At a special session on September 21, the Ho Chi Minh City People’s Committee submitted to the municipal People’s Council a draft resolution governing the use of funds set aside for salary policies, additional city budget revenue, rewards for exceeding revenue targets shared between the central and city budgets, and targeted transfers from the central government.

According to the city government, the resolution would provide a legal basis for more flexible use of these resources to meet new responsibilities arising when the Urban Development Law takes effect on October 1.

The funding could support the city’s pursuit of double-digit economic growth, development investment, income policies for public employees and regional connectivity projects.

Since 2023, Ho Chi Minh City has used surplus salary reform funds to provide additional income for public officials and civil servants, with the amount rising from approximately $6.9 million in 2023 to $490 million in 2024, $850 million in 2025 and $1.04 billion in 2026.

The city also allocated about $338 million from the same funding source to development investment in 2024 and approximately $152 million in 2025.

For rewards linked to revenue collected above targets and shared between the central and local budgets, Ho Chi Minh City recorded more than $6.66 billion in above-target revenue between 2007 and 2025.

The city requested rewards and targeted additional funding totaling more than $4.68 billion but received only around $1.42 billion from the central government, approximately $3.27 billion less than requested.

Under the proposed new spending rules, surplus salary reform funds remaining after sufficient resources have been secured for salary reform and social welfare could be used for development investment.

They could also finance income policies for public officials, civil servants, public employees and certain other groups working in the city under the Urban Development Law, as well as some social welfare policies falling within the city’s authority.

Additional city budget revenue could be directed toward development investment.

Rewards for exceeding revenue targets and targeted central government transfers could be used to support projects and infrastructure outside the city as well as regional connectivity and development projects under the Urban Development Law.

Targeted transfers from the central government could also be used to provide rewards to commune-level budgets.

The draft resolution contains four articles covering its scope, eligible groups, permitted uses of the funding sources, implementation and effective date.

The proposal has been circulated for consultation among city departments and agencies, the Ho Chi Minh City Committee of the Vietnam Fatherland Front and Ho Chi Minh City University of Law, and has undergone appraisal by the city’s Department of Justice.

No objections were recorded during the consultation process from July through mid-September 2026.

The Ho Chi Minh City People’s Committee said the resolution would not create new budget expenditures. Instead, it would establish a legal framework allowing the city to make more flexible use of existing resources to meet responsibilities arising from the Urban Development Law.

Those responsibilities include policies aimed at attracting and retaining public-sector talent and limiting the loss of skilled employees from government agencies.

Phuoc Sang