At a seminar on the revised Capital Law draft on the afternoon of 27/3, organized by the Government e-information portal, Vice Chairman of Hanoi People's Committee Truong Viet Dung announced that the city plans to utilize the public transport-oriented development (TOD) model as a core financial resource.

This urban development model centers around mass public transport lines, such as metro systems. Land around stations is planned for high-density, mixed-use development, combining residential, commercial, and service functions to increase land value and generate revenue for infrastructure development.

According to Mr. Dung, instead of relying on loans or the state budget, Hanoi can generate resources from its urban development. The city will not need to borrow money for metro construction, as the metro itself will create resources to develop the urban core.

The city plans for 5 national TOD areas, each approximately 100 ha, 23 regional TOD areas, each approximately 50 ha, and 134 other TOD areas, with a total exploitable area of about 5,000 ha. This land fund is considered a significant financial reserve for infrastructure investment, including the urban railway system.

Hanoi estimates it needs about 86 billion USD to build 19 urban railway lines spanning 900 km. Compared to the previous plan of 15 lines spanning 600 km with a total capital of 55 billion USD, the investment scale has increased by 4 lines and 300 km. Under the new direction, the metro system is not just transport infrastructure but also a tool to activate urban development and generate revenue.

Mr. Truong Viet Dung, Vice Chairman of Hanoi People's Committee, speaking on 27/3. *Photo: Thu Giang*

Beyond the financial tool of TOD, the revised Capital Law draft expands Hanoi's authority in governance and development. The city is permitted to proactively address overlapping laws and choose the most beneficial option within the general legal framework.

The Hanoi People's Council can decide the scale and organizational structure of subordinate governments, aligning with the characteristics of a major urban area. It can also adjust certain financial policies and essential service fees for different resident groups. The city is also empowered to increase violation fines in some sectors to ensure management effectiveness.

The draft law adds a mechanism to protect officials and public servants who perform their duties correctly and without self-interest, even if outcomes do not meet expectations. This aims to encourage initiative and innovation in governance.

Another important aspect is the orientation towards a new urban development model that is multi-polar, multi-center, multi-layered, and linked with public transport and the digital economy. The city will form new growth poles, moving away from its previous reliance on the core area.

Architect Phan Dang Son, President of the Vietnam Association of Architects, believes the Capital Law draft provides a substantial institutional opportunity for Hanoi to undertake long-term restructuring amidst increasing pressures on infrastructure, environment, and governance.

Nguyen Quoc Hoan, Director of the Legal Normative Document Construction Department, Ministry of Justice, commented that if approved and effectively implemented, the revised Capital Law will help Hanoi enhance its competitiveness, attract high-quality human resources, and form innovation centers.

The Capital Law was first passed by the National Assembly in 2012, establishing a separate legal framework for Hanoi with specific mechanisms. In 2024, the law was revised to expand decentralization, delegation of power, and add urban development tools.

However, opinions at the seminar suggested that many mechanisms in the law still require further concretization for effective practical implementation, especially tools for resource mobilization such as public transport-oriented urban development, urban finance, and flexible organizational structures. The continued refinement of the draft aims to ensure these mechanisms operate effectively, meeting the rapid and large-scale development requirements of the Capital.