A view of HCM City along the Sài Gòn River. The city is rapidly creating a legal framework for enforcing the Law on Urban Development on optimising urban spaces and unlocking key economic resources. — VNS Photo Nguyễn Diệp

HCM CITY — The HCM City People's Council has issued Resolution No. 39/2026/NQ-HĐND to create a legal framework to implement the Law on Urban Development across the city.

The Law on Urban Development, set to take effect on October 1, opens a broad legal space with specific mechanisms and decentralisation for the city, creating new dynamics for sustainable growth.

The law marks a significant milestone for the city, Võ Văn Minh, chairman of its People's Council, said.

“Beyond refining the legal framework for urban management, it provides long-term strategic institutional leverage to unblock bottlenecks and mobilise land, finance, investment, and technological resources effectively.”

To implement the law, the city plans to issue 147 resolutions, including 125 legal ones.

Among the legal documents, 61 must be enacted immediately, while 64 will be issued as and when practical needs arise.

The city passed Resolution No. 39 just three days after the National Assembly approved the Law on Urban Development.

Taking effect on September 6, the resolution clearly defines the procedures, responsibilities, and authority of each administrative level, establishing a rigorous framework to streamline policy rollout while ensuring policy risk management.

Key highlights include strict provisions on decentralising authority, requiring inter-disciplinary appraisal councils, mandatory public and regional consultation for policies impacting the broader metropolitan area, and establishing clear guidelines for sandbox policy testing.

Also, drafting policies requires mandatory consultation with neighbouring provinces when they impact the key southern economic zone.

This regional approach ensures harmonious infrastructure connectivity and prevents policy overlaps across administrative boundaries.

In addition, the resolution introduces a structured sandbox mechanism to safely pilot economic policies.

Establishing clear risk-management protocols and efficacy criteria before launching pilot projects provides a secure environment for innovation, Huỳnh Thanh Nhân, vice chairman of the People's Council, said.

"It protects the core public interest while giving the city the flexibility to experiment with modern urban governance tools."

He called having resolutions in place before the law takes effect an innovative approach to governance. 

“This proactive strategy minimises legal gaps, speeds up policy implementation, and allows citizens and businesses to benefit promptly from the new mechanisms.”

Resolution No. 39 serves as a modern urban governance tool, reinforcing investor confidence and providing a solid foundation to transform special mechanisms into tangible socio-economic growth. — VNS