Vietnam's National Assembly approves landmark urban development policies for Ho Chi Minh City and special cities

Vietnam's National Assembly has passed a groundbreaking Urban Development Law designed to accelerate the growth of Ho Chi Minh City and other special urban areas. The legislation, approved with a majority vote on August 24, introduces new mechanisms and policies to facilitate development.

Effective from October 1, 2026, the law empowers Ho Chi Minh City and other designated special cities to pilot new policies and mechanisms that may differ from existing laws or address areas not yet covered by legislation. A specific provision regarding the process for issuing regulatory documents under these new mechanisms for Ho Chi Minh City will take effect earlier, on September 1, 2026.

The scope of these pilot policies includes new models for governmental organization, economic models centered on science, technology, and innovation, and solutions for critical issues impacting residents' quality of life and the cities' socio-economic development. If a proposed pilot policy affects a wider urban area, the city's People's Committee must assess its socio-economic impact on the region and nation, and consult with relevant provincial People's Committees before seeking approval.

The law also dedicates a chapter to the development of special economic zones, outlining criteria for their designation, such as strategic location, presence of an international airport or Class I seaport, and significant population and natural area size. The government will recognize these zones upon approval from competent authorities. Furthermore, the law sets clear guidelines for the development of land reclamation urban areas, emphasizing modern, green, and smart construction that efficiently uses marine resources and land, conserves energy, and ensures infrastructure resilience.