Thu Duc is the first city using the city-within-city model in the country. It needs a suitable management mechanism and to be granted the higher level of authority than districts.
Under the Decree No. 33/NĐ-CP (ND33) providing guidelines for implementation of the Resolution No.131/2020/QH14 (NQ131) on organizing urban administration in HCMC, the municipal authorities should allow Thu Duc to directly manage Saigon Hi-tech Park (SHTP), Vietnam National University-HCMC, Linh Trung Export Processing Zone, a financial center that will to be established; and give some preferential treatment to cadres, civil servants and officials
According to the resolution No. 1111/NQ-UBTVQH14 on arranging administrative units at district and commune levels in the 2019-2021 period and establishing Thu Duc City, the city was officially formed on December 31, 2020 by merging three eastern districts of 2, 9 and Thu Duc.
The establishment of Thu Duc City is a very important special event. The first city using the city-within-city model in the country will help HCMC’s eastern region to become a core in the economic development of the southern hub and the Southern Key Economic Region. The new city is expected to donate one-third of the city’s economy and contribute 7 percent of the country's GDP.
However, the city has not given special mechanisms for its adequate conditions yet and operated under the district-level mechanism.
After one year since its establishment, the new city could not solve current obstacles and cope with work overload. It has not been given authority to solve current obstacles and cope with work overload and allowed to grant certificate of land use rights, approve investment projects, give employee treatment policies, manage tax collection, receive and develop infrastructures.