National Assembly delegates attending the session
On the morning of December 11, the National Assembly adopted a Resolution amending and supplementing certain articles of Resolution 98/2023/QH15 on piloting special mechanisms and policies for the development of Ho Chi Minh City (HCMC), with 433 out of 438 present delegates in favor.
Enhancing Autonomy and Resource Generation for TOD Development
A notable new point is that the Resolution allows HCMC to retain 100% of the revenue from land exploitation in Transit-Oriented Development (TOD) areas, which will be fully utilized for TOD projects, including urban rail projects and other transportation initiatives.
This mechanism applies to areas adjacent to railway stations, train maintenance and repair yards, and regions near traffic intersections along the Ring Road 3.
HCMC is permitted to use its local budget to implement independent investment projects for compensation, support, and resettlement related to transportation, urban renewal, and development projects.
The approved city master plan will serve as the legal basis for implementing detailed urban and rural planning. The HCMC government is authorized to adjust construction planning, if necessary, to serve community interests and ensure infrastructure system coherence. Construction in TOD areas must meet technical infrastructure, social infrastructure, and environmental safety requirements for residential areas.
Establishing a Free Trade Zone with Exceptional Incentives
According to the Resolution, the Free Trade Zone is a geographically defined area established to pilot special mechanisms and policies with legal superiority. Its main functions include production zones, ports and port logistics, logistics centers, and trade-service areas. The Free Trade Zone will be linked to Cat Lai Port and Cai Mep Ha Port.
Infrastructure construction and business projects in the Free Trade Zone are exempt from corporate income tax for 4 years and receive a 50% reduction in taxable income for the subsequent 9 years. For manufacturing projects, corporate income tax is reduced by 50% for the first 9 years, exempt for 4 years, and reduced by 50% for the following 9 years.
Imported and exported goods within the Free Trade Zone are exempt from specialized inspections if they meet international management standards and are not subject to foreign trade management measures or quarantine procedures.
For strategic investment projects, the time for approving investment policies and issuing Investment Registration Certificates is reduced to no more than 7 working days from the date of receiving complete and valid documents.
Notably, a special foreign exchange management policy will be applied, facilitating transactions for foreign-invested enterprises and import-export businesses, enhancing the attractiveness of the Free Trade Zone.
Priority investment sectors include high technology, smart manufacturing, financial centers, and large-scale trade services. The minimum capital requirement for strategic investors in each sector is clearly defined, for example, infrastructure construction and business projects in the Free Trade Zone’s functional areas require a capital scale of at least VND 30,000 billion.
HCMC has the autonomy to select strategic investors based on principles of transparency and criteria such as capital, experience, and technology commitments.
Earlier, presenting the absorption and explanation report, Minister of Finance Nguyen Van Thang stated that for TODs, the draft Resolution stipulates that these projects must ensure compliance with technical infrastructure systems, social infrastructure, and environmental safety regulations for residential areas as prescribed by law.
Regarding the designation of principles for the list of strategic investors, the Government proposes specific regulations in the draft Resolution to ensure immediate implementation upon its adoption, meeting the city’s urgent investment attraction needs.
For projects arising during the implementation of the current Resolution 98, the authority to adjust and supplement the list has been delegated to the City People’s Council, which must report to the Government and the National Assembly Standing Committee at the nearest session.
Concerning planning, the Government has absorbed opinions and supplemented regulations that only one comprehensive city plan will be established for the entire city, with the authority to approve planning adjustments delegated to the City People’s Committee.
Regarding the application of special investment procedures, HCMC is positioning itself as a megacity and a leading financial and economic hub in Vietnam. Therefore, the city needs to affirm its commitment to investors by simplifying investment procedures to strongly attract international capital and compete with other regional countries.
Implementing special investment procedures realizes the spirit of Resolution No. 66 of the Politburo on maximum decentralization, following the principle of “localities decide, localities act, localities take responsibility,” creating new development momentum for HCMC to achieve double-digit growth in the coming period.
For the Free Trade Zone, the policies within it have been designed to be exceptional and breakthrough to attract investment, ensuring consistency among free trade zones in HCMC, Da Nang, and Hai Phong, fostering growth linkages and contributing to the country’s overall development goals.
Regarding the addition of railway lines connecting to Long Thanh International Airport, the Government will consider, adjust, and supplement these lines in Resolution 188 of the National Assembly on piloting special mechanisms and policies for developing the urban railway network, ensuring synchronized implementation with the same policy standards and relevant legal regulations.
Revolutionizing Tax Management: Vietnam’s National Assembly Approves Amended Tax Administration Law with Automated Refunds, Exemptions, and Reductions
Continuing the agenda of the 10th Session of the 15th National Assembly, on the morning of December 10th, with 437 out of 448 attending delegates voting in favor, accounting for 92.39%, the National Assembly officially adopted the amended Tax Administration Law.
No Additional 100% Salary Increase Policy for Tax Officials
The government has withdrawn the income policy for tax officials from the draft amended Tax Administration Law, following feedback from relevant authorities.
Da Nang Granted Special Free Trade Zone Mechanisms to Boost TOD Development
On the morning of December 11th, the National Assembly adopted a Resolution amending and supplementing certain provisions of Resolution No. 136/2024/QH15 on piloting special mechanisms and policies for the development of Da Nang City. The resolution was approved with an overwhelming majority, as 442 out of 443 participating delegates voted in favor.
Good News for 2.3 Million Individuals and Household Businesses: National Assembly Finalizes Tax Exemption Threshold at VND 500 Million/Year
With an overwhelming majority of 438 out of 443 votes, accounting for 92.60%, the National Assembly has officially adopted the amended Law on Personal Income Tax. This revised law comprises 4 chapters and 30 articles, marking a significant update to the country’s tax regulations.
Effective July 1, 2026: Civil Servants Permitted to Take on Side Jobs and Invest in Business Ventures
The revised Civil Servant Law now permits civil servants to invest, manage, and operate businesses, cooperatives, hospitals, educational institutions, and more.
