Parliament okays special mechanisms for HCMC, Hanoi

The National Assembly on Thursday approved a series of special mechanisms and policies aimed at speeding up the development of southern economic hub Ho Chi Minh City and the capital city of Hanoi.

With 433 out of 438 lawmakers voting in favor, the legislative body passed a resolution amending and supplementing some articles of Resolution 98/2023 on piloting special mechanisms and policies for HCMC’s development.

One of the key contents is the list of priority sectors and policies to attract strategic investors.

The new resolution adds 11 groups of priority projects, including a project to develop an integrated entertainment-resort complex featuring accommodation facilities of at least five stars, luxury resort services, shopping, and recreational facilities along the Saigon River, Dong Nai River, and coastal corridors, with investment capital of at least VND30 trillion ($1,14 billion).

Another is a project to build a cluster of specialized medical facilities, a sports complex, a cultural park, or a themed park worth at least VND6 trillion ($227.82 million).

Other projects are the renovation and relocation of houses on or along rivers, canals, and waterways, with investment capital of at least VND6 trillion; the construction of the city’s central square and administrative center; the investment in public green parks, public parking facilities, and clean-energy infrastructure worth at least VND2 trillion ($75.93 million); and the development of a waste-to-energy plant project at the cost of at least VND2 trillion.

Also in the list are the construction of technical infrastructure and drainage systems costing at least VND3 trillion ($113.9 million); the treatment and redevelopment of closed landfill sites for socio-economic purposes worth at least VND10 trillion ($379.65 million); and the development of key urban zones under the city’s master plans, costing VND50 trillion ($1.9 billion) or more.

The project on investment attraction to Con Dao will focus on airport expansion (at least VND10 trillion), conservation and development of national heritage sites (at least VND800 billion or $30.37 million), passenger and cargo port construction (at least VND2 trillion), and transport-commercial infrastructure (at least VND3 trillion).

Con Dao is an archipelago consisting of 16 pristine islands. It belongs to the former Ba Ria-Vung Tau province, now part of HCMC after their merger in July. French colonialists and the Americans turned the island into a prison to jail Vietnamese revolutionary soldiers in wartime.

Meanwhile, a project on developing infrastructure in the HCMC Free Trade Zone will build port facilities (at least VND75 trillion or $2.85 billion), a logistics center (at least VND25 trillion or $949.3 million), and an industrial-urban-service functional zone (at least VND20 trillion).

Under the resolution, strategic investors must demonstrate funding capacity and satisfy equity requirements, including at least 20% equity for projects under VND30 trillion ($1.14 billion) and at least 15% equity for projects of VND30 trillion or more.

If multiple investors participate in one project, total equity must meet the above thresholds, with at least one investor contributing at least 30% and the rest at least 15%.

The resolution introduces a major breakthrough for the southern hub by allowing the establishment of the HCMC Free Trade Zone. It will pilot breakthrough mechanisms to attract investment, finance, trade, services, and high-quality human resources, while promoting exports, industry, and R&D activities.

On the same day, with 431 out of 435 votes in favor, the parliament greenlighted a resolution piloting exceptional mechanisms to accelerate major and strategic projects in Hanoi.

Accordingly, the city People’s Council is eligible to grant in-principle approvals to public investment and public-private partnership (PPP) projects that do not use central budget funds.

The chairperson of the Hanoi People’s Committee is allowed to issue in-principle approvals to projects that attract strategic investors with capital from VND30 trillion ($1.14 billion) upward, as defined in the Capital Law, and urgent public/PPP/business projects that need to be immediately implemented under the directions of the central and municipal Party authorities.

However, certain projects remain outside the chairperson’s authority, including nuclear power projects; foreign-invested projects in telecom services with network infrastructure, afforestation, publishing, and journalism; projects involving casinos, betting, and gaming for foreigners; projects with potentially severe environmental impacts requiring National Assembly or Prime Minister approval; and confidential national defense-security projects.

The resolution also allows special contractor-selection procedures for certain public investment and PPP projects. The municipal People’s Council will define detailed conditions, criteria, documentation, and processes.

Both resolutions are set to take effect on December 12, 2025, and will remain in force for five years.