Explainer: Vietnam’s Second Land Rent Cut for Groups Affected by COVID-19

Posted by Written by Mark Barnes Reading Time: 2 minutes

Vietnam is now well and truly through the worst of the COVID-19 pandemic. Some businesses, however, are still vulnerable and the government’s recent Decision on land rent reductions aims to boost their recovery. Here’s how it works.

On January 31, Vietnam’s prime minister issued Decision 01/2023/QD-TTg allowing for a reduction of land and water surface area rent for certain groups impacted by the COVID-19 pandemic. This is similar to a program that ran in 2021 outlined in Decision No 27/2021/QD-TTg.

This latest Decision will alleviate some of the continuing land rent burden on individuals, businesses, and other organizations. Below we discuss the key details that relevant enterprises need to know.

Who does it apply to?

Organizations, enterprises, households, and individuals that are directly leasing land or water surface area from the government under a Decision, contract, or Certificate of Land Use Rights or Home Ownership Rights.

This regulation does not apply to land and water surface lessees who are receiving a land rent exemption or reduction as part of the regulations on the Law on Land.

What are the benefits?

Approved applicants receive a 30 percent reduction in land and water surface rent for 2022 calculated on the payable land rent in 2022.

Note: This does not apply to any outstanding amounts from or late payment interest accumulated prior to 2022.

How to apply for a land rent reduction

  1. Applicants should submit a written request using the form in the appendix attached to Decision No: 01/2023/QD-TTg.
  2. Applicants also need to supply a copy of documents pertaining to the lease of the land or water surface. This could be: a lease contract or the Certificate of Land Use Rights or Home Ownership Rights.
  3. Applications can be submitted to the tax authority, Economic Zone Authority, or the management board, in the case of a Hi-tech Park.
  4. Applications must be submitted by the end of day on March 31, 2023.

Rent reduction approval process

Applicants can expect an outcome within 30 days of their application being received.


  • In the event an application is approved but is later determined to have not met the eligibility criteria, the discount will be voided, and the discounted amount will be due.
  • In the event land or water surface rent has already been paid when a reduction is received, the discounted amount will be applied to the next rent cycle. If there is no subsequent rent payment, the amount shall be refunded.

Who will manage the implementation of the rent reduction?

The Ministry of Finance is responsible for overseeing the implementation of the land and water surface rent reduction and handling any issues that may arise.

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