Vietnam is considering a 0.2% tax on land that is abandoned, unused or delayed in development. Understanding how this tax works helps landowners and local communities see what could change for them.

The government's proposal sets the tax rate at 0.2% for any land classified as abandoned, unused or brought into use later than required. Unlike existing rules, the proposal does not apply the usual land‑area thresholds, meaning the whole plot would be taxed at the same rate. This approach aims to discourage land hoarding and waste of valuable resources.

Deputy Nguyen Van Huy warned that the policy could unintentionally penalise owners who have already put part of their property to legitimate use. He explained that many large plots contain both developed and undeveloped sections, or are built in phases. Huy suggested that the 0.2% tax should apply only to the portion that is truly abandoned, unused or delayed, while areas already in legal use keep their normal tax rates.

Deputy To Ai Vang argued that a uniform 0.2% rate does not differentiate between deliberate hoarding and situations beyond the owner's control. She called for exemptions for land affected by natural disasters, epidemics, climate change or other force‑majeure events, especially in the Mekong Delta where such events are common. Vang proposed a separate mechanism to grant tax relief in these hardship cases.

Finance Minister Ngo Van Tuan said the tax can only be applied once land legislation clearly defines what constitutes abandoned land. He emphasized that accurate identification will require close coordination between tax authorities and land‑management agencies. The process will rely on the National Land Database and the National Population Database to ensure proper implementation.

Without a clear legal definition and targeted exemptions, the 0.2% tax could place an unfair burden on landowners and vulnerable communities. Precise rules and coordination are therefore essential to make the tax effective and equitable.