Resolution No. 98/2023/QH15 on Pilot Implementation of Certain Special Mechanisms and Policies for the Development of Ho Chi Minh City

 

RESOLUTION

ON TRIAL IMPLEMENTATION OF CERTAIN MECHANISMS AND SPECIAL POLICIES FOR THE DEVELOPMENT OF HO CHI MINH CITY

OF THE NATIONAL ASSEMBLY

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

On the basis of The Law on Legislative Acts has been amended and supplemented with certain articles pursuant to Law No. 63/2020/QH14;

RESOLUTION:

Article 1. Scope of Regulation

This Decision stipulates the trial implementation of certain mechanisms and special policies for the development of Ho Chi Minh City (hereinafter referred to as the City) concerning investment management; financial and state budget management; urban management, natural resources, and environment; priority industries and professions attracting strategic investors to the City; scientific and technological management, innovation; organizational structure of the City's administration and Thu Duc 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. Other organizations and individuals related thereto.

Article 3. Explanation of Terms

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

1. Innovative Entrepreneurship Enterprise is a business established in accordance with the provisions of the law to implement ideas based on exploiting intellectual property, technology, new business models, and having the potential for rapid growth.

2. Intermediary organization supporting start-up innovation is a business promotion organization, a start-up innovation support organization, a concentrated service area for start-up innovation support, a technical base supporting small and medium-sized enterprises, a small and medium-sized enterprise incubation base, a shared workspace supporting small and medium-sized enterprises in innovative start-ups, a technology transfer promotion and support center, an innovation support center, an organization providing shared equipment.

3. Urban development model oriented towards public transportation development (TOD) is a model that takes the orientation of developing a public transportation system as the basis for urban planning and development; using transportation hubs as population concentration points to enhance land and public facility utilization efficiency, contributing to reducing traffic congestion and environmental pollution.

4. Build-Transfer Contract (BT Contract) is a contract signed between the competent authority and the investor, project company (if any) to construct infrastructure projects; after completion of the project, the investor transfers the project to the competent authority and is paid from the state budget to recover investment capital and profit according to the agreement in the contract.

Article 4. On Investment Management

1. The People's Council of the City decides to allocate public investment funds to support poverty reduction and job creation through entrusting the People's Committee of the City to the Social Policy Bank Branch in Ho Chi Minh City to implement loan policies for poor households, near-poor households, newly escaped poor households, and job creation. The People's Council of the City shall specify criteria, conditions, levels, contents, forms, and timeframes for support.

2. Trial implementation of the urban development model oriented towards public transportation development (TOD):

a) The People's Council of the City decides to use local budgets to implement independent public investment projects to carry out compensation, support, and resettlement work for projects designed according to individual urban design plans, urban planning schemes for areas around railway stations approved by competent authorities, and areas around intersections along Ring Road 3 within the city limits to reclaim land, improve urban appearance, develop the city, implement resettlement, and create land funds for auctioning to select investors for urban, commercial, and service development projects in accordance with the law;

b) The authority, procedures, and processes for investment and construction of compensation, support, and resettlement projects as specified in point a of this clause shall be carried out according to the authority, procedures, and processes of Group A public investment projects as stipulated by laws on public investment;

c) For areas around stations and intersections as specified in point a of this clause, the People's Committee of the City may decide to adjust building density and technical infrastructure standards compared to national technical standards for existing urban areas but must ensure compliance with technical infrastructure systems, social infrastructure, and architectural planning indicators determined in the content of district planning schemes and the overall city planning scheme;

d) Land acquisition for projects as specified in point a of this clause must meet the following conditions: the project has been approved for investment and is included in the city's medium-term public investment plan; the location, boundaries, and area of land to be acquired have been determined in urban planning schemes, individual urban design plans, land use plans, and annual land use plans at the district level.

3. The People's Committee of the City organizes bidding to select investors to implement projects using land that fully meet the following conditions:

a) Included in the list of projects requiring land acquisition for economic and social development in the public interest as stipulated by the law on land;

b) Has land under state management within the project site;

c) Unreleased land.

4. The portion of land under state management within the sites for bidding to select investors to implement projects as stipulated in Clause 3 of this Article does not need to follow the procedures for reorganizing and disposing of state assets as prescribed by laws on the management and use of state assets.

5. Regarding projects implemented under the Public-Private Partnership (PPP) model:

a) In addition to the fields of investment under the Public-Private Partnership model as stipulated in the Law on Public-Private Partnerships, the City may apply the Public-Private Partnership model to projects in the sports and culture sectors. The procedures for implementing projects as stipulated in this point shall be carried out in accordance with the laws on Public-Private Partnerships and other relevant laws;

b) The minimum total investment scale of PPP projects in the health, education and training, sports, and culture sectors shall be stipulated by the People's Council of the City;

c) The City may apply the Build-Operate-Transfer (BOT) contract model to projects for upgrading, expanding, and modernizing existing road infrastructure in line with approved urban planning schemes for main urban roads and elevated roads.

The criteria, principles, conditions, procedures, and processes for implementing projects and selecting investors shall comply with the provisions of the laws on investment under the public-private partnership model.

The Municipal People's Council shall promulgate the list of projects as stipulated herein. The Municipal People's Committee shall publicly disclose all information about the projects to facilitate citizens' supervision.

In cases where the compensation costs for land clearance account for more than 50% of the total project investment and the initial financial plan of the PPP project does not ensure the ability to recover capital, the Municipal People's Council may consider and decide to increase the proportion of state capital participating in the PPP project but not exceeding 70% of the total project investment;

d) The city may apply the BT contract type.

The authority, procedures, and processes for project planning, review, approval, management, investment costs, construction quality, and projects applying the BT contract type shall be implemented according to the regulations on public investment and construction laws. A project can only be decided upon investment orientation when the sources of funds and the ability to balance funds are determined. The total investment amount of a project applying the BT contract type shall be determined according to the regulations on public investment projects under construction laws; post-construction interest expenses and reasonable profits shall be included in the total investment amount of the project.

The authority, procedures, and processes for selecting investors to implement projects applying the BT contract type shall be carried out according to the regulations on PPP projects under the laws on investment under the public-private partnership model. The selection of investors to implement projects applying the BT contract type shall be conducted after the detailed design has been approved following the basic design.

The Municipal People's Committee shall establish standards for evaluating the capacity, experience, technology, and finance of investors implementing the projects.

The Municipal People's Council shall decide on using municipal budget funds, allocating preparatory investment funds, annual budget estimates, and public investment funds in the medium-term and annual investment plans of the city to pay investors after the completion, acceptance, auditing of independent operation of the works or parts thereof, based on the value and progress specified in the BT contract, and supervise the implementation to ensure compliance with the law.

The Government shall stipulate interest rates, reasonable profits, payment methods, and final settlement procedures for projects applying the BT contract type.

6. The Municipal People's Council and the Municipal People's Committee, within their respective duties and powers, shall be responsible for implementing the provisions of this Article and related laws, ensuring transparency; balancing the rights and legitimate interests of citizens, businesses, and the State, economic and social efficiency; avoiding waste and creating public consensus; preventing complex incidents, mass complaints, and maintaining social security and public order.

Article 5. On finance and state budget

1. Fee and tax policies are regulated as follows:

a) The Municipal People's Council decides to apply on its territory: fees and taxes not listed in the Fee and Tax List issued together with the Law on Fees and Taxes; adjusting the rate or ratio of collection of fees and taxes already decided by competent authorities for those listed in the Fee and Tax List issued together with the Law on Fees and Taxes, except court fees and taxes, and types of fees belonging to the central government revenue at 100%;

b) The municipal budget shall enjoy 100% of additional revenues from the adjustment of fee and tax policies as stipulated in point a of this clause to invest in socio-economic infrastructure and other tasks within the municipal budget; these revenues shall not be used to determine the percentage (%) of revenue shared between the central and municipal budgets;

c) The pilot implementation of fee and tax policies on the municipal territory as stipulated in point a of this clause must ensure a phased approach, aligning with the city's development capabilities and requirements; creating a favorable production and business environment for enterprises; ensuring market unity, not hindering the circulation of goods and services; reasonably regulating goods, services, and lawful income sources of organizations and individuals on the municipal territory; ensuring transparency, administrative reform, and public disclosure.

2. Based on the annual state budget estimate decided by the National Assembly, assigned by the Prime Minister, and the actual situation of the city, the Municipal People's Council shall decide on the municipal budget estimate and allocation to ensure alignment with the direction of restructuring the state budget, socio-economic development, and important sectors as prescribed by the National Assembly and the Government.

3. The city implements a mechanism to generate resources for salary reform as prescribed. After the municipal budget ensures sufficient resources for salary reform and social welfare policies throughout the stable budget period as prescribed by the competent authority, the Municipal People's Council may decide:

a) To use surplus salary reform resources from the municipal budget and allow lower-level budgets to use surplus salary reform resources to invest in socio-economic infrastructure within the budgetary expenditure tasks and increased income based on compliance with point b, Clause 5, Article 9 of this Resolution;

b) The proportion of revenue retained to generate salary reform resources for agencies and units under its management with large revenue amounts shall be adjusted appropriately; ensuring the principle that these agencies and units arrange their own salary reform resources according to the schedule decided by the competent authority; the state budget will not supplement salary reform resources for these agencies and units.

c) Allow administrative state agencies, political organizations, socio-political organizations, and public service units under the management of the City to use surplus funds from salary reform to increase investment expenditures, procurement, professional activities of the agency, organization, unit, and additional income based on compliance with the provisions set out in point b, Clause 5, Article 9 of this Resolution.

4. The City is permitted to borrow through the issuance of local government bonds, borrowing from domestic financial institutions, other domestic organizations, and foreign loans from the Government lent back to the City, with the total debt not exceeding 120% of the City's budget revenue according to the fiscal classification. The total amount of borrowing and budget deficit of the City each year shall be decided by the National Assembly in accordance with the provisions of the State Budget Law. Annually, during the execution of the budget, the People's Council of the City may proactively decide specific sources of domestic borrowing and sources of re-lending of foreign loans from the Government to ensure that they are within the total borrowing limit and budget deficit level already determined by the National Assembly and assigned by the Prime Minister.

5. Each year, the central government's supplementary budget for the City shall not exceed 70% of the increase in central government revenue from shared revenue items between the central budget and the City budget compared to the target assigned by the Prime Minister (the remaining portion after implementing excess revenue rewards as stipulated in Clause 4, Article 59 of the State Budget Law No. 83/2015/QH13 amended and supplemented by Law No. 59/2020/QH14) and revenues from items where the central government enjoys 100% as stipulated in points b, c, d, g, h, i, and q, Clause 1, Article 35 of the State Budget Law No. 83/2015/QH13 amended and supplemented by Law No. 59/2020/QH14, compared to the target assigned by the Prime Minister, but not exceeding the total increase in central government revenue in the area compared to the previous year's revenue collection and without causing a deficit in the central budget. The determination of the supplementary budget is based on the total revenue items, not calculated separately for each item.

6. The budget estimate of the People's Committee of districts under the City shall allocate an unallocated portion of 2% to 4% of the total district budget expenditure to implement expenditures for disaster prevention, mitigation, post-disaster recovery, disease control, accident handling, disaster relief, famine relief, important national defense and security tasks, and other necessary tasks. The Chairman of the People's Committee of the district decides on expenditures from the unallocated portion and reports periodically to the People's Committee of the City to report to the People's Council of the City at the nearest session.

7. The People's Council of the City decides on the use of the City's budget to implement transportation projects and works with regional characteristics located on the boundary between the City and other regions, national highway projects, and expressway projects passing through the City's territory; support other domestic regions and assist regions in other countries when necessary.

8. The Ho Chi Minh City State Capital Investment Finance Company (HFIC) is a limited liability company with 100% state capital, performing the function of a local development fund. The operation of HFIC is regulated as follows:

a) The People's Council of the City allocates revenue from the privatization of wholly state-owned enterprises represented by the People's Committee of the City to supplement the registered capital of HFIC;

b) The remaining profit of HFIC after setting aside funds as required is retained to supplement the Development Fund of HFIC to increase its registered capital;

c) The procedures for supplementing the registered capital of HFIC as stipulated in points a and b of this clause are carried out according to the procedures for supplementing the registered capital of local development funds;

d) Based on the proposal of the People's Committee of the City, the People's Council of the City can allocate public investment funds from the City's budget to subsidize interest rates for investment projects funded by HFIC in priority economic and social development fields within the City, subject to criteria, procedures, levels, and timeframes specified by the People's Council of the City.

When implementing lending for projects, HFIC must comply with the regulations on local development funds;

đ) HFIC must adhere to the principle of preserving and developing state capital when implementing the contents stipulated in this clause.

9. The City decides on the collection of maintenance and renewal fees for industrial zone infrastructure from businesses within the zones and uses them solely for the purpose of improving facilities for businesses and workers, not for profit-making purposes. The People's Committee of the City issues a regulation on the collection and use of maintenance and renewal fees for infrastructure, specifying the objects, principles, rates, management mechanisms, and usage of the collected funds, ensuring transparency, rationality, and alignment with the financial autonomy mechanism of the Management Board of Industrial Zones and Export Processing Zones. The maintenance and renewal fees stipulated in this clause do not need to be declared or taxed for value-added tax and are deductible expenses when determining corporate income tax.

10. The pilot financial mechanism for implementing measures to reduce greenhouse gas emissions through carbon trading and offset mechanisms is regulated as follows:

Carbon credits formed from programs and projects under carbon trading and offset mechanisms funded by the City's budget can be traded with domestic and international investors. The People's Committee of the City collaborates with the Ministries of Industry and Trade, Transport, Agriculture and Rural Development, Construction, Natural Resources and Environment to determine the proportion of emission reduction and absorption contributions towards the national greenhouse gas reduction target before trading carbon credits.

The People's Committee of the City shall promulgate the procedures and decisions on selecting investors. Revenue from carbon credit transactions is a city budget revenue that the City enjoys 100%; these revenues shall not be used to determine the percentage ratio (%) for revenue sharing between the central budget and the city budget.

The People's Council of the City decides on the use of revenue from carbon credit transactions for programs and projects responding to climate change, green economic development, digital economy, circular economy within the City.

11. The People's Committee of the City decides on the use of rooftops of administrative offices, public service units, and offices of agencies and units identified as state assets within the City to install solar power systems to supply electricity for their operations. Any excess electricity generated that is not fully utilized shall be handled in accordance with the laws on electricity.

The People's Committee of the City shall organize the installation and management of solar power systems ensuring aesthetic, architectural elements, and environmental regulations.

Article 6. On urban management, resources, and environment

1. For projects using rice cultivation land for other purposes, the People's Council of the City decides on changing the purpose of using less than 500 hectares of rice cultivation land in accordance with the approved land use planning and plans.

Decisions on changing the purpose of using rice cultivation land must be made publicly, taking into account the opinions of the people and those affected by the change, and ensuring principles and conditions for changing the purpose of rice cultivation land to other uses as stipulated by the laws on land and other relevant laws.

Procedures and processes for changing the purpose of using less than 500 hectares of rice cultivation land shall be regulated by the People's Council of the City.

2. Urban planning and construction planning are regulated as follows:

a) Based on the detailed construction planning scheme and urban planning schemes approved by the Prime Minister, the Prime Minister decides on the delegation to the People's Committee of the City to approve partial adjustments to the overall construction planning scheme, partial adjustments to the overall urban planning, and partial adjustments to specialized infrastructure technical planning according to the procedures and processes prescribed by the Prime Minister and report the results to the Prime Minister.

b) Adjustments to construction planning and urban planning to serve community interests as prescribed by the laws on construction and urban planning shall be carried out when they fall under one of the following cases: increasing social infrastructure land indicators, technical infrastructure; reducing building density; increasing average floor area ratio per capita but must ensure the city’s housing development plan and not increase building density or overload the local infrastructure; cases stipulated in Clause 3 of this Article and Clause 2 of Article 4 of this Resolution; adding public facilities or improving urban landscape to enhance living quality, conditions, and activities of residents in the area.

3. For social housing investment projects, the following provisions apply:

a) Detailed planning tasks are established simultaneously with the preparation of detailed planning schemes; the collection of community opinions related to detailed planning tasks and schemes is conducted at the same time. The review and approval of detailed planning tasks must be completed first, serving as the basis for reviewing and approving detailed planning schemes.

b) At the time of approving the investment proposal, if the detailed planning or zoning planning does not comply with the general planning, then the approval of the investment proposal can be made according to the general planning and land use coefficient or building density as prescribed by the laws on housing.

If the detailed planning does not comply with the general planning and zoning planning, then the approval of the investment proposal can be made according to the general planning, zoning planning, and land use coefficient or building density as prescribed by the laws on housing.

Zoning planning and detailed planning must be approved or adjusted according to the law before preparing feasibility studies for investment construction and implementing subsequent project steps.

c) The People's Committee of the City approves the planning and allocation of social housing land funds within commercial housing projects or approves the planning and allocation of social housing land funds outside the scope of commercial housing projects to meet the demand for social housing within the city according to the approved housing development program and plan, ensuring the proportion of land area for social housing construction as prescribed by the laws on housing and related laws. Investors are responsible for organizing the construction of social housing at the designated locations and completing financial obligations regarding land in the exchanged land fund within the commercial housing project, ensuring compliance with the laws on housing and land.

Land for developing social housing includes: the residential land area in commercial housing projects that investors must reserve for social housing construction as prescribed by the law; land granted by the State, land leased by the State, and land legally used by organizations, households, and individuals in accordance with approved land use plans, construction planning, and urban planning as prescribed by the law.

4. The People's Committee of the City shall develop, submit to the People's Council of the City for approval and promulgate the land price adjustment factor suitable to the actual situation of the City to calculate land use fees and land lease fees for all plots of land (regardless of value based on the land price list) in cases where the land price list has collected market information and applied to each plot of land for the following situations:

a) The State permits the change of land use purpose for areas exceeding the quota for households and individuals.

b) The State leases land to organizations and individuals on an annual payment basis for the use of land, except in cases where the land is used to implement commercial housing development projects.

5. The principles for compensation for land when the State reclaims land are stipulated as follows:

a) Compensation for land must ensure that persons whose land is reclaimed have accommodation and living conditions equal to or better than their previous place of residence.

The city shall consider supporting persons whose land is reclaimed and owners of assets attached to the land to create conditions for them to have employment, income, stable livelihoods, production, and business operations;

b) Land compensation shall be carried out by transferring land with the same purpose of use as the reclaimed land; if there is no land available for compensation, it shall be compensated in cash according to the specific price of the reclaimed land decided by the competent People's Committee at the time of approving the compensation, support, and resettlement plan. For households and individuals whose land is reclaimed and who wish to be compensated in cash, they shall be compensated in cash according to their registered preference when establishing the compensation, support, and resettlement plan. For households and individuals whose land is reclaimed and who wish to be compensated with land of a different purpose of use from the reclaimed land or with residential houses, and if the city has conditions regarding land funds and residential houses, they may be considered for compensation with land of a different purpose of use from the reclaimed land or residential houses. The Municipal People's Council decides the conversion ratio and conditions for compensation with land of a different purpose of use from the reclaimed land or residential houses, in accordance with the actual situation in the locality, ensuring the rights and legitimate interests of the people.

6. The city may decide to allow economic organizations that lease land from the State on an annual payment basis, where the land rent does not originate from the state budget, to have the right to mortgage, transfer, or lease the leasehold rights in the land lease contract if they meet the following conditions:

a) Having a Certificate of Land Use Right; Certificate of House Ownership and Land Use Right; Certificate of Land Use Right, House Ownership, and Other Assets Attached to the Land (hereinafter referred to as the Certificate of Land Use Right);

b) Assets attached to the leased land are legally established in accordance with the provisions of the law;

c) Completed construction in accordance with the detailed construction planning and investment project approved, except in cases where implementation must follow court judgments, decisions that have taken legal effect, decisions of civil enforcement agencies, or conclusions of competent state agencies regarding inspections and audits;

d) The land is not in dispute;

đ) Within the period of land use;

e) The buyer or lessee of the leasehold rights in the land lease contract must meet the following conditions: having financial capacity to implement the investment project; engaging in appropriate industries and businesses in line with the investment project; not violating the provisions of the law on land for cases where the State has allocated land or leased land for the implementation of the project previously.

The buyer or lessee of the leasehold rights in the land lease contract may continue to use the land within the remaining period of land use, use the land for the purpose determined in the project, and must complete the procedures for registering mortgages, transfers, or leasing of leasehold rights in the land lease contract; the land registration office is responsible for registering the land in the Certificate of Land Use Right and the land records, land database based on the signed contract.

7. For projects applying the BT contract type signed in accordance with the provisions of the law at the time of signing the BT contract before the Law on Investment under Public-Private Partnership takes effect, if the settlement of payments to the investor has not been completed, the use of land funds managed by the State for the purpose of rearranging and disposing of public assets to settle the investor shall be implemented as follows:

a) The People's Committee of the City shall carry out the land reclamation process for areas of land belonging to the land fund managed by the State for the purpose of rearranging and disposing of public assets as determined in the BT contract;

b) The People's Committee of the City shall decide and implement investment procedures, planning and construction procedures, and land allocation and leasing procedures in accordance with the BT contract signed, and the land use planning approved by the competent authority. The timing for land allocation and leasing for settlement purposes shall be based on the completion of construction works in the BT contract project according to the progress verified by the competent state agency in accordance with the law and audited. The valuation for land use fees and land lease fees shall be determined at the time of deciding land allocation and leasing.

8. For land areas formed after implementing coastal encroachment, the city shall implement procedures for land allocation and leasing in accordance with the law on land.

9. Investors purchasing distressed assets, enforcement assets, which are agricultural land use rights from financial institutions, credit institutions, enforcement agencies, and notaries to implement non-agricultural projects but have not completed the procedures for the State to allocate or lease land and have exceeded the land use period, or investors who have transferred agricultural land use rights to implement non-agricultural projects and are currently completing the procedures for the State to allocate or lease land and have exceeded the land use period, may extend the land use period until June 30, 2024.

10. The general conditions for issuing a limited-term construction permit for public facilities including houses, parking lots, and public toilets on land managed by the State are stipulated as follows:

a) Located in areas with approved and announced district planning, functional area planning, or detailed planning, detailed functional area planning, but not yet implemented;

b) The scale of the construction project must comply with construction standards, not overload infrastructure, and ensure urban landscape and the lifespan of the project according to the implementation plan of the detailed zoning plan, functional area detailed zoning plan, or detailed construction plan approved by competent state authorities;

c) When the lifespan of the construction project recorded in the construction permit expires or when there is a request from a competent state authority, the investor commits to demolish the project themselves; if they fail to do so, it will be forcibly demolished and they will bear all costs associated with the demolition. If the construction planning has not been implemented beyond this period, the investor may continue to use the project until the competent state authority notifies them to demolish the project;

Other conditions outside the general conditions for issuing a time-limited construction permit, procedures, formalities, authority for issuing a time-limited construction permit, and construction management are carried out in accordance with the provisions of the Construction Law;

11. Investors currently implementing projects to treat household solid waste who voluntarily convert the entire technology of their project to treat household solid waste with energy recovery shall be considered and decided by the People's Committee of the City to supplement the volume of household solid waste through ordering services. The Municipal People's Council shall issue criteria, standards, transition timelines for the converted technologies, and conditions, quotas, unit prices, and ordering prices related to the additional volume of household solid waste ordered, ensuring transparency and fairness;

12. The implementation of land acquisition preparation for some projects in the city shall be carried out as follows:

a) For projects constructing industrial zones, high-tech parks, national-level technical infrastructure, local technical infrastructure, transportation, cultural, sports, community entertainment areas, which fall under the cases where the State acquires land according to the Land Law and have a scale of 300 hectares or more, or involve 1,000 households, individuals, organizations whose land is being acquired, independent public investment projects shall implement compensation, support, and resettlement as stipulated in point a, Clause 2, Article 4 of this Resolution based on the land use plan at the district level and the annual land use plan at the district level, the Municipal People's Council shall issue a list of projects to organize the implementation of investigation, survey, measurement, inventory, verification of land origin, and attached assets according to the procedures and formalities prescribed herein;

b) Based on the list of projects prescribed in point a of this clause, the competent state authority acquiring land according to the Land Law shall issue a notice to organize the implementation of investigation, survey, measurement, inventory, verification of land origin, and attached assets;

The notice to organize the implementation of investigation, survey, measurement, inventory, verification of land origin, and attached assets shall be sent to each land user and announced on mass media, posted at the office of the People's Committee of the commune, and common living places of residential areas;

c) On the basis of the notice prescribed in point b of this clause, the organization responsible for compensation and clearance of land according to the Land Law shall be permitted to carry out investigation, survey, measurement, inventory, verification of land origin, and attached assets before the competent state authority issues a notice to acquire land;

The People's Committee of the commune shall be responsible for coordinating with the organization responsible for compensation and clearance of land to implement investigation, survey, measurement, inventory, verification of land origin, and attached assets;

The land user shall be responsible for coordinating with the organization responsible for compensation and clearance of land to conduct investigation, survey, measurement to determine the area of land, statistics of housing and other attached assets to establish a compensation, support, and resettlement plan;

d) After selecting the investor to implement the project according to current laws, the competent state authority acquiring land according to the Land Law shall issue a notice to acquire land and use the results of the investigation, survey, measurement, inventory, verification of land origin, and attached assets conducted according to point c of this clause to establish a compensation, support, and resettlement plan;

The establishment, review, approval, and implementation of the compensation, support, and resettlement plan and the decision to acquire land shall be carried out in accordance with the provisions of the Land Law;

đ) The Municipal People's Council shall decide to use the local budget to implement the contents prescribed in point c of this clause and promulgate the procedures and formalities for implementation prescribed in this clause;

13. The control of exhaust emissions from vehicles shall be regulated as follows:

a) The Municipal People's Council shall issue policies to encourage, support, and provide incentives to individuals, households, cooperatives, enterprises that implement the conversion of transportation vehicles from using fossil fuels to clean energy and the implementation timeline; purchase and exchange old vehicles for new ones using clean energy to reduce environmental pollution; invest in developing public transportation while limiting private vehicles to alleviate traffic congestion;

b) The Municipal People's Council shall decide to use the municipal budget to implement the contents prescribed in point a of this clause and promulgate criteria, procedures, and formalities for implementation prescribed in this clause;

c) The People's Committee of the City shall organize the implementation of restricting the operation of road motor vehicles using fossil fuels participating in traffic based on the policies prescribed in points a and b of this clause.

Article 7. On Priority Sectors and Industries for Attracting Strategic Investors in the City

1. The list of priority sectors and industries for attracting strategic investors in the City includes:

a) Investment in building innovation centers, research and development (R&D) centers; investment in researching and supporting the transfer of high-tech technology in the fields of information technology, biotechnology, automation technology, new materials technology, clean energy with a capital investment of VND 3,000 billion or more;

b) Investment in projects in the integrated circuit industry, semiconductor design and manufacturing, electronic component and integrated circuit (IC) manufacturing, flexible electronics (PE), new technology batteries, new materials, clean energy industry with a capital investment of VND 30,000 billion or more;

c) Investment in projects to build the international transshipment port at Can Gio according to planning with a capital investment of VND 50,000 billion or more.

2. A strategic investor is an investor meeting the conditions stipulated in Clause 3 and Clause 4 of this Article.

3. A strategic investor must meet one of the following conditions:

a) Having a registered capital of VND 500 billion or more when implementing the investment project specified in Point a, Clause 1 of this Article and having experience in investing in similar projects with a total investment capital of VND 2,000 billion or more;

b) Having a registered capital of VND 5,000 billion or more or total assets of VND 25,000 billion or more when implementing the investment project specified in Point b, Clause 1 of this Article and having experience in investing in similar projects with a total investment capital of VND 10,000 billion or more;

c) Having a registered capital of VND 9,000 billion or more when implementing the investment project specified in Point c, Clause 1 of this Article and having experience in investing in similar projects with a total investment capital of VND 25,000 billion or more.

4. A strategic investor must commit in writing to training and developing human resources, meeting national defense, security, and environmental protection requirements as prescribed by Vietnamese law.

5. A strategic investor specified in Clause 2 of this Article, selected through procedures and formalities stipulated in Clause 7 of this Article to implement investment projects under the list of priority sectors and industries for attracting strategic investors specified in Clause 1 of this Article, shall enjoy investment incentives and have obligations stipulated in Clause 8 and Clause 9 of this Article.

6. Based on the list of priority sectors and industries for attracting strategic investors specified in Clause 1 of this Article, investors or competent state agencies may propose investment projects. For projects requiring approval of investment orientation, the competent authority shall approve the investment orientation according to the procedures and formalities prescribed by Vietnamese law on investment and Clause 7 of this Article.

7. The procedures for registering to implement projects and selecting strategic investors for projects not falling within the cases stipulated in Clause 4 of Article 29 of the Investment Law shall be carried out as follows:

a) Based on the decision approving the investment orientation of the project stipulated in Clause 6 of this Article, the competent investment registration agency of the City shall publish project information, preliminary requirements regarding the capacity and experience of investors, and conditions for determining strategic investors on the National Bidding System;

b) Based on the published information stipulated in Point a of this clause, investors prepare and submit project implementation registration files. The project implementation registration file of the investor shall include: a project implementation registration document; a file on the legal status, capacity, and experience of the investor; documents proving compliance with the conditions stipulated in Clause 3 and Clause 4 of this Article, and other related documents (if any);

c) Upon expiration of the project implementation registration period, the competent investment registration agency of the City shall organize a preliminary evaluation of the capacity and experience of investors who have submitted project implementation registration files. Based on the results of the preliminary evaluation of capacity and experience, the authorized person shall decide on the selection of investors to proceed with one of the cases stipulated in Points d, đ, and e of this clause;

d) In case only one investor has registered and met the preliminary requirements regarding capacity and experience, or there are multiple investors who have registered but only one meets these requirements, the investor shall be approved according to the provisions of Vietnamese law on investment;

đ) In case two or more investors meet the preliminary requirements regarding capacity and experience, among which only one investor is determined to meet the conditions for a strategic investor as stipulated in Point a of this clause, the investor shall be approved according to the provisions of Vietnamese law on investment;

e) In case two or more investors meet the preliminary requirements regarding capacity and experience, among which two or more investors are determined to meet the conditions for a strategic investor as stipulated in Point a of this clause, the competent state agency shall apply or choose to apply the law on bidding to select investors from those who are determined to meet the conditions for a strategic investor;

g) The People's Committee of the City shall specify detailed models for publishing information on projects attracting strategic investors including preliminary requirements regarding the capacity and experience of investors; project implementation registration files.

8. Strategic investors shall enjoy the following incentives:

a) Being allowed to deduct 150% of actual R&D costs from taxable income for R&D activities when calculating corporate income tax. Actual R&D costs shall be determined in accordance with the regulations on accounting;

b) Enjoying preferential customs procedures as prescribed by Vietnamese law on customs and tax procedures for goods exported and imported by investment projects implemented by strategic investors in the City, provided that they meet the application conditions for preferential treatment as prescribed by Vietnamese law on customs and tax, excluding the condition on export and import turnover.

9. Strategic investors shall have the following obligations:

a) Implement the project in accordance with the contents specified in the Investment Registration Certificate or the Decision on Approval of the Investment Proposal;

b) Must disburse the investment capital within five years from the date of issuance of the Investment Registration Certificate or the Decision on Approval of the Investment Proposal. During this period, the strategic investor may not transfer the project;

c) Provide financial support for vocational training for workers affected by the project area; prioritize local labor force employment at the project; implement commitments regarding the application and transfer of advanced, new, and high-tech technologies (if applicable);

10. During the implementation of the investment project, if the strategic investor fails to meet the conditions concerning capital, disbursement progress, and other conditions for strategic investors, they shall not be entitled to the incentives stipulated in this Resolution. The investor shall bear responsibility for any consequences arising from their failure to fulfill their commitments in accordance with the law;

Article 8. On Science and Technology Management, Innovation

1. Support for innovation and startup activities in priority fields of the City shall be regulated as follows:

a) Exempt corporate income tax for a period of five years from the date when corporate income tax becomes payable for income generated from innovative startup activities of startup enterprises, scientific and technological organizations, innovation centers, and intermediary organizations supporting innovative startups located within the City;

b) Exempt personal income tax and corporate income tax for individuals and organizations receiving income from transferring equity contributions or rights to contribute equity to startup enterprises located within the City;

c) During the implementation of this Resolution, experts, scientists, individuals with special talents, and entrepreneurs working at startup enterprises, scientific and technological organizations, innovation centers, and intermediary organizations supporting innovative startups located within the City shall be exempted from personal income tax for a period of five years on income from salaries and wages;

e) Provide non-refundable support from the City's regular budget expenses for nurturing innovative startup projects, including costs for organizing selection activities, hiring experts, direct labor costs, innovation and startup support services, and usage fees for technical facilities, incubation facilities, and shared workspace;

f) The People's Council of the City shall specify the priority fields; criteria, conditions, and content of startup and innovation activities for entities mentioned in points a, b, and c of this clause; criteria, fields for testing new technology solutions, and support content (if any) mentioned in point d of this clause, and the level of support mentioned in point e of this clause;

2. The People's Council of the City shall specify the following contents:

a) Salaries, wages, welfare benefits, and other preferential policies for leadership positions in public scientific and technological organizations shall be determined based on qualifications, capabilities, and job requirements;

b) Remuneration for performing scientific and technological tasks;

c) Criteria, subjects, and conditions for enjoying preferential policies under points a and b of this clause.

Article 9. On the organization of the city's administrative apparatus

1. The Municipal People's Council establishes the Food Safety Department as a specialized agency under the Municipal People's Committee; it defines the functions, tasks, powers, and organizational structure of the Food Safety Department based on transferring state management functions regarding food safety, inspection, supervision, and administrative violation handling related to food safety, and the issuance of certificates for animal products leaving the city area from the Health Department, the Agriculture and Rural Development Department, and the Industry and Trade Department to the Food Safety Department.

2. Each district under the city shall have no more than three Deputy Chairpersons. For communes, towns with a population of 50,000 people or more, the Commune People's Committee, Town People's Committee shall have no more than three Deputy Chairpersons.

3. The election, recruitment, management, and utilization of cadres and civil servants working at communes and towns and ward cadres shall be carried out according to the laws on elections, recruitment, management, and utilization of cadres and civil servants and belong to the cadre and civil servant establishment of the district level and above assigned annually.

4. The Chairman of the Municipal People's Committee may delegate one or some of his/her duties and powers to the heads of other administrative agencies under the Municipal People's Committee, the heads of public service units under the Municipal People's Committee during a specified period accompanied by specific conditions. The delegation must be in writing and clearly define the responsibilities of the delegator and the delegatee, ensuring transparency, clarity, and effectiveness.

5. The Municipal People's Council has the following authorities:

a) Based on the population size, economic activities, and characteristics of the area, decide on the organizational structure, number of cadres and civil servants at communes, wards, and towns; decide on the number, titles, and policies for non-professional staff at communes, wards, and towns, ensuring streamlined organizational structures.

The Municipal People's Council issues criteria, standards, and quotas for the number of cadres and civil servants at communes, wards, and towns;

b) Decide on allocating the city budget to increase income for cadres, civil servants, officials, non-professional staff at communes, wards, and towns, workers in the state-managed sector, political organizations, social-political organizations, public service units, certain special-interest associations, and some central agencies within the city area, based on work performance in addition to the current legal provisions on financial autonomy mechanisms for administrative agencies and public service units, ensuring that the increased income does not exceed 1.8 times the salary grade, rank, and position, and the increased income does not exceed 0.8 times the basic wage fund of cadres, civil servants, officials, and workers under their management;

c) Decide on the income levels for experts, scientists, and exceptionally talented individuals of the city; decide on principles, standards, conditions, procedures, income levels, and other policies for recruiting civil servants and officials from outstanding graduates and highly qualified individuals suitable for the city's recruitment needs.

6. The Municipal People's Committee has the following authorities:

a) Decide on establishing, restructuring, and dissolving public service units under the Municipal People's Committee in accordance with legal principles, criteria, and conditions;

b) Decide on transferring some functions, tasks, and powers as stipulated by law belonging to the functions, tasks, and powers of specialized agencies under the Municipal People's Committee to other specialized agencies, administrative agencies under the Municipal People's Committee, District People's Committees, County People's Committees, and Thu Duc City People's Committee.

7. The High-Tech Park Management Board and the Export Processing Zones and Industrial Parks Management Board have the authority to review and approve, approve adjustments to tasks and detailed construction planning projects at a scale of 1/500 within the high-tech park, export processing zones, and industrial parks they manage after receiving written opinions from the construction planning management agency under the Municipal People's Committee; review and approve environmental impact assessment reports within the authority of the Municipal People's Committee; issue, renew, reissue, adjust, and revoke environmental permits within the authority of the Municipal People's Committee, District People's Committees, County People's Committees, and Thu Duc City People's Committee within the high-tech park, export processing zones, and industrial parks they manage.

Article 10. On the organizational structure of the municipal administration of Thu Duc City

1. The People's Committee of Thu Duc City shall have the following authorities:

a) Entrusting specialized agencies under its direct management to examine investment proposals, examine decisions approving projects; the People's Committee of Thu Duc City shall submit investment proposals to the People's Council of Thu Duc City for decision; the People's Committee of Thu Duc City shall decide on approving projects, organizing the selection of investors and signing project contracts for Group B and Group C projects invested through public-private partnership as provided for in this Resolution and laws on public-private partnership within Thu Duc City;

b) Entrusting specialized agencies under its direct management to examine and submit investment proposals of domestic investors using non-budgetary funds within Thu Duc City to the People's Committee of Thu Duc City for approval, where such matters fall within the authority of the People's Committee of the City;

c) Entrusting specialized agencies under its direct management to examine and submit for approval by the People's Committee of Thu Duc City the tasks and master plans for detailed planning projects within Thu Duc City that fall within the approval authority of the People's Committee of the City, except for the contents already specified in Clause 7, Article 9 of this Resolution;

d) Entrusting specialized agencies under its direct management to examine and submit for approval by the People's Committee of Thu Duc City the proposal for the use of state assets as houses and land for leasing, joint ventures, and joint operations within Thu Duc City after obtaining the opinion of the People's Council of Thu Duc City;

đ) Implementing the task of funding scientific research and technology;

2. The People's Committee of Thu Duc City and the Chairman of the People's Committee of Thu Duc City may delegate certain tasks and powers within their authority to specialized agencies under their direct management, heads of specialized agencies under their direct management, People's Committees of wards, and Chairmen of People's Committees of wards.

3. The People's Council of the City shall decide on the organization, number, and functions and tasks of specialized departments and units directly under Thu Duc City.

The People's Committee of the City shall consider and decide on the establishment, define the functions and tasks, and organizational structure of the Construction Inspection Agency and the Land Development Center directly under the People's Committee of Thu Duc City.

4. The People's Council of Thu Duc City shall decide on the establishment of the Urban Committee under the People's Council of Thu Duc City. The People's Council of Thu Duc City shall have no more than two Deputy Chairpersons and no more than eight full-time representatives, while the People's Committee of Thu Duc City shall have no more than four Deputy Chairpersons.

Position allowances for leadership positions in Party organizations, mass organizations, and administrative bodies of Thu Duc City shall be implemented according to the Appendix attached to this Resolution.

Article 11. Implementation Organization

1. The Government shall have the following responsibilities:

a) Issuing a Decree to guide the provisions set forth in Point d, Clause 5, Article 4, Point a and Point b, Clause 1, Article 8, and Clause 3, Article 9 of this Resolution;

b) Within the scope of their duties and powers, they are responsible for organizing the implementation of this Resolution; conducting a mid-term review of the implementation of the Resolution and reporting to the National Assembly at the final session in 2026; conducting a final review of the implementation of the Resolution and reporting to the National Assembly at the final session in 2028;

c) Directing relevant agencies to cooperate with the City in administrative reform, shortening the time to process issues not yet delegated or authorized to the City;

d) Issuing mechanisms and policies appropriate to their authority to adjust and supplement regulations to address emerging issues in the practical management and development of the City. Expanding delegation and authorization to the People's Council and People's Committee of the City compared to current regulations.

2. The Prime Minister shall be responsible for stipulating the delegation, procedures, and formalities for adjusting the overall urban planning of functional zones, adjusting the overall urban planning, and adjusting the specialized infrastructure technical planning.

3. The People's Council of the City shall have the following responsibilities:

a) Issuing criteria, conditions, levels of support, contents, and times of support as prescribed in Clause 1, Article 4; scale and list of projects as prescribed in Point b and Point c, Clause 5, Article 4; list, levels, rates of fees and charges as prescribed in Point a, Clause 1, Article 5; objects, conditions, procedures, levels, times of support as prescribed in Point d, Clause 8, Article 5; procedures as prescribed in Clause 1, Article 6; criteria, standards, timelines, conditions, quotas, unit prices, purchase prices as prescribed in Clause 11, Article 6; procedures as prescribed in Point đ, Clause 12, Article 6; incentive, support, preferential policies, implementation timelines, criteria, procedures as prescribed in Point a and Point b, Clause 13, Article 6; fields, criteria, conditions, contents, levels as prescribed in Point e, Clause 1, Article 8; criteria, objects, conditions as prescribed in Clause 2, Article 8; criteria, standards, quotas as prescribed in Clause 5, Article 9 of this Resolution;

b) Supervising the implementation of this Resolution in accordance with the law.

4. The People's Committee of the City shall have the following responsibilities:

a) Issuing standards, regulations, procedures, land price adjustment coefficients, detailed provisions on the format of information announcements for strategic investor attraction projects as prescribed in Point d, Clause 5, Article 4, Clause 9 and Clause 10, Article 5, Clause 4, Article 6, Point g, Clause 7, Article 7, and implementing the assigned tasks in this Resolution, ensuring transparency and compliance with the law;

b) For issues with different contents not covered by laws and Resolutions of the National Assembly, to meet the urgent needs of attracting strategic investors and mobilizing domestic and foreign resources for economic and social development, the People's Committee of the City shall report to the Government to submit mechanisms and policies to the competent authority for consideration and decision by the National Assembly; between sessions, submit to the Standing Committee of the National Assembly for consideration and decision and report to the National Assembly at the nearest session;

The formulation and issuance of specific documents to implement the policy prescribed herein shall be carried out through simplified procedures.

5. The National Assembly, the Standing Committee of the National Assembly, the Vietnam Fatherland Front, the National Ethnic Council, the National Assembly Committees, the Delegation of National Assembly Members of the City, and National Assembly deputies shall supervise the implementation of this Resolution within the scope of their respective duties and powers.

Article 12. Implementation Provisions

1. This Resolution shall take effect from August 1, 2023.

Decision No. 54/2017/QH14 dated November 24, 2017 of the National Assembly shall cease to be effective from the date this Resolution takes effect.

2. After this Resolution ceases to be effective, policies, projects, and other subjects decided by competent authorities to implement according to mechanisms and policies stipulated in Clause 1, Clause 2, and Point a Clause 5 Article 4, Point d Clause 8 Article 5, and Point c Clause 3 Article 6 of this Resolution that have not yet concluded shall continue to be implemented in accordance with previously issued decisions.

For investment projects applying BOT and BT contracts signed under the mechanisms and policies stipulated in Point c and Point d Clause 5 Article 4 of this Resolution, they shall continue to be implemented after this Resolution ceases to be effective until the completion of the contract.

3. Investment projects specified in Article 7 of this Resolution which have been approved for investment orientation or granted Investment Registration Certificates during the period this Resolution is effective shall enjoy investment incentives as provided for in Article 7 of this Resolution until the end of the project implementation period.

4. After this Resolution ceases to be effective, if the tax exemption periods for certain subjects as stipulated in Point a and Point c Clause 1 Article 8 of this Resolution have not yet ended, such exemptions shall continue to be implemented until the end of the tax exemption period.

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. If other regulatory legal documents provide more favorable mechanisms or policies than those stipulated in this Resolution, the beneficiaries may choose to apply the most advantageous level of benefits.

This Resolution was adopted by the Fifth Session of the Fifteenth National Assembly of the Socialist Republic of Vietnam on June 24, 2023.