Authorities in Vietnam’s Lam Dong province are intensifying efforts to manage and collect outstanding tax debts, a move driven by the need to meet ambitious revenue targets for 2026. The province aims to generate over 34.5 trillion VND (approximately $1.36 billion USD as of November 26, 2025) in revenue next year, representing a minimum 10% increase compared to 2025. This push comes as total outstanding tax debts in Lam Dong reached 5.869 trillion VND (roughly $231 million USD) as of November 30, 2025, a significant rise of 2.143 trillion VND from the end of 2024.
The increased focus on tax debt collection isn’t simply about bolstering revenue. it’s a response to a growing concern over non-compliance, particularly within the real estate sector. A substantial portion of the outstanding debt is linked to issues surrounding land use rights, lease payments, and delays in land allocation procedures. The province’s tax department is implementing a multi-pronged strategy, from assigning specific collection goals to individual officials to exploring more forceful measures like travel restrictions and, the revocation of business licenses.
Real Estate and Power Generation: Key Areas of Concern
The surge in tax debt is heavily concentrated among companies in the real estate sector. According to the Lam Dong Provincial Department of Finance, the primary drivers of this increase are extensions granted on certain taxes, land use fees, and lease payments that haven’t been promptly settled. Many real estate firms are facing difficulties related to lease agreements, land allocation processes, the return of mining rights, ongoing disputes, and bureaucratic delays, leading to prolonged debt accumulation and accruing penalties. The province’s tax authorities are also grappling with a significant number of cases where debts are deemed uncollectible.
Beyond real estate, some power generation companies are also falling behind on their tax obligations due to unpaid revenue from electricity sales. This adds another layer of complexity to the debt collection efforts. The overall tax debt ratio, compared to the 2025 revenue forecast (excluding debts currently under review), stands at 15%, with 13.8% considered recoverable.
Stepping Up Enforcement: Transparency and Collaboration
To address the growing problem of tax arrears, the Lam Dong Provincial Tax Department has outlined a series of comprehensive measures for 2026. These include setting and assigning specific monthly and quarterly debt collection targets to department heads, local tax office leaders, team leaders, and individual tax officials. Progress will be closely monitored to ensure targets are met. The authorities will prioritize cases with substantial outstanding debts, urging taxpayers to settle their obligations fully and limiting the creation of new debt and associated surcharges.
Tax debts will be meticulously classified according to debt management procedures, enabling the application of appropriate administrative and enforcement actions. In cases of willful non-payment, coercive measures such as temporary travel bans will be implemented. Simultaneously, there will be increased scrutiny of potentially erroneous or fictitious debts. A key component of the strategy involves enhanced taxpayer education to promote compliance with tax laws and obligations.
The tax authorities are also strengthening collaboration with the Ministry of Finance, commercial banks, and credit institutions to facilitate the seizure of funds and the freezing of accounts belonging to delinquent taxpayers. Coordination with the Ministry of Agriculture and Rural Development is underway to recover outstanding fees for land use, lease payments, and mineral exploitation rights. In cases where enforcement actions are not followed, authorities are recommending land reclamation, suspension of exploitation activities, or revocation of mining licenses. The Ministry of Agriculture and Rural Development plays a crucial role in this process.
Public Disclosure and Business License Revocation
A particularly significant step being considered is the public disclosure of companies with outstanding tax debts. This move, intended to increase transparency and encourage compliance, is being coordinated with the Ministry of Finance. In cases of continued non-payment, the authorities will capture coercive measures, including the revocation of business registration certificates, in accordance with legal provisions.
According to the Legal and Tax Planning Department of Lam Dong province, effective collaboration with local Party committees and authorities is essential for successful debt recovery. This includes strengthening the steering committee for combating tax evasion and collecting outstanding debts. Regularly publishing a list of companies with outstanding debts, analyzing the reasons for non-payment, and developing tailored collection strategies are also considered vital.
Table: Lam Dong Province Tax Debt Summary (November 2025)
| Metric | Amount (VND) | USD Equivalent (approx.) |
|---|---|---|
| Total Outstanding Tax Debt | 5,869 billion | $231 million |
| Increase from End of 2024 | 2,143 billion | $84.5 million |
| Tax Debt Ratio (vs. 2025 Revenue Forecast) | 15% | N/A |
| Recoverable Debt Portion | 13.8% | N/A |
The province’s tax authorities are committed to a comprehensive approach to debt collection, combining enforcement measures with taxpayer education and collaboration across government agencies. The next key step will be the implementation of the assigned monthly and quarterly collection targets at the beginning of 2026, with the first progress reports expected in early February.
This is a developing story. We will continue to monitor the situation and provide updates as they become available.
Have your say: What impact do you think these measures will have on businesses in Lam Dong province? Share your thoughts in the comments below.
