The Ministry of Construction is working on a draft decree on urban development investment which is expected to serve as a more powerful tool for local administrations in controlling urban development.
As provided in the 56-article draft decree designed to replace Government Decree No. 02/2006/ND-CP of January 5, 2006, urban development areas would be determined based on approved master plans, zoning plans and local socio-economic conditions. Meanwhile, urban development projects may be formulated on the basis of land areas or specialized infrastructure facilities but must comply with approved master plans.
The Prime Minister would personally decide on several types of urban development areas, including areas under master plans already approved by himself, areas within the boundaries of two provinces or centrally run cities, areas of great importance in terms of political, economic and socio-cultural affairs or security and defense, and areas with future urban centers of a population size the same as that of an urban center of grade IV or higher. The cabinet head would consider the Ministry of Construction’s appraisal opinions before making decision.
Currently, investors have to seek permission from the Prime Minister only when they wish to implement projects to develop a new urban center on an area of 200 ha or more. Under the draft decree, the Prime Minister would approve the selection of investors for projects to build new urban centers occupying an area of 100 ha or more and projects to renovate or re-build existing urban centers on an area of 50 ha or more. Investors of projects to be implemented in two provinces or centrally run cities or in areas of national importance would be chosen only when after they are approved by the Prime Minister. For other projects, investors would be assigned by provincial-level People’s Committee chairpersons after obtaining the Ministry of Construction’s approval.
Additionally, investors must be financially qualified, have their equity capital accounting for at least 30% of the total funds for building infrastructure items under projects and obtain banks’ written commitment to providing sufficient funds for their projects.
The Vietnamese version of the draft decree is now available at the Ministry of Construction’s website www.moc.gov.vn.-