Law on The Capital of Vietnam 2026

 

LAW

ON THE CAPITAL

Pursuant to Constitution of the Socialist Republic of Vietnam amended by Resolution No. 203/2025/QH15;

The National Assembly hereby promulgates the Law on The Capital.

Chapter I

GENERAL PROVISIONS

Article 1. Regulated scope

This Law provides for locations and roles of the Capital; mechanisms, policies, powers and responsibilities for building, developing and protecting the Capital.

Article 2. Locations, roles and symbol of the Capital

1. The capital of the Socialist Republic of Viet Nam is Hanoi.

2. The Capital is the national political and administrative center, where the headquarters of central agencies of the Communist Party and the State, socio-political organizations, diplomatic missions and international organizations are located; and is a major center for economy, culture, science, technology, innovation, digital transformation, education, training, healthcare and international integration.

3. The symbol of the Capital is the image of Khue Van Pavilion at the Temple of Literature – Imperial Academy.

Article 3. Interpretation of terms

For the purposes of this Law, the terms below shall be construed as follows:

1. “Central urban area” means the urban area performing the principal functions of the Capital, including the historic inner-city area and adjacent areas identified in the Master Plan of the Capital.

2. “Historic inner-city area” means the area for preservation of the Thang Long – Hanoi cultural heritage and the traditional values of Hanoians as identified in the Master Plan of the Capital.

3. “Capital Region” means the socio-economic development linkage area comprising Hanoi City (hereinafter referred to as “the City”) and provincial administrative units sharing administrative boundaries with the City.

4. “Major and important projects” means any of the following projects:

a) Public investment projects in accordance with public investment laws; investment projects in accordance with PPP projects funded by local government budgets and other lawful local funding sources; and investment projects in accordance with laws on investment requiring immediate implementation under the direction of the Politburo, the Secretariat of CPV Central Committee, the Government Communist Party Committee, or the Executive Committee of the City Party Committee;

b) Public investment projects, PPP projects funded by local government budgets, other lawful funding sources in the City and the Capital Region that satisfy the criteria for classification as projects of national significance in accordance with laws on public investment;

c) Projects invested in by strategic investors.

5. “Low-altitude space” and “high-altitude space” mean the spaces above land surfaces and water surfaces within the administrative boundaries of the City, with scope, boundaries and altitude determined in accordance with the Capital’s planning, used for management, exploitation and use purposes in socio-economic development, science, technology, transportation and urban management activities associated with ensuring national defense, security, social order and safety.

6. “TOD area” means an area comprising railway stations, railway depots and adjacent areas identified under relevant zoning planning or detailed planning for railway construction associated with urban renovation, urban redevelopment and urban development investment.

Article 4. Principles for devolution and performance of delegated tasks and powers

1. Ensure conformity with the Constitution and consistency with international treaties to which the Socialist Republic of Viet Nam is a signatory.

2. Implement devolution in a thorough and comprehensive manner and delineate the powers of the People’s Council, the People’s Committee and the Chairperson of the People’s Committee of the City; based on practical conditions, the People’s Council, the People’s Committee and the Chairperson of the People’s Committee of the City may delegate to agencies, organizations and individuals the regular and continuous performance of one or more tasks and powers assigned to them in accordance with law, except where otherwise prohibited by law. Such devolution and delegation shall not prejudice national defense, security, foreign affairs, ethnic affairs, religious affairs or other fields directly related to national sovereignty.

In addition to the tasks and powers prescribed in this Law, the People’s Councils, the People’s Committees and the Chairpersons of the People’s Committees at all levels of the City shall also perform other tasks and exercise other powers in accordance with relevant laws.

3. Ensure human rights, fundamental rights of citizens, social equity, sustainable development, and the preservation of the identity and cultural values of the Capital and the Capital region; not adversely affect macroeconomic stability or national financial security; and respect market principles.

4. Ensure the operation of a unified, uninterrupted and efficient national administrative system; ensure transparency, openness and accountability, and effectively implement the control of power and the prevention and combat of corruption, wastefulness and misconduct in association with the inspection and supervision by competent authorities; and establish mechanisms for monitoring, assessment, inspection and timely adjustment of devolution arrangements where the agencies, organizations or individuals vested with devolved powers fail to effectively perform the assigned tasks and powers.

Article 5. Application of laws

1. In the event of any inconsistency between the provisions of the Law on the Capital and those of other laws or resolutions of the National Assembly governing the same matter, the provisions of the Law on the Capital shall prevail, except for the case specified in Clause 3 of this Article.

2. Legislative documents providing detailed regulations and specific measures for the implementation and guidance of the Law on the Capital, and legislative documents promulgated to implement the powers delegated under the Law on the Capital (hereinafter referred to as “documents elaborating the Law on the Capital” or “elaborating documents of the Law on the Capital”), shall apply in cases where multiple legislative documents contain different provisions on the same matter.

3. Where a legislative document issued by a central regulatory authority, including a document providing regulations or policies applicable to other entities or administrative divisions, promulgated after the effective date of the Law on the Capital or its elaborating documents, contains mechanisms or policies that are more preferential or favorable than those provided in the Law on the Capital or its elaborating documents, the application thereof shall be decided by the People’s Council of the City.

Chapter II

ORGANIZATION OF GOVERNMENTS, OFFICIAL DUTY REGULATIONS AND PROMULGATION OF LEGISLATIVE DOCUMENTS

Article 6. Administrative units under the City

1. Administrative units under the City include communes, wards and special administrative-economic units.

2. Special administrative-economic units under the City shall be established by the National Assembly to perform the role of functional urban areas in accordance with the Master Plan of the Capital; such units shall be organized under a special model and shall be entitled to apply exceptional mechanisms and policies, implement new local governance policies, attract investment and enhance the competitiveness of the Capital.

Article 7. Duties and powers relating to organizational structure and official duty regulations 

1. The People’s Council of the City shall have the authority to:

a) prescribe the proportion of full-time delegates of the People’s Council of the City; the number, functions, duties and powers of the Committees of the People’s Council of the City and commune-level People’s Councils; and the number of, and criteria for determining the number of, delegates of commune-level People’s Councils;

b) decide the number and composition of members of the People’s Committee of the City; and prescribe the number and composition of members of commune-level People’s Committees;

c) prescribe the establishment, organization and operation of villages and neighborhoods in conformity with the level of urbanization and the practical socio-economic development conditions of the Capital;

d) prescribe the number, establishment, reorganization and dissolution of specialized agencies and other administrative organizations under the management of the City; and decide the renaming and adjustment of functions of specialized agencies and other administrative organizations under the management of the City;

dd) prescribe the establishment, reorganization, dissolution, regulations on organizational autonomy, personnel autonomy, financial autonomy, and performance of tasks by public service providers under the management of the City;

e) prescribe income policies applicable to officials, civil servants, public employees and employees whose salaries are funded by the budgets at all levels of the City (hereinafter referred to as the “City budget”); and regulate the use of the City budget and other lawful financial sources for implementation of such policies;

g) prescribe job positions for civil servants and public employees under the management of the City;

h) decide staffing levels of agencies within the governmental system of the City;

i) prescribe the management and use of civil servants and public employees in accordance with the principle that heads of agencies or units directly employing civil servants and public employees shall conduct recruitment and evaluation;

k) prescribe the hiring, recruitment and appointment of heads of public service providers and state-owned enterprises under the management of the City.

2. The People’s Committee of the City shall have the authority to:

a) prescribe policies and measures for organizing the implementation of digital administration and digital official duties;

b) prescribe mechanisms and measures to promote grassroots democracy and mobilize public participation in local governance; and mechanisms for task contracting and other mechanisms to promote the self-governing role of villages.

3. The Chairperson of the People’s Committee of the City shall have the authority to establish, reorganize and dissolve public service providers under the management of the City in accordance with regulations of the People’s Council of the City.

Article 8. Formulation and promulgation of legislative documents

1. Elaborating documents of the Law on the Capital as prescribed in Clause 2 Article 5 of this Law may provide regulations different from those set out in legislative documents promulgated by central regulatory authorities.

2. During the implementation of the duties and powers of local governments in accordance with law, the People’s Council of the City, the People’s Committee of the City and the Chairperson of the People’s Committee of the City may promulgate legislative documents to:

a) adjust procedures and authority for settlement of administrative procedures currently prescribed in legislative documents of central regulatory authorities for the purpose of performing the duties and powers of agencies and organizations under the City, ensuring requirements for administrative reform and facilitating individuals and organizations toward simplification of administrative procedures, development of science and technology, innovation, and digital transformation in the settlement of administrative procedures, without requiring additional dossier components and imposing requirements, conditions or time limits beyond those currently applicable to such procedures.

b) provide regulations on specific measures suitable to the development requirements of the Capital for implementation and guidance of laws and resolutions of the National Assembly where regulations of the Government, the Prime Minister, Ministries or ministerial agencies are different or unavailable.

3. The promulgation of a legislative document as  prescribed in clause 1 and point b clause 2 of this Article shall comply with the following provisions:

a) Assessing the necessity, balance and reasonableness of promulgating a legislative document providing regulations that differ from those set out in documents issued by central regulatory authorities or that have yet been promulgated by the Government, the Prime Minister, Ministries, or ministerial agencies; clearly defining the objectives and expected outcomes to be achieved upon promulgation of such document, as well as the mechanisms for inspection, supervision, and accountability.

b) Assessing the consistency of the legislative document with the provisions of Article 4 of this Law;

c) Assessing the impacts of the policies embodied in the draft legislative document;

d) Conducting consultations on the draft legislative document with competent central authorities and relevant agencies and organizations; obtaining opinions from entities directly affected by the document; communicating the contents thereof; and publishing the dossier of the draft legislative document together with the contents concerning the acceptance of, and responses to, consultation comments and feedback provided by agencies, organizations and individuals in respect of the draft legislative document;

dd) Complying with the procedures prescribed by laws on promulgation of legislative documents. The simplified procedures shall not apply, except in cases involving the suspension of the effectiveness of the whole or part of, or the repeal of, a legislative document.

4. The People’s Council of the City shall provide regulations on the determination of the authority to promulgate legislative documents as prescribed in Clause 2 of this Article and shall elaborate Clause 3 of this Article.

5. The People’s Council of the City shall provide regulations on the promulgation of legislative resolutions to decide the applicable laws to be selected as prescribed in Clause 3 Article 5 of this Law. A resolution on the selection of applicable laws must specify the provisions of the legislative document selected for application, the scope and subjects of application, the effective time of application and transitional provisions (if any).

Article 9. Pilot mechanisms and policies

1. The City may decide pilot implementation of new mechanisms and policies that differ from laws and resolutions of the National Assembly, or new mechanisms and policies applicable for matters not yet provided for by law, within Hanoi.

Pilot mechanisms and policies shall not be implemented in the fields of national defense, security, foreign affairs, religion and other fields directly related to national sovereignty in accordance with law.

2. The pilot implementation of mechanisms and policies must ensure the following principles:

a) Compliance with the Constitution and consistency with international treaties to which the Socialist Republic of Viet Nam is a signatory.

b) No restriction of human rights, fundamental rights of citizens, or the lawful rights and interests of organizations and individuals; ensuring an equal investment and business environment, fair competition, openness, and transparency;

c) No prejudice to national defense, security or external relations of the State; ensuring social order and safety;

d) No adverse impact on public health, social ethics, or fine traditions and customs; no adverse impact on the State’s policy on great national unity and religious policy;

dd) The period of pilot implementation shall not exceed 05 years and may be extended for a further period not exceeding 05 years.

3. The scope of pilot mechanisms and policies includes:

a) New models for the organizational structure of the City’s governments at all levels; advanced and modern development-oriented governance models; official duty regulations;

b) New economic models based on science and technology, innovation, digital transformation, education and training, culture, healthcare and health protection;

c) Ecological agriculture models, high-tech agriculture models, and urban agriculture models;

d) Urban, rural, spatial management and sustainable development models;

dd) Methods for effective exploitation, mobilization, allocation and use of resources for the development and governance of the Capital;

e) Solutions to issues that seriously and directly affect residents’ quality of life or the socio-economic development of the Capital;

g) Other mechanisms and policies as directed by competent authorities.

4. On the basis of the approval of competent authorities, the People’s Council of the City shall promulgate resolutions on pilot mechanisms and policies, clearly specifying the objectives, scope, subjects, contents, duration, spatial scope, and pilot areas; the anticipated results and impacts of the pilot implementation; the rights, obligations and responsibilities of relevant agencies, organizations and individuals; risk management measures; control, supervision and evaluation mechanisms; and the conditions and procedures for adjustment, extension, or termination of the pilot implementation.

5. The People’s Committee of the City shall:

a) Submit to the People’s Council of the City for promulgation resolutions on pilot mechanisms and policies.

Where a proposed pilot mechanism or policy has impacts on the Capital Region, the People’s Committee of the City shall assess regional and national socio-economic impacts and obtain opinions from the provincial People’s Committees of relevant provinces before submitting it to the People’s Council of the City for consideration and decision;

b) Organize implementation of resolutions on pilot mechanisms and policies, ensuring the cooperation among relevant agencies, organizations and individuals;

c) Address issues arising during implementation or propose the handling thereof; suspend the pilot implementation and report to the People’s Council of the City for consideration and decision where the pilot implementation results in adverse impacts greater than those initially anticipated;

d) Submit annual or ad hoc evaluation reports, at the request of the People’s Council of the City or competent authorities, on the status and results of the pilot implementation;

dd) Organize evaluation of the results of the pilot implementation, determine the degree of achievement of objectives, efficiency and impacts on the development of the Capital and the Capital Region; and propose to the People’s Council of the City the extension or termination of the pilot implementation;

e) Submit or propose to competent authorities the amendment, supplementation or promulgation of legislative documents for official implementation.

6. The drafting and promulgation of resolutions on pilot mechanisms and policies shall comply with clause 3 and clause 4 Article 8 of this Law.

Chapter III

PLANNING, DEVELOPMENT, AND PUBLIC ORDER AND SAFETY OF THE CAPITAL

Article 10. Planning of the Capital

1. Within the territory of the City, only one Master Plan for the Capital shall be formulated on the basis of concretizing the contents of national planning and regional planning, and integrating, incorporating and replacing the Capital planning and the General Capital Planning. The Master Plan of the Capital shall have the same legal validity as provincial planning and general city planning in accordance with law.

2. The Master Plan of the Capital may only be adjusted in cases serving national interests, exceptionally important public interests, or requirements of national defense and security; where there are major changes in natural or socio-economic conditions; or for the implementation of requirements of the City Executive Committee of the Communist Party.

3. The People’s Council of the City shall have the authority to:

a) Provide regulations on the contents, dossier components, cost norms and procedures for the formulation, appraisal and approval of the Master Plan of the Capital, and for the approval of adjustments thereto.

Before approval of the Master Plan of the Capital and any adjustments thereto, it is required to obtain opinions from the Ministry of Public Security, the Ministry of National Defense, the Ministry of Construction, the Ministry of Agriculture and Environment, residential communities, and relevant agencies, organizations and individuals;

b) Provide regulations on types of planning, urban and rural planning activities and architectural activities.

4. The People’s Committee of the City shall have the authority to decide the list, roadmap and measures for relocation of manufacturing facilities, office premises, public service facilities located in the central urban area and other areas inconsistent with the Master Plan of the Capital and the urban and rural planning of the City, except for office premises of CPV agencies, regulatory agencies, agencies of the Vietnam Fatherland Front, and central socio-political organizations.

5. The Chairperson of the People’s Committee of the City shall have the authority to:

a) Approve the Master Plan of the Capital and approve adjustments thereto after such plan has been adopted by the People’s Council of the City;

b) Organize the inventory of cultural heritage in respect of works and work items prior to the relocation of manufacturing facilities, office premises and public service facilities as prescribed in Clause 4 of this Article.

Article 11. Management, operation and use of underground space, low-altitude space and high-altitude space

1. The management, operation and use of underground space, low-altitude space and high-altitude space shall comply with the following principles:

a) Ensuring compatibility with natural, meteorological, geological, geomorphological and hydrological conditions; and ensuring safety during the course of use and after the termination of use;

b) Consistency with the Master Plan of the Capital;

c) Ensuring national defense and security; giving priority to dual-use works capable of being readily converted from their current purposes of use to national defense and security purposes; preserving cultural spaces and environmental landscapes, historical-cultural relics, and scenic sites;

d) Ensuring synchronized connectivity among works;

dd) Encouraging and facilitating investment in projects for operation and use of underground space, low-altitude space, and high-altitude space.

2. Underground space, low-altitude space and high-altitude space must be planned and functionally zoned for management, operation and use purposes.

3. The People’s Council of the City shall provide regulations on:

a) The formulation, appraisal, approval and adjustment of planning for underground space, low-altitude space and high-altitude space after obtaining the unanimous opinions of the Ministry of National Defense, the Ministry of Public Security, and the Ministry of Construction, and consulting other relevant ministries and ministerial agencies;

b) Limits on underground depth within which land users in the City may use underground space in conformity with the planning without being required to pay charges for the use of underground space;

c) The use of underground space beyond the depth limits within which organizations and individuals are permitted to use prescribed in Point b of this Clause, and the payment, exemption, and reduction of charges for the use of underground space;

d) Preferential, support and incentive policies for investment in and development of underground works and operation of low-altitude space and high-altitude space;

dd) Revenues derived from operation and use of underground space, low-altitude space, and high-altitude space.

4. The People’s Committee of the City shall prescribe measures for the management, operation and use of underground space, low-altitude space and high-altitude space; and the management of infrastructure, technologies and vehicles operating in underground space, low-altitude space and high-altitude space.

Article 12. Development of urban areas and housing

1. Investment in the construction, renovation, upgrading and redevelopment of urban areas, and housing development within the City, must ensure the following principles:

a) Developing urban areas, smart cities, multifunctional and multi-purpose urban areas, and social housing areas in a modern, convenient and integrated manner in parallel with the development of urban technical infrastructure and social infrastructure;

b) Consistency with planning, architectural management regulations and urban design; and compliance with technical standards and regulations on construction and fire protection;

c) Protection of cultural, historical, natural, architectural and landscape heritage; and protection and development of green spaces and water surface areas;

d) Ensuring a balance of interests among residents, the State and enterprises; giving priority to in-situ resettlement arrangements; and improving urban amenities, living environments and livelihoods for residents in areas subject to renovation and upgrading;

dd) Giving priority to and supporting organizations and residential communities in independently proposing and implementing urban renovation, upgrading and redevelopment projects.

2. The People’s Council of the City shall provide regulations on:

a) Policies, measures, criteria and conditions for the implementation of urban renovation, upgrading and redevelopment projects within the City;

b) Urban development policies for TOD areas under the compact city model in conformity with planning;

c) Planning and architectural, technical infrastructure and social infrastructure indicators, and requirements regarding spatial organization and land use in TOD areas that differ from, or are not yet provided for in, national technical regulations on construction planning, on the basis of integrated operation of underground space and low-altitude space, while ensuring technical infrastructure, social infrastructure and infrastructure linkage indicators for the areas; and prioritizing the use of grounds for public spaces, plants and urban quality of life;

d) Charges imposed on additional gross floor area of civil construction projects resulting from increases in floor area ratios and planning indicators; revenues derived from the exploitation of land value increments; revenues derived from the operation of local railway infrastructure assets; infrastructure improvement charges, public transport linkage charges, and other revenues for the development of the local railway system and integrated transport infrastructure linkage within TOD areas;

dd) Mechanisms and policies on investment in, development of, and support for housing within the City; incentives and support for the development of social housing, official residences, resettlement housing, accommodation facilities and other housing types;

e) The use of the City budget for investment in essential technical and social infrastructure serving housing projects in accordance with planning.

3. The People’s Committee of the City shall have the authority to:

a) Prescribe procedures for implementation of urban renovation, upgrading and redevelopment projects;

b) Decide compulsory relocation measures serving urban renovation, upgrading and redevelopment projects; and decide project lists and implementation roadmaps;

c) Decide the conversion among commercial housing, social housing and resettlement housing within the City for flexible use in response to the actual needs of residents;

d) Decide measures for creation, management and operation of housing for social welfare and  Capital development purposes.

Article 13. Development of transport infrastructure, transportation, logistics and environmental protection

1. The People’s Council of the City shall provide regulations on:

a) Policies on investment and mobilization of resources for the construction, development, maintenance and upkeep of technical infrastructure works, traffic safety facilities, traffic congestion mitigation works and public underground works within the City;

b) Transport development policies; policies encouraging and prioritizing the development of mass public passenger transport systems, investment in the construction and operation of urban railways, buses, stations, bus terminals, multifunctional parking facilities, the operation of underground space and transportation in low-altitude space; restrictions on private vehicles entering central areas in order to reduce traffic congestion and emissions; and the imposition of congestion charges;

c) Policies on investment in the development of ring roads, logistics centers and public transport systems within the City and their connectivity with local areas engaged in regional linkage and development activities with the Capital;

d) Policies on encouraging the application of high technologies in the management and operation of transport systems;

dd) Policies on the management and operation of roads and local railways, ensuring traffic order and safety and urban civility;

e) The scope of low-emission zones for restricting vehicles in order to improve air quality, and measures to be applied within such zones according to an appropriate roadmap;

g) Policies on support for investment in the development of transport infrastructure using clean energy and non-motorized transport; support for the conversion of fossil fuel-powered vehicles to clean energy-powered vehicles; and measures for restricting the use of transport vehicles generating polluting emissions;

h) Policies and measures supporting the relocation of manufacturing facilities located within residential areas and facilities operating in sectors and trades not encouraged for development in rural craft villages;

i) Policies and measures to reduce plastic emissions arising from production, business, service, and daily-life activities within the City; regulations on support measures and incentives for activities involving treatment, production, business, services and consumption related to waste recycling using best available techniques and for solid waste management based on the generation – collection – transportation – treatment chain;

k) Preferential and support policies for production and business activities within the City applying circular economy models in the environmental industry and environmental service sectors.

2. The People’s Committee of the City shall provide regulations on:

a) Criteria for eco-industrial parks and eco-industrial clusters within the City, and the roadmap, mechanisms and support policies on converting existing industrial parks and industrial clusters into eco-industrial parks and eco-industrial clusters;

b) The organization of appraisal and approval of appraisal results for environmental impact assessment reports and the issuance of environmental permits for investment projects and manufacturing facilities, business establishments and service providers for which investment guideline decisions or approvals are made by competent authorities of the City.

Article 14. Ensuring public order and safety in the City

1. Administrative penalties within the City shall be imposed according to the following regulations:

a) The People’s Council of the City shall provide regulations on authorities and powers for imposing administrative penalties that differ from those provided under laws on handling of administrative violations; and policies on investment in resources to ensure centralized, unified, and effective state management in the fields of food safety and urban order within the City;

b) The People’s Council of the City shall provide for levels of fines for administrative violations within the City that are higher than, but not exceeding twice, the general fine levels, and corresponding powers to impose fines prescribed by the Government for corresponding administrative violations in the fields of culture, advertising, land, construction, fire protection, food safety, road traffic, environmental protection, security, public order and social safety within the City.

2. The People’s Council of the City shall provide regulations on the suspension of electricity and water supply to works and manufacturing facilities or business establishments in order to ensure security, public order and social safety within the City in the following cases:

a) Construction works inconsistent with planning; construction works without construction permits where such permits are required by law; construction works inconsistent with the contents of construction permits; or construction works inconsistent with approved construction designs where construction permits are not required;

b) Construction works built on trespassed  or appropriated land in accordance with land laws;

c) Construction works subject to fire protection design appraisal for approval that are commenced without a certificate, written approval of fire protection design issued by the competent specialized authority;

d) Construction works executed inconsistently with fire protection designs already appraised or approved;

dd) Construction works, parts of construction works, construction items or manufacturing facilities, business establishments or service providers that have been put into operation without a written approval of fire protection inspection and acceptance results issued by the competent specialized authority;

e) Nightclubs and karaoke venues failing to satisfy safety conditions for fire protection;

g) Manufacturing facilities or business establishments and construction works committing violations against environmental protection laws that fail to comply with requests to cease the violating acts, decisions of competent authorities on suspension of operations or remedial measures;

h) Works subject to demolition for which emergency relocation decisions have been issued by competent authorities.

3. Suppliers of electricity and water services shall immediately suspend such services upon request of the competent persons prescribed in Clause 5 of this Article, ensuring compliance with the prescribed scope, subjects and duration. The right to suspend electricity and water services in the cases specified in Clause 2 of this Article must be notified to service users and incorporated into electricity and water service contracts.

4. The People’s Council of the City shall provide regulations on other specific measures for ensuring public order and social safety, environmental protection and urgent administrative measures suitable for the requirements of protecting the Capital, ensuring the effectiveness of urban governance and balancing the maintenance of security and social order with the protection of the lawful rights and interests of organizations and individuals.

5. The Chairperson of the People’s Committee of the City and Chairpersons of commune-level People’s Committees shall decide the application of the measures prescribed in Clauses 2 and 4 of this Article.

Chapter IV

SOCIO-CULTURAL DEVELOPMENT

Article 15. Development of culture, sports and tourism

1. The People’s Council of the City shall provide regulations on:

a) Policies encouraging the mobilization of socialized resources and the use of the state budget for the protection and development of the Capital’s culture and sports; and support for individuals and organizations in the restoration and protection of areas of cultural and historical significance, and valuable architectural works;

b) Conditions and procedures for the conferment and revocation of the titles “Honorary Citizen of the Capital” and “Outstanding Citizen of the Capital” in recognition of individuals having outstanding merits and exceptionally excellent achievements contributing to the construction, development and protection of the Capital;

c) The organization and operation of, management mechanisms for, and preferential and support policies for the development of commercial and cultural development zones, cultural industry centers and other forms of cultural organizations and institutions;

d) Preferential and support policies for persons operating in the fields of culture and arts, artisans, practitioners of intangible cultural heritage, athletes, and coaches;

dd) Mechanisms for management and operation of advertising activities.

2. Based on the original constituent elements and the value of relics and heritage within the City, the People’s Committee of the City shall have the authority to:

a) Prescribe requirements, conditions, management dossiers, measures for protection, preservation, restoration, and rehabilitation of relics and renovation of valuable architectural works, except for relics and heritage recognized or inscribed by the United Nations Educational, Scientific and Cultural Organization (UNESCO);

b) Prescribe mechanisms for public-private cooperation in the management, operation and use of valuable architectural works;

c) Decide the preservation, restoration and rehabilitation of national relics and special national relics after consultation with the central culture authority in accordance with the procedures prescribed by the People’s Council of the City.

3. Based on regulations of the People’s Committee of the City, the Chairperson of the People’s Committee of the City shall decide:

a) Approval of the list of heritage, areas of cultural and historical significance and valuable architectural works within the City requiring concentrated resources for protection and value promotion;

b) Grant of licences to provide international travel services to enterprises registered within the City;

c) Recognition of ratings of tourist accommodation establishments within the City.

Article 16. Education and training development

1. The People’s Council of the City shall provide regulations on:

a) Management mechanisms and financial mechanisms applicable to multi-level educational institutions, high-quality educational institutions, institutions implementing educational association, and other advanced and modern school models;

b) Scholarship policies and mechanisms encouraging and supporting students, teachers, and lecturers to undertake study, research and visiting teaching assignments at foreign educational institutions in key sectors and fields.

2. The People’s Committee of the City shall have the authority to:

a) Prescribe the implementation of educational association between public and private preschool and general education institutions and foreign institutions;

b) Supplement preschool and general education curricula, provided that requirements regarding educational objectives, students’ qualities and competencies to be achieved, and compulsory educational contents of the national preschool and general education curricula are ensured;

c) Promulgate preschool and general education curricula applicable to the educational institutions specified at Point a, Clause 1 of this Article, consistent with the educational development objectives of the Capital and requirements regarding educational objectives, students’ qualities and competencies to be achieved, and compulsory educational contents of the national preschool and general education curricula;

d) Prescribe criteria and conditions relating to facilities, managerial staff, teachers, curricula, teaching methods and educational services applicable to the educational institutions specified at Point a, Clause 1 of this Article.

3. Based on regulations of the People’s Council of the City, the Chairperson of the People’s Committee of the City shall have the authority to:

a) Decide the establishment, merger, full division, partial division, dissolution, renaming and licensing for operation of public universities and public colleges managed by the City; permit the establishment, merger, full division, partial division, dissolution, renaming and licensing for operation of private universities and private colleges within the City;

b) Permit the establishment, merger, full division, partial division, dissolution, renaming and licensing for operation of foreign-invested universities and colleges or universities and colleges having association with foreign institutions within the City after consulting with the Ministry of Education and Training.

Article 17. Development of healthcare systems and social welfare

1. The People’s Council of the City shall provide regulations on:

a) Policies on support from the City budget for payment of medical examination and treatment costs beyond the coverage scope of the health insurance fund according to an appropriate roadmap;

b) Mobile and remote medical services, digital technology-based medical services, and fees therefor;

c) Policies on development of systems of out-of-hospital emergency care and medical transportation; prices for out-of-hospital emergency care services and patients’ co-payment ratios when using such services as a basis for the support for payment;

d) Support policies for healthcare activities at all levels within the City; and participation in supporting the Capital’s healthcare activities, systems of out-of-hospital emergency care and medical transportation by healthcare facilities within the City;

dd) Periodic free health check-ups and screening examinations for residents of the Capital. Expenses for health check-ups and screening examinations shall be covered by the City budget according to an appropriate roadmap, socialized resources, and other lawful funding sources;

e) Social policies, social welfare and social security policies of the Capital aimed at expanding beneficiaries and increasing benefit levels to ensure a diverse, comprehensive, modern, sustainable and universal social welfare system, prioritizing disadvantaged groups, vulnerable persons, persons living in ethnic minorities and mountainous areas, and persons requiring emergency assistance.

2. Based on regulations of the People’s Committee of the City, the Chairperson of the People’s Committee of the City shall have the authority to:

a) Decide whether to grant permission for healthcare facilities under the City’s professional management to apply specially advanced medical techniques;

b) Recognize practice licenses issued by competent foreign authorities or organizations as a basis for granting medical practice licenses in Vietnam.

Chapter V

DEVELOPMENT OF SCIENCE, TECHNOLOGY, INNOVATION AND DIGITAL TRANSFORMATION

Article 18. Development of science, technology, innovation and digital transformation

1. The People’s Council of the City shall provide for mechanisms and policies for the development of science, technology, innovation and digital transformation in conformity with the development conditions of the Capital and the following requirements:

a) Science, technology, innovation and digital transformation must be integrated into policymaking, state management and the development of socio-economic sectors and fields of the Capital. Priority shall be given to addressing major issues of the City and attracting and effectively using human resources in science, technology, innovation and digital transformation through breakthrough policies;

b) Priority shall be given to implementation of regulatory sandbox in the fields of science, technology, innovation and digital transformation as a basis for reviewing practical implementation and scaling up effective models nationwide;

c) Risk governance in science, technology, innovation and digital transformation activities within the City;

d) State budget funds for science, technology, innovation, and digital transformation shall be allocated and used in a flexible, timely, effective and transparent manner based on output results associated with objectives of economic growth, development of the digital economy and digital society, enhancement of labor productivity and improvement of urban management efficiency.

2. The People’s Council of the City shall provide regulations on:

a) Mechanisms and policies providing incentives and support for the development of infrastructure and organizations operating in the fields of science, technology, innovation, and digital transformation within the City;

b) Mechanisms and policies providing incentives and support for scientific research and technology development; technology transfer and protection of intellectual property rights; start-ups, innovation, digital transformation, and commercialization of scientific and technological products and research results; production, business and export of digital technology products; and development of digital assets;

c) The establishment of the City’s Science, Technology and Innovation Development Fund and mechanisms for organization, operation and management thereof;

d) The establishment of venture capital funds using the City budget for investment in start-ups and support for the start-up ecosystem and mechanisms for organization, operation and management thereof; and the allocation of the City budget for contribution of charter capital to venture capital funds.

The management and use of capital of venture capital funds shall comply with market principles, accept investment risks and ensure transparency, openness and efficiency;

dd) The use of science and technology development funds of enterprises, organizations and public service providers for contribution to the City’s Science, Technology and Innovation Development Fund; and policies providing incentives and support for enterprises, organizations, and public service providers contributing to the City’s Science, Technology and Innovation Development Fund to implement projects and schemes on science, technology and innovation development;

e) Cases of direct assignment and direct contracting for science, technology, innovation, digital transformation and digital technology application tasks and projects funded by the City budget;

g) The establishment of enterprises or participation in the establishment of enterprises; participation in the management, administration or capital contribution to enterprises for commercialization of scientific research and technology development results under the intellectual property rights ownership of public higher education institutions, public vocational education institutions and other public science and technology organizations under the City’s management and by public employees working at such institutions and organizations.

3. The People’s Committee of the City shall have the authority to:

a) Prescribe fixed funding mechanisms for the implementation of science, technology, and innovation tasks funded by the City budget;

b) Prescribe the mobilization and use of resources from sponsorship, support, public-private partnership forms and other forms in the fields of science, technology, innovation and digital transformation;

c) Prescribe advanced governance methods based on digital data, digital technology applications, and artificial intelligence; and mechanisms for public-private data sharing under data exploitation agreements;

d) Prescribe measures to ensure safety, manage risks, and apply artificial intelligence in state management within the City;

dd) Promulgate technical regulations and announce standards in various fields for application within the City with requirements higher than, or in the absence of, national technical regulations and standards; and select, recognize and apply advanced and modern international, regional and foreign standards.

The implementation of the provisions of this Point must ensure compatibility and connectivity of technology, management and data with those of central regulatory authorities, other local authorities and the national system of technical regulations and standards, and must not create barriers to production, business and trade activities.

4. Organizations and individuals carrying out science, technology, innovation and digital transformation tasks funded by the City budget may apply the simplified direct contracting procedure for selection of service providers and suppliers of goods in the course of performing such tasks, except in cases of direct procurement in accordance with law.

5. Expenditures on research and development activities of enterprises, organizations and public service providers within the City in accordance with law shall be treated as deductible expenses for determination of taxable income at an amount equal to 200% of the actual expenditures incurred, provided that, after application of the additional deductible amount, such enterprises, organizations and public service providers do not incur losses.

The use of science and technology development funds of enterprises, organizations, and public service providers in accordance with Point dd Clause 2 of this Article shall be deemed proper use for prescribed purposes under laws on science, technology, and innovation.

Article 19. Regulatory sandbox

1. The People’s Council of the City shall provide regulations on:

a) Criteria and conditions for selection and the procedures for permitting, adjusting, terminating and completing the regulatory sandbox of new technologies, processes, solutions, products, services, business models and other models;

b) Mechanisms for guidance and supervision of the pilot implementation process; mechanisms for protection of pilot participants; and the rights, obligations and responsibilities of agencies, organizations and individuals during the regulatory sandbox process;

c) Policies providing incentives, support and funding for regulatory sandbox activities; funding sources for ensuring the operation of agencies, organizations and individuals involved in the approval, guidance and supervision of the pilot implementation process; and the use of databases of regulatory authorities, infrastructure  and public property to support the implementation of regulatory sandbox;

d) Policies giving priority to procurement and investment funded by the City budget and support for market development for regulatory sandbox projects assessed as effective.

2. The People’s Committee of the City shall have the following tasks and powers:

a) To decide the permission for pilot implementation and promulgate pilot implementation regulations for each pilot project; to decide the temporary non-application of certain legal provisions within the limits of the pilot implementation for specific pilot projects where relevant legal provisions exist but are insufficiently specific or no longer appropriate; and to adjust the scope of pilot implementation, suspend, extend or terminate pilot implementation;

b) To notify relevant regulatory authorities; and organize the guidance and supervision of the pilot implementation process;

c) To report to the People’s Council of the City on the status and results of the implementation of regulatory sandbox and propose to competent authorities the improvement of laws relating to the relevant sectors and matters.

3. The implementation of regulatory sandbox must ensure compliance with requirements relating to national defense, security, social order and safety, public interests and protection of the rights and interests of pilot participants.

Article 20. Development of high-tech parks

1. High-tech parks within the City include high-tech parks, concentrated digital technology parks, high-tech agricultural parks and other concentrated and interconnected models for the application and development of high technologies in other sectors.

2. The People’s Council of the City shall provide regulations on:

a) The establishment, adjustment, investment in construction, management and development of high-tech parks; and functions and duties of high-tech parks;

b) Mechanisms and policies providing incentives, support and resources for the development of high-tech park infrastructure, investment projects and activities within high-tech parks;

c) Mechanisms, policies and models for the management and governance of high-tech parks, and other matters serving the development of high-tech parks within the City;

d) Mechanisms and policies for the development of high-tech urban areas within the City.

3. Hoa Lac High-Tech Park is a national and Capital key area for research, development, testing, and application of high technologies, training of high-tech human resources, production of high-tech products and innovation; and serves as a location for experimentation and pilot implementation of mechanisms and policies for the management and development of high technologies and high-tech parks nationwide.

4. The authority managing the City’s high-tech parks shall perform state management and other functions in relation to high-tech parks in accordance with regulations of the People’s Committee of the City.

Chapter VI

RESOURCES FOR THE DEVELOPMENT OF THE CAPITAL

Article 21. Financial and budgetary management and use

1. The central budget shall provide targeted additional funding to the City budget equal to the entire increase in central budget revenues derived from revenue items shared between the central government budget and the City budget beyond the estimates assigned by the Prime Minister, after implementation of statutory revenue overperformance reward mechanism in accordance with laws on the state budget, in respect of the following revenues:

a) Corporate income tax (excluding corporate income tax on oil and gas exploration and exploitation activities, and top-up corporate income tax under Global anti-base erosion (GloBE) model rules);

b) Personal income tax;

c) Excise tax, excluding excise tax refunds (if any) and excise tax on imports;

d)  Environmental protection tax.

2. The central budget shall provide targeted additional allocations to the City budget equal to the entire increase in revenues from revenue items fully retained by the central government budget arising within the City beyond the estimates assigned by the Prime Minister, in respect of the following revenues:

a) Export tax, import tax and additional import tax;

b) Excise tax on imports;

c) Charges collected from services provided by central regulatory authorities (excluding charges collected from oil and gas exploration and exploitation activities). Charges collected from services provided by public service providers and organizations assigned by competent authorities to provide public services shall be remitted to the state budget in accordance with law;

d) Fees collected by central regulatory authorities, excluding registration fees in accordance with laws on the state budget.

3. The targeted additional allocations from the central budget to the City budget prescribed in Clauses 1 and 2 of this Article shall not exceed the total increase in central budget revenues arising within the City compared with the previous year’s actual revenues and must ensure that the central budget does not suffer a revenue shortfall. The determination of targeted additional allocations shall be based on the aggregate amount of all revenue items and shall not be calculated separately for each revenue item. Where necessary, the Government shall decide the level of targeted additional allocations in accordance with the practical requirements of state budget administration, while preserving the central government budget’s primary role in the state budget system.

The revenues prescribed in Clauses 1 and 2 of this Article do not include revenues not collected by the City, revenues not arising within the City and only accounted for and remitted therein; revenues permitted by competent authorities to be used for specific expenditure tasks; revenue and expenditure entries, and revenues retained by spending units for management through the state budget in accordance with law.

The revenue items prescribed at Points a, c, d and dd Clause 4 of this Article shall not be used as the basis for determining balancing additional allocations from the central government budget to the City budget.

4. The City budget shall be entitled to retain in full the following revenue items:

a) Land levies under the management of the City;

b) Land rents under the management of the City;

c) Revenues from carbon credit transactions and greenhouse gas emission reduction results generated from programs and projects under carbon credit exchanging and offsetting mechanisms financed by the City budget;

d) Revenues from charges and fees promulgated by the People’s Council of the City outside the List of Charges and Fees prescribed by laws on charges and fees;

dd) Other revenues prescribed in this Law that have not yet been provided for under laws on the state budget.

5. The People’s Council of the City shall have the authority to:

a) Prescribe expenditure items funded from the City’s salary reform funds;

b) Prescribe expenditure items funded from the increase in the City budget revenues, statutory revenue overperformance rewards shared between the central government budget and the City budget, and targeted additional allocations derived from increases in central budget revenues prescribed in Clauses 1 and 2 of this Article, in addition to expenditure items already prescribed under laws on the state budget;

c) Prescribe the issuance of municipal bonds, project bonds, works bonds, urban bonds, and green bonds; and borrowing from credit institutions and the state treasury;

d) Prescribe financial autonomy mechanisms for administrative management expenditures applicable to regulatory authorities, CPV agencies and agencies of the Vietnam Fatherland Front at all levels under the management of the City;

dd) Prescribe the provision of guarantees for public service providers under the management of the City to obtain loans from credit institutions for investment in high-tech equipment;

e) Prescribe the restructuring, reorganization, and establishment of state extra-budgetary financial funds and the reform of organizational models and operational mechanisms toward multi-purpose and multi-functional models, ensuring streamlined and efficient operations;

g) Prescribe, or authorize the People’s Committee of the City to prescribe, expenditure regimes, standards, norms and fixed funding mechanisms for expenditure tasks funded by the City budget which are different from or not yet prescribed in documents issued by superior regulatory authorities;

h) Prescribe the use by commune-level People’s Councils of commune-level budgets to support other commune-level administrative divisions within the City;

i) Prescribe the allocation of public investment capital, within the annual public capital plan, for implementation of planning tasks, investment preparation tasks, project implementation for projects included in the medium-term public investment portfolio, settlement of completed projects and urgent projects upon approval of emergency orders by competent authorities, irrespective of the annual capital amount allocated to each project; and the allocation of recurrent expenditure funds for proactive allocation and assignment of estimates for implementation of planning tasks, investment preparation, settlement of completed projects, and other necessary tasks within the budget year.

The allocation of capital must ensure compliance with requirements on discipline and order in capital disbursement and must not give rise to outstanding basic construction debts;

k) Decide the expenditure structure of the City budget in line with local socio-economic development tasks and the use of budget surpluses and budget funds of the City;

l) Decide the use of the City-level budget for implementation of investment projects, works, and projects outside the City;

m) Decide the use of the City-level budget to support central authorities, other localities within the country, or other countries.

6. The People’s Committee of the City shall have the authority to:

a) Promulgate techno-economic norms, cost norms in various sectors; unit prices and prices of public services applicable to the Capital which have not yet been prescribed by central regulatory authorities, or differ from those prescribed by central regulatory authorities, except for prices and service prices prescribe by the People’s Council of the City under this Law and other relevant laws;

b) Decide the establishment of, and promulgate regulations on the management and use of, the Capital Reward Fund in accordance with regulations of the People’s Council of the City.

The financial resources of the Reward Fund shall be derived from annual increases in revenues from tax and fees compared with the estimates of the City budget and other lawful financial sources as decided by the People’s Council of the City;

c) Decide the flexible administration of the use of the City budget for development investment expenditures and recurrent expenditures within the total City budget approved annually by the People’s Council of the City, submit reports thereon to the People’s Council of the City at its nearest session, and consolidate such reports at the year-end regular session.

Article 22. Authority over investment

1. The People’s Council of the City shall have the authority to:

a) Decide investment guidelines for public investment projects and PPP projects funded by local government budgets or other lawful local funding sources for which investment guidelines are decided by the National Assembly, except nuclear power plant projects;

b) Decide investment guidelines for public investment projects and PPP projects within the City funded by the central government budget, official development assistance (hereinafter referred to as “ODA”), or foreign concessional loans for which investment guidelines are decided by the National Assembly or the Prime Minister where the People’s Council of the City is assigned by the National Assembly or the Prime Minister; and decide adjustments to investment guidelines for public investment projects and PPP projects for which investment guidelines have been decided by the National Assembly or the Prime Minister and for which the City People’s Committee has been assigned as the governing authority, provided that such adjustments do not lead to an increase in investment capital from the central government budget, ODA funds, or foreign concessional loans.

2. The Chairperson of the People’s Committee of the City shall have the authority to:

a) Decide investment guidelines for projects falling within the authority of the People’s Committee of the City in accordance with laws on public investment and PPP investment;

b) Approve investment guidelines for investment projects subject to investment guideline approval under laws on investment, except nuclear power plant projects, investment projects of foreign investors in telecommunications services involving network infrastructure, publishing and press sectors, projects in the fields of national defense and security classified as top secret, and projects located in high-tech parks and other functional zones within the City in accordance with laws on investment.

3. For investment projects prescribed in Clause 4 Article 3 of this Law requiring the application of special mechanisms or policies different from those prescribed by laws, resolutions of the National Assembly, ordinances, or resolutions of the Standing Committee of the National Assembly, the People’s Council of the City may, upon obtaining approval from competent authorities and after consulting competent central authorities, decide special mechanisms and policies different from those prescribed by laws, resolutions of the National Assembly, ordinances, or resolutions of the Standing Committee of the National Assembly. The People’s Council of the City shall report such mechanisms and policies to the Standing Committee of the National Assembly and to the National Assembly at its nearest session.

4. Investors for implementation of projects and contractors for implementation of bidding packages under projects prescribed in Clause 4 Article 3 of this Law may be selected under special-case investor and contractor selection procedures.

5. The People’s Council of the City shall provide regulations on:

a) Dossiers, appraisal contents, procedures for deciding investment guidelines, approving investment guidelines, adjusting investment guidelines, and approving adjustments to investment guidelines for the projects prescribed in Clauses 1 and 2 of this Article, public investment projects and PPP projects for which investment guidelines are decided by the People’s Council of the City, and projects for attracting strategic investors;

b) Criteria, conditions, dossiers, procedures for investor and contractor selection prescribed in Clause 4 of this Article;

c) Cases, authority, procedures for implementation of emergency investment projects and issuance of emergency construction orders within the City;

d) Criteria, conditions, procedures for determining projects requiring immediate implementation as prescribed at Point a Clause 4 Article 3 of this Law for submission to competent authorities for consideration and decision.

6. For projects decided or approved by competent authorities of the City in accordance with laws on public investment, investment, PPP investment, housing and bidding, which had been delayed in implementation prior to the effective date of this Law, the People’s Council of the City may prescribe or decide special policies and measures different from those prescribed by law in order to remove difficulties and obstacles, provided that the following principles and requirements are ensured:

a) There must be inspection or audit conclusions, or legally effective judgments, determining that the violations or irregularities result from faults of regulatory authorities, or from faults of both regulatory authorities and investors or project developers; difficulties and obstacles may only be considered for resolution after the inspection or audit conclusions or legally effective judgments have been complied with but the projects still remain delayed;

b) For projects currently subject to criminal, administrative or civil proceedings, the application of this Clause may only be carried out after a legally effective judgment or a decision on termination of the case has been issued; where a legally effective judgment contains handling measures different from those prescribed by the People’s Council of the City under this Clause, such judgment shall prevail;

c) Violating organizations and individuals must be strictly handled in accordance with Party regulations and State laws, ensuring remediation of economic consequences and recovery of material benefits derived from violations; violations must not be legitimized, and no new violations may arise; organizations and individuals abusing the implementation of this Clause for corruption, misconduct, or concealment of violations shall be strictly inspected, supervised and handled;

d) Measures must ensure consistency with objective realities and specific historical circumstances; ensure a balance between the interests of the State, the lawful rights and interests of relevant entities, and the legitimate interests of bona fide third parties within the overall national interest in accordance with law; ensure security, order and social safety, and minimize disputes and complaints, especially disputes involving foreign elements;

dd) Projects must be classified according to criteria relating to the causes of implementation delays; resolution measures must correspond to the legal status, financial obligations, degree of violations, and continued implementation capability of each project;

e) Full disclosure must be made of project information, difficulties and obstacles and all procedures and decisions relating to project resolution; before 31 December each year, reports on project resolution must be submitted to the Government where policies or measures different from those prescribed by the Government, the Prime Minister, Ministers, or Heads of ministerial-level agencies are applied, or submitted to the Standing Committee of the National Assembly where such policies or measures differ from those prescribed by the National Assembly or its Standing Committee;

g) The handling of delayed projects prescribed in this Clause must be completed before July 01, 2030.

Article 23. Management, use and operation of public assets and infrastructure assets

1. Under the management of the City, the People’s Committee of the City shall prescribe:

a) The management, use and operation of public assets at public service providers for business purposes, lease, joint ventures, association, or other forms;

b) The lease, lease-purchase, or purchase of works and assets invested in, constructed, or created from business investment activities or from non-state-budget sources for management, use, operation or formation of public assets serving socio-economic development, provision of public utility products and services, social welfare, and other public purposes;

c) The transfer of rights to collect user fees, fixed-term transfer of operation rights, lease of operation rights, or other methods in the management, use and operation of infrastructure assets, works, and other public assets invested in and managed by the State, or the works and assets prescribed at Point b of this Clause.

2. The promulgation and implementation of the regulations prescribed in Clause 1 of this Article must ensure compliance with the following principles:

a) Ensuring the efficient management, use and operation of assets in accordance with their intended purposes, functions, standards, norms, and applicable regimes; preventing and combating corruption, wastefulness, misconduct, special interest groups and regulatory capture;

b) Ensuring equality and voluntariness in agreements with investors and owners of works and assets in the lease, lease-purchase, or purchase of works and assets invested in, constructed, or created from business investment activities or from non-state-budget sources;

c) Public disclosure of information and contractual commitments relating to the transfer of rights to collect user fees, fixed-term transfer of operation rights, lease of operation rights, or other methods in the management, use, operation of infrastructure assets, works, and other public assets, except confidential information as prescribed by law;

d) Ensuring supervision, inspection, examination, and audit activities; and timely and strict handling of violations in accordance with law.

Article 24. Management, protection and use of natural resources

1. Cases of land repossession within the City include:

a) Cases of land repossession prescribed by the land law;

b) Land repossession for implementation of socio-economic development projects for national or public interests as prescribed at Point  a Clause 4 Article 3 of this Law;

c) Repossession of land adjacent to roads, stations, and depots of urban railways simultaneously with land repossession for investment in the construction of new road axes or urban railways, or expansion of existing road axes in accordance with the planning.

2. The People’s Council of the City shall have the authority to:

a) Prescribe the allocation of land, land lease, land repurposing, and exemption from or reduction of land levies and land rents.

The repurposing of land must conform to land-use planning and land-use plans, ensure openness, transparency, and efficiency, and must not cause losses, corruption, wastefulness, misconduct, special interest groups and regulatory capture;

b) Prescribe the contribution of land use rights and land readjustment for urban and rural renovation and redevelopment in accordance with the Capital planning;

c) Prescribe compensation, support and resettlement policies upon land repossession by the State;

d) Prescribe the use of riverbank land and alluvial land for construction of new works and housing at appropriate ratios in accordance with the Capital Master Plan, dike and flood prevention and control planning for river sections with dikes, and other relevant planning; and construction of works serving public spaces and public purposes in the remaining riverbank and alluvial areas without raising the elevation of such areas so as not to obstruct water flows;

dd) Prescribe the use and operation of agricultural land funds in riverbank and alluvial areas along river sections with dikes for agricultural production, ecological agriculture, and agriculture combined with tourism and experiential education, ensuring that construction on agricultural land in such areas conforms to dike and flood prevention and control planning for river sections with dikes and other relevant planning;

e) Prescribe conditions and procedures for granting construction permits, the types of constructions, and the proportion of agricultural land area permitted for construction of works directly serving agricultural production, processing, preservation, display and introduction of products, tourism landscapes, and experiential education in concentrated agricultural production areas;

g) Prescribe the management, protection, operation, use, and sustainable development of all forest area within the City, ensuring ecosystem integrity and connectivity and close linkage with inter-regional ecological spaces;

h) Prescribe the development of green spaces in urban areas in conformity with planning for land banks managed by State agencies and organizations but not yet allocated or leased, and unused land;

) Decide land-use quotas;

k) Decide each case of land repossession prescribed at Points b and c Clause 1 of this Article.

Land repossession must ensure a balance among the interests of the people, the State, and enterprises, must not cause losses, corruption, wastefulness, misconduct, special interest groups and regulatory capture, and must ensure security, order, and social safety.

3. The People’s Committee of the City shall prescribe procedures for implementation of land repossession prescribed at points b and c Clause 1 of this Article.

Article 25. Attraction, utilization and development of human resources

1. The People’s Council of the City shall prescribe policies on attraction, utilization, training, further training, and development of high-quality human resources working at agencies, organizations, units, and enterprises within the City, including:

a) Policies on income, salaries, bonuses, and other benefits;

b) Policies on housing, residence, and necessary working conditions;

c) Special mechanisms for attracting and utilizing experts, scientists, managers, chief engineers, chief architects, and persons with high qualifications and expertise in priority sectors for development of the Capital;

d) Policies on development of human resources for the digital technology industry and other key sectors.

2. The People’s Council of the City shall prescribe policies and the use of the City budget for implementation of the following:

a) Support for and investment in facilities and equipment for key educational and training institutions within the City;

b) Social housing policies for officials, civil servants, and public employees within the City;

c) Financial support for domestic and overseas training, further training, and improvement of professional qualifications, expertise, and vocational skills for officials, civil servants, public employees, and employees under the management of the City;

d) Investment in modernization of a number of key, high-quality colleges meeting regional and international standards in line with priority sector and occupational development orientations; implementation of tuition support policies for learners enrolled in key occupations and occupations approaching advanced regional and international standards.

Article 26. Investment attraction, investment incentives and support, and enterprise development

1. Investment projects within the City eligible for incentives and support include:

a) New investment projects in the field of sports, establishment of cultural industry centers, and projects in cultural industries under the detailed list promulgated by the People’s Committee of the City;

b) Projects for establishment of new preschool educational institutions, high-quality educational institutions, and multi-level educational institutions; preschool and general educational institutions located in areas with difficult socio-economic conditions; and educational institutions for persons with disabilities and disadvantaged children;

c) Projects for establishment of new high-quality and modern healthcare facilities; and healthcare facilities located in areas with difficult socio-economic conditions;

d) Projects for investment in non-public social assistance facilities, private drug rehabilitation facilities, and family-based or community-based voluntary drug rehabilitation service providers;

dd) High-tech, information technology, digital technology, innovation, and start-up projects in science and technology sectors of the Capital;

e) Projects for use of high and advanced technologies in the fields of environmental protection, climate change response, waste and wastewater treatment; projects for construction and commercial operation of high-tech park infrastructure; hi-tech agricultural projects; projects for development of traditional craft villages; and projects for investment in centralized animal slaughtering facilities satisfying national standards on veterinary hygiene.

2. Enterprises, organizations and individuals implementing projects prescribed at Points a, b, c, dd and e Clause 1 of this Article shall be entitled to the following incentives and support:

a) Exemption from land rent and water surface rent for 10 years and a 50% reduction of land rent and water surface rent for the remaining duration of the project.

Startups, science and technology organizations, and start-up assistance organizations shall be entitled to a 50% reduction in rent for production and business premises rent at the City’s innovation centers;

b) Income derived from implementation of the projects shall be subject to a 5% corporate income tax rate, including exemption from corporate income tax for 04 years and a 50% reduction of corporate income tax payable for the subsequent 09 years.

The period of exemption or reduction of corporate income tax of an enterprise implementing a new investment project prescribed in this Clause shall start from the first year in which taxable income is generated by the investment project.

3. Enterprises, organizations and individuals investing in projects prescribed at Point d Clause 1 of this Article shall be entitled to the following incentives and support:

a) Exemption from land levies upon establishment; exemption from corporate income tax on income derived from activities of non-public social assistance facilities, private drug rehabilitation facilities, and family-based or community-based voluntary drug rehabilitation service providers;

b) Interest subsidies on loans from the City budget during the first 05 years in accordance with regulations of the People’s Council of the City;

c) Donations and sponsorships from organizations and enterprises for activities of consultancy, communication, drug prevention and control, drug rehabilitation, development of new drug rehabilitation models, post-rehabilitation management, and rewards and incentives for enterprises, organizations and individuals with achievements in drug prevention and control shall be treated as lawful deductible expenses of enterprises for accounting purposes.

Donations and sponsorships from individuals for activities of consultancy, communication, drug prevention and control, drug rehabilitation, development of new drug rehabilitation models, post-rehabilitation management, and rewards and incentives for enterprises, organizations and individuals with achievements in drug prevention and control shall be deductible from income before tax calculation for individuals residing in the City.

4. Enterprises, organizations and individuals investing in construction of underground parking facilities and multi-storey parking facilities shall be entitled to the following incentives and support:

a) Exemption from land rent and charges for use of underground space throughout the entire project implementation period;

b) Support equal to 100% of import duties payable on equipment and production lines directly serving projects for construction of underground parking facilities and multi-storey parking facilities using high technologies;

c) Permission to use up to 25% of the gross floor area of the facility in accordance with planning for investment in and operation of ancillary services supporting parking operations;

d) Interest subsidies on loans from the City budget during the first 05 years in accordance with regulations of the People’s Council of the City;

5. Strategic investors shall be entitled to the following incentives and support:

a) Exemption from or reduction of land rent and water surface rent in accordance with regulations of the People’s Council of the City;

b) Entitlement to benefits regarding customs and tax procedures in accordance with law for exports and imports of investment projects implemented by strategic investors within the City upon satisfaction of conditions for application of the preferential treatments prescribed by customs and tax laws, except conditions relating to export and import turnover;

c) Support for human resource development; infrastructure and social infrastructure facilities; support for high-tech products; and research and development;

d) Other incentives and support decided by the People’s Council of the City to meet urgent requirements for attraction of strategic investors.

6. Startups in the science and technology sectors of the Capital shall be entitled to the following incentives and support:

a) Exemption from corporate income tax for a period of 05 years from the time corporate income tax becomes payable on income derived from innovative start-up activities of startups, science and technology organizations, innovation centers, and start-up assistance organizations arising within the City;

b) Exemption from personal income tax and corporate income tax for individuals and organizations deriving income from transfer of capital contributions or rights to contribute capital to startups within the City;

c) Exemption from certain evaluation criteria relating to bidders’ capacity and experience in prequalification applications, bidding documents and proposals when participating in bidding for the City’s procurement packages, including requirements on revenue, financial resources, similar contracts, and other requirements, in order to conform to the specific characteristics of startups.

In the evaluation and ranking of bidding documents and proposals, bidders being startups operating within the City shall be entitled to incentives equivalent to those applicable to bidders supplying goods with domestic production costs accounting for at least 25% in accordance with bidding laws; the method for calculation of such incentives shall comply with law.

7. Individuals participating in science, technology and innovation activities of the City shall be entitled to the following incentives and support:

a) Exemption from personal income tax for a period of 05 years with respect to income from salaries and wages of experts, scientists, specially talented persons, and start-up individuals working at startups, science and technology organizations, innovation centers, and start-up assistance organizations within the City;

b) Income derived from implementation of key science and technology tasks of the Capital under the list promulgated by the People’s Committee of the City shall be treated as income exempt from personal income tax.

Key science and technology sectors of the Capital include digital technology, information and communications technology, biotechnology, new materials technology, manufacturing and automation technology, environmental technology, carbon emission reduction, climate change response and other sectors decided by the People’s Council of the City.

8. The People’s Council of the City shall provide regulations on:

a) The list of sectors, industries prioritized for attraction of strategic investors of the Capital; and criteria and conditions applicable to strategic investors;

b) Cases in which strategic investors are not entitled to incentives due to failure to satisfy conditions relating to capital, disbursement schedule, and other conditions applicable to strategic investors, or due to failure to fulfill commitments made to the City; and obligations to reimburse incentives already granted;

c) Criteria, conditions, dossiers, procedures for implementation of incentives and support prescribed in Clauses 2, 3, 4, 5, 6, and 7 of this Article, and other incentives and support subject to the City’s budgetary capacity;

d) Policies providing support for enterprises operating in the private sector within the City based on business lines, levels of taxes, fees, and other payments to the state budget, job creation results, and implementation of social responsibilities by the enterprises.

9. Authority of the People’s Council and the Chairperson of the People’s Committee of the City with respect to state-invested enterprises under the management of the City:

a) The People’s Council of the City shall decide the list of enterprises in which the State holds shares or capital contributions, and investment of State capital in enterprises; and mechanisms for payment of salaries, remunerations, and bonuses for direct owner representatives, Controllers, and representatives of State capital portions in enterprises;

b) The Chairperson of the People’s Committee of the City shall decide investment of State capital in enterprises according to the list decided by the People’s Council of the City; sources of investment capital include local government budgets and retained after-tax profits for reinvestment and enterprise development; levels of salaries, remunerations and bonuses shall be determined on the basis of evaluation results regarding business efficiency indicators, labor productivity, and capital preservation of enterprises.

Article 27. Development of free economic zones, free trade zones and new economic models

1. Free economic zones and free trade zones in the City shall be established by the People’s Committee of the City after obtaining approval from the People’s Council of the City.

Mechanisms and policies on organization and operation of free economic zones and free trade zones shall comply with regulations of the People’s Council of the City.

2. The People’s Council of the City shall prescribe the scope, conditions, industries, operational sectors, management measures, assurance of security, order and social safety, and other arising matters for development of the following:

a) Investment in and trading of products and services serving the needs of elderly persons, and support for and encouragement of employment of elderly workers, associated with sustainable urban development, social security, healthcare, innovation, and socio-economic development of the Capital and the Capital Region;

b) Investment in and trading of products and services organized and operated during nighttime hours in order to efficiently exploit urban potential and promote economic, cultural and tourism development;

c) Investment in and trading of products and services organized and operated in low-altitude space and high-altitude space;

d) Urban economy, creative economy, and high value-added service industries; and investment in and trading of new products and services.

Chapter VII

REGIONAL LINKAGE AND DEVELOPMENT

Article 28. Objectives and principles of regional linkage and development

1. Hanoi is the nucleus, connecting center, and driving force for linkage and development, and serves as a growth pole of the Capital Region, the Red River Delta Region, the Northern Midland and Mountainous Region, and the country as a whole.

2. The State shall prioritize resources to promote regional linkage and development between the City of Hanoi and administrative divisions within the Capital Region (hereinafter referred to as “Capital Region linkage and development”), and between the City of Hanoi and other administrative divisions within the Red River Delta Region and the Northern Midland and Mountainous Region (hereinafter referred to as “regional linkage and development”).

3. Regional linkage and development and Capital Region linkage and development must ensure the following principles:

a) Consensus, openness, transparency and harmonization of interests between the City of Hanoi and administrative divisions;

b) Cooperation in linkage and development through linkage and development programs, plans, and projects;

Ensuring consistency in organization of development space, investment in shared technical infrastructure, and implementation of regional linkage and development between the City of Hanoi and administrative divisions; and conformity with national planning, the Capital Master Plan, and provincial planning.

4. Planning and investment in regional linkage and development projects and Capital Region linkage and development projects must satisfy the following requirements:

a) Linkage and harmonization of technical standards and technical regulations relating to transport infrastructure and shared infrastructure of administrative divisions;

b) Cooperation in operation of mineral resources; management of the environment and water resources; treatment of air pollution and water pollution; and disease control;

c) Development of production and supply chains for products and services in the fields of industry, agriculture, logistics, science, technology, education, training, healthcare, labor, culture, and tourism.

Article 29. Investment in and management of regional linkage and development projects and Capital Region linkage and development projects

1. The proposal and implementation of regional linkage and development projects and Capital Region linkage and development projects shall be carried out as follows:

a) The People’s Committees of the City of Hanoi and relevant administrative divisions shall submit reports on implementation of the projects to the People’s Councils at the same level for consideration and consensus;

b) The People’s Committees of the City of Hanoi and administrative divisions participating in the projects shall agree on designation of a provincial People’s Committee as the governing authority for implementation of the projects.

2. The central government budget and local government budgets shall allocate funds for implementation of regional linkage and development projects and Capital Region linkage and development projects funded by the state budget in accordance with the following provisions:

a) The central government budget shall prioritize allocation of capital for the projects;

b) Priority shall be given to allocation from increased central government budget revenues to ensure investment in regional linkage and development projects and Capital Region linkage and development projects before other programs, tasks and projects;

c) The Prime Minister shall decide the list of projects eligible for support from the central government budget prescribed in this Article at the request of the People’s Committee of the City of Hanoi.

3. Local authorities participating in implementation of regional linkage and development projects and Capital Region linkage and development projects shall have the following rights:

a) To apply provisions of the Law on the Capital and its elaborating documents for formulation, appraisal, approval and implementation of regional linkage and development projects and Capital Region linkage and development projects under resolutions of the provincial People’s Councils after reaching agreement with the People’s Council of the City of Hanoi;

b) Administrative divisions within the Capital Region may use their budgets to directly invest in Capital Region linkage and development projects located in other administrative divisions within the Capital Region in order to address issues relating to transport infrastructure, environment, clean water supply, drainage systems, and other works serving common interests.

4. The Capital Region Development Fund shall be established and operate as follows:

a) The Capital Region Development Fund is a state extra-budgetary financial fund established by decision of the People’s Council of the City of Hanoi on the basis of agreement with the provincial People’s Councils of administrative divisions within the Capital Region;

b) Financial resources of the Fund shall be formed from the central government budget, local government budgets of administrative divisions within the Capital Region, resources from donations and support, and other lawful financial sources;

c) The Fund shall be used for investment in Capital Region linkage and development projects, with priority given to projects on transport infrastructure, other important infrastructure, environmental pollution treatment projects, mineral exploitation projects, and projects for incident response, disaster management, and regional disease control.

5. Local authorities engaging in regional linkage and development activities and Capital Region linkage and development activities shall have the following duties and powers:

a) To cooperate with the City of Hanoi in formulation and organization of implementation of programs, plans, and projects;

b) To balance local government budgets for implementation of projects within their administrative divisions; and to contribute funds for maintenance, repair, and operation of shared infrastructure works according to the level of use and benefits enjoyed;

c) To share environmental costs, including costs for control, mitigation and remediation of environmental pollution related to their administrative divisions;

d) To provide information and data serving regional linkage and development and Capital Region linkage and development;

dd) To cooperate in supervision and inspection of implementation of regulations on regional linkage and development and Capital Region linkage and development.

Article 30. Environmental protection in the Capital Region

1. Cooperation in environmental protection in the Capital Region with respect to issues having inter-provincial impacts includes management and improvement of air quality by affected air zones; wastewater management by river basins and drainage systems; and solid waste management according to the generation–collection–transportation–treatment chain.

The People’s Committee of the City of Hanoi shall play the coordinating role in the Capital Region cooperation mechanism in environmental protection on the basis of ensuring harmonization of interests, sharing of responsibilities, and compliance with law.

2. The Capital Region cooperation mechanism in environmental protection includes the following principal contents:

a) Sharing, interconnection and common use of environmental data, waste sources, and emission sources;

b) Establishment of an inter-regional environmental pollution monitoring and supervision system;

c) Formulation and organization of implementation of regional environmental plans in conformity with each environmental component;

d) Cooperation in inspection, supervision and handling of violations of environmental laws relating to emission sources having inter-regional impacts;

dd) Mobilization, allocation and common use of resources for inter-regional environmental protection tasks, schemes and projects.

3. On the basis of agreement with provincial People’s Committees of administrative divisions within the Capital Region, the People’s Committee of the City of Hanoi shall formulate coordination mechanisms, cooperation contents, responsibilities of relevant parties, and mechanisms for supervision of implementation of regional cooperation in environmental management.

4. On the basis of consensus among local authorities within the Capital Region, the authority of the City of Hanoi and other local authorities within the Capital Region may prescribe stricter environmental protection measures than those prescribed by competent regulatory authorities as follows:

a) The Provincial People’s Councils shall prescribe entities and thresholds of wastewater discharge, dust emissions and industrial exhaust emissions required to apply automatic and continuous monitoring measures; and higher environmental protection charges applicable to wastewater, dust emissions, and industrial exhaust emissions;

b) The Provincial People’s Committees shall provide environmental technical regulations on waste and roadmaps for implementation thereof.

The promulgation of legislative documents by the provincial People’s Councils and provincial People’s Committees of other administrative divisions within the Capital Region as prescribed in this Clause shall comply with laws on promulgation of legislative documents.

Chapter VIII

SUPERVISION, INSPECTION AND ACCOUNTABILITY

Article 31. Responsibilities of the National Assembly, agencies of the National Assembly, Delegations of National Assembly deputies, and National Assembly deputies

1. The National Assembly shall consider reports on implementation of the Law on the Capital at the request of the Standing Committee of the National Assembly or the Government.

2. The Standing Committee of the National Assembly shall have the following responsibilities:

a) To supervise implementation of the Law on the Capital;

b) Pursuant to law or for the purpose of ensuring national interests, national defense, security, and external relations of the State, to decide annulment in whole or in part of documents promulgated by the People’s Council of the City under this Law;

c) To consider reports of the People’s Council of the City on implementation of the Law on the Capital.

3. The Ethnic Council and Committees of the National Assembly, within their jurisdiction, shall supervise implementation of specific mechanisms and policies and promulgation of legislative documents by the City government under this Law; and recommend that competent authorities handle issues arising during implementation of the Law.

4. Delegations of National Assembly Deputies and National Assembly Deputies, within their jurisdiction, shall have the following responsibilities:

a) To supervise implementation of the Law on the Capital;

b) To recommend that competent authorities handle issues arising during implementation of the Law;

c) To participate in improvement of mechanisms and policies for construction, development and protection of the Capital and the Capital Region.

Article 32. Responsibilities of the Government, the Prime Minister, Ministries and ministerial agencies

1. The Government shall have the following responsibilities:

a) To organize the monitoring, inspection and supervision of implementation of the Law on the Capital in order to ensure that the delegation and devolution prescribed in this Law are implemented uniformly, lawfully and effectively;

b) To direct the monitoring, assessment and control of risks associated with implementation of the specific mechanisms and policies of the Capital.

2. The Prime Minister shall have the following responsibilities:

a) To direct inter-sectoral coordination and settlement of inter-regional and inter-sectoral issues arising during implementation of the specific mechanisms and policies of the Capital;

b) Pursuant to law or for the purpose of ensuring national interests, national defense, security, and external relations of the State, to suspend implementation in whole or in part of documents promulgated by the People’s Council of the City under this Law, and to suspend implementation of or annul in whole or in part documents promulgated by the People’s Committee or the Chairperson of the People’s Committee of the City under this Law.

3. Ministries and ministerial agencies shall have the following responsibilities:

a) To perform state management by sector and field with respect to activities within the City in accordance with law and in conformity with provisions on delegation and devolution to the City government;

b) To coordinate with the People’s Committee of the City and provincial People’s Committees of administrative divisions engaging in regional linkage and development activities or Capital Region linkage and development activities in formulating, organizing implementation of, and assessing specific mechanisms and policies;

c) To provide professional and technical guidance; and to conduct inspection and supervision within their jurisdiction regarding implementation of laws and the specific mechanisms and policies prescribed in this Law;

d) To propose that the Prime Minister suspend implementation of or annul documents in accordance with point b clause 2 of this Article.

Article 33. Responsibilities of the City government, agencies and organizations of the City

1. The People’s Councils, People’s Committees, and Chairpersons of People’s Committees at all levels of the City, within their jurisdiction, shall have the following responsibilities:

a) To promptly organize and ensure implementation of laws on the Capital; and to ensure resources for implementation of the mechanisms and policies prescribed in this Law;

b) To conduct inspection and supervision of implementation of provisions of the Law on the Capital within their jurisdiction and to take responsibility for violations and shortcomings occurring in the construction, development and protection of the Capital;

c) To ensure publicity and transparency and strengthen accountability regarding use of land banks, implementation of investment projects, administrative procedures, and other matters as prescribed by law so that the People may be informed, provide opinions, and supervise implementation of this Law;

d) Not to grant authorization or delegate the powers prescribed in this Law, except for the powers prescribed at points b and c clause 3 Article 15 of this Law.

With respect to powers of the People’s Council, the People’s Committee, and the Chairperson of the People’s Committee of the City prescribed in other legislative documents, authorization and delegation shall comply with law.

2. The People’s Council of the City, within their jurisdiction, shall have the responsibility to implement clause 1 of this Article and the following duties and powers:

a) To supervise implementation of the Law on the Capital;

b) To submit annual reports to the Standing Committee of the National Assembly on implementation of the Law on the Capital.

3. The People’s Committee of the City, within their jurisdiction, shall have the responsibility to implement clause 1 of this Article and the following duties and powers:

a) To ensure safety and favorable conditions for operation of central agencies of the Communist Party and the State, socio-political organizations, diplomatic missions, and international organizations, and for organization of national and international programs and events within the City;

b) To proactively coordinate with and support local authorities within the Capital Region, the Red River Delta Region, the Northern Midlands and Mountainous Region, and nationwide through expansion of linkage and cooperation mechanisms for mutual development;

c) To facilitate effective participation by agencies, organizations and individuals in the process of construction, development and protection of the Capital;

d) To propose that the People’s Council of the City consider deciding application of law prescribed in clause 3 Article 5 of this Law;

dd) To organize assessment of effectiveness of legislative documents promulgated under Article 8 of this Law after one year of implementation; and to conduct preliminary and final reviews of implementation of such documents in accordance with law or at the request of the People’s Council of the City, the Prime Minister, or the Standing Committee of the National Assembly;

e) To submit annual reports to the People’s Council of the City and the Government on implementation of the Law on the Capital.

4. The Vietnam Fatherland Front Committees at all levels of the City and member organizations of the Front shall have the responsibility to conduct supervision and social criticism with respect to implementation of the Law on the Capital.

5. Within 07 days from the date of promulgation of a legislative document under Article 8 or Article 9 of this Law, the People’s Council, the People’s Committee, and the Chairperson of the People’s Committee of the City shall have the following responsibilities:

a) To submit reports to the Standing Committee of the National Assembly and the Government on matters falling within the jurisdiction of the National Assembly and the Standing Committee of the National Assembly;

b) To submit reports to the Government and the Prime Minister on matters falling within the jurisdiction of the Government and the Prime Minister;

c) To submit reports to ministries and ministerial agencies on matters falling within the jurisdiction of such ministries and ministerial agencies.

6. Accountability of the City government:

a) To provide explanations at the request of competent regulatory authorities when major issues arise that affect or may affect national interests, national defense, security, external relations of the State, social order and safety, or the lawful rights and interests of organizations and individuals.

The explanatory contents include objectives, scope of impacts and assessment of risks and socio-economic consequences arising from application of the specific mechanisms and policies; implementation results, efficiency in use of resources, impacts on development of the Capital and national interests; and measures for prevention, detection, and handling of limitations, inadequacies, and errors arising during implementation of the specific powers, mechanisms, and policies;

b) Explanatory contents must be publicly disclosed in accordance with law to ensure public supervision.

Article 34. Handling of violations, exclusion from and exemption from legal liability

1. Acts of corruption, profiteering, harassment committed by officials, civil servants, public employees and other violations in implementation of this Law shall be handled strictly.

2. Heads of agencies, organizations and units; officials, civil servants, public employees; and persons participating in formulation, promulgation and implementation of the Law on the Capital and documents promulgated under Article 8 and Article 9 of this Law shall be excluded from or exempted from legal liability where they act without personal gain and have complied with regulations on competence, order and procedures in the performance of their duties, but damage nevertheless occurs.

Chapter IX

IMPLEMENTATION PROVISIONS

Article 35. Entry into force

1. This Law comes into force from July 01, 2026, excluding the case in clause 2 of this Article.

2. The provisions of clause 2 Article 8 and clause 6 Article 36 of this Law shall come into force from the day on which this Law is adopted.

From the date on which this Law is adopted, the formulation and promulgation of implementing documents of the Law on the Capital shall be carried out in accordance with this Law.

3. Law on the Capital No. 39/2024/QH15 amended by Law No. 47/2024/QH15, Law No. 55/2024/QH15, Law No. 57/2024/QH15, Law No. 58/2024/QH15, Law No. 71/2025/QH15, Law No. 72/2025/QH15, and Law No. 95/2025/QH15, shall cease to have effect from the effective date of this Law.

Article 36. Transitional provisions

1. Programs, projects, schemes, tasks, planning, plans, financial mechanisms, management mechanisms, autonomy mechanisms, and state extra-budgetary financial funds that were approved and under implementation before the effective date of this Law may continue to be implemented in accordance with the issued decisions; where consistent with this Law, they may be converted for implementation under the mechanisms and powers prescribed by this Law without requiring re-approval.

2. Pilot, experimental regulatory sandbox mechanisms and new governance models that were under implementation before the effective date of this Law may continue to be implemented in accordance with the approved plans. The People’s Council and the People’s Committee of the City may adjust the contents, scope and duration of the pilot implementation to conform with this Law without having to repeat the completed approval procedures.

3. Matters relating to organization of local government, organizational apparatus, official duty regulations and job positions that had been implemented before the effective date of this Law may continue to be implemented until new regulations are promulgated by the People’s Council, the People’s Committee, or the Chairperson of the People’s Committee of the City in accordance with the powers prescribed by this Law.

4. Documents for completion of administrative procedures that are complete, accurate and received by competent authorities before the effective date of this Law shall continue to be processed in accordance with laws in force at the time of receipt.

5. Urban railway projects and TOD-model urban railway projects for carrying out investment procedures in accordance with Resolution No. 188/2025/QH15 on pilot implementation of a number of specific and special mechanisms and policies for development of the urban railway network system in Hanoi and Ho Chi Minh City shall continue to be implemented in accordance with such Resolution.

The People’s Council of Hanoi may decide to amend or supplement the urban railway projects within the City included in the Appendix enclosed with Resolution No. 188/2025/QH15 in accordance with the City’s development needs and shall report implementation results to the Government.

6. Major and important projects implemented under Resolution No. 258/2025/QH15 on pilot implementation of a number of specific mechanisms and policies for implementation of major and important projects in the Capital area before the effective date of this Law shall continue to be implemented in accordance with Resolution No. 258/2025/QH15. Where investors or project developers fail to satisfy the conditions for commencement of construction works within 06 months from the commencement date in accordance with clause 2 Article 5 of Resolution No. 258/2025/QH15, the People’s Council of the City may consider deciding extension of the time limit for satisfying such conditions and shall take responsibility therefor; the total extension period must not exceed 06 months.

Any major and important project prescribed in clause 2 Article 1 of Resolution No. 258/2025/QH15 and implemented after the effective date of this Law shall comply with this Law, except where the authority competent to decide or approve the investment guidelines of the project decides to apply Resolution No. 258/2025/QH15.

This Law was passed on April 23, 2026, by the XVIth National Assembly of the Socialist Republic of Vietnam at its 1^st session.