HCM City and other special-class cities will gain broader powers to offer tailored salaries, bonuses, housing and other benefits to attract highly skilled professionals under a new law.
Vietnam’s newly passed Urban Development Law gives special-class city authorities broader powers to introduce tailored mechanisms to attract and retain experts, scientists, managers and other highly skilled professionals.
Authorities in special-class urban areas may introduce additional preschool and general education programs, provided they meet required educational objectives, student qualities and competencies. Photo: Nguyen Hue
The Urban Development Law was passed by the National Assembly at its first extraordinary session on August 24 and will take effect on October 1. This is the first time the National Assembly has enacted a dedicated law on urban development.
The law focuses primarily on Ho Chi Minh City and other cities recognized as special-class urban areas under Vietnamese law, while expanding the legal framework and decentralization mechanisms that can be applied flexibly to other urban areas and growth poles nationwide. Hanoi will continue to operate under the Capital Law.
Ho Chi Minh City and other special-class cities will be allowed to pilot a range of new mechanisms.
In education, local authorities can provide scholarships and special incentives for gifted and talented individuals and those with outstanding achievements. Students, teachers, education administrators and managers of educational institutions may also receive incentives and support to study, conduct research or undertake visiting teaching assignments in Vietnam or overseas in fields and sectors considered priorities for the city.
Students may study additional preschool and general education programs introduced by the city, provided these programs continue to meet required educational objectives, student qualities and competencies, as well as the mandatory content of the national preschool and general education curricula.
City leaders will have the authority to establish, merge, divide, separate, dissolve and rename city-managed public universities and colleges, as well as license their operations. They may also authorize the establishment, merger, division, separation, dissolution and renaming of private universities and colleges within the city and license their operations.
In addition, city leaders will be empowered to establish, merge, divide, separate, dissolve and rename foreign-invested universities and colleges, license their operations, and approve training partnerships with foreign institutions in the city after consulting the Ministry of Education and Training.
Cities can introduce special mechanisms to attract and retain experts
Social welfare policies and mechanisms may expand eligibility and increase benefits to ensure a comprehensive, modern and sustainable social security system with universal coverage. Photo: Nguyen Hue
In healthcare and social welfare, residents may receive support for preventive healthcare costs and medical examination and treatment expenses not covered by the health insurance fund, according to an appropriate roadmap. The support will come from the city budget.
Residents will also have access to an out-of-hospital emergency care and medical transport system. Fees for out-of-hospital emergency services and patients’ co-payment rates when using such services will provide the basis for payment support.
People who rendered services to the revolution and live in the city will be entitled to separate policies and benefits in addition to the measures above.
Cities may mobilize, commission and assign healthcare facilities within their jurisdictions to participate in out-of-hospital emergency services, medical transport, disease prevention and control, disaster response, community healthcare and other public-interest health services.
Foreign nationals receiving medical examination or treatment at healthcare facilities in the city may be considered for extensions of their temporary stay based on treatment requirements certified by the healthcare facility.
If those foreign nationals are accompanied by family members - including parents, spouses, biological children or adopted children - who provide care and support during their medical treatment, those family members may also be considered for extensions of their temporary stay.
The City People’s Council may establish incentive, support, investment and resource policies to ensure food safety, while developing shared infrastructure and database systems for food and food-safety management across the city and the special urban region.
The City People’s Committee will have the authority to establish measures, monitoring procedures and rapid-response mechanisms to prevent, contain and address food-safety incidents, as well as regulations governing the provision and disclosure of information about food ingredients and food products.
Regarding the attraction and retention of talent, highly skilled and talented people working at agencies, organizations, institutions and businesses within the city may benefit from special policies covering recruitment, education and training, professional development, income, salaries, bonuses and other forms of remuneration.
An aerial view of central Ho Chi Minh City. Photo: Nguyen Hue
Policies may also cover housing, residency and other necessary working conditions. Cities will be permitted to introduce special mechanisms to attract and retain experts, scientists, managers, chief engineers, chief architects and highly qualified professionals in fields prioritized for local development.
Foreign nationals who are experts, scientists, managers, innovative startup founders, individual investors in innovative startups or highly skilled workers will receive assistance with procedures for obtaining confirmation that they are exempt from work permits or for securing work permits. They may also be considered for visas and temporary residence cards for themselves and accompanying family members in accordance with the law.
When a city invests in construction, renovation, urban redevelopment or housing development, residents will be given priority for on-site resettlement. Living conditions at the new location must be at least equal to or better than those at their previous residence.
Resettlement protections will apply not only to people whose land-use rights are affected by land acquisition, but also to tenants, informal workers, small household businesses, older people, people with disabilities and groups whose livelihoods are closely tied to their former neighborhoods.
People whose homes or residential land are acquired may be resettled in social housing. Once they have fully paid for the property in accordance with regulations, they will be granted full ownership rights to the home in the same manner as for commercial housing.
The City People’s Committee may decide to convert between commercial housing, social housing and housing designated for resettlement, allowing these housing categories to be used flexibly in response to residents’ actual needs.