Management of funding sources for the formulation and implementation of urban planning in Vietnam

Recently, the Government issued Decree 37/2010/ND-CP on the formulation, evaluation, approval and management of urban planning in Vietnam, which includes detailed regulations on this issue.

Management of funding sources for the formulation and implementation of urban planning in Vietnam

Management of funding sources for the formulation and implementation of urban planning in Vietnam (Internet image)

Article 4 of Decree 37/2010/ND-CP stipulates that State budget funds for the formulation and implementation of urban planning in Vietnam shall be allocated from annual economic non-business funds of central and local budgets. Funds for the formulation and implementation of urban planning covered by implementers of construction investment projects shall be included in the projects' total investments.

- Responsibilities for preparing funding plans for the formulation and implementation of urban planning with state budget funds:

  • The Ministry of Construction shall prepare annual budget fund plans for the formulation and implementation of urban planning carried out by the Ministry itself and of other types of urban planning assigned by the Prime Minister;
  • The People's Committees at all levels shall prepare and balance annual fund plans for urban planning formulated by themselves, excluding types of urban planning mentioned at Point a. Clause 3 of this Article;
  • The Ministry of Finance and the Ministry of Planning and Investment shall balance annual state budget funds for the formulation and implementation of urban planning by the Ministry of Construction; the People's Committees at all levels shall balance annual local budget funds for local urban planning work.

- Condition for inclusion in annual fund plans: The list of urban planning projects or job items to implement urban planning must be approved by competent authorities and enclosed with outlines and cost estimates of urban planning work or job items to implement urban planning.

The Ministry of Construction of Vietnam shall announce spending levels and unit prices for the formulation and implementation of urban planning. The Ministry of Finance shall coordinate with the Ministry of Construction in guiding the advance, payment and settlement of state budget funds for the formulation and implementation of urban planning to suit management requirements and characteristics of urban planning work.

More details can be found in Decree 37/2010/ND-CP, which comes into force from May 25, 2010.

Nguyen Phu

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