RESOLUTION

OF THE MINISTRY OF FINANCE

ON PLANNING, CONSTRUCTION, MANAGEMENT, AND SUSTAINABLE DEVELOPMENT OF URBAN AREAS IN VIETNAM TIL 2030, WITH A VISION TOWARD 2045

I- SITUATIONS AND CAUSES

After 35 years of innovation, especially in the last 10 years, the work of urban planning, construction, management, and development in our country has achieved many important results. By the end of 2020, our country’s urban system has 862 urban areas of all kinds, distributed relatively evenly in the whole country. The rate of urbanization determined by areas with urban functions has increased from 30,5% in 2010 to nearly 40% in 2020. Urban space is expanded; technical and socio-economic infrastructure is invested in an increasingly synchronous and efficient direction; living quality of urban residents has been gradually improved. Urbanization and urban development have become important motivations for socio-economic development. The economy of urban areas has grown at a high rate, contributing about 70% of the country's GDP. Initially, economic growth poles and centers of innovation; science and technology; education and training have been formed in major urban areas, especially in Hanoi and Ho Chi Minh City.

However, the process of urbanization and work of urban planning, construction, management, and development still have many limitations. The achieved urbanization rate is lower than the objective set in the Socio-economic Development Strategy 2011- 2020 and is still far from the average rate of the region and the world. The quality of urbanization is not high due to urban development mainly in breadth, causing waste of land, and the level of economic concentration is still low. The process of urbanization and urban development has not been closely and synchronously associated with the process of industrialization, modernization, and construction of new rural areas. The structure and quality of urban infrastructure have not met the requirements for the development of population and economy in urban areas; have yet to adapt to climate change and respond to large-scale epidemics. Environmental pollution in major urban areas tends to increase with complicated developments, causing negative impacts. The ability of the poor and migrant workers to access public services and social welfare in urban areas is still low and inadequate. Urban management and administration capacity are weak and slow in terms of innovation.

The above-mentioned limitations have their causes, mainly objective causes. The awareness of sustainable urbanization and urban development is not sufficient and not given due attention. The work of planning is slow to innovate, lacks vision, and has low quality; the implementation still has limitations, in many areas the adjustment of planning is still arbitrary. Institutions and policies on urban areas and urban development still lack synchronization and stability. The directive and implementation of laws, mechanisms, and policies on urban planning, construction, and development are not drastic and synchronous; urban management is not professional in many areas with insufficient performance and negativities. The assignment and cooperation of state management tasks in urban development are not clear, coherent, and uniform. The capacity and level of most officials and public employees managing urban areas is still weak. The work of inspection, detection, and handling of violations and negativities is not timely and strict; the supervision and social criticism of the Vietnamese Fatherland Front and unions have not been promoted effectively. An appropriate and uniform urban government model has not been developed in the whole country; the decentralization for urban governments is still limited; investment is still spread out and lacks synchronization; main resources of urban areas and social resources for urban development have yet to be promoted and used effectively; land management violations in urban development are still complicated.

II- VIEWPOINTS ON DIRECTIVE, OBJECTIVE, AND VISION

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- Urbanization is an objective necessity and an important motivation for a fast and sustainable socio-economic development in the coming time. Promotion of the leadership and directive of the Communist Party of Vietnam (CPV) and effective and efficient state management; unification of awareness and actions in completing institutions, planning, construction, management, and sustainable urban development towards a green, civilized, identity-rich city, pioneering, guiding innovative activities, and becoming a motivation for development are the regular and important tasks of the whole political system.

- Innovate thinking, reasoning, and methods for urban planning; ensure urban planning have a long-term, synchronous, and modern vision, having people and living quality as the center and culture and civilization as the foundation for development; harmoniously combine the process of urbanization and urban development with industrialization, modernization, construction of new rural areas, and reform of the economy, social development management, ensuring national defense and security. Urban planning and infrastructure development of urban areas must be one step ahead and create the main resource for urban development. Resolutely abolish tenure-oriented mindset suspended planning, bureaucratic administration ("ask-give mechanism”) and interest groups in constructing, adjusting, and supplementing planning.

- Focus on completing the legal system and promulgating outstanding and breakthroughs mechanisms and policies for sustainable urban development, and promoting economic growth in urban areas in a quick and effective manner. Ensure a synchronous and harmonious combination between urban renovation, embellishment, and reconstruction with the development of new urban areas, ensuring that architecture is modern, rich in identity, and typical cultural elements are preserved and promoted; strongly develop industrial linkages, regional linkages, and multi-dimensional connectivity advantages of urban areas; focus on reorganizing people’s life and economic development in the process of urban reconstruction and development; ensure a high quality of life in urban areas, satisfying the basic needs for housing and social infrastructure for urban residents.

- Develop a sustainable urban system according to a network, reasonable distributed, suitable for each region, ensuring the synchronization, consistency, and balance among regions; develop urban areas with general functions with a reasonable scale and population in the direction of green, smart urban areas, adapting to climate change, preventing and controlling natural disasters and epidemics; ensure high connectivity between urban areas under the Central government, central urban areas at the national level with regional urban areas and rural areas. Select urban areas with special advantages to build into centers of economy, finance, commerce, services, etc. with a high capacity to compete regionally or internationally.

- Implement stronger decentralization for urban governments in association with high responsibility, ensuring the unified leadership, directive, and management of the Central Government. Effectively promote and utilize resources from urban areas and resources from society for urban development. Facilitate and encourage economic areas, especially private economic areas to invest in urban development. Strictly handle violations in the implementation of regulations on urban planning, construction, and development.

2. Objective

a) General objective: Promote the speed and improve the quality of urbanization, develop urban areas according to the network, and form smart urban areas and chains of smart and motivational urban areas connecting with the region and the world. Institutions and policies on planning, construction, management, and sustainable urban development is basically completed. Urban infrastructure, especially framework technical infrastructure and essential social infrastructure is constructed and developed in a synchronous and modern manner. Economic growth in urban areas is fast, efficient, and sustainable. The living quality in urban areas is high, meeting the basic needs for housing and social infrastructure of urban residents. Urban architecture is developed in a modern, green, and identity-rich manner and typical cultural elements are preserved and promoted.

b) Specific target

- The urbanization rate will reach at least 45% by 2025 and above 50% by 2030. The ratio of land for urban construction to the total natural land area will reach about 1,5-1,9% by 2025 and about 1,9-2,3% by 2030.

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- The ratio of traffic land to urban construction land will reach about 11 – 16% by 2025, and 16 – 26% by 2030. The average green tree area per urban resident will reach about 6-8 m² by 2025, and 8 – 10 m² by 2030. The average residential floor area per capita in urban areas will reach at least 28 m² by 2025 and at least 32 m² by 2030.

- By 2025, fiber-optic broadband network infrastructure will cover over 80% of households in urban areas, universalizing 4G and 5G mobile network services and smartphones; the percentage of the adult population in urban areas with electronic payment accounts will reach over 50%. By 2030, universalize fiber-optic broadband internet services and 5G mobile network services, and the percentage of the adult population in urban areas with electronic payment accounts will reach over 80%.

- The economy of urban areas will contribute about 75% to the national GDP by 2025 and about 85% by 2030. The proportion of the digital economy in the GRDP of urban areas under the Central Government will reach an average of 25- 30% by 2025, 35 - 40% by 2030. Construct an internationally connected network of smart urban areas at national and regional levels and 3 - 5 urban areas with brand names recognized internationally and regionally by 2030.

3. Vision towards 2045: The urbanization rate will be in the averagely high group of the ASEAN region and Asia. The urban system is connected to a synchronous, unified, and balanced network among regions, capable of fighting against, adapting to climate change, preventing and controlling natural disasters, and epidemics, protecting the environment, and typical architecture that is identity-rich, green, modern, and smart. Construct at least 5 urban areas of international stature, holding the role of a focal point for connection and development with regional and international networks. The economic structure of urban areas will develop in a modern direction with sectors of green economy and digital economy accounting for a large proportion.

III. MAJOR TASKS AND SOLUTIONS

1. Completing institutions and policies to facilitate the urbanization process, work of planning, construction, management, and sustainable urban development

- Continue to complete policies and laws on land, investment, planning, urban development, architecture, and construction, ensuring transparency, consistency, and eliminating conflicts and overlaps. Synchronously amend, supplement, and complete laws on land, urban planning, construction, real estate trading, housing, etc. Soon to develop a legal framework for the development of smart urban areas, management of technical infrastructure of urban areas, and underground space of urban areas.

- Develop and standardize standards, target systems, and data on sustainable urbanization and urban development nationwide and for each region, locality consistent with international practices and actual situations in Vietnam; raise the standard for prevention and control of natural disasters, fires, explosions, environmental incidents, and epidemics, and protect the environment in urban construction works. Complete regulations on standards of urban-administrative units suitable for regions and urban areas with specific characteristics. Amend and supplement regulations on urban classification to ensure the compatibility and synchronization between master plans of administrative units and master plans of the urban system. Study and complete separate mechanisms, policies, and standards for construction and selection of sustainable urban development model suitable for each region and in mountainous areas, highlands, important areas for national defense and security, urban areas with many historical relics, cultural heritages, and natural landscapes that need to be preserved. Thoroughly settle the situation of raising the grade of an urban area when the criteria are not met.

- Complete laws, mechanisms, and policies to facilitate administrative divisions in handling inter-sectoral or inter-regional issues such as protecting the water source, connecting infrastructure, managing waste, using resources, land, public transportation, digital infrastructure, logistic, etc.; invest in the structure of regional infrastructure and general infrastructure, especially in industrial zones, export processing zones, and high-tech zones. Complete laws, mechanisms, and policies on coordination and control over planning and use of production land, land for construction of industrial zones, export processing zones, high-tech zones, and industrial clusters.

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2. Improving the quality of urban planning to meet requirements for construction, management, and sustainable urban development

- Comprehensively innovate methods, processes, contents, and products of the planning in the direction of multi-sectoral approach, covering a long-term, comprehensive, and strategic vision, respecting the market principles and rules on sustainable development; ensure the hierarchy, continuity, unity, completeness, and integration of the planning system, closely linked with rural planning; clearly define regions in the content of planning and apply development control tools according to planning and plans; associate urban planning with implementation resources. Develop a national data system on urban development planning; widely apply the geographic information system (GIS), digital technology, and digital foundation to planning and management of urban development.

- Organize planning, construction, and development of urban areas, especially planning for the construction of technical infrastructure, social infrastructure, public areas, planning for the management and use of connecting space, underground space, and urban underground works suitable for strategies, planning, and plans, ensuring national defense and security; closely associate the making of planning and urban development with tasks of making planning, managing and protecting military areas and terrain prioritized for national defense and security.

- Ensure the classification of urban land is in association with urban planning and land use purposes: planning and plans for using urban land shall be consistent with approved urban planning and infrastructure planning; strictly control the process of converting rural land into urban land according to planning and programs for urban development.

- Prioritize the implementation of urban development objectives according to planning in the strategies, planning, and plans for socio-economic development, medium-term and annual public investment plans of administrative divisions.  Complete regulations and sanctions to strictly handle violations in behind-schedule planning and urban projects; stipulate the responsibilities of heads of relevant committees and authorities at all levels in making and implementing urban planning.

- Strengthen the role of the Vietnam Fatherland Front, socio-political organizations, socio-vocational organizations, and the people in criticizing the making of urban planning and supervision of the implementation of such planning. Efficiently perform dissemination and universalization of laws, ensuring transparency, publicity, and easy access to information in urban planning.

3. Focusing on construction and development of a sustainable and synchronous national urban system in terms of network

- Develop strategies and planning for national urban development by 2030, with a vision toward 2045. Focus on developing urban regions, urban corridors, and coastal urban strips based on the clear determination of the role and function of each urban area, especially motivational urban areas of each region and the whole country and urban areas connected regionally and internationally. Identify urban development as the core element for regional socio-economic development and increase urban density in the northern midlands and mountainous areas, Central Highlands, and the Mekong Delta.  Develop a chain of marine and island urban areas in association with the Marine Economic Strategy, ensuring national defense and security; make planning for coastal urban areas in areas with solid foundations and stable elevations, convenient for traffic and fresh water supply in the future; strictly control and supervise sea encroachment for urban development. Invest in improving natural disaster resilience and climate change adaptation in coastal urban areas, the Mekong Delta, and vulnerable ecological zones.

- Synchronously develop and implement mechanisms and policies to develop Hanoi, Ho Chi Minh City, centrally affiliated cities, and central urban areas of regions into modern, smart, and leading urban areas, creating pervasive effects and alignment of urban areas. Use urban planning, socio-economic development planning tools and other market tools to strictly regulate and control the increase of urban population, especially in special urban areas. Synchronously implement decompression and load reduction policies for major urban areas, sending people to surrounding urban areas and promoting the development of satellite urban areas and city-attached city model. Tightly manage the development of high-rise buildings in major urban areas, especially in central areas. Prioritize the development of small urban areas (type V) and suburban areas to support rural development via urban-rural linkages. Invest in developing urban areas with heritage and tourism values associated with areas with great potential for tourism development.

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- Synchronously review and implement programs on urban renovation and reconstruction of urban areas. Finalize and evaluate the steering committee model for implementing planning and investing in construction in Hanoi and Ho Chi Minh City; study and develop management models of urban areas suitable for the new period.

4. Promoting the development of synchronous, modern, connective, and adaptive to climate change housing and urban infrastructure system

- Allocate resources and effectively implement the National Housing Development Strategy by 2030, with a vision toward 2045. Innovate methods and management and development models of social housing, especially housing for workers in industrial zones. Reform administrative procedures and facilitate households and individuals to construct and renovate their houses in accordance with urban planning and regulations on urban architecture management. Closely manage and supervise the development of high-rise buildings in major urban areas. Study and promulgate separate mechanisms and policies on investment in housing construction for workers in industrial zones in the direction of prioritizing the sufficient allocation of land funds to develop housing for workers and other institutions in industrial zones and considering housing for workers as an essential infrastructure of industrial zones. Incorporate housing development targets, including compulsory social housing development targets, into the 5-year and annual socio-economic development target system of the whole country and each province and city. Provinces and cities shall ensure the sufficient allocation of land funds for social housing development.

- Develop and implement investment programs for the development of urban infrastructure by 2030. Concentrate resources on investment in the construction and completion of the system of large-scale economic and technical infrastructure and digital infrastructure. Encourage the use of green materials, construction and development of green infrastructure, green works, and consumption of green energy in urban areas. Invest in the improvement of the capacity of the infrastructure system responding to climate change, especially in the Mekong Delta.  Focus on prioritizing the planning for a modern road and railway system, developing an appropriate waterway system, ensuring smoothness and regional linkages, and creating motivation for socio-economic development, national defense and security; make closed investments in ring roads, radial roads, and the public transportation system with high carrying capacity, stations, and parking lots in urban areas. Intensify the utilization of the system of underground space, urban underground works, and multi-functional space of urban areas. Implement the undergrounding of public service lines and cables in urban areas. Synchronously and drastically implement the classification of domestic solid waste at its source, promote the reduction, reuse, and recycling of domestic solid waste in urban areas, and promote modern technologies in waste recycling. Develop roadmaps and feasible solutions to limit individual vehicles, especially motorcycles, in major urban areas. Synchronously and promulgate incentive policies to encourage the use of environmentally friendly means of transportation in urban areas.

- Develop and promote investment in the synchronous development of digital infrastructure in urban areas equivalent to developed countries in the region and the world; effectively integrate systems of measurement, sensors, and data via platforms and application of digital technology to essential infrastructure in urban areas; promote smart management models in operating, managing, and utilizing technical infrastructure of urban areas. Restructure the infrastructure of technology and communications; establish a number of general digital platforms for urban areas.

- Synchronously upgrade, renovate, and develop a modern social infrastructure system in urban areas and a network that provides social infrastructure services. Integrate objectives and development orientations of the system of social infrastructure works and implementation resources into the process of forming and approving urban development plans. Continue to stipulate policies on tax incentives for social and urban service provision projects in large economic and industrial areas. Innovate organizational models and improve the efficiency of urban service enterprises. Diversify models of social infrastructure service provision; integrate the social infrastructure system with convenient focal points of traffic in large urban areas.

5. Developing and completing the model of urban authority; improving the effectiveness of urban management and the urban living quality, ensuring social security, welfare and urban security, safety, and order

- Summarize the pilot implementation of the model of urban authority and separate mechanisms, policies applicable to certain localities for use as a basis for yearly completion of institutions on urban authority. The study, arrangement, merger, and establishment of new urban administrative units must be comprehensive, synchronous, and consistent with the planning and requirements for development. Continue to complete the state management function of urban areas from the Central to local authorities at all levels; clearly define functions and tasks of focal state management agencies in charge of urban development at central and local levels.

- Decentralize and grant power to administrative divisions in urban management. Improve the capacity, effectiveness, and professionalism as per the requirement of urban authorities at all levels. Develop personnel resources for urban development. Develop professional working positions in association with raising the capacity of officials and public employees from central to local levels. Speed up the digital transformation in urban management, developing electronic authority towards urban digital authority closely associated with smart urban development. Finalize and complete the Capital Law and regulations on decentralization of management to Ho Chi Minh City and centrally affiliated cities suitable for requirements for decentralization and grant of autonomy to urban authorities.

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- Ensure the people’s right to freedom of residence and remove all barriers to labor transfer. Develop and complete mechanisms and policies to ensure that rural migrant workers and unofficial workers are integrated, have equal access to resources and opportunities to develop, and equally enjoy basic social services in urban areas. Expand the coverage of the social security system for migrant workers. Review and complete support policies on the study, vocational teaching, and employment for people whose land-use rights are revoked during the process of urbanization. Promote gender equality and adopt caring policies to create jobs for women in urban areas.

- Prioritize resources for developing basic social services in urban areas, especially educational, medical, and healthcare services. Increase investment and payroll to ensure that the development of systems of preventive medicine and grassroots health care in urban areas meets practical requirements. Complete models of central and local epidemic control and prevention agencies to ensure synchronization with the process of urban development and satisfy requirements for the protection, care, and improvement of the health of urban residents. Upgrade the infrastructure and complete the management system of emergencies and increase the capacity to prevent, control, and limit natural disasters and epidemics in urban areas.

- Develop and complete models of social security, order, and safety assurance in urban management consistent with actual requirements, focusing on applying digital technology during the implementation.

- Intensify measures to control and improve the air quality in urban areas and quickly reduce dust and noise pollution; synchronously develop systems for monitoring and supervising environmental quality in urban areas; focus on treating domestic wastewater and solid waste; fundamentally improve the state of environmental pollution and environmental sanitation in industrial zones, industrial clusters, and residential areas of low-income people in urban areas. Provide orientations and solutions for developing green buffer zones around urban areas and green agriculture serving urban areas.

- Increase comprehensive international cooperation in state management fields of construction and urban areas. Encourage urban areas to increase cooperation with international urban areas and organizations. Proactively and actively participate in the regional and international green, adaptive, identity-rich, and smart urban area networks.

6. Developing the economy of urban areas, innovating financial mechanisms, policies, and investing in urban development

- Effectively implement programs and projects for urban reconstruction to improve the effectiveness of land use for economic development in urban areas; effectively and sustainably utilize cultural and historical works and public spaces such as sidewalks in the economic development of urban areas. Speed up the orderly relocation of facilities of labor-intensive, manufacturing and processing, focal logistic centers, or facilities that pollute the environment or pose a risk of affecting people's safety outside the central areas of major urban areas; remake planning for systems of hospitals, universities, colleges, research facilities, logistic centers, shopping malls, focal markets, and networks of people’s markets.

- Develop service economy, advanced and strategic manufacturing industries, digital economy, circulating economy, sharing economy, night-time economy, tourism and sports economy, etc. in special and major urban areas; develop the economy in association with the rural and agricultural value chain and social services in small urban areas. Encourage the development of agricultural-industrial towns on the basis of existing rural residential areas becoming centers of service, manufacturing, processing, food, materials provision, technology transfer, etc. Promulgate incentive policies and increase models of coastal economic areas and industrial zones in association with urban development in coastal localities and models of industrial-urban-service zones in urban areas. Encourage urban areas to develop their brand names in association with the promotion of economic development of urban areas. Focus on developing personnel resources, especially high-quality personnel resources, in urban areas. Encourage urban areas to cooperate in constructing centers of innovation and creativity in association with strategic products and local strengths.

- Study and complete policies on tax and costs related to real estate to encourage the effective use of houses and land. Appropriately complete legal corridors and organizational models for the State to manage the real estate market; effectively control and use the added value from land when urban infrastructures, especially when traffic infrastructures are invested in expansion; utilize the land fund on both sides of the road to generate income for urban areas.

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IV- IMPLEMENTATION

1. Provincial committees, central committees, and CPV committees and designated representations  shall organize the study and introduce the Resolution to officials and CPV members; develop action plans and programs for the implementation of the Resolution with a specific roadmap and assignment; supplement and concretize targets stated in the Resolution into the annual plan according to each period of central authorities, administrative divisions, agencies, and units; periodically inspect and evaluate the performance.

2. The CPV Designated Representation of the National Assembly shall lead and direct the study, amendment, supplement, and completion of the law to facilitate the process of sustainable urbanization and urban development in the spirit of the Resolution; increase the supervision of construction and implementation of urban development strategies, planning, and policies; lead and promulgate pilot decrees on specific, outstanding mechanisms and policies consistent with the direction, orientation prescribed in the Resolution, and actual situations and requirements for development.

3. The CPV Designated Representation of the Government shall direct the construction and implementation of strategies, planning for the national urban development, National Programs on urban construction, renovation, embellishment, reconstruction, development, and infrastructure development, and other focal strategies, projects, programs related to urban development; develop and implement the Master Plan of administrative units at all levels by 2030, with a vision toward 2045; approve appropriate planning in the spirit of the Resolution; prioritize allocating adequate resources to implement tasks prescribed in the Resolution; urgently direct the review, supplement, and completion of legal documents under its management related to urbanization and urban development.

4. The Vietnam Fatherland Front and socio-political organizations shall develop supervision plans and programs for the implementation of the Resolution. 

5. The Central Department of Publicity and Education shall take charge and cooperate with the Central Economic Commission and related agencies in guiding the dissemination and thorough grasp of the implementation of the Resolution.

6. The Central Economic Commission shall regularly take charge and cooperate with relevant agencies in monitoring, guiding, inspecting, supervising, and urging the implementation of the Resolution; periodically submit preliminary and final reports on the implementation of the Resolution to the Political Bureau and the Secretariat.

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