Vietnam Business Law

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No further land rental exemption for suspended projects

Before 1 July 2014, a project, which encounters difficulties and has its construction or operation temporarily suspended, may be entitled to exemption from land rental subject to approval by the relevant licensing authority. However, from 1 July 2014 (i.e. the effective date of Decree 46 of the Government dated 15 May 2014 on land rent and water surface rent), investors of temporarily suspended projects are no longer entitled to this exemption since temporary suspension of construction or operation is no longer a circumstance eligible to the exemption of land rental under Decree 46/2014. This post is contributed by Tran Thanh Tra, a VILAF associate.