Resolution of the National Assembly on Piloting Certain Special and Exceptional Mechanisms and Policies for the Development of the Urban Railway Network in Hanoi and Ho Chi Minh City
- Virtus Prosperity
- Mar 4
- 4 min read
The Resolution on Piloting Certain Special and Exceptional Mechanisms and Policies for the Development of the Urban Railway Network in Hanoi and Ho Chi Minh City was passed by the National Assembly on the morning of February 19, 2025, with 100% of deputies in favor.
Accordingly, the resolution introduces six key special and exceptional policy groups aimed at developing the urban railway system in Hanoi and Ho Chi Minh City, including:
(i) mobilization of capital;
(ii) procedures for investment implementation;
(iii) urban development based on the TOD (Transit-Oriented Development) model;
(iv) development of the railway industry, technology transfer, and human resource training;
(v) policies on construction materials and waste disposal sites;
(vi) specific regulations applicable to Ho Chi Minh City.
Regarding Capital Mobilization:
For the periods 2026-2030 and 2031-2035, the central government budget will allocate additional targeted funding to local budgets, with a maximum limit of:
VND 215.350 trillion (approximately USD 8.61 billion) for Hanoi
VND 209.500 trillion (approximately USD 8.38 billion) for Ho Chi Minh City
The City People's Council is responsible for balancing and allocating medium-term and annual public investment plans as a basis for investment decisions and project implementation under this resolution. The funding sources include:
Local budget allocations in medium-term and annual plans;
Revenue increases and expenditure savings not subject to priority order as per the state budget law;
Other lawful capital sources (such as Official Development Assistance (ODA), concessional foreign loans, and international grants).
Regarding Policies on Investment Procedures:
The resolution also covers the formulation, appraisal, approval of investment policies, and investment decisions for urban railway projects and TOD-based urban railway projects.
The TOD model (Transit-Oriented Development) is a planning and investment solution for urban renovation, redevelopment, and development. It focuses on urban railway transit hubs as central points for residential concentration, commercial services, and office spaces within a walkable distance to public transportation.
Key Objectives of TOD: Enhancing land-use efficiency and optimizing public infrastructure.
Improving public health by promoting walkability and reducing reliance on personal motor vehicles. Reducing traffic congestion and lowering emissions that cause environmental pollution. Integrating cultural preservation while fostering sustainable urban growth. An urban railway project under the TOD model refers to an investment project that combines urban railway development with urban expansion and enhancement within the TOD zones.
The City People's Committee (UBND) is authorized to formulate, appraise, approve investment decisions, and adjust urban railway projects, including TOD-based urban railway projects, without the need to prepare, appraise, approve, or adjust land-use planning and plans as required by relevant laws.
The City People's Committee is also empowered to:
Decide on the division of projects into component projects or sub-projects when making investment decisions, in accordance with construction laws.
Extend project implementation timelines without requiring project adjustments, as long as the total investment capital remains unchanged.
Urban railway projects will adopt Front-End Engineering Design (FEED) as a substitute for basic design in the Feasibility Study Report.
EPC (Engineering – Procurement – Construction) contractor selection will be based on the approved investment project, with the investor authorized to approve subsequent design stages after FEED.
This resolution takes effect immediately upon approval, except for certain provisions that will take effect from May 1, 2025, and remains in force until the completion of projects listed in the Appendix attached to the resolution.
Urban Railway Network Development Plan
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