Resolution 188/2025/QH15 policies to develop the urban railway networks in Hanoi city and Ho Chi Minh City

RESOLUTION

On pilot implementation of a number of particular, special mechanisms and policies to develop the urban railway networks in Hanoi city and Ho Chi Minh City^[1]

THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to Law No. 80/2015/QH13 on Promulgation of Legal Documents, which has a number of articles amended and supplemented under Law No. 63/2020/QH14;

RESOLVES:

Article 1. Scope of regulation

This Resolution provides the pilot implementation of a number of particular, special mechanisms and policies to develop the urban railway networks in Hanoi city and Ho Chi Minh City (below referred to as the Cities).

Article 2. Subjects of application

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

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

3. Related domestic and foreign organizations and individuals.

Article 3. Interpretation of terms

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

1. Transit-oriented development (TOD) means solutions for planning and investing in urban renovation, embellishment and development, taking the urban railway transport connection points as points of concentration of residents, commercial services, and offices within walking distances to public transport in order to improve the efficiency of land use and public facilities, and public health, reduce personal motor vehicles, and reduce emissions causing environmental pollution, combined with preserving and promoting cultural values.

2. TOD area planning means a specialized planning developed in the direction of prioritizing travel by public transport for an area encompassing the urban railway station or depot and its surrounding area to build an urban railway line combined with investment in urban renovation, embellishment and development.

3. TOD model-based urban railway project means a project combining urban railway investment with urban development investment in a TOD area.

Article 4. Mobilization and arrangement of investment capital

1. During the investment preparation and implementation of projects on the list of planned projects provided in the Appendix to this Resolution, the Prime Minister may decide on the following contents:

a/ Based on the budget-balancing capacity, incorporating in the medium-term and annual public investment plans the target transfers from the central budget for the local budgets, not exceeding VND 215,350 billion (two hundred and fifteen thousand, three hundred and fifty billion) for Hanoi city and not exceeding VND 209,500 billion (two hundred and nine thousand, five hundred billion) for Ho Chi Minh City, in the medium-term public investment plan periods of 2026-2030 and 2031-2035 as a basis for deciding on investment in and implementing projects.

The capital allocation mentioned at this Point may use the central budget’s annual increased revenues and expenditure savings (if any) and other lawful capital sources; in case of using the central budget’s annual increased revenues and expenditure savings, it is not necessary to follow the order of priority provided by the law on the state budget;

b/ Mobilizing official development assistance (ODA) capital and foreign concessional loans to implement projects without having to prepare project proposals using ODA capital and foreign concessional loans as specified by relevant laws; applying the regulations of foreign donors in case Vietnam’s law has no provisions or has provisions that are different from the regulations of foreign donors.

2. The People’s Councils of the Cities shall balance and arrange local budget capital in the medium-term and annual public investment plans as the basis for deciding on investment in and implementing projects on the list of planned projects provided in the Appendix to this Resolution, from the following sources:

a/ Local budgets in the medium-term and annual periods, including foreign loans on-lent by the Government and municipal bond capital;

b/ Annual increased revenues and expenditure savings (if any), without having to follow the order of priority provided by the law on the state budget;

c/ Other lawful capital sources.

3. Projects on the list of planned projects provided in the Appendix to this Resolution shall be allocated capital during the medium-term public investment plan periods. The capital level allocated for each medium-term public investment plan period must suit the implementation progress of each project and no limits shall be imposed on the projects’ capital amounts carried forward to the subsequent medium-term public investment plan period.

4. The People’s Committees of the Cities may decide on the allocation of capital from the local budgets in the medium-term and annual public investment plans before the investment decisions are made to carry out the following activities to serve the urban railway projects and TOD model-based urban railway projects:

a/ Spending tasks of the project owners and project management units; training for human resources of state agencies, project management units, operating units, training institutions, and research institutions;

b/ Payment for consulting services;

c/ Payment for planning activities related to route plans and locations of facilities on the urban railway lines, as well as TOD area planning;

d/ Compensation, support, and resettlement work;

dd/ Communication work and other tasks serving project investment preparation.

5. To implement urban railway projects and TOD model-based urban railway projects, the People’s Committees of the Cities may decide to:

a/ Use the local budgets/ annual contingency;

b/ Advance the following year’s local budget estimates with the amount not exceeding 50% of the capital construction investment expenditure estimates for the implementation year of the capital construction works under the approved medium-term public investment plan of the local budget.

Article 5. Order and procedures for investing in urban railway projects and TOD model-based urban railway projects

1. For urban railway projects and TOD model-based urban railway projects, it is allowed to immediately carry out the preparation and appraisal of, and decision on, project investment without having to carry out the procedures for investment policy preparation, appraisal and decision and other procedures related to the investment policy decision according to the relevant laws.

2. The People’s Committees of the Cities have the competence to:

a/ Organize the investment preparation, appraisal and decision and decision on adjustment of urban railway projects and TOD model-based urban railway projects according to the order and procedures applicable to locally-managed group-A projects according to the relevant laws;

b/ Decide on the division of urban railway projects and TOD model-based urban railway projects into component projects and sub-projects when deciding on investment. The division is not required to comply with the law on construction;

c/ Decide to extend the implementation period of urban railway projects and TOD model-based urban railway projects. In case the extension does not increase the total investment, it is not necessary to carry out the project adjustment procedures;

d/ Decide on urban railway facilities (stations, intersections, bridges, related construction items of urban railway projects) for which competitions for architectural plans are not required;

dd/ Decide on the application of forms of contractor appointment for the selection of consulting, non-consulting and construction contractors; EPC contractors, turnkey contractors; investors of urban railway projects and TOD model-based urban railway projects; the order and procedures must comply with the bidding law;

e/ Separate the work of compensation, support and resettlement into an independent project based on the route plans and locations for facilities on the urban railway line approved by competent authorities or on the TOD area planning approved by competent authorities. The preparation, appraisal and decision on investment in the compensation, support and resettlement project must comply with the law on public investment.

3. For urban railway projects and urban railway facilities under TOD model-based urban railway projects, it is allowed to make a front-end engineering design (FEED) in place of the basic design in the feasibility study report; the selection of EPC contractors shall be carried out on the basis of the approved investment project; the project owner may decide to approve design steps following the FEED.

4. The preparation of total investments and bid package cost estimates is as follows:

a/ For work items that already exist but are neither suitable to nor included in the system of norms and unit prices for construction, operation and maintenance of facilities issued by competent authorities, urban railway projects, urban railway facilities of TOD model-based urban railway projects, the system of norms and unit prices for construction, operation and maintenance announced by international organizations or those used for similar urban railway projects in the world may be applied and converted to the time of calculation;

b/ For items whose costs cannot be determined under Point a of this Clause, their costs shall be determined according to investment rates of similar urban railway projects in the world and converted to the time of calculation;

c/ For cost items not specified by Vietnam’s law or those specified by Vietnam’s law but unsuitable for urban railway projects with similar nature and implementation conditions, the cost items for urban railway projects with similar nature and implementation conditions in the world may be applied.

5. The Vietnam Electricity shall organize the relocation of power facilities with a voltage of 110KV or higher to facilitate land recovery, compensation, support and resettlement.

Article 6. TOD model-based urban development

1. The preparation, appraisal, approval and adjustment of route plans and locations for facilities on urban railway lines, and of TOD area planning are as follows:

a/ The People’s Committees of the Cities shall organize the preparation, appraisal, approval and adjustment of the route plans and locations for facilities on urban railway lines, and of TOD area planning to determine the location, boundaries and area of ​​recovered land. In the TOD area, the People’s Committees of the Cities may decide on economic-technical norms and planned land use norms different from those specified in the national technical regulations on urban and rural planning but must meet the requirements on technical infrastructure and social infrastructure systems; and may adjust the land-use function in the TOD area to exploit land areas and added value from land, develop urban railway lines, and develop urban areas in the TOD area;

b/ When preparing, appraising, approving and adjusting the route plans and locations for facilities on the urban railway line, and the TOD area planning, the People’s Committees of the Cities may decide on contents different from urban and rural master plans, land-use master plans and land use plans approved by competent authorities without having to carry out procedures to adjust land use plans and related master plans. After the route plans and locations for facilities on the urban railway line, and the TOD area planning are approved, the land use plan and other related master plans shall be promptly reviewed, adjusted, updated and announced.

2. Based on the approved TOD area planning, the People’s Committees of the Cities may decide on the transfer of planned land use norms among projects and facilities in the TOD area.

3. The People’s Councils of the Cities shall detail this Article.

Article 7. Railway industry development, technology transfer and human resource training

1. The People’s Committees of the Cities may decide on the selection and application of technical regulations and standards for the Cities’ urban railway lines after reaching agreement with the Ministry of Construction without having to carry out approval procedures in accordance with relevant laws.

2. The development of science and technology and training of human resources for urban railway projects are as follows:

a/ Organizations and individuals assuming the prime responsibility for scientific and technological activities serving the projects may apply and enjoy the following policies:

a1/ They may decide to select the form of restricted bidding, contractor appointment or order placement to select contractors to provide services and goods;

a2/ Enterprises are entitled to incentives as hi-tech enterprises in accordance with the law on high technology during the period of performing scientific and technological tasks serving the projects;

a3/ Income of enterprises and income of individuals from performing scientific and technological tasks serving the projects are exempt from tax;

b/ Organizations and individuals participating in training and developing hi-tech human resources serving the projects are entitled to preferential policies according to the law on high technology.

3. Industrial development and technology transfer are as follows:

a/ The Government shall specify criteria for selecting organizations and state enterprises that are tasked, or Vietnamese organizations and enterprises that are allowed to place orders, provide railway industrial services and goods, perform research and application tasks, and acquire technology through transfer;

b/ The Prime Minister shall decide on the list of railway industrial services and goods that may be assigned to organizations and state enterprises or ordered from Vietnamese organizations and enterprises;

c/ General contractors and contractors shall prioritize the use of products, goods, and services that can be produced and provided domestically;

d/ For bidding packages put up for international bidding, the bidding documents must include commitments of general contractors and foreign contractors on technology transfer and human resource training for Vietnamese partners to master management, operation, use and maintenance, and gradually master technology.

Article 8. Policies on construction materials and waste disposal sites

1. The exploitation of group-IV minerals and minerals used as common construction materials belonging to group-III minerals as specified by the Law on Geology and Minerals (below collectively referred to as minerals used as common construction materials) to serve urban railway projects and urban railway facilities under TOD model-based urban railway projects is as follows:

a/ For licensed, operating mineral mines still in the exploitation periods or with expired exploitation periods, still with reserves but not yet closed according to mine closure procedures, provincial-level People’s Committees may decide to:

a1/ Adjust the reserves for exploitation, extend the exploitation period, increase capacity according to the needs of the projects without having to carry out the procedures for adjusting the provincial master plans; not to prepare an adjusted mineral exploitation investment project for carrying out the process and procedures for deciding or approving the investment policy; not to carry out the procedures for appraising and approving the results of appraising the environmental impact assessment report, granting environmental licenses and making environmental registration but to ensure satisfaction of requirements on occupational safety and environmental protection in exploitation;

a2/ Stop increasing the exploitation capacity after providing sufficient minerals for the projects;

b/ For mines included in the construction material survey dossiers for the projects but not yet granted an exploitation license:

b1/ Provincial-level People’s Committees may grant licenses to exploit minerals for use as common construction materials without having to auction the mining rights. For common construction material mines that have been included in the adjusted plan on mining rights auction, to remove them from the auction plan for the grant of exploitation licenses without having to auction the mining rights; the grant of exploitation licenses shall be carried out similarly to the grant of licenses to exploit group-IV minerals specified at Point a, Clause 2, Article 72, and at Points c and d, Clause 2, Article 73 of the Law on Geology and Minerals;

b2/ Provincial-level People’s Committees may decide to adjust and add these mines to the geological and mineral management plans in the provincial master plans without having to carry out the procedures for adjusting the provincial master plans;

b3/ Provincial-level People’s Committees may use the projects’ reserve funds to organize land recovery, compensation, support and resettlement for mine areas after they have been surveyed and assessed in terms of reserves and quality according to the requirements of the projects and other contents prescribed by the law on geology and minerals in order to allocate mines to organizations and individuals exploiting minerals for the projects;

b4/ Provincial-level People’s Committees shall manage and supervise the implementation process and perform management after the completion of the projects;

b5/ Organizations and individuals exploiting minerals for the projects shall pay taxes, fees and other financial obligations as specified by law;

b6/ Mineral exploitation and use shall be carried out until the project is completed and subject to management and supervision as specified by law;

c/ In case the mineral reserves at the mineral mines included in the construction material survey dossiers for urban railway projects and urban railway facilities under the TOD model-based urban railway projects have been fully exploited but still do not meet the demand for construction material supply for the projects, the project owners shall assume the prime responsibility for  organizing surveys and propose provincial-level People’s Committees to decide to add new mines to the construction material survey dossiers for the projects; the management, exploitation and use of minerals at the added mineral mines must comply with Point b of this Clause;

d/ Provincial-level People’s Committees shall, based on actual conditions, consider and guide organizations and individuals exploiting minerals for urban railway projects and urban railway facilities under TOD model-based urban railway projects to assess by themselves impacts on river beds, banks and terraces for riverbed sand and gravel mines located in river and stream sections at high risk of landslides, ensuring compliance with the regulations on management of riverbed sand and gravel and protection of river beds, banks and terraces; and inspect and control the use of minerals in accordance with law.

2. Regarding construction solid waste dumping sites and topsoil of dedicated wet rice-growing land to serve urban railway projects and urban railway facilities of TOD model-based urban railway projects, the People’s Committees of the Cities shall decide or propose relevant provincial People’s Committees to decide on:

a/ Land recovery, compensation, support and resettlement for construction solid waste dumping sites in project survey dossiers and hand over the sites to contractors for dumping the projects’ construction solid waste;

b/ Organizing the management of construction solid waste dumping sites of the projects in accordance with the laws on land and environmental protection and other relevant laws;

c/ Organizing the formulation of plans for the use of topsoil of dedicated wet rice-growing land recovered from projects. The formulation of plans for the use of topsoil of land areas dedicated to wet rice-growing recovered from projects must comply with the law on crop production.

Article 9. Provisions applicable exclusively to Ho Chi Minh City

1. In the TOD area, the Ho Chi Minh City People’s Committee may collect and use 100% of the following revenues to develop the urban railway system, public transport system, and technical infrastructure connecting to the mass transit system:

a/ Revenue from the increased floor area of ​​civil construction projects as a result of the increase in land use coefficient and other planning indicators of the TOD area;

b/ Revenue from the exploitation of added value from land in the TOD area;

c/ Infrastructure improvement charges.

2. The Ho Chi Minh City People’s Council shall provide in detail methods of determining the levels, competence, order and procedures for collecting the revenues specified in Clause 1 of this Article, ensuring that such revenues are not the same as other types of taxes and charges.

3. The Ho Chi Minh City People’s Committee may borrow money through the issuance of municipal bonds, loans from domestic financial institutions and other domestic organizations and foreign loans on-lent by the Government to the City, and other lawful forms of capital raising, with the total outstanding loan amount not exceeding 120% of the budget revenue that Ho Chi Minh City is entitled to receive according to decentralization. In case the outstanding loan amount exceeds the above rate of 120%, the National Assembly shall consider and increase the outstanding loan amount level to meet the City’s actual needs.

Every year, during the budget execution process, the Ho Chi Minh City People’s Council may proactively decide on specific domestic loan sources and foreign loans on-lent by the Government, ensuring that they are within the City’s total outstanding loan amount and budget deficit as decided by the National Assembly and assigned by the Prime Minister.

4. The Ho Chi Minh City People’s Committee shall organize the appraisal and approval of the appraisal reports of the environmental impact assessment reports; grant environmental licenses before urban railway projects and TOD model-based urban railway projects are put into trial operation (for projects subject to environmental licensing), or make environmental registration (for projects not subject to environmental licensing).

Article 10. Organization of implementation

1. During the recess of the National Assembly, the Government shall submit to the National Assembly Standing Committee for consideration and decision supplementations and adjustments to particular, special mechanisms and policies provided in Articles 4, 5, 6, 7, 8 and 9 of this Resolution.

2. The Government is responsible to the National Assembly for:

a/ Organizing the implementation and management of investment in the urban railway networks in the Cities in accordance with this Resolution and relevant legal provisions;

b/ Managing and using capital and resources economically and effectively, preventing and combating corruption, waste and negative practices; providing full information for the people to understand and reach consensus on the development of the urban railway networks in the Cities;

c/ Deciding to adjust the list of planned projects provided in the Appendix to this Resolution based on the proposals of the People’s Committees of the Cities;

d/ Stipulating the contents as assigned and guiding the implementation of a number of provisions of this Resolution according to its competence.

3. Regarding the selection of investors and contractors for EPC packages and consulting packages using foreign contractors, the Ministry of National Defense, the Ministry of Public Security, the Ministry of Construction, the Ministry of Finance, the Government Inspectorate of Vietnam, and the State Audit Office of Vietnam shall send representatives to join the appraisal teams when invited by competent agencies.

4. The State Audit Office of Vietnam shall audit the total investment dossiers that have been finalized according to the appraisal reports of the investment-deciding authorities as a basis for approving urban railway projects and urban railway facilities under TOD model-based urban railway projects and send the audit results to the investment-deciding authorities within 30 days from the date of receipt of the complete audit request dossiers.

5. The People’s Councils of the Cities shall:

a/ Provide in detail the contents as assigned in this Resolution;

b/ Supervise the implementation of this Resolution.

6. The People’s Committees of the Cities shall:

a/ Direct the implementation of this Resolution to ensure publicity, transparency, efficiency, feasibility and progress, avoiding policy abuse, loss and waste; and direct provincial-level departments, sectors and localities to organize implementation, ensuring coordination, consistency, and efficiency;

b/ Mobilize enterprises to invest in equipment; continue to restructure and build a complete, modern and efficient infrastructure management and maintenance model; and participate in the development of the railway industry;

c/ Strengthen the organization assigned to manage investment in urban railway projects and TOD model-based urban railway projects which must satisfy capacity and experience requirements in accordance with the construction law and relevant laws;

d/ Coordinate with provincial-level People’s Committees in organizing the implementation of Article 8 of this Resolution;

dd/ Review the implementation of this Resolution after 2 years of implementation.

7. The Standing Committee, the Ethnic Council and the Committees of the National Assembly, National Assembly deputies’ delegations, National Assembly deputies, provincial-level  People’s Councils, the Vietnam Fatherland Front and its member organizations shall, within the ambit of their tasks and powers, oversee the implementation of this Resolution.

Article 11. Implementation provisions

1. This Resolution takes effect on the date of adoption, except the case specified in Clause 2 of this Article, and shall be implemented until the completion of investment in projects on the list of planned projects provided in the Appendix to this Resolution.

2. The provisions of Clauses 3 and 4, Article 5; Article 6; Point a and Point b, Clause 3, Article 7; and Clause 2, Article 9, of this Resolution take effect on May 1, 2025.

3. For projects on the list of planned projects provided in the Appendix to this Resolution for which a competent authority has decided on the investment policy before the effective date of this Resolution, the People’s Committees of the Cities have the following competence and responsibility:

a/ They may decide on the application of the provisions of this Resolution to subsequent activities that have not been implemented yet without having to re-approve the project investment policy;

b/ They shall adjust the investment decision without having to carry out the procedures for adjusting the investment policy in case of project adjustment.

4. The development of the urban railway network system in Hanoi city according to the list of planned projects provided in the Appendix to this Resolution must comply with the provisions of this Resolution instead of the provisions in Clauses 2 and 3, Article 31; Point a, Clause 2; and Clause 3, Article 37, of the Law on the Capital.

5. In case this Resolution and other laws or resolutions of the National Assembly contain different provisions regarding the same matter, the provisions of this Resolution shall prevail, except the case specified in Clause 6 of this Article.

6. In case a law or resolution of the National Assembly promulgated after the effective date of this Resolution provides more preferential or favorable mechanisms and policies than those in this Resolution, the application shall be decided by the People’s Committees of the Cities.

This Resolution was adopted on February 19, 2025, by the 15^th National Assembly of the Socialist Republic of Vietnam at its 9^th extraordinary session.-

Chairman of the National Assembly
TRAN THANH MAN

APPENDIX

LIST OF PLANNED PROJECTS FOR URBAN RAILWAY NETWORKS IN HANOI CITY AND HO CHI MINH CITY

(To the National Assembly’s Resolution No. 188/2025/QH15 of February 19, 2025)