Elevate Ho Chi Minh City with Superior Policy Enhancements

On the evening of November 24th, the National Assembly (NA) Standing Committee listened to Minister of Finance Nguyen Van Thang present the draft Resolution of the NA amending and supplementing certain provisions of Resolution 98/2023 on piloting special mechanisms and policies for Ho Chi Minh City’s development.

Legal Framework for Free Trade Zones

Regarding policies for Transit-Oriented Development (TOD) urban models, besides the existing mechanism for auctioning TOD land funds, the draft adds provisions allowing the use of these land funds to pay for Build-Transfer (BT) railway projects.

For local railway projects under the TOD model using the city’s entire budget or investor capital for compensation and resettlement, HCMC retains 100% of the revenue from TOD land exploitation.

Regarding land recovery policies, the draft supplements cases for land recovery, including projects within free trade zones and those attracting strategic investors in areas with particularly difficult socio-economic conditions.

The draft resolution also adds 11 priority project groups to attract strategic investors, focusing on large-scale, leading projects in transportation infrastructure, urban infrastructure, clean energy, and logistics.

Notably, the draft establishes a comprehensive legal framework for free trade zones, covering location, functional area structure, management mechanisms, authority, and land policies. This creates a superior institutional space to attract high-quality investment, develop modern services, and foster innovation, positioning HCMC as a regional economic, financial, and trade hub.

Specifically, the draft grants the HCMC People’s Committee authority to establish, expand, and adjust free trade zone boundaries, while the HCMC People’s Council sets procedures. It allows land allocation and leasing without auctions for projects within the zone, except commercial housing. Foreign investors can establish economic organizations without investment projects or certificates. Additional benefits include tax incentives and permission for zone enterprises to list, price, and transact in foreign currencies.

Driving Breakthrough Development

Presenting the preliminary review report, Chairman of the Economic and Financial Committee Phan Van Mai stated the Committee agrees with the Government’s proposal to amend Resolution 98/2023. The adjustments align with the reorganization of local administrative machinery and governance, leveraging HCMC’s potential and advantages to achieve double-digit economic growth in 2026-2030.

NA Vice Chairman Nguyen Khac Dinh noted that new provisions already implemented elsewhere, such as free trade zone establishment, should apply similarly to HCMC. He emphasized legalizing content where possible and managing risks despite policy openness.

NA Chairman Tran Thanh Man stressed ensuring the resolution’s feasibility and timely addressing practical challenges. The resolution should outline general principles within the NA’s authority, with localities enhancing decentralization during implementation.

NA Vice Chairman Nguyen Duc Hai requested drafting and reviewing agencies refine the draft for NA approval at the 10th session.

HCMC People’s Committee Chairman Nguyen Van Duoc affirmed the city’s commitment to feedback and collaboration with ministries and NA bodies to finalize the draft.