Urban Development Law: Flexible planning opens up development space for special economic zones

Planning regulations for special economic zones are designed to ensure consistency with the overall planning system while providing greater flexibility to meet the socio-economic development requirements of the country and each special economic zone.

Under Article 45 of the Urban Development Law (UDL), a master plan for a special economic zone is drawn up for the entire zone and carries the same legal validity as the relevant master and zoning plans it replaces. Detailed plans, meanwhile, are prepared for individual areas to give effect to the master plan.

Master plan covers entire special economic zone

An overview of Amata Industrial Park (IP) in Long Binh ward, Dong Nai City.

Under Clause 1, Article 45, the master plan for a special economic zone is formulated for the special economic zone, on the basis of integrating the contents of the master plan for an economic zone, where applicable, the master plans for communes, urban areas and equivalent areas, and special zones that are urban areas, in accordance with the law on urban and rural planning. The master plan is also based on the development orientations, viewpoints, vision and socio-economic development objectives of the special economic zones.

This provision makes clear that the master plan for a special economic zone cannot be developed in isolation from the existing planning system, but must incorporate relevant planning content. At the same time, the special economic zone’s development orientations, viewpoints, vision and socio-economic development objectives form the basis for drawing up the plan.

Notably, the master plan covers the entire area of the special economic zone, giving concrete form to national, regional and provincial planning while replacing the relevant master and zoning plans and having the same legal validity as those plans.

Preparing a master plan for the entire special economic zone provides a basis for consistent spatial organization across the zone, rather than having different areas managed under multiple relevant plans.

Electronic chip production for export at Tripod Vietnam (Bien Hoa) Electronic Co., Ltd. in Bien Hoa 2 IP.

Another provision under Point c, Clause 1, Article 45 allows the master plan for a special economic zone to be formulated, approved or adjusted differently from the provincial plan in order to meet the socio-economic development requirements of the country and the special economic zone.

Once the master plan for the special economic zone is approved, the provincial plan and the city master plan will be adjusted accordingly. This reflects the relationship between the special economic zone’s master plan and higher-level and related plans, while giving the zone greater flexibility to address its specific development requirements.

Article 45 defines not only the scope, contents and legal validity of the master plan for a special economic zone, but also the responsibilities for its formulation, appraisal, approval, publication and adjustment.

The People’s Committee of the special economic zone is responsible for organizing the formulation, appraisal, approval, publication and adjustment of the zone’s master plan. These tasks must comply with the procedures, requirements and cost norms prescribed by the provincial-level People’s Committee.

If the special economic zone is located within a city, the provisions of Point a, Clause 2, Article 10 of the UDL shall apply.

Detailed plans give concrete form to the master plan

Tran Bien ward, Dong Nai City focuses on developing a modern and harmonious urban area. Photo: Cong Nghia

In addition to the master plan, Article 45 provides for detailed plans to be prepared for individual areas within a special economic zone. These plans are formulated to give concrete form to the contents of the zone’s master plan.

The contents of detailed plans for special economic zones must comply with the law on urban and rural planning. The People’s Committee of the zone is responsible for organizing their formulation, appraisal, approval, publication and adjustment in accordance with procedures prescribed by the provincial-level People’s Committee.

Article 45 also sets out how the formulation of master and detailed plans is to be coordinated. Accordingly, detailed plans within a special economic zone are to be prepared concurrently with the zone’s master plan.

If a detailed plan has been formulated and appraised before the master plan is completed, it may be approved first. However, if the approved detailed plan is inconsistent with the master plan for the special economic zone, it must be adjusted to ensure consistency with the approved master plan.

This provision establishes the relationship between the two levels of planning. The master plan provides overall direction for the entire special economic zone, while detailed plans cover individual areas and must give concrete form to the contents of the master plan.

Article 45 therefore allows a detailed plan that has already been formulated and appraised to be approved before the master plan, helping avoid delays in the planning process. However, it must subsequently be adjusted if it is found to be inconsistent with the approved master plan.

An overview of Minh Hung IP in Minh Hung ward, one of the industrial parks in northern Dong Nai. Photo: Phu Quy

Another notable point is that separate planning tasks do not have to be formulated, appraised or approved for either the master plan of a special economic zone or its detailed plans.

The provision applies to both the master plan and the detailed plan, thereby clearly defining the planning process within the special economic zone under Article 45.

Taken together, Article 45 establishes a two-tier planning mechanism for special economic zones, comprising a master plan for the entire zone and detailed plans for individual areas. The master plan integrates relevant planning requirements and provides the overall framework for development, while having the same legal validity as the relevant master and zoning plans it replaces.

Detailed plans, meanwhile, translate the master plan into specific development requirements for individual areas. While the two types of plans are generally prepared concurrently, a detailed plan that has already been formulated and appraised may be approved first, subject to subsequent adjustment if it is inconsistent with the approved master plan.

Notably, the regulations place the People’s Committee of the special economic zone in charge of formulating, appraising, approving, publishing and adjusting both master and detailed plans in accordance with procedures prescribed by the provincial-level People’s Committee.

Overall, Article 45 of the UDL clearly defines the scope, relationship and legal validity of the different planning instruments applicable to special economic zones. It also specifies the responsibilities of the relevant authorities and establishes the principle that detailed plans must remain consistent with the master plan.

By H.Thanh – Translated by M.Nguyet, Thu Ha