Resolution No. 188/2025/QH15 on piloting certain special mechanisms and policies to develop urban railway systems in Hanoi and Ho Chi Minh City.

RESOLUTION

Pilot certain special mechanisms and policies to develop urban railway network systems

in Hanoi City and Ho Chi Minh Cityorganize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.||

OF THE NATIONAL ASSEMBLY

On the basis of the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on Legislative Regulatory Documents No. 80/2015/QH13, which has been amended and supplemented by some articles according to Law No. 63/2020/QH14; 

RESOLUTION: 

Article 1. Scope of Regulation

This Resolution stipulates pilot certain special mechanisms and policies to develop urban railway network systems in Hanoi City and Ho Chi Minh City (hereinafter referred to as the City).

Article 2. Applicability

1. State agencies, political organizations, and socio-political organizations.

2. Professional socio-political organizations, social organizations, and socio-professional organizations.

3. Domestic and foreign organizations and individuals related to the matter.

Article 3. Explanation of Terms

In this Resolution, the following terms shall be understood as follows:

1. Urban development oriented towards public transportation (hereinafter referred to as TOD) is a planning, investment, renovation, and development solution for cities, focusing on urban rail transit connection points as centers for residential and commercial services within walking distance to public transportation means, thereby enhancing land and public facility utilization efficiency, community health, reducing individual motor vehicles, decreasing pollution emissions, and preserving cultural values.

2. TOD area planning is specialized planning prioritizing public transportation usage for areas including urban rail stations or depots and adjacent regions for urban rail construction combined with city renovation and development.

3. Urban rail project under the TOD model is an urban rail investment project combined with urban development within the TOD area.

Article 4. On Mobilization and Allocation of Investment Capital

1. During the preparation and implementation of projects listed in the Appendix attached to this Resolution, the Prime Minister shall decide on the following matters:

a) Based on the ability to balance and allocate medium-term state budget plans, supplementary central government budget funds for local budgets not exceeding VND 215,350 billion (two hundred fifteen thousand three hundred fifty billion dong) for Hanoi City and not exceeding VND 209,500 billion (two hundred nine thousand five hundred billion dong) for Ho Chi Minh City during the medium-term investment plan periods from 2026 to 2030 and 2031 to 2035 as the basis for deciding and implementing investment projects.

The allocation of capital as provided herein shall be sourced from annual increased revenue and savings from the central government budget (if any) and other lawful sources; in cases where annual increased revenue and savings from the central government budget are utilized, there is no need to follow the priority sequence prescribed by laws on state budget management;

b) Mobilize Official Development Assistance (ODA) funds and preferential foreign loans to implement projects without having to propose projects using ODA and preferential foreign loans according to relevant laws; apply the provisions of foreign sponsors when Vietnamese laws have no such provisions or differ from those of foreign sponsors.

2. The People's Council of the City shall be responsible for balancing and allocating medium-term and annual state budget plans as the basis for deciding and implementing investment projects listed in the Appendix attached to this Resolution from the following sources:

a) Local budget in medium-term and annual periods including foreign loans from the Government for relending and local government bond funds;

b) Annual increased revenue and savings (if any) without needing to follow the priority sequence prescribed by laws on state budget management;

c) Other lawful sources.

3. Projects listed in the Appendix attached to this Resolution shall be allocated capital through medium-term investment plans, the amount of capital allocated each medium-term investment period shall be consistent with the progress of each project, and there shall be no limit on the portion of capital carried over from projects to the next medium-term investment plan period.

4. The People's Committee of the City may decide to allocate capital from the local budget in the medium-term investment plan and the annual investment plan before making an investment decision to implement certain activities serving urban rail projects and urban rail projects under the TOD model as follows:

a) Expenditure tasks of the project owner and project management unit; training human resources for state agencies, project management units, operation and maintenance units, training institutions, and research institutions;

b) Payment for consulting services;

c) Payment for planning activities related to the route scheme and location of works on the urban rail line and the TOD area planning;

d) Implementation of compensation, support, and resettlement;

đ) Implementation of communication work and other preparatory activities for the project.

5. To implement urban rail projects and urban rail projects under the TOD model, the People's Committee of the City may decide:

a) To use the annual local budget reserve;

b) To advance the budget estimate of the following year's local budget ensuring it does not exceed 50% of the basic construction investment expenditure budget estimate of construction works included in the approved medium-term local budget investment plan for the implementation year.

Article 5. On the procedures and formalities for investing in urban railway projects and urban railway projects under the TOD model

1. Urban railway projects and urban railway projects under the TOD model shall immediately carry out project establishment, review, and investment decision-making without having to go through the procedures for establishing, reviewing, and deciding on the investment orientation as prescribed by relevant laws and other related procedures.

2. The People's Committee of the City has the following authorities:

a) To organize the establishment, review, and investment decision-making for urban railway projects and urban railway projects under the TOD model according to the procedures and formalities similar to those for Group A projects managed by localities as prescribed by relevant laws;

b) To decide on dividing urban railway projects and urban railway projects under the TOD model into component projects or sub-projects when making the investment decision. The division of component projects or sub-projects does not have to comply with the provisions of construction-related laws;

c) To decide on extending the implementation time of urban railway projects and urban railway projects under the TOD model if it does not increase the total investment amount, thus not requiring adjustment procedures for the project;

d) To decide that railway infrastructure works (stations, intersections, bridges, and related components within urban railway projects) do not need to undergo architectural design competitions;

đ) To decide on applying direct award procedures for selecting consulting contractors, non-consulting contractors, construction contractors; EPC contractors, turnkey contractors; investors of urban railway projects and urban railway projects under the TOD model; the procedures for implementing such decisions shall be carried out in accordance with the relevant laws on bidding;

e) To separate compensation, support, and resettlement work into independent projects based on the route plan and location of the urban railway project approved by the competent authority or the TOD area planning approved by the competent authority. The establishment, review, and investment decision-making for compensation, support, and resettlement projects shall be carried out in accordance with the laws on public investment.

3. Urban railway projects and railway infrastructure works belonging to urban railway projects under the TOD model shall prepare a Front End Engineering Design (FEED) instead of a basic design in the feasibility study report; the selection of EPC contractors shall be based on the approved investment project; the investor may decide on the approval of subsequent design stages after the FEED design.

4. The preparation of the total investment estimate and tender package budget is regulated as follows:

a) For items of work that exist but are not suitable or are not included in the system of construction cost norms, unit prices, operation, and maintenance costs issued by the competent authority, urban railway projects and railway infrastructure works belonging to urban railway projects under the TOD model shall apply the construction cost norms, unit prices, operation, and maintenance costs published by international organizations or similar urban railway projects worldwide and converted to the calculation period;

b) For items that cannot be determined in terms of cost as stipulated in point a of this clause, the cost shall be determined based on the capital investment rate of similar urban railway projects worldwide and converted to the calculation period;

c) For cost items not specified in Vietnamese laws or already specified in Vietnamese laws but not suitable for similar urban railway projects with the same nature and conditions, cost items similar to those of comparable urban railway projects worldwide shall be applied.

5. The Vietnam Electricity Corporation is responsible for organizing the relocation of power facilities with voltage of 110 kV or higher to serve land acquisition, compensation, support, and resettlement work.

Article 6. On Urban Development According to the TOD Model

1. The establishment, review, approval, and adjustment of the route plan for construction projects and the location of construction projects on urban rail transit routes, as well as the planning of TOD areas, shall be regulated as follows:

a) The People's Committee of the City shall organize the establishment, review, approval, and adjustment of the route plan for construction projects and the location of construction projects on urban rail transit routes, and the planning of TOD areas to determine the location, boundaries, and area of land to be recovered. Within the TOD area, the People's Committee of the City may decide on economic and technical indicators, other land use planning indicators different from those stipulated in national technical standards for urban and rural planning, but must ensure compliance with infrastructure systems; may adjust the functions of land use within the TOD area to exploit land funds and additional land value, develop urban rail transit routes, and urban development within the TOD area;

b) When establishing, reviewing, approving, and adjusting the route plan for construction projects and the location of construction projects on urban rail transit routes, and the planning of TOD areas, the People's Committee of the City may decide on contents different from urban and rural planning, land use planning, and land use plans that have been approved by competent authorities without having to go through procedures to adjust the land use plan and related plans. After the route plan for construction projects and the location of construction projects on urban rail transit routes, and the planning of TOD areas are approved, the land use plan and other related plans must be promptly reviewed, adjusted, updated, and published.

2. Based on the approved planning of the TOD area, the People's Committee of the City may decide on the transfer of land use planning indicators between projects and works within the TOD area.

3. The Municipal People's Council shall provide detailed regulations for this Article.

Article 7. Railway Industry Development, Technology Transfer, and Human Resource Training

1. The People's Committee of the City may decide to apply standards and specifications for urban rail transit lines of the city after obtaining the unified opinion of the Ministry of Construction without having to follow the approval procedures prescribed by relevant laws.

2. The development of science, technology, and human resource training for urban rail transit projects shall be regulated as follows:

a) Organizations and individuals primarily responsible for scientific and technological activities serving the project shall apply and enjoy the following policies:

a1) Deciding on the form of limited bidding, direct contracting, or ordering to select contractors providing services and goods;

a2) Enterprises shall enjoy incentives as high-tech enterprises according to the law on high technology during the period of implementing scientific and technological tasks serving the project;

a3) Income of enterprises and income of individuals from the implementation of scientific and technological tasks serving the project shall be exempted from tax;

b) Organizations and individuals participating in training to develop high-tech human resources serving the project shall enjoy preferential policies according to the law on high technology.

3. The development of industry and technology transfer shall be regulated as follows:

a) The Government shall stipulate criteria for selecting organizations, state-owned enterprises assigned tasks, or Vietnamese organizations and enterprises ordered to provide industrial railway services and goods, conduct research, apply, and receive technology transfers;

b) The Prime Minister shall decide the list of industrial railway services and goods assigned to state-owned organizations or enterprises or ordered from Vietnamese organizations and enterprises;

c) General contractors and subcontractors must prioritize the use of products, goods, and services that can be produced and supplied domestically;

d) For international tender packages, the tender documents must include commitments from foreign general contractors and subcontractors regarding technology transfer and human resource training for Vietnamese partners to take charge of management, operation, exploitation, maintenance, and gradually master the technology.

Article 8. Policy on construction materials and waste disposal sites

1. The exploitation of mineral group IV and ordinary construction material minerals under mineral group III as defined in the Law on Geology and Minerals (hereinafter referred to as ordinary construction material minerals) for urban railway projects and urban railway works within urban railway projects under the TOD model shall be regulated as follows:

a) For mines that have been granted permits, are currently operating, still have remaining extraction periods or have exceeded their extraction periods but still have reserves and have not yet completed mine closure procedures, the provincial People's Committee shall decide:

a1) To adjust the extraction volume, extend the mine's extraction period, increase capacity according to the needs of the projects without having to go through the procedure to adjust the provincial planning; there is no need to establish a mining project investment adjustment plan to implement the decision-making or approval process for investment proposals; there is no need to conduct an assessment and approve the environmental impact assessment report, issue an environmental permit, and register the environment, but it must ensure labor safety and environmental protection requirements during extraction;

a2) To stop increasing extraction capacity once sufficient supply has been provided to the project;

b) For mines included in the survey files for construction materials serving the projects but have not yet been issued mining permits:

b1) The provincial People's Committee shall issue mining permits for ordinary construction material minerals without conducting a bidding process for mining rights. For ordinary construction material mines that have been included in the planned bidding process for mining rights, they will be adjusted out of the bidding plan to issue mining permits without conducting a bidding process for mining rights; the issuance of mining permits shall be carried out similarly to the issuance of mining permits for mineral group IV as stipulated in point a, Clause 2, Article 72 and points c, d, Clause 2, Article 73 of the Law on Geology and Minerals;

b2) The provincial People's Committee shall decide to adjust and supplement these mines into the geological and mineral management plans in the provincial planning without having to go through the procedure to adjust the provincial planning;

b3) The provincial People's Committee shall use the project reserve fund to organize land recovery, compensation, support, and resettlement in the mine area after completing surveys and evaluations of reserves and quality according to the project requirements and other provisions of the law on geology and minerals to grant mines to organizations and individuals for mining to serve the projects;

b4) The provincial People's Committee shall be responsible for managing and supervising the implementation process and post-completion management of the projects;

b5) Organizations and individuals mining to serve the projects shall be responsible for paying taxes, fees, and other financial obligations as prescribed by law;

b6) Mining and using minerals shall be carried out until the completion of the projects and must comply with management and supervision regulations as prescribed by law;

c) In cases where all reserves of minerals at mines included in the survey files for construction materials serving urban railway projects and urban railway works within urban railway projects under the TOD model have been exhausted but still cannot meet the demand for construction materials for the projects, the project sponsor shall organize surveys and propose to the provincial People's Committee to decide to add new mines to the survey files for construction materials serving the projects; the management, mining, and use of minerals at newly added mines shall be implemented as prescribed in point b of this clause;

d) The provincial People's Committee shall base its decisions on actual conditions to guide organizations and individuals mining to serve urban railway projects and urban railway works within urban railway projects under the TOD model to independently assess the impact on riverbeds, banks, and beaches for sand and gravel mines located in sections of rivers and streams with high risks of landslides, ensuring compliance with regulations on sand and gravel management and riverbed, bank, and beach protection; inspect and control the use of minerals in accordance with the law.

2. Regarding solid construction waste disposal sites and surface layers of paddy fields serving urban railway projects and urban railway works within urban railway projects under the TOD model, the People's Committee of the city shall decide or propose relevant provincial People's Committees to decide:

a) To recover land, compensate, support, and resettle areas designated for solid construction waste disposal in the project survey files and hand over the site to contractors for the disposal of project solid construction waste;

b) To organize the management of project solid construction waste disposal sites in accordance with laws on land, environmental laws, and other related laws;

c) To organize the development of plans for the use of surface layers of paddy fields recovered from projects. The development of plans for the use of surface layers of paddy fields recovered from projects shall be carried out in accordance with laws on crop cultivation.

Article 9. Special provisions applicable to Ho Chi Minh City

1. Within the TOD area, the People's Committee of Ho Chi Minh City shall collect and use 100% of the following revenue sources for developing the urban railway system, public transportation systems, and technical infrastructure connecting with the public passenger transport system:

a) Revenue from additional floor area construction due to increased land use coefficients and other planning indicators in the TOD area;

b) Revenue from the added value generated from land within the TOD area;

c) Infrastructure improvement fees.

2. The People's Council of Ho Chi Minh City shall specify in detail the methods for determining the collection rates, authority, procedures, and formalities for collecting the revenues specified in Clause 1 of this Article to ensure that there is no overlap with other taxes and fees.

3. The People's Committee of Ho Chi Minh City may borrow through the issuance of local government bonds, borrowing from domestic financial organizations, other domestic organizations, and foreign loans from the Government transferred to the city for re-lending, and other lawful forms of capital mobilization, with the total outstanding debt not exceeding 120% of the city's budget revenue according to its classification level; if it exceeds 120%, the National Assembly will review and adjust the increase in the loan debt ceiling in accordance with the actual needs of Ho Chi Minh City.

Annually, during the implementation of the budget, the People's Council of Ho Chi Minh City may proactively decide on specific domestic borrowing sources and re-lending of foreign government loans to ensure that the total outstanding debt and budget deficit of Ho Chi Minh City do not exceed the levels decided by the National Assembly. The Prime Minister assigns.

4. The People's Committee of Ho Chi Minh City shall organize the review and approval of environmental impact assessment reports; issue environmental permits before the trial operation of urban rail projects and urban rail projects under the TOD model (if the project falls within the scope requiring environmental permit procedures), and register environmental information (if the project does not fall within the scope of environmental permit issuance).

Article 10. Implementation Organization

1. During periods when the National Assembly is not in session, the Government shall submit to the Standing Committee of the National Assembly for consideration and decision on supplementing and adjusting special mechanisms and policies, particularly those stipulated in Articles 4, 5, 6, 7, 8, and 9 of this Resolution.

2. The Government shall be responsible to the National Assembly for:

a) Organizing the implementation and managing investment in the urban railway network in Hanoi and Ho Chi Minh City in accordance with this Resolution and relevant laws;

b) Managing and using funds and resources efficiently, preventing corruption, waste, and negativity; providing full information so that the public understands and agrees with the development of the urban railway network in Hanoi and Ho Chi Minh City;

c) Deciding to adjust the list of proposed projects attached to this Resolution based on the proposal of the People's Committee;

d) Specifying the contents assigned and guiding the implementation of certain provisions of this Resolution within its authority.

3. For the selection of investors and contractors for EPC packages and consulting packages using foreign contractors, the Ministry of Defense, the Ministry of Public Security, the Ministry of Construction, the Ministry of Finance, the Government Inspectorate, and the State Audit Office shall have the responsibility to send representatives to participate in the evaluation team upon invitation by the competent authority.

4. The State Audit Office shall be responsible for auditing the completed total investment cost report according to the investment decision-making level's review report to serve as the basis for approving urban rail projects and urban rail works under the TOD model, and sending the audit results to the investment decision-making level within thirty days from receiving the complete audit request files.

5. The People's Council shall have the following responsibilities:

a) Specifying in detail the contents assigned in this Resolution;

b) Supervising the organization and implementation of this Resolution.

6. The People's Committee shall have the following responsibilities:

a) Directing the organization and implementation of this Resolution to ensure transparency, effectiveness, feasibility, and progress, preventing policy exploitation, loss, and waste; directing departments, sectors, and localities to implement in a coordinated, unified, and effective manner;

b) Mobilizing enterprises to invest in equipment; continuing restructuring, building management and maintenance models ensuring uniformity, modernity, and efficiency; participating in the development of the railway industry;

c) Strengthening the organizational structure assigned to implement the management of urban rail projects and urban rail projects under the TOD model to ensure capacity and experience in accordance with construction laws and related laws;

d) Cooperating with provincial People's Committees in implementing the provisions of Article 8 of this Resolution;

đ) Summarizing the implementation of this Resolution after two years of implementation.

7. The Standing Committee of the National Assembly, the Ethnic Council, and the Committees of the National Assembly, Delegations of the National Assembly, National Assembly deputies, Provincial People's Councils, the Vietnam Fatherland Front, and member organizations, within their respective duties and powers, shall supervise the implementation of this Resolution.

Article 11. Implementation Provisions

1. This Resolution shall take effect from the date of adoption, except for the cases provided for in Clause 2 of this Article and shall be implemented until the completion of the investment in projects listed in the attached appendix to this Resolution.

2. The provisions of Clause 3 and Clause 4 of Article 5, Article 6, Point a and Point b of Clause 3 of Article 7, and Clause 2 of Article 9 of this Resolution shall take effect from May 1, 2025.

3. For projects listed in the attached appendix to this Resolution which have been approved for investment orientation by the competent authority before the effective date of this Resolution, the People's Committee with authority and responsibility shall have the following:

a) Decide on the application of the provisions of this Resolution to subsequent activities that have not yet been carried out without having to re-approve the investment orientation of the project.

b) Shall be responsible for adjusting the investment decision without having to go through the procedures for adjusting the investment orientation in the case of project adjustment.

4. The development of the urban railway network system in Hanoi according to the list of projects envisaged in the Appendix attached to this Resolution shall be implemented in accordance with the provisions of this Resolution without having to comply with the provisions of Clause 2 and Clause 3 of Article 31, Point a Clause 2 and Clause 3 of Article 37 of the Law on the Capital City.

5. In cases where there are different provisions on the same issue between this Resolution and other laws or resolutions of the National Assembly, the provisions of this Resolution shall apply, except for the case stipulated in Clause 6 of this Resolution.

6. In cases where laws or resolutions of the National Assembly promulgated after the effective date of this Resolution provide more favorable mechanisms or policies than those provided for in this Resolution, the application thereof shall be decided by the People's Committee of the City./.

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 This Resolution was adopted by the Ninth Extraordinary Session of the Fifteenth National Assembly of the Socialist Republic of Vietnam on February 19, 2025./.