Draft Amendment to the Planning Law Gains Strong Support from Local Authorities, Aims to Address Bottlenecks in Decentralization and Adjustment

At its 46th session on June 10, 2025, the National Assembly Standing Committee reviewed a draft law amending several articles of the Planning Law. The draft received strong consensus from local authorities, particularly on provisions that decentralize planning powers to provincial-level People’s Committees—an essential adjustment as many provinces are undergoing administrative mergers and transitioning to a two-tier local governance model.

According to Finance Minister Nguyen Van Thang, following two rounds of consultation with provinces and cities, most localities supported the proposal to grant provincial authorities more autonomy in appraising and adjusting local plans. This move is seen as a practical solution to overlapping, outdated, or inflexible planning frameworks, especially amid administrative restructuring.

As reported by the Economic and Financial Committee, the draft focuses on urgent issues such as transitional regulations for planning periods 2021–2030, particularly in areas where plans were approved prior to August 15, 2025. The government is tasked with reviewing and amending relevant legal documents no later than December 31, 2026, to ensure consistency with Resolution 198/2025/QH15 on mechanisms for private sector development.

National Assembly Chairman Tran Thanh Man suggested that the drafting agency seek broader input from localities—especially newly merged provinces—through both online and in-person consultations. He emphasized that the current Planning Law still faces many practical challenges and that amendments must specifically target these sticking points to be effective in real-world implementation.

Reflecting a problem-solving mindset, the Chairman stressed that the amendment must enable localities to effectively manage their planning needs—from institutional readiness to data systems—rather than simply revising the law in form.

In his remarks, Minister Thang clarified that this amendment package does not aim for comprehensive reform, but rather addresses pressing issues tied to administrative boundary changes and local governance. A more holistic review of the Planning Law is expected in future legislative sessions.

A notable change in the draft is that it allows specialized technical plans to be developed concurrently with national, regional, and provincial plans, provided that higher-level plans are approved first. This approach enables early preparation without disrupting the hierarchy of the planning system.

The draft also sets forth clearer rules for resolving conflicts between overlapping plans, empowering the drafting agency to decide which plan to adjust when multiple plans from the same entity contradict each other. This mechanism aims to resolve deadlocks without escalating decisions to higher authorities.

On the matter of national land-use and maritime space planning, the government has requested the right to adjust such plans when needed, while leaving final approval authority with the National Assembly. This ensures macro-level oversight while still allowing room for administrative flexibility.

The draft further proposes streamlined procedures for adjusting existing plans, applicable to both central ministries and provincial authorities. This is expected to enhance responsiveness and reduce administrative delays in adapting to on-the-ground changes.

Chairman Tran Thanh Man expressed support for greater decentralization to provinces, while emphasizing the need for effective oversight and supervision mechanisms. He also highlighted two major challenges: the lack of tools to assess compatibility between different levels of planning, and the inconsistency between approved investment projects and current planning data—both of which need urgent resolution.

The Ministry of Finance confirmed that the draft implementation decree is already prepared and is currently undergoing consultation with relevant ministries and localities. The goal is to have the decree ready for enactment at the same time the amended law takes effect, ensuring a smooth and coordinated rollout across the country.

Source: Vietnam Investment Review