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Hanoi's new Capital Law grants sweeping powers for urban growth

Hanoi's bold legal overhaul shifts power to local leaders—will it transform the city's future? Stricter land controls and faster project approvals take effect soon.

The image shows an old map of the city of Law, with text written on it. The map is detailed,...
The image shows an old map of the city of Law, with text written on it. The map is detailed, showing the streets, buildings, and other landmarks of the area. The text on the map is likely a description of the map, providing further information about the city.

Hanoi's new Capital Law grants sweeping powers for urban growth

The revised Capital Law was passed on April 23. The law takes effect on July 1. It retains its nine-chapter, 36-article structure, with 26 articles revised, and grants the city government 199 special powers, providing a comprehensive legal basis to unlock its potential, position, and creativity under the motto 'Localities decide, do, and take responsibility.'

The revised law's regulations on specific policies are reviewed and improved in a controlled and practical direction, focusing on clarifying the authority of the city government in planning, managing development space and requiring coordination with ministries to ensure strict control.

In the health sector, the new version clearly stipulates the responsibilities of medical facilities in the area in participating in supporting the capital's health system, especially in outpatient emergency and coordinating healthcare.

It empowers municipal people's councils to approve special policies for major projects, subject to competent authority consent and consultation with ministries, and to extend by up to six months the deadline for meeting construction-start conditions for projects under Resolution No.258 of the National Assembly.

Regarding budget, and tax incentives, the revised law inherits current regulations, not issuing tax incentive policies beyond the general legal framework, ensuring the consistency of the legal system and the leading role of the central budget.

At the same time, the revision selectively supplements the beneficiaries of incentives and support to encourage priority areas, and supplement flexible mechanisms in budget management to meet economic needs.

The revision affirms the central and leading role of the capital; designs the concept of a 'Capital Region' in an open and flexible direction; and creates a mechanism for localities to participate in linking the provisions of the Capital Law when implementing joint projects.

It simultaneously allows the use of local budgets for inter-regional investment to solve infrastructure, environment, and essential services for the common good.

The new version also stipulates the principle of excluding and waiving legal liability for cases of exercising authority, procedures, and not for personal gain.

The revision clarifies this is not the sole condition, but part of a broader framework of power control, supervision, and accountability, while omitting the undefined 'professional standards' criterion to avoid application difficulties.

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