Vietnam's government wants to tax abandoned land, and land left unused or developed late, at a flat 0.2% with no allowance for land within the usual quota, so every square metre in that category would pay the same rate. According to VnExpress, the proposal is part of a bill amending three tax laws that Finance Minister Ngo Van Tuan presented to the National Assembly on behalf of the Prime Minister on the morning of 23 October 2026. Most deputies backed the idea in group discussions that afternoon but asked for clear criteria and a clear starting point for the tax.
What the bill proposes
The bill amends the laws on corporate income tax, non-agricultural land use tax and personal income tax at once. The 0.2% rate sits in the land use tax changes and is nearly seven times the rate on residential land within the quota, VnExpress reported. The drafters say it implements the Party Central Committee's Resolution 21 and aims to make land use more efficient.
The amended Land Law, which the government submitted on 22 October, defines abandoned land for the first time: land allocated or leased by the State but not used continuously for a set period. Farmland left idle for more than 24 months after an administrative fine would be reclaimed, and delayed projects would pay a rising annual surcharge and lose the land after 60 months (Vietnam's Prime Minister says high land prices hurt the economy).
Concerns from reviewers and deputies
The National Assembly's Economic and Finance Committee, chaired by Phan Van Mai, said the bill did not assess the revenue impact and did not exclude force majeure or phased projects, which could mean taxing delays that are nobody's fault. It also noted that existing law already taxes improperly used land at 0.15%.
Who could be caught:
| Group | Concern raised | By |
|---|---|---|
| Banks and VAMC holding collateral land awaiting sale | Unfair tax on land not held for speculation | Agribank chairman To Huy Vu |
| Families who bought land but cannot yet build | Whether they would be taxed | Tran Hoang Ngan (Ho Chi Minh City) |
| Households with legal, unbuilt residential plots | Scope must be spelt out | Nguyen Thi Viet Nga (Hai Phong) |
Lang Son deputy Doan Thu Ha asked whether the tax would run from the day land falls idle, from a deadline, or from an official finding, and warned against letting owners simply pay more tax to keep land idle. Prime Minister Le Minh Hung said ministries would define abandoned land clearly and avoid overlapping charges.
What happens next
The Assembly will debate the bill in plenary on 6 November 2026. If passed on 20 November 2026, it would take effect in 2027, VnExpress reported.