On March 18, the National Assembly Standing Committee discussed the draft amended Capital Law under the chairmanship of Tran Thanh Man, Politburo member and Chairman of the National Assembly, and the moderation by Party Central Committee member and Vice Chairman of the National Assembly Nguyen Khac Dinh.

During discussions, delegates expressed strong consensus on the need to revise the law and called for further refinement to ensure clarity, feasibility, coherence and long-term vision, while both creating breakthroughs for Hanoi and maintaining the unity of the legal system.

Expanding resources for the capital

Speaking at the session, Head of the National Assembly's Economic and Financial Committee Phan Van Mai expressed strong support for the draft's approach to enhancing decentralization.

He noted that greater authority would create sufficient "policy space" for Hanoi to proactively develop and contribute more significantly to the country.

Mai emphasized that the core principle is to establish superior legal mechanisms that enable Hanoi to grow faster and more efficiently.

Policies should focus on generating greater added value and "expanding the overall pie," rather than merely redistributing resources.

Citing data, he said that over the next three years, total national budget revenue is expected to exceed VND3 quadrillion (US$114 billion) annually, with Hanoi and Ho Chi Minh City contributing about two-thirds.

Without clear policy design, this could raise concerns among other localities. Therefore, policies must ensure balanced and mutually beneficial outcomes.

Regarding Article 21 of the draft law, Mai suggested redesigning provisions to clarify development investment resources, including adjusting revenue-sharing ratios, improving budget reward mechanisms and increasing targeted support from the central budget.

The law should also expand borrowing mechanisms for Hanoi, ensuring repayment capacity from additional revenue, potentially calculated by project or phase.

He also stressed promoting public-private partnerships, using public funds to attract private investment.

On organizational models, Mai proposed considering regulations on economic zones or special administrative-economic units, allowing the Standing Committee to decide through resolutions for greater flexibility.

Regarding regional linkage, he recommended stronger mechanisms for the Red River Delta and Southeast regions, which together contribute over 60% of national GDP and suggested issuing a separate resolution to define scope, governance mechanisms and development resources.

He also called for careful legislative drafting to avoid overlapping provisions and ensure clarity, particularly regarding Hanoi's authority to issue regulations, avoiding any perception that the capital can arbitrarily diverge from central laws.

Also speaking, Head of the National Assembly's Committee on Science, Technology and Environment Nguyen Thanh Hai supported the draft and expressed hope it can be implemented immediately upon adoption.

She stressed the need to ensure consistency with existing laws, especially in science, technology and innovation.

Regarding Article 14 on underground and low- and high-altitude space, she noted that while exploitation is necessary, many aspects remain under study and lack comprehensive legal frameworks, requiring careful consideration to ensure feasibility.

Creating space for innovation in special urban governance

Addressing the session, Chairman of the National Assembly Tran Thanh Man emphasized that the amended Capital Law must align with the new Politburo resolution replacing Resolution No. 15-NQ/TW on Hanoi's development to 2030 with a vision to 2045, as well as conclusions by General Secretary To Lam during his working visit to Hanoi.

He underscored that the law should function as a framework law, avoiding excessive detail and allowing Hanoi to make specific decisions.

Man supported the principle of maximum decentralization and comprehensive autonomy for Hanoi, calling it the most significant breakthrough compared to the 2024 Capital Law, aimed at removing administrative bottlenecks and fostering innovation in urban governance.

Quoting the proverb, "Even easy tasks fail without public support, while difficult ones succeed with it," he stressed the importance of public consultation on key issues.

He also called for safeguards to prevent abuse of power or legal conflicts, particularly in land and environmental matters, including provisions for transparency, public consultation and post-implementation evaluation.

On fiscal mechanisms, he emphasized the need for a legal framework that enables Hanoi to mobilize comprehensive resources, achieve double-digit growth and compete internationally.

He also highlighted the importance of capable and ethical officials as the foundation of effective governance.

Man further noted the need to address urban planning, regional connectivity, especially transportation links across the Red River Delta, and strengthen oversight and accountability mechanisms.

He proposed developing a detailed list of special authorities in an annex to ensure compliance and clarity.

On legislative technique, he urged concise, clear provisions that are easy to implement rather than overly general language.

Concluding the discussion, Vice Chairman of the National Assembly Nguyen Khac Dinh stated that the Standing Committee agreed the draft law dossier meets all conditions for submission to the 16th National Assembly for consideration and approval at its first session under a streamlined procedure after incorporating feedback.

He noted that strict uniformity with the broader legal system is not required for the amended Capital Law, as it is designed to introduce distinct and superior mechanisms compared to other laws.

He emphasized that since the Party, State and National Assembly assign Hanoi greater responsibilities, the city must be given appropriate mechanisms and policies to fulfill them.

Thus, the law's special provisions will primarily apply to Hanoi.

The National Assembly's Standing Committee also agreed in principle to allow the capital's authorities to issue regulations that may differ from higher-level regulations or fill gaps where no rules exist, enabling flexibility, innovation and breakthroughs.

This approach aims to improve governance effectiveness, adopt advanced standards and strengthen Hanoi's role as a leading growth engine for the capital region and the country.

At the same time, the committee emphasized the need to clearly define applicable scopes and sectors and to establish strict conditions and procedures to ensure feasibility and enforceability.

The National Assembly's Standing Committee broadly supported provisions granting maximum decentralization and comprehensive autonomy in areas including governance organization, personnel policy, public service regimes, talent attraction, urban planning, environmental management, public order, socio-cultural development, science and technology, innovation, digital transformation and development resources.

It also called for further review of decentralization provisions to ensure full and timely institutionalization of Party policies, particularly the new Politburo resolution on Hanoi's development and directives from General Secretary To Lam.