70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Sep 06, 2023 / 15:46

Amended Capital Law: Efficient resource mobilization needed

Legal experts said the law should be more specific in areas that are unclear to ensure transparency in mobilizing financial resources.

How can Hanoi strengthen its ability to manage its finances and budget while attracting investment capital to develop the capital?

It’s a question raised during the drafting of the revised Capital Law. The law has a chapter on finance and resources for the capital city’s development.

The Hanoi Times has an interview with some experts on the issue. 

 Paying tax at Thanh Xuan District, Hanoi. Photo: Thai San/The Hanoi Times

Associate Prof. Bui Huu Duc, Chairman of the School Council of Thuongmai University, Hanoi: Establish a system that allows the capital to have resources for investment and development.

 

I supported allowing Hanoi to keep more of the revenues it collects for its development.

 

Specifically, in Article 37 of the revised Capital Law, Hanoi is allowed to keep all money it collects from its land rent to invest in infrastructure and major projects, transit-oriented development (TOD) under the public-private partnership (PPP) while relocating agencies and institutions out of the central areas.

 

It's obvious that this way, Hanoi will have resources for investment. The Capital Law would regulate specific contents that align with the Law on State Budget, regulating the city's development.

 

The Capital Law is a piece of legislation that governs Hanoi. In addition, if there is a conflict regarding Hanoi's budget, the Capital Law would take precedence over the State Budget Law. In this direction, it will be possible to guarantee that the provisions of the Capital Law on the mobilization of financial resources are in line with the current Law on State Budget.

 

Dr Tran Vu Hai, Hanoi Law University: The need for non-budgeted funds.

 

The extra-budgetary funds are proposed to include the Heritage Conservation and Cultural Development Fund, the Fund for Preservation and Reconstruction of Hanoi's Historic Inner Parts, and the Scholarships for Talented Students in the capital.

 

It's necessary to explain the necessity of the funds for the capital, unlike other localities, and by the provisions of relevant laws, specifically the Law on State Budget.

 

Associate Prof. Pham Thi Giang Thu, Hanoi Law University: Hanoi positions itself for development.

 

As a center given space for growth, Hanoi must determine its place in the development roadmap, the overall economic context of the nation, the global context, and new requirements to carry out the task of socioeconomic development.

 

Given the transparency requirements in its operations, it's necessary to calculate the budget under the Law on State Budget, as it is the contributions of individuals and organizations in the city.

 

The requirement for transparency and oversight during the implementation process is necessary and fosters trust for the subjects as it assumes that private financial resources are mobilized and spent under the Capital Law, building trust for financial contributors as their resources are effectively used.

 

Dr. Nguyen Thi Yen, Hanoi Law University: Complete regulations on strategic investors.

 

Numerous new provisions have been added to the law, including those governing strategic investors in the capital. The regulations on strategic investors cover a wide range of topics, including project lists and industries subject to them, requirements they must meet, incentives they can enjoy, and the order and methods for choosing them.

 

The majority of these regulations comply with the requirements, but the draft law needs to be improved in areas where they are missing or unclear.