Hopes for a boost from Urban Development Law

As Vietnam is entering a new phase of development focused on rapid and sustainable growth, digital and green economic development, and innovation, building modern and smart cities to attract international investment has become an urgent priority.

On August 7, the Government submitted the draft Urban Development Law to the National Assembly (NA). The bill is intended to establish a stable, comprehensive and breakthrough legal framework for urban development.

The traffic camera monitoring system at the Dong Nai City Intelligent Operations Center in Tran Bien ward.

A new legal framework

The latest draft comprises five chapters and 68 articles. It sets out mechanisms and policies to promote the development of special cities and special economic zones. Ho Chi Minh City and other cities recognized as special cities would be eligible for applying these mechanisms and policies. Hanoi City would continue to be governed by the Law on the Capital, while the decision on whether to apply provisions of the draft law would rest with the Hanoi People's Council.

Under the draft law, a special city is defined as an internationally oriented urban area with global competitiveness, developed under a polycentric, multi-centered model with smart and modern infrastructure and governance. It would serve as a center for coordinating governance, a major hub for innovation and an important driver of national integration. Special cities are expected to take the lead in institutional development, governance standards and new growth models driven by science and technology, innovation, digital transformation, higher labor productivity and stronger competitiveness.

Speaking at a group discussion on the draft Urban Development Law during the first extraordinary session of the 16th NA on August 7, NA Deputy Dieu Huynh Sang, Deputy Head of Dong Nai Delegation of NA Deputies, said the draft law was designed to remove bottlenecks in infrastructure, resources and decentralized urban management. The bill also marks the first time the NA has considered a specialized law providing comprehensive regulations on urban management and development.

Expanding development space

The draft Urban Development Law is expected to establish a new legal framework for tapping into the potential and advantages of strategically located areas, creating new growth drivers and attracting high-quality investment. It would also provide a legal basis for developing sectors with strong growth potential, including international financial centers, logistics, the marine economy, education, healthcare and tourism, while attracting strategic investors and developing a highly skilled workforce.

Under the draft Urban Development Law, a special urban region is defined as an area where socio-economic development is closely linked, comprising a special city and adjacent provincial-level administrative units sharing a common boundary with the city.

Speaking at the group discussion on the draft law, NA Deputy Le Nu Thuy Duong of the Dong Nai delegation proposed maintaining several categories of projects that directly support sustainable urban development, address infrastructure bottlenecks, ensure social welfare and improve residents' quality of life. She particularly highlighted the urgent need to develop social and rental housing, resettlement infrastructure and projects to renovate deteriorating urban areas. Such projects are often large-scale, involve multiple sectors and levels of government, require the mobilization of social resources and need to be implemented within appropriate timeframes.

Duong also proposed adding high-tech projects covered by the Law on High Technologies to the list of projects eligible for priority investment by strategic investors, particularly those that contribute to the development of high-tech supply chains and value chains. Such an addition would help attract investors with the capacity to take a leading role in promoting technology transfer, research and development, and innovation. It would also help build a high-tech industrial ecosystem and enhance the ability of domestic businesses to participate in global value chains. This direction is in line with efforts to transform the growth model and improve productivity, quality and economic competitiveness in the new development period.

Many experts believe that flexible and special mechanisms for urban development could open up new space for growth. With greater flexibility, stronger autonomy and prioritized resources, cities and special urban areas would be better positioned to formulate policies, mobilize investment and implement sustainable development programs proactively. For Dong Nai, the new mechanisms could provide a stronger foundation for developing a digital technology workforce and promoting innovation, thereby supporting high-tech development and the city's socio-economic development goals.

Assoc. Prof. Dr. Tu Diep Cong Thanh, Director of the Intellectual Property and Technology Transfer Center (IPTC) at Vietnam National University Ho Chi Minh City, said Dong Nai's important strategic role and position, particularly following its designation as the country's seventh city, would give it a greater prominence in the national science and technology development strategy. This would not only help attract high-quality resources but also enhance the value and standing of research, innovation and technology transfer activities in the city.

Nguyen Van Binh, a resident of Tran Bien ward, said he expected the Urban Development Law, once adopted, would contribute to providing an important legal framework for developing major cities and urban areas, including Dong Nai, in a modern and sustainable direction. He also hoped the law would help expand public amenities, particularly digital and smart services, while promoting the development of green, civilized and sustainable urban spaces.

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