HO CHI MINH CITY COLLECTS OVER VND 60 TRILLION IN LAND USE FEES: LEGAL PERSPECTIVES AND PROJECT DEVELOPMENT CHALLENGES

1. Land Use Fee Revenue Becomes a Significant Component of the City Budget

In the first 10 months of 2026, total state budget revenue collected in Ho Chi Minh City was estimated at VND 767.238 trillion. Of this amount, land use fee revenue reached VND 60.077 trillion, up 20.9% year-on-year and equivalent to 66.8% of the estimate assigned by the City People’s Council.

According to information from the Department of Finance, the increase in land use fee revenue compared with the same period last year was attributable to the removal of legal obstacles affecting several projects, enabling developers to fulfil their land-related financial obligations.

Several companies recorded substantial land use fee payments during the first 10 months of 2026, including:

The three largest contributors accounted for approximately VND 30.562 trillion. The six companies together paid nearly VND 39 trillion, highlighting the significant contribution of several large-scale projects to the city’s land use fee revenue.

It is important to distinguish land use fees from land rental payments. During the same period, Ho Chi Minh City recorded VND 18.004 trillion in land rental revenue. These are two separate categories of budget revenue and should not be combined when analysing land use fee collections.

2. Accelerating Land Valuation and Unlocking Thu Thiem’s Land Resources

During the final two months of 2026, Ho Chi Minh City continued to prioritise the processing of dossiers for specific land price determination and land use rights auctions, with the aim of increasing budget revenue.

According to information presented at the socio-economic review conference on 5 November 2026, the Department of Agriculture and Environment had submitted dossiers for specific land price determination covering 68 land plots, with estimated revenue of approximately VND 45 trillion. The department was also completing dossiers for another 55 land plots, with estimated revenue of approximately VND 27 trillion. These figures represent projected revenue rather than amounts already collected by the state budget.

In Thu Thiem New Urban Area, the city planned to organise two rounds of auctions:

• First round: Four land plots were scheduled for online auction on 27 November 2026, with a combined starting price of approximately VND 16.0093 trillion.

• Second round: A total of 3,790 apartments and five land plots designated R1–R5 were scheduled for auction in December 2026, with a combined starting price of approximately VND 18.2538 trillion.

Nguyen Toan Thang, Director of the Ho Chi Minh City Department of Agriculture and Environment, expressed his expectation that the auction of the four land plots alone could generate VND 40–50 trillion. This figure represents an expectation stated by the department’s head, rather than an auction result or revenue that has already been confirmed.

Starting prices and projected auction outcomes must be distinguished from actual revenue collected. The final results will depend on the auction process and the level of investor participation.

3. Legal Compliance and Cash Flow Are Two Key Factors

Land-related legal issues directly affect project implementation timelines. Even a project with a prime location and strong commercial potential may face delays if its land documentation, planning approvals or financial obligations remain unresolved. Therefore, the ability to manage legal compliance should be assessed from the initial stages of land research and site selection.

Land costs must be evaluated alongside the project’s capital structure. Land use fees are one component of overall project development costs. Once the financial obligations have been determined, developers need to secure appropriate funding while balancing these payments against site clearance, infrastructure development, construction and financing costs. The timing of land-related financial obligations can affect cash flow and investment schedules.

Land auctions also require an assessment of long-term investment returns. Neither the starting price nor the final auction price alone is sufficient to determine investment efficiency. Investors need to consider planning parameters, permitted land use, total development costs, payment schedules and commercial exploitation potential.

For the 3,790 apartments in Thu Thiem, further assessment should also take into account their legal status, construction quality, completion costs and potential for use or commercial operation.

In addition, state budget revenue from land must be distinguished from the absorption capacity of the real estate market. A developer’s fulfilment of land-related financial obligations does not necessarily mean that the project has completed all legal procedures, is eligible for real estate business activities or will achieve strong market demand.

4. Key Issues in Land Resource Management and Utilisation

The above figures highlight three important issues for Ho Chi Minh City’s real estate market.

First, the progress of legal obstacle removal and land financial obligation determination affects the ability to convert land resources into actual budget revenue. The nearly VND 39 trillion contributed by six companies demonstrates the role of large-scale projects in the city’s land use fee revenue structure.

Second, land-related revenue is concentrated and depends heavily on the progress of individual projects. Significant payments are generated when developers fulfil their financial obligations, but similar revenue levels are not necessarily repeated in subsequent reporting periods. Therefore, the results for the first 10 months should not be extrapolated into a long-term growth trend.

Third, the value of land resources must be assessed in conjunction with development capacity and asset utilisation efficiency. For property developers, an advantage lies not only in securing sites in favourable locations but also in completing legal procedures, managing capital costs, organising project implementation and developing products that align with actual market demand.

Conclusion

Estimated land use fee revenue of VND 60.077 trillion in the first 10 months of 2026 highlights the significant contribution of real estate projects to Ho Chi Minh City’s budget revenue. However, the greater value lies in the ability to convert land resources and completed legal documentation into tangible economic value. Over the long term, legal compliance management, cash flow management and efficient asset utilisation will remain important factors determining the effectiveness of project development.