The draft revised Capital Law is expected not only to remove bottlenecks in urban management and development but also to create a legal foundation for Hanoi to pilot new mechanisms and policies, take the lead in modern urban governance, digital transformation, science and technology development and attract high-quality human resources.

This was the focus of the seminar titled "Revised Capital Law: Institutional momentum for Hanoi's breakthrough," held on March 27 in Hanoi by the Government Portal.

The Government has submitted the draft law to the National Assembly, proposing special mechanisms and policies to grant Hanoi greater authority, expand decentralization with accountability and create sufficient institutional space for the capital to serve as a growth engine for the Red River Delta and the nation.

Expanding decentralization with accountability

At the seminar, Nguyen Quoc Hoan, Director General of the Department of Legal Normative Documents under the Ministry of Justice, said the draft law aims to achieve several objectives.

First, it seeks to establish advanced and distinctive institutional frameworks to ensure long-term stability and support Hanoi's 100-year development goals, consistent with its role as a special urban center and the nation's political-administrative hub.

Second, it aims to position Hanoi as a policy designer, shifting from merely implementing policies to proactively shaping them, thereby equipping the city with sufficient legal tools to drive and spread development across the capital region and beyond.

Third, it promotes comprehensive decentralization tied to financial responsibility under the principle that local authorities decide, act and are accountable.

Hoan noted that the revision helps institutionalize Party policies on Hanoi's development and address key bottlenecks in a rapidly changing context, requiring strong legal mechanisms for timely solutions.

Under the draft law, 192 authorities are decentralized from the central level to Hanoi, including 141 new powers not currently stipulated.

Many important powers will be directly assigned to the Hanoi People's Council and People's Committee, creating greater autonomy in urban governance and development.

Nguyen Phuong Thuy, Vice Chairwoman of the National Assembly's Committee on Legal and Judicial Affairs, emphasized that the breakthrough lies not only in the number of delegated powers but also in their scope and depth.

The draft law grants Hanoi autonomy in four major areas.

First, in organizational structure and personnel, the city can flexibly arrange agencies, define job positions, manage staffing and design appropriate personnel mechanisms, enabling the development of a capable and motivated civil service.

Second, in institutions and policies, Hanoi is empowered not only to implement national regulations but also to issue specific mechanisms and even pilot policies differing from existing rules.

Third, in planning and urban space management, the city gains authority to develop and adjust plans while managing underground, low-level and high-rise spaces as key to addressing congestion, infrastructure overload and population distribution.

Fourth, in finance and investment, Hanoi can retain part of increased revenues and independently decide on major projects, shortening procedures and improving efficiency.

Alongside decentralization, the draft law also establishes multi-layered oversight and accountability mechanisms, from National Assembly and Government supervision to public monitoring.

Opening new development space for the capital

Addressing new features of the draft law, Vice Chairman of the Hanoi People's Committee Truong Viet Dung said the revision goes beyond technical adjustments and introduces a new development model with a long-term vision linked to the 100-year master plan.

He emphasized that the core of the draft law is to equip Hanoi with foundational tools for proactive development, including five key instruments: finance, institutions, PPP, resources and especially data for decision-making.

From a governance perspective, the law is built on three major pillars.

The first is enhanced decentralization, granting Hanoi around 191 additional responsibilities. However, this means not just more authority but also greater accountability.

The second pillar is urban financial tools, particularly linked to infrastructure development and urban spatial restructuring. A notable innovation is the ability to capture land value from transit-oriented development (TOD).

Dung noted that the new plan envisions about 19 urban railway lines totaling nearly 900 kilometers, with estimated investment of $86 billion. The draft law allows Hanoi to leverage land and urban space along these corridors to mobilize resources.

The third pillar is growth model transformation. For the first time, Hanoi is given a comprehensive institutional framework to shift from capital- and labor-driven growth to one based on science, technology, innovation and digital transformation.

"This is the key driver for achieving growth of over 10% in the coming period," Dung affirmed.

Regarding implementation resources, he said infrastructure and urban development will require substantial investment.

For 2026–2030, Hanoi is expected to need around VND5 quadrillion (nearly $190 billion), with about two-thirds mobilized from social resources. By 2045, demand could reach VND25 quadrillion ($949.2 billion).

To meet these needs, the draft law introduces diverse funding mechanisms, including state budget, socialized investment, PPP and efficient use of urban assets and data.

Dung emphasized that the combination of these five tools will create a strong institutional ecosystem, enabling Hanoi to develop synchronized infrastructure, build a modern multi-layered urban system and move toward green growth and net-zero emissions in the long term.

"This revision is truly transformative, not only removing bottlenecks but also opening new development space for the capital," he said.