DECREE

ON THE GRADING OF URBAN CENTERS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 26, 2003 Law on Construction;
At the proposal of the Minister of Construction,

DECREES:

Chapter 1

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. Scope of regulation: This Decree provides for the grading of urban centers; the formulation and evaluation of urban center-grading schemes and the decision to recognize urban center grades.

2. This Decree applies to domestic and foreign organizations and individuals involved in the grading and development of urban centers within Vietnamese territory.

Article 2. Purposes of the grading of urban centers

The grading of urban centers aims to:

1. Organize, arrange and develop the national system of urban centers;

2. Formulate and approve urban construction plannings;

3. Raise the quality of urban centers and develop urban centers in a sustainable manner.

4. Formulate policies and mechanisms for urban management and development.

Article 3. Interpretation of terms In this Decree, the terms below are construed as follows:

1. New urban center means an urban center which is planned to be formed in the future and will step by step be built up to urban center standards under law.

2. Urban population means population within the administrative boundaries of an urban center, embracing the inner area and suburbs; the inner area, outskirts and township.

3. Synchronously built urban infrastructure facilities means technical and social infrastructure facilities already built satisfying 70% of the requirements of their construction plan in each period, meeting all standards and technical regulations and complying with other relevant regulations.

4. Completely built urban infrastructure facilities means technical and social infrastructure facilities already built satisfying the requirements of their construction plan in each period, meeting all standards and technical regulations and complying with other relevant regulations.

5. Specific urban center means an urban center with nationally or internationally recognized special values in cultural heritage (tangible or intangible), history, nature or tourism.

Article 4. Grading of urban centers

Urban centers are classified by six grades, namely special grade, grade I, grade II, grade III. grade IV and grade V, and recognized under decisions of competent state agencies.

1. Special-grade urban centers include centrally run cities with urban districts, rural districts and satellite urban centers.

2. Urban centers of grades I and II include centrally run cities with urban districts and rural districts and possibly attached urban centers; and provincial cities with wards and communes.

3. Grade-Ill urban centers include provincial cities or towns with wards and communes.

4. Grade-IV urban centers include provincial towns with wards and communes.

5. Urban centers of grades IV and V include district townships with consolidated street quarters and possibly rural residential spots.

Article 5. Conditions for recognizing grades of expanded urban centers and new urban centers

1. The expansion of the boundaries of an urban center must be based on the urban construction planning approved by a competent state agency. Expanded areas of an urban center must be built to satisfy basic criteria for the grade of the urban center.

People's Committees of provinces and centrally run cities (below referred to as provincial-level People's Committees) shall formulate schemes on the expansion of administrative boundaries of urban centers under current regulations and submit them to competent state agencies for decision.

The grade of an urban center shall be recognized after the issuance of a decision on the expansion of its boundaries and when this urban center satisfies basic criteria for the grading of urban centers.

2. For an area in which a new urban center is planned to be formed, an urban construction planning approved by a competent state agency is required, and this area has been built basically satisfying criteria for the grading of urban centers.

Provincial-level People's Committees shall formulate schemes on the formation of new urban centers in accordance with Clause 1, Article 18 of this Decree.

The grade of an urban center shall be recognized after the issuance of a decision on the formation of a new urban center and when this urban center satisfies basic criteria for the grading of urban centers.

3. In special cases to meet requirements for national territory or sovereignty management or socio-economic development management, a competent state management agency may decide on the administrative management level for an area before this area is built to satisfy basic criteria for the grading of urban centers.

Article 6. Basic criteria for the grading of urban centers

Basic criteria for the grading of urban centers shall be considered and assessed on the basis of the urban development situation in the year preceding the year of formulation of an urban center-grading scheme or at the time of formulating such a scheme, specifically:

1. Functions of an urban center

An urban center is a general or specialized center of national, inter-provincial, provincial or district level, or a center of an intra-provincial region, which has the role of promoting socio­economic development of the whole country or a certain region.

2. Population of an urban center is at least 4,000.

3. The population density suits the size, nature and characteristics of each urban center grade and is calculated for the inner area or township's consolidated street quarter.

4. The non-agricultural labor within the inner area or consolidated street quarter accounts for at least 65% of total labor.

5. Urban infrastructure facilities, including social infrastructure facilities and technical infrastructure facilities:

a) For inner areas, these facilities are built in a synchronous manner and completed to an extent prescribed for each urban center grade;

b) For suburbs and outskirts, infrastructure networks are built in a synchronous manner, satisfying environmental protection and sustainable urban development requirements.

6. Urban architecture and landscape: Urban construction and development comply with approved regulations on urban architecture management. An urban center has model urban quarters, civilized urban streets and public areas for its inhabitants' spiritual life; and has typical architectural complexes or works suitable to its environment and natural landscape.

Article 7. Principles of assessment for the grading of urban centers

1. For special-grade, grade-I or grade-II urban centers being centrally run cities: Urban districts shall be considered and assessed based on criteria applicable to urban centers of these grades.

For urban centers in a city adjacent to its inner area, their development shall be managed and their grading shall be assessed based on criteria applicable to inner areas.

Other urban centers in a city shall be considered and assessed based on criteria applicable to urban center grades determined under the general urban planning and their actual development.

2. For provincial urban centers of grades I. II. III and IV: Wards shall be considered and assessed based on criteria applicable to urban centers of these grades.

3. For district urban centers of grades IV and V: Consolidated street quarters shall be considered and assessed based on criteria applicable to urban centers of these grades.

4. Suburbs and outskirts shall be assessed based on criteria specified at Points b, Clauses 5 of Articles 9 thru 14 of this Decree.

Article 8. Urban development programs People's Committees at all levels shall, based on urban center-grading criteria prescribed in this Decree, formulate urban development programs and mobilize resources for investment in urban construction and development as a basis for the grading of urban centers. An urban development program must aim to improve the quality of people's life and make urban architecture and landscape civilized, modern and sustainable while preserving the cultural quintessence and traits of each urban center.

Chapter 2

CRITERIA FOR GRADING OF URBAN CENTERS

Article 9. Special-grade urban centers

1. A special-grade urban center functions as the capital or a domestic and international economic, financial, administrative, scientific-technical, education-training, tourist and healthcare center and traffic and exchange hub with the role of promoting national socio-economic development.

2. Population of a special-grade urban center is at least 5 million.

3. The inter area population density is at least 15.000 people/km2.

4. The non-agricultural labor accounts for at least 90% of total labor.

5. Urban infrastructure facilities

a) In the inner area: Urban infrastructure facilities are synchronously built and basically completed up to urban environmental sanitation standards: 100% of newly built production establishments apply clean technologies or are furnished with environmental pollution-minimizing equipment;

b) In the suburbs: Major infrastructure networks and technical infrastructure facilities are built in a basically synchronous fashion; the development of polluting projects is restricted; infrastructure facilities in rural population spots are synchronously built; land areas favorable for agricultural development, urban greeneries and eco-landscapes are protected.

6. Urban architecture and landscape: Urban construction and development comply with regulations on urban architecture management. New urban quarters satisfy model urban-center standards with over 60% of urban thoroughfares up to standards of civilized urban streets, and have public areas for people's spiritual life and typical architectural complexes or works of national and international magnitude.

Article 10. Grade-I urban centers

1. Functions of a grade-I urban center

A centrally run urban center functions as a domestic and international economic, cultural, scientific-technical, administrative, education-training, tourist and service center and international traffic and exchange hub with the role of promoting socio-economic development of an inter-provincial territory or the whole country.

A provincially run urban center functions as a domestic economic, cultural, scientific-technical, administrative, education-training, tourist and service center and traffic and exchange hub with the role of promoting socio-economic development of one or more than one inter-provincial territory.

2. Population of a grade-I urban center

a) A centrally run urban center has a total population of at least 1 million;

b) A provincially run urban center has a total population of at least 500,000.

3. Average population density in the inner area

a) At least 12,000 people/km2, for centrally run urban centers;

b) At least 10,000 people/km2, for provincially run urban centers.

4. The non-agricultural labor in the inner area accounts for at least 85% of total labor.

5. Urban infrastructure facilities

a) In the inner area: Many urban infrastructure facilities are synchronously built and basically completed up to environmental sanitation standards; 100% of newly built production establishments apply clean technologies or are furnished with environmental pollution-minimizing equipment;

b) In the suburbs: Many urban infrastructure facilities are synchronously built and basically completed; the development of polluting projects is restricted; infrastructure facilities in rural residential spots are synchronously built; land areas favorable for agricultural development, urban greeneries and eco-landscapes are protected.

6. Urban architecture and landscape: Urban construction and development comply with regulations on urban architecture management. New urban quarters satisfy model urban-center standards with over 50% of urban thoroughfares up to standards of civilized urban streets, and have public areas for people's spiritual life and typical architectural complexes or works of national magnitude.

Article 11. Grade-II urban centers

1. Functions

A grade-II urban center functions as a provincial or inter-provincial economic, cultural, scientific-technical, administrative, education-training, tourist and service center and traffic and exchange hub with the role of promoting socio-economic development of a province or an inter-provincial territory.

A grade-II urban center being a centrally run city functions as a domestic and international economic, cultural, scientific-technical, administrative, education-training, tourist and service center and traffic and exchange hub with the role of promoting socio-economic development of an inter-provincial territory or several domains of national importance.

2. Population of a grade-II urban center is at least 300,000.

Population of a centrally run grade-II urban center is over 800,000.

Population density in the inner area is at least 8,000 people/km2, for a provincially run urban center, or at least 10,000 people/km2, for a centrally run urban center.

The non-agricultural labor in the inner area accounts for at least 80% of total labor.

5. Urban infrastructure facilities

a) In the inner area: Urban infrastructure facilities are synchronously built to be basically completed; 100% of newly built production establishments apply clean technologies or are furnished with environmental pollution-minimizing equipment;

b) In the suburbs: Some urban infrastructure facilities are basically synchronously built: infrastructure networks in rural residential spots are basically built; the development of polluting projects is restricted: land areas favorable for agricultural development, urban greeneries and eco-landscapes are protected.

6. Urban architecture and landscape: Urban construction and development comply with regulations on urban architecture management. New urban quarters satisfy model urban-center standards with over 40% of urban thoroughfares up to standards of civilized urban streets, and have public areas for people's spiritual life and typical architectural complexes or works of national magnitude.

Article 12. Grade-III urban centers

1. Functions

A grade-Ill urban center functions as a provincial or inter-provincial economic, cultural, scientific-technical, administrative, education-training, tourist and service center and traffic and exchange hub with the role of promoting socio­economic development of a provincial region, a province or several domains of inter-provincial importance.

2. Population of a grade-in urban center is at least 150,000.

3. Population density in the inner area is at least 6,000 people/km2.

4. The non-agricultural labor in the inner area accounts for at least 75% of total labor.

5. Urban infrastructure facilities

a) In the inner area: Urban infrastructure facilities are synchronously built and basically completed one after another; 100% of newly built production establishments apply clean technologies or are furnished with environmental pollution-minimizing equipment;

b) In the suburbs: Urban infrastructure facilities are synchronously built one after another; the development of polluting projects is restricted; infrastructure networks in rural residential spots are basically built; land areas favorable for agricultural development, urban greeneries and eco-landscapes are protected.

6. Urban architecture and landscape: Urban construction and development comply with regulations on urban architecture management. New urban quarters satisfy model urban-center standards with over 40% of urban thoroughfares up to standards of civilized urban streets, and have public areas for people's spiritual life and typical architectural complexes or works of regional or national magnitude.

Article 13. Grade-IV urban centers

1. Functions

A grade-IV urban center functions as an economic, cultural, administrative, scientific-technical, education-training, tourist and service center and traffic and exchange hub in an intra-provincial region or a province with the role of promoting socio-economic development of an intra-provincial region or several domains of provincial importance.

2. Population of a grade-IV urban center is at least 50,000.

3. Population density in the inner area is at least 4,000 people/km2.

4. The non-agricultural labor in the inner area accounts for at least 70% of total labor.

5. Urban infrastructure facilities

a) In the inner area: Urban infrastructure facilities have been or are being synchronously and completely built: newly built production establishments apply clean technologies or are furnished with environmental pollution-minimizing equipment;

b) In the suburbs: Urban infrastructure facilities are being synchronously built; land areas favorable for agricultural development, urban greeneries and eco-landscapes are protected.

6. Urban architecture and landscape: Urban construction and development better and better comply with regulations on urban architecture management.

Article 14. Grade-V urban centers

1. Functions

A grade-V urban center functions as a general or specialized economic, administrative, cultural, education-training, tourist and service center with the role of promoting socio-economic development of a district or communal cluster.

2. Population of a grade-V urban center is at least 4,000.

3. Average population density is at least 2,000 people/km2.

4. The non-agricultural labor in a consolidated street quarter accounts for at least 65% of total labor.

5. Urban infrastructure facilities have been or are being synchronously built one after another; newly built production establishments apply clean technologies or are furnished with environmental pollution-minimizing equipment.

6. Urban architecture and landscape: Urban construction and development better and better comply with regulations on urban architecture management.

Article 15. Region-based grading criteria applicable to a number of urban centers

For urban centers in highland, deep-lying, remote, border and island areas, criteria of their population and population density may be lessened but not lower than 50% of prescribed criteria, while other criteria must equal at least 70% of prescribed criteria applicable to urban centers of same grades.

Article 16. Grading criteria applicable to specific urban centers

For urban centers identified as specific, the criteria of population and population density may be lessened but not lower than 60% of prescribed criteria, while other criteria must equal those prescribed for urban centers of same grades and suit specific characteristics of each urban center.

Chapter 3

FORMULATION AND EVALUATION OF URBAN CENTER-GRADING SCHEMES AND URBAN DEVELOPMENT PROGRAMS AND COMPETENCE TO DECIDE TO RECOGNIZE URBAN CENTER GRADES

Article 17. Order of formulating and evaluating urban center-grading schemes and deciding to recognize urban center grades

1. For special-grade urban centers, grade-I urban centers, centrally run grade-II urban centers and specific urban centers: Provincial-level People's Committees shall formulate urban center-grading schemes and submit them to provincial-level People's Councils for approval before submission to the Prime Minister.

The Ministry of Construction shall evaluate urban center-grading schemes and submit them to the Prime Minister for consideration and decision.

2. For provincially run urban centers of grades I and II: People's Committees of provincial cities shall collaborate with provincial-level Construction Services in formulating urban center-grading schemes and submitting them to provincial-level People's Committees for further submission to provincial-level People's Councils for approval before submission to (he Prime Minister. The Ministry of Construction shall evaluate urban center-grading schemes before submitting them to the Prime Minister for consideration and decision.

3. For urban centers of grades III and IV: People's Committees of provincial cities or towns shall collaborate with provincial-level Construction Services in formulating urban center-grading schemes and submitting them to provincial-level People's Committees for further submission to provincial-level People's Councils for approval before submission to the Ministry of Construction.

The Ministry of Construction shall consider and evaluate urban center-grading schemes and decide to recognize urban centers of grades III and IV.

Article 18. Formulation and evaluation of schemes on, and decision to recognize, new urban centers

1. Recognition of grades of new urban centers: Provincial-level People's Committees shall formulate schemes for recognition of grades of new urban centers when these urban centers have been built basically up to grading criteria and submit these schemes to provincial-level People's Councils for approval.

The Ministry of Construction shall evaluate schemes for recognition of grades of new urban centers and issue a written approval as a basis for the formulation of schemes on the formation of new urban centers before submitting them to the Prime Minister for consideration and decision on their grades.

2. Recognition of grade-V urban centers: District-level People's Committees shall evaluate urban center-grading schemes.

Provincial-level Construction Services shall evaluate urban center-grading schemes for provincial-level People's Committees to submit them to provincial-level People's Councils for approval before consideration and decision.

Article 19. Formulation and approval of urban development programs

1. Provincial-level People's Committees shall formulate urban development programs and submit them to provincial-level People's Councils for approval before decision.

2. People's Committees of provincial cities and towns shall formulate urban development programs and submit them to provincial-level People's Committees for consideration and decision after these programs are approved by provincial-level People's Councils.

3 District-level People's Committees shall formulate urban development programs and population spots to be upgraded into grade-V urban centers under their management and submit these programs to provincial-level People's Committees for consideration and decision after they are approved by provincial level People's Councils.

4. Development and construction investment projects in urban centers must comply with urban development programs decided by competent authorities.

Article 20. Funds for urban center grading and urban development programs

1. Funds for urban center grading and urban development programs may he taken from the state budget's economic non-business funds allocated to localities under annual plans.

2. Funds for urban center grading and urban development programs cover:

a) Survey and collection of documents for the formulation of urban center-grading schemes and urban development programs:

b) Formulation, evaluation and approval of urban center-grading schemes and urban development programs:

c) Announcement of decisions recognizing urban center grades.

3. People's Committees at all levels shall work out funding plans for urban center grading and urban development programs within their administrative boundaries and submit these plans to provincial-level People's Committees for consideration and decision under current regulations.

4. The Ministry of Planning and Investment and the Ministry of Finance shall balance annual budgets from local economic non-business funds for urban center grading and urban development programs undercurrent regulations.

Chapter 4

ORGANIZATION OF IMPLEMENTATION

Article 21. Transition handling

1. For urban centers for which decisions recognizing their center grades have been issued before the effective date of this Decree, their current grades may be retained without having to carry out re-recognition procedures.

2. Based on grading criteria specified in this Decree. People's Committees at all levels shall review the urban development situation, assess problems, formulate urban development programs, and further invest in building urban centers to satisfy these criteria.

Article22. Responsibility of stale management of urban center grading

1. The Ministry of Construction is responsible before the Government for, and exercises the unified state management of, the grading of urban centers nationwide.

2. People's Committees at all levels shall perform the state management of the grading of urban centers within their administrative boundaries.

Article 23. Examination of urban center grading and urban development programs

1. The Ministry of Construction shall annually examine the grading of urban centers nationwide.

2. The Ministry of Construction shall collaborate with the Ministry of Planning and Investment and the Ministry of Finance in annually examining the implementation of urban development programs nationwide.

Article 24. Reporting on urban center grading and urban development programs

Provincial-level People's Committees shall:

1. Report to the Ministry of Construction on the grading of urban centers in their localities on a yearly basis and at the end of every five-year socio­economic development plan.

2. Report to the Ministry of Construction, the Ministry of Planning and Investment and the Ministry of Finance on the implementation of urban development programs in their localities on a yearly basis and at the end of every five-year socio­economic development plan.

Article 25. Effect

This Decree replaces the Government's Decree No. 72/2001/ND-CP of October 5, 2001, on the grading of urban centers and urban management levels.

This Decree takes effect on July 2. 2009.

Article 26. Implementation responsibility

1. The Ministry of Construction shall collaborate with concerned ministries and branches in guiding, monitoring and examining the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial-level People's Committees shall implement this Decree.