New real estate developments in Thủ Thiêm urban area. — VNS Photo Bồ Xuân Hiệp

HCM CITY — Commune-level authorities in HCM City have been granted the power to approve land-use requests for business projects, marking a major shift under the revised Land Law 2024, which took effect on July 1.

The move aims to cut red tape, simplify procedures, and accelerate project implementation, especially for small- and medium-sized enterprises.

The city’s Department of Agriculture and Environment has issued guidelines to 168 communes, wards, and the Côn Đảo special administrative zone, authorising local People’s Committee chairpersons to receive and process land-use applications from enterprises pursuing socio-economic development projects.

Under the new law, commune-level authorities may now issue initial approvals in cases where the State allocates land without charging land use fees or leases land with rent exemptions.

Previously, businesses were required to navigate multiple layers of administration for such approvals.

City officials said the change will significantly streamline procedures and lower costs for investors.

“This is a long-overdue breakthrough,” said a senior land policy analyst, who requested anonymity. “Businesses will no longer be stuck in months-long waiting loops. It’s a win for both economic growth and administrative transparency.”

The decentralisation aligns with the city’s broader land administration reforms and the transition to a two-tier government model (municipal and ward/commune), which also took effect on July 1.

In addition to land-use approvals, commune-level People’s Committees will also handle other land-related procedures under a Government decree.

These include issuing and renewing land-use right certificates (known as “red books”), approving land use changes for individuals and households, registering property ownership, and verifying cadastral maps.

Experts welcomed the move but noted the need for strict oversight to prevent potential misuse or inconsistency in enforcement. — VNS