after receiving notifications.

HoREA also refutes the notion of “shared fault” between state agencies and businesses, as land pricing and planning adjustments are solely under state authority, and businesses cannot intervene unless there is misconduct.

Thus, HoREA proposes retaining Clause 62, Article 1 of the draft law, which suggests amending Clause d, Paragraph 2, Article 257 of the 2024 Land Law as follows: The Government shall regulate the application of land pricing methods for cases specified in Clauses a, b, and c of this paragraph.

Hong Khanh