HCMC Land Powers Expand Under New Urban Development Law: VHM, VIC

Overview

The National Assembly passed the Urban Development Law on August 24, granting Ho Chi Minh City expanded authority over land-use planning, project approvals, and transit-oriented development (TOD). The law, which takes effect generally on October 1, 2026, but applies to HCMC from September 1, 2026, is expected to benefit major real estate developers, including Vinhomes (VHM) and Vingroup (VIC), by streamlining legal processes and unlocking land value.

Key Facts

• The Urban Development Law was passed on August 24, with HCMC-specific provisions effective from September 1, 2026.
• HCMC gains the right to approve investment policies and resolve project bottlenecks without central government approval for large-scale projects.
• The city can decide land-use targets across its territory, excluding defense and security land.
• HCMC may use its budget to conduct site clearance as an independent project before approving the main project’s investment policy.
• The law expands TOD mechanisms, allowing HCMC to plan TOD zones and approve metro line alignments and station locations.
• Transfer of planning targets between land plots within TOD zones is permitted, potentially creating a new tradable asset class.
• HCMC is designated as the coordination hub for the special urban region and Southeast region, improving inter-provincial infrastructure alignment.

What Happened

The Urban Development Law, passed by the National Assembly on August 24, introduces a “special law for large cities” model, following similar mechanisms applied to Hanoi. According to analysis by Rồng Việt (VDSC), two key channels will transmit the law’s impact to real estate firms. First, HCMC now has the authority to approve investment policies and implement mechanisms to resolve project difficulties, which previously required approval from the Prime Minister and central ministries. This is expected to shorten legal cycles, reduce capitalized interest costs, and improve inventory turnover for developers.

Second, the city can decide land-use targets and separate site clearance into independent projects, using its budget to accelerate land conversion from agricultural or rubber land to residential or industrial land. This could create additional development space. The law also strengthens TOD, allowing HCMC to plan TOD areas and approve metro line plans, helping developers with land in these zones better quantify future value. Additionally, the city gains more financial autonomy, including issuing local government bonds and borrowing from domestic and foreign financial institutions, which could fund major infrastructure like metro lines and ring roads.

Market Context

Vinhomes (VHM) closed at VND 74,500 on September 7, 2026, on the HOSE, while Vingroup (VIC) closed at VND 245,000. The real estate sector has been under pressure from slow legal approvals and high inventory, but this law is seen as a catalyst for HCMC-focused developers. The expanded authority is particularly relevant for VHM, which has significant land banks in HCMC and surrounding provinces, and for VIC, which is involved in large-scale urban projects. The law aligns with broader market trends of decentralization and infrastructure investment, which could support property values in TOD zones.

Strategic Significance

For long-term investors, the law reduces regulatory risk for developers with HCMC exposure. Faster approvals and clearer TOD planning enable VHM and VIC to accelerate project pipelines and improve capital efficiency. The ability to transfer planning targets within TOD zones could create new revenue streams or asset monetization options. The law also strengthens HCMC’s role as a regional coordinator, potentially benefiting projects beyond city limits, such as those in Bình Dương and Đồng Nai, where VHM has developments. This policy shift supports the thesis that large, well-capitalized developers with land banks in HCMC will outperform as legal bottlenecks ease.

What to Watch

• Implementation decrees and circulars detailing the law’s procedures, expected in late 2026.
• HCMC’s first approvals under the new authority, likely for stalled large-scale projects.
• VHM’s and VIC’s announcements of new project launches or land conversions in HCMC TOD zones.
• Updates on metro line planning and TOD zoning maps, which will clarify land value potential.
• Q3 2026 earnings reports from VHM and VIC, which may reflect early benefits from faster approvals.