The National Assembly's passage of the Urban Development Law, which takes effect on October 1, 2026, opens up new development space for Ho Chi Minh City by introducing special mechanisms, expanding decentralization and giving the city greater autonomy to mobilize and allocate resources and remove bottlenecks.
The 5-chapter, 66-article law adds a range of special and preferential mechanisms, expands decentralization and grants greater autonomy, enabling the city to proactively mobilize and allocate resources and address development bottlenecks. It can be viewed as an important “institutional launchpad” for HCMC to make a breakthrough in the new era and further strengthen its role as the country's economic engine.
One of the law's notable features is the additional authority granted to Ho Chi Minh City in organizational structure, planning and urban governance. The city may independently decide to increase the total number of civil servant and public employee positions by no more than 20 percent compared with the number assigned by the central government, as well as decide on certain personnel and income policies.
In legally designated areas, the city may issue regulations tailored to local conditions. It is also authorized to pilot new policies that diverge from existing laws or National Assembly resolutions for a period of up to five years, subject to approval from the competent authority.
In planning, the city will formulate a single master plan and have greater autonomy over underground, low-rise and high-rise spaces. The city may establish policies for urban development in transit-oriented development (TOD) areas; proactively formulate, appraise, approve and adjust plans for routes, structures and locations of structures along local railway lines; and transfer planned land-use quotas within TOD areas.
These are important tools for linking transportation development with urban development while making more effective use of land value. The law also allows the city to proactively designate investors for social housing and housing projects for workers on State-managed land, thereby facilitating faster implementation of projects serving social welfare needs.
Ho Chi Minh City's development space will also expand economically. The city may decide to establish and adjust the boundaries of free-trade zones linked to international seaports, issue municipal and project bonds, develop mechanisms for science - technology and innovation-oriented urban areas, and establish sandboxes for artificial intelligence, big data and new digital business models.
The city will also receive certain new revenue sources as prescribed by law and may proactively decide on land-use quotas within its jurisdiction, except for land used for national defense and security. The city may use its local budget to carry out independent site clearance before approving the investment policy for the main project.
If implemented effectively, these mechanisms will help shorten investment preparation times, unlock land and financial resources, and create better conditions for implementing key projects. The law also establishes HCMC as the coordinating hub for the special urban region and the Southeast region, providing a legal basis for promoting regional connectivity, protecting the environment and responding to climate change.
Institutions only become a driving force when translated into action. Immediately after the National Assembly passed the law, the HCMC Party Committee issued a directive calling for its timely, coordinated, substantive and effective implementation.
The municipal People's Committee has identified three key groups of tasks including disseminating and popularizing the law, drafting and issuing legal normative documents and implementing the new powers.
The workload is substantial, with 168 documents to be prepared, including 117 resolutions of the People's Council, 48 decisions of the People's Committee and three decisions of the city's People's Committee Chairman.
The resulting “30-day-and-night” campaign is therefore not intended to create achievements for their own sake, but to ensure that when the law takes effect, the mechanisms needed to implement it will also be ready, preventing a situation in which “the law waits for the mechanisms.”
Along with completing the system of legal documents, the city needs to make a strong shift from a mindset of pre-inspection to one focused on enabling development and post-inspection. Decentralization must be accompanied by power oversight and accountability, while officials should be encouraged to be dynamic and innovative and to have the courage to think and act for the common good.
The National Assembly has given Ho Chi Minh City stronger institutional tools. The remaining question is how these mechanisms will be implemented so that the new policies truly become part of everyday life.
If implemented decisively, consistently, transparently and effectively, the Urban Development Law will help the city unlock resources, expand its growth space, pursue its goal of double-digit growth and further affirm its role as the country's economic engine.
