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On August 19, 2025, the Government promulgated Decree No. 230/2025/ND-CP (“Decree 230”) to provide detailed guidance on Clause 2, Article 157 of the 2024 Land Law regarding “other cases” eligible for exemption or reduction of land use levy and land rent. This Decree takes effect from August 19, 2025.

Regarding cases eligible for exemption or reduction of land use levy

In addition to the cases of land use levy exemption already stipulated in the 2024 Land Law, Decree 230 introduces two additional cases eligible for land use levy exemption as follows:

1. Allocation of residential land for resettlement purposes or allocation of land to households and individuals residing in flood-prone residential clusters or lines, in accordance with the Prime Minister’s decision on the adjustment and supplementation of eligible beneficiaries and mechanisms for housing loan support under the program for the development of residential clusters, lines, and housing in areas frequently affected by flooding in the Mekong Delta.
2. Allocation of residential land to fishing village households and households living on rivers, lakes, and lagoons who are relocated to resettlement areas in accordance with approved planning, schemes, and projects by competent authorities.

According to Decree 230, military units, police units, and public non-business entities under the management of the People's Army and the People's Public Security, as well as state-owned enterprises managed by the Ministry of National Defense and the Ministry of Public Security, that use national defense land in combination with labor, production, and economic development activities, shall be entitled to a 30% reduction in annual land use levy. These entities are required to prepare a land use plan and submit it to the Minister of National Defense or the Minister of Public Security for review and approval.

In addition, Decree 230 demonstrates flexibility by authorizing the Ministry of Finance to propose to the Government the exemption or reduction of land use levy for one year, where necessary, in order to implement socio-economic policies, stabilize the macroeconomy, support business and production development, ensure social security, and address emerging issues in the annual socio-economic management practice.

Regarding cases eligible for exemption or reduction of land rent

Decree 230 additionally provides for the following cases to be eligible for full exemption from land rent for the entire lease term:

1. Use of land for the construction of headquarters of the Vietnam Bank for Social Policies, the Vietnam Development Bank, and off-budget state financial funds operating on a non-profit basis established in accordance with regulations of the Government or the Prime Minister.
2. Use of land for the construction of communal Post and Cultural Points.
3. Use of land for the construction of scientific research facilities of science and technology enterprises.
4. Land used by entities operating in the digital technology industry, and land used for the construction of centralized digital technology zones and the National Innovation Center.
5. Areas of land and housing used for external relations and diplomatic purposes, allocated to public non-business entities with the function of managing land and housing for external affairs, to be used under reciprocal arrangements or provided without charge, and leased to foreign organizations with diplomatic functions or foreign representative offices under the State’s special preferential policies as decided by competent authorities.
6. Land that is not classified as national defense land, used by military units that provide public services under the model of public non-business entities.
7. Enterprises with investment projects in agriculture and rural areas in accordance with the Government’s regulations on mechanisms and policies to encourage investment in agriculture and rural development.
8. Land users who are leased land by the State with annual rental payments for agricultural production, forestry, aquaculture, or salt production purposes, and who suffer damage of 40% or more due to natural disasters or fire, shall be exempt from land rent for the year in which the damage occurred.
9. Organizations operating in the agriculture, forestry, and fishery sectors that are leased land by the State with annual rental payments and employ at least 50% of their workforce from ethnic minority groups eligible for support policies under the Prime Minister’s decision on assistance for organizations and units employing ethnic minorities in mountainous and specially disadvantaged areas.
10. Organizations and units that are leased land by the State with annual rental payments for production and business purposes and employ at least 70% of their workforce as persons with disabilities.
11. Socialized establishments entitled to development incentive policies under Decree No. 69/2008/ND-CP shall be exempt from land rent pursuant to decisions of the People’s Council.

Cases eligible for land rent reduction under Decree 230 include:

1. Enterprises with investment projects in agriculture and rural areas, in accordance with the Government’s regulations on mechanisms and policies to encourage investment in agriculture and rural development, are eligible for land rent reduction. The specific reduction rate shall be determined pursuant to the Government’s regulations.
2. Land users who are leased land by the State with annual rental payments for agricultural production, forestry, aquaculture, or salt production purposes, and who suffer damage of less than 40% due to natural disasters or fire, shall be eligible for land rent reduction. The reduction rate shall correspond proportionally to the percentage of damage incurred during the affected year.
3. Land users who are leased land by the State with annual rental payments for production and business purposes (excluding projects using land for agricultural production, forestry, aquaculture, or salt production) and who are forced to temporarily suspend operations to remedy the consequences of natural disasters, fire, or force majeure events shall be eligible for a 50% reduction in land rent payable for the duration of the suspension, as confirmed by a competent state authority.
4. Organizations operating in the agriculture, forestry, and fishery sectors that are leased land by the State with annual rental payments and employ between 30% and less than 50% of their workforce from ethnic minority groups eligible for support policies under the Prime Minister’s decision on assistance for organizations and units employing ethnic minorities in mountainous and specially disadvantaged areas shall be entitled to a 50% reduction in land rent.
5. Organizations and units that are leased land by the State with annual rental payments for production and business purposes and employ between 30% and less than 70% of their workforce as persons with disabilities shall be entitled to a 50% reduction in land rent for the applicable year.
6. Socialized establishments entitled to development incentive policies under Decree No. 69/2008/ND-CP shall be eligible for land rent reduction pursuant to decisions of the People’s Council.
7. Cooperative groups, cooperatives, and unions of cooperatives that are annually paying land rent to the State for the purpose of using the land as premises for production and business activities shall be entitled to a 50% reduction in land rent.

Decree 230 supplements provisions stipulating that, in cases deemed necessary for the implementation of socio-economic policies, macroeconomic stabilization, support for production and business development, assurance of social welfare, and resolution of issues arising in the course of annual socio-economic administration, the Ministry of Finance shall submit to the Government a proposal on the exemption or reduction of land rent for that particular year.

Regarding the reduction of land rent payable for the year 2025

Land users who are currently leasing land from the State under the form of annual land rent payment (including cases where legal land documents are available or not, but the land is being used and subject to land rent payment for the year 2025 in accordance with regulations, as well as cases where land users are using land but have not yet completed the land-related documentation as prescribed by the land law) shall be entitled to a 30% reduction in the land rent payable for the year 2025.

Decree 230 introduces numerous additional cases eligible for exemption or reduction of land use fees and land rent. The expansion of beneficiaries entitled to such exemptions and reductions under Decree 230 not only reflects the State’s policy of encouraging investment and sharing cost burdens to support business entities during difficult periods, but also demonstrates its commitment to social welfare policies. In addition to specifying particular cases eligible for exemption or reduction of land use fees and land rent, Decree 230 also establishes a flexible mechanism that allows for the exemption or reduction of such payments in accordance with the actual socio-economic conditions of each year, thereby providing timely support to land users and contributing to macroeconomic stability.