PROPERTY TAX POLICY IN THE MODERN ECONOMY: INTERNATIONAL EXPERIENCES AND POLICY IMPLICATIONS FOR VIETNAM

Abstract

Real estate tax-levied on land and properties attached to land, has long been an essential fiscal instrument in the budgets of many developed countries. Beyond providing a stable revenue stream, it serves as a social regulatory tool, curbing speculation, encouraging efficient land use, and reducing wealth inequality. In Vietnam, however, real estate taxation remains rudimentary, fragmented, and lacks coherence. Amidst a volatile property market, widening asset inequality, and growing demands for sustainable public finance, reforming property taxation, particularly real estate tax-has become a strategic imperative.

Grounded in modern public economics theory and drawing on reform experiences from countries with advanced institutional frameworks, this article analyzes the role and operational models of real estate tax. It proposes a reform roadmap tailored to Vietnam’s socio-economic context, including the adoption of progressive tax rates, the shift to market-based property valuation, and the decentralization of revenue collection to local governments. In doing so, real estate tax can evolve from a mere financial tool into an institutional pillar for equitable, modern, and sustainable economic development