Vietnam's Urban Development Law takes effect, giving Ho Chi Minh City more autonomy

The Law on Urban Development has been in force in Vietnam since 1 October. The National Assembly passed it on 24 August, with 465 of the 474 deputies present voting in favour. The law is aimed primarily at Ho Chi Minh City.

The main change is in the city's powers. Its People's Council and People's Committee can issue local legal documents that differ from central rules, and can pilot mechanisms that national law does not yet cover. To support this, the city adopted Resolution 39/2026, effective 6 September. It sets up a “sandbox”, a regime for trial economic policies, with success criteria and risk controls fixed before each pilot starts. The city plans 147 resolutions to implement the law, 125 of them legal documents, and 61 of those are needed immediately.

The law also gives a legal basis for transit-oriented development (TOD), which means dense residential, office and commercial projects next to metro and railway lines. The city budget may be used to pay for compensation, resettlement and land clearance in such zones.

Infrastructure can be financed through public-private partnerships and through municipal and project bonds, within public debt limits.

Clearer rules on planning, compensation and resettlement make it easier for companies to assess costs, timelines and legal risks, VIR notes.