Dang Hung Vo proposes stricter land regulations in Vietnam

Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, has proposed stricter controls on land subdivision and sale to ensure real residential needs are met, particularly for low-income and rural populations. He warned that focusing solely on land subdivision can hinder complete urban development and lead to "dead capital" if funds are tied up in unused plots rather than construction and value creation.

To combat land waste, Vo suggested implementing a tax of 1% to 5% annually on abandoned or unused real estate to act as a deterrent. He noted that while current government proposals suggest a 0.2% tax rate for unused land, a higher rate and a dedicated real estate tax law might be necessary to prevent economic stagnation caused by idle assets. He emphasized that urban development must follow state planning to prevent speculative price hikes, as seen in recent land auctions in suburban Hanoi.