Law on Urban Development: What conditions must strategic investors in priority sectors meet from October 1?

In addition to identifying sectors and projects prioritized for investment, the Urban Development Law establishes a set of criteria for screening strategic investors, including investment-scale requirements, equity ratios, and commitments to human resource development, national defense, security, and environmental protection. Covering advanced technology, semiconductors, infrastructure, logistics, free trade zones, healthcare, environmental projects, and large-scale urban development, the priority list directs capital flows toward sectors capable of generating spillover effects across economic and urban spaces.

Under Clause 1, Article 36 of the 2026 Urban Development Law, the priority list for attracting strategic investors covers various groups of large-scale projects that play a vital role in economic, infrastructure, and urban sectors.

Capital flows directed towards priority sectors

A view of Amata Industrial Park in Long Binh Ward, Dong Nai City. Photo: Ngoc Lien

In science, technology, and innovation, the list includes investment in the construction of innovation centers and research and development centers, as well as investment in research and support for the transfer of high technology in information technology, green technology, biotechnology, automation, new materials, and clean energy, with an investment scale of 3 trillion VND or more.

Notably, projects involving semiconductor integrated circuit technology, technologies for the design and manufacture of electronic components, integrated microchips, flexible electronics, new chip technology, new materials, and clean energy technology must have an investment scale of 30 trillion VND or more.

The list also covers large-scale projects in tourism, services, and economic spaces. These include projects to construct and operate integrated resort and entertainment complexes, which must feature tourist accommodation meeting at least 5-star standards, high-end resort services, and at least one of the following: integrated shopping and entertainment services, specialized healthcare, or transport infrastructure connecting areas along river corridors, coastal corridors, or islands to drive socio-economic development. Such projects must have an investment scale of 30 trillion VND or more.

In healthcare, social services, and sports, the list includes specialized healthcare facilities with an investment scale of 5 trillion VND or more; elderly care facilities with an investment scale of 2 trillion VND or more; and sports complexes, cultural parks, or themed parks with an investment scale of 6 trillion VND or more.

High-tech production at a Taiwanese enterprise in Giang Dien Industrial Park, Dong Nai City. Photo: Ngoc Lien

Another group directly related to improving the urban landscape comprises projects to renovate and relocate housing located on rivers, along riverbanks, on canals, or along canal banks, with an investment scale of 6 trillion VND or more.

For environmental and energy infrastructure, the list includes independent or combined projects involving public green parks, public parking lots, and clean energy infrastructure with an investment scale of 2 trillion VND or more; waste-to-energy incineration plants with an investment scale of 2 trillion VND or more; and projects to construct technical infrastructure systems and drainage works with an investment scale of 3 trillion VND or more.

Notably, projects to treat and convert decommissioned landfills for socio-economic development are included on the list, with an investment scale of 10 trillion VND or more. In addition to the investment-scale requirements, this group of projects is subject to specific conditions stipulated in Clause 2, Article 36.

The list also includes projects located in key urban development zones as defined in the city's master plan, with an investment scale of 50 trillion VND or more.

Strict conditions imposed on strategic investors

Cargo and container handling operations at Phuoc An Port in Dong Nai City.

A key provision of Article 36 is that the law identifies priority projects and sets specific conditions for strategic investors.

Under Clause 2, Article 36, a strategic investor is an investor who is selected to implement a project on the priority list for attracting strategic investors and who meets the conditions prescribed by law.

Regarding financial capacity, investors must contribute equity equal to at least 20% of the total investment for projects with a capital scale of under 30 trillion VND and at least 15% of the total investment for projects with a capital scale of 30 trillion VND or more.

Where multiple investors participate in a single project, the total equity contributed to the project must meet the requirements specified in either Point a or Point b of this clause. Specifically, at least one investor must contribute at least 30% of the total equity contribution, while each of the remaining investors must contribute at least 15%.

Production operations at an enterprise in Dong Nai City. Photo: Huong Giang

For projects comprising multiple component projects or investment phases, excluding commercial housing projects, the minimum equity contributed to the project is determined for each component project or investment phase. However, it must not be lower than 30% of the total minimum equity required for each component project or investment phase and must comply with Clause 8, Article 36.

In addition to meeting financial capacity requirements, strategic investors must provide written commitments on training and human resource development and satisfy conditions to ensure national defense, security, and environmental protection as prescribed.

Specifically, for projects involving the treatment and conversion of decommissioned landfills for socio-economic development purposes as stipulated at Point i, Clause 1, Article 36, investors must commit to thoroughly addressing soil and groundwater pollution before changing the land-use purpose of the site. They must also continue to monitor and control environmental impacts in the area of the treated and renovated landfill during project implementation to prevent environmental pollution risks.

In addition to the aforementioned project groups, Clause 1, Article 36 places infrastructure construction projects in free trade zones on the priority list for attracting strategic investors. These include port investments with an investment scale of 75 trillion VND or more; integrated logistics zones with an investment scale of 25 trillion VND or more; and industrial, urban, and service functional zones with an investment scale of 20 trillion VND or more.

Investment projects in the service and commercial sectors stipulated in Article 20 of this law, with an investment scale of 10 trillion VND or more, are also included in the list.

In special zones, the law identifies priority projects, including the upgrading and expansion of airports with an investment scale of 10 trillion VND or more; the conservation, restoration, and promotion of the value of special national historical relic sites with an investment scale of 800 billion VND or more; passenger and cargo terminals with an investment scale of 2 trillion VND or more; and transport works combined with commercial and service facilities with an investment scale of 3 trillion VND or more. Sea-encroachment urban development projects that meet criteria set by the Government are also included in the list.

Overall, Article 36 establishes a fairly broad priority list, focusing on large-scale projects linked to technology, infrastructure, the environment, services, logistics, free trade zones, special zones, and key urban areas. At the same time, requirements concerning equity, human resources, national defense, security, and the environment are mandatory conditions for strategic investors.

The mechanism for attracting strategic investors is therefore built on two foundations: clearly identifying priority sectors and projects and screening investors through specific conditions concerning financial capacity, human resource commitments, and responsibilities for the environment, national defense, and security.

On August 24, at its first extraordinary session, the 16th National Assembly voted to pass the Urban Development Law. The law consists of five chapters and 66 articles and will take effect on October 1, 2026. Under the regulations, the priority list for attracting strategic investors in the 2026 Urban Development Law will apply from the date the law takes effect.

By Hai Thanh – Translated by Minh Hong, Minho