Legal framework on autonomy, finance and sandbox for special urban areas: International experience and policy implications for Ho Chi Minh City
Main Article Content
Abstract
Purpose – This paper analyses the legal framework governing three foundational dimensions of special urban areas: governance autonomy, financial autonomy, and controlled experimentation mechanisms (regulatory sandboxes). Drawing on four benchmark international models, it derives specific policy implications for Ho Chi Minh City as Vietnam moves toward enacting a dedicated Special Urban Area Law.
Design/methodology/approach – The study employs comparative institutional analysis combined with a systematic literature review. Four international cases were selected for their representational diversity: the Dubai International Financial Centre and Abu Dhabi Global Market in the UAE; the Shenzhen–Hong Kong corridor in China; Seoul in South Korea; and the Greater London Authority in the United Kingdom. Data were gathered from legislative texts, official institutional reports, and peer-reviewed academic sources.
Findings – Successful special urban areas worldwide have consistently built three core legal pillars: (i) autonomy that is constitutionally or legislatively anchored with clear jurisdictional boundaries; (ii) financial autonomy tied to institutional capacity and fiscal risk-control mechanisms; and (iii) sandboxes that are flexibly structured, evaluable, and integrated with national development strategy. Vietnam's current legal instruments (Resolution 98/2023/QH15) have established an important pilot foundation, but the forthcoming Special Urban Area Law must consolidate all three pillars at a durable statutory level.
Originality/value – This is among the first studies to propose and empirically examine a Three-Pillar Legal Framework that simultaneously integrates governance autonomy, financial autonomy, and sandbox mechanisms in the context of special urban institution-building in Vietnam, providing a high-applicability academic basis for the legislative process ahead.
Practical implications – Six concrete recommendations are proposed for legislators and policymakers, closely aligned with the spirit of Politburo Resolution 09-NQ/TW dated 19 May 2026 on the development of Ho Chi Minh City in a new era.
Social implications – A sufficiently robust legal framework will improve the efficiency of urban public service delivery, reduce regional development gaps, and create an enabling institutional environment to attract investment in the digital economy and innovation ecosystem.
Keywords
Financial autonomy; Ho Chi Minh City; Legal framework; Regulatory sandbox; Special urban area
Article Details
Field of Economic (JEL Codes)
H71 - State and Local Taxation, Subsidies, and Revenue - H77 - Intergovernmental Relations • Federalism • Secession - State and Local Government • Intergovernmental Relations, K23 - Regulated Industries and Administrative Law - Regulation and Business Law, O18 - Urban, Rural, Regional, and Transportation Analysis • Housing • Infrastructure - Economic Development, R58 - Regional Development Planning and Policy - Regional Government Analysis
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