Provincial Projects on the National Agenda
Over the last few weeks, the National Assembly (“NA”) has been discussing and voting on a series of provincial projects designed to improve the infrastructure of Vietnam, improve its competitiveness, and increase its attractiveness to foreign direct investment.
Revised Capital Law
Back in April, we covered a debate in the 31st session of the NA on the Draft Capital Law. According to Resolution No. 15-NQ/TW of the Politburo on 5 May 2023, Hanoi is aiming to be a global city with a unique culture and high living standards on a par with capital cities in developed countries across the world. The revised Draft Capital Law, discussed back in the Spring, also included provisions for the Capital Master Plan and proposed changes to the Capital General Master Plan.
The new law, set to enter into force on 1 January 2025, has now been adopted following a vote in the NA. It contains three more chapters and 27 more articles than the original legislation, passed in 2012, and aims to devolve more power to municipal authorities and remove institutional and administrative bottlenecks to enable the capital to realise its full potential. For instance, there will no longer be ward-level People’s Councils, while more than 80 new responsibilities have been assigned to the municipal People’s Council.
Meanwhile, the law includes specific provisions for the Hoa Lac Hi-Tech Park, granting investment projects the best-possible preferential support allowed in law so as to attract more tech companies and those engaged in science and R&D. One further notable change in the revised Capital Law is that Hanoi will soon be able to use state finances to pilot a venture capital fund to invest in start-up companies to promote innovation.
Da Nang Free Trade Zone
Late last month, the NA also passed a resolution to introduce a new urban model of administration and to pilot schemes to develop the central coastal region of Da Nang.
Long admired as a tech hub and tourist destination, following this new resolution, Da Nang will soon establish a new free trade zone to attract new investment, trade, tourism, and services.
Trade in goods between this free trade zone and mainland Vietnam will be considered as imports/exports. Therefore, the zone will be fenced off to ensure customs control at the border and state inspection. The zone is set to include logistics, commercial, and production areas and will be constructed together with Lien Chieu Seaport.
USD 1 billion approved for Southern Section of the North-South Road
Meanwhile, in the south of Vietnam, the NA approved a resolution on investment in the USD 1-billion, 128-km long section of the north-south road running from Dak Nong province in the central highlands to the southern metropolis of HCMC. With construction scheduled to start in 2026, the section of road should be finished in 2027 when it should help to improve connections between southern and central Vietnam.
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