With the expansion of special mechanisms under the amended Resolution 98, HCMC is set to gain new growth drivers to attract investment and accelerate the rollout of major infrastructure projects as it enters the next phase of its development

On December 11, the National Assembly passed a resolution amending and supplementing several provisions of Resolution 98/2023, which establishes special mechanisms and policies to develop HCMC. Experts say the revised resolution gives the city fresh momentum for faster growth. The changes introduce more advanced policy tools and a more flexible institutional framework, granting HCMC greater autonomy in investment decisions, urban planning, and the development of new growth models. Transit-oriented development (TOD) model Under the resolution, the city will be allowed to retain all revenues generated from land use in transit-oriented development (TOD) areas, with the proceeds reinvested primarily in urban rail projects and transport infrastructure along TOD corridors. The mechanism will also apply to areas surrounding railway stations, train depots, and maintenance facilities, as well as adjacent zones around transport interchanges along the Beltway No. 3 corridor. Moreover, the city will be permitted to use its local budget to implement separate investment projects for compensation, support and resettlement in transport, urban renewal and urban development schemes. Once approved, the city’s master plan will serve as the legal basis for implementing detailed urban and rural planning. Construction within TOD areas must meet requirements on technical infrastructure, social infrastructure and environmental safety for residential communities. In addition to the amended Resolution 98, the city is implementing the National Assembly’s Resolution 188, which pilots special and exceptional mechanisms and policies for the development of the urban railway network. Implementation of the amended resolution must be coordinated under a unified policy framework and in line with relevant laws. The Government will also consider adjusting and expanding rail links connecting HCMC with Long Thanh International Airport under Resolution 188. Free trade zone (FTZ) HCMC’s free trade zone will be established with special mechanisms and pilot policies to attract investment in finance, trade, services, and high-quality human capital. Key components will include production zones, port and port logistics areas, logistics hubs, and commercial service districts. The free trade zone will be closely linked to Cat Lai Port and the Cai Mep Ha seaport complex. The FTZ is expected to help position HCMC as an international trade hub, enhance competitiveness, attract high-quality foreign direct investment and support the development of integrated supply chains through a range of preferential policies. For example, certain incentives under consideration include exemptions from specialized inspections for imported and exported goods that meet international management standards, as well as exemptions from foreign trade control measures and quarantine requirements. Projects classified as strategic investment priorities will benefit from shortened approval timelines, streamlined investment registration procedures, and preferential treatment in corporate income tax and personal income tax for experts. Special foreign exchange management policies will also be applied. Another key pillar for HCMC is the international financial center IFC, which the city plans to launch on December 19. The legislature passed a dedicated resolution on establishing an international financial center in Vietnam, effective from September 1, with around eight major implementing decrees expected to be issued soon. A critical issue will be defining clearer linkages and coordination mechanisms between free trade zones, including those in HCMC, Danang and Haiphong, and international financial centers (currently planned for HCMC and Danang), to ensure policy coherence and effective implementation. Strategic investment The Government’s report to the National Assembly also stressed the need to apply special investment procedures and processes. This is seen as a key foundation for HCMC to strengthen its competitiveness as the city pursues its vision of becoming an international city, while boosting its appeal to investment in areas like the free trade zone and the international financial center. The revised resolution places strong emphasis on a “strategic investor list,” identifying priority sectors such as high technology, smart manufacturing, financial centers, and large-scale commercial and service activities. It also clearly sets minimum capital thresholds for strategic investors by sector. For instance, infrastructure construction and operation projects within the free trade zone’s functional areas must involve an investment of at least VND30 trillion. HCMC will be granted autonomy to select strategic investors in a transparent and open manner, based on criteria such as financial capacity, proven experience and technology commitments. To ensure swift implementation, the Government has proposed clearly defining the categories of strategic investors in the draft resolution, allowing the policy to take effect immediately upon approval and addressing the city’s pressing need to attract investment.