Resolution No. 54/2017/QH14 dated November 24, 2017 of the National Assembly on pilot implementation of special mechanisms and policies for development of Ho Chi Minh City

RESOLUTION

On pilot implementation of special mechanisms and policies for development of Ho Chi Minh City[1]

THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to Law No. 57/2014/QH13 on Organization of the National Assembly;

Pursuant to Law No. 76/2015/QH13 on Organization of the Government;

Pursuant to Law No. 77/2015/QH13 on Organization of Local Administration;

Pursuant to Law No. 80/2015/QH13 on Promulgation of Legal Documents;

RESOLVES:

Article 1.Scope of regulation

This Resolution prescribes the pilot implementation of special mechanisms and policies for Ho Chi Minh City (below referred to as the City) regarding land administration and investment and finance-state budget management; the mechanism of authorization among administrations at different levels, and incomes of cadres, civil servants and public employees under the City’s management.

Article 2.Subjects of application

1. State agencies, political organizations and socio-political organizations.

2. Socio-political-professional organizations, social organizations and socio-professional organizations.

3. Other related organizations and individuals.

Article 3.Land administration

1. The City’s People’s Council may decide on the change of the use purpose of rice cultivation land of 10 hectares or more in conformity with the approved master plan and plan on the use of rice cultivation land.

2. The change of the use purpose of rice cultivation land prescribed in Clause 1 of this Article shall be decided in a public manner and consulted with people and stakeholders to be affected by the change in accordance with the land law.

3. The order and procedures for the change of the use purpose of rice cultivation land of 10 hectares or more prescribed in this Article are the same as those for the change of the use purpose of rice cultivation land of under 10 hectares prescribed in the land law.

Article 4.Investment management

1. The City’s People’s Council may decide on investment policy for group-A projects using the City’s budget funds in accordance with the Law on Public Investment, except the projects specified at Points a, b, c and d, Clause 1, Article 8 of Law No. 49/2014/QH13 on Public Investment.

2. The order and procedures for deciding on investment policy for group-A projects using the City’s budget funds referred to in Clause 1 of this Article are prescribed below:

a/ The formulation, appraisal and adjustment of pre-feasibility study reports must comply with Points a, b and c, Clause 2, Article 23 of Law No. 49/2014/QH13 on Public Investment;

b/ The City’s People’s Committee shall submit to its People’s Council for decision the investment policy in accordance with Point b, Clause 2, Article 29 of Law No. 49/2014/QH13 on Public Investment.

Article 5.Finance-state budget management

1. The City’s People’s Council shall propose the Government to consider and submit to the National Assembly Standing Committee for decision the pilot increase of tax levels or rates for a number of commodities liable to excise tax and environmental protection tax applicable in the City. Such increase must not exceed 25% of the current tax levels or rates.

2. The City’s People’s Council may decide to apply in the City:

a/ Charges and fees not yet specified in the List of charges and fees promulgated together with the Law on Charges and Fees;

b/ The increase of the approved levels or rates of the charges and fees specified in the List of charges and fees promulgated together with the Law on Charges and Fees.

3. The pilot implementation of the policy on collection of state budget revenues in the City prescribed in Clauses 1 and 2 of this Article must adhere to the following principles:

a/ Following a roadmap suitable to the City’s development level and requirements; and creating a favorable environment for production and business, especially for small- and medium-sized enterprises and sectors and trades eligible for investment incentives;

b/ Ensuring the market uniformity without impeding the circulation of goods and services; and rationally regulating a number of goods and services and lawful incomes of organizations and individuals in the City;

c/ Ensuring publicity, transparency, and state administrative reform, including administrative reform in tax administration.

4. The City’s budget may enjoy 100% of the amount increased as a result of the adjustment of the collection policy prescribed in Clauses 1 and 2 of this Article for investment in socio-economic infrastructure facilities that fall under the City’s spending tasks and such amount will be excluded upon determination of the percentage (%) of revenues divided between the central budget and the City’s budget.

5. Based on the annual state budget estimate decided by the National Assembly and allocated by the Prime Minister and on the City’s practical conditions, the City’s People’s Council shall decide on the City’s budget fund estimate and its distribution in conformity with the orientations for budget restructuring, socio-economic development and development of important sectors under regulations of the National Assembly and Government.

6. The City may implement the mechanism of creating funding sources for salary reform under regulations. Once the City’s budget is sufficient for salary reform and implementation of social security policies for the whole period of budget stabilization under regulations of competent authorities, the City’s People’s Council may:

a/ Decide on the use of the surplus of the City’s budget fund allocated for salary reform; permit the subordinate budgets to use the surplus of the fund allocated for salary reform for investment in socio-economic infrastructure facilities that fall under their spending tasks and for payment of additional incomes in pursuance to Clauses 3 and 5, Article 6 of this Resolution;

b/ Decide on appropriate rates of revenues to be retained to create funding sources for salary reform for agencies and units under the City’s management that generate large revenues on the principle that such agencies and units are allowed to arrange by themselves funding sources for salary reform according to the roadmap decided by a competent agency, and no additional state budget funds shall not be allocated to these agencies and units for salary reform;

c/ Allow state administrative agencies, political organizations, socio-political organizations and public non-business units under the City’s management to use the surplus of their funds allocated for salary reform to increase expenditures on their investment, procurement and professional activities and pay additional incomes in pursuance to Clauses 3 and 5, Article 6 of this Resolution.

7. The City may raise loans through issuing local administration bonds, and take loans from financial institutions and other organizations at home and the Government’s foreign loans on-lent to the City with the total outstanding debs not exceeding 90% of the revenues belonging to the City’s budget as decentralized. The National Assembly shall decide on the annual total loans and the budget deficit of the City in accordance with the Law on the State Budget.

8. Annually, the Government shall submit to the National Assembly Standing Committee for decision the targeted transfer from the central budget to the City’s budget which is equivalent to 70% of the central budget’s increased amount from the revenues divided between the central budget and the City’s budget over the budget estimate allocated by the Prime Minister (the remainder after granting rewards for revenue increases under Clause 4, Article 59 of Law No. 83/2015/QH13 on the State Budget) and the increased amount from the revenues wholly belonging to the central budget prescribed at Points b, c, d, g, h, i and q, Clause 1, Article 35 of Law No. 83/2015/QH13 on the State Budget over the budget estimate allocated by the Prime Minister; the targeted transfer must not exceed the increased revenue of the central budget in the City over the previous year’s revenue.

9. The City’s budget may enjoy 50% of the revenue from land use levy upon sale of public property attached to land in accordance with the Law on Management and Use of Public Property (after subtracting expenses for relocation and construction of physical foundations at the new locations) under the management of agencies, organizations and units of central agencies located in the City (except agencies and units in the national defense and security sectors) for investment in socio-economic infrastructure facilities that fall under the City’s public investment tasks.

10. The City’s budget may enjoy the revenue from the equitization of, and withdrawal of state capital from, state enterprises managed by the City’s People’s Committee and the revenue from the withdrawal of state capital from economic institutions with the City’s People’s Committee acting as the owner’s representative.

The City may use these revenues and its budget to invest in the development of socio-economic infrastructure, including anti-inundation projects of the City; the central budget will not additionally allocate VND 10 trillion to the City’s budget for implementation of these projects as projected in the 2016-2020 medium-term public investment plan.

The City’s budget shall treat as its loan the whole increased amount (if any) over the approved total investment amounts of projects invested with foreign funds.

11. For important infrastructure investment projects in the City under the approved medium-term public investment plan that fall under the central budget’s spending tasks, the City is allowed to use its budget and other lawful financial sources, borrow loans within the limit specified in Clause 7 of this Article, or raise funds in the form of public-private partnership to complete these projects soon. The central budget shall refund to the City the central budget-covered expenditures under the estimate approved by a competent authority, exclusive of interest, under the current or subsequent medium-term public investment plan.

Article 6.Authorization mechanism and incomes of cadres, civil servants and public employees under the City’s management

1. The Chairperson of the City’s People’s Committee may authorize chairpersons of district-level People’s Committees to perform and exercise a number of his/her tasks and powers.

2. The City’s People’s Committee shall specify the tasks and powers which chairpersons of district-level People’s Committees may authorize, within the ambit of their tasks and powers, to chairpersons of commune-level People’s Committees; and chairpersons of district-level People’s Committees may not further authorize the tasks and powers already authorized by the Chairperson of the City’s People’s Committee under Clause 1 of this Article.

3. The City’s People’s Council may decide to arrange the City’s budget funds to increase the average incomes of cadres, civil servants and public employees in the state sector, political organizations, socio-political organizations and public non-business units under the City’s management, depending on their performance, in addition to paying additional incomes under current regulations on the financial autonomy mechanism applicable to administrative agencies and public non-business units, which must not exceed 1.8 times the rank-, grade- or position-based salary levels. The City’s People’s Council shall prescribe the levels of incomes for experts, scientists and persons with special talents of the City.

4. The City’s People’s Council may adjust the names, functions and tasks of the divisions of its specialized agencies as suitable to the City’s characteristics.

5. The implementation of Clauses 3 and 4 of this Article shall be associated with the re-arrangement of the organizational apparatus, payroll downsizing and salary reform in accordance with the Party’s and State’s policies.

Article 7.Application of laws

1. The land administration, investment and finance-state budget management, mechanism of authorization among administrations at different levels, and incomes of cadres, civil servants and public employees under the City’s management must comply with this Resolution, or comply with current regulations if this Resolution has no relevant provisions.

2. If there are different provisions on the same issue between this Resolution and laws or other resolutions of the National Assembly, this Resolution shall apply. If other legal documents provide mechanisms and policies which are more preferential than those prescribed in this Resolution, the City’s People’s Council shall decide on their application.

3. Issues relating to the mechanisms and policies prescribed in this Resolution which are awaiting competent authorities’ consideration and decision must continue to comply with the current order and procedures prescribed by law.

Article 8.Implementation provisions

1. This Resolution takes effect on January 15, 2018.

The Government shall conduct a preliminary review of the implementation of this Resolution after 3 years and report on implementation results to the National Assembly at its session held in late 2020, and conduct a final review of the implementation of this Resolution and report on implementation results to the National Assembly at its session held in late 2022 and propose amendments to the legal system regulating the mechanisms and policies already implemented on a pilot basis.

2. The Government shall:

a/ Organize the implementation of this Resolution; and direct related agencies to coordinate with the City in reforming procedures and shortening the time for handling issues not yet decentralized to the City;

b/ Study and improve the mechanism of budget management decentralization; decentralize sources of revenues and spending tasks; develop principles, criteria and norms for budget allocation to meet requirements of fast and sustainable socio-economic developments; implement rational revenue mobilization policies; ensure the key role of the central budget; restructure the state budget and enhance public debt management to ensure a secure and sustainable national financial system; and determine rational rates for regulating divided budget revenues to help the City have resources for its fast and sustainable development under the Party’s and State’s orientations;

c/ Direct the City to review the implementation of this Resolution and report on implementation results to the National Assembly;

d/ To formulate and submit to the National Assembly for promulgation the Law on Property Tax for uniform application nationwide.

3. Within the ambit of their tasks and powers, the City’s People’s Council and People’s Committee shall:

a/ Organize the implementation of this Resolution and relevant regulations;

b/ Examine and supervise the performance of the tasks and powers they have authorized under Clause 1, Article 6 of this Resolution and the implementation of regulations on the tasks and powers allowed to be authorized under Clause 2, Article 6 of this Resolution;

c/ Review the pilot implementation of the mechanisms and policies prescribed in this Resolution and report on implementation results to the Government for reporting to the National Assembly for consideration and decision in accordance with Clause 1 of this Article.

4. The National Assembly and its Standing Committee, Ethnic Council and Committees and the City’s National Assembly deputies’ delegation and National Assembly deputies shall oversee the implementation of this Resolution.

This Resolution was adopted on November 24, 2017, by the XIV^thNational Assembly of the Socialist Republic of Vietnam at its 4^thsession.-

Chairwoman of the National Assembly
NGUYEN THI KIM NGAN