Hanoi set for special measures to unlock mega projects

THE HANOI TIMES — Hanoi is authorized to approve projects without limits on capital scale or land area, including those normally under the authority of the National Assembly, the Government, or the prime minister.

Minister of Finance Nguyen Van Thang shared this information at a discussion on December 4 about the draft National Assembly Resolution on special mechanisms and policies for major projects in Hanoi.

The projects include public investment, public-private partnership (PPP) projects, and those that must commence immediately under the direction of the Politburo, the Party Secretariat, the Government Party Committee and the Hanoi Party Committee.

This group also covers projects that meet national importance criteria, projects funded by the city's budget and those to attract strategic investors with a total investment of at least VND30 trillion (US$1.2 billion). It includes the renovation of old apartment buildings and projects that aim to resolve congestion, flooding and environmental pollution.

Thang said the government proposes allowing the Hanoi People’s Council or the Chairman of the Hanoi People’s Committee to approve these projects instead of seeking approval from the National Assembly or the prime minister.

To shorten preparation time, some projects in this group, excluding apartment renovation and congestion or flooding projects, may select contractors or investors under special cases.

For projects that must proceed under high-level directives, the Ministry of Finance proposes allowing the Hanoi People’s Council to approve compensation, support and resettlement at twice the standard level. Projects may also conduct planning procedures and start construction at the same time as investment approval processes.

During the review, Chairman of the National Assembly’s Finance and Budget Committee Phan Van Mai agreed on the need to issue the resolution under a fast-track process “because it helps address institutional bottlenecks, mobilize resources and support rapid and sustainable development of the capital.”

However, the committee asked the government to reconsider several provisions in the draft that do not fall under the National Assembly’s authority, such as investor and contractor selection or allowing reconstruction and redevelopment projects to use build-transfer contracts.

Speaking at the session, Deputy State Auditor General Tran Minh Khuong said the proposal to set compensation and resettlement support at twice the standard rate lacks clarity.

He suggested setting compensation close to market value and using double the standard rate only for livelihood stabilization and vocational training support.

Regarding the fast-track process, he noted potential risks to construction quality and safety if projects break ground before required procedures are completed.

He recommended that technical designs and construction drawings should be approved before implementation.

Chairman of the National Assembly’s Legal and Judicial Affairs Committee Hoang Thanh Tung requested a thorough review to avoid overlap with the Capital Law, which already includes provisions on key projects.

He added that under the Capital Law, the Hanoi People’s Council may approve projects funded by the city budget. The draft resolution extends this authority to projects that use central budget funds. He raised concerns about the feasibility and the assurance of funding.

Responding to the comments, Minister of Finance Thang said the drafting team would revise the proposal so that the investment approval authority applies only to projects funded by the city budget.

On land acquisition, he said the draft would be adjusted so that the People’s Council approves each case individually based on directives from higher authorities to ensure consistency and control.

Chairman of the Hanoi People’s Committee Vu Dai Thang said the city and ministries had reviewed the proposal carefully based on real challenges in ongoing projects. “This resolution is something the city and ministries strongly hope to adopt, especially for key projects in the coming period.” 

He asked the National Assembly to approve the resolution so the city can promptly begin several important projects and implement the capital planning that supports long-term development.

“The city has already set a planning horizon of 100 years,” Thang noted.

In closing the session, Vice Chairman of the National Assembly Vu Hong Thanh said the Standing Committee appreciates the proactive and timely work of the involved agencies in reviewing the draft resolution. The review report was prepared carefully and includes many well-founded recommendations.

He affirmed that the Standing Committee agrees with the core content of the draft resolution. The draft meets the conditions to be added to the 2025 legislative program and submitted to the National Assembly for approval through a fast-track process during the ongoing 10th session.