Reduced land rent - timely support for businesses

In 2024, Vicem Hoang Thach Cement One Member Co., Ltd. will receive a reduction of nearly VND 8 billion in land rental tax. In the photo: The packaging department at Vicem Hoang Thach Cement One Member Co., Ltd. (photo provided by the facility)

Accompany and share difficulties

In order to promptly support people and businesses to overcome difficulties after the Covid-19 pandemic and the impact of storm No. 3 ( Yagi ), on April 11, 2025, the Government issued Decree No. 87/2025/ND-CP on reducing 30% of land rent payable in 2025.

Every year, Vicem Hoang Thach Cement One Member Co., Ltd. has to pay tens of billions of VND in land use tax. From 2023 to now, the company has encountered many difficulties, many products are in stock; revenue and profit have both decreased. The reason is that supply far exceeds demand; the main export market, China, has narrowed. However, thanks to the Government 's policy of reducing land rent, the company has somewhat reduced financial pressure.

In 2024, the company received a reduction of nearly VND 8 billion in land rent and an extension in tax payment according to regulations. According to calculations, implementing Decree 87/2025/ND-CP, the company will also continue to receive a reduction of nearly VND 8 billion (equivalent to 2024), helping businesses overcome difficulties and stabilize production and business.

Currently, Viet Tri Garment Joint Stock Company (Thanh Mien) is renting 5.3 hectares of land with annual land rent payment. On average, each year, this company has to pay more than 500 million VND in land rent tax for production and business. Implementing the policy of reducing 30% of land rent in 2025, the enterprise will receive a reduction of more than 150 million VND. "Although it is not a large amount, when we have to reduce all operating costs, the reduced land rent will be an encouragement and motivation for the enterprise. From there, increase production and business, focus on improving competitiveness and technical innovation", said Director of Viet Tri Garment Joint Stock Company Dao Dinh Du.

These are just 2 of the many businesses that benefit from the above policy.

Every year, Viet Tri Garment Joint Stock Company has to pay more than 500 million VND in land rental tax for production.
business

Motivation for business

The policy of reducing land rent for enterprises and production and business households has promptly helped them reduce the burden of costs, add more resources to invest in machinery and technology, expand production, and increase competitiveness. This also demonstrates the State's companionship and sharing of difficulties with the business community in the context of an economy with many challenges and potential risks.

Every year, Hai Duong Telecom has to pay about 3 billion VND in land rent. If the rent is reduced by 30% in 2025 according to Decree 87/2025/ND-CP, the company will save nearly 900 million VND. The unit plans to use this money to reinvest, build infrastructure... to serve customers better and better.

Most recently, the Provincial People's Committee decided to lease more than 13,000 ^m2 of Que Huong Joint Stock Company (Nam Sach) to implement an umbrella production facility project for export. This is one of the projects on the province's list of projects that are slow to implement due to the impact of the Covid-19 epidemic. It is expected that the land rent of this enterprise will be reduced by about 20 million VND/year. Although the amount is not much, for a small-scale enterprise in a rural area, the reduction in land rent will help the enterprise to reduce financial pressure. This is the motivation for the enterprise to overcome difficulties and speed up the project implementation progress.

The Tax Department of Region V also requested that enterprises and production and business households subject to land rent reduction under Decree 87/2025/ND-CP urgently complete their dossiers and submit them to the tax authorities.

Mr. Nguyen Trac Thang, Chairman of the Association of Small and Medium Enterprises of Hai Duong province, said that the Government's policy of reducing land rent is a great motivation for businesses to promote, take advantage of advantages, and improve production efficiency. The reduction of land rent in 2025 will be a motivation for businesses to maintain production, business, reinvest, and reduce input costs, especially those businesses that have to pay land rent of up to billions of VND each year. This is not the first time the Government has implemented a policy to support businesses through reducing land rent. However, in the current context, businesses are facing difficulties due to weak purchasing power, increasing raw materials and input costs, so this policy is truly a "booster" for businesses.

According to information from the Tax Department of Region V, the unit directly receiving and processing applications for land rent reduction for enterprises, implementing the direction of the General Department of Taxation, since Decree 87/2025/ND-CP took effect, the unit has coordinated to promote propaganda on the media, the branch's website, Facebook, Zalo, and sent emails to enterprises about the contents and implementation instructions to help people and enterprises keep up with the policy. During the implementation process, the unit also promptly answered and guided difficulties and problems related to tax policies when there were requests from people and enterprises.

The policy of reducing land rent by 30% in 2025 is highly appreciated by the business community because the policy directly affects cash flow, helping businesses reduce financial pressure, increase investment opportunities, and expand production and business. However, most businesses believe that in order for businesses to benefit from the policy soon, management agencies need to continue to promote the simplification of administrative procedures in a simple, fast, and convenient direction. This will help to soon have a plan to supplement funding for other plans, including improving production quality and workers' lives.

In 2024, the Tax Department of Region V will reduce approximately 70 billion VND in land use tax for about 1,200 enterprises and production and business households in Hai Duong. It is expected that in 2025, the amount of land use tax reduction for enterprises and production households will be equivalent to 2024, with over 1,000 cases benefiting.

HA VY

Source: https://baohaiduong.vn/giam-tien-thue-dat-tro-luc-kip-thoi-cho-doanh-nghiep-411551.html