Despite a reduction in the percentage used to calculate annual land rental rates, the sharp increase in adjusted land prices has resulted in significantly higher rental costs in Ho Chi Minh City.

The new regulations, issued by the Ho Chi Minh City People’s Committee, took effect on January 20.

These guidelines set the annual land rental rates for non-auctioned land leases based on specific land-use purposes, including land for agriculture, high-tech zones, industrial zones, and commercial services.

Land rental rates by category

The annual rental rate, expressed as a percentage of the land price, varies by land-use purpose:

Agricultural land, including land in high-tech agricultural zones: 0.25%.

Land in high-tech zones, Quang Trung Software Park, export processing zones, industrial zones, and industrial clusters: 0.5%.

Non-agricultural business land:

Zone 1 (Districts 1, 3, 4, 5, 10, Phu Nhuan): 1%.

Zone 2 (Thu Duc City and Districts 6, 7, 8, 11, 12, Binh Thanh, Binh Tan, Tan Binh, Tan Phu, Go Vap): 0.75%.

Zone 3 (Hoc Mon, Cu Chi, Binh Chanh, Can Gio, Nha Be): 0.5%.

Commercial and service land:

Zone 1: 1.5%.

Zone 2: 1%.

Zone 3: 0.75%.

Impact of adjusted land prices

While the percentage rates for calculating land rentals have decreased compared to previous regulations, adjustments to the city’s land price framework have driven rental costs significantly higher.

Non-agricultural business land rental rates are projected to increase by 35–54%.

Commercial and service land rental rates are expected to rise by 18–23%.

Agricultural land rental costs, however, are estimated to decrease by 22%.

The changes reflect the dynamic nature of Ho Chi Minh City's real estate market, with the rising value of land directly influencing rental costs.

Anh Phuong