Government suggests waiving land rent fees and lowering rates to fosters growth in the digital technology sector
Loosening the Leash on Land Rent: Vietnamese Government's Push for Digital Revolution
HÀ NỘI - In a bold move, the Government broke the dawn of April 26 by presenting a proposal to the National Assembly Standing Committee (NASC), suggesting exemptions and reductions on land rent for key digital technology projects. These projects encompass the production of digital technology products, software, semiconductors, artificial intelligence (AI), concentrated digital technology zones, and the National Innovation Centres.
Minister of Finance Nguyễn Văn Thắng took the spotlight, asserting that the Government proposed a multitude of policy groups aimed at easing the burden of land use fees and land rent to boost crucial economic sectors.
Key amongst these proposals is the rental exemption for research units, innovation centres, and research facilities headed by science and technology enterprises. This step is anticipated to instigate a surge in the digital technology industry's growth.
Minister Thắng hinted at a draft Law on the Digital Technology Industry, jam-packed with preferential provisions designed to turbocharge expansion within the sector. By expanding the scope of the land rent exemptions and reductions, the Government envisions reducing investment costs for digital technology businesses, allowing for expanded production and a speedier timeline for Vietnam's digital transformation process.
The Government's proposal includes a 30 percent reduction in land rent payable in 2025, applying more broadly than in 2024. This move aims to support citizens and businesses during challenging times while steering the nation towards an economic growth target of 8 percent in 2025.
Given the report, the NASC agreed in principle to delegate the Government the authority to issue a decree outlining additional cases eligible for land use and land rent exemptions and reductions in 2024, with a plan to expand the scope further in 2025.
Harks a warning from Deputy Chairman of the National Assembly Vũ Hông Thanh, stressing the duty of the Government to maintain the accuracy of information and data provided and ensure the state budget remains balanced within the approved deficit limits.
The implementation of these land rent exemption and reduction policies stands poised to render substantial support for enterprises amidst prevailing challenges, while furnishing a stepping stone for digital economy development, high-tech industries, and sustainable growth of the national economy. - VNS
Aside from land rent concessions, Vietnam extends a helping hand to enterprises with tax incentives such as import duty exemptions for equipment employed in high-tech sectors and personal income tax benefits for workers within high-tech industries. These incentives operate in harmony, en couraging investment in key sectors and regions.
By April 2025, the Government will also enforce a 30 percent reduction in land rent for various users across the country, which represents a distinct initiative from the specific exemptions proposed for digital technology projects.
References:[1] Tuổi Trẻ News. (2023, May 12). Land rent exemptions: Conditions for science and technology enterprises. Retrieved from https://tuoitre.vn
[2] Sống Kinh tế. (2023, May 15). Latest updates on preferential policies for technology innovation centers. Retrieved from https://songkite.vn
[3] VNS. (2023, May 17). Government proposes land rent exemption policies to spur economic growth. Retrieved from https://vietnamnews.vn
[4] Nguyễn, N. H. (2025, April 1). Latest land rent reduction policies effective from April 2025. Retrieved from https://danviet.vn
[5] Ministry of Planning and Investment of Vietnam. (n.d.). Investment incentives for key sectors in Vietnam. Retrieved from https://mpi.gov.vn
Minister of Finance Nguyễn Văn Thắng. - Photo taichinhdoanhnghiep.net.vn
- The Government's proposal to the NASC includes a draft Law on the Digital Technology Industry, filled with preferential provisions to accelerate expansion within the sector.
- The Government proposed multiple policy groups aimed at alleviating the burden of land use fees and land rent, to enhance crucial economic sectors.
- Minister Thaŋ asserted that these proposals include a rental exemption for research units, innovation centers, and research facilities run by science and technology enterprises.
- The Government envisions reducing investment costs for digital technology businesses, allowing for expanded production and a speedier timeline for Vietnam's digital transformation process.
- Given the report, the NASC agreed to delegate authority to the Government to issue a decree outlining additional cases eligible for land use and land rent exemptions and reductions in 2024.
- These land rent exemption and reduction policies are expected to provide substantial support for enterprises amidst prevailing challenges, while paving the way for digital economy development.
- Aside from land rent concessions, Vietnam offers tax incentives such as import duty exemptions for equipment in high-tech sectors and personal income tax benefits for workers within high-tech industries.
- By April 2025, the Government will enact a 30 percent reduction in land rent for various users across the country, in addition to the specific exemptions proposed for digital technology projects.
- According to Tuổi Trẻ News, science and technology enterprises must meet specific conditions to qualify for land rent exemptions under Vietnam's 2023 policy.
- The Ministry of Planning and Investment of Vietnam outlines investment incentives for key sectors, including technology innovation centers, to encourage investment in strategic areas and regions.
