New Urban Development Law gives Ho Chi Minh City greater room to grow

The Urban Development Law recently passed by the National Assembly significantly enhances Ho Chi Minh City's autonomy and resources. The city will gain more control over organizational structure, planning, and urban governance. Notably, the city can independently decide on increasing civil servants and public employees by up to 20%, and can establish policies for TOD areas, railway-related development, and land-use quotas.

The law also grants the city the authority to pilot innovative policies for up to five years, deviating from existing laws or National Assembly resolutions. Economically, Ho Chi Minh City will have new tools like creating free trade zones, issuing municipal and project bonds, and developing science, technology, and innovation-oriented urban areas.

The city will also receive new revenue sources and have greater control over land use within its jurisdiction, excluding land used for national defense and security. HCMC will serve as the coordinating hub for the special urban region and the Southeast region, promoting regional connectivity, environmental protection, and climate change response.

While the law provides strong institutional tools, the real challenge lies in effective implementation. The municipal authorities have outlined three key task groups - disseminating and popularizing the law, drafting legal documents, and carrying out the new powers. With approximately 168 documents to be prepared, a "30-day-and-night" campaign is underway to ensure the mechanisms are ready by the law's effective date, preventing delays where the law awaits the required measures.

Decentralization must be paired with oversight for accountability, and officials should be encouraged to be proactive, dynamic, and innovative for the greater good.