Resolution 79: Decentralization of power, expansion of public-private partnerships.

Resolution No. 79-NQ/TW stipulates that the state-owned economy continues to play a leading role in the socialist-oriented market economy.

Workers at a garment factory exporting goods in Garco 10 ( Hanoi ). Photo: Tran Viet/TTXVN

Resolution No. 79-NQ/TW (Resolution 79) of the Politburo, issued on January 6, 2026, stipulates that the state-owned economy will continue to play a leading role in the socialist-oriented market economy; it also calls for strong reforms in governance methods, decentralization of power, improved efficiency of public investment, and expanded cooperation with the private sector. As the national political and administrative center and the leading engine of development in the Red River Delta region, Hanoi is actively implementing Resolution 79 through practical programs and action plans, particularly in the areas of budget decentralization, public investment, and infrastructure development under the public-private partnership (PPP) model.

Implementing Resolution 79 in Hanoi is not only about carrying out a major policy of the Party, but also a self-driven requirement in the context of the capital city facing increasing pressure regarding urban development, infrastructure, digital transformation, ensuring social security, and improving the quality of life for its residents.

From policy to practical requirements

Resolution 79 sets the goal that by 2030, the state-owned economy must play a leading role in key sectors, maintain macroeconomic stability, ensure major balances, and create a foundation for sustainable development. One of the important orientations is to reform state governance in the economy towards strong decentralization and delegation of power to localities, coupled with enhanced accountability, transparency, and efficient use of public resources.

For Hanoi, this is an opportunity for the city to be more proactive in making decisions on public investment, allocating budgets, and selecting key projects, instead of relying heavily on the previous "request and grant" mechanism. At the same time, the Resolution also requires localities to promote the socialization of resources, creating conditions for the private sector and state-owned enterprises to participate in the development of infrastructure and public services.

According to the Hanoi People's Committee, immediately after Resolution 79 was issued, the city directed departments and agencies to develop implementation plans linked to the socio-economic development program for the period 2026-2030; clearly identifying three key priorities: budget decentralization and enhancing public investment responsibility; restructuring local state-owned enterprises; and expanding public-private partnerships in urban infrastructure and service development.

On the other hand, Resolution 79 emphasizes the need to continue restructuring, innovating, and improving the efficiency of state-owned enterprises, focusing on key and essential sectors. In Hanoi, the local state-owned enterprise system is being reviewed and reorganized towards streamlining, transparency, and enhanced competitiveness.

State-owned corporations and enterprises under the city's management, such as those in water supply, urban environment, drainage, lighting, and public transport, are designated to continue playing a core role in providing basic public services. However, instead of operating under the previous subsidized mechanism, these enterprises must shift to a modern management model, with transparent financial reporting, fair bidding processes, and strict supervision.

Simultaneously, Hanoi is also promoting expanded cooperation between state-owned enterprises and the private sector, especially in large projects requiring high investment capital and modern technology. This is a way to enhance the leading role of the state economy while effectively mobilizing social resources in accordance with Resolution 79.

A notable new feature of Resolution 79 is the requirement that "local authorities decide, local authorities implement, and local authorities are responsible" in public investment. This aligns with the reality of Hanoi, which has the largest budget in the country and a very high demand for infrastructure investment.

According to the Hanoi Department of Finance, the city plans to allocate hundreds of trillions of VND for medium-term public investment between 2026 and 2030, prioritizing urban transportation, environmental improvement, digital transformation, education, and high-quality healthcare. The strong decentralization of authority to the city in deciding on project lists and allocating funds will shorten the approval process and increase proactiveness and flexibility in implementation.

However, along with increased authority comes the need for stricter financial and budgetary discipline. Hanoi is implementing solutions to improve the effectiveness of public investment supervision, applying digital technology to monitor progress, quality, and disbursement of funds; while also strengthening inspections and audits to prevent losses and waste.

It can be said that the decentralization of public investment under Resolution 79 allows Hanoi to be more proactive, but at the same time requires the city to improve its project management capacity, control risks, and increase transparency throughout the entire process. This is a pressure, but also a driving force for innovation in working methods.

At the grassroots level, wards and communes are also given greater authority in deciding on investments in infrastructure, schools, healthcare, and urban development. This helps to quickly address the essential needs of the people while increasing the accountability of local authorities to the community.

New impetus for the development of the capital's infrastructure.

Given that Hanoi's infrastructure investment needs in the coming period are estimated to reach trillions of VND, the State budget is unlikely to meet all of them. Therefore, PPP (Public-Private Partnership) has become a crucial solution for implementing strategic projects.

In recent years, Hanoi has gradually developed a portfolio of PPP projects in transportation, environment, water supply and drainage, digital transformation, and smart urban services. Resolution 79 further provides a solid political foundation for the city to boldly expand cooperation with the private sector, ensuring a harmonious balance of interests between the State, businesses, and the people.

A prime example is the Red River bridge project and the new urban connecting road project being implemented by Hanoi under the PPP (Public-Private Partnership) model, aiming to reduce inner-city traffic pressure and expand urban development space. In addition, the city is also promoting PPPs in the fields of wastewater treatment, high-tech waste management, underground parking, data centers, and digital infrastructure.

According to experts, PPP in digital transformation is an inevitable trend. PPP not only helps mobilize capital but also brings management expertise, technology, and modern operating methods from the private sector, thereby improving the quality of public services. Recognizing this advantage, Hanoi is advocating for the integration of PPP into digital transformation and the development of a digital government. Accordingly, Hanoi is proactively cooperating with many large technology companies to develop a shared data platform, a smart operation center, full-service online public services, and applications serving citizens.

On the other hand, mobilizing the private sector to provide technology solutions helps reduce the initial investment burden from the budget, while ensuring a flexible operating system that quickly adapts to technological advancements. The city plays a facilitating role, ordering services; businesses provide solutions; and citizens benefit from increasingly modern digital amenities. This is precisely the spirit of combining the state and private economies that Resolution 79 aims for.

The challenges

However, alongside the initial successes, the implementation of Resolution 79 in Hanoi also faces numerous challenges. Dr. Le Thanh Nam, a public economics expert, noted that Resolution 79 demands a comprehensive reform of the state-owned economic development model. Hanoi is well-positioned to lead in decentralizing public investment and implementing PPPs, but success requires transparency throughout the entire process, increased capacity of officials, and the establishment of a reasonable risk-sharing mechanism with the private sector.

According to Mr. Le Trung Hieu, Deputy Director of the Hanoi Department of Finance: “The city is developing a list of PPP projects for the 2026-2030 period, linked to the Hanoi master plan. We prioritize projects with significant spillover effects, while also perfecting the project preparation, bidding, and contract management processes in accordance with international practices.”

From a local perspective, Mr. Kieu Trong Sy, Chairman of the People's Committee of Phuc Tho Commune, Hanoi, shared: Strong decentralization to local authorities helps to quickly resolve social welfare projects, but it also requires officials to improve their investment management skills and accountability. This is a major change in governance thinking.

Managers believe that the legal framework for PPPs needs further improvement, particularly regarding risk-sharing mechanisms, minimum revenue guarantees, payment mechanisms, and investor selection. This is a key factor in attracting large private investors, especially in infrastructure projects with long payback periods. Preparing pre-feasibility reports, conducting international bidding, and negotiating PPP contracts require high levels of expertise and practical experience.

With the synchronized implementation of Resolution 79, Hanoi is moving towards a development model in which the state-owned economy plays a leading role, but the private sector is strongly encouraged to participate, especially in infrastructure investment and urban services.

The city aims to establish a modern infrastructure system by 2030, with convenient regional connectivity, a green, smart, and livable living environment; comprehensively digitized public services; and data-driven urban governance. To achieve this goal, rational budget decentralization, efficient public investment management, and transparent PPPs will be three crucial pillars.

Resolution 79 has opened up new policy space for the development of the state-owned economy in the coming period, with a focus on strong decentralization, increased local responsibility, and expanded cooperation with the private sector. Hanoi, with its role as a national center and large-scale development, is leading the way in concretizing this spirit through clear, practical, and decisive action programs.

Source: https://baotintuc.vn/kinh-te/nghi-quyet-79-phan-cap-quyen-luc-mo-rong-hop-tac-cong-tu-20260216132611682.htm