On the morning of december 8, Minister of Finance Nguyen Van Thang, authorized by the Prime Minister, presented to the National Assembly a draft Resolution piloting specific mechanisms for implementing major projects in the Capital.

The government stated that the renovation of old apartment buildings and urban embellishment faces many shortcomings and delays, affecting the safety and lives of residents. To address this bottleneck, the drafting agency proposes that Hanoi be empowered to decide on compulsory demolition measures when over 75% of homeowners and landowners agree, equivalent to at least 75% of the residential land area in the renovated zone.

According to the Housing Law 2023, projects to renovate dilapidated apartment buildings can only proceed when 80% of homeowners and landowners agree to the compensation, resettlement, and reconstruction plans. For hazardous grade D apartment buildings (severely damaged, unsafe, at risk of collapse), the Provincial People's Committee can make decisions based on the optimal plan.

In practice, achieving this near-absolute consensus rate is challenging for old apartment reconstruction projects. Developers also find it difficult to implement projects when construction density is restricted, preventing them from building too many floors and thus not having enough commercial units to offset construction and compensation costs.

Minister of Finance Nguyen Van Thang presented the draft resolution on the morning of december 8. *Photo: National Assembly Media*

Reviewing this content, Chairman of the Economic and Financial Committee Phan Van Mai stated that special mechanisms with significant impacts, such as expanding land acquisition cases, granting Hanoi the authority to approve projects (instead of the National Assembly or Prime Minister), and compulsory demolition with 75% owner consensus, need careful impact assessment to prevent complaints and maintain social stability.

Hanoi began renovating old apartment complexes in 2005. However, by mid-last year, the city had only completed and put into use 19 projects, with over ten more projects underway.

During the subsequent discussion, Professor Hoang Van Cuong, a part-time member of the Economic and Financial Committee, also suggested relaxing regulations on old apartment renovation. "Without a 75% consensus mechanism and permission to exceed planning, architectural, and population targets, the city will struggle to renovate dilapidated and unsafe apartment complexes," he said.

Meanwhile, Mr. Trinh Xuan An, a full-time member of the National Defense and Security Committee, proposed reducing the consensus rate to 50% instead of 75% to make old apartment reconstruction more feasible.

Similarly, Mr. Nguyen Truc Anh, a member of the Economic and Financial Committee, said that 75% is a high threshold. He noted that some countries only allow reconstruction of dilapidated apartment buildings when half of the homeowners agree. He also proposed delegating responsibility and authority to the grassroots level (commune level) for compensation and site clearance, to prevent projects from being "stuck" for 20 years without progress.

Mr. Trinh Xuan An, full-time member of the National Defense and Security Committee, presented his views at the discussion session, morning of december 8. *Photo: National Assembly Media*

Also, according to the draft resolution, the government proposes authorizing developers to create detailed plans for urban renovation, embellishment, and redevelopment projects. Upon approval, management agencies would be permitted to decide on planning, architectural, and population targets that exceed existing regulations (for projects in historic inner-city areas).

To accelerate major and important projects, the draft also stipulates that the People's Council or the Chairman of the Hanoi People's Committee will decide on investment policies, instead of submitting them to the National Assembly or Prime Minister as currently required. Some projects in this category (excluding apartment renovation) may also select contractors and investors under special circumstances.

According to the government, major and important projects in the Capital include public investment, public-private partnership (PPP) investment, or projects requiring immediate implementation as directed by competent authorities. This group also encompasses projects using local budgets or those listed for attracting strategic investors, with a total investment of 30,000 billion dong or more, as well as old apartment renovation and urban redevelopment.

For projects requiring implementation as directed by competent authorities, the city is permitted to determine compensation, support, and resettlement levels up to two times the standard regulations. These projects can also simultaneously undertake planning and construction commencement procedures with investment policy approval and decisions.

Regarding urban redevelopment regulations, Professor Hoang Van Cuong suggested implementing a transit-oriented development (TOD) model, where high-rise buildings must integrate subway stations and underground spaces for service development.

He also argued for reviewing the planning of the historic inner-city area, suggesting it should only include zones needing preservation, such as old quarters and the former Ba Dinh and Tay Ho areas. "Including the old Hai Ba Trung and Dong Da districts in this group restricts the city and its residents, as these areas contain many apartment buildings and low-rise houses needing renovation," Mr. Cuong noted.

Meanwhile, Mr. Phan Van Mai stated that during the review, some opinions suggested reconsidering the policy allowing Hanoi to approve projects involving rice cultivation land use of 500 hectares or more, or the relocation and resettlement of 20,000 to 50,000 people.

The National Assembly is expected to vote on this draft resolution on the afternoon of december 11.