On December 11, Vietnam’s National Assembly voted to approve a resolution allowing pilot implementation of special mechanisms and policies for major projects in Hanoi.

The resolution takes effect on December 12 and will be in place for five years.

Chairman authorized to approve investments of over USD 1.25 billion

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Headquarters of Hanoi People’s Committee. Photo: Hoang Ha

Under this resolution, the Hanoi People’s Council is authorized to approve public investment projects and public-private partnership (PPP) projects that do not use central government funding.

These include public investments, PPP projects, or commercial projects that need to be deployed immediately under the directives of the Politburo, the Party Secretariat, the Government’s Party Committee, or the Hanoi Party Executive Committee.

The chairman of the Hanoi People's Committee is granted authority to approve investment policies for strategic investor-attracting projects under the Capital Law, provided they have a minimum capital scale of VND 30 trillion (approximately USD 1.25 billion).

He is also authorized to approve urgent public or private projects following top-level Party and State directives.

Certain project categories excluded

However, the resolution excludes certain categories from the chairman’s approval authority. These include nuclear power plants, foreign investments in telecom infrastructure, forestation, publishing, journalism, betting, casinos, games of chance for foreigners, and projects with significant environmental risks.

National defense and security projects classified as “top secret” also remain under the authority of the National Assembly or the Prime Minister.

For projects that require unique legal mechanisms beyond existing laws, with the competent authority’s consent, the Hanoi People's Committee must submit a proposal to the Government, which then seeks permission from the National Assembly Standing Committee before implementation.

Special procurement and planning procedures

The resolution permits the use of special contractor selection mechanisms for certain public and PPP projects.

The Hanoi People’s Council is tasked with defining procedures, conditions, criteria, and documentation for selecting both investors and contractors.

For urgent investments mandated by the Politburo or Government, all planning approvals and construction work may proceed in parallel with the investment policy approval process - effectively speeding up implementation.

Land use and compensation policies

Regarding land recovery, lease, and allocation, the resolution allows the Hanoi government to use its own budget and other legal capital sources for site clearance and resettlement even before the investment policy is approved.

Beyond standard land recovery rules under Article 79 of the Land Law, the People’s Council can independently approve additional land recovery cases in the public interest and take full responsibility for these decisions.

The Council is also authorized to decide on the compensation and support levels. For projects requiring urgent implementation under central directives, compensation can be up to twice the regulated level. Other projects are capped at double the existing compensation rates.

Emergency construction, redevelopment, and urban cleanup

The resolution introduces flexible measures to improve Hanoi’s urban infrastructure.

New construction or renovation projects aimed at tackling urgent issues - such as traffic congestion, flooding, pollution, or public disorder - may be executed as emergency public investments under existing public investment laws.

For urban renewal efforts, once at least 75% of property owners agree - accounting for at least 75% of the residential land area - Hanoi authorities are empowered to enforce demolition orders.

Immunity for non-malicious errors, rewards for high performance

The resolution also clarifies accountability for officials involved in implementing the policy.

Those who have followed all legal and procedural requirements in good faith but still caused unintended damages may be exempted from disciplinary responsibility.

Conversely, individuals and organizations that deliver exceptional results in implementing this resolution will be rewarded in accordance with existing legal provisions.

The National Assembly emphasized that any corrupt, exploitative, or abusive actions by civil servants during the resolution’s implementation will be strictly punished.

Tran Thuong