The Law on the Capital 2026 was approved by the 16th National Assembly on April 23, 2026, and will take effect on July 1, 2026.
The law grants Hanoi 199 special mechanisms and policy authorities, including 127 powers assigned to the Hanoi People's Council, 56 to the Hanoi People's Committee and 16 to the Chairman of the Hanoi People's Committee. This provides an important legal foundation for Hanoi to take greater initiative in governance, administration and development under the principle that "local authorities decide, local authorities implement and local authorities are accountable."
Bringing the Capital Law into practice creates new momentum for Hanoi's development.
A key highlight of the 2026 Capital Law is its strong decentralization and delegation approach, combined with power control, accountability, inspection, supervision and performance evaluation.
Granting Hanoi additional authority is not intended to create a separate legal framework outside the national legal system. Instead, it is designed to help the capital address issues unique to a major metropolis that serves as the nation's political and administrative center as well as a major hub for culture, education, science, economic development and international integration.
Regarding special development mechanisms and policies, the law gives Hanoi greater autonomy in planning, managing development space and carrying out urban renovation, upgrading and redevelopment projects. It also provides tools to address challenges related to population density, environmental management, infrastructure, transportation, land use and delayed projects.
At the same time, the law introduces mechanisms for underground development and the use of low-altitude airspace, promotes new economic models and supports transit-oriented development (TOD) for urban rail systems while enabling the city to capture increases in land and infrastructure value for reinvestment.
The law also authorizes the Hanoi People's Council to decide on special mechanisms and policies for major projects and works of significant importance after obtaining approval from competent authorities. For projects covered under National Assembly Resolution No. 258, the city may be granted extensions of up to six months to fulfill conditions required for construction commencement. This provides a legal basis for Hanoi to address bottlenecks in investment preparation and accelerate the implementation of key projects and infrastructure developments.
In terms of finance, budgeting and tax incentives, the law selectively expands eligible beneficiaries for incentives and support while introducing more flexible budget management mechanisms. This enables the city to mobilize, allocate and utilize development resources more effectively.
The law also includes provisions encouraging new economic models such as free economic zones and free trade zones. For delayed projects, it establishes specific handling mechanisms requiring completion before July 1, 2030, while ensuring that violations are not retroactively legitimized.
In the infrastructure sector, Hanoi is authorized to develop urban rail networks based on the TOD model, which integrates urban development with public transportation hubs. The city may also capture value gains from land and infrastructure development and reinvest those proceeds into future projects.
In addition, the law introduces regional cooperation mechanisms, establishes a Capital Region Development Fund and allows local budget resources to be used for inter-regional projects. These measures strengthen Hanoi's leadership and connectivity role within the Capital Region.
Regarding urban order and safety, the 2026 Capital Law permits stronger enforcement measures against violating structures, including those built in violation of planning regulations, without permits or in breach of fire safety or environmental requirements that remain uncorrected. These provisions aim to uphold urban discipline, protect lives and property and create a safer and more civilized living environment.
The law grants Hanoi additional authority in the protection and development of culture, sports, heritage and cultural industries. The Hanoi People's Council may establish policies encouraging social participation, allocate budget resources for preserving and promoting cultural and historical values and support artists, artisans, heritage practitioners, athletes and coaches. It may also introduce mechanisms for developing commercial-cultural zones, cultural industry centers and honorary titles recognizing outstanding citizens.
The Hanoi People's Committee is authorized to issue regulations on the management, protection, restoration and preservation of historical sites and valuable architectural works. It may also establish public-private partnership mechanisms for operating such facilities and make decisions on certain matters related to national and special national heritage sites after consultation with central government agencies. Investment projects in sports, cultural industries and related sectors may benefit from incentives provided by the city.
In education, the law allows the Hanoi People's Committee to supplement local educational content without altering the objectives or core curriculum of the national education program. This creates opportunities to incorporate Hanoi's history, culture, traditions, identity and development priorities into educational activities, helping foster civic responsibility and a stronger sense of attachment to the capital among younger generations.
In healthcare, medical facilities operating in the city are required to support the capital's healthcare system, particularly in emergency response, healthcare services and coordinated public service delivery. This provides a foundation for improving healthcare capacity in a densely populated and rapidly growing urban area.
Notably, the 2026 Capital Law also expands the framework for piloting new policies. Such pilot programs must have defined timeframes, scopes, impact assessments, risk-control measures and suspension mechanisms if unforeseen issues arise. This approach allows Hanoi to test innovative governance models while maintaining caution, transparency and accountability.
Another significant provision establishes exemptions from legal liability for officials and civil servants who act within their authority, follow proper procedures and act without personal gain but still incur losses due to objective factors or unforeseen risks. The provision encourages initiative, innovation and accountability in pursuit of the public interest while remaining subject to broader power-control, oversight and accountability mechanisms.
Immediately after the law was passed, Hanoi issued an implementation plan to ensure timely, synchronized, consistent and effective enforcement. The plan links the implementation of the Capital Law with the execution of Politburo Resolution No. 02-NQ/TW, dated March 17, 2026, on building and developing the capital in a new era, as well as Hanoi's 100-year master development plan.
The city has committed to implementation under the principle of "six clear elements": clear responsibilities, clear tasks, clear timelines, clear accountability, clear outputs and clear authority. This principle is considered essential to prevent overlap, ambiguity, responsibility shifting and implementation delays.
The 2026 Capital Law presents major opportunities, but those opportunities can only become reality through determined, scientific and responsible implementation. Therefore, every department, agency and locality must proactively develop detailed plans, assign responsibilities, establish timelines and outputs, allocate resources and strengthen coordination mechanisms.
For public officials and civil servants, studying and fully understanding the Capital Law is a mandatory requirement to provide accurate policy advice, ensure proper implementation and deliver better services to residents and businesses.
For citizens, understanding the law is not only important for protecting their rights and interests but also for fulfilling civic responsibilities, participating in oversight and contributing ideas to the development of the capital.
With proactive preparation, implementation guided by the "six clear elements" principle, active participation from all levels of government and broad public consensus, the 2026 Capital Law is expected to become a powerful driver helping Hanoi realize its development aspirations in a new era.