The VCCI expressed its support for the Ministry of Finance's initiative to formulate a policy aimed at decreasing land rent in 2025. This proposal aligns with the Government's goal of attaining an 8 percent economic growth rate in 2025, which is intended to foster conditions for achieving double-digit growth from 2026 to 2030.
According to the VCCI’s assessment, the private sector plays a pivotal role in driving economic growth, contributing nearly half of the nation's Gross Domestic Product.
The VCCI asserted that there should be policies to assist businesses in achieving advancements in production and investment. This is particularly crucial amidst the economic projections for 2025. According to projection of the national economy in 2025, the country will face numerous challenges, including anticipated difficulties in exports and rising inflationary pressures alongside increased costs of production materials due to disruptions in the supply chain.
The VCCI asserts that the policy aimed at reducing land rent will alleviate financial pressures on businesses, enhance their capacity to navigate global economic uncertainties, and ultimately support the nation's objective of achieving an 8 percent growth rate.
The policy for reducing land rent is set to be in effect from 2020 to 2024. Annually, the reduction in both land rent and water surface rent averages approximately VND3,000 to VND4,000 billion.
The previously established reduction rate of 30 percent is deemed appropriate by the VCCI as it is expected to provide businesses with additional resources to revitalize their production and operations, while still maintaining a manageable impact on the overall state budget revenue. Consequently, VCCI advocates for the implementation of a 30 percent reduction in land rent obligations for the year 2025.
Prior to this, the Ministry of Finance proposed the development of a policy to reduce land rent in the year 2025 and conducted a comprehensive consultation process with all relevant stakeholders. The consultation presented two distinct options for consideration: approval of the development of a policy to reduce land rent in 2025, or disapproval of such a policy.
The Ministry of Finance has indicated that there should be an agreement on the advancement of the policy, one of the suggested alternatives is to maintain a 30 percent decrease in land rent due in 2025. This reduction has been in effect from 2021 through 2024.
The proposal presented by the Ministry of Finance has received considerable attention from the business community and has been recognized by experts as a practical solution in the current economic climate.
