Law on Urban Development 2026, No. 18/2026/QH16

LAW

ON URBAN DEVELOPMENT

Pursuant to the Constitution of the Socialist Republic of Vietnam, which has a number of articles amended and supplemented under Resolution No. 203/2025/QH15;

The National Assembly promulgates the Law on Urban Development.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Law prescribes mechanisms and policies to promote the development of cities classified as special-grade urban centers (below referred to as special-grade urban centers), other cities and special economic zones.

2. Ho Chi Minh City and other cities classified as special-grade urban centers (below referred to as the City) may apply the mechanisms and policies to promote the development of special-grade urban centers prescribed in this Law. Hanoi City shall comply with the Law on the Capital.

3. Cities not falling into the cases specified in Clause 2 of this Article may apply a number of mechanisms and policies to promote the development of special-grade urban centers prescribed in this Law, except the provisions at Point a, Clause 3, Article 5; Clause 2, Article 7; Article 8; Point a, Clause 1, Article 16; and Section 7, Chapter II of this Law.

4. Special economic zones may apply the mechanisms and policies for development of special economic zones prescribed in this Law. Provinces and cities where special economic zones are located may implement a number of mechanisms and policies to promote the development of special-grade urban centers prescribed in Chapter II of this Law for application within such special economic zones, except the provisions at Point a, Clause 3, Article 5; Clause 2, Article 7; Article 8; Point a, Clause 1, Article 16; and Section 7, Chapter II of this Law.

5. The Government shall prescribe the scope of application of mechanisms and policies to promote the development of special-grade urban centers to the cases specified in Clauses 3 and 4 of this Article where this is approved in principle by the competent authority, based on its conformity with the specific conditions, development orientations and implementation capacity of each locality and compliance with the principles prescribed in Clauses 1, 2, 4 and 5, Article 3 of this Law.

6. Where it is necessary to pilot other mechanisms and policies or mechanisms and policies not yet prescribed in this Law or other legal documents of the National Assembly or the National Assembly Standing Committee for the cases specified in Clauses 3 and 4 of this Article in order to meet state management, economic management and social management requirements, the Government shall promulgate a decree after obtaining the competent authority’s in-principle approval and the consent of the National Assembly Standing Committee.

Article 2. Interpretation of terms

In this Law, the terms below are construed as follows:

1. Special economic zone means a commune, ward or special zone with a strategic location, recognised according to the criteria prescribed in this Law, and entitled to the application of outstanding mechanisms and policies to enhance national competitiveness and promote socio-economic development of the locality, region and the whole country.

2. Large and important project means one of the following projects:

a) A public investment project prescribed by the law on public investment; an investment project prescribed by the law on investment in the public-private partnership form (below referred to as a PPP project) using local budget funds or other lawful funds of the locality; an investment project prescribed by the law on investment that needs to be implemented immediately; or an urgent or emergency construction investment project as directed by the Party Central Committee, Political Bureau, Secretariat, Government Party Committee or Executive Committee of the City Party Committee;

b) A public investment project or PPP project using local budget funds or other lawful funds of the locality in the City or special-grade urban region and satisfying the criteria for classification as a project of national importance under the law on public investment;

c) A project on the List of sectors prioritized for attraction of strategic investors, implemented by a strategic investor.

3. Low-altitude space and high-altitude space mean portions of space over land and water surfaces within the administrative boundaries of the City, whose scope, boundaries and altitude are determined under the City’s planning, and which are used for management, exploitation and utilization in socio-economic development, science, technology, transport and urban management activities in association with ensuring national defense, security, social order and safety.

4. Free trade zone means a functional zone with defined geographical boundaries, directly linked or connected by transport to the system of international seaports, international airports, international financial centers, important international border gates or other strategic logistics infrastructure; established for the application of outstanding mechanisms and policies on investment, finance, trade, high-quality services and logistics, promotion of production and export, research and development activities, and attraction of high-quality human resources; and may comprise multiple functional zones.

5. Integrated logistics zone means a functional zone with defined geographical boundaries, attached to multimodal transport hubs; established under an ecosystem model and applying modern science and technology to provide logistics services in combination with goods production and processing activities and digital commerce and e-commerce activities. An integrated logistics zone may be an independent zone or part of a free trade zone.

6. Marine economy means all economic activities conducted at sea or directly related to the sea, including maritime economy; logistics; supporting industries for oil and gas activities and oil and gas services; exploitation of marine mineral resources, excluding oil and gas; energy and renewable energy; marine tourism and services; aquaculture and fishing; coastal industries; and other marine economic activities.

7. Open port zone means an area with defined geographical boundaries, comprising one or more seaports, and subject to specific customs regimes and procedures and sector-specific management in order to create the most favourable conditions for export, import and other foreign trade activities.

8. Special-grade urban region means an area of socio-economic development linkage comprising the City and provincial-level administrative units having administrative boundaries adjacent to the City.

9. Transit-oriented development (below referred to as TOD) means a solution for planning and investment in urban renovation, embellishment and development, taking railway connection points as focal points for population concentration, commercial and service business activities, offices and other functions.

10. TOD area means an area comprising railway stations, train stabling, maintenance and repair depots, and surrounding areas identified under relevant planning for railway construction in combination with urban renovation and embellishment and urban development investment.

11. Competent authority means a competent Party body that, according to the management hierarchy, has the authority to lead, direct and decide on undertakings and policies related to the contents prescribed in this Law.

Article 3. Principles of delegation of power and performance of delegated tasks and powers by the City administration

The delegation of power to the City administration and the performance of delegated tasks and powers by the City administration as prescribed in this Law must comply with the following principles:

1. Ensuring conformity with the Constitution and not contravening treaties to which the Socialist Republic of Vietnam is a contracting party;

2. Ensuring no prejudice to national defense, security, national external affairs, ethnic affairs, religious affairs and other fields directly related to national sovereignty;

3. Ensuring thorough and comprehensive delegation of power and clear delineation of the competence of the People’s Council, People’s Committee and Chairperson of the People’s Committee of the City. In addition to the tasks and powers prescribed in this Law, People’s Councils, People’s Committees and Chairpersons of People’s Committees at all levels of the City shall perform tasks and exercise powers prescribed by other relevant laws. Based on practical conditions, the People’s Council, People’s Committee and Chairperson of the People’s Committee of the City may decentralize to agencies, organisations and individuals the continuous and regular performance of one or more tasks and powers assigned by law to the respective decentralizing authority, except where decentralization is prohibited by law;

4. Ensuring human rights, fundamental rights of citizens, social justice and sustainable development, and preserving the identity and cultural values of the City and the special urban region; not affecting macroeconomic stability or national financial security; and respecting market rules;

5. Ensuring the unified, uninterrupted and efficient operation of the national administration; ensuring the competence and responsibility of agencies and their heads in association with the power control mechanism and implementation capacity; ensuring publicity, transparency and accountability, and effective power control and prevention and combat of corruption, waste and negative practices in association with the inspection, examination and supervision responsibilities of competent agencies; having mechanisms for monitoring, assessment and inspection in association with mechanisms to encourage and protect dynamic, innovative and creative cadres who dare to think, dare to act, dare to make breakthroughs and dare to take responsibility for the common interests; and promptly adjusting the contents of delegated powers where agencies, organisations or individuals to which power is delegated ineffectively perform the assigned tasks and powers.

Article 4. Principles of delegation of power and performance of delegated tasks and powers by local administrations in localities where special economic zones are located

1. The delegation of power to provincial-level local administrations in localities where special economic zones are located and the performance of delegated tasks and powers by provincial-level local administrations in localities where special economic zones are located must comply with the principles prescribed in Clauses 1, 2, 4 and 5, Article 3 of this Law. The performance of delegated tasks and powers by provincial-level People’s Councils, People’s Committees and Chairpersons of People’s Committees in localities where special economic zones are located under this Law shall apply only to special economic zones.

Based on practical conditions, provincial-level People’s Councils, People’s Committees and Chairpersons of People’s Committees in localities where special economic zones are located may decentralize to competent agencies, organisations and individuals in special economic zones the continuous and regular performance of one or more tasks and powers assigned to them in accordance with law, except where decentralization is prohibited by law.

2. The delegation of power and decentralization to commune-level local administrations in special economic zones (below referred to as local administrations in special economic zones) and the performance of delegated and decentralized tasks and powers by local administrations in special economic zones must comply with the principles prescribed in Clauses 1, 2, 4 and 5, Article 3 of this Law.

In addition to the tasks and powers prescribed in this Law, People’s Councils, People’s Committees and Chairpersons of People’s Committees in localities where special economic zones are located shall perform tasks and exercise powers prescribed by other relevant laws.

Article 5. Application of law

1. In cases where there are different provisions between the Law on Urban Development and other laws or resolutions of the National Assembly concerning the same matter, the provisions of the Law on Urban Development shall apply, except the case specified in Clause 3 of this Article and provisions of law in the fields of national defense and security.

2. Legal documents detailing this Law and prescribing specific measures for organising and guiding its implementation, and legal documents promulgated for the exercise of competence assigned under the Law on Urban Development (below referred to as documents implementing the Law on Urban Development) shall apply where multiple legal documents contain different provisions concerning the same matter.

3. In cases where legal documents of central state agencies, including documents prescribing mechanisms and policies applicable to other subjects or localities, promulgated after the effective date of the Law on Urban Development or after the effective date of documents implementing the Law on Urban Development, and provide mechanisms and policies that are more preferential or favourable than those prescribed in the Law on Urban Development or documents implementing the Law on Urban Development, their application shall be decided as follows:

a) For the City specified in Clause 2, Article 1 of this Law, the City People’s Council shall decide on such application;

b) For the cases specified in Clauses 3 and 4, Article 1 of this Law, the Government shall decide on such application.

4. The legal documents subject to a decision on application under Clause 3 of this Article do not include the Law on the Capital or documents implementing the Law on the Capital.

Chapter II

MECHANISMS AND POLICIES TO PROMOTE THE DEVELOPMENT OF SPECIAL-GRADE URBAN CENTERS

Section 1

ORGANISATIONAL APPARATUS, CIVIL SERVICE REGIME
AND PROMULGATION OF LEGAL DOCUMENTS

Article 6. Tasks and powers regarding organisational apparatus and civil service regime

1. The City People’s Council has the competence to:

a) Prescribe the number of, and criteria for determining the number of, commune-level People’s Council deputies; the proportion of full-time deputies of the City People’s Council and commune-level People’s Councils; the framework for the number of Deputy Heads of the Committees of the City People’s Council; and the number, functions, tasks and powers of the Committees of the City People’s Council and commune-level People’s Councils;

b) Prescribe the framework for the number of Vice Chairpersons of commune-level People’s Committees in conformity with urban management characteristics, population size, public service provision requirements and practical conditions of the City;

c) Prescribe the number, establishment, reorganisation and dissolution of specialized agencies and other administrative organisations under the management of the City; decide on the renaming and adjustment of functions of specialized agencies and other administrative organisations under the management of the City;

d) Prescribe the establishment, reorganisation, dissolution, naming and renaming of self-governing organisations of residential communities; and the number, titles, regimes and policies applicable to part-time workers in self-governing organisations of residential communities;

dd) Prescribe the recruitment of civil servants and public employees and job positions of civil servants and public employees under the management of the City;

e) Prescribe the hiring, recruitment and appointment of heads of public non-business units and managers of state enterprises under the management of the City;

g) Prescribe income policies applicable to cadres, civil servants, public employees, persons working and employees at state agencies, political organisations, socio-political organisations, public non-business units and a number of associations assigned tasks by the Party and the State under the management of the City, and persons working at a number of central agencies located in the City; and the use of the City’s budget and other lawful financial sources for implementation of these policies;

h) Prescribe the conclusion of contracts for performance of professional work within the balancing capacity of the City’s budget;

i) Decide on the number and structure of members of the City People’s Committee; prescribe the number and structure of members of commune-level People’s Committees;

k) Decide on the total payroll not exceeding 20% of the payroll of civil servants and public employees assigned by the central level, on the condition that the City itself balances and pays salaries from the City’s budget, ensuring actual workload requirements, except where otherwise decided by the competent authority.

2. The City People’s Committee shall prescribe:

a) Policies and measures for implementation of digital administration and digital civil service;

b) Mechanisms and measures to promote grassroots democracy and mobilize people’s participation in local governance; work contracting mechanisms; and other necessary mechanisms and measures to promote the self-governing role of self-governing organisations of residential communities;

c) The establishment, reorganisation, transformation and dissolution; organisational structure and autonomy regime of public non-business units under the management of the City in conformity with urban management characteristics, population size, public service provision requirements and practical conditions of the City;

d) The framework for the number of deputy heads of specialized agencies, other administrative organisations and public non-business units under the management of the City;

dd) The use and management of civil servants and public employees under the management of the City;

e) The assignment of competence of the City People’s Committee to the Chairperson of the City People’s Committee, except matters which the City People’s Committee shall collectively discuss and decide in accordance with the law on organisation of local administration.

Article 7. Formulation and promulgation of legal documents

1. Documents implementing the Law on Urban Development specified in Clause 2, Article 5 of this Law may contain provisions different from those of legal documents promulgated by central state agencies.

2. When performing the tasks and exercising the powers of local administrations in accordance with law, the City People’s Council, City People’s Committee and Chairperson of the City People’s Committee may promulgate legal documents to:

a) Adjust the order, procedures and competence for settling administrative procedures currently prescribed in legal documents of central state agencies for the performance of tasks and exercise of powers by agencies and organisations of the City, ensuring administrative reform requirements and facilitating organisations and individuals through the simplification of administrative procedures and the application of science, technology, innovation and digital transformation in settling administrative procedures, without adding dossier components or increasing the requirements, conditions or time for settlement of the administrative procedures currently applied;

b) Prescribe special measures suitable to the City’s development requirements for organising and guiding the implementation of laws and resolutions of the National Assembly, where such measures are different from, or have not yet been provided for in, regulations of the Government, Prime Minister, ministries or ministerial-level agencies.

3. The promulgation of legal documents specified in Clauses 1 and 2 of this Article shall not apply to the fields of national defense and security.

4. The promulgation of legal documents specified in Clause 1 and Point b, Clause 2 of this Article shall comply with the following provisions:

a) Assess the necessity, balance and reasonableness of promulgating a document containing provisions different from those of documents of central state agencies or on matters not yet provided for by the Government, Prime Minister, ministries or ministerial-level agencies; clearly identify the objectives and expected results of promulgating the document, inspection and supervision mechanisms, and accountability;

b) Assess the conformity of the document with Article 3 or Article 4 of this Law;

c) Assess the impacts of policies in the draft document;

d) Consult ministries, ministerial-level agencies and other related agencies and organisations on the draft document; collect opinions from subjects directly affected by the document; communicate its contents; publish the dossier of the draft document and the contents of receipt of and explanations concerning consultation opinions and comments of agencies, organisations and individuals on the draft document;

dd) Comply with the order and procedures prescribed by the law on legal documents. The simplified order and procedures shall not apply, except in cases of suspension of the effect of the whole or part of the document or annulment of the document.

5. The City People’s Council shall prescribe the determination of competence to promulgate legal documents specified in Clause 2 of this Article and detail Clause 4 of this Article.

6. The City People’s Council shall prescribe the promulgation of resolutions constituting legal documents to decide on the selection of applicable law specified at Point a, Clause 3, Article 5 of this Law. A resolution on selection of applicable law must clearly identify the provisions of the legal document selected for application, the scope and subjects of application, the time of application, and transitional provisions (if any).

7. The Government shall prescribe the promulgation of legal documents by administrations of cities falling into the case specified in Clause 3, Article 1 of this Law, provincial-level local administrations in localities where special economic zones are located, and local administrations in special economic zones for the implementation of this Law.

Article 8. Pilot implementation of mechanisms and policies

1. The City may decide on the pilot implementation of new mechanisms and policies that are different from laws or resolutions of the National Assembly, or mechanisms and policies concerning matters not yet prescribed by law, for application in the City.

Pilot implementation of mechanisms and policies shall not be conducted in the fields of national defense, security, national external affairs, religion and other fields directly related to national sovereignty as prescribed by law.

2. The pilot implementation of mechanisms and policies must comply with the following principles:

a) Conforming with the Constitution and not contravening treaties to which the Socialist Republic of Vietnam is a contracting party;

b) Not restricting human rights, fundamental rights of citizens, or lawful rights and interests of organisations and individuals; ensuring an equal investment and business environment and fair competition; ensuring publicity and transparency;

c) Not prejudicing national defense, security or national external affairs; ensuring social order and safety;

d) Not adversely affecting public health, social morality or fine customs and traditions; not affecting the State’s policy on great national unity or religious policy;

dd) The pilot period shall not exceed 05 years and may be extended for no more than 05 years.

3. The scope of pilot implementation of mechanisms and policies includes:

a) New models for organisation of the apparatus of all levels of the City administration, and advanced and modern governance and enabling models; civil service and civil servant regimes;

b) New economic models based on science, technology, innovation, digital transformation, education, training, culture, sports, tourism, medical services  and health care;

c) Models of ecological agriculture, hi-tech agriculture, urban agriculture and agriculture with reduced greenhouse gas emissions;

d) Models of urban and rural management, spatial management and sustainable development;

dd) Methods of effectively exploiting, mobilising, allocating and using resources for development and governance of the City;

e) Solutions for handling issues seriously and directly affecting the quality of life of the people or the socio-economic development of the City;

g) Other mechanisms and policies as directed by the competent authority.

4. Based on the approval of the competent authority, the City People’s Council shall promulgate a resolution on pilot implementation of mechanisms and policies, clearly specifying the objectives, scope, subjects, contents, duration, space and geographical area of the pilot implementation; expected results and impacts of the pilot implementation; rights, obligations and responsibilities of related agencies, organisations and individuals; risk governance measures; control, supervision and evaluation mechanisms; and conditions and procedures for adjustment, extension or termination of the pilot implementation.

5. The City People’s Committee shall:

a) Submit to the City People’s Council for promulgation a resolution on pilot implementation of mechanisms and policies.

In cases where a proposal for pilot implementation of mechanisms and policies affects the special urban region, the City People’s Committee shall assess the regional and national socio-economic impacts and seek opinions of provincial-level People’s Committees of relevant localities before submitting it to the City People’s Council for consideration and decision;

b) Organise the implementation of the resolution on pilot implementation of mechanisms and policies; ensure coordination among related agencies, organisations and individuals;

c) Handle, or propose the handling of, issues arising during implementation; suspend the pilot implementation and report to the City People’s Council for consideration and decision in cases where the pilot implementation has negative impacts exceeding the forecast level;

d) Submit annual periodic evaluation reports or reports as requested by the City People’s Council and competent agencies on the situation and results of pilot implementation;

dd) Organise the evaluation of pilot implementation results, determine the level of achievement of objectives, effectiveness and impacts on the development of the City and the special urban region; propose the City People’s Council to decide on the adjustment, extension or termination of the pilot implementation;

e) Submit to, or propose to, competent agencies the amendment, supplementation or promulgation of new legal documents for official implementation.

6. The formulation and promulgation of resolutions on pilot implementation of mechanisms and policies shall comply with Clauses 4 and 5, Article 7 of this Law.

Article 9. Socialization of professional and operational activities supporting the settlement of administrative procedures

1. The socialization of professional and operational activities supporting the settlement of administrative procedures must comply with the following principles:

a) Ensuring effectiveness and efficiency in state management; not changing the competence or responsibilities of state agencies in settling administrative procedures; not transferring state management competence to non-state individuals or organisations; and not increasing the payroll of the administrative apparatus;

b) Ensuring the right of organisations and individuals to choose in carrying out administrative procedures;

c) Ensuring publicity, transparency, objectivity and control; information security and data protection; and the lawful rights and interests of organisations and individuals;

d) Saving time for organisations and individuals; and promoting the application of science, technology, innovation and digital transformation in settling administrative procedures.

2. The City People’s Council shall prescribe:

a) A controlled socialization mechanism for professional and operational activities supporting the settlement of administrative procedures in order to improve the quality of public service provision in conformity with urban management characteristics, population size, public service provision requirements and practical conditions of the City;

b) The price framework for services supporting the settlement of administrative procedures; preferential and support policies and other resources to ensure implementation of the socialization mechanism specified at Point a of this Clause.

3. The Chairperson of the City People’s Committee shall decide on professional and operational activities supporting the settlement of administrative procedures to which the socialization mechanism prescribed by the City People’s Council shall apply; organise inspection and evaluation of implementation effectiveness; and handle violations within his/her competence.

Section 2

PLANNING, CONSTRUCTION, URBAN DEVELOPMENT
AND URBAN ORDER AND SAFETY

Article 10. Planning of the City

1. City master plan:

a) Only one City master plan shall be formulated for the City on the basis of concretizing the viewpoints, vision and development objectives of national-level planning and regional planning, and integrating, incorporating and replacing the City Planning and the City General Planning. The City master plan shall have the same legal validity as provincial planning and city general planning in accordance with law;

b) The City master plan may only be adjusted where a higher-level planning is changed and such change directly affects the City master plan, or for national interests or particularly important public interests, national defense or security requirements, or where there are major changes in natural or socio-economic conditions, or to implement requirements of the Executive Committee of the City Party Committee, except in cases of partial adjustment.

2. The City People’s Council shall prescribe:

a) The contents, dossier components, cost norms, order and procedures for formulation, appraisal and approval of the City master plan; approval of adjustments to the City master plan; publication, provision of information, implementation and evaluation of the City master plan; and partial adjustment of the City master plan, including the case specified at Point c, Clause 1, Article 45 of this Law (if any).

Before approval of the City master plan or adjustments to the City master plan, opinions must be obtained from the Ministry of Public Security, Ministry of National Defense, Ministry of Finance, Ministry of Construction, Ministry of Agriculture and Environment, provincial-level People’s Committees of adjacent localities, residential communities, and related agencies, organisations and individuals;

b) Types of planning, urban and rural planning activities, and architectural activities.

3. The Chairperson of the City People’s Committee is competent to approve the City master plan and adjustments to the City master plan after they are adopted by the City People’s Council.

Article 11. Management, development, exploitation and use of underground space, low-altitude space and high-altitude space

1. The management, development, exploitation and use of underground space, low-altitude space and high-altitude space must comply with the following principles:

a) Ensuring conformity with natural, meteorological, geological, geomorphological and hydrological conditions; ensuring safety during use and after the end of use;

b) Conforming with the City master plan;

c) Ensuring national defense and security; prioritizing dual-use works capable of being readily converted to serve national defense and security needs; preserving cultural spaces and environmental landscapes, historical-cultural relics and scenic places;

d) Ensuring synchronous connectivity among works;

dd) Encouraging and creating favourable conditions for investment in projects exploiting and using underground space, low-altitude space and high-altitude space.

2. Underground space, low-altitude space and high-altitude space must be planned and functionally zoned for management, development, exploitation and use.

3. The City People’s Council shall prescribe:

a) The formulation, appraisal, approval and approval of adjustments to underground space planning, low-altitude space planning and high-altitude space planning.

The approval and approval of adjustments to such planning shall be carried out after obtaining the consent of the Ministry of National Defense and the Ministry of Public Security, obtaining opinions from the Ministry of Construction and the Ministry of Finance, and consulting residential communities and related agencies, organisations and individuals;

b) The depth limit underground within which land users may use the underground space in conformity with planning without having to make payments for use of underground space;

c) The use of underground space beyond the depth limit specified at Point b of this Clause; payment, exemption from and reduction of payments for use of underground space;

d) The use of underground space, low-altitude space and high-altitude space where underground space planning, low-altitude space planning and high-altitude space planning have not yet been formulated, provided that the lawful rights and interests of land users are ensured;

dd) Compensation and support policies for organisations and individuals whose lawful rights and interests are affected by the exploitation and use of underground space, low-altitude space and high-altitude space in the public interest;

e) Incentive, support and encouragement policies for investment in, development and exploitation of underground works, low-altitude space and high-altitude space;

g) Revenues from the exploitation and use of underground space, low-altitude space and high-altitude space.

4. The City People’s Committee shall prescribe measures for management, exploitation and use of underground space, low-altitude space and high-altitude space; and management of infrastructure, technologies and means operating in underground space, low-altitude space and high-altitude space.

Article 12. Urban and housing management

1. Investment in construction, renovation, embellishment and reconstruction of urban areas, and housing development in the City must comply with the following principles:

a) Developing urban areas and housing areas toward modernity and convenience, in synchrony with the development of technical infrastructure and social infrastructure;

b) Conforming with planning, architectural management regulations or urban design; ensuring construction and fire prevention and fighting standards and technical regulations;

c) Protecting cultural, historical, natural, architectural and landscape heritage; protecting and developing green spaces and water spaces;

d) Ensuring harmony of interests among the people, the State and enterprises; prioritizing on-site resettlement; improving urban amenities, the living environment and livelihoods of residents in renovation and embellishment areas;

dd) Prioritizing and supporting organisations and residential communities in proposing and implementing by themselves projects on urban renovation, embellishment and reconstruction.

2. The City People’s Council shall prescribe:

a) Policies, measures, criteria and conditions for implementation of projects on urban renovation, embellishment and reconstruction in the City;

b) Policies and preferential mechanisms regarding investment, construction, management, maintenance and operation to support the development of social housing, official-duty housing, resettlement housing, accommodation facilities, rental housing and other types of housing;

c) Mechanisms, policies and measures for renovation and reconstruction of condominiums in the City.

3. The City People’s Committee has the competence to:

a) Prescribe the order and procedures for investment, construction and housing development, except commercial housing;

b) Prescribe that persons subject to recovery of houses and residential land who are provided with social housing for resettlement shall, after fully paying the purchase price as prescribed, be recognised as having full ownership rights over such housing equivalent to those applicable to commercial housing;

c) Prescribe the competence and contents of fire prevention and fighting inspection in the construction sector in conformity with the practical conditions of the City;

d) Decide on conversion among commercial housing, social housing and resettlement housing for flexible use to meet the actual needs of the people; and conversion of use functions among types of housing constituting public property under the management of the City to meet management and use requirements;

dd) Decide on direct appointment of project owners to implement social housing, rental housing and accommodation projects on State-managed land areas or other types of land where such land areas conform with urban and rural planning or are determined by the competent planning agency to be suitable for construction of social housing, rental housing and accommodation, without requiring satisfaction of the conditions prescribed by the land law; land allocation, land lease and permission for change of land use purpose shall be based on the decision on direct appointment of the project owner for the social housing, rental housing or accommodation project.

Article 13. Transit-oriented development

1. The City People’s Council shall prescribe:

a) Policies on urban development in TOD areas, including the use of the City budget to implement independent public investment projects for compensation, support and resettlement for land recovery, urban embellishment and development, resettlement, creation of land areas for auction of land use rights to implement investment projects on urban development, commerce and services in accordance with law, or for payment to investors implementing railway projects under Build-Transfer (BT) contracts in accordance with the law on public-private partnership investment;

b) Land use norms, economic-technical norms, planning land use norms and requirements on spatial organisation in TOD areas that are different from, or have not yet been prescribed in, national technical regulations on urban and rural planning, on the basis of synchronous exploitation of underground space and low-altitude space, without overloading technical infrastructure and social infrastructure systems and ensuring infrastructure connectivity within the area; prioritising ground-level space for public spaces, greenery and urban quality of life;

c) The formulation, appraisal, approval and adjustment of plans on routes and locations of works along local railway lines, and planning of TOD areas;

d) The transfer of planning land use norms within TOD areas;

dd) Methods for determining revenues, revenue levels, competence, order and procedures for collection of revenues in TOD areas from additional construction floor areas of civil works projects resulting from increases in planning land use norms or economic-technical norms, revenues from exploitation of increased land value, infrastructure improvement charges, revenues from exploitation of local railway infrastructure assets, public transport connection charges, and other revenues for development of the local railway system and synchronous connection of transport infrastructure within TOD areas.

2. The City People’s Committee shall prescribe the organisation of management and exploitation of technical infrastructure and social infrastructure systems within TOD areas.

3. The Chairperson of the City People’s Committee has the competence to:

a) Organise the formulation, appraisal, approval and adjustment of plans on routes and locations of works along local railway lines, and planning of TOD areas;

b) Decide on investment in construction of housing, commercial and service works, public service works and public works; and decide specifically on land use norms, economic-technical norms and planning land use norms within TOD areas in accordance with regulations of the City People’s Council specified at Point b, Clause 1 of this Article.

4. Housing, commercial and service works, public service works and public works in railway station areas and train maintenance and repair depots may be sold, transferred, leased, lease-purchased or subleased in accordance with law during the operation term of the project.

Article 14. Development of transport and logistics infrastructure and environmental protection

1. The City People’s Council shall prescribe policies and measures on:

a) Investment in and mobilisation of resources for synchronous construction, development, exploitation and maintenance of technical infrastructure and transport infrastructure systems, including infrastructure for regional linkage and development, logistics infrastructure and public underground works; and application of high technologies in management and operation of transport and logistics systems;

b) Development of public passenger transport systems, coach stations and multi-functional parking facilities;

c) Development of seaport infrastructure, inland waterway infrastructure and waterway transport;

d) Development of transport infrastructure using clean energy and non-motorised transport; support for conversion of means of transport from fossil fuels to clean energy, and criteria, order and procedures for implementation thereof; and restriction on the use of means of transport with emissions causing environmental pollution;

dd) Reduction of plastic emissions from production, business, service and daily-life activities in the City; treatment, production, business, service and consumption activities related to waste recycling using the best available techniques; and solid waste management throughout the generation-collection-transport-treatment chain;

e) Incentives and support for production and business activities in the City applying circular economy and green economy models in the fields of transport, environmental industry and environmental services;

g) Restriction of private means of transport from entering central areas of the City to reduce traffic congestion and emissions; and application of traffic congestion charges;

h) Relocation of production establishments in residential areas, production establishments engaged in sectors and occupations not encouraged for development in rural craft villages; and ports, terminals, warehouses, yards, production establishments and business establishments no longer conforming with the City’s urban development planning, environment and landscape;

i) The roadmap for transition to and development of green transport, the scope of low-emission zones for restricting means of transport in order to improve air quality, and measures to be applied in low-emission zones according to an appropriate roadmap;

k) Criteria for eco-industrial parks and eco-industrial clusters in the City, and the roadmap, mechanisms and policies supporting conversion of operating industrial parks and industrial clusters into eco-industrial parks and eco-industrial clusters.

2. The City People’s Committee has the competence to:

a) Prescribe the management, exploitation and use of road works, inland waterway works, local railways, ports and terminals under the City’s management for purposes other than transport purposes, in conformity with requirements for assurance of traffic order and safety and urban aesthetics;

b) Prescribe operating conditions, technical requirements, management organisation and pricing mechanisms for transport modes and new passenger transport models not yet prescribed by law;

c) Decide on construction of temporary works not based on planning, including terminals and yards, smart parking facilities, toilets, electric charging stations, inland waterway terminals and other temporary works on public land managed by the State, road land, road safety corridors, park land, protection corridors of rivers, canals and creeks, and other areas, in conformity with requirements for assurance of traffic order and safety, urban order, urban aesthetics and unobstructed water flow, without causing riverbank erosion;

d) Exercise state management over investment in construction of maritime infrastructure, excluding maritime channels and maritime activities in seaport waters, within the administrative boundaries of the City;

dd) Classify and adjust the classification of sections of national highways and inland waterways that have been transferred or assigned to the City for management;

e) Control the operation of means of transport based on the extent to which they cause traffic congestion and the capacity of existing transport infrastructure, in association with requirements for urban order management, green transition and assurance of traffic order and safety;

g) Promulgate fares for public passenger transport modes and integrated multimodal fares.

3. The Chairperson of the City People’s Committee has the competence to:

a) Decide, by placement of orders, on treatment of additional volumes of domestic solid waste by investors currently implementing domestic solid waste treatment projects where they voluntarily convert project technologies to domestic solid waste treatment technologies with energy recovery;

b) Decide on selection of service providers for collection, transport and treatment of domestic solid waste and for public passenger transport through placement of orders, bidding or assignment of tasks; and proactively determine service provision periods to ensure continuity and conformity with the City’s practical conditions;

c) Prescribe service prices and the collection thereof for collection, transport and treatment of domestic solid waste payable by waste source owners, households and individuals.

Article 15. Investment in construction of works

1. The City People’s Committee has the competence to:

a) Decide on the appraisal and inspection of acceptance testing of construction works falling within the City’s management competence;

b) Prescribe works exempt from construction permits;

c) Prescribe the proportions and roadmap for use of new construction materials, recycled materials, green materials, lightweight materials, smart materials, environmentally friendly materials and materials suitable for coastal and island areas that are prioritized for application in conformity with the characteristics of works and the City’s practical conditions; and decide on prioritization of design solutions that limit the use of traditional materials, reduce emissions and save resources.

2. The Chairperson of the City People’s Committee shall decide on:

a) The formulation, appraisal and decision on investment in public investment projects and PPP projects that are large and important projects specified at Points a and c, Clause 2, Article 2 of this Law, without having to carry out procedures for formulation, appraisal and decision on investment policy and other procedures related to the decision on investment policy;

b) Permitting the project owner or investor to organise the formulation, appraisal and approval of construction designs and construction cost estimates for implementation after a public investment project or PPP project that is a large and important project has received an investment decision or approval decision; division into component projects and subprojects irrespective of the requirement for independent operation of the public investment project or PPP project; and concurrent implementation of project preparation, survey, design and project implementation steps;

c) Exemption from procedures for grant of construction operation permits in the City for foreign contractors implementing large and important projects.

3. A public investment project for which public investment capital from the local budget exceeds the public investment capital amount stated in the investment policy by no more than 10%, or a PPP project for which the value of state capital from the local budget increases by no more than 10% compared with that stated in the investment policy approved by a competent agency or person of the City, shall not be required to undergo adjustment of investment policy.

Article 16. Assurance of order and safety in the City

1. The City People’s Council shall prescribe:

a) Titles and competence to sanction administrative violations different from those prescribed by the law on handling of administrative violations; and competence to impose corresponding administrative fines specified at Point b of this Clause;

b) Administrative fine levels in the City higher than, but not exceeding twice the general fine levels prescribed by the Government, and the corresponding competence to impose such fines, for corresponding administrative violations in the fields of security, order and social safety; fire prevention and fighting, rescue and salvage; environmental protection; culture; advertising; land; construction and housing; road traffic; railway traffic; inland waterway traffic; road activities; food safety; prevention and control of animal diseases; animal husbandry and veterinary medicine in the City.

2. The City People’s Council shall prescribe suspension of electricity and water supply services to works and production and business establishments in order to ensure security, order and social safety in the City in the following cases:

a) Works constructed contrary to planning; works constructed without construction permits where construction permits are required by law, or constructed inconsistently with the contents of construction permits; works constructed inconsistently with approved construction designs where construction permits are exempted;

b) Works constructed on encroached or occupied land in accordance with the land law;

c) Works subject to fire prevention and fighting design approval or appraisal but for which construction is organised before obtaining a certificate, design approval document or design appraisal document on fire prevention and fighting from the specialised management agency;

d) Works constructed inconsistently with fire prevention and fighting designs that have been approved or appraised;

dd) Dance hall service establishments and karaoke service establishments failing to satisfy fire prevention and fighting safety conditions;

e) Production and business establishments and construction works committing violations in the field of environmental protection but failing to comply with requirements to cease the violating acts, decisions of competent agencies on suspension of operations, or remedial measures;

g) Works subject to demolition for which competent agencies have issued emergency relocation decisions.

3. The City People’s Council shall prescribe other special measures to ensure social order and safety and environmental protection, and urgent administrative measures appropriate to the requirements for protection of the City, ensuring the effectiveness of urban management and harmonising the requirement to maintain security and social order with protection of the lawful rights and interests of organisations and individuals.

4. The Chairperson of the City People’s Committee and Chairpersons of commune-level People’s Committees shall decide on application of the measures specified in Clauses 2 and 3 of this Article.

5. Electricity and water service providers shall immediately suspend service provision upon request of the competent persons specified in Clause 4 of this Article, and such suspension must be limited to the proper scope, subjects and duration. The right of electricity and water service providers to suspend electricity and water supply services in the cases specified in Clause 2 of this Article must be notified to service users and stated in electricity and water service contracts.

Amendment and supplementation of contracts for implementation of this Clause shall not be required to be re-registered in accordance with the law on standard-form contracts and general transaction conditions.

Section 3

ECONOMIC DEVELOPMENT

Article 17. Development of state-owned enterprises and management and investment of state capital in enterprises

1. An enterprise established on the basis of reorganisation of a local development investment fund, in which the State holds 100% of the charter capital and for which the City People’s Committee acts as the owner’s representative agency, may mobilise capital, provide loans, entrust and receive entrustment, invest in projects, and use the remaining profits after making appropriations to funds in accordance with the law on local development investment funds; other forms of investment and other activities shall comply with the law on management and investment of state capital in enterprises.

2. The City People’s Council shall decide on the criteria, list and proportion of state capital in enterprises as the basis for arrangement and restructuring of state capital; and the investment policy for state capital investment to supplement capital in enterprises with state capital for which the City People’s Committee acts as the owner’s representative agency.

3. The City People’s Committee shall decide on hiring an independent audit organisation to perform supervisory work for the owner’s representative agency in accordance with the law on management and investment of state capital in enterprises with respect to enterprises in which the State holds 100% of the charter capital; expenses for hiring the independent audit organisation shall be paid by the enterprise.

4. Establishment, organisation and operation of local railway enterprises:

a) The City People’s Committee shall decide on establishment of a local railway enterprise in which the State holds 100% of the charter capital after a policy decision thereon is made by the City People’s Council;

b) A local railway enterprise in which the State holds 100% of the charter capital may commercially exploit assets, underground space, low-altitude space and high-altitude space associated with local railway infrastructure at railway stations and train maintenance and repair depots, and perform other activities under decisions of the City People’s Committee;

c) A local railway enterprise in which the State holds 100% of the charter capital may perform a number of state management tasks in accordance with regulations of the City People’s Council and decisions of the City People’s Committee.

Article 18. Development of the marine economy

1. The City People’s Council shall prescribe:

a) Special and outstanding incentive and support mechanisms and policies for development of infrastructure and new and key marine economic sectors and fields with spillover effects;

b) The list of sectors and fields of marine economic development entitled to incentive and support mechanisms and policies specified in Article 39 of this Law;

c) The organisation and operation of open port zones.

2. The Chairperson of the City People’s Committee shall decide on the organisation of selection of strategic investors for projects in the field of the marine economy in accordance with regulations of the City People’s Council and relevant laws, except seaport projects for which, as prescribed by law, the City must report to the Prime Minister before deciding on selection of strategic investors.

Article 19. Mechanisms and policies to promote development of sea reclamation urban areas

1. Investment in, construction and development of sea reclamation urban areas formed through sea reclamation activities must comply with the following principles:

a) Conforming with the City master plan, provincial planning or city general planning and other relevant planning; ensuring synchronisation with the urban system and infrastructure of the area;

b) Investment in and construction of sea reclamation urban areas must ensure national defense and security, sovereignty, sovereign rights, jurisdiction and national interests at sea; and must not obstruct traffic, maritime activities, lawful exploitation and use of marine resources, or other lawful socio-economic activities in accordance with law;

c) Investment in, construction and development of sea reclamation urban area projects must be carried out on the basis of comprehensive assessment of natural, geological, geomorphological, hydrological and oceanographic conditions, currents, wave regimes, sediment, ecosystems and biodiversity; assessment of project impacts on coastal and adjacent areas; and assurance of adaptability to climate change, sea level rise, natural disasters and other environmental impacts throughout the project life cycle;

d) Sea reclamation urban areas must be planned, invested in and constructed in a modern, green and smart manner, with efficient use of marine and land resources and energy saving, ensuring resilience and safety of technical infrastructure and social infrastructure systems; and concurrently ensuring connectivity with transport, electricity supply, water supply, drainage, wastewater treatment, waste treatment and other essential infrastructure systems on land;

dd) Ensuring harmony of interests among the State, investors, communities and other related stakeholders; and ensuring public spaces, public infrastructure works and people’s right of access to the sea in accordance with law;

e) Investment in, construction and putting into exploitation and use of sea reclamation urban areas must be carried out in phases appropriate to the scale, infrastructure capacity and requirements for assurance of work safety and environmental protection. Investors shall be responsible for management, operation, upkeep and maintenance of sea reclamation works and technical infrastructure works within project areas and sea reclamation urban areas; and shall fully implement measures for environmental protection, natural disaster prevention and control, and remediation of adverse impacts arising in accordance with law;

g) Complying with this Law and other relevant laws where this Law contains no relevant provisions.

2. The Government shall prescribe criteria for investment projects on construction of sea reclamation urban areas for attraction of strategic investors, and conditions for determining strategic investors entitled to the mechanisms and policies specified in this Law.

3. A strategic investor implementing an investment project on construction of a sea reclamation urban area means an investor selected to implement the project in accordance with Clause 5 or Clause 6, Article 36 of this Law and shall be entitled to the following incentives and support:

a) Those specified at Points b, c and d, Clause 7, Article 36 of this Law;

b) An operation term of the investment project on construction of the sea reclamation urban area not exceeding 70 years.

4. Strategic investors have the following obligations:

a) Comply with Points a, b and d, Clause 8, Article 36 of this Law;

b) Not transfer the entire project before completion of the project. A project may be partially transferred, provided that the principles and conditions for transfer under the law on investment and the law on real estate business are satisfied, and the transferred portion of the project does not exceed 50% of the sea reclamation land area for which the entire framework technical infrastructure system has been completed.

5. During implementation of an investment project, the City People’s Committee and the investor shall comply with Clauses 9, 10 and 11, Article 36 of this Law.

6. Mineral exploitation serving an investment project on construction of a sea reclamation urban area that is a project for attraction of strategic investors shall be carried out as follows:

a) An investment project on construction of a sea reclamation urban area may apply mineral exploitation mechanisms and policies prescribed by the law on geology and minerals as applicable to key works and projects and works and projects of national importance; an environmental impact assessment report for exploitation of sea sand serving the investment project on construction of the sea reclamation urban area must be prepared, appraised and approved;

b) The Chairperson of the City People’s Committee shall decide on assignment of sea areas for mineral exploitation serving investment projects on construction of sea reclamation urban areas for mineral mines whose exploitation areas fall within the administrative boundaries of the locality and within the territorial sea, after obtaining the agreement of the Ministry of National Defense, the Ministry of Public Security and the Ministry of Foreign Affairs, obtaining opinions from the ministry responsible for specialized state management of minerals.

Assignment of sea areas shall comply with the principles and grounds prescribed by the law on marine and island resources and environment.

7. The City People’s Committee shall decide on economic-technical norms and planning land use norms in sea reclamation urban areas where such norms have not yet been prescribed or where higher requirements are imposed than those prescribed in national technical regulations on urban and rural planning, provided that requirements for technical infrastructure and social infrastructure systems are satisfied.

8. The management and use of sea areas; land allocation and land lease; determination of land prices; financial obligations regarding land; land registration; grant of Certificates of land use rights and ownership of land-attached assets; and rights and obligations of land users in sea reclamation urban areas shall comply with the Land Law and other relevant laws.

Article 20. Development of service and trade sectors

The City People’s Council shall prescribe:

1. The scope, list, mechanisms and policies on priority, incentives and investment support applicable to service sectors, fields and models and forms of spatial organisation for services in the City;

2. The scope, mechanisms and policies on incentives and investment support applicable to Outlet models associated with integrated services; systems of duty-free shops and value-added tax refund shops; and other integrated commercial and service models in the City;

3. The order and procedures for application of the mechanisms and policies specified in this Article.

Article 21. Development of free trade zones and integrated logistics zones

1. The City People’s Council shall prescribe:

a) The order and procedures for establishment and adjustment of boundaries, areas and other contents related to the organisation and operation of free trade zones and integrated logistics zones;

b) Mechanisms and policies on management, organisation, operation, investment incentives, trade facilitation, improvement of the business environment, and other special policies arising during the operation of free trade zones and integrated logistics zones.

2. The City People’s Committee shall decide on assignment of state management tasks and powers regarding free trade zones and integrated logistics zones to specialised agencies and other administrative organisations under the City People’s Committee.

3. The Chairperson of the City People’s Committee shall decide on:

a) Establishment and adjustment of names, boundaries, areas, objectives, functions and other contents related to the organisation and operation of free trade zones and integrated logistics zones.

Decisions on establishment or adjustment of boundaries, areas or functions of free trade zones and integrated logistics zones shall be regarded as decisions on partial adjustment of the City master plan and other relevant planning;

b) Establishment of non-tariff zones within free trade zones and integrated logistics zones after obtaining opinions from the Ministry of Finance;

c) Land allocation and land lease without auction of land use rights and without bidding for investor selection for implementation of land-using projects with respect to investment projects in free trade zones specified at Point l, Clause 1, Article 36 of this Law, except investment projects on construction of commercial housing.

4. The head of the regional customs authority managing free trade zones and integrated logistics zones has the competence to:

a) Decide on recognition, extension, temporary suspension and suspension of application of the priority regime to enterprises conducting production and business activities in free trade zones and integrated logistics zones;

b) Decide on establishment, temporary suspension and termination of operation of bonded warehouses, less-than-container-load cargo collection sites, and sites for gathering, inspection and supervision of exported and imported goods in free trade zones and integrated logistics zones;

c) Exercise other powers in accordance with the law on customs.

5. Investment and business activities in free trade zones and integrated logistics zones:

a) Foreign investors in free trade zones and integrated logistics zones may conduct merchanting trade in goods and temporary import for re-export of goods. The order and procedures for grant of merchanting trade licences shall comply with the law on foreign trade management;

b) Enterprises having their head offices and conducting production and business activities in free trade zones may post, quote, determine and state prices in contracts in foreign currencies; and make and receive payments in foreign currencies by account transfer for transactions involving provision of goods and services with partners within free trade zones;

c) Foreign bank branches may open transaction offices in free trade zones outside their branch offices in accordance with the conditions, dossiers, procedures and scope of operations prescribed by the Governor of the State Bank of Vietnam.

6. For functional zones within free trade zones and integrated logistics zones that satisfy the conditions applicable to non-tariff zones under law, goods and services purchased, sold or exchanged among such functional zones, between foreign countries and such functional zones, between such functional zones and non-tariff zones, or between such functional zones and functional zones of other free trade zones or integrated logistics zones that satisfy the conditions applicable to non-tariff zones, shall be subject to tax policies applicable to non-tariff zones in accordance with the Law on Export Duty and Import Duty, the Law on Excise Tax and the Law on Value-Added Tax.

Purchase, sale and exchange of goods and services between functional zones within free trade zones and integrated logistics zones that satisfy the conditions applicable to non-tariff zones and areas outside such zones, except functional zones satisfying the conditions applicable to non-tariff zones in other free trade zones or integrated logistics zones, shall constitute export and import relations in accordance with the laws on customs, tax and foreign trade management.

7. In cases where an integrated logistics zone is located within a free trade zone, the mechanisms and policies applicable to both the integrated logistics zone and the free trade zone shall apply.

8. Enterprises conducting production and business activities in free trade zones and integrated logistics zones shall be entitled to the priority regime for customs procedures in accordance with the law on customs and tax procedures in accordance with the law on tax for exported and imported goods brought into or out of free trade zones and integrated logistics zones, where they satisfy the conditions for application of the priority regime under the laws on customs and tax, except conditions regarding export and import turnover and requirements on duration, if any, for application of the priority regime, and shall carry out customs procedures at the customs unit managing the free trade zones and integrated logistics zones.

9. Foreign investors establishing economic organisations in free trade zones shall not be required to carry out procedures for grant of investment registration certificates before establishment of such economic organisations and shall not be required to have investment projects.

10. The operation term of investment projects on construction and commercial operation of infrastructure of functional zones within free trade zones, and projects of investors subleasing land in free trade zones, shall be the same as that applicable to investment projects in economic zones in accordance with the law on investment.

Article 22. Development of non-tariff zones

1. Foreign trade management measures shall not apply, except measures prohibiting import, temporarily suspending import, and quarantine measures, to goods brought from abroad into non-tariff zones. This provision shall not apply where the ministry responsible for specialised management issues a food safety warning concerning risks that may endanger human health or life, cause environmental pollution, affect social morality or fine customs and traditions, endanger the economy, or affect orientations for assurance of national defense and national security, or where a competent agency issues a written notice on suspension of application of the exemption from specialised inspection.

Foreign trade management measures shall not apply to goods purchased, sold or transported between enterprises within the same non-tariff zone or between non-tariff zones.

2. Exchange of goods between one non-tariff zone and another, or between a non-tariff zone and foreign countries, constitutes transport of goods subject to inspection and supervision by customs authorities. Customs authorities shall apply inspection and supervision measures toward simplification of notification and declaration procedures for such activities.

3. Exchange of goods between non-tariff zones and the domestic market constitutes export and import relations. Enterprises in non-tariff zones may carry out simplified customs declaration procedures when exchanging goods with the domestic market.

4. Goods taken out of a non-tariff zone for provision of specific services for a definite period and subsequently brought back into the non-tariff zone without changing their nature, names or commodity codes shall not be required to undergo customs procedures. Customs authorities shall apply simplified management and supervision measures based on declarations of goods brought into and out of the non-tariff zone. The period for taking goods out of and bringing them back into the non-tariff zone shall not exceed 30 days.

5. Used machinery and equipment in a non-tariff zone may be imported into the domestic market where such machinery and equipment had not been used at the time they were brought into the non-tariff zone.

Article 23. Development of new functional zones and new economic models

1. The City People’s Council shall prescribe:

a) Conditions and criteria for determination, objectives and functions of new functional zones and new economic models;

b) The order and procedures for establishment and termination of operation; adjustment of names, boundaries, areas and other contents related to the organisation and operation of new functional zones;

c) Mechanisms and policies on management, organisation, operation, incentives and investment support from the City’s resources, trade facilitation, improvement of the business environment, and other policies arising during the operation of new functional zones and new economic models;

d) Mechanisms and policies for conversion of export processing zones and industrial parks in the City into new functional zones or new economic models;

dd) Mechanisms and policies for development of the urban economy, digital economy, creative economy, data economy, green economy, circular economy, low-altitude economy, silver economy and other new economic models.

2. The City People’s Committee shall decide on:

a) The establishment, organisation and operation of new functional zones;

b) Measures for implementation of new economic models;

c) Measures for management, assurance of security, order and social safety, and handling of other arising issues for development of new functional zones and new economic models.

Article 24. Mechanisms and policies to promote development of the International Financial Center in Vietnam

1. The City People’s Council has the competence to:

a) Prescribe the issuance of municipal bonds and construction project bonds at the International Financial Center in Vietnam to raise capital for implementation of the City’s key projects;

b) Prescribe the conditions, order and procedures for licensing establishment of banks conducting investment banking activities at the International Financial Center in Vietnam, and issuance of international financial products through the International Financial Center in Vietnam after obtaining opinions from the Ministry of Finance and the State Bank of Vietnam;

c) Prescribe mechanisms for connection, financing and support of value chains between the International Financial Center in Vietnam and free trade zones, integrated logistics zones, open port zones, science, technology and innovation urban areas, other functional zones and TOD areas;

d) Decide on salary, remuneration, bonus and other income regimes for cadres, civil servants, public employees, persons receiving salaries and allowances, and employees at the Executive Agency of the International Financial Center in Ho Chi Minh City (below referred to as the Executive Agency in the City);

dd) Prescribe other mechanisms and policies in conformity with this Law and other relevant laws to ensure the effective establishment and operation of the International Financial Center in Vietnam toward a new-generation model with a comprehensive and diverse financial ecosystem and enhanced extensive connectivity with international capital markets.

2. The City People’s Committee has the competence to:

a) Decide on adjustment of the location, boundaries and area of the International Financial Center in Vietnam;

b) Assign the Executive Agency in the City to exercise the rights of the owner’s representative over state capital in an enterprise in which the City People’s Committee holds 100% of the charter capital for investment in market infrastructure organisations and technological infrastructure; management and exploitation of infrastructure; and issuance of financial products through the International Financial Center in Vietnam.

3. The Executive Agency in the City has the competence to:

a) Establish attached public non-business units and other attached units to perform the functions and tasks of the International Financial Center in Vietnam;

b) License establishment of banks conducting investment banking activities and license issuance of international financial products in accordance with regulations of the City People’s Council;

c) Apply mechanisms and policies on attraction, preferential treatment and development of human resources specified in Article 38 of this Law and other provisions of law on the International Financial Center in Vietnam.

4. Members of the International Financial Center in Vietnam may provide financial services and other support services at the International Financial Center in Vietnam under their establishment and operation licences to domestic organisations for conducting transactions and attracting international capital, on the basis of full compliance with the laws on foreign exchange management, prevention and combat of money laundering, counter-terrorist financing, counter-financing of proliferation of weapons of mass destruction, and public debt management.

Article 25. Development of energy infrastructure and the energy industry in association with national energy security

1. The City People’s Council shall prescribe expansion of eligible participants and conditions for participation in, and mechanisms for, direct electricity purchase and sale between electricity-generating units and electricity consumers within the City’s management; and responsibilities of participants in direct electricity purchase and sale.

2. The City People’s Committee shall decide on the list of sectors, fields and projects entitled to investment incentives and support for establishment of a national energy industry center integrating electricity, gas, liquefied gas, oil refining and petrochemicals, and renewable energy in the City.

3. The Chairperson of the City People’s Committee has the competence to:

a) Decide on orientations and plans for development of the electricity supply network in the City master plan;

b) Adjust and update orientations and plans for development of the electricity supply network in the City master plan, including the name, number, capacity scale, voltage level, connection point, timing and other information of projects; and add power grid projects to ensure synchronisation with power sources, release power generation capacity and meet load demand.

4. Energy infrastructure and energy industry projects whose implementation scale extends beyond the City’s administrative boundaries may apply the mechanisms and policies specified in this Law to the entire projects and participating subjects after obtaining the consent of the related localities.

Section 4

DEVELOPMENT OF CULTURE, SPORTS, TOURISM,
EDUCATION, TRAINING, HEALTHCARE AND SOCIAL SECURITY

Article 26. Development of culture, sports and tourism

1. The City People’s Council has the competence to:

a) Prescribe mechanisms and policies to encourage and mobilise socialized resources, and use public assets and the City budget for protection and development of the City’s culture, sports and tourism; support for organisations and individuals in embellishing and protecting areas of cultural and historical value and valuable architectural works; and conservation and promotion of the cultural identities of ethnic minorities living in the City;

b) Prescribe the organisation, operation, management mechanisms, and incentive and support policies for development of the night-time economy; commercial, cultural and sports development zones; centers, clusters and zones for cultural and creative industries; cultural and creative complexes; and other types of cultural and sports organisations and institutions;

c) Prescribe mechanisms and policies on support, assignment of tasks, placement of orders or bidding for creation and dissemination of projects, products and literary and artistic works of high ideological, substantive and artistic value;

d) Prescribe the naming and renaming of roads and public works under the City’s management;

dd) Prescribe mechanisms for management and exploitation of advertising activities;

e) Prescribe mechanisms and policies for detection, fostering, training, preferential treatment, care and development of human resources in the fields of culture, sports, literature and arts, with priority given to traditional art forms and conservation of Vietnam’s cultural heritage;

g) Prescribe mechanisms to support development of tourism service models, tourism products and tourism activities;

h) Prescribe names, criteria, order and procedures for recognition of types of tourist accommodation establishments not yet provided for in the national system of standards for classification and ranking of tourist accommodation establishments;

i) Decide on the list of heritage, areas of cultural and historical value, architectural works and other valuable works in the City requiring concentrated resources for protection and promotion of their values.

2. On the basis of original elements constituting relics and the values of relics and heritage in the City, the City People’s Committee has the competence to:

a) Prescribe public-private partnership mechanisms for management, exploitation and use of historical-cultural relics and valuable architectural works;

b) Prescribe requirements, conditions, management dossiers, and measures for protection, preservation, renovation and restoration of relics and renovation of valuable architectural works, except relics and heritage recognised or inscribed by the United Nations Educational, Scientific and Cultural Organisation (UNESCO);

c) Decide on preservation, renovation and restoration of national relics and special national relics after consulting the central state management agency in charge of culture, according to the order and procedures prescribed by the City People’s Council.

3. Based on regulations of the City People’s Committee, the Chairperson of the City People’s Committee has the competence to:

a) Grant and revoke international travel service business licences for enterprises registered in the City;

b) Recognise and revoke decisions recognising the ranking of tourist accommodation establishments in the City.

Article 27. Development of education and training

1. The City People’s Council shall prescribe:

a) Management mechanisms, financial mechanisms, use of public assets and mobilisation of socialized resources by multi-level educational institutions, high-quality educational institutions, institutions implementing educational cooperation, and advanced and modern school models;

b) Scholarship policies and special preferential mechanisms for persons with aptitude or talent or with exceptionally outstanding achievements; and other mechanisms and policies to encourage and support learners, teachers, education managers and managers of educational institutions in study, research and guest lecturing in Vietnam and abroad in key fields and sectors as prescribed by the City People’s Committee;

c) Mechanisms and policies to support education and comprehensive educational development in educational institutions in the City;

d) Mechanisms and policies on assignment of tasks, placement of orders or bidding for provision of training and refresher training services by higher education institutions, vocational education institutions, research institutes, and domestic and foreign organisations having training and refresher training functions, for development of high-quality human resources;

dd) Support policies for enterprises, organisations and individuals in the City participating in educational activities.

2. The City People’s Committee has the competence to:

a) Prescribe educational cooperation between public and private preschool and general education institutions and foreign institutions;

b) Prescribe criteria and conditions for assurance of education quality and educational services applicable to educational institutions specified at Point a, Clause 1 of this Article and key educational institutions in the City;

c) Supplement preschool education and general education curricula, provided that requirements concerning educational objectives, qualities and competencies to be attained by students, and compulsory educational contents of the preschool education curriculum and national general education curriculum are ensured;

d) Promulgate preschool education and general education curricula for educational institutions specified at Point a, Clause 1 of this Article in conformity with the City’s education development objectives and requirements concerning educational objectives, qualities and competencies to be attained by students, and compulsory educational contents of the preschool education curriculum and national general education curriculum.

3. Based on regulations of the City People’s Committee, the Chairperson of the City People’s Committee has the competence to:

a) Decide on establishment, merger, division, separation, dissolution, renaming and licensing of operation of public universities and public colleges under the City’s management; permit establishment, merger, division, separation, dissolution, renaming and licensing of operation of private universities and private colleges in the City;

b) Permit establishment, merger, division, separation, dissolution, renaming and licensing of operation of foreign-invested universities and colleges or universities and colleges conducting training cooperation with foreign institutions in the City after obtaining opinions from the Ministry of Education and Training.

Article 28. Development of the healthcare and social security systems

1. The City People’s Council shall prescribe:

a) Support policies from the City budget to pay disease prevention expenses and medical examination and treatment expenses outside the scope of payment by the health insurance fund according to an appropriate roadmap;

b) Policies on development of the out-of-hospital emergency care system and medical transport; prices of out-of-hospital emergency care services and the co-payment rate payable by patients when using such services as a basis for provision of payment support;

c) Mechanisms and policies to support the operation of the healthcare system at all levels in the City; mobilisation, placement of orders and assignment of tasks to healthcare establishments in the City to participate in out-of-hospital emergency care, medical transport, disease prevention and control, disaster response, community healthcare and other public-utility healthcare tasks of the City;

d) Preferential regimes and policies for persons with meritorious services to the revolution in the City;

dd) Social, social security and social welfare mechanisms and policies toward expanding eligible subjects and increasing benefit levels, ensuring a comprehensive, modern and sustainable social security system covering the entire population; and development of elderly care establishments and social assistance establishments in the City;

e) Mechanisms and policies for development of medical examination and treatment services for foreigners at medical examination and treatment establishments in the City.

2. The City People’s Committee has the competence to coordinate the development funds for non-business activities of public hospitals for transfer to other public hospitals under the City’s management where the balance of such fund exceeds 02 times the annual amount of depreciation and wear of fixed assets and the unit holding the fund has no need to use it for investment in physical facilities or procurement of equipment.

3. Based on regulations of the City People’s Committee, the Chairperson of the City People’s Committee has the competence to:

a) License the import of drugs without drug registration certificates for circulation in Vietnam that are required for special treatment needs and used for emergency care, antidotal treatment, prevention of transplant rejection, or drugs on the List of rare drugs, for supply to medical examination and treatment establishments under the City’s professional management;

b) Decide to permit medical examination and treatment establishments under the City’s professional management to apply special-grade medical techniques.

Article 29. Mechanisms and policies for assurance of food safety

1. The City People’s Council shall prescribe mechanisms and policies on incentives, support, investment and resources to ensure effectiveness in food safety; and development of shared infrastructure and database systems for food and food safety management in the City and the special urban region.

2. The City People’s Committee has the competence to:

a) Prescribe measures and monitoring and rapid-response processes for prevention, containment and remediation of food safety incidents;

b) Prescribe regulations on supply and provision of information on food ingredients and food products in the City and brought into the City;

c) Organise and operate a food safety inspection system based on management and control of food safety risks throughout the supply chain.

Section 5

DEVELOPMENT OF SCIENCE, TECHNOLOGY, INNOVATION AND DIGITAL TRANSFORMATION

Article 30. Development of science, technology, innovation and digital transformation

1. The City People’s Council shall prescribe mechanisms and policies for development of science, technology, innovation and digital transformation in conformity with the City’s development conditions and the following requirements:

a) Science, technology, innovation and digital transformation must be integrated into policy formulation, state management and development of the City’s socio-economic sectors and fields. Priority shall be given to addressing major issues of the City and attracting and preferentially treating human resources in science, technology, innovation and digital transformation through outstanding policies;

b) Risk governance in science, technology, innovation and digital transformation activities in the City;

c) The state budget for science, technology, innovation and digital transformation shall be allocated and used flexibly, promptly, effectively and transparently, based on outputs associated with the objectives of economic growth, digital transformation, improvement of labor productivity, competitiveness and urban management efficiency.

2. The City People’s Council shall prescribe:

a) Mechanisms and policies on incentives and support for development of infrastructure, innovation systems, and organisations operating in the fields of science, technology, innovation and digital transformation in the City;

b) Criteria and mechanisms and policies for science, technology and innovation urban areas;

c) Mechanisms and policies on incentives and support for scientific research, technology development and innovation; establishment and development of research centers meeting international standards; technology transfer; establishment, exploitation and protection of intellectual property rights; innovation start-ups, innovation, digital transformation, incubation, operation of spin-off enterprises, commercialisation of products and scientific and technological research results; production, business and export of digital technology products; development of digital assets; and preferential remuneration for performance of the City’s science, technology and innovation tasks;

d) The organisation, operation and management of the City Science, Technology and Innovation Development Fund;

dd) The use of science and technology development funds of enterprises, organisations and non-business units for contribution to the City Science, Technology and Innovation Development Fund; and policies prioritising support for enterprises, organisations and non-business units that have contributed to the City Science, Technology and Innovation Development Fund to implement tasks, projects and schemes on development of science, technology and innovation;

e) Direct assignment and contractor appointment for science, technology, innovation and digital transformation tasks and projects, and digital technology application projects using the City budget;

g) Establishment or participation in establishment of enterprises, participation in management and operation, and contribution of capital to enterprises for commercialisation of scientific research and technology development results under the intellectual property rights of public higher education institutions, public vocational education institutions and other public science and technology organisations under the City’s management, and of public employees working at such institutions and organisations;

h) Fields, criteria, conditions, order, procedures, contents and levels of non-refundable support from recurrent expenditures of the City budget for costs of incubation of innovation start-up projects, including costs of organising project selection activities; expert hiring costs; direct labor costs; costs of innovation and innovation start-up support services; and costs of using technical facilities, incubators, innovation centers, innovation start-up support centers and co-working spaces;

i) Supplementation of charter capital to the City Venture Capital Fund.

3. The City People’s Committee has the competence to:

a) Prescribe lump-sum expenditure mechanisms for implementation of science, technology and innovation tasks, projects and schemes using the City budget;

b) Prescribe the mobilisation and use of resources from sponsorship, support, public-private partnership arrangements and other forms in the fields of science, technology, innovation and digital transformation;

c) Prescribe the development, creation, management and exploitation of the City’s shared databases, ensuring interoperability and connectivity with central state management agencies; advanced governance methods based on digital data and application of digital technology and artificial intelligence; and public-private data sharing mechanisms under data exploitation contracts;

d) Prescribe assurance of safety, risk management and measures for application of artificial intelligence in state management in the City;

dd) Promulgate technical regulations and announce standards in fields where higher requirements are needed or where national technical regulations or national standards are not yet available; and select, recognise and apply advanced and modern foreign, regional and international standards.

Implementation of this Point must ensure interoperability, technical connectivity and data management with central state management agencies, other localities, and the national system of technical regulations and standards; and must not create barriers to production, business and trade activities;

e) Invest in and procure shared assets, equipment and physical facilities and assign management, use and exploitation rights thereof to units not under the locality’s management for effective science, technology, innovation and digital transformation activities.

4. Organisations and individuals implementing science, technology, innovation and digital transformation tasks and projects using the City budget may apply simplified contractor appointment procedures to select providers of services and goods for task implementation, except cases of direct procurement in accordance with law.

5. Enterprises having their head offices in the City may use their science and technology development funds to invest in the City Venture Capital Fund in accordance with regulations of the City People’s Council.

Article 31. Regulatory sandbox

1. The City People’s Council shall prescribe:

a) Criteria and conditions for selection and the order and procedures for permitting, adjusting, terminating and completing regulatory sandbox testing of technologies, processes, solutions, products, services, new business models and other models;

b) Mechanisms for guidance and control of the testing process; mechanisms for protection of testing participants; and rights, obligations and responsibilities of agencies, organisations and individuals during regulatory sandbox testing;

c) Policies on encouragement, support and funding for regulatory sandbox activities; funding sources to ensure activities of agencies, organisations and individuals participating in approval, guidance and control of the testing process; and use of databases of state agencies, infrastructure and public assets to support regulatory sandbox testing;

d) Policies on priority procurement and investment from the City budget and support for market development for regulatory sandbox projects assessed as effective.

2. The City People’s Committee has the following tasks and powers:

a) Decide to permit testing and promulgate testing regulations for each testing project; decide on temporary non-application of a number of legal provisions within the limited testing scope for each specific testing project where legal provisions already exist but are insufficiently specific or no longer appropriate; adjust the testing scope, suspend, extend or terminate testing.

The temporary non-application of a number of legal provisions specified at this Point does not include legal provisions in the fields of national defense and security;

b) Notify related state management agencies; organise guidance and control of the testing process;

c) Report to the City People’s Council on the situation and results of regulatory sandbox testing; and make recommendations to competent agencies for improvement of the law concerning relevant fields and contents.

3. Regulatory sandbox testing must ensure satisfaction of requirements on national defense, security, social order and safety, public interests, and protection of the rights and interests of testing participants.

Article 32. Development of hi-tech parks

1. Hi-tech parks in the City include hi-tech parks, concentrated digital technology zones, hi-tech agricultural zones, and forms of concentrated and linked application and development of high technologies in other fields.

2. The City People’s Council shall prescribe:

a) The establishment, adjustment, investment in construction, management and development of hi-tech parks; functions and tasks of hi-tech parks; and the scope, criteria and conditions for conducting activities of manufacturing hi-tech products, key innovation activities and provision of hi-tech services in hi-tech parks in the City;

b) Mechanisms and policies on incentives and support, and resources for development of hi-tech park infrastructure, investment projects and activities in hi-tech parks in the City;

c) Mechanisms, policies and models for management and governance of hi-tech parks and other contents serving development of hi-tech parks in the City;

d) Mechanisms and policies for development of hi-tech urban areas in the City.

Section 6

RESOURCES FOR DEVELOPMENT OF SPECIAL-GRADE

URBAN CENTERS

Article 33. Management and use of finance and budgets

1. The central budget shall provide a targeted additional allocation to the City budget not exceeding 70% of the increase in central budget revenues from revenues shared between the central budget and the City budget compared with the estimate assigned by the Prime Minister, after implementation of rewards for revenues exceeding estimates in accordance with the law on the state budget, with respect to the following revenues:

a) Enterprise income tax (except enterprise income tax from oil and gas prospecting and exploitation activities and additional enterprise income tax under regulations on prevention of global tax base erosion);

b) Personal income tax;

c) Excise tax, except excise tax refunds, if any, and excise tax collected on imported goods;

d) Environmental protection tax.

2. The central budget shall provide a targeted additional allocation to the City budget not exceeding 70% of the increase in revenues wholly retained by the central budget in the City compared with the estimate assigned by the Prime Minister, with respect to the following revenues:

a) Export duty, import duty and additional import duty;

b) Excise tax collected on imported goods;

c) Charges collected from service activities performed by central state agencies, except charges collected from oil and gas prospecting and exploitation activities. Charges collected from service activities performed by public non-business units and organisations assigned by competent agencies to provide public services shall be remitted to the state budget in accordance with law;

d) Fees collected by central state agencies, except registration fees in accordance with the law on the state budget.

3. The targeted additional allocation from the central budget to the City budget specified in Clauses 1 and 2 of this Article shall not exceed the total increase in central budget revenues in the City compared with the actual revenues of the previous year and must ensure that the central budget does not incur a revenue shortfall. The amount of the targeted additional allocation shall be determined on the basis of the aggregate revenues, rather than separately for each revenue. The Government shall decide on the amount of the targeted additional allocation in conformity with actual requirements for state budget administration, ensuring the leading role of the central budget.

The revenues specified in Clauses 1 and 2 of this Article do not include revenues not assigned to the City for collection management, revenues not arising in the City but merely accounted for and remitted in the City; revenues permitted by competent agencies to be used for specific expenditure tasks; revenues accounted for as both revenues and expenditures; and revenues retained by units for expenditure and managed through the state budget in accordance with law.

The revenues specified in Clause 4 of this Article shall not be used to determine balancing supplements from the central budget to the City budget.

4. The City budget shall wholly retain the following revenues:

a) Revenues from carbon credit transactions and greenhouse gas emission reduction results from programs and projects using the City budget under carbon credit exchange and offset mechanisms; and revenues from exploitation of land areas in TOD areas along local railway lines, to be prioritised for investment in local railway projects and transport projects;

b) Revenues from charges and fees promulgated by the City People’s Council outside the List of charges and fees prescribed by the law on charges and fees;

c) Other revenues specified in this Law but not yet prescribed by the law on the state budget.

5. The City People’s Council has the competence to:

a) Prescribe expenditure contents from the City’s sources for implementation of salary policies, provided that sufficient sources for salary reform and social security policies are ensured as prescribed;

b) Prescribe expenditure contents from increases in City budget revenues, rewards for revenues exceeding estimates from revenues shared between the central budget and the City budget, and targeted additional allocations from the central budget specified in Clauses 1 and 2 of this Article, in addition to the contents prescribed by the law on the state budget;

c) Prescribe the issuance of local administration bonds, project bonds, construction project bonds, municipal bonds and green bonds; and borrowing from domestic, foreign and international financial organisations to raise capital for implementation of the City’s investment projects, provided that public debt safety indicators prescribed by the law on public debt management are ensured;

d) Prescribe the arrangement and reorganisation of off-budget state financial funds and renovation of their organisational models and operational mechanisms toward multiple objectives and functions, ensuring streamlining and efficiency;

dd) Prescribe, or assign the City People’s Committee to prescribe, regimes, standards, expenditure norms and lump-sum expenditure mechanisms for other expenditure tasks using the City budget or expenditure tasks not yet prescribed in legal documents of superior state agencies;

e) Prescribe reward policies to honour, encourage and incentivise domestic and foreign collectives, households and individuals with outstanding achievements in the cause of construction, development, management and protection of the City;

g) Prescribe other revenues specified in this Law but not yet prescribed by the law on the state budget;

h) Prescribe exemption from and reduction of land use levy and land rental beyond current regulations, provided that this does not reduce revenues from land use levy and land rental retained by the central budget in accordance with the law on the state budget;

i) Prescribe the use of the City budget to perform payment and compensation responsibilities of agencies, organisations and competent persons under the City’s management toward organisations and individuals under legally effective judgments and decisions of competent agencies, in cases not governed by the law on state compensation liability;

k) Decide on the structure of City budget expenditures in conformity with local socio-economic development tasks; and the use of budget surpluses and budget funds of the City;

l) Decide on the use of the City-level budget to implement investment projects, works and projects outside the City;

m) Decide on the use of the City-level budget to provide support to other countries;

n) Decide on adjustment of rates or percentages of charges and fees already decided by competent agencies for charges and fees included in the List of charges and fees promulgated together with the Law on Charges and Fees, except court costs, court fees and charges wholly retained by the central budget;

o) Decide on appropriations to the financial reserve fund in conformity with the locality’s capacity and needs, provided that the fund balance does not exceed 25% of the annual City-level budget expenditure estimate;

p) Allocate public investment capital from the City budget to provide interest rate support for investment projects in sectors prioritised for socio-economic development in the City that are financed by organisations having the function of local development investment funds or for which such organisations act as focal points for syndicated lending with credit institutions, according to the subjects, conditions, order, procedures, levels and duration of support prescribed by the City People’s Council.

6. The City People’s Committee shall flexibly administer the use of the City budget for development investment expenditures and recurrent expenditures within the total City budget funds annually approved by the City People’s Council, report to the City People’s Council at its nearest session, and consolidate such report for submission at the year-end regular session.

Article 34. Competence regarding investment

1. The City People’s Council has the competence to:

a) Decide on investment policy for public investment projects and PPP projects that are projects of national importance using the City budget funds or other lawful funds of the City, except nuclear power plant projects;

b) Decide on investment policy for public investment projects and PPP projects in the City using central budget funds, official development assistance or concessional foreign loans that fall within the competence of the National Assembly or Prime Minister to decide on investment policy, where assigned by the National Assembly or Prime Minister; and decide on adjustment of investment policy for public investment projects and PPP projects for which the National Assembly or Prime Minister has decided on investment policy and assigned the City People’s Committee to act as the managing agency for project implementation, provided that this does not increase investment capital from the central budget, official development assistance or concessional foreign loans.

2. The City People’s Committee shall prescribe the assessment of conformity of projects with planning on the basis of the principles of the law on planning in approval or approval of investment policy, decision on investment policy, decision on assignment of project owners, decision on investment in projects, investor selection and grant of investment registration certificates.

3. The Chairperson of the City People’s Committee has the competence to:

a) Decide on investment policy for projects falling within the competence of the City People’s Committee under the laws on public investment and public-private partnership investment;

b) Approve investment policy for investment projects subject to approval of investment policy falling within the competence of the Prime Minister under the law on investment, except investment projects involving betting or casino business, nuclear power plant investment projects, investment projects of foreign investors in telecommunications services with network infrastructure, publishing and press, and projects in the fields of national defense and security classified as top secret in the City.

4. For large and important projects requiring application of special mechanisms and policies different from those prescribed in laws and resolutions of the National Assembly, ordinances and resolutions of the National Assembly Standing Committee, on the basis of consent of the competent authority and after consulting competent central agencies, the City People’s Council shall decide on special mechanisms and policies different from those prescribed in laws and resolutions of the National Assembly, ordinances and resolutions of the National Assembly Standing Committee.

5. The City People’s Council shall prescribe:

a) Criteria, conditions, order, procedures and forms of investor and contractor selection, types of contracts and payment mechanisms for PPP projects;

b) Cases, competence, order and procedures for implementation of emergency and urgent projects and works in the City;

c) Contractor appointment, direct appointment of investors, investor selection and contractor selection in special cases for emergency and urgent projects and works, or projects, works and work items requiring immediate implementation to ensure project and work implementation schedules;

d) Mechanisms and policies on investment in and management of infrastructure and other support measures for development of legal services and international dispute settlement in the City.

6. For projects decided or approved by competent agencies of the City in accordance with the laws on public investment, investment, public-private partnership investment, housing and bidding that were delayed before the effective date of this Law, the City People’s Council shall prescribe or decide on special policies and measures different from those prescribed by law to remove difficulties and obstacles, provided that the following principles and requirements are complied with:

a) There must be inspection or examination conclusions or a legally effective judgment determining that the cause of the violation or wrongdoing is attributable to the state management agency, or to both the state management agency and the investor or project owner; difficulties and obstacles may be addressed concurrently with the process of handling liability under such inspection or examination conclusions or judgment, ensuring that no new violations arise and that there is a plan for remedying damage;

b) For projects undergoing criminal, administrative or civil proceedings, this Clause may only be applied after there is a legally effective judgment or a decision to terminate the case; where a legally effective judgment contains a handling decision different from regulations promulgated by the City People’s Council under this Clause, such legally effective judgment shall apply;

c) Organisations and individuals committing violations must be strictly handled in accordance with Party regulations and State law, ensuring remediation of the consequences of economic violations and recovery of material benefits obtained from violations; violations must not be legalised and no new violations may arise; organisations and individuals that abuse the implementation of this Clause for corruption, negative practices or concealment of violations must be examined, supervised and strictly handled;

d) The handling must conform with objective realities and specific historical circumstances; ensure harmony among the interests of the State, lawful rights and interests of related parties, and legitimate interests of bona fide third parties within the overall national interest in accordance with law; ensure security, order and social safety; and minimise disputes and complaints, especially disputes involving foreign elements;

dd) Projects must be classified according to criteria on the causes of delay; decisions on handling measures must be appropriate to the legal status, financial obligations, degree of violation and capacity for continued implementation of each project;

e) Information on projects, difficulties and obstacles, and all order, procedures and decisions on project handling must be fully publicised; before December 31 every year, a report must be submitted to the Government on the handling of projects where policies or measures different from those prescribed by the Government, Prime Minister, ministers or heads of ministerial-level agencies are applied, or to the National Assembly Standing Committee where they differ from provisions of the National Assembly or National Assembly Standing Committee;

g) The handling of delayed projects specified in this Clause must be completed no later than December 31, 2031;

h) The handling of delayed projects specified in this Clause shall not alter or terminate civil liability or other legal liability under inspection or examination conclusions or legally effective judgments, (if any).

7. Investors may have the operation term of their projects extended before expiry of such term, except where extension is not permitted under the Law on Investment.

Article 35. Participation of the private economic sector in the management, use, operation and exploitation of assets

1. The City People’s Council shall prescribe the scope, fields, conditions, criteria, order and procedures; management mechanisms, financial mechanisms, incentives and investment support for application of forms of cooperation between the State and the private economic sector in the management, use, operation and exploitation of assets serving socio-economic development, provision of public-utility products and services, social welfare and other public purposes, provided that the following principles are complied with:

a) Managing, using, operating and exploiting assets efficiently and for their proper purposes and functions and in accordance with applicable standards and regimes; preventing and combating corruption, waste, negative practices, group interests and parochial interests;

b) Reaching equal and voluntary agreements with investors, project owners and owners of works and assets on the lease, lease-purchase and purchase of works and assets invested in, constructed or created from business investment activities or from non-state-budget sources;

c) Publicising information and contractual commitments on transfer of the right to collect user charges, time-limited transfer of exploitation rights, lease of exploitation rights or other methods of management, use, operation and exploitation of infrastructure assets, works and other public assets, except confidential information as prescribed by law;

d) Ensuring supervision, inspection, examination and audit; promptly and strictly handling violations in accordance with law.

2. The Chairperson of the City People’s Committee shall decide on selection and application of the forms of cooperation specified in Clause 1 of this Article.

Article 36. Attraction of strategic investors

1. The List of projects and sectors prioritized for attraction of strategic investors includes:

a) Investment in construction of innovation centers and research and development centers; investment in research and support for transfer of high technologies in the fields of information technology, green technology, biotechnology, automation technology, new materials technology and clean energy, with an investment capital of VND 3,000 billion or more;

b) Investment projects in the fields of the semiconductor integrated circuit industry, technologies for design and manufacture of components, integrated electronic circuits, flexible electronics, chips, new-technology batteries, new materials and the clean energy industry, with an investment capital of VND 30,000 billion or more;

c) Investment projects on construction and commercial operation of resort and entertainment complexes comprising tourist accommodation services meeting at least 5-star standards, high-end resort services, and at least one of the following: shopping services, integrated entertainment services, specialised healthcare services, or transport infrastructure connecting areas along river corridors, coastal corridors and islands to create a driving force for socio-economic development, with an investment capital of VND 30,000 billion or more;

d) Investment projects on specialised healthcare establishments with an investment capital of VND 5,000 billion or more; elderly care establishments with an investment capital of VND 2,000 billion or more; and sports complexes, cultural parks or theme parks with an investment capital of VND 6,000 billion or more;

dd) Projects on renovation and relocation of houses on rivers, riverside houses, houses on canals and creeks, and houses along canals and creeks, with an investment capital of VND 6,000 billion or more;

e) Independent investment projects or projects combining public green parks, public parking facilities and clean energy infrastructure, with an investment capital of VND 2,000 billion or more;

g) Waste-to-energy plant projects with an investment capital of VND 2,000 billion or more;

h) Investment projects on construction of technical infrastructure systems and drainage works, with an investment capital of VND 3,000 billion or more;

i) Projects on treatment and conversion of closed landfill sites for socio-economic development purposes, with an investment capital of VND 10,000 billion or more;

k) Projects in key urban development areas identified under the City master plan, with an investment capital of VND 50,000 billion or more;

l) Investment projects on construction of infrastructure in free trade zones, including investment in port terminals with an investment capital of VND 75,000 billion or more; investment in integrated logistics zones with an investment capital of VND 25,000 billion or more; and investment in industrial, urban and service functional zones with an investment capital of VND 20,000 billion or more;

m) Investment projects in service and commercial sectors specified in Article 20 of this Law, with an investment capital of VND 10,000 billion or more;

n) Projects prioritized for investment attraction in special zones, including investment in upgrading and expansion of airports with an investment capital of VND 10,000 billion or more; investment in conservation, embellishment and promotion of the value of special national historical relic sites with an investment capital of VND 800 billion or more; investment in passenger and cargo terminals with an investment capital of VND 2,000 billion or more; and investment in construction and commercial operation of transport works combined with commerce and services, with an investment capital of VND 3,000 billion or more;

o) Investment projects on construction of sea reclamation urban areas satisfying criteria prescribed by the Government.

2. A strategic investor means an investor selected to implement a project on the List of sectors prioritized for attraction of strategic investors and satisfying the following conditions:

a) Contributing equity capital to the project equal to at least 20% of the total investment capital for a project with an investment capital of less than VND 30,000 billion;

b) Contributing equity capital to the project equal to at least 15% of the total investment capital for a project with an investment capital of VND 30,000 billion or more;

c) Where multiple investors jointly invest in the same project, the total equity capital contributed to the project by such investors must satisfy the equity capital requirement specified at Point a or Point b of this Clause, of which at least 01 investor must contribute at least 30% and each of the remaining investors must contribute at least 15%. For a project comprising multiple component projects or multiple investment phases, except a commercial housing project, the minimum equity capital contributed to the project shall be determined for each component project or investment phase but shall not be lower than 30% of the total minimum equity capital required to be contributed to each component project or investment phase of the project and must comply with Clause 8 of this Article;

d) Having a written commitment on training and human resource development and satisfaction of conditions for assurance of national defense, security and environmental protection as prescribed;

dd) Having a commitment to thoroughly remediate soil and groundwater pollution before conversion of land use purpose, and concurrently continue monitoring and controlling environmental impacts of treated and renovated landfill areas when implementing socio-economic development projects in order to prevent environmental pollution risks, in the case of implementation of the project specified at Point i, Clause 1 of this Article.

3. A strategic investor specified in Clause 2 of this Article that is selected according to the order and procedures specified in Clause 5 or Clause 6 of this Article to implement an investment project on the List of projects and sectors prioritized for attraction of strategic investors specified in Clause 1 of this Article shall be entitled to investment incentives and support and have the obligations specified in Clauses 7 and 8 of this Article.

4. Based on the List of projects and sectors prioritized for attraction of strategic investors specified in Clause 1 of this Article, an investor or competent state agency may propose an investment project. Investor selection shall be carried out as follows:

a) For a business investment project, in accordance with Clause 5 of this Article;

b) For a PPP project, in accordance with Clause 6 of this Article.

5. For a business investment project under the law on investment, the order and procedures for registration for project implementation and selection of a strategic investor shall be carried out as follows:

a) The Chairperson of the City People’s Committee shall approve the investment policy concurrently with approval of the investor where there is 01 investor proposing the project and satisfying the conditions for strategic investors specified in Clause 2 of this Article;

b) Where 02 or more investors satisfying the conditions for strategic investors specified in Clause 2 of this Article submit valid dossiers proposing implementation of an investment project at the same location within 07 working days from the date of receipt of the valid dossier of the first investor, the investment registration agency shall report to the Chairperson of the City People’s Committee for promulgation of scoring criteria and establishment of the Strategic Investor Selection Council to ensure publicity and fairness in strategic investor selection;

c) Based on the decision approving the investment policy concurrently with approval of the investor, the investment registration agency shall grant an investment registration certificate to the strategic investor, if the project is subject to grant of an investment registration certificate under the law on investment; the competent agency shall carry out land allocation or land lease procedures, if any, in accordance with the land law;

d) Matters not specified at Points a, b and c of this Clause shall comply with the law on investment.

6. For a PPP project, the order and procedures for project proposal and selection of a strategic investor shall be carried out as follows:

a) Where there is 01 investor proposing the project and satisfying the conditions for strategic investors specified in Clause 2 of this Article, such investor shall be selected as the strategic investor implementing the project. The competent agency shall approve the strategic investor selection result for the selected investor;

b) Where 02 or more investors satisfying the conditions for strategic investors specified in Clause 2 of this Article submit valid dossiers proposing implementation of the same project within 07 working days from the date of receipt of the valid dossier of the first investor, the competent agency shall report to the Chairperson of the City People’s Committee for promulgation of scoring criteria and establishment of the Strategic Investor Selection Council. The strategic investor with the more suitable project proposal shall be selected as the investor implementing the project;

c) The order and procedures for formulation, appraisal and decision on investment policy (if any), project approval, and conclusion and performance of the project contract shall comply with the law on public-private partnership investment;

d) Matters not specified at Points a, b and c of this Clause shall comply with the law on public-private partnership investment.

7. Strategic investors shall be entitled to the following incentives and support:

a) An operation term of up to 70 years for projects with an investment capital of VND 30,000 billion or more, except commercial housing projects;

b) The priority regime for customs procedures in accordance with the law on customs and tax procedures in accordance with the law on tax for exported and imported goods of investment projects implemented by strategic investors in the City, where the conditions for application of the priority regime under the laws on customs and tax are satisfied, except conditions regarding export and import turnover and requirements on duration, if any, for application of the priority regime, and customs procedures shall be carried out at the customs unit managing the City.

The head of the regional customs authority managing the City has the competence to recognise, extend, temporarily suspend or suspend application of the priority regime to strategic investors in the City;

c) Support for human resource development, social infrastructure, social infrastructure works, hi-tech products, and research and development;

d) Other incentives and support as decided by the City People’s Council to meet urgent requirements for attraction of strategic investors.

8. Strategic investors have the following obligations:

a) Organising implementation of projects in accordance with the contents specified in investment registration certificates or decisions approving investment policy;

b) Disbursing the total investment capital of a project with an investment capital of less than VND 30,000 billion within 05 years from the date of handover of land or handover of the sea area on site.

Disbursing the total investment capital of a project with an investment capital of VND 30,000 billion to less than VND 50,000 billion within 07 years from the date of handover of land or handover of the sea area on site.

Disbursing the total investment capital of a project with an investment capital of VND 50,000 billion to less than VND 100,000 billion within 10 years from the date of handover of land or handover of the sea area on site.

For a project with an investment capital of VND 100,000 billion or more, disbursing at least VND 50,000 billion within the first 10 years and completing investment and construction according to the project implementation schedule, but within no more than 20 years from the date of handover of land or handover of the sea area on site;

c) Not transferring the project during the disbursement period specified at Point b of this Clause; for a project with an investment capital of VND 100,000 billion or more specified at Point b of this Clause, not transferring the project within 10 years from the date of handover of land or handover of the sea area on site. Transfer of an investment project on construction of a sea reclamation urban area shall comply with Point b, Clause 4, Article 19 of this Law;

d) Providing financial support for vocational training for workers affected in the project area; prioritizing recruitment of local workers for employment in the project; and applying advanced technologies, new technologies, high technologies and strategic technologies on a voluntary basis and by agreement among the parties, ensuring compliance with the law on intellectual property and conformity with treaties to which the Socialist Republic of Vietnam is a contracting party.

9. A strategic investor may establish an enterprise in which the strategic investor owns 100% of the charter capital to implement the investment project and notify the investment registration agency where the project is implemented without having to carry out procedures for adjustment of investment policy. The enterprise established under this Clause shall become the investor implementing the project from the time of its establishment, have the rights and obligations of the strategic investor, and fully satisfy the conditions applicable to strategic investors.

10. During implementation of an investment project, where the strategic investor and the enterprise specified in Clause 9 of this Article fail to satisfy the conditions regarding capital, disbursement schedule or other conditions applicable to strategic investors, they shall not be entitled to the incentives and support specified in Clause 7 of this Article. The investor shall be liable for consequences arising from failure to properly perform its commitments in accordance with law.

11. For areas where an investor has been selected to implement an investment project, the City People’s Committee may assign the investor to organise the formulation or adjustment of zoning planning and submit it to the competent agency for approval. The investor may formulate or adjust detailed planning and obtain opinions from residential communities concurrently with zoning planning, without having to formulate a detailed planning task.

12. The City People’s Council has the competence to:

a) Adjust, supplement and announce the List of projects and sectors prioritized for attraction of strategic investors and prescribe criteria, conditions, order and procedures for selection of strategic investors based on the City’s practical conditions and ensuring satisfaction of the conditions applicable to strategic investors specified in Clause 2 of this Article, except where prescribed by the Government under Clause 2, Article 19 of this Law;

b) Prescribe penalties, reimbursement of incentives and support already received, and termination of projects due to failure to satisfy conditions or perform commitments and obligations of strategic investors.

Article 37. Management, use and protection of resources

1. Cases of land recovery in the City include:

a) Cases of land recovery prescribed by the land law;

b) Land recovery for implementation of socio-economic development projects for national and public interests specified at Point a, Clause 2, Article 2 of this Law;

c) Land recovery in areas adjacent to roads, local railway stations and depots concurrently with land recovery for investment in construction of new road axes or local railway lines, or expansion of existing road axes, in accordance with planning;

d) Land recovery for implementation of projects specified at Point n, Clause 1, Article 36 of this Law.

2. The City People’s Council has the competence to:

a) Prescribe the order, procedures and competence for recovery of housing and land premises in the City managed by central agencies where there are grounds for land recovery under the land law.

Housing and land premises subject to handling under this Point shall be used for infrastructure development, social housing, public works and creation of resources for development investment;

b) After obtaining directions from the competent authority permitting implementation of a large and important project specified at Point a, Clause 2, Article 2 of this Law, the City may use the City-level budget and other lawful capital sources to implement an independent compensation, support and resettlement project before approval of the investment policy. The City People’s Council shall prescribe the criteria, conditions, order and procedures for implementation of this Point;

c) Prescribe mechanisms and policies on compensation, support and resettlement;

d) Decide on land use norms within the City, except land use norms for national defense land and security land, ensuring conformity with socio-economic development requirements;

dd) Prescribe the development of urban green spaces in conformity with planning for State-managed land areas that have not yet been allocated, leased or used;

e) Prescribe cases where exploration and exploitation of Group-III minerals used as common construction materials and Group-IV minerals for which licences have been granted by competent agencies are not required to lease land or change land use purposes under the land law;

g) Decide on each case of land recovery specified at Points b, c and d, Clause 1 of this Article. Land recovery must ensure harmony of interests among the people, the State and enterprises; prevent losses, corruption, waste, negative practices, group interests and parochial interests; and ensure security, order and social safety.

3. The City People’s Committee has the competence to:

a) Prescribe the order and procedures for land recovery specified at Points b, c and d, Clause 1 of this Article;

b) Prescribe the contribution of land use rights and land readjustment for urban and rural embellishment, reconstruction or new construction in accordance with the City’s planning;

c) Prescribe mineral management in the City regarding exploration, exploitation and use of Group-II minerals as cement additives, Group-III minerals as common construction materials and Group-IV minerals; mineral recovery; mineral processing; areas not subject to auction of mineral exploitation rights; finance relating to geology and minerals; mine closure; and the formulation, appraisal, approval and approval of adjustments to investment policies, investment projects, mine designs, environmental matters and land use in mineral activities;

d) Decide on the proportion of agricultural land area; and conditions, order and procedures for grant of construction permits, and types of works permitted to be constructed on agricultural land directly serving agricultural production, agricultural services and urban agriculture;

dd) Decide on the area and proportion of land use for construction of technical infrastructure works serving the collection, transport and treatment of solid waste;

e) Decide on the list of projects for which investigation, survey, recording of current status, measurement, inventory, statistics, classification and determination of the origin of land and land-attached assets expected to be recovered may be carried out in advance for implementation of land recovery projects specified in Clause 1 of this Article; and prescribe the order and procedures for carrying out the activities specified at this Point;

g) Decide on licensing of exploitation and use of water resources to ensure water source security;

h) Decide on removing lakes formed from closed mineral mining pits from the list of lakes, ponds, lagoons and coastal lagoons prohibited from being filled;

i) Select and directly appoint investors to implement projects on upgrading, repair and dredging of reservoirs, water storage dams, ponds and lagoons where recovered products are used to serve large and important projects.

Article 38. Attraction, preferential treatment and development of human resources

1. The City People’s Council shall prescribe policies on attraction, preferential treatment and development of high-quality human resources and talented persons working at agencies, organisations, units and enterprises in the City, including:

a) Policies on recruitment, training, refresher training, income, salaries, bonuses and other preferential treatment regimes;

b) Policies on housing, residence and necessary working conditions;

c) Special mechanisms to attract and preferentially treat experts, scientists, managers, chief engineers, chief architects and persons with high professional qualifications and expertise in the City’s priority development fields;

d) Policies on development of human resources for the digital technology industry and human resources in other key fields.

2. The City People’s Council shall prescribe policies and the use of the City budget to:

a) Support and invest in physical facilities and equipment for key education and training institutions in the City;

b) Implement social housing policies for cadres, civil servants and public employees in the City;

c) Provide financial support for training, refresher training and improvement of professional qualifications, professional skills and occupational skills in Vietnam and at overseas training institutions for cadres, civil servants, public employees and employees under the City’s management;

d) Invest in modernisation of a number of key, high-quality colleges to meet regional and international standards in conformity with orientations for development of priority sectors and occupations; and implement tuition support policies for learners studying key sectors and occupations and sectors and occupations approaching advanced regional and international levels.

3. Foreigners who are experts, scientists, managers, innovation start-up individuals, individual innovation start-up investors or highly qualified workers shall be supported in carrying out procedures for grant of certificates of exemption from work permit requirements or work permits, and shall be considered for grant of visas and temporary residence cards together with their family members in accordance with law.

The City People’s Committee shall prescribe the scope, fields and conditions for support in the grant of certificates of exemption from work permits requirements or work permits, visas and temporary residence cards to the persons specified in this Clause.

Article 39. Investment attraction, investment incentives and support, and enterprise development

1. Investment projects in the City entitled to incentives and support include:

a) Investment projects in key fields of sports, establishment of cultural industry centers, projects in cultural industries and traditional arts sectors according to the list decided by the City People’s Committee;

b) Investment projects on education and training institutions at all levels and vocational education institutions; training institutions for persons with disabilities and disadvantaged children;

c) Investment projects on high-quality, modern medical examination and treatment establishments; high-quality healthcare establishments for the elderly;

d) Investment projects on development of products and services serving the needs of the elderly; appropriate use of elderly workers, in association with sustainable urban development, social security and healthcare;

dd) Investment projects in non-public social assistance establishments, private drug rehabilitation establishments and establishments providing voluntary drug rehabilitation services at home and in the community;

e) Projects involving hi-tech, information technology, digital technology, innovation and innovation start-up activities in the fields of science, technology and innovation of the City;

g) Projects using high and advanced technologies in the fields of environment, carbon emission reduction, climate change response, waste treatment and wastewater treatment;

h) Local railway projects;

i) Projects on manufacture of industrial products applying high technologies; digital transformation projects; energy transition projects; projects on renovation of equipment and technologies in industrial production and supporting industries; projects on the list specified in Clause 2, Article 25 of this Law; new energy, renewable energy, gas, liquefied gas, oil refining and petrochemical projects; energy storage projects; smart grid projects; and investment projects on development of markets, supermarkets, commercial centers, goods fair and exhibition centers, Outlet models, logistics centers, inland container depots and warehouses in the City;

k) Eco-enterprise development projects; projects on construction and commercial operation of infrastructure of hi-tech industrial parks, eco-industrial parks, specialized industrial parks, supporting industrial parks, free trade zones and integrated logistics zones;

l) Hi-tech agricultural projects; projects on development of rural occupations, craft villages and traditional craft villages; projects on research and production of organic agriculture and hi-tech agricultural production; projects on research and production of agricultural and forestry plant varieties, livestock breeds and aquatic breeds; projects on development and application of biotechnology in agricultural production; marine aquaculture development projects; and investment projects on centralized animal slaughtering establishments satisfying national veterinary hygiene standards;

m) Investment projects in the service and trade sectors specified in Article 20 of this Law; projects on development of production and supply chains of products and services specified at Point c, Clause 4, Article 40 of this Law;

n) Projects on investment in and development of infrastructure in the field of judicial support in the City toward modernity, shared use, interoperability and connectivity; projects on development of out-of-court dispute settlement services and high-quality legal services with international integration capacity;

o) Projects on the list of sectors and fields of marine economic development specified at Point b, Clause 1, Article 18 of this Law;

p) Other projects decided and promulgated by the City People’s Council in conformity with the City’s development strategy and situation.

2. Enterprises, organisations and individuals implementing projects specified at Points a, b, c, d, e, g, h, i, k, l, m, n, o and p, Clause 1 of this Article shall be entitled to the following incentives and support:

a) Exemption from land rental as prescribed by the City People’s Council.

Innovation start-up enterprises, science and technology organisations and intermediary organisations supporting innovation start-ups shall be entitled to a 50% reduction in rental payments for production and business premises at the City’s innovation centers;

b) Income from project implementation shall be subject to the tax rate specified in Clause 2, Article 13 of the Law on Enterprise Income Tax and the enterprise income tax exemption and reduction specified in Clause 1, Article 14 of the Law on Enterprise Income Tax.

3. Enterprises, organisations and individuals implementing projects specified at Point dd, Clause 1 of this Article shall be entitled to the following incentives and support:

a) Exemption from land use levy and land rental when land is allocated or leased by the State; exemption from enterprise income tax on income from activities of non-public social assistance establishments, private drug rehabilitation establishments and establishments providing voluntary drug rehabilitation services at home and in the community;

b) Interest rate support from the City-level budget for up to the first 07 years as prescribed by the City People’s Council;

c) Donations and sponsorships by organisations and enterprises for consultancy, public communication, drug prevention and combat, drug rehabilitation, development of new drug rehabilitation models and post-rehabilitation management, and rewards and encouragement for enterprises, organisations and individuals with achievements in drug prevention and combat shall be treated as lawful expenses of such organisations and enterprises for accounting purposes.

Donations and sponsorships by individuals for consultancy, public communication, drug prevention and combat, drug rehabilitation, development of new drug rehabilitation models and post-rehabilitation management, and rewards and encouragement for organisations and individuals with achievements in drug prevention and combat shall be deductible from income before tax calculation for individuals residing in the City.

4. Enterprises, organisations and individuals investing in construction of underground parking facilities, multi-storey parking facilities and shared-use electric charging stations serving means of transport shall be entitled to the following incentives and support:

a) Exemption from land rental and payments for use of underground space throughout the project implementation period;

b) Support equal to 100% of payable import duty on equipment and production lines directly serving projects on construction of underground parking facilities and multi-storey parking facilities using high technologies;

c) Permission to use up to 25% of the total construction floor area of the project under planning for investment in and exploitation of services supporting vehicle parking activities;

d) Interest rate support from the City-level budget as prescribed by the City People’s Council;

dd) Exemption from land rental and rental for rights to exploit public assets for State-managed land areas and road land used for investment in electric charging stations serving means of transport for a period of 05 years.

5. Innovation start-up enterprises in the fields of science, technology and innovation of the City shall be entitled to the following incentives and support:

a) Exemption from enterprise income tax for 05 years from the time enterprise income tax becomes payable on income from innovation start-up activities of innovation start-up enterprises, science and technology organisations, innovation centers and intermediary organisations supporting innovation start-ups arising in the City;

b) Exemption from application of a number of evaluation criteria to prequalification dossiers, bid dossiers and proposal dossiers concerning contractors’ capacity and experience when participating in bidding for the City’s bidding packages, including requirements on turnover, financial resources, similar contracts and other requirements, in conformity with the particular characteristics of innovation start-up enterprises.

When bid dossiers and proposal dossiers are evaluated and ranked, contractors that are innovation start-up enterprises operating in the City shall be entitled to incentives equivalent to those applicable to contractors supplying goods with domestic production costs accounting for 25% or more in accordance with the law on bidding; the method of calculating incentives shall comply with law.

6. Experts, scientists, persons with special talents and innovation start-up individuals shall be exempt from personal income tax for 05 consecutive years on income from salaries and wages arising from work at innovation start-up enterprises, science and technology organisations, innovation centers and intermediary organisations supporting innovation start-ups in the City.

7. The City People’s Council shall prescribe the criteria, conditions, order and procedures for implementation of the incentives and support specified in Clauses 2, 3, 4, 5 and 6 of this Article, and other incentives and support within the capacity of the City budget.

The determination of the period for application of preferential tax rates, tax exemption and reduction periods, and conditions for application of enterprise income tax incentives specified in this Article shall comply with the law on enterprise income tax.

Section 7

REGIONAL LINKAGE AND DEVELOPMENT

Article 40. Objectives and principles of regional linkage and development

1. The City is the nucleus and central urban center of the special urban region and shall carry out linkage and development of the special urban region in coordination with localities in related socio-economic regions, in conformity with its role as a center and growth pole of the region.

2. The State shall prioritize resources to promote linkage and development between the City and localities in the special urban region.

3. Linkage and development of the special urban region must comply with the following principles:

a) Ensuring consensus, publicity and transparency;

b) Coordinating and linking development through programs, plans and projects on linkage and development of the special urban region;

c) Ensuring consistency in spatial organisation of development, investment in shared technical infrastructure and linkage between the City and localities in the special urban region; conforming with national-level planning, regional planning, the City master plan and provincial planning.

4. Planning and investment in development of projects on linkage and development of the special urban region and projects on linkage and development with localities in related socio-economic regions must satisfy the following requirements:

a) Ensuring coordination and consistency of technical standards and regulations on transport infrastructure and shared infrastructure among localities;

b) Coordinating mineral resource exploitation; environmental and water resource management; treatment of air pollution and water pollution; nature and biodiversity conservation; climate change response; and disease control;

c) Developing production and supply chains of products and services in the fields of industry, agriculture, logistics, science and technology, education, training, health, labour, culture and tourism.

Article 41. Investment in and management of regional linkage and development projects

1. The proposal and implementation of regional linkage and development projects and special urban region linkage and development projects shall be carried out as follows:

a) The City People’s Committee and related localities shall report to the People’s Councils at the same level for consideration and agreement on project implementation;

b) The City People’s Committee and localities participating in a project shall agree to select one provincial-level People’s Committee to act as the managing agency or competent agency for project implementation.

2. The central budget and local budgets shall allocate funds for implementation of regional linkage and development projects and special urban region linkage and development projects using the state budget as follows:

a) The central budget shall prioritize capital allocation for projects;

b) Priority shall be given to allocation from increases in central budget revenues to ensure investment in regional linkage and development projects and special urban region linkage and development projects ahead of other programs, tasks and projects;

c) The Prime Minister shall decide on the list of projects eligible for support from the central budget specified in this Article at the proposal of the City People’s Committee.

3. Localities participating in implementation of regional linkage and development projects and special urban region linkage and development projects have the following rights:

a) Applying the Law on Urban Development and documents implementing the Law on Urban Development to formulate, appraise, approve and implement regional linkage and development projects and special urban region linkage and development projects under resolutions of the provincial-level People’s Councils of such localities after agreement with the City People’s Council;

b) Using their budgets to invest directly in special urban region linkage and development projects located in other localities within the special urban region in order to address issues relating to transport infrastructure, environment, clean water supply, drainage and other works serving common interests;

c) Enjoying incentives and support specified in Clause 2, Article 39 of this Law for projects in the fields of environment and climate change response and regional food safety projects.

4. The Special Urban Region Development Fund shall be established and operate as follows:

a) The Special Urban Region Development Fund is an off-budget state financial fund established by the City People’s Council on the basis of agreement with the provincial-level People’s Councils of localities in the special urban region;

b) The Fund’s financial sources shall be formed from the central budget, budgets of localities in the special urban region, support and sponsorship sources, and other lawful sources;

c) The Fund shall be used to invest in special urban region linkage and development projects, prioritizing transport projects, important infrastructure projects, environmental pollution treatment projects and mineral exploitation projects; and handling of incidents, natural disasters and regional disease control;

d) The Fund’s operational regulations shall be promulgated by the City People’s Committee on the basis of agreement with the provincial-level People’s Committees of localities in the special urban region.

5. A locality engaged in regional linkage and development with the special-grade urban center shall be responsible for:

a) Coordinating with the City in formulating and organising implementation of programs, plans and projects on regional linkage and development;

b) Balancing local budget funds for implementation of projects within its locality; allocating funds for management, maintenance, repair and operation of infrastructure works within its locality;

c) Sharing environmental costs, including costs of controlling, mitigating and remedying related environmental pollution;

d) Providing information and data serving regional linkage and development and coordinating in addressing arising issues;

dd) Coordinating in supervision, examination and inspection of compliance with regulations on regional linkage and development.

Article 42. Environmental protection and climate change response in the special urban region

1. Coordination in environmental protection and climate change response in the special urban region with respect to inter-provincial issues includes management and improvement of air quality; management of water resources and wastewater by river basin and drainage system; solid waste management along the generation - collection - transport - treatment chain; and management of greenhouse gas emissions and climate change adaptation.

The City People’s Committee shall play the coordinating role in the special urban region coordination mechanism for environmental protection and climate change response on the basis of ensuring harmony of interests, sharing responsibilities and complying with law.

2. The special urban region coordination mechanism for environmental protection includes the following principal contents:

a) Sharing, connecting and jointly using data on the environment, pollution sources and emission sources;

b) Establishing an inter-regional environmental pollution monitoring and supervision system;

c) Formulating and organising implementation of regional environmental plans appropriate to each environmental component;

d) Managing water quality and ambient air quality; managing solid waste and wastewater; conserving nature and biodiversity; responding to climate change; controlling pollution and responding to environmental pollution incidents;

dd) Mobilising, allocating and jointly using resources for inter-provincial tasks, schemes and projects on environmental protection and climate change response.

3. On the basis of agreement with the provincial-level People’s Committees of localities in the special urban region, the City People’s Committee shall formulate a coordination mechanism, coordination contents, responsibilities of related parties and a mechanism for supervision of implementation of regional coordination in environmental management.

4. On the basis of agreement on contents among localities in the special urban region, the City and other localities in the special urban region may prescribe environmental protection measures stricter than those prescribed by competent state agencies, which shall be implemented as follows:

a) Provincial-level People’s Councils shall prescribe entities and discharge flow rates of wastewater, dust and industrial emissions subject to automatic and continuous monitoring measures; and higher environmental protection charge rates applicable to wastewater, dust and industrial emissions;

b) Provincial-level People’s Committees shall prescribe environmental technical regulations on waste and the roadmap for their application.

The promulgation of legal documents by provincial-level People’s Councils and People’s Committees of other localities in the special urban region as specified in this Clause shall comply with the law on legal documents.

Chapter III

MECHANISMS AND POLICIES FOR DEVELOPMENT

OF SPECIAL ECONOMIC ZONES

Article 43. Recognition of special economic zones

1. A commune, ward or special zone shall be recognised as a special economic zone when satisfying the following criteria:

a) Having a strategic location, conforming with socio-economic development orientations and ensuring national defense and security;

b) Having an international airport or a Class-I or higher-grade seaport;

c) Having relatively independent and controllable space, and a large population size and natural area.

2. The Government shall recognise a special economic zone after in-principle approval from the competent authority.

3. The Government shall detail Clause 1 of this Article.

Article 44. Tasks and powers regarding organisational apparatus in special economic zones

1. The provincial-level People’s Council of the locality where a special economic zone is located shall decide on the number of People’s Council deputies, the proportion of full-time deputies of the People’s Council; and the number, functions, tasks and powers of the Committees of the People’s Council in the special economic zone.

2. The provincial-level People’s Committee of the locality where a special economic zone is located shall decide on the number of members of the People’s Committee in the special economic zone; and the number of Vice Chairpersons of the People’s Committee in the special economic zone. The number of Vice Chairpersons of the People’s Committee in the special economic zone shall not be counted toward the total number of Vice Chairpersons of commune-level People’s Committees of the entire province or city within the numerical framework prescribed by the Government.

3. The People’s Council in a special economic zone has the competence to:

a) Decide on a number of specialised agencies and other administrative organisations greater than that prescribed by the Government; and the establishment, reorganisation, dissolution, renaming and adjustment of functions of specialised agencies and other administrative organisations under the People’s Committee in the special economic zone in conformity with the particular characteristics of the special economic zone;

b) Prescribe civil servant and public employee positions of specialised agencies and other administrative organisations under the People’s Committee in the special economic zone.

4. The People’s Committee in a special economic zone has the competence to:

a) Perform the tasks and powers of management boards of industrial parks, export-processing zones, hi-tech parks and economic zones within its locality in accordance with law, except the case specified at Point a, Clause 2, Article 49 of this Law;

b) Decide on the establishment, reorganisation, dissolution, renaming and adjustment of functions of public non-business units under the management of the People’s Committee in the special economic zone in conformity with the particular characteristics of the special economic zone.

5. The Chairperson of the People’s Committee in a special economic zone shall decide on:

a) The hiring, recruitment and appointment of heads of public non-business units under the management of the People’s Committee in the special economic zone;

b) The conclusion of contracts for performance of professional work within the locality’s budget-balancing capacity.

6. State management of customs inspection and supervision in a special economic zone shall be performed by a customs unit designated by the regional customs authority managing the locality where the special economic zone is located. Where necessary, the competent customs management agency shall establish a new customs unit to conduct inspection and supervision in the special economic zone.

7. Based on the particular conditions, development orientations and implementation capacity of each locality, the Government shall adjust certain tasks and powers from the provincial-level People’s Committee, Chairperson of the provincial-level People’s Committee, specialised agencies and other administrative organisations under the provincial-level People’s Committee of the locality where a special economic zone is located to agencies, organisations and individuals in the special economic zone.

Article 45. Planning in special economic zones

1. General planning of a special economic zone:

a) The general planning of a special economic zone shall be formulated for the special economic zone on the basis of integrating the contents of the general planning of the economic zone (if any) commune general planning, urban general planning and equivalent planning, and general planning of a special zone that is an urban area in accordance with the law on urban and rural planning, together with orientations, viewpoints, vision and socio-economic development objectives of the special economic zone;

b) The general planning of a special economic zone shall be formulated for the entire area of the special economic zone to concretise the contents of national-level planning, regional planning, provincial planning and the City master plan (if any), and shall replace and have the same legal validity as related general planning and zoning planning concerning the special economic zone;

c) The contents of the general planning of a special economic zone as formulated or approved, including approved adjustments thereto, may differ from provincial planning in order to meet socio-economic development requirements of the country and the special economic zone. Provincial planning, city general planning and the City master plan (if any) shall be adjusted after the general planning of the special economic zone is approved;

d) The People’s Committee in the special economic zone shall organise the formulation, appraisal, approval, publication and adjustment of the general planning of the special economic zone in accordance with the order, procedures, contents and cost norms prescribed by the provincial-level People’s Committee.

In cases where the special economic zone belongs to the City, Point a, Clause 2, Article 10 of this Law shall apply.

2. Detailed planning of a special economic zone:

a) Detailed planning shall be formulated for each area within the special economic zone on the basis of concretising the contents of the general planning of the special economic zone;

b) The contents of detailed planning of a special economic zone shall comply with the law on urban and rural planning. The People’s Committee in the special economic zone shall organise the formulation, appraisal, approval, announcement and adjustment of detailed planning in the special economic zone in accordance with the order and procedures prescribed by the provincial-level People’s Committee;

c) Detailed planning in a special economic zone shall be organised for formulation concurrently with the general planning of the special economic zone. Detailed planning that has been formulated and appraised before the general planning of the special economic zone may be approved first. Where approved detailed planning is inconsistent with the general planning of the special economic zone, it must be adjusted to ensure conformity and consistency in contents with the general planning of the special economic zone.

3. The general planning of a special economic zone and detailed planning in a special economic zone are not required to undergo formulation, appraisal and approval of planning tasks.

Article 46. Assurance of order and safety in special economic zones

1. The provincial-level People’s Council of the locality where a special economic zone is located shall prescribe the application in the special economic zone of the measures specified in Clauses 2 and 3, Article 16 of this Law.

2. The responsibilities of electricity and water service providers and the amendment and supplementation of related contracts shall comply with Clause 5, Article 16 of this Law.

Article 47. Management and use of finance and budgets in special economic zones

1. The State shall prioritize allocation of resources from the central budget for investment in key socio-economic infrastructure projects in special economic zones after receiving directions from the Party Central Committee, Political Bureau, Secretariat, Government Party Committee and Prime Minister.

2. The People’s Council in a special economic zone shall prescribe expenditure contents from the locality’s funding source for implementation of salary policies after ensuring sufficient funds for salary reform and social security policies as prescribed, for performance of the following tasks:

a) Paying additional average income based on work performance to cadres, civil servants and public employees working in administration, Party and mass organisation agencies managed by the People’s Committee in the special economic zone;

b) After payment of the additional average income specified at Point a of this Clause, in cases where the salary reform funding source remains in surplus, using such surplus for investment in infrastructure projects, social housing, rental housing and accommodation facilities in the special economic zone.

3. The provincial-level People’s Council of the locality where a special economic zone is located shall decide on support for additional average income for the subjects specified at Point a, Clause 2 of this Article from the locality’s funding source for implementation of salary policies after ensuring sufficient funds for salary reform and social security policies as prescribed.

4. The People’s Council in a special economic zone shall prescribe reward policies to honour, motivate and encourage domestic and foreign collectives, households and individuals with outstanding achievements in the construction, development, management and protection of the special economic zone.

5. The mechanism for implementation of greenhouse gas emission reduction measures under carbon credit exchange and offset mechanisms is as follows:

a) Revenues from carbon credit transactions generated from programs and projects funded by the budget of the special economic zone or from programs and projects for which investors commit revenues to the special economic zone shall constitute provincial-level budget revenues of which 100% shall be retained, and shall not be used to determine balancing supplements between the central budget and local budgets;

b) The provincial-level People’s Council of the locality where a special economic zone is located shall promulgate regulations on the use of all revenues from carbon credit transactions specified at Point a of this Clause for investment in programs and projects on climate change response and development of the green economy, digital economy and circular economy in the special economic zone.

Article 48. Attraction of strategic investors in special economic zones

1. The List of projects prioritized for attraction of strategic investors in special economic zones includes:

a) Investment in construction and commercial operation of inland waterway tourism, logistics centers, non-tariff zones and hi-tech parks, with an investment capital of VND 1,000 billion or more;

b) Investment in construction of marine ecological centers, hi-tech marine aquaculture facilities and marine parks, with an investment capital of VND 1,500 billion or more;

c) Investment in construction and commercial operation of infrastructure of airports, aerodromes and port terminals; seaport services; yacht exploitation and operation; and transport works connecting island routes, with an investment capital of VND 2,300 billion or more;

d) Investment in construction and commercial operation of hotels, tourism service zones, high-end resorts, integrated entertainment zones and high-end integrated tourism service zones, with an investment capital of VND 10,000 billion or more; where investment is made in and commercial operation of an integrated service, tourism and entertainment zone with a casino (hereinafter referred to as a casino project), the investment capital must be equivalent to USD 2 billion or more;

dd) Investment projects in the fields of the clean energy industry, hi-tech processing and manufacturing industries, precision engineering, national reserve centers for energy, fuels and strategic minerals, and pharmaceutical research centers, with an investment capital of VND 6,000 billion or more;

e) Investment in high-quality healthcare establishments and high-quality educational establishments, with an investment capital of VND 1,000 billion or more;

g) Investment in construction and commercial operation of aviation fuel supply services (including clean fuel), aircraft maintenance and repair, and related aviation technical services, with an investment capital of VND 6,000 billion or more;

h) Investment projects on shipbuilding and ship repair, supporting shipbuilding industries, and construction of facilities for repair and construction of tourist vessels and yachts, with an investment capital of VND 6,000 billion or more.

2. A strategic investor in a special economic zone means an investor selected to implement a project on the List of projects prioritized for attraction of strategic investors in the special economic zone and satisfying the following conditions:

a) Contributing equity capital to the project equal to at least 20% of the total investment capital for a project with an investment capital of less than VND 10,000 billion;

b) Contributing equity capital to the project equal to at least 15% of the total investment capital for a project with an investment capital of VND 10,000 billion or more;

c) In cases where multiple investors jointly invest in the same project, the total equity capital contributed to the project by such investors must satisfy the equity capital requirement specified at Point a or Point b of this Clause, of which at least 01 investor must contribute at least 30% and each of the remaining investors must contribute at least 15%. For a project comprising multiple component projects or multiple investment phases, except a commercial housing project, the minimum equity capital contributed to the project shall be determined for each component project or investment phase but shall not be lower than 30% of the total minimum equity capital required to be contributed to each component project or investment phase of the project and must comply with Clause 7 of this Article;

d) Satisfying the condition specified at Point d, Clause 2, Article 36 of this Law.

3. Strategic investors in special economic zones shall be entitled to the following incentives and support:

a) Enterprise income tax incentives for investment projects implemented in special economic zones equivalent to those applicable to investment projects in areas with particularly difficult socio-economic conditions;

b) An extension of the period of application of preferential enterprise income tax rates for income from new investment projects specified in Clause 1 of this Article by no more than 05 years compared with the period prescribed by the law on enterprise income tax. The Chairperson of the People’s Committee in the special economic zone shall decide on extension of the period of application of preferential enterprise income tax rates specified at this Point.

4. The principles, conditions and grounds for determining the period of application of incentives specified in Clause 3 of this Article shall comply with the law on tax.

5. An investor implementing a casino project may include the capital already disbursed into urban, service, tourism and entertainment projects and infrastructure projects in the special economic zone when considering the condition of disbursement of at least 50% of the total investment capital of the project for grant of a certificate of eligibility for casino business. The casino business operation term shall be the operation term of the project, except where national defense or security is affected.

An enterprise having obtained approval of the investment policy for a casino project must commit not to transfer its contributed capital in enterprises implementing infrastructure projects, and enterprises implementing infrastructure projects must commit not to transfer such infrastructure projects until the casino project has completed disbursement of at least 50% of its total investment capital. The investment capital already disbursed for implementation of infrastructure projects may only be counted up to 25% of the total investment capital of the casino project (not exceeding an amount equivalent to USD 500 million), when determining the time at which casino business is permitted.

6. Strategic investors in special economic zones shall be entitled to the priority regime specified at Point b, Clause 7, Article 36 of this Law.

The head of the regional customs authority managing the locality where the special economic zone is located has the competence to recognise, extend, temporarily suspend or suspend application of the priority regime to strategic investors in the special economic zone.

7. Strategic investors in special economic zones have the following obligations:

a) For a project with an investment capital of less than VND 10,000 billion, the total investment capital of the project must be disbursed within 05 years from the date of handover of land or handover of the sea area on site.

For a project with an investment capital of VND 10,000 billion to less than VND 50,000 billion, the total investment capital of the project must be disbursed within 07 years from the date of handover of land or handover of the sea area on site.

For a project with an investment capital of VND 50,000 billion to less than VND 100,000 billion, the total investment capital of the project must be disbursed within 10 years from the date of handover of land or handover of the sea area on site.

For a project with an investment capital of VND 100,000 billion or more, the total investment capital of the project must be disbursed within 15 years from the date of handover of land or handover of the sea area on site;

b) Not transferring the project, or contributed capital or shares in the organisation established to implement the project, within 10 years from the date of handover of land or handover of the sea area on site;

c) Providing financial support for vocational training for workers affected in the project area; prioritizing recruitment of local workers for employment in the project; and implementing commitments on application and transfer of technology (if any).

8. A strategic investor in a special economic zone that is allocated or leased land by the State without auction of land use rights shall be responsible for advancing funds for implementation of the compensation, support and resettlement plan approved by the competent agency where the State recovers land for national defense or security purposes or for socio-economic development in the national and public interests in accordance with the land law and Clause 1, Article 50 of this Law. The handling of advanced funds specified in this Clause shall comply with the land law.

9. During implementation of an investment project, where a strategic investor in a special economic zone fails to satisfy the conditions regarding capital, disbursement schedule or other conditions applicable to strategic investors, it shall not be entitled to incentives specified in this Law, except in cases of force majeure or causes not attributable to the investor. The investor shall be liable for consequences arising from failure to properly perform its commitments and obligations in accordance with law.

10. The People’s Council in a special economic zone shall prescribe:

a) Criteria, conditions, order and procedures for selection of strategic investors specified in Clause 2 of this Article, except investment in casino projects;

b) Penalties, reimbursement of incentives and support already received, and termination of projects due to failure to satisfy conditions or perform commitments and obligations of strategic investors.

Article 49. Investment management in special economic zones

1. The People’s Committee in a special economic zone has the competence to:

a) Decide on investment policy and adjustment of investment policy for projects falling within the competence of the provincial-level People’s Council and provincial-level People’s Committee and using budget funds of the special economic zone, including targeted additional allocations from higher-level budgets, lawful funds of the locality under its management, or support from the central budget, provincial-level budget and other lawful funding sources for the special economic zone;

b) Prescribe a list of new construction materials, recycled materials, green materials, lightweight materials, smart materials, environmentally friendly materials and materials suitable for coastal areas prioritized for use; prescribe proportions and roadmaps for use appropriate to the characteristics of works and practical conditions of the special economic zone; and decide on prioritization of design solutions that limit the use of traditional materials, reduce emissions and save resources.

2. The Chairperson of the People’s Committee in a special economic zone has the competence to:

a) Approve investment policy and approve adjustment of investment policy for investment projects in the special economic zone falling within the competence of the Chairperson of the provincial-level People’s Committee to approve investment policy under the law on investment;

b) Grant, adjust and revoke investment registration certificates and exercise other powers of the investment registration agency as prescribed for projects in the special economic zone;

c) Grant, adjust and revoke business licences and licences for establishment of retail outlets for projects implemented in the special economic zone;

d) Decide on investment in projects falling within the competence of the People’s Committee in the special economic zone to decide on investment policy;

dd) Assign the specialised construction agency under the People’s Committee in the special economic zone to appraise feasibility study reports for projects in the special economic zone for which the Chairperson of the People’s Committee in the special economic zone decides on investment, and business investment projects subject to appraisal of feasibility study reports under the law on construction.

3. The People’s Council in a special economic zone shall prescribe:

a) The order and procedures for formulation, appraisal, decision on investment policy, approval of investment policy, adjustment of investment policy and approval of adjustment of investment policy for projects specified at Point a, Clause 1 and Point a, Clause 2 of this Article;

b) The order and procedures for implementation of the matters specified at Points b and c, Clause 2 of this Article.

Article 50. Management and use of resources and environmental protection in special economic zones

1. Cases of land recovery in a special economic zone include:

a) Cases of land recovery prescribed by the land law;

b) Land recovery for implementation of socio-economic development projects in the national and public interests for projects requiring immediate implementation under directions of the Political Bureau, Secretariat, Government Party Committee, and the Executive Committee of the Provincial or City Party Committee.

The competence, order and procedures for land recovery specified at this Point shall comply with the competence, order and procedures for land recovery for national defense and security purposes and for socio-economic development in the national and public interests under the land law.

2. The provincial-level People’s Committee shall prescribe cases of application of land price tables; land price tables and adjustment coefficients or determination of specific land prices in the special economic zone; the order for determination, appraisal and approval of specific land prices in the special economic zone; and assignment of consultancy organisations to determine land prices by simplified contractor appointment.

3. The People’s Committee in a special economic zone may allocate or lease land without auction of land use rights and without bidding for investor selection for implementation of land-using projects with respect to social housing, rental housing and accommodation projects and the cases specified at Point b, Clause 1 of this Article.

4. The Chairperson of the People’s Committee in a special economic zone has the competence to:

a) Decide on land allocation, land lease and permission for change of land use purpose from paddy land, special-use forest land, protection forest land or production forest land to other purposes in the special economic zone in accordance with the order and procedures prescribed by the provincial-level People’s Committee of the locality where the special economic zone is located, ensuring publicity, transparency and efficiency, preventing losses, corruption, waste, negative practices, group interests and parochial interests, and conforming with land use norms for paddy land, special-use forest land, protection forest land and production forest land under land use planning and plans or land allocation and zoning schemes in provincial or city planning allocated to the special economic zone;

b) Decide on specific land prices for calculation of land use levy and land rental in the special economic zone in accordance with Clause 2 of this Article;

c) Organise appraisal and approve appraisal results of environmental impact assessment reports for investment projects in the special economic zone for which approval of appraisal results falls within the competence of the Chairperson of the provincial-level People’s Committee of the locality where the special economic zone is located under the law on environmental protection, in accordance with the order and procedures prescribed by the People’s Council in the special economic zone;

d) Receive environmental registrations for investment projects and establishments in the special economic zone falling within the competence of the Chairperson of the provincial-level People’s Committee of the locality where the special economic zone is located;

dd) Grant, adjust and revoke environmental licences for investment projects and establishments in the special economic zone falling within the competence of the Chairperson of the provincial-level People’s Committee of the locality where the special economic zone is located under the law on environmental protection, in accordance with the order and procedures prescribed by the People’s Council in the special economic zone.

Article 51. Attraction and development of human resources in special economic zones

1. The provincial-level People’s Council of the locality where a special economic zone is located has the competence to:

a) Decide on the use of the provincial or city budget for investment in construction of housing and rental housing for experts, scientists, persons with special talents, managers, highly qualified workers and workers having labour contracts and working in the special economic zone for lease, purchase or lease-purchase;

b) Prescribe free medical examinations at hospitals and public healthcare establishments under the management of the province or city for experts, scientists, persons with special talents, managers and highly qualified workers working in the special economic zone and their family members (including biological parents; parents of spouses; and biological or adopted children under 18 years of age), where needed;

c) Decide on exemption from tuition fees and other related service prices in the field of education and training for biological or adopted children under 18 years of age of experts, scientists, persons with special talents, managers and highly qualified workers working in the special economic zone when studying at public educational institutions of the province or city;

d) Prescribe policies on income, salaries, bonuses and other preferential treatment regimes appropriate to the balancing capacity of the provincial-level budget;

dd) Prescribe subjects, criteria, income levels, and support for costs of renting or purchasing housing and accommodation costs for experts, scientists and persons with special talents working in the special economic zone;

e) Prescribe the order, procedures and methods of support for implementation of the policies specified in this Clause.

2. The Chairperson of the People’s Committee in a special economic zone may grant, re-grant, extend and revoke work permits and certify exemption from work permit requirements, and carry out other necessary procedures for foreign workers working at organisations, enterprises and projects or participating in implementation, operation and management of investment projects in the special economic zone; and may permit related order and procedures to be carried out concurrently.

3. The People’s Council in a special economic zone shall prescribe the order and procedures for implementation of the matters specified in Clause 2 of this Article.

Article 52. Development of the marine economy within special economic zones

1. Allocation of sea areas for aquaculture in special economic zones shall be carried out as follows:

a) After the provincial-level People’s Committee obtains the opinions and approval of the Ministry of National Defense, the People’s Committee in the special economic zone shall allocate sea areas for marine aquaculture to domestic investors for sea areas located beyond the 06-nautical-mile sea area measured from the multi-year average lowest sea-water line of the mainland or of the largest island of the special zones, or located both within and beyond the 06-nautical-mile sea area but not extending beyond the outer boundary of the territorial sea;

b) Exemption from payments for use of sea areas for 15 years and a 50% reduction in payments for use of sea areas for the remaining period for sea areas allocated for implementation of marine aquaculture projects of domestic investors conducting marine aquaculture within the 06-nautical-mile sea area, beyond the 06-nautical-mile sea area, or in sea areas located both within and beyond the 06-nautical-mile sea area measured from the multi-year average lowest sea-water line of the mainland or of the largest island of the special zones.

An enterprise income tax rate of 10%, tax exemption for 04 years and a reduction of 50%  in payable tax for the subsequent 09 years shall apply to income of organisations that are domestic investors from marine aquaculture projects within the 06-nautical-mile sea area, beyond the 06-nautical-mile sea area, or in sea areas located both within and beyond the 06-nautical-mile sea area measured from the multi-year average lowest sea-water line of the mainland or of the largest island of the special zones;

c) Within the balancing capacity of the local budget, the provincial-level People’s Council shall decide on financial support for purchase of accident insurance for workers working on aquaculture cages and rafts and on means serving marine aquaculture activities, and support for purchase of natural disaster risk insurance for aquaculture species raised at sea;

d) The commencement time for entitlement to incentives, conditions for application of tax incentives and income eligible for incentives specified in this Clause shall comply with the law on tax.

2. In addition to the contents specified in Clause 1 of this Article, based on the balancing capacity of the local budget, the People’s Council in the special economic zone shall promulgate other special mechanisms and policies to promote and develop the marine economy.

Article 53. Competence for establishment of, and mechanisms and policies applicable to, non-tariff zones in special economic zones

1. The Chairperson of the provincial-level People’s Committee of the locality where a special economic zone is located shall decide on establishment of a non-tariff zone in the special economic zone after obtaining opinions from the Ministry of Finance.

2. Mechanisms and policies applicable to non-tariff zones in special economic zones shall comply with Article 22 of this Law.

3. Mechanisms and policies applicable to other investment and business activities in a non-tariff zone:

a) Foreign investors may conduct merchanting trade in goods. The order and procedures for grant of merchanting trade licenses shall comply with the law on foreign trade management;

b) Enterprises conducting production and business activities in a non-tariff zone may post, quote, determine and state prices in contracts in foreign currencies, and make and receive payments among themselves in foreign currencies by account transfer for the provision of goods and services in the non-tariff zone;

c) Foreign bank branches may open transaction offices in a non-tariff zone outside their branch offices in accordance with the conditions, dossiers, procedures and scope of operations prescribed by the Governor of the State Bank of Vietnam.

Article 54. Establishment and business operation of duty-free shops in special economic zones

1. The establishment and business operation of duty-free shops in special economic zones shall comply with the law on duty-free business.

2. Persons awaiting exit may purchase duty-free goods at duty-free shops in special economic zones without limitation on quantity and value. Duty-free goods shall be received at goods delivery counters in the restricted area of the international border gate through which passengers exit.

3. Foreigners entering Vietnam who have registered to stay in a special economic zone may purchase duty-free goods at duty-free shops in the special economic zone for use during their stay.

In cases where the stay is 10 days or longer, they may purchase duty-free goods once within the allowance specified in Clause 4 of this Article.

4. The allowance for purchase of duty-free goods in special economic zones applicable to the subjects specified in Clause 3 of this Article shall be prescribed by the Government.

5. Enterprises trading in duty-free goods shall be responsible for selling goods to the proper subjects, for the proper purposes of use and within the allowances prescribed in this Law and other relevant laws.

Chapter IV

SUPERVISION, INSPECTION, EXAMINATION

AND ACCOUNTABILITY

Article 55. Responsibilities of the National Assembly, agencies of the National Assembly, National Assembly deputy delegations and National Assembly deputies

1. The National Assembly shall consider reports on implementation of this Law at the proposal of the National Assembly Standing Committee or the Government; and decide on annulment of the whole or part of documents promulgated by the Government under this Law.

2. The National Assembly Standing Committee shall be responsible for:

a) Supervising implementation of this Law;

b) Based on the provisions of law or for the purpose of ensuring national interests, national defense, security and national external affairs, suspending implementation of documents promulgated by the Government under this Law and submitting them to the National Assembly for decision on annulment at its nearest session; and deciding on annulment of the whole or part of documents promulgated by provincial-level People’s Councils under this Law;

c) Considering reports of the Government on implementation of the mechanisms and policies specified in Clauses 5 and 6, Article 1 and Clause 7, Article 63 of this Law; and considering reports of the People’s Council of the City that is a special-grade urban center on implementation of this Law.

3. The Ethnic Council and Committees of the National Assembly, within the scope of their tasks and powers, shall be responsible for supervising implementation of this Law and the promulgation of documents implementing the Law on Urban Development by the City that is a special-grade urban center.

4. National Assembly deputy delegations and National Assembly deputies, within the scope of their tasks and powers, shall be responsible for:

a) Supervising implementation of this Law and promulgation of documents implementing the Law on Urban Development;

b) Recommending competent agencies to handle issues arising during implementation of this Law;

c) Participating in improvement of mechanisms and policies for development of cities, special urban regions and special economic zones.

Article 56. Responsibilities of the Government, Prime Minister, ministries and ministerial-level agencies

1. The Government shall be responsible for:

a) Organising monitoring, examination and inspection of implementation of this Law; ensuring that delegation of power and decentralization under this Law are implemented consistently, effectively and in accordance with regulations;

b) Directing the monitoring, assessment and control of risks in implementation of the mechanisms and policies specified in this Law;

c) Reporting to the National Assembly Standing Committee on implementation of the mechanisms and policies specified in Clauses 5 and 6, Article 1 and Clause 7, Article 63 of this Law.

2. The Prime Minister shall be responsible for:

a) Directing inter-sectoral coordination and handling inter-regional and inter-sectoral issues arising during implementation of the mechanisms and policies specified in this Law;

b) Based on the provisions of law or for the purpose of ensuring national interests, national defense, security and national external affairs, suspending implementation of the whole or part of documents promulgated by provincial-level People’s Councils under this Law and concurrently reporting to the National Assembly Standing Committee for annulment thereof; and annulling the whole or part of documents promulgated by People’s Committees or Chairpersons of People’s Committees under this Law.

3. Ministries and ministerial-level agencies shall be responsible for:

a) Providing professional and operational guidance; conducting examination and inspection and carrying out other state management activities by sector or field in conformity with the provisions on delegation of power and decentralization under this Law;

b) Coordinating with provincial-level People’s Committees in formulating, organising implementation of, and assessing the mechanisms and policies specified in this Law;

c) Reporting or making recommendations to the Prime Minister regarding suspension of implementation or annulment of documents specified at Point b, Clause 2 of this Article.

Article 57. Responsibilities of the City administration

1. The People’s Councils, People’s Committees and Chairpersons of People’s Committees at all levels of the City, within the scope of their tasks and powers, shall be responsible for:

a) Promptly organising and ensuring implementation of this Law and documents implementing the Law on Urban Development; ensuring resources for implementation of the mechanisms and policies specified in this Law;

b) Conducting inspection, examination and supervision of implementation of this Law and documents implementing the Law on Urban Development within their respective management scopes, and taking responsibility for violations and shortcomings occurring in the construction, development and protection of the City;

c) Ensuring publicity and transparency and strengthening accountability so that the People may be informed of, give opinions on and supervise implementation of this Law;

d) Not decentralising or authorising the powers specified in this Law, except the power specified in Clause 3, Article 26 of this Law.

For powers of the City People’s Council, City People’s Committee and Chairperson of the City People’s Committee specified in other legal normative documents, decentralization and authorization shall comply with such legal normative documents.

2. The City People’s Council, within the scope of its tasks and powers, shall be responsible for implementing Clause 1 of this Article and performing the following tasks and powers:

a) Supervising implementation of this Law;

b) Reporting to the National Assembly Standing Committee on the results of implementation of Clause 4, Article 34 of this Law; where mechanisms or policies different from those prescribed in laws or resolutions of the National Assembly are applied, reporting to the National Assembly at its nearest session;

c) Annually reporting to the National Assembly Standing Committee on implementation of this Law.

3. The City People’s Committee, within the scope of its tasks and powers, shall be responsible for implementing Clause 1 of this Article and performing the following tasks and powers:

a) Ensuring safety and favourable conditions for activities of central agencies of the Party and State, socio-political organisations, foreign representative missions in Vietnam and international organisations, and for organisation of national and international programs and events in the City;

b) Coordinating with and supporting localities in the special urban region and throughout the country through expansion of forms of linkage and cooperation for mutual development;

c) Creating favourable conditions for agencies, organisations and individuals to participate effectively in the construction, development and protection of the City;

d) Proposing to the City People’s Council for consideration and decision on application of law specified at Point a, Clause 3, Article 5 of this Law;

dd) Organising assessment of the effectiveness of legal normative documents promulgated under Article 7 of this Law after 01 year of implementation; conducting preliminary and final reviews in accordance with law or at the request of the City People’s Council, Prime Minister or National Assembly Standing Committee;

e) Annually reporting to the City People’s Council and the Government on implementation of this Law.

4. Within 07 days from the date of promulgation of a legal normative document under Articles 7 and 8 of this Law, the City People’s Council, City People’s Committee and Chairperson of the City People’s Committee, according to the tasks and powers delegated to them under this Law, shall be responsible for:

a) Reporting to the National Assembly Standing Committee on matters falling within the competence of the National Assembly or National Assembly Standing Committee;

b) Reporting to the Government and Prime Minister on matters falling within the competence of the National Assembly, National Assembly Standing Committee, Government or Prime Minister;

c) Reporting to ministries and ministerial-level agencies on matters falling within the competence of such ministries and ministerial-level agencies.

5. Accountability of the City administration:

a) Providing explanations at the request of competent agencies where major issues arise that have spillover effects or affect national interests, assurance of national defense, security, national external affairs, social order and safety, human rights and fundamental rights of citizens.

The explanations shall include the objectives, scope of impacts, and assessment of risks and socio-economic consequences of application of the mechanisms and policies; implementation results, efficiency of resource use, impacts on the City’s development and the common national interests; and measures to prevent, detect and handle limitations, inadequacies and errors arising in the performance of delegated tasks and powers;

b) Publicising the contents of explanations in accordance with law for supervision by the People.

Article 58. Responsibilities of the administration of a city that is not a special-grade urban center

1. The People’s Councils, People’s Committees and Chairpersons of People’s Committees at all levels of the city, within the scope of their tasks and powers, shall be responsible for:

a) Promptly organising implementation and ensuring resources for implementation of the mechanisms and policies implemented under this Law and documents implementing the Law on Urban Development promulgated by the Government;

b) Examining, supervising and organising inspection of implementation of this Law and documents implementing the Law on Urban Development promulgated by the Government within their respective management scopes, and taking responsibility for violations and shortcomings occurring in the construction, development and protection of the city;

c) Ensuring publicity and transparency and strengthening accountability so that the People may be informed of, give opinions on and supervise implementation of this Law and documents implementing the Law on Urban Development promulgated by the Government;

d) Not decentralising or authorising the powers specified in this Law and documents implementing the Law on Urban Development promulgated by the Government.

For powers of the People’s Council, People’s Committee and Chairperson of the People’s Committee of the city specified in other legal normative documents, decentralization and authorization shall comply with such legal normative documents;

dd) Performing other tasks and powers and accountability as prescribed by the Government.

2. The People’s Council of the city, within the scope of its tasks and powers, shall be responsible for implementing Clause 1 of this Article and supervising implementation of this Law and documents implementing the Law on Urban Development promulgated by the Government.

3. The People’s Committee of the city, within the scope of its tasks and powers, shall be responsible for implementing Clause 1 of this Article and annually reporting to the Government and the People’s Council of the city on implementation of this Law and documents implementing the Law on Urban Development promulgated by the Government.

Article 59. Responsibilities of the provincial-level administration of the locality where a special economic zone is located

1. The provincial-level People’s Council, People’s Committee and Chairperson of the provincial-level People’s Committee of the locality where a special economic zone is located, within the scope of their tasks and powers, shall be responsible for:

a) Promptly organising implementation and ensuring resources for implementation of the mechanisms and policies applicable to special economic zones specified in this Law and documents implementing the Law on Urban Development concerning special economic zones;

b) Examining, supervising and organising inspection of implementation of this Law and documents implementing the Law on Urban Development concerning special economic zones, and taking responsibility for violations and shortcomings occurring in the management and development of the special economic zone;

c) Ensuring publicity and transparency and strengthening accountability so that the People may be informed of, give opinions on and supervise implementation of this Law and documents implementing the Law on Urban Development concerning special economic zones;

d) Not decentralising or authorising the powers specified in this Law and documents implementing the Law on Urban Development promulgated by the Government.

For powers of the provincial-level People’s Council, People’s Committee and Chairperson of the provincial-level People’s Committee of the locality where a special economic zone is located specified in other legal normative documents, decentralization and authorization shall comply with such legal normative documents;

dd) Performing other tasks and powers and accountability as prescribed by the Government.

2. The provincial-level People’s Council of the locality where a special economic zone is located, within the scope of its tasks and powers, shall be responsible for implementing Clause 1 of this Article and the following matters:

a) Deciding on mechanisms and policies falling within its competence;

b) Deciding on suspension of implementation and annulment of part or the whole of unlawful documents of the People’s Committee and Chairperson of the People’s Committee at the same level and of the People’s Council in the special economic zone with respect to matters falling within its competence.

3. The provincial-level People’s Committee of the locality where a special economic zone is located, within the scope of its tasks and powers, shall be responsible for implementing Clause 1 of this Article and annually reporting to the Government and the People’s Council at the same level on implementation of this Law and documents implementing the Law on Urban Development concerning special economic zones.

4. The Chairperson of the provincial-level People’s Committee of the locality where a special economic zone is located, within the scope of his or her tasks and powers, shall be responsible for implementing Clause 1 of this Article; suspending implementation and annulling part or the whole of unlawful documents of the People’s Committee and Chairperson of the People’s Committee in the special economic zone; and suspending implementation of unlawful documents of the People’s Council in the special economic zone and reporting to the provincial-level People’s Committee for proposal to the People’s Council at the same level for annulment.

Article 60. Responsibilities of the administration in a special economic zone

The People’s Council, People’s Committee and Chairperson of the People’s Committee in a special economic zone shall be responsible for:

1. Organising implementation of the mechanisms and policies specified in this Law and documents implementing the Law on Urban Development concerning special economic zones;

2. Ensuring publicity, transparency and accountability;

3. Periodically assessing implementation effectiveness and reporting to the provincial-level People’s Council and People’s Committee of the locality where the special economic zone is located;

4. Promptly recommending competent agencies to amend, supplement or promulgate new documents to address arising difficulties and obstacles.

Article 61. Responsibilities of Vietnam Fatherland Front Committees at all levels and member organisations of the Front

Vietnam Fatherland Front Committees at all levels and member organisations of the Front, within the scope of their functions, tasks and powers, shall conduct supervision and social criticism regarding implementation of this Law and documents implementing the Law on Urban Development.

Article 62. Handling of violations, exclusion from and exemption from legal liability

1. Acts of corruption, profiteering and harassment committed by cadres, civil servants, public employees and persons working in the course of implementation of this Law shall be strictly handled.

2. Heads of agencies, organisations and units; cadres, civil servants, public employees and other persons participating in the formulation and promulgation of this Law, documents promulgated under Articles 7 and 8 of this Law, and documents implementing the Law on Urban Development shall be excluded from or exempt from legal liability in cases where they have no self-seeking motive and have complied with regulations on competence, order and procedures in performing their tasks but damage nevertheless occurs.

3. Cadres, civil servants, public employees and other persons working who, in the common interest, while performing tasks or official duties assigned by competent agencies or competent persons, cause damage but are concluded by competent agencies not to have acted for self-seeking motives and to have acted for the common development of the City or special economic zone, shall, depending on the nature and severity, be excluded from or exempt from legal liability.

Chapter V

IMPLEMENTATION PROVISIONS

Article 63. Implementation provisions

1. This Law takes effect on October 01, 2026, except as provided in Clauses 2 and 3 of this Article.

2. The provisions in Clause 4, Article 7 of this Law take effect on September 01, 2026. From the date this Law is adopted, Ho Chi Minh City shall formulate and promulgate documents implementing the Law on Urban Development in accordance with this Law.

3. The tax incentive policies specified at Point b Clause 2, Point a Clause 3, Point a Clause 5, Clauses 6 and 7, Article 39; Clauses 3 and 4, Article 48; and Points b and d, Clause 1, Article 52 of this Law shall apply from the 2027 tax period.

4. Resolution No. 98/2023/QH15 dated June 24, 2023, of the National Assembly on experimentation of a number of special mechanisms and policies for development of Ho Chi Minh City, as amended and supplemented by Law No. 71/2025/QH15, Law No. 72/2025/QH15 and Resolution No. 260/2025/QH15 (hereinafter referred to as Resolution No. 98/2023/QH15), ceases to be effective from April 01, 2027, except the provisions in Clause 9, Article 5 and Clause 7, Article 6 of Resolution No. 98/2023/QH15, which cease to be effective from January 01, 2031, and except cases subject to transitional implementation under Clause 4, Article 64 of this Law.

5. The provisions at Point q, Clause 1 and Clause 10, Article 12 of the National Assembly’s Resolution No. 136/2024/QH15 dated June 26, 2024, on organisation of urban administration and experimentation of a number of special mechanisms and policies for development of Da Nang city, as amended and supplemented by Law No. 71/2025/QH15, Law No. 72/2025/QH15 and Resolution No. 259/2025/QH15, cease to be effective from the effective date of this Law.

6. The Government shall prescribe:

a) The order and procedures for recognition, extension, temporary suspension and suspension of application of the customs priority regime specified in this Law;

b) Conditions for customs inspection and supervision applicable to non-tariff zones; the order and procedures for customs procedures, inspection and supervision applicable to goods entering and leaving non-tariff zones specified in this Law;

c) Special customs regimes and procedures and specialised management in open port zones.

7. On the basis of the principles, mechanisms and policies, supervision, inspection, examination and accountability specified in this Law, the Government shall prescribe:

a) The establishment, mechanisms, policies and management models of free trade zones, integrated logistics zones and non-tariff zones in provinces and cities to which the provisions of this Law have not yet been applied;

b) Investment in, construction of, and development of sea reclamation urban areas specified in Article 19 of this Law and the application thereof to provinces and cities to which the provisions of this Law have not yet been applied;

Article 64. Transitional provisions on mechanisms and policies applicable to Ho Chi Minh City

1. Programs, projects, schemes, tasks, planning, plans, financial mechanisms, management mechanisms, autonomy mechanisms and off-budget state financial funds that were approved and are under implementation before the effective date of this Law may continue to be implemented under the issued decisions; where they conform with this Law, they may be transferred to implementation under the mechanisms and competence prescribed by this Law without re-approval.

2. Pilot mechanisms, experimentation, regulatory sandboxes and new governance models under implementation before the effective date of this Law may continue to be implemented under the approved plans; the City People’s Council and City People’s Committee may adjust the contents, scope and duration of such pilot mechanisms, experimentation and regulatory sandboxes to conform with this Law without having to repeat the approval process.

3. Matters regarding organisation of administration, organisational apparatus, civil service regimes and job positions implemented before the effective date of this Law may continue to be implemented until the City People’s Council and City People’s Committee promulgate new regulations according to the competence prescribed by this Law.

4. Mechanisms, policies, tasks, activities and projects under implementation pursuant to Resolution No. 98/2023/QH15 shall continue to be implemented in accordance with that Resolution, except where the City People’s Committee decides to apply this Law.

For areas adjacent to traffic nodes along Ring Road No. 3 identified for development under the TOD model pursuant to Resolution No. 98/2023/QH15, the City People’s Council shall exercise the competence specified at Point b, Clause 1, Article 13 of this Law, and the Chairperson of the City People’s Committee shall exercise the competence specified at Point b, Clause 3, Article 13 of this Law.

5. During the effective period of the National Assembly’s Resolution No. 188/2025/QH15 dated February 19, 2025, on experimentation of a number of special and exceptional mechanisms and policies for development of the urban railway network in Hanoi city and Ho Chi Minh City, the City People’s Council shall continue to exercise the competence to decide on adjusting, and adding to the Appendix promulgated together with Resolution No. 188/2025/QH15, new railway projects located in the City according to the City’s development needs and report implementation results to the Government.

6. Dossiers for settlement of administrative procedures that have been received by competent agencies but have not been completely settled by the effective date of this Law shall continue to be processed in accordance with the law applicable at the time of receipt of such dossiers.

7. Projects and bidding packages decided or approved by competent agencies of the City under the laws on public investment, investment, public-private partnership investment, housing and bidding that have not been completed before the effective date of this Law shall continue to be governed by the law applicable at the time of decision or approval, except where the City People’s Committee decides to apply this Law.

8. Selection of strategic investors for projects that has been carried out or is under implementation pursuant to resolutions of the National Assembly on special mechanisms and policies applicable to the City shall continue to be implemented in accordance with such resolutions and documents implementing such resolutions, except where the City People’s Committee decides to apply this Law.

Article 65. Transitional provisions on mechanisms and policies applicable to cities that are not special-grade urban centers

Resolutions of the National Assembly on special mechanisms and policies applicable to cities specified in Clause 3, Article 1 of this Law shall continue to remain wholly or partially effective until the Government’s decrees promulgated under Clauses 5 and 6, Article 1 and Clause 7, Article 63 of this Law take effect.

Article 66. Transitional provisions on mechanisms and policies applicable to special economic zones

1. Urban and rural planning approved by competent agencies before a commune-level administrative unit is recognised as a special economic zone may continue to be implemented until the general planning of the special economic zone is approved under this Law. After the general planning of the special economic zone is approved, the People’s Committee in the special economic zone shall decide which detailed planning already approved by competent agencies may continue to be implemented.

2. Investment projects for which investment policy has been approved or investment registration certificates have been granted by competent state agencies before a commune-level administrative unit is recognised as a special economic zone shall continue to be entitled to incentives prescribed in the issued documents; where the incentives prescribed in this Law are more favourable, the incentives under this Law may be applied for the remaining period of the project as decided by the Chairperson of the People’s Committee in the special economic zone.

3. Dossiers for settlement of administrative procedures that have been received by competent agencies but have not been completely settled by the date on which a commune-level administrative unit is recognised as a special economic zone shall continue to be processed in accordance with the law applicable at the time of receipt of such dossiers.

4. Transitional arrangements regarding organisation of administration, organisational apparatus, civil service regimes and job positions at commune-level administrative units shall be decided by the Government upon recognition of a special economic zone.

5. The Chairperson of the People’s Committee in a special economic zone shall decide on specific land prices and assign consultancy organisations to determine land prices by simplified contractor appointment in cases where decisions on land allocation, land lease, permission for change of land use purpose, extension of land use term, adjustment of land allocation decisions, adjustment of land lease decisions or adjustment of detailed planning have already been issued and specific land prices are required to be re-determined, but no land valuation organisation has been selected by the date on which the commune-level administrative unit is recognised as a special economic zone.

This Law was passed on August 24, 2026, by the 16th National Assembly of the Socialist Republic of Vietnam at its First Extraordinary Session.

President of the National Assembly

TRAN THANH MAN