DECREE

INVESTMENT MANAGEMENT OF URBAN DEVELOPMENT

Decree No. 11/2013/ND-CP dated January 14, 2013 of the Government of Vietnam on investment management of urban development, effective as of March 1, 2013, is amended by:

(1) Decree No. 100/2018/ND-CP dated July 16, 2018 of the Government of Vietnam on amending and annulling some regulations on necessary business conditions in fields under the state management of the Ministry of Construction of Vietnam, effective as of September 15, 2018;

(2) Decree No. 31/2021/ND-CP dated March 26, 2021 of the Government of Vietnam on elaboration of some Articles of the Law on Investment, effective as of March 26, 2021;

Pursuant to the Law on Government Organization of Vietnam dated December 25, 2001;  

Pursuant to the Law on Construction dated November 26, 2003; Law No. 38/2009/QH12 of 2009 on amending and supplementing a number of articles of laws relating to the investment in capital construction dated June 19, 2009;

Pursuant to the Law on Real Estate Business dated June 29, 2006;

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At the request of the Minister of Construction of Vietnam1;

The Government of Vietnam hereby promulgates the Decree on Investment Management of Urban Development;

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. Scope:

This Decree provides for activities related to urban development investment including: urban planning; preparation and disclosure of plans to deploy areas of urban development; investment in construction and operation, and transfer of investment in urban development projects.

2. Regulated entities:

This Decree applies to organizations and individuals in Vietnam and abroad involved in activities related to investment in urban development.

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For the purpose of this Decree, the following terms shall be construed as follows:

1. Urban development area is an area identified for urban development investment in a certain period. The urban development areas include: new urban development area, expanded urban development area, renovation area, conservation area, urban reconstruction area and specific functional area.

Urban development area may include one or more urban functional areas. The urban development area may be within the administrative boundaries of one or more provinces or cities. The urban growth area may include one or more urban development investment projects.

2. New urban development area is an area expected to be formed a new urban area in the future under urban planning approved by the competent authority, and invested in new construction synchronizing with the urban infrastructure.

3. Expanded urban development area is the urban development area including the existing urban area and new urban area with a synchronous connection with the urban infrastructure.

4. Urban improvement area is the urban development area which is invested in construction to improve the quality of existing urban area, but does not alter the basic urban structure.

5. Urban conservation area is the urban development area in order to preserve and refurbish urban historical and cultural values.

6. Urban reconstruction area is the urban development area which is newly built on the floor of the old buildings demolished of the existing urban area.

7. Specific functional area is an urban development area to form specific functional areas such as economic, tourist and resort areas, college campuses, etc.

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Urban development investment project including project on investment in urban area construction and project on investment in construction of works in urban areas.

9. Urban area construction investment project is a construction investment project on buildings (which may include: housing, infrastructure, public buildings, etc.) on an assigned land area in the urban development area under the planning approved by the competent authority.

Urban area construction investment project includes the following types:

a) New urban area construction investment project is a construction investment project on a new construction urban area on a land area converted from other land types to urban construction land;

b) Urban reconstruction project is a project which shall build new architectural buildings and infrastructure on the floor of current buildings demolished under the urban planning approved by the competent authority;

c) Urban renovation and refurbishment project is the upgrading and renovation of exterior side or building structure in the existing urban areas without any change of more than 10% of the land use criteria of the area;

d) Urban preservation and refurbishment project is the preservation and refurbishment of cultural, historical and architectural values​​ of the buildings and landscape in the area of urban cultural heritage;

dd) Mixed urban area construction investment project means urban area construction investment projects that can include newly-constructed buildings, renovated and refurbished buildings.

10. Project on investment in construction of works in urban area is the new construction investment project; either expanding or renovating and refurbishing of architectural buildings and infrastructure.

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12. Level 1 investor is the person assigned by the State to implement the urban development investment project. The level 1 investor may be:

a) Functional state management agencies;

b) Management Board of construction investment assigned by the competent state agencies

c) Enterprises of all economic sectors, cooperatives;

d) Political and socio-occupational organizations qualified as prescribed by laws.

13. Secondary investor is the level 2 investor or investor of subsequent levels involved in urban development investment project through the lease, assignment or transfer of land use right with infrastructure under the urban development investment project for investment in construction of works.

14. Urban services are public services provided in urban areas such as: management, operation and maintenance of the system of technical infrastructure; hygiene and environmental protection; park and tree management; urban lighting, water supply and drainage; condominium management; funeral services, waste treatment; public transport; protection of order and security in the urban development area; health, education, commerce, entertainment, sports and other public services.

Article 3. Principle of urban development investment

1. Ensuring the consistent master plan of socio-economic development of provinces and the nation, complying with construction planning, urban planning, urban development deployment plans, law on construction investment and related laws.

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3. Ensuring the exploitation and use of resources economically and efficiently; environmental protection and response to climate change, natural disasters aimed at sustainable development.

4. Creating a good living environment for urban residents; protecting the interests of the community in conformity with the interests of the State and the investors.

5. Preserving and promoting the national cultural identity, preserving and refurbishing cultural and historical remains.

Article 4. Land reserved for urban development

1. Provincial People's Committee shall assign Departments of Construction as the focal agency to develop the urban development programs for the whole province and each urban area for submission to the provincial People’s Committee for approval.

2. Provincial People's Committee shall, based on urban planning and urban development programs, plans for urban development area implementation, land use plan approved by the competent authority, direct organizations to provide land for disclosed urban development investment projects in the urban development area.

3. Provincial and district-level People's Committee as decentralized shall organize the implementation or guide the investor to carry out the compensation, assistance and resettlement upon land recovery as prescribed by land laws.

4. The allocation or lease of land for urban development investment is made based on the results of the selection of investors via the forms of appointment, bidding, and land allocation for the construction of social housing or auction as prescribed by laws.

5. The recovery of the whole or part of the land allocated or leased for urban development investment projects which have not been implemented or fallen behind schedule shall comply with land laws.

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7. Provincial People's Committees shall specify the areas permitted to execute the transfer of land use rights with the complete infrastructure investment for people to build their own houses under detailed planning of the approved project after having the written consent of the Ministry of Construction of Vietnam.

Article 5. Investment capital for urban development

1. Investment capital for urban development areas include: the state budget, official development aid (ODA) and capital from other economic sectors.

2. Provincial People's Committees are entitled to use existing investment funds (including: local development investment fund, land development fund infrastructure development fund, housing development funds, etc.) to create investment funds for urban development areas.

Article 6. Encouragement, supporting and incentive for investment in urban development projects

1.  The State shall have policies to encourage, support and favor the urban development investment projects with one or more of the following criteria:

a) Investing in construction framework technical infrastructure, social infrastructure to serve the public interest without capital recovery and not in the list of the buildings in which the investors are required to invest;

b) Investing in social housing, relocation housing and renovating and rebuilding residential areas, old condominiums in accordance with the law;

c) Investing in housing construction for lease;

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2. The State shall have supporting policies including:

a) Promptly publishing and providing free-of-charge information on the planning and deployment plan of urban development area.

b) Supporting the investment in projects to strengthen the capacity of public services to the area.

3. Other incentive cases as prescribed by laws.

Chapter II

URBAN DEVELOPMENT AREA

Article 7. Requirements for the preparation, appraisal and approval of urban planning

1. The preparation, appraisal and approval of construction planning, and urban planning shall comply with the Law on Construction, Law on Urban Planning, and related guiding documents.

2. For urban areas expected to have their boundaries expanded or urban development areas with an anticipated population size equivalent to the level I urban area or more, provincial People's Committees shall submit tasks and general schemes to the Ministry of Construction of Vietnam for appraisal and presentation to the Prime Minister of Vietnam for approval.

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4. For the subdivision scheme with the population size equivalent to grade IV or more at special urban areas, level 1 urban areas and the centers with the scale determined in the master plan approved equivalent to level-1 urban area, the provincial People's Committee shall consult the Ministry of Construction of Vietnam before the approval of the competent agency;

5. The time limit for the Ministry of Construction of Vietnam to consider providing opinions on the subdivision scheme specified in Clause 4 of this Article shall not exceed 15 working days from the date of receipt of the written consultation and dossier of the planning scheme.

Article 8. Responsibility for preparation of proposal dossiers on urban development areas

Provincial People's Committees shall, based on the master plan for socio-economic development, regional construction planning, general urban planning, subdivision planning, and urban development program, prepare proposal dossiers on urban development areas for submission to the Prime Minister of Vietnam for decisions or decide development areas within their jurisdiction as specified in Article 9 of this Decree.

Article 9. Competence to decide on urban development areas

1. The Prime Minister of Vietnam shall decide on the following urban development areas after obtaining the appraisal opinion of the Ministry of Construction of Vietnam on the contents specified in Clause 3 of this Article:

a) Urban development areas in the urban areas with the general planning scheme under the approval competence of the Prime Minister of Vietnam;

b) Urban development areas within the administrative boundaries of two or more provinces;

c) Urban development areas in order to form a new urban area with the population size equivalent to level IV or more under the approved plan;

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2. Provincial People's Committee shall decide on the remaining urban development areas.

3. Appraisal contents to propose the urban development areas:

a) The conformity with the master planning for socio-economic development, the orientation of master planning for national urban systems, and planning and development strategies of other sectors associated with national security;

b) Conformity with the approved master planning, subdivision planning, and urban development programs;

c) The feasibility of implementation plans for urban development areas.

4. The number of dossiers proposing the urban development areas sent to the Ministry of Construction of Vietnam for appraisal is 10 sets.

5. The time for appraisal of proposal dossiers shall not exceed 30 working days.

6. Content of the Draft Decision on approval of the urban development areas shall comply with the form prescribed in the Appendix enclosed with this Decree.

Article 10. Content of proposal dossiers on urban development areas

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2. Summary report on the expected urban development area includes:

a) Name of the urban development area;

b) Location and boundaries of the urban development area (with schematic illustration);

c) Description of the current state of the urban development area;

d) Explanation about the foundation of the urban development area;

dd) Nature and/or main functions of the area;

e) Introduction of the basic content of the approved urban master planning;

g) Implementation plan for the urban development area;

h) Estimated time limit of implementation;

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k) Proposal of the form of management or establishment of the Management Board of urban development area as prescribed in Article 13 of this Decree. Establishment or use of existing Management Boards of urban development areas to manage each urban development area;

Article 11. Content of implementation plan for urban development area;

1. Determination of the list of projects in the urban development area based on the subdivision planning for level IV urban cities or higher and the master planning for level V urban cities and specific functional areas.

2. Determination of the order of construction and implementation progress of urban development investment projects to ensure the implementation of the framework technical infrastructure projects and some urgent social infrastructure works of the area before the implementation of the component projects.

3. Relocation and resettlement plans.

4. Capital plan and capital mobilization model.

5. Organization of management and implementation under capital mobilization models.

Article 12. Disclosure of urban development area and implementation plan.

1. Within 30 days after the decision on approving the urban development areas, the provincial People's Committees shall disclose the urban development areas and implementation plans, provide information, and create favorable conditions for investors to invest in urban development projects.

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3. The disclosure shall include the main content of the Decision on approving the urban development areas and implementation plans for urban development areas for the investors to know, choose, and make decisions on investment in projects.

Article 13. Management Board of urban development area

1. Location, function of Management Boards of urban development areas:

a) Depending on local conditions, the Chairman of the provincial People’s Committee shall decide to set up the Management Board of the urban development area according to Clause 2 of this Article. The Management Board of the urban development area is the public unit under the provincial People’s Committee with legal status and seal and is subject to the directive and management of the organization and operation of the provincial People’s Committee and directive and professional instruction of the Construction Department and the local specialized management departments;

The Management Board of the urban development area shall have the functions to assist the provincial People’s Committee in implementing ​​a number of tasks of urban development investment management in the urban development area, including Managing and supervising the process of urban development investment as planned; ensuring synchronous connection and managing the system of framework technical infrastructure, technical infrastructure connection between projects in the construction investment stage; directly managing projects using state budget capital assigned by the provincial People’s Committees; performing other tasks of implementing urban development areas as assigned by the provincial People’s Committee.

2. Cases of establishment or dissolution of Management Boards of urban development areas:

a) Urban development areas must have Management Boards, including urban development areas in the urban areas with the master planning scheme under the planning authority of the Prime Minister of Vietnam; the urban development areas specified in Clauses 2, 5, 6, 7, Article 2 of this Decree;

b) Except for the urban development areas that must have Management Boards specified in Point a, Clause 2 of this Article, for the remaining urban development areas, the Chairman of the provincial People’s Committee shall, based on the local urban development needs, decide on the establishment or non-establishment of Management Boards of urban development areas;

c) Depending on the needs of urban development, scale, and importance of the urban development areas and the conditions for local socio-economic development, a province may establish one or more of the Management Boards of urban development areas; one Management Board can also be assigned to manage one or more urban development areas;

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dd) Chairman of the provincial People’s Committee shall decide to dissolve the Management Board of an urban development area after it has completed its assigned tasks as prescribed by laws or when those tasks are transferred to another Management Board.

3. Management Boards of urban development areas shall:

a) Take charge and cooperate with relevant agencies in preparing the 5-year plan and annual plan to implement urban development areas and submit them to provincial People’s Committees for approval and implementation;

b) Organize activities to promote investment in urban development areas; study and suggest preferential policies and specific mechanisms for application to the construction investment in urban development areas;

c) Prepare plans to select investors for projects on urban development and submit them to provincial People's Committees for decisions; guide and assist investors in the process of investment preparation and implementation of investment projects on urban development;

d) Organize the management or perform investor functions for projects in urban development areas with the use of state budget assigned by provincial People’s Committees;

dd) Monitor and supervise the implementation of urban development investment projects to ensure conformity with the planning and progress according to the approved project contents; summarize, propose, and cooperate with the competent agencies in handling problems and difficulties arising in the course of investment implementation;

e) Take charge and cooperate with other agencies, service providers, and investors in ensuring the synchronous connection and management of framework technical infrastructure and technical infrastructure connection between the projects in the construction investment phase until the completion of the handover to urban authorities;

g) Develop the database system, provide information on urban development areas; summarize and prepare reports for submission to provincial People's Committees and the Ministry of Construction of Vietnam every 6 months, annually, or irregularly on the performance of investment projects and deployment plans for urban development areas assigned for management;

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4. The operational costs of Management Boards of urban development projects are partially covered by the state budget, the assigned funding for the management of projects, and the service revenues as prescribed by laws.

Chapter III

URBAN DEVELOPMENT INVESTMENT PROJECT

Section 1. URBAN AREA CONSTRUCTION INVESTMENT PROJECT

Article 14. Detailed planning for projects

1. The preparation, appraisal, and approval of the detailed planning for urban area construction investment projects shall comply with urban planning laws.

2. Adjustments to the detailed planning for projects shall comply with urban planning laws and not exceed the satisfactory capacity of the urban infrastructure system determined in the scheme for urban planning approved without adversely affecting the urban landscape or reducing the quality of life of local residents.

3. The preparation and adjustment to the detailed planning for urban development projects s identify technical infrastructure construction space of common use to determine the layout of lines, technical tanks, trenches, and tunnels.

Article 15. Management of construction investment implementation

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Article 16. (annulled) 2

Article 17. Level 1 investors shall:

1. Prepare detailed planning (if the project area does not have any approved detailed planning), urban design, and urban area construction investment projects for submission to competent authorities for approval, and comply with the approved detailed planning.

2. Implement the investment in the construction of works according to the approved detailed planning and progress of the approved project.  

3. Invest in the construction of technical infrastructure and social infrastructure works, ensuring synchronization with the infrastructure system of the surrounding area and conformity with the progress of the approved project.

4. Ensure a temporary connection between the technical infrastructures in the project area with the technical infrastructure systems outside the scope of the project in case the latter has not been invested according to the approved planning.

5. Implement the requirements of provincial People's Committees on the contribution to the area infrastructure development and allocation of land area with the infrastructure to create social housing construction funds according to housing laws.

6. Organize activities to provide housing management services, technical infrastructure systems, and other urban services within the scope of the project pending the handover.

7. Manage the operation and ensure the quality of the works which are not transferred or have yet to be transferred to local authorities.

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9. Provide guidelines on procedures and cooperate with the secondary investors (if any) in performing the procedures for the transfer of land with the technical infrastructure or other products of the project in compliance with laws.

10. Perform other obligations as prescribed by law.

Article 18. Tasks of secondary investors

Secondary investors shall perform the tasks prescribed in Clauses 1 through 8, Article 17 of this Decree.

2. Secondary investors shall be subject to the management of level 1 investors in the construction process, ensure compliance with the approved detailed planning, and carry out the construction investment according to the contract signed between the two parties, construction laws, and relevant laws.

3. Secondary investors perform other obligations as prescribed by law.

Article 19. Changes to investors

1. Changes to investors refer to cases where an investor transfers the entire urban development project to another investor.

2. Changes to investors must not alter the objectives of the project and must ensure the interests of customers and other related parties, and comply with state-funded project management laws (if any), investment laws, real estate trading laws, and relevant laws.

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4. The new investor must ensure to meet the conditions prescribed in Article 16 of this Decree.

Article 20. (annulled) 3

Article 21. (annulled) 4

Article 22. (annulled) 5

Article 23. (annulled) 6

Article 24. (annulled) 7

Article 25. (annulled) 8

Article 26. (annulled) 9

Article 27. (annulled) 10

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Article 29. Collecting appraisal opinions on request for approval for investment guidelines of projects on investment in urban area construction 12

1. The approval for investment guidelines of projects on investment in urban area construction shall comply with investment laws. .

2. During the process of appraising a project on investment in urban area construction to approve investment guidelines, the Ministry of Planning and Investment of Vietnam shall seek appraisal opinions of the Ministry of Construction of Vietnam about the contents specified in Clauses 3 and 4 of this Article with respect to the project subject to approval for its investment guidelines by the Prime Minister of Vietnam; the investment registration authority shall seek appraisal opinions of the Department of Construction about the contents specified in Clauses 3 and 4 of this Article with respect to the project subject to approval for its investment guidelines by the provincial People’s Committee.

3. Contents about which appraisal opinions are obtained with regard to a project on investment in urban area construction on request for approval for investment guidelines of projects on investment in construction of an urban area with residential housing:

a) Contents about which appraisal opinions are obtained are the same as those for a housing construction projects in accordance with housing laws;

b) Assessment of conformity of the investment project with the urban development objectives and orientations specified in the urban development program (if any) approved by a competent authority. If the urban development program has yet to be approved by a competent authority, assess conformity of the project with the urban development objectives and orientations specified in the approved general planning or provincial planning;

c) Consideration for the synchronization of the preliminary plan for investment phasing or expected division of component projects (if any) and preliminary plan for investment in construction and management of urban infrastructure inside and outside the project.

4. Contents about which appraisal opinions are obtained with regard to a project on investment in construction of an urban area without housing:

a) Assessment of conformity of the investment project with the detailed planning (if any) or subdivision planning (if any). If the detailed planning or subdivision planning has yet to be approved by a competent authority, assess conformity of the investment project with the general planning;

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Article 30. (annulled) 13

Article 31. Grounds to develop projects

1. General planning, subdivision planning, and detailed planning.

2. Implementation plan for urban development area.

3. Decision on approval for the result of the selection of investor or decision on investor appointment, or documents certifying the land use right in case the investor is the owner the land lot of the project.

4. Other relevant legal documents.

Article 32. Project dossier

1. Explanation of project with the main contents as follows:

a) Necessity and legal grounds of the project;

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c) Size, area, surface boundary, and current conditions of the land lot;

d) Plan for site clearance, resettlement, and vocational training and employment support for workers in the site clearance area;

dd) The number and percentage of different types of houses, apartments, plans for product consumption; solutions and plans for the implementation of public services and other urban services;

e) Explanation of economic and technical investment, the business plans for capital recovery; total investment; effectiveness of social and economic investment; specific allocation and transfer of land use right, land lease, or use of the land fund to generate capital to build infrastructure to determine the source of capital for stages of investment and business;

g) Explanation for the capacity and experience of investor about finance, investment, and appropriate management for project implementation;

h) Methods of implementation:

- Form of project management;

- Investment phase, progress, and method of implementation.

2. Dossier on basic design of the project.

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4. Dossier on component project in service of resettlement and site clearance (if any).

5. Cooperative contents between investor and local authority:

a) Investment in building infrastructure projects outside the fence and technical infrastructure of the State through the project area;

b) Investment in building administrative offices and social infrastructure (if any);

c) Infrastructural items transferred without compensation (if any) and the progress of the transfer;

d) Responsibility for providing public services and other urban services;

dd) Determination of the tasks, responsibilities, and relationships between the investor of the project with relevant subjects in the above cooperative contents;

e) Proposals for support and incentives for the project;

g) Proposal for administrative management, new administrative units and plan to for transfer of administrative management to the local authorities (if any).

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Article 34. Project progress

1. The organization implementing the project shall ensure the progress of the project and the general implementation of the whole urban development area.

2. In case the investor proposes adjustments to the project progress leading to behind-schedule operation and use, the investor must have a written explanation and have it approved in writing by the provincial People's Committee. The provincial People's Committee shall consider replying within 30 working days from the date of receipt of the written proposal and explanation from the investor.

3. The handling of violations of the progress of the project shall comply with construction laws, land laws, and relevant laws.

Article 35. Investment in social infrastructure development

1. Investors shall synchronously develop social infrastructure by a progress in line with the housing works, ensuring that the quality of services meets the needs of people coming for residence.

2. If the local government directly invests in the development of social infrastructure works in urban areas with funding from the state budget, the unit assigned by the State to be the investor of works construction shall invest in the construction of these works in line with the progress of the approved project and ensure the consistency of the overall project as a secondary investor.

3. If the local government cannot allocate the budget to develop these works according to the initial plan of the project, the investor shall invest in the construction of such works in appropriate forms (such as BT, BOO, etc.).

Article 36. Completing, transferring and putting works into operation and use

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a) The testing of completed works shall comply with construction works quality and management laws;

b) The archive of documents of works is done shall comply with archive laws, construction laws, and relevant laws.

2. Investors shall complete the procedure for recognition of land use rights and ownership of the works as prescribed by laws regarding completed works in operation or use.

3. Transfer and utilization of technical infrastructure and social infrastructure:

a) For completed technical infrastructure and social infrastructure works, the investor may operate or transfer such works to the receiving party for management and operation according to initial objectives of the project.

The investor shall take responsibility for the quality of the works and provide a warranty for the transferred works as prescribed by laws. Regarding used works, before the transfer, the investor shall assess the quality and value and complete the necessary maintenance work.

b) For technical infrastructure and social infrastructure works not transferred or not yet transferred, the investor shall manage such works and ensure operational quality.

c) The receiving party shall manage and utilize works for the intended functions and maintain such works under construction laws.

For works of which the receiving party has been identified in the content of the project, that party may and shall manage the quality and conduct the works testing during the construction until it is completed, transferred, and put into operation.

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4. For works requiring the transfer of administrative management to the local authorities, the investor must plan and implement the transfer of administrative management to the local authorities according to Article 38 of this Decree. While it is not possible to transfer the entire project, the investor must cooperate with the local administrative management units in processing administrative procedures for households moving in.

Article 37. Urban services

1. Project investors shall organize the provision of urban services and ensure to serve the needs of moving-in residents according to the project objectives until its transfer to the authority or other organizations and enterprises managing professional services.

2. Local authorities shall prepare the necessary conditions and direct the transfer of the management and operation of urban services to organizations and enterprises managing professional services.

Article 38. Transfer of administrative management

1. The investor shall, based on the progress of the investment, construction, and business of the project, cooperate with the local authority in preparing the plan to transfer administrative management in the project area and presenting it to the competent authority for approval so that related parties can implement it, including:

a) Cooperation in administrative management between the investor and the administrative management unit in the period of no transfer identified in the Decision on investment approval.

b) Transfer of management upon completion of construction works and operation and use as per regulation.

c) Transfer of administrative management upon completion of the entire project.

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3. The transfer shall be done within 3 months after the end of the project by the investor, as well as the completion of other responsibilities as prescribed by laws.

4. Administrative management units shall disclose headquarters and organize the apparatus in conformity with the transferred management scale to implement administrative management to ensure the rights of moving-in residents.

Article 39. Capital mobilization and product trading of project

1. Investors may mobilize capital as prescribed by laws to implement the project according to the content and progress of the approved project.

2. Products of the project include: land with infrastructure, housing (villas, townhouses, and apartments), infrastructural works, and other works.

3. The trading of the project products shall comply with this Decree, real estate business laws, housing laws, and relevant laws.

Section 2. URBAN WORKS CONSTRUCTION INVESTMENT PROJECT

Article 40. Management and implementation of construction investment for urban works construction investment projects

1. The urban works construction investment projects shall comply with construction laws, this Decree, and relevant laws.

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3. Consultation contents of the Ministry of Construction of Vietnam

a) Conformity with urban planning, urban development area, and implementation plan for urban development area approved by the competent authorities; compliance with relevant laws;

b) Factors ensuring the feasibility and effectiveness of the project include: the need to invest; objectives and progress of the project; socio-economic efficiency of the project.

4. For projects specified in Clause 2 of this Article, within 7 days from the date of receipt of official dispatch from the investors and 15 sets of dossier on the project (specified by law on the management of works construction investment projects), the provincial People's Committee shall send written consultation (accompanied by 1 set of dossier on the project) to the Ministry of Construction of Vietnam. Within 15 working days from the date of receipt of the official dispatch for consultation, the Ministry of Construction of Vietnam shall provide written replies for the provincial- People's Committees according to the contents specified in Clause 3 of this Article. The provincial People's Committees shall issue written approval so that the investor can carry out the project within 15 days from the date of receipt of the written consent of the Ministry of Construction of Vietnam.

5. For conservation and refurbishment projects on cultural heritage works

a) The project implementation shall not change or damage the cultural, architectural, and historical values, etc. of the original works;

b) The preparation, appraisal, approval, and implementation of conservation and refurbishment projects in the urban development area shall comply with the cultural heritage laws, construction laws, this Decree, and relevant laws;

c) For conservation and refurbishment projects for works ranked as national remains and special national remains, within 7 days from the date of receipt of the report and 10 sets of project dossiers from the investor, the provincial People's Committee shall seek the written consent of the Ministry of Construction of Vietnam before the competent authority approves the project. Within 15 working days from the date of receipt of the official dispatch for consultation, the Ministry of Construction of Vietnam shall provide answers for the contents specified in Clause 3 of this Article;

d) For conservation and refurbishment projects ranked as provincial remains, the investor shall consult the Department of Planning and Architecture, Construction, and Culture, Sports and Tourism for report submission to competent authorities before the approval of the project. Within 15 working days from the date of receipt of the official dispatch for consultation and the project dossier, the Departments mentioned above shall reply in writing.

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RESPONSIBILITIES OF STATE MANAGEMENT AGENCIES

Article 41. The Ministry of Construction of Vietnam shall:

1. Uniformly manage the urban development nationwide.

2. Develop orientations, strategies, and master planning for development of national urban systems, programs, national key projects on urban development, objectives in the field of urban development in the task of socio-economic development of Vietnam in each period for submission to the Prime Minister of Vietnam for approval and implementation.

3. Develop and submit to competent authorities for promulgation, or promulgate under its competence policies and legislative documents on management of urban development investment, policies, and management solutions to urbanization process, urban development management models, and guide and inspect the implementation.

4. Take charge and cooperate with concerned ministries and central and local authorities in controlling the urban development process to ensure compliance with the master planning for the development of the national urban system, urban planning, and urban development plans approved by competent authorities.

5. Take charge and cooperate with concerned ministries and central authorities in appraising the planning schemes under the approval competence of the Prime Minister of Vietnam as prescribed in Clause 2 Article 7 of this Decree.

6. Provide written consent for the approval of subdivision planning schemes of the provincial People's Committee as specified in Clause 4, Article 7 of this Decree.

7. Take charge and cooperate with concerned ministries and central authorities in appraising proposals for urban development areas under the decision competence of the Prime Minister of Vietnam specified in Clause 1, Article 9 of this Decree.

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9. (annulled)16

10. Organize the development and management of the database system and provide information on urban development nationwide.

11. Guide, inspect, settle complaints and denunciations, and handle violations in urban development within its jurisdiction.

12. Perform other tasks of managing urban development investment assigned or authorized by the Government of Vietnam or the Prime Minister of Vietnam.

Article 42. The Ministry of Planning and Investment of Vietnam shall:  

1. Take charge and cooperate with the Ministry of Construction of Vietnam and the Ministry of Finance of Vietnam in developing plans for the allocation of construction investment capital for projects on investment in urban development covered by the central budget; mobilize ODA for programs and projects to support the urban development, renovation, and upgrade.

2. Take charge and cooperate with concerned ministries and central authorities in guiding provinces to provide investment incentives for urban development investment projects.

Article 43. The Ministry of Finance of Vietnam shall:

Take charge and cooperate with concerned ministries and central authorities in developing and guiding the implementation of incentives related to policies on finance and tax for urban development investment projects.

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1. Inspect, urge, and guide provinces on the review, adjustment, and supplement to planning, land use plans, and preparation of land funds for the development of urban development investment projects.

2. Provide specific guidelines on the use of land for urban development, minimum resettlement slots, and implementation of land incentives for urban development investment projects.

Article 45. Concerned ministries and central authorities shall:

1. Prepare and manage sector planning by functions and tasks assigned by the Government of Vietnam as a basis for urban development.

2. Perform state management functions within their jurisdiction for urban development investment projects.

Article 46. Provincial People's Committees shall:

1. Uniformly manage urban development in the area; develop an apparatus capable of meeting the state management requirements consistent with the actual urban development.

2. Direct the review, assessment, and identification of urban development areas and prepare plans for the implementation of urban development areas and establish management boards of urban development areas; ensure a reasonable and effective transition in the short-term period and sustainable urban development in the future; attract investment in local urban development investment projects.

3. Conduct the site clearance as prescribed by laws and establish organizations managing and developing urban land funds.

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5. Develop technical infrastructure outside the project boundary to ensure a synchronous connection with the urban framework technical infrastructure.

6. Direct the receipt of transfer and organize the administrative apparatus upon receiving the transfer of urban development projects.

7. Develop and manage local urban development information systems, report on the assessment of the situation of local urban development, and submit biannual reports on the results to the Ministry of Construction of Vietnam for summary and submission to the Prime Minister of Vietnam.

8. Take charge and cooperate with the Ministry of Natural Resources and Environment of Vietnam and the Ministry of Construction of Vietnam in reviewing, adjusting, or supplementing planning and land use plans for the allocation of urban development land funds.

9. Stipulate mechanisms of encouragement and incentives to attract economic sectors to invest in urban development.

10. Inspect and handle violations within their jurisdiction.

Chapter V

TRANSITIONAL PROCESSING

Article 47.  General principles

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1. Re-establishing order in urban development: Investing in construction in compliance with the orientation of the approved national urban development, general planning, and subdivision planning and ensuring the synchronous connection of the projects in each urban development area;

2. Ensuring the implementation of urban development investment projects according to the approved plan for implementation of the urban development area, rectifying the spontaneous and redundant development causing waste of land and social resources;

3. Limiting the impacts that affect the progress and effectiveness of the project, and the legitimate rights and interests of the parties concerned.

Article 48. Transitional processing of regulations on urban planning and identification of urban development area

1. If the urban areas have an approved urban master planning but there is no subdivision planning, detailed planning, urban design, or urban development program from the effective date of this Decree, the provincial People’s Committees shall direct the preparation of the subdivision planning, detailed planning, urban design, regulation on architectural planning management and urban development program for approval according to urban planning laws as a basis for determining the urban development area and preparing implementation plans as specified in Article 8 of this Decree.

2. If the urban areas already have general planning, subdivision planning, and urban development programs approved but not yet identifying the urban development area from the effective date of this Decree, the provincial People's Committees shall direct the identification of the urban development area; issue approval within their jurisdiction or submit reports to the competent authorities for decisions according to Article 9 and establish management boards of urban development areas according to Article 13 of this Decree.

Article 49. Transitional processing for projects assigned on the basis of compliance with general planning and subdivision planning approved by competent authorities

1. Provincial People's Committees shall direct the review and addition of projects to the list of urban development area projects and ensure that the projects comply with the implementation plan for urban development area and this Decree.

2. For investment projects on the construction of housing urban areas: the provincial People's Committees shall direct the review and adjustment to ensure that the projects comply with the rate of land area for social housing under housing laws and relevant laws.

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Provincial People's Committees shall direct the review, classification, and implementation of the transitional processing for each of the following cases:

1. Projects in conformity with the approved general planning and subdivision planning: comply with Article 49 of this Decree.

2. Projects that do not conform with the approved general planning and subdivision planning:

a) If the project has yet to implement construction investment or has developed technical infrastructure partially: the provincial People's Committees shall direct the review and adjustment to the project for conformity with the general planning and subdivision planning and manage the implementation of project investment according to this Decree and relevant laws;

b) If the project has completed the construction of technical infrastructure: the provincial People's Committees shall direct the review and inspection of the connection of infrastructure; adjust the project to suit the general planning and subdivision planning, and ensure the connection to the common infrastructure of the area; adjust the project progress according to the implementation plan for urban development area;

c) If the project has completed the construction of technical infrastructure and is implementing the works construction investment: the provincial People's Committees shall direct the review and adjustment to the portions of the area with unrealized implementation of construction investment to conform with the general planning, subdivision planning; adjust the housing structure of the projects according to market demand; adjust the progress of the project according to the implementation plan for urban development area;

d) If the project has completed the crude construction: the provincial People's Committees shall direct the review and request the investors to focus on improving the social infrastructure and other works to put the project into operation and use.

3. For projects in the urban centers with general planning under the approval competence of the Prime Minister of Vietnam, during adjustments to the projects specified in Points a, b, and c, Clause 2 of this Article, before submitting the project to the competent authority for approval, the investor must submit 3 sets of project adjustment dossiers to the Ministry of Construction of Vietnam for written consent for the following contents: conformity with urban planning, urban development area and implementation plan for urban development area approved by the competent authority; compliance with relevant laws. The time limit to review and reply in writing shall not exceed 30 working days from the date of receipt of the written consultation, project adjustment dossier, and relevant legal documents.

4. In case of projects on urban housing construction investment, apply Clause 2, Article 49 of this Decree simultaneously.

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Chapter VI

IMPLEMENTATION PROVISIONS

Article 52. Implementation

Ministers, heads of ministerial agencies, heads of governmental agencies, Chairmen of People’s Committees of provinces and centrally affiliated cities, heads of political, socio-political organizations and socio-vocational political organizations, and relevant organizations and individuals shall implement this Decree.

Article 53. Entry into force 18

1. This Decree comes into force as of March 1, 2013.

2. This Decree replaces Decree No. 02/2006/ND-CP dated January 5, 2006 of the Government of Vietnam

3. Regarding regulations of the Government of Vietnam on investment in urban development promulgated before the effective date of this Decree, if they are different from the regulations of this Decree, this Decree shall apply./.

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VERIFICATION OF INTEGRATED DOCUMENT

PP. MINISTER
DEPUTY MINISTER




Nguyen Tuong Van

1Decree No. 100/2018/ND-CP dated July 16, 2018 of the Government of Vietnam, effective as of September 15, 2018, has the following promulgation grounds:

Pursuant to the Law on Government Organization of Vietnam dated June 19, 2015; 

Pursuant to the Law on amendments to Article 6 and Appendix 4 on the list of conditional business lines stipulated in the Law on Investment dated November 22, 2016;

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Law on Real Estate Trading dated November 25, 2014;

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Decree No. 31/2021/ND-CP dated March 26, 2021 of the Government of Vietnam, effective as of its date of signing, has the following promulgation grounds:

Pursuant to the Law on Organization of the Government of Vietnam dated June 19, 2015; the Law on Amendments to the Law on Organization of the Government of Vietnam and the Law on Organization of the Local Government of Vietnam dated November 22, 2019;

Pursuant to the Law on Investment dated June 17, 2020;

Pursuant to the Law on Enterprises dated June 17, 2020;

At the request of the Minister of Planning and Investment of Vietnam;

2 This Article is annulled by Clause 4 Article 3 of Decree No. 100/2018/ND-CP, effective as of September 15, 2018.

3 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

4 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

5 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

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7 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

8 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

9 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

10 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

11 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

12 This Article is amended by Clause 1 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

13 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

14 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

15 This Clause is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

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17 This Article is annulled by Clause 2 Article 111 of Decree No. 31/2021/ND-CP, effective as of March 26, 2021.

18 Entry into force of Decree No. 100/2018/ND-CP, dated July 16, 2018:

This Decree comes into force as of September 15, 2018. 

 Entry into force of Decree No. 31/2021/ND-CP, dated March 26, 2021:

1. This Decree comes into force as of its date of signing.

2. The following Decrees and regulation shall cease to have effect from the effective date of the Law on Investment:

a) Government’s Decree No. 118/2015/ND-CP dated November 12, 2015;

b) Government’s Decree No. 37/2020/ND-CP dated March 30, 2020;

c) Government’s Decree No. 83/2015/ND-CP dated September 25, 2015;

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dd) Government’s Decree No. 69/2016/ND-CP dated July 1, 2016;

e) Government’s Decree No. 79/2016/ND-CP dated July 1, 2016;

g) Article 2 of the Decree No. 100/2018/ND-CP dated July 16, 2018.