Mercedes-Benz Vietnam's land lease in HCMC extended by five years

The decision, issued by Deputy Prime Minister Tran Hong Ha, follows recommendations from the Ministry of Planning and Investment, the HCMC People’s Committee and other relevant authorities, according to a statement from the government office.

The lease extension takes effect from April 14, 2025, with the company required to pay rent annually. Mercedes-Benz Vietnam must also provide written guarantees to fully relocate all production and business activities by April 14, 2030, when the lease expires.

Mercedes-Benz Vietnam, a joint venture between the Saigon Mechanical Engineering Corporation (SAMCO) and Germany’s Mercedes-Benz AG Group, was initially granted the Go Vap District land in 1995 under a 30-year lease, which should last from 1995 to 2025.

In 2021, the company requested a five-year extension of the lease, committing to relocate by 2030.

The company employs around 800 workers and reported annual revenue exceeding VND9 trillion ($365.7 million) in the 2017-2021 period, contributing more than VND5.5 trillion to HCMC's budget.