Vietnamese lawmakers call for transparent decentralization in draft Urban Development Law

The discussion, chaired by NA vice-chairman Nguyen Khac Dinh, was part of the first extraordinary session of the country’s 16th NA, which is taking place in Hanoi from August 3 to 24.

Lawmakers broadly agreed on the need for the law, describing it as an urgent step to institutionalize Politburo Resolution 09 on the development of Ho Chi Minh City in a new era, as well as Party resolutions and policies on urban development.

From management to development-oriented governance

Lawmaker Trinh Xuan An of Dong Nai City in southern Vietnam said the law should move beyond codifying special mechanisms for Ho Chi Minh City, instead creating a broader institutional framework for urban governance.

He insisted on shifting from management to development, with strong, stable, and transparent decentralization.

He proposed tiered application of policies based on each city’s scale and governance capacity, so localities would not need separate approvals for special mechanisms.

An also called for explicit provisions for Dong Nai, which has been granted special policies similar to Ho Chi Minh City in areas such as investment, finance, land, planning, science-technology, innovation, and human resources.

Safeguards for stalled projects

Lawmaker Nguyen Ngoc Son from the northern port city of Hai Phong highlighted stalled projects as a major untapped resource.

He supported including mechanisms to restart them but urged two additional safeguards.

First, before allowing a stalled project to resume, authorities should fully review land-related financial obligations and any new obligations arising from adjustments or continuation of the project.

This would prevent losses to the state while ensuring that obligations already legally fulfilled are not imposed again.

A mechanism intended to unlock resources, he said, must not become a way to legitimize benefits arising from prolonged project delays.

Second, projects involving large or complex amounts of land, public assets or financial obligations should undergo interagency appraisal before a decision is made.

He also questioned the draft’s 10-year timeline for resolving backlogs, warning it could reduce urgency.

Regarding the selection of strategic investors, Son criticized the draft’s short seven-day window for secondary bidders to submit proposals for projects worth between VND800 billion (US$30.6 million) and VND75 trillion ($2.9 billion).

He argued this undermines genuine competition and transparency.

He recommended publishing project lists and evaluation criteria on the national bidding system in advance and extending preparation time to at least 45 days for major projects.