DRAFT URBAN DEVELOPMENT LAW PROPOSES GREATER DECENTRALIZATION FOR SPECIAL-GRADE CITIES

Proposed Expansion of Authority for Special-Grade Cities

According to the draft, the proposed policies focus on two main objectives:

• Expanding decentralization in selected areas of urban governance for special-grade cities.
• Establishing policy mechanisms that support modern, flexible urban development aligned with practical needs.

A notable proposal would grant broader authority to local governments in issuing implementing regulations within the scope permitted by law, while simplifying certain administrative procedures to facilitate investment and improve services for residents and businesses.

The proposed decentralization framework is designed to operate alongside oversight, inspection, and accountability measures to ensure consistency within the national legal system.

Supporting Strategic Urban Development

The draft law is also expected to provide a legal foundation for developing strategic sectors tailored to the needs and development goals of major urban centers, including:

• International financial centers
• Free trade zones
• Integrated logistics hubs
• Marine economy
• Energy infrastructure and energy industries
• Education, healthcare, and tourism
• Attraction of strategic investors and development of high-quality human resources

These proposals remain under review and may be refined during the legislative process.

Emphasis on Accountability and Governance

In addition to expanding local authority, the draft places strong emphasis on governance, transparency, and accountability. Proposed mechanisms include enhanced supervision, inspection, monitoring, and reporting requirements to ensure that delegated powers are exercised effectively and responsibly.

During the review process, several opinions highlighted that greater decentralization should be accompanied by appropriate oversight mechanisms to promote transparency, operational efficiency, and balanced development across different localities.

Draft Law Continues to Be Refined

The National Assembly Standing Committee has generally agreed to continue refining the draft before it is submitted to the National Assembly for further consideration in accordance with the legislative agenda.

If adopted, the Urban Development Law is expected to strengthen the legal framework for urban governance, improve administrative efficiency, and support sustainable development and investment in Vietnam's special-grade cities.