HANOI, Feb. 22 (Xinhua) -- The tax authority in southern Vietnam's Ho Chi Minh City has slashed annual rental fees on publicly-owned land parcels and water areas by 30 percent in an attempt to support businesses affected by the COVID-19 pandemic, the local newspaper Vietnam News reported Wednesday.
The reduction is applicable to individual and organizational tenants incurring rental fees in 2022 who should make the claim no later than March 31 by either mailing, submitting in person, or filing online forms.
The impact of the COVID-19 pandemic on businesses around the world has been devastating and, more than one year later, they continue to struggle, according to World Bank analysts, adding that businesses in developing countries were especially hard hit, with revenues down 70 percent at the peak of the crisis.
This financial incentive by Ho Chi Minh City is expected to help businesses, such as manufacturing companies and industrial park developers, quickly recover from the pandemic, said an executive with real estate services provider Savills Vietnam.
A mechanical manufacturing company told Vietnam News that the lower annual rental fees on a 5,000-square-meters parcel that it has rented from the local government for 50 years would significantly reduce its operating costs.
All land in Vietnam is administered by the State, which leases it out to property developers and homeowners through several-year terms. For local governments, leasing land is one of a few ways they raise money. ■