Japan International Cooperation Agency (JICA) No.

Hanoi People’s Committee

The Comprehensive Urban Development

Programme in Hanoi Capital City
of the Socialist Republic of Vietnam
(HAIDEP)

FINAL REPORT
Summary

March 2007
HAIDEP

ALMEC Corporation
Nippon Koei Co., Ltd.
YACHIYO Engineering co., Ltd.

SD
JR
07-24
 Japan International Cooperation Agency (JICA)
Hanoi People’s Committee

The Comprehensive Urban Development

Programme in Hanoi Capital City
of the Socialist Republic of Vietnam
(HAIDEP)

FINAL REPORT
Summary

March 2007

ALMEC Corporation
Nippon Koei Co., Ltd.
YACHIYO Engineering co., Ltd.
The exchange rate used in the report is

J. Yen 115 = US$ 1 = VND 16,000

（average in 2006）
 PREFACE

In response to the request from the Government of the Socialist Republic of Vietnam,
the Government of Japan decided to conduct the Comprehensive Urban Development
Programme in Hanoi Capital City and entrusted the program to the Japan International
Cooperation Agency (JICA).

JICA dispatched a team to Vietnam between December 2004 and March 2007, which
was headed by Mr. IWATA Shizuo of ALMEC Corporation and consisted of ALMEC
Corporation, Nippon Koei Co., Ltd., and Yachiyo Engineering Co., Ltd.

In collaboration with the Vietnamese Counterpart Team, the JICA Study Team
conducted the study including field surveys; demand forecast; conduct of pilot projects;
formulation of comprehensive urban development program and subsector master plans for
urban development, urban transportation, urban water and sanitation, and living conditions;
and conduct of prefeasibility studies on the selected priority projects. It also held a series of
discussions with the relevant officials of the Government of Vietnam. Upon returning to Japan,
the Team duly finalized the study and delivered this report.

I hope that this report will contribute to the sustainable development of Hanoi City and
to the enhancement of friendly relations between the two countries.

Finally, I wish to express my sincere appreciation to the officials of the Government of

Vietnam for their close cooperation.

March 2007

MATSUOKA Kazuhisa
Vice President
Japan International Cooperation
Agency
March 2007

MATSUOKA Kazuhisa
Vice President
Japan International Cooperation Agency
Tokyo

Subject: Letter of Transmittal

Dear Sir,

We are pleased to formally submit herewith the final report of the Comprehensive
Urban Development Programme in Hanoi Capital City in the Socialist Republic of Vietnam.

This report compiles the results of the study which was undertaken both in Vietnam and
Japan from December 2004 to March 2007 by the Team comprising ALMEC Corporation,
Nippon Koei Co., Ltd., and Yachiyo Engineering Co., Ltd.

We owe a lot to many people for the accomplishment of this report. First, we would like
to express our sincere appreciation and deep gratitude to all those who extended their
extensive assistance and cooperation to the Team, in particular the Hanoi City People’s
Committee.

We also acknowledge the officials of your agency, the JICA Advisory Committee, and
the Embassy of Japan in Vietnam for their support and valuable advice in the course of the
Study.

We hope the report would contribute to the sustainable development of Hanoi City.

Very truly yours,

IWATA Shizuo
Team Leader
Comprehensive Urban Development Programme in Hanoi Capital City
 TABLE OF CONTENTS

EXECUTIVE SUMMARY

SUMMARY
1. Introduction..........................................................................................................1

2. Profile of Hanoi....................................................................................................3

3. Need for Strategic Planning for Hanoi’s Sustainable Development ..................23

4. Vision, Objectives, and Basic Strategies...........................................................27

5. General Plan Formulation .................................................................................29

6. Hanoi’s Role in the Region................................................................................37

7. Future Population and Urban Growth Management..........................................41

8. Socio-economic Development...........................................................................45

9. Urban Transportation ........................................................................................49

10. Urban Water and Sanitation ..............................................................................73

11. Housing and Living Conditions..........................................................................93

12. Environment ......................................................................................................97

13. Urban Design and Landscape.........................................................................103

14. Special Areas ..................................................................................................107

15. Pilot Projects ...................................................................................................125

16. Prefeasibility Studies .......................................................................................139

17. Implementation................................................................................................147

18. Implementation and Management...................................................................159

19. Conclusion and Recommendations.................................................................167

APPENDIX

i
 LIST OF TABLES

Table 2.1 Hanoi’s Population by District .............................................................................................................8

Table 2.2 Characteristics of Households in Hanoi...............................................................................................8
Table 2.3 Major Socio-economic Indicators of Hanoi, 2005 ................................................................................9
Table 2.4 Vehicle Ownership Rates among Hanoi and HCMC Households ...................................................16
Table 2.5 Urban Transportation Demand in Hanoi ...........................................................................................16
Table 2.6 People’s Assessment of Traffic Safety ..............................................................................................16
Table 2.7 Housing Stocks in Hanoi ...................................................................................................................18
Table 4.1 Objectives of Selected Subsectors....................................................................................................27
Table 4.2 Objectives and Target Indicators of Hanoi SEDP ..............................................................................28
Table 6.1 Orientation of HMA Plan....................................................................................................................38
Table 6.2 Proposed Regional Development Strategies and Actions .................................................................40
Table 7.1 Future (2020) Population of Hanoi and Integrated Areas ..................................................................42
Table 7.2 Proposed Urban Growth Management Strategies and Actions .........................................................44
Table 8.1 Proposed Socio-economic Development Strategies and Actions ......................................................48
Table 9.1 Target Modal Shares for 2020 ...........................................................................................................50
Table 9.2 Modal Shares in Asian Cities.............................................................................................................50
Table 9.3 Modal Shares of Interprovincial Transportation to/from Hanoi...........................................................51
Table 9.4 Profile of UMRT Lines, 2020 .............................................................................................................60
Table 9.5 Summary of HAIDEP Projects...........................................................................................................69
Table 9.6 Performance of the Road Network ....................................................................................................70
Table 9.7 Proposed Urban Transportation Development Strategies and Actions ..............................................72
Table 10.1 Estimated Water Demand in Hanoi ...................................................................................................73
Table 10.2 Required Daily Maximum Distribution of Urban Water by Service Area ............................................73
Table 10.3 Water Treatment Plant Development ................................................................................................74
Table 10.4 Water Treatment Facilities Development Plan...................................................................................75
Table 10.5 Cost of Water Supply Plan ................................................................................................................77
Table 10.6 Proposed Drainage System ..............................................................................................................79
Table 10.7 Proposed Projects on Drainage System Development up to 2020....................................................79
Table 10.8 Proposed Sewerage System up to 2020 ...........................................................................................82
Table 10.9 Dimensions of Dykes along the Red and Duong Rivers....................................................................86
Table 10.10 Estimated Discharge during Floods in High Water Channels and between Whole Sections ......................................88
Table 10.11 Potential Flood Protection Projects ...................................................................................................88
Table 10.12 Proposed Facilities for Solid Waste Management .............................................................................89
Table 10.13 Proposed Urban Water and Sanitation Development Strategies and Actions....................................92
Table 11.1 Proposed Housing and Living Conditions Development Strategies and Actions ...............................96
Table 12.1 Proposed Environmental Management Strategies and Actions.......................................................101
Table 13.1 Proposed Urban Design and Landscape Development Strategies and Actions ..............................104
Table 14.1 Development in Selected Areas Outside the Dyke .......................................................................... 110
Table 14.2 Profile of Households and Living Conditions in the Ancient Quarter and Hanoi .............................. 116
Table 14.3 Proposed Actions for Ho Tay Area...................................................................................................121
Table 15.1 Assessment of Impacts of Pilot Project in the Ancient Quarter........................................................127
Table 15.2 Proposed Delineation of Functions between General Plan and Detailed Plan ................................131
Table 15.3 Conditions of the Pilot Project Area in Outside-of-dyke Area...........................................................135
Table 15.4 Classification and Conditions of Illegal Construction (Preliminary Estimate)...................................137
Table 15.5 Main Issues and Problems in Outside-of-dyke Area........................................................................138
Table 16.1 UMRT 2 Profile................................................................................................................................140
Table 16.2 UMRT 2 Project and O&M Costs.....................................................................................................141
Table 16.3 RR4 West Project Cost ...................................................................................................................146
Table 17.1 Total Investment Cost by Subsector ................................................................................................147
Table 17.2. Proposed Urban Transportation Projects .......................................................................................148
Table 17.3 Proposed Regional Transportation Projects ....................................................................................149
Table 17.4 Proposed Urban Water and Sanitation Projects ..............................................................................150
Table 17.5 Proposed Living Conditions Projects...............................................................................................150
Table 17.6 Proposed Urban Development Projects ..........................................................................................151
Table 17.7 Possible Budget Envelope for the Urban Sector .............................................................................152
Table 17.8 Prioritization of UMRT Projects ......................................................................................................154
Table 17.9 Prioritization of Urban Water and Sanitation Projects......................................................................155
Table 17.10 Recommended Projects on Solid Waste Management ...................................................................155
Table 17.11 HAIDEP-proposed Strategic Actions ...............................................................................................156

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Table 18.1 PPP Opportunities in HAIDEP Projects ...........................................................................................166
Table 18.2 Proposed Development Strategies and Actions on Implementation and Management ...................166

LIST OF FIGURES

Figure 1.1 HAIDEP Study Area.............................................................................................................................2

Figure 2.1 Expansion of Urban Areas in 1983, 1996, and 2003 ...........................................................................4
Figure 2.2 Population Growth in Hanoi City .........................................................................................................4
Figure 2.3 Phisical Setting of Hanoi .....................................................................................................................6
Figure 2.4 Coverage of and Satisfaction with Urban Services ...........................................................................12
Figure 2.5 Changes in Bus Passenger Ridership...............................................................................................16
Figure 2.6 Important Factors for Improved Bus Services ...................................................................................16
Figure 2.7 Affordability Levels of Average Households for Housing ...................................................................18
Figure 2.8 Method for Analysis of Living Conditions...........................................................................................20
Figure 2.9 Overall Objective Evaluation .............................................................................................................20
Figure 2.10 Overall Subjective Evaluation............................................................................................................20
Figure 2.11 Score Chart of Hanoi City..................................................................................................................20
Figure 2.12 Expected Problems If No Proper Measures are Implemented ..........................................................22
Figure 3.1 Urbanization Trends in Asian Countries ............................................................................................23
Figure 3.2 HAIDEP Approach to Comprehensive Planning and Integrated / Coordinated Development .....................................25
Figure 3.3 Process of Formulating the Master Plan ...........................................................................................25
Figure 5.1 Spatial Development Planning Framework........................................................................................30
Figure 5.2 Hanoi Endowed with “Water-Greenery-Culture” Resources ..............................................................34
Figure 5.3 Proposed General Plan .....................................................................................................................35
Figure 5.4 Basic Structure of the Proposed General Plan ..................................................................................36
Figure 6.1 Development of Growth Corridors ....................................................................................................40
Figure 7.1 Future Population in Urban Areas of Hanoi and Adjoining Provinces ................................................42
Figure 7.2 Concept of Urban Growth Boundary ................................................................................................43
Figure 9.1 Planning Target for 2020 ...................................................................................................................50
Figure 9.2 Interprovincal Traffic Distribution in the Study Area ...........................................................................51
Figure 9.3 Proposed Regional Road Network ....................................................................................................52
Figure 9.4 Concept of High-quality Expressway.................................................................................................53
Figure 9.5 Completion of Ring Rail Route around Hanoi....................................................................................54
Figure 9.6 Extension of Hanoi’s UMRT to Satellite Cities /Urban Areas .............................................................54
Figure 9.7 Integrated High-quality Expressways ................................................................................................54
Figure 9.8 Proposed HAIDEP Road Network .....................................................................................................56
Figure 9.9 Comparison of Road Network Densities............................................................................................56
Figure 9.10 Proposed Bridges Across the Red River ...........................................................................................57
Figure 9.11 Concept of Land Readjustment.........................................................................................................58
Figure 9.12 Proposed UMRT Lines, 2020 ............................................................................................................60
Figure 9.13 UMRT Network Configuration in CBD ...............................................................................................62
Figure 9.14 UMRT Systems .................................................................................................................................64
Figure 9.15 Primary Bus Route Network ..............................................................................................................66
Figure 9.16 Secondary Bus Route Network .........................................................................................................66
Figure 9.17 Public Transportation Development...................................................................................................66
Figure 9.18 Concepts and Pictures of Ideal Sidewalks ........................................................................................68
Figure 9.19 Areas Reachable within 30- and 60-Minute Travel to/from Hoan Kiem Lake ....................................70
Figure 10.1 Proposed Water Treatment Plants and their Service Coverage ........................................................75
Figure 10.2 Proposed Transmission Pipeline Network .........................................................................................76
Figure 10.3 Implementation of the Drainage System Development Plan .............................................................80
Figure 10.4 Proposed Drainage System Development ........................................................................................80
Figure 10.5 Image of Multipurpose Reservoir ......................................................................................................81
Figure 10.6 Example of Multipurpose Flood Regulating Reservoir in Japan ........................................................81
Figure 10.7 Implementation of the Sewerage System Development Plan............................................................83
Figure 10.8 Proposed Sewerage System Development.......................................................................................83
Figure 10.9 Typical Structural Improvement of a Lake .........................................................................................85
Figure 10.10 Structural Countermeasures for Improvement of Water Quality ........................................................85
Figure 10.11 Layout of the Diversion of Environmental Maintenance Flow............................................................85
Figure 10.12 Annual Highest Water Levels of the Red River in Long Bien, 1902 - 2004 .......................................86

iii
Figure 10.13 Dyke Alignment around Hanoi City....................................................................................................87
Figure 10.14 Assumed Cross-section of Red River between Long Bien and Chuong Duong ................................88
Figure 10.15 Forecasts on Accumulated Waste Volume in Nam Son Landfill ........................................................90
Figure 10.16 Proposed Solid Waste Management Flow in Hanoi City, 2020..........................................................90
Figure 12.1 Environmental Zones and Green Belts in Hanoi Region ...................................................................98
Figure 12.2 Hazard Map of Hanoi ........................................................................................................................98
Figure 12.3 Development Suitability of Land in Hanoi..........................................................................................98
Figure 12.4 Water Systems in Hanoi ..................................................................................................................100
Figure 12.5 Major Lakes in Hanoi’s Urban Areas ...............................................................................................100
Figure 12.6 Green Resources in Hanoi ..............................................................................................................100
Figure 12.7 Agricultural Lands in Hanoi .............................................................................................................100
Figure 12.8 Important Environmental Resources in Hanoi .................................................................................102
Figure 13.1 Positive Landscape Elements Favored by Hanoians ......................................................................106
Figure 14.1 Location of Special Areas in Hanoi City...........................................................................................107
Figure 14.2 Development Opportunities along the Red River Waterfront ...........................................................108
Figure 14.3 Past and Current Layout of Outside-of-dyke Area and the Ancient Quarter ....................................109
Figure 14.4 Location of Red River and Outside-of-Dyke Area............................................................................ 110
Figure 14.5 Planning Framework for Outside-of-Dyke Area ............................................................................... 111
Figure 14.6 Development Concept for Outside-of-Dyke Area............................................................................. 112
Figure 14.7 Preliminary Development Concept for Thang Long - Co Loa Zone ................................................. 114
Figure 14.8 Image of Proposed Cultural Core in Thang Long - Co Loa Zone .................................................... 114
Figure 14.9 Map of the Ancient Quarter ............................................................................................................. 117
Figure 14.10 Tangible and Intangible Values for Preservation ............................................................................. 117
Figure 14.11 Implementation Mechanism for Sustainable Development in the Ancient Quarter .......................... 118
Figure 14.12 Proposed Funding and Organization for the Development Model for the Ancient Quarter .............. 119
Figure 14.13 Development Concept for Ho Tay Waterfront Area ..........................................................................122
Figure 15.1 Pilot Project Area in the Ancient Quarter .........................................................................................125
Figure 15.2 Process of Block Redevelopment Planning.....................................................................................126
Figure 15.3 Proposed Network for Preservation of Core Values of the Ancient Quarter ....................................129
Figure 15.4 Proposed Development Structure Plan ...........................................................................................133
Figure 15.5 Proposed Land-use Plan.................................................................................................................133
Figure 15.6 Proposed Community Development Plan........................................................................................134
Figure 15.7 Key Facilities Plan ...........................................................................................................................134
Figure 15.8 Pilot Project Area in Outside-of-dyke Area ......................................................................................136
Figure 16.1 UMRT 2 Route ................................................................................................................................140
Figure 16.2 Location of Ring Road 4 West.........................................................................................................145
Figure 16.3 Location of Interchanges on Ring Road 4 West and Typical Cross-section ....................................146
Figure 17.1 Framework for Project Evaluation and Prioritization........................................................................152
Figure 17.2 Planned Growth Strategy for Urban Areas ......................................................................................153
Figure 17.3 Prioritization of Road Projects .........................................................................................................154
Figure 18.1 Proposed Framework for Development Planning ............................................................................160
Figure 18.2 Strategic Mobilization of Funding ....................................................................................................163
Figure 18.3 Maximizing the Effect of Public Sector Resource Allocation............................................................163
Figure 18.4 PPP Models on the Basis of Profitability .........................................................................................164
Figure 18.5 Value Capturing of UMRT’s External Benefit...................................................................................165

LIST OF BOXES

Box 3.1 Brief Description of HAIDEP Planning Information System .....................................................................26

Box 13.1 Preliminary Landscape Guidelines ........................................................................................................105

iv
 ACRONYMS AND ABBREVIATIONS
ADB Asian Development Bank
BOD Biochemical Oxygen Demand
BOT Build-operate-transfer
BRT Bus Rapid Transit
CAAV Civil Aviation Authority of Vietnam
CBD Central Business District
COD Chemical Oxygen Demand
CPC Commune People’s Committee
CPRGS Comprehensive Poverty Reduction and Growth Strategy
DOF Department of Finance
DONRE Department of Natural Resources and Environment
DPC District People’s Committee
EIRR Economic Internal Rate of Return
FAR Floor Area Ratio
FDI Foreign Direct Investment
FIRR Financial Internal Rate of Return
GDP Gross Domestic Product
GIS Geographical Information System
GRDP Gross Regional Domestic Product
HAIDEP The Comprehensive Urban Development Programme in Hanoi Capital City
HAPI Hanoi Authority for Planning and Investment
HDI Human Development Index
HIS Household Interview Survey
HMA Hanoi Metropolitan Area
HPC Hanoi People's Committee
HSDC Hanoi Sewerage and Drainage Company
HWBC Hanoi Water Business Company
IT Information Technology
ICD Inland container depot
ITS Intelligent Transportation System
IWT Inland Waterway Transportation
JBIC Japan Bank for International Cooperation
JICA Japan International Cooperation Agency
KTT Collective Apartment Areas
LURC Land-use Rights Certificate
MARD Ministry of Agriculture and Rural Development
MOC Ministry of Construction
MOF Ministry of Finance
MONRE Ministry of National Resources and Environment
MOT Ministry of Transport
MP Master Plan
MPI Ministry of Planning and Investment
NCCP National Council for Construction Planning
NFEZ Northern Focal Economic Zone
NIURP National Institute of Urban and Regional Planning
NPV Net Present Value
ODA Official Development Assistance
PFI Private Finance Initiative
PPP Public Private Partnership
ROW Right of Way
RRD Red River Delta
SEDP Socio-Economic Development Plan
SOE State-Owned Enterprise
SWM Solid Waste Management
TDM Transportation Demand Management
TSP Total Suspended Particulate
TUPWS Department of Transport and Urban Public Works Services
UCA Urban Control Area
UDA Urban Development Area
UGB Urban Growth Boundaries
UMRT Urban Mass Rapid Transit
VINACONEX Vietnam Construction and Import-Export Corporation
WHO World Health Organization
WTO World Trade Organization
WWTP Wastewater Treatment Plant

v
 HAIDEP in Pictures

The HAIDEP Exhibition in August 2006. HAIDEP exhibition hall.

4th Steering Committee meeting on 31 March 2006. Plenary working group meeting on 5 August 2005.

Technical working group meeting on the urban water Technical working group meeting on the urban
subsector on 23 February 2005 development subsector on 14 June 2005.

vi
EXECUTIVE SUMMARY
 The Comprehensive Urban Development Programme in Hanoi Capital City (HAIDEP)
Final Report
EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

STUDY OBJECTIVES AND SCOPE

1. The Comprehensive Urban Development Programme in Hanoi Capital City of the Socialist
Republic of Vietnam, or HAIDEP, was conducted between December 2004 and March 2007 at the
request of the Vietnamese government for the Hanoi People’s Committee (HPC) in order to update
the existing urban master plan for the city up to 2020.1 This was done based on a review of related
plans and a further analysis of current socio-economic changes that affect, and the prospects that
will have a significant impact on, the sustainable development of the city. The study included the
conduct of pilot projects on urban planning and prefeasibility studies on priority urban
transportation projects. Capacity building on urban planning and development throughout the
study process was expected.
2. In consideration of Hanoi’s significant role and development impact in the region, the
HAIDEP study area covered 15 provinces in northern Vietnam2. A prerequisite in the HAIDEP
planning work was the coordination/harmonization with the ongoing Hanoi Metropolitan Area
Development Plan formulation by NIURP under the MOC, the existing Red River Delta Plan, and
the Northern Focal Economic Zone Plan under the MPI. Hence the study area covered the
provinces included in these plans. The study area encompassed 36,252 km2 and 23.4 million
population, of which Hanoi shares 921 km2 and 3.2 million population.

MAIN DEVELOPMENT ISSUES AND NEED FOR COMPREHENSIVE PLANNING

3. Hanoi City and the region stand at a critical stage of development for the first time in history
as Vietnam ventures into a full-blown urbanization, albeit belatedly compared to other countries in
Asia. While the level of urbanization as of 2005 was still low at 30%, this is expected to rise to 43%
by 2030 and to further levels thereafter. This rapid urbanization process is associated with
economic growth, industrialization, motorization, globalization, and increasing foreign direct
investments, all of which bring about complex impacts, both positive and negative, on the
socio-economy and the environment of the city and the region. While it is without doubt that
economic growth increases incomes and contributes to the improved quality of life of the people,
rapid increases in populations and concentration of functions and activities worsen traffic
congestion, safety levels, living conditions, and the environment. Urban problems become
increasingly complicated, people’s demands become more exacting, and the number of
stakeholders expands. Cities in Vietnam are thus faced with the enormous challenge of
establishing workable mechanisms to guarantee their sustainable growth and development. This is
particularly critical for large urban areas like the cities of Hanoi and Ho Chi Minh.
4. Current urban problems facing Hanoi may not be as serious as those faced by other large
developing cities such as Metro Manila, Jakarta, or Ho Chi Minh. Most people are provided with
housing, although small, and basic urban utilities, even if limited in suburban areas. Traffic
congestion is increasing but average travel time for going to the offices in the morning is only
about 20 minutes. Air pollution is tolerable in most parts of the city, although urban areas are
threatened by occasional floods and inundations. Results of a 20,000-respondent Household
Interview Survey conducted in the beginning of the HAIDEP Study showed that, in general, the
people are not dissatisfied with their existing living conditions except in certain areas. However, as
1
The existing urban master plan was formulated in 1998.
2
Including Hanoi City Hai Phong City and the northern Red River delta provinces of Ha Tay, Vinh Phuc, Bac Ninh,
Hai Duong, Hung Yen, Ha Nam, Quang Ninh, Hoa Binh, Bac Giang, Thai Nguyen, Nam Dinh, Thai Binh, Ninh
Binh, and Phu Tho.

ES-1
The Comprehensive Urban Development Programme in Hanoi Capital City (HAIDEP)
Final Report
EXECUTIVE SUMMARY

objective indicators showed relatively low scores compared to international benchmarks, problems
are expected to surface and the people’s dissatisfaction levels will grow as the demand-supply
balance breaks down, something that has become already apparent in many areas in the city.
Difficulties in attending to urban problems in big cities, like Hanoi, are attributed to the fact that all
urban problems are interrelated and that a solution in one sector may impact negatively on another.
The rapid growth of urban areas also makes the sustainability of solutions complicated. Many
other cities in Asia, including those in Japan, have experienced and are experiencing this tenuous
situation which Hanoi is currently faced with. As the situation becomes more serious, the current
practices in urban planning and development in Hanoi are unable to keep up with it as effectively
as before, resulting in a number of problems such as a mismatch between the plan and actual land
use and population distribution, occurrence of informal and illegal developments, difficulties in
securing land and space for public infrastructure development, uncertainty in promoting the
envisioned development, among others.

HAIDEP APPROACH AND MASTER PLAN FRAMEWORK

5. Hanoi currently faces the challenge of establishing a workable framework for a more
effective urban planning and development. Therefore, a master plan is crucial to rein in a runaway
development. It will serve not merely as a pointer of spatial development but as a guide with its
system comprising a vision and goals, strategies, sector plans including projects and actions, as
well as implementation and monitoring mechanisms supported with the necessary institutional
setups. The planning process practiced in the HAIDEP Study showed the proposed approach to
urban planning in Hanoi and the conceptual framework for an improved urban master plan for the
city (see Figure ES.1). The main points are as follows:
(a) To identify the way to achieve the vision and goals for the study area by elaborating the
strategies, projects, and actions.
(b) To plan the socio-economic, land-use, environmental, and spatial structure of the study area in
an integrated manner.
(c) To plan the study area’s urban development, transportation, and infrastructure services and
living conditions in a comprehensive manner.
(d) To plan based on a spatial hierarchy of areas, i.e. regional, provincial, city, and district levels.
(e) To provide effective planning tools and development mechanisms to support the
above-mentioned comprehensive approach.
Figure ES.1 Basic Planning Approach and Conceptual Framework for the HAIDEP Master Plan
Vision and Goals
Indicators General Plan
Basic Strategies for Sustainable Development
• Performance targets • Basic spatial structure
Subsector Plans
• Urban development
Planning Database • Urban transportation Participatory Mechanisms
• GIS-based map • Water and sanitation • Opinion surveys
information • Living conditions • Stakeholder meetings
• Comprehensive • Seminars/workshops
household interview and Plan Implementation Mechanisms • Exhibition
social survey • Pilot projects • Newsletters
• Urban karte • Prefeasibility studies
• Development methods
• Institutional reform

Comprehensive Program
• Policies
Monitoring Indicators Funding
• Programs
• Implementation plan
Source: HAIDEP Study Team.
ES-2
 The Comprehensive Urban Development Programme in Hanoi Capital City (HAIDEP)
Final Report
EXECUTIVE SUMMARY

VISION, GOALS, AND OBJECTIVES

6. The vision of Hanoi as stated in Order No. 1/2001/L-CTN and consented widely among
stakeholders read: “Hanoi must be built as a modern and thriving capital city, symbolizing the
whole country and functioning as a national and regional center for policy, culture, science,
technology, education, economy, and international trade.” The primary aim is to develop Hanoi in
an economically, socially, culturally, environmentally, and politically sustainable manner, making
sure that the city’s beauty, resources, and amenities will be sustained for generations to come. It is
intended that the envisioned sustainable development of Hanoi is achieved by (i) enhancing its
cultural identity, (ii) developing a competitive urban economy, (iii) promoting livable environment,
(iv) ensuring environmental sustainability, and (v) strengthening governance.
7. The vision and goals for the urban sector are further translated into specific objectives and
orientations for subsectors and policy areas, namely (i) the role of Hanoi in the region, (ii)
population and growth management, (iii) socio-economic development, (iv) transportation, (v)
water and sanitation, (vi) environment, (vii) housing and living conditions, (viii) urban design and
landscape, (ix) special development areas, and (x) implementation and management (see Table
ES.1).
Table ES.1 Objectives of Subsectors and Policy Areas

Subsector/Policy Area Main Objective

A. Hanoi’s Role in the • Promote high and balanced growth
Region • Alleviate poverty and promote environmental sustainability
• Enhance regional governance
B. Population and • Promote integration / coordination among cities / urban areas in Hanoi metropolitan area
Growth Management • Promote organized expansion of urban areas
• Promote competitive and livable urban areas
C. Socio-economic • Achieve sustainable, high economic growth through knowledge-based industries, services, and FDIs
Development • Reduce inequalities and enhance quality of life of the people including the poor
• Further improve investment environment through institutional reform, infrastructure improvement, and
human resource development
D. Urban Transportation • Promote development of public-transportation-based urban area and society
• Ensure equitable and safe mobility and accessibility for all
• Ensure efficient/effective transportation between Hanoi and the rest of region
E. Urban Water and • Ensure the people’s safety and healthiness by improving water environment
Sanitation • Promote sustainable use of water resources
• Enhance the city’s image by improving water environment and sanitation conditions
F. Housing and Living • Provide affordable housing especially for the poor through institutional and fiscal support including
Conditions upgrading old housing stocks
• Ensure smooth provision of land for housing
• Improve living conditions based on a comprehensive assessment of areas
G. Environment • Ensure environmental sustainability and effective land use for Hanoi as well as its metropolitan area
• Ensure the people’s healthiness and safety by reducing pollution and improving disaster preparedness
• Conserve and enhance cultural and traditional values
H. Urban Design and • Enhance the image and identify of Hanoi appealing to the citizens and international society
Landscape • Ensure traditional tangible and intangible cultural values are preserved and enhanced
• Enhance public awareness of the importance of urban design and landscape
I. Special Development • Realize the concept of “water-greenery-culture” to enhance the charm and identity of Hanoi by
Area regenerating historic areas
• Promote opportunities for new urban economic and social development toward the next millennium
• Establish effective mechanism for sustainable development with the participation of city stakeholders
J. Implementation and • Improve institutional framework for more effective urban planning and management
Management • Strengthen planning and development capacity of human resources and related organizations
• Strengthen coordination among related organizations at both central and local levels
Source: HAIDEP Study Team.

ES-3
The Comprehensive Urban Development Programme in Hanoi Capital City (HAIDEP)
Final Report
EXECUTIVE SUMMARY

PROPOSED GENERAL PLAN

8. A primary objective of the HAIDEP Study was to update the spatial development plan of the
1998 Master Plan. HAIDEP proposes that the future land use and urban facility development be
controlled and guided by a two-tier plan, namely the General Plan at the city level and the District
Plan at the local level. The former provides the basic direction for urban growth and overall land
use, while the latter determines land use and urban facilities on a more detailed level. An important
role of the General Plan is the translation of the socio-economic development orientation of an
area, including its vision and development strategies, into a spatial development plan. Integration
is the key concept in the HAIDEP Study as a whole and in spatial planning in particular to generate
the parallel effects of robust economic growth and reduced poverty levels. The main areas of
integration are as follows: (i) socio-economic development with spatial development; (ii) regional
plans; (iii) 1998 Master Plan; (iv) international, regional, and metropolitan levels; (v) Hanoi City’s
urban areas and those in adjacent provinces; (vi) main urban areas within Hanoi; (vii) urban and
transportation infrastructure development; and (viii) urban-rural linkages.
9. The HAIDEP-proposed General Plan adopted the basic concept used in the 1998 Master
Plan and updated it based on the master plan’s achievements so far, the changes that have
occurred since the plan was prepared, and the prospects that the city and the region now face. All
these are embodied in the seven strategies that make up the HAIDEP-proposed General Plan, as
described below (see Figure ES.2).
Strategy 1: Establish a spatial backbone comprising “water,” “greeneries,” and “culture” to
ensure environmental sustainability and enhance the identity of Hanoi. For this, the Red
River and its tributaries, Ho Tay, Co Loa, the Ancient Quarter, and the French Quarter, as well as
the regional green belts will provide the foundation and integrate the main lakes, parks, cultural
sites, and tree-lined streets. This comprehensive water-greenery-culture network aims at
strengthening the city’s image and identity.
Strategy 2: Develop public-transportation-oriented urban areas to ensure mobility of the
people and to promote an environment-friendly society. For this, an urban mass rapid transit
(UMRT) network will provide the urban areas with a quality transport backbone which can further
extend to adjoining urban areas. The main urban centers and traffic-generating areas will be
distributed in integration with the UMRT routes to improve accessibility and people’s mobility. A
comprehensive road network composed of radial and ring roads will improve traffic distribution
within the urban areas and, at the same time, facilitate proper interface between urban and
interprovincial transportation to avoid the entry of through traffic into the city center.
Strategy 3: Upgrade and revitalize existing built-up areas both in the city center and fringe
areas, including the Ancient Quarter and the French Quarter, to improve living conditions,
preserve and enhance the cultural heritage, and promote economic development. Existing
urban areas must be constantly upgraded, for which the General Plan provides the orientation on
the desirable land use and infrastructure development.
Strategy 4: Develop modern and competitive new urban centers to attract diversified,
quality investments that will generate employment opportunities, and improve the people’s
accessibility to needed services. New urban centers will be developed in strategic locations to
provide competitive space for business and commercial activities as the diversifying urban
economy further grows and to provide employment opportunities within reasonable travel
distances.

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Figure ES.2 HAIDEP-proposed General Plan

Source: HAIDEP Study Team.

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Strategy 5: Develop efficient infrastructure and services to ensure convenient and

competitive socio-economic activities and affordable services for all including the poor.
Necessary infrastructure services including water supply, drainage, sewerage, and solid waste
disposal are provided in compliance with the development of urban areas as directed in the
General Plan.
Strategy 6: Prepare effective disaster prevention measures to protect against natural and
man-induced disasters, and environmental degradation. The proposed plan gives an
integrated solution to disaster prevention by providing an extensive greenery network,
redevelopment of outside-of-dyke areas of the Red River, development of new urban areas on
lands with better development conditions, and other disaster-mitigating measures.
Strategy 7: Strengthen institutions and public participation for effective urban management
and capacity building, as well as efficient and effective delivery of services. The proposed
General Plan incorporates a number of strategic institutional arrangements, such as growth
boundaries, zoning, as well as the designation of key urban roads and facilities, for the effective
management of urban development.

HANOI’S ROLE IN THE REGION

10. The role of Hanoi in northern Vietnam as well as in the country will become increasingly
important. At present, the region is beset with various issues such as: (i) widening inequalities, (ii)
uncontrolled land use, (iii) degraded environment, (iv) untapped economic potentials, (v) weak
transportation and infrastructure, and (vi) lack of strategic/coordinated planning.
11. As Hanoi’s influence in the region grows, it is expected to contribute to the growth and
balanced development of the region. For this, Hanoi must implement the strategies and actions
listed in Table ES.2.
Table ES.2 Proposed Regional Development Strategies and Actions

Strategy Action
Update regional • Complete coordinated and integrated/ coordinated regional development plans
development • Establish practical implementation mechanism including wider practices of PPP and
strategies PFI schemes
• Identify and implement coordinated/integrated regional development projects
Develop growth • Develop high-quality transportation/logistics corridor along Vin Phuc – Hanoi – Hai
corridor with global Phong / Quang Ninh
competitiveness • Develop urban areas and attractive industrial zones provided with competitive services
• Establish conducive investment environment to encourage FDIs
Strengthen poverty • Map and identify poverty in the region
reduction strategies • Provide effective menus and programs for identified poverty issues
and expand • Establish coordinated mechanism for effective implementation of poverty reduction
program program
Establish workable • Strengthen coordination on regional development among provincial governments
regional • Establish regional development coordinating council comprising provincial
coordination government representatives
mechanism • Expand coordination with donors through Urban Forum
Strengthen • Establish common information database to aid regional planning and development
capacities of • Establish permanent training system for capacity building of provincial officers under
provincial the central government
governments • Strengthen planning departments of provincial governments
Source: HAIDEP Study Team.

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FUTURE POPULATION AND URBAN GROWTH MANAGEMENT

12. How to manage the future growth of the population and urban areas is one of the
challenges facing the city leadership. If this process is not properly managed, sprawl, disorderly
land use and development, environmental harm, and congestion, among others, will worsen. This
will be particularly critical in Hanoi where urbanization is making rapid progress. It was estimated
that the population in Hanoi’s integrated urban areas by 2020 would be 5.1 million, with Hanoi
accounting for 4.5 million and the remaining 0.6 million would be in its directly integrated urban
areas in adjoining provinces.
13. Growth management of Hanoi must be implemented at two levels. At the metropolitan level,
the development of satellite cities and urban centers will help a balanced distribution of urban
population and functions which will in turn help lessen the excessive load on Hanoi. At the city
level, the future growth must be managed through an integrated development of a high-quality
UMRT network and the urban area as well as an effective land-use control. At the same time,
existing urban areas must also be upgraded to facilitate a more effective land-use and
environmental improvement. Without a proper growth management, the expected positive impacts
of various improvement measures undertaken in other subsectors will either diminish or not be
realized at all (see Table ES.3).
Table ES.3 Proposed Urban Growth Management Strategies and Actions
Strategy Action
Establish metropolitan • Complete a coordinated and integrated metropolitan development plan for areas
growth and development within 30-50 km radius
strategies for areas within • Establish interjurisdictional coordination mechanism
30-50km radius of Hanoi • Develop corridors by integrating all aspects including socio-economy, land use,
infrastructure, etc.
Establish strategies for • Develop concrete physical and institutional concepts of TOD (transit-oriented
mass transit-oriented development) in Vietnam’s context
urban development • Establish a preparatory unit to promote TOD in Hanoi
• Implement pilot projects to concretize development mechanism
Develop competitive • Develop concrete concept and strategies for subcenter development
subcenters • Identify projects and establish specific project management units for project
implementation
• Implement pilot projects to concretize development mechanism
Upgrade/Redevelop • Diagnose existing conditions, problems and formulate improvement plans and
existing urban areas strategies
• Establish concrete mechanisms to upgrade existing urban areas including
Ancient Quarter, French Quarter, outside-of-dyke areas, public housing areas,
urban villages, etc.
• Implement pilot projects to concretize development mechanism
Source: HAIDEP Study Team.

ECONOMIC AND SOCIAL DEVELOPMENT

14. Further economic growth of the city is critical for its sustainable development and that of the
region. Hanoi’s economic development needs to be addressed at both the regional and city levels.
The locations and the promotion of FDI-led manufacturing industries which have contributed to the
growth of Vietnam can be handled at the regional level in coordination with Hanoi and concerned
provinces in accordance with regional development strategies. On the other hand, at the city level,
policy orientations should support an industrial structure that favors knowledge-based industries
and services. Polluting industries must be relocated to properly organized industrial estates.
15. The city’s industrial development must likewise address the condition of small and medium
enterprises as well as the informal sector, since they are significant sources of employment.
Adequate land-use policy for the city center, for areas along transportation corridors, and within
communities will attract these types of industries.

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16. Proposed strategies and actions are summarized in Table ES.4, while the main
socio-economic indicators of Hanoi in 2005 and by 2020 are in Table ES.5.
Table ES.4 Proposed Socio-economic Development Strategies and Actions
Strategy Action
Establish • Establish interministerial coordination mechanism to promote new urban economics
competitive involving private sector and higher education
economic base • Develop new types of urban industries which combine culture, technology, and human
resources
• Provide strategic supporting infrastructure to enhance competitiveness of existing
industries
Update industrial • Relocate polluting industries
development • Establish concrete strategies for developing industries and industrial estates/zones in
strategies close coordination with other provinces in the region
• Provide necessary supporting environment for industrial estates including housing,
accessibility, and amenities for workers
Improve • Improve Hanoi’s competitiveness in Vietnam and Asia on providing conducive
investment environment for FDIs
environment • Further improve investment information system for Hanoi and region
further • Establish coordinated one-stop center for Hanoi and region
Establish concrete • Define and identify the urban poor in Hanoi
support system for • Establish adequate policy on providing support for the poor in a sustainable manner
low-income groups • Establish adequate monitoring mechanism
and urban poor
Strengthen • Define and identify issues at the community level
capabilities of • Establish adequate policy on providing needed support in sustainable manner.
communities • Establish adequate monitoring mechanism
Source: HAIDEP Study Team.

Table ES.5 Major Socio-economic Indicators of Hanoi, 2005 and 2020

Indicator 2005 2020
Total (000) 3,183 4,500
Population
Urban, 000 (%) 1,990 (62.5) 3,950 (87.8
GRDP growth rate (%) 11.2 11.0
Per Capita GRDP (US$) 1,3501) 6,000
Economy
Sector Share (%) (Pri/Sec/Ter) 1.7 / 40.8 / 57.4 1.0 / 45.0 / 54.0
FDI (US$ mil.) 9,241 n.a.
Total (000) 1,517 2,000
Sector Share (%)(Pri/Sec/Ter) 22.3 / 21.9 / 55.8 7 / 35 / 58
Employment
Government Workers (000) 544 n.a.
Unemployment (000)2) 47.7 n.a.
No. of Primary 203 289
Students Secondary I/II 181 / 109 221 / 192
Social (000) Tertiary 380 517
Environment Enrolment (%) (Pri/Sec I/Sec II) 98 / 97 / 63 100/ 100 / 100
Poverty Index 16.083) negligible
HDI 0.7984) n.a.
Vehicle Motorcycle (% of HHs) 83.95) 72
Ownership Car (% of HHs) 1.65) 20
Visitors to Domestic Arrivals (000) 3,600 19,000
Hanoi Foreign Arrivals (000) 1,050 4,000
Source: HAIDEP Study Team.
1) Hanoi City 5-year Socio-economic Plan.
2) Number of registered job applicants.
3) Viet Nam Living Standards Survey 1997-1998. The index denotes the share (%) of people
living below the poverty line to the total population of a province.
4) Index as of 1999. Hanoi is ranked second among all provinces in Vietnam.
5) HAIDEP HIS, 2005.

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URBAN TRANSPORTATION
17. Transportation infrastructure and services are the foundation of urban development,
affecting economic development, land use, living conditions, environment, provision of utilities and
services, and property value. Transportation development in Hanoi must also be undertaken at
both the regional and the city levels.
18. Regional Transportation Development Strategies: Regional transportation must be
developed in a way that it enhances the region’s competitive edge for attracting more investments,
strengthens interprovincial integration, and facilitates balanced development. Strategic corridor
development is proposed, covering the: (i) completion of Ring Road No. 4 (RR4) and ring rail, (ii)
extension of the UMRT toward satellite cities and urban areas, (iii) development of a high-quality
expressway linking Hanoi and Haiphong/Quang Ninh, and (iv) completion of the regional ring road.
19. Urban Transportation: Urban transportation planning and development is one of the main
components of the HAIDEP Study. While the traffic situation is getting worse with each passing day,
effective measures, such as accelerated road development, improved traffic management, and
enhanced public awareness, are not enough to keep up with the rapidly increasing demand.
Without immediate and effective implementation of needed measures in a comprehensive manner,
the situation in the future may become out of control, as see on other large urban areas in Asia.
The proposed urban transportation development orientation is shown in Table ES.6, while the key
aspects are briefly described as follows:
(a) Urban Road Network: The proposed road network consists of 8 radial and 4 ring roads. With
this plan, the road network in Hanoi City will increase from 624km to 1.143km in length and
from 5.9km2 to 21.8 km2 in area. Since road construction in Hanoi has become increasingly
complex due to difficulties in obtaining land and resettling, it is necessary to develop
alternative schemes to address road development issues more comprehensively, as can be
done through the land readjustment scheme adopted by many successful cities in Japan.
(b) Bridges across the Red River: Providing bridges across the Red River will greatly affect the
urban development pattern and traffic circulation in the city. In order to meet future traffic
demand, a total of 8 bridges, including the existing Chuong Duong, Long Bien, and Thang
Long bridges, new bridges such as the recently completed Thanh Tri, Vinh Thuy, Nhat Than,
and two bridges along the ring road/rail routes, are necessary.
(c) Ring Road No. 4: RR4 is important for the future of Hanoi both in terms of managing urban
growth and in establishing an effective interface between urban and regional road functions.
(d) UMRT Development: In order to maximize the benefits of UMRT development and minimize
the financial burden for the government, the following measures must be considered: (i)
integration with urban development, (ii) development as a network, and (iii) phased
development. The proposed 193km-long UMRT network is composed of four lines, comprising
urban rail and BRT. When the four UMRT lines are completed, the UMRT system can serve
2.6 million passengers a day with an average trip length of 7.8km per passenger.
(e) Public Transportation Development: While the UMRT is expected to form the city’s
transportation backbone, buses will remain as the most important road-based public
transportation mode, providing services in areas not covered by the UMRT or providing feeder
services to it.
(f) Traffic Management: Traffic management and safety are serious weaknesses which usually
limit the efficient use of available facilities and endanger life and property. The proposed
approach to improve traffic management include the following: (i) implementing traffic
management on 16 main corridors, (ii) strengthening basic traffic engineering measures, and

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(iii) implementing TDM measures including improved pricing for parking, compulsory provision
of garages, introduction of area licensing scheme, etc. Traffic safety in Hanoi is largely blamed
on the undisciplined driving behavior of motorists and the lax enforcement of traffic rules,
implying that many of the accidents can be immediately reduced when awareness of the road
users and enforcers is improved.
(g) Sidewalk Improvement: Sidewalks in Hanoi are very important not only for pedestrian traffic
but also as space for various activities including vending, resting, parking, etc. Sidewalk
improvement and management can be done with the active involvement of communities.
(h) Investment Costs: Excluding committed projects, the total investment cost in the
transportation sector will be about US$ 12.7 billion, of which roads share US$ 6.8 billion (54%),
public transportation at US$ 5.4 billion (43%), and others at US$ 0.4 billion (3%). Regional
transportation projects will cost US$ 10.5 billion comprising expressways (US$ 3.1 billion),
roads (US$ 1.4 billion), railway (US$ 2.3 billion), airport (US$ 3.3 billion), and IWT (US$ 0.2
billion). If the proposed master plan projects are implemented, travel speeds will improve and
areas that can be reached within 30 and 60 minutes will expand.
Figure ES.3 Proposed HAIDEP Road Network

Source: HAIDEP Study Team.

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Table ES.6 Proposed Transportation Development Strategies and Actions

Strategy Action
Establish coordinated • Establish effective modal policy to ensure sustainable urban transportation including
urban transportation management of private transportation
policy • Establish clear strategy for effective interface of urban and regional transportation
network and services
• Establish rational and transparent framework for prioritization transportation policy
and projects
• Establish workable mechanism for effective coordination among relevant sectors
and organizations
• Establish sustainable funding mechanism to promote private sector participation
Enhance public • Expand transportation education, campaigns and public information to appeal to
awareness and mind and heart of the people
understanding of • Implement various experimental projects for policy test with the involvement of
urban transportation communities and transportation users
issues • Strengthen research and studies on urban transportation issues
Promote realization of • Develop mass transit and public transportation system in full integration with urban
mass transit-oriented growth strategy, land use and urban development
urban development • Integrate transportation master plan with overall urban /regional master plan as
one coordinated statutory plan
• Establish effective institutional framework and practical development methods for
transit-oriented development (TOD)
Expand attractive • Develop UMRT network as the city’s public transportation backbone
public transportation • Expand and strengthen bus system and services in a coordinated manner with
system UMRT to provide public transportation services in the entire city
• Develop supplementary public transportation services including taxi, xe om, cyclo,
water transportation, school buses, company buses, etc.
Strengthen effective • Strengthen traffic control and management to regulate traffic flow for enhanced
management of traffic safety, comfort, and efficiency
and demand • Enhance enforcement capacity in parallel with social awareness
• Establish workable parking policy
• Introduce phased TDM measures
• Expand introduction of information technology (IT) for effective transportation
management
Focus on need for • Establish shared concept of comprehensive development of transportation space
comprehensive and environment
development of • Strengthen comprehensive management and improvement of transportation
transportation space corridors
and environment • Establish comprehensive management of traffic and transportation related issues in
CBD
• Provide adequate transportation environment for pedestrians bicycle users
• Provide adequate transportation services and environment at district and community
levels both in urban and rural areas
Strengthen capacity • Strengthen planning and project preparation capacities including database, planning
for effective tools and human resources
transportation sector • Develop alternative methods for smooth acquisition of lands for infrastructure
administration and development
management • Expand participation of private sector and communities
Source: HAIDEP Study Team.

URBAN WATER AND SANITATION

20. The improvement of water supply and the environment is critical in guaranteeing the
people’s safety and health, support various urban activities, and enhance the city’s image. While
many parts of the city are not covered by adequate services, the development of necessary
infrastructure and the provision of services must be provided in accordance with urban growth
strategies and population distribution. While the proposed strategies and actions are shown in
Table ES.7, the main points are briefly explained in the next pages.

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(a) Urban Water Supply: The water supply plan was formulated based on Decision No. 50
issued in 2000, the Hanoi Metropolitan Area Development Plan by MOC (July 2005), and the
National Strategy for Environment Protection until 2010 and Vision toward 2020 by MONRE
(July 2004). It was assumed that urban water supply services would cover 100% of the future
urban areas (590km2) including 231km2 in the southwest, 123km2 in the southeast, and
236km2 in the north of the city. Rural areas would also be provided with rural water supply
services. The current total demand of 555,000 m3/day would increase to 1.3 million m3/day by
2020, 70% of which would come from new urban areas. Domestic use would share 62%, while
nondomestic and industrial use would each account for 19%. In order to meet the future
demand and to avoid groundwater pollution and ground subsidence, the policy is to shift water
sources from groundwater to surface water. The shift to surface water must be done in
conformity with the other planned water supply projects. The capacity of water treatment
plants must also be expanded. Five such projects which would have a total capacity of
750,000 m3/day when completed are proposed. The proposed projects will cost about
US$ 533 million to construct and more than US$ 13 million a year to operate and maintain.
With the completion of the five water treatment plants, the future water demand would be met
effectively. In parallel to the physical improvements, the operation and management of these
plants must be improved by: (i) reducing water leakage and loss through the installation of new
pipes, adoption of modern technologies, and use of reliable materials; (ii) establishing a water
quality monitoring system in the Red River and the Duong River to take prompt measures in
case of water pollution; and (iii) further improving the operation and management system.
(b) Drainage System: All future urban areas totaling about 400km2 will be provided with a
drainage system to protect them from inundations of up to 310 mm/2 days of rainfall or
equivalent to a 10-year return period intensity. The drainage plan has set a 90% to 100%
coverage of Hanoi’s urban centers by 2020. Providing Hanoi with an adequate drainage
system would require large regulating reservoirs with a total area of 1,020ha and pumping
stations with capacities of 292 m3/sec, due to the city’s flat topography and the rivers’ high
water levels, requiring huge investments. While investments for ongoing and committed
projects up to 2010 total US$ 170 million with an additional US$ 100 million for land acquisition,
the proposed projects will cost about US$ 2.2 billion.
(c) Sewerage System: As the development of an adequate sewerage system requires huge
investments and a lengthy implementation time, setting priorities and clear criteria for
investments is important. Urban areas with an expected population of 100 persons/ha or more
will be given initial priority, but final prioritization will be based on factors such as water supply
amount, affordability of user charges, environmental standards to be met, groundwater use,
etc. The proposed investment plan covers 2,848ha with wastewater treatment capacities of
893,600m3 /day, requiring about US$ 1.6 billion.
(d) Lake Improvement: There were 900 lakes and ponds in Hanoi with areas larger than a
hectare. But this number and their areas have decreased due to various development projects
and encroachments which have also caused the deterioration of hygienic conditions around
the lakes, lake water quality, and surrounding landscape. Lake and pond management must
thus involve the following: (i) protect lakes from illegal construction, encroachments, solid
waste dumping, etc.; (ii) develop lakefronts with promenades/walkways, green spaces, and
other amenities; (iii) increase the lakes’ storm water retention capacities by increasing their
effective depths; and (iv) improve lake water quality. A lake improvement strategy was worked
out for main areas including the To Lich and the Nhue river basins and for Long Bien, Gia Lam,
and Dong Anh districts together with the overall drainage system development plan. Needed

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measures to improve lake management include: (i) control water levels through pumps and
gates in the lakes to regulate floods; (ii) maintain lake structures such as revetments, pumps,
and gates; (iii) monitor and improve water quality; (iv) clean lake water surfaces and
surrounding areas; (v) manage commercial, cultural, and tourism activities in/around the lakes;
and (vi) strengthen lake management organization and institutional arrangements.
(e) Flood Protection: Floodwaters from the Red River are a constant threat to the city. While the
average highest water level during the last century reached around 11m, the height of urban
areas is about 9m in Hoan Kiem. The 1971 flood reached 14m high and caused serious
damage to the city. From 1998 to 2002, dyke strengthening projects were carried out on the
right bank of the Red River with ADB financing. It aimed to prevent flooding in Hanoi through
structural/physical and nonstructural/nonphysical measures. However, about 160,000
people residing in areas outside the dyke remain vulnerable to it. Meanwhile, the impact of
development in these areas on flood flow in the Red River will be most critical at the narrowest
section of the Red River between the Long Bien and Chuong Duong bridges. The proposed
measures to comprehensively address the issues from the urban development and
management viewpoints are to: (i) strengthen the dykes around Hanoi, secure remaining
heights, and strengthen deteriorated embankments; (ii) develop an early warning and flood
fighting/evacuation system to ensure a timely and periodic warning system; and (iii) conduct a
study on the redevelopment of the Day River flood diversion channel to divert flood upstream
and help protect Hanoi.
Table ES.7 Proposed Urban Water and Sanitation Development Strategies and Actions

Strategy Action
Enhance public • Establish “Water Forum” with participation of extensive stakeholders to discuss
awareness and and disseminate water, water environment and related issues
understanding of water, • Conduct regular media campaign on water and sanitation
sanitation and related
environmental issues
Ensure stable supply of • Address water pollution issues immediately
safe water for all • Expand water supply coverage
• Shift gradually from groundwater to surface water as raw water source
• Improve operational efficiency of water supply
Promote improvement • Improve drainage conditions
of sanitary conditions in • Develop sewerage systems
urban areas • Improve solid waste management
• Establish workable mechanism for consolidation of graveyards
Promote improvement • Monitor water quality of lakes, ponds, and rivers in Hanoi
of water quality of lakes, • Develop water quality improvement measures
ponds, and rivers • Establish common guidelines on waterfront use and management in coordination
with urban land use and communities
Protect urban areas • Ensure urban areas shall be protected from flood
from flood and promote • Establish effective early warning system
disaster preparedness • Redevelop outside-of-dyke area
Source: HAIDEP Study Team.

(f) Solid Waste Management: There are two master plans on solid waste management, the
1998 Master Plan and the Environment Master Plan up to 2020 prepared by JICA. Estimates
on the total amount of waste generated by 2020 are 1.42 million tons/year in the former plan
and 1.17 million tons/year in the latter plan based on that year’s population forecast of about
3.5 million. This estimate will increase if it is based on a population of 4.5 million, as projected
in the HAIDEP Master Plan. Therefore, one of the most significant problems in this field is that
the capacity for solid waste disposal would not be enough to handle generated waste in the

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near future. Following the National Environmental Strategy, the waste reduction rate (the rate
of the amount of reused and recycled waste against the amount of total collected waste)
should reach more than 30% by 2020 through the promotion of the three Rs (reduce, reuse,
recycle). The possible facilities that may be needed to implement the measures on solid waste
management include transfer stations, recycling centers, composting plants, incinerators, or
other intermediate treatment plants.
(g) Cemetery: Securing land for new cemeteries around Hanoi, especially those near residential
areas, has become very difficult due to objections from nearby residents. Common
high-density, large-scale cemeteries are also proposed and proper locations should be found
within reasonable distances from Hanoi, preferably in green belts.

HOUSING AND LIVING CONDITIONS

21. Housing: Providing affordable housing is a critical policy agenda which must be seriously
attended to. A survey conducted in the study indicated that most people cannot afford to rent or
purchase available housing in the market. For the low-income group, the situation is worse.
Rebuilding of old public housing and upgrading of existing housing stock are also urgent concerns.
The required housing stocks will far exceed those that have been developed in the last few years.
A total of about 500,000 units with 46 to 54 million m2 of floor area need to be supplied by 2020, or
an annual average of about 33,000 units with 3.1 to 3.6 million m2 of floor area. Demand is
composed of new building and rebuilding of old and small housing. Demand due to resettlement
and in-migrating students and workers is also on the rise. Therefore, an alternative development
mechanism is required, where various factors must be incorporated such as supply of lands,
design standards, access to housing loans, incentives and conditions for developers, government
subsidy, etc. Government’s role in the supply of housing should be to: (i) formulate a
comprehensive and phased housing development program; (ii) establish a sustainable
mechanism; (iii) improve current institutional mechanisms for the private sector; (iv) expand
financial access for affordable housing provision; and (v) prepare realistic design standards for
affordable housing.
22. Social housing provision should be promoted with the following actions: (i) development of
low-cost housing, (ii) formulation of public housing cooperation, (iii) development of rental housing
market, (iv) criteria for distribution of social housing. Institutional arrangements are necessary to
further promote housing development in Hanoi.
23. Living Conditions: Results of the subjective assessment of the living conditions in Hanoi
City showed that the people in urban areas are relatively satisfied with their living conditions, albeit
in varying degrees per locality. However, results of the objective indicators of living conditions in
Hanoi are relatively low compared to benchmarks set in counterpart cities in Asia. The
improvement of living conditions must be done comprehensively, guaranteeing that key elements,
such as safety, convenience, healthiness, and amenity, are improved in a balanced manner. It
also requires both city- and local-level action.
24. Proposed Development Direction: Improvement of the housing and living conditions
subsector requires a comprehensive approach including policy setting, institution building,
technical improvement, financing support mechanism, and supply of lands (see Table ES.8).

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Table ES.8 Proposed Housing and Living Conditions Development Strategies and Actions
Strategy Action
Establish coordinated housing • Identify existing and future housing market together with housing supply
policy mechanism to define issues and agenda
• Establish clear policy on role-sharing between public and private sectors in
housing supply
• Establish adequate institutions to promote private sector participation in
the housing market
Establish concrete • Identify types of affordable housing for different categories of customers
mechanism to ensure • Develop adequate design standards of affordable housing to improve living
affordable housing for conditions
low-income groups • Establish adequate mechanism to supply affordable housing by both public
and private sectors
Provide adequate supportive • Formulate basic sustainable redevelopment methods for old public housing
measures to rebuild old public areas on equitable sharing of costs and benefits between residents and
housing government
• Redevelop old public housing areas to benefit residents and serve public
interest
• Introduce PFI (private financing initiatives) schemes
Establish improved • Improve existing registration system
mechanism for smooth supply • Introduce land readjustment mechanism to define land issues and develop
of lands for housing housing areas
Establish practical living envt. • Develop comprehensive living conditions assessment methods (ie urban
improvement mechanism karte)
based on comprehensive • Establish practical mechanism to improve the living environment
assessment of living conditions • Establish participatory mechanism to improve living conditions at community
at community level level
Source: HAIDEP Study Team.

ENVIRONMENT
25. The environment is the sole foundation for the city’s sustainable development, especially
since Hanoi is endowed with diverse and distinct natural assets as well as a rich cultural heritage
that spans over a thousand years. The resulting fusion of natural, cultural, and social environment,
form the core of Hanoi and must therefore be preserved and enhanced for future generations. The
impacts of urbanization and industrialization on the environment need proper measures at the
regional, city, and local levels. Key areas that must be considered in environmental management
include the following: (i) establishment of environmental zones and green belts; (ii) mapping of
hazard areas and land development suitability; (iii) environmental and social considerations; (iv)
development of a green network in Hanoi in integration with regional green belts (see Table ES.9).
Table ES.9 Proposed Environmental Management Strategies and Actions
Strategy Action
Establish • Develop through effective interagency coordination comprehensive environmental
comprehensive mapping and information systems using GIS for easy access by all stakeholders
environmental • Establish a practical environmental impact assessment system by selecting a set of
planning and indicators agreed upon by all stakeholders
management system • Strengthen interagency coordination among environmental organizations on
indicators and environmental issues
• Establish an effective environmental monitoring system
Establish green belts • Identify and designate green belts based on a comprehensive study
in coordination with • Establish a green belt management council involving Hanoi and adjoining provinces
adjoining provinces • Formulate an effective green belt development and management system
Develop a park and • Establish a network of parks, water bodies, streets lined with trees, etc. to cover the
green space network entire city including districts and communes
• Provide parks at community level
• Integrate parks and green space with overall land use, infrastructure, cultural sites,
and socio-economic activities
Source: HAIDEP Study Team.

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26. The development of infrastructures, especially roads, in built-up urban areas involves
involuntary resettlement, which often requires lengthy durations and large compensation costs that
often set back project completion, create more difficulties for affected families, and delay the
benefits that are expected from the projects. While there are resettlement options, these do not
meet the demands of the affected families. And while the efforts of the government to improve the
compensation policy have been commendable, there are still limitations pertaining to eligibility,
entitlement, and restoration of livelihoods.

URBAN DESIGN AND LANDSCAPE

27. The landscape of Hanoi has an extraordinary charm that appeals to the people and visitors
alike. The attractiveness of the landscape extends widely, from the unique physical setting and
lifestyles in the Ancient Quarter and the French Quarter, the avenues with spacious sidewalks and
lined with abundant trees, the historical buildings, the widely distributed lakes and ponds, to the
immense vistas created by the Red River and the rustic suburbs dotted with traditional villages.
However, many of these assets have been spoiled by various developments and people’s
activities. A common understanding of the desired landscape for Hanoi is also lacking.
28. Results of an analysis of public opinion on Hanoi’s landscape confirmed that: (i) Hanoi’s
landscape is an important aspect in urban planning and development for both experts and
residents, and (ii) current institutional arrangements and capacities to manage landscape issues
are insufficient. The landscape in Hanoi has ample opportunities for improvement, something
which is very much critical to establishing an identifiable image. For this, the landscape must be
dealt with not only from the aesthetic viewpoint but more specifically in the context of urban design
which integrates the physical, socio-economic, and aesthetic aspects and translates them into
feasible actions.
29. In order to improve the urban design and landscape aspect, there is a need to implement
extensive measures as summarized in Table ES.10.
Table ES.10 Proposed Urban Design and Landscape Development Strategies and Actions

Strategy Action
Establish • Develop comprehensive landscape policy and guidelines
comprehensive • Organize “Urban Design and Landscape Forum”
landscape policy and • Establish a mechanism for effective management including adequate rules and
workable mechanism regulations and enforcement organizations
to ensure conservation
• Enhance people’s awareness and understanding of the desired landscape
and enhancement of
desired landscape
Promote improvement • Promote desired landscapes for different areas such as Ancient Quarter, French
of landscape for urban Quarter, Thang Long, Co Loa, new urban areas, rural areas, etc.
space of strategic • Promote desired landscape for transportation corridors and gateways
importance • Promote desired landscape for waterfront and green network
Establish concrete • Complete inventory of tangible assets including sites and facilities with cultural
mechanism to ensure value
cultural preservation • Establish adequate mechanism to preserve and restore tangible assets in harmony
with landscape in surrounding buffer areas
• Establish adequate mechanism to preserve prime rural landscape
Develop new • Develop underground space in harmony with the urban design at ground level to
opportunities to create additional space for public services and businesses
improve urban design • Develop new landmarks with distinctive designs including high-rise buildings,
and landscape towers, bridges, other facilities
• Establish adequate mechanism to preserve and further expand network of street
trees and greeneries
Source: HAIDEP Study Team.

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SPECIAL AREAS
30. While the general plan provides the vision and the basic urban development orientations for
the future, translating them to a tangible form which the people and visitors can easily understand
and appreciate is another matter. To explain the development orientation, key areas were selected
(see Figure ES.4) and their development concepts, including physical plans, development
strategies, and necessary institutional arrangements, were proposed. While the proposed
development direction is summarized in Table ES.11, the main points are explained as follows:
(a) Red River Space: The Red River used to be the backbone of Hanoi, integrating the important
areas and resources in the city. However, in the process of development and with the
occurrence of disasters, the Red River somehow no longer plays a key role in the
socio-economic life of the city and is slowly losing its cultural and environmental importance.
The main goals are thus: (i) to revive the Red River as the cultural and environmental
backbone of the city; (ii) to promote socio-economic development by reorganizing the use of
its ample space; and (iii) to establish adequate institutional and technical frameworks. The
river’s development must be for the long term, even beyond the term of the master plan. A
policy or shared idea must be in place as to what the Red River will be in the future. The
overall development direction and management of the entire river space must be as follows: (i)
environmental and cultural backbone, (ii) mobility and transportation axis, (iii) reintegration of
outside-of-dyke areas, (iv) planning framework for outside-of-dyke areas, and (v) landscape
management and urban design. Recommendations for the development of areas outside the
dyke are: (i) amend the dyke ordinance, (ii) build consensus on the construction of the second
dyke; (iii) make a detailed land-use plan, and (iv) prepare a relocation plan.
(b) Thang Long-Co Loa Zone: This zone is an integrated space comprising Co Loa, Ho Tay, and
their surrounding areas, together with the Ancient Quarter which form the heart of Hanoi being
located in the middle of the Red River space. The planning considerations to take account of
are the following: (i) ensure an open vista along the Thang Long-Co Loa axis by clearing
existing facilities and restricting future developments; (ii) construct transportation facilities
connecting Thang Long and Co Loa; (iii) restore heritage sites and improve the Co Loa Citadel
and its adjacent areas; (iv) redevelop the areas outside the dyke of the Red River; and (v)
develop the Dong Hoi and Xuan Canh areas to match the development vision of the Thang
Long-Co Loa zone.
(c) Ancient Quarter: The Ancient Quarter, also known as the 36 streets, risks losing its traditional
cultural value because of the internal and external impacts of rapid urban development. And
while economic activities are promoted in streetfronts, livelihoods and community relations are
rooted and strengthened inside residential blocks. To preserve and revitalize these values─be
they tangible or intangible─improve its living conditions, strengthen street identity, and boost
its socio-economy in a comprehensive manner, there is a need for a common vision and
sustainable development solutions. Specifically, there is a need for an integration of: (i) block
redevelopment planning, (ii) street development planning, and (iii) establishment of a business
model, with the community’s participation. To establish a sustainable preservation and
development mechanism for the Ancient Quarter, it is significant to establish a proper business
model wherein local resources and citizens are key to the implementation of actions and
projects. While the residents and organizations, including businesses, in the Ancient Quarter
are eager to preserve and develop the area, there is also a lack of an effective institutional
setup and adequate capacities. Hence the specific proposals for the Ancient Quarter are on
institutional arrangement and capacity development.

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Figure ES.4 Location of Special Areas in Hanoi City

Co Loa and
Adjoining
Buffer Zones

Red River including

Outside-of-Dyke
Ho Tay
Waterfront

Ancient
Quarter

French
Quarter

Source: HAIDEP Study Team.

(d) Ho Tay Waterfront Area: The Ho Tay (West Lake) is expected to form one of the most
important cultural and environment backbones of the city which is based on the
water-greenery-culture concept. In the past, there were 16 ancient villages around the lake;
but now, they have almost disappeared, and with it the area’s charm and character. The Ho
Tay area in the future should provide the people with better access to the lake, showcase
revitalized traditional villages, and stronger commercial value particularly in areas linked to
public transportation.
(e) French Quarter: The French Quarter is located in the southern part of the city center and
bounded by Trang Thi and Trang Tien streets in the north, Dai Co Viet and Tran Khat Chan
streets in the south, the Vietnam railway line in the west, and Tran Quan Khai and Tran Khanh
Du streets (the dyke road) in the east. When the nation was known then as Tonkin during the
French colonial period from the end of the 19th to the early 20th century, the quarter's wide
boulevards and tree-canopied streets were developed. In addition to unique architectures,
various scales of parks and lakes have created a beautiful landscape and atmosphere. The
area’s tranquil ambience has attracted various interests such as politics, diplomacy, and
economic activities. The French Quarter has been preserved largely due to its relatively
sufficient infrastructure and unique charm. The future development of the French Quarter
should thus not be physically oriented alone, but should lean more toward the strengthening of
both its economic potentials and its natural as well as cultural assets.
31. The proposed orientation for the development of the special areas intends to: (i) realize the
concept of “water-greenery-culture” to enhance the charm and identity of Hanoi by regenerating
historic areas, (ii) promote opportunities for new urban economic and social development toward
the next millennium, and (iii) establish an effective mechanism for sustainable development with
the participation of city stakeholders.

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Table ES.11 Proposed Development Strategies and Actions for Special Areas

Strategy Action
Ensure sustainable • Prepare master plan for sustainable development of Ancient Quarter based on
development of Ancient HAIDEP exercise
Quarter • Strengthen management capacity of Ancient Quarter Management Board
• Establish feasible mechanism of Ancient Quarter development based on
public-private participation (PPP) and community involvement
Establish feasible • Prepare development strategy and guidelines for the French Quarter
mechanism for desired • Establish a French Quarter Development Council involving main stakeholders
development of the French to manage development in the area
Quarter • Implement model projects
Prepare plan and effective • Prepare master plan and development strategy and guidelines
mechanism for • Establish Thang Long - Co Loa Development Council involving main
development of Thang stakeholders
Long - Co Loa heritage • Implement model projects on a PPP scheme
zone
Establish effective • Prepare master plan and development strategy and guidelines
mechanism for • Establish a task force under HPC involving central government agencies to
redevelopment of manage the development process
outside-the-dyke areas • Implement model projects on PPP basis
Establish effective • Prepare master plan and development strategy and guidelines
mechanism for sustainable • Establish Ho Tay Environmental Zone Council to manage development
development of Ho Tay • Implement model projects on a PPP scheme
environmental zone
Source: HAIDEP Study Team.

PILOT PROJECTS
32. Objectives: Three pilot projects on different topics were conducted in separate areas to
study the respective development issues in more detail and to find out a workable mechanism to
improve the urban planning and development processes.
33. Preservation and Sustainable Development of the Ancient Quarter: Even as the
Ancient Quarter is on channel for application as a UNESCO World Heritage Site, it is under
enormous external and internal pressure as the country urbanizes and shifts to a market economy.
Whereas the value of the Ancient Quarter lies in its unique blend of cultural, social, and economic
activities, it is this same feature that poses a challenge in setting an effective policy framework for
its sustainable development. This pilot project was thus aimed at seeking a possible mechanism
for the sustainable development of the Ancient Quarter, wherein the cultural values are preserved
and enhanced, while socio-economic development is promoted in a way that they enhance the
core value of the area. It was implemented on a selected block on Hang Buom Street.
34. The pilot project was carried out with the full participation of the block residents and other
concerned stakeholders, from identifying the problems, the cultural values, and issues in the block
to formulating the plan and implementing it. An integrated solution of: (i) increasing the floor space,
(ii) improving the living environment, (iii) preserving and revitalizing traditional values, and (iv)
strengthening economic competitiveness was reached, and the lessons learned from the pilot
project are as follows:
(a) Participation of the residents and stakeholders is a must: The people’s willingness to
participate was high and their contribution to planning and outputs was significant.
(b) Opportunities for development balanced with conservation are large: The locational
advantages of the Ancient Quarter provide ample opportunities for a balanced development
such that socio-economic and socio-cultural sustainability can be promoted together.

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(c) Need for improved institutional framework for public-private partnership: For the next steps, a
more active policy commitment and the provision of improved institutional arrangements are
necessary, wherein the role of the private sector must be clearly defined to guide or regulate
their investments.
35. Without a sustainable development mechanism tested through pilot projects, the Ancient
Quarter may give in to the relentless pressure of urban development, thereby forever losing its
cultural identity and with it a place in the World Heritage Site list, among other dire consequences.
36. District Planning: This pilot project aimed at delineating the role of the District Plan
vis-a-vis the General Plan and Detailed Plan.3 HAIDEP proposes that the General Plan should
indicate the overall orientation and structure of the entire city, while the District Plan should define
the orientation of the General Plan by introducing the concepts of growth boundaries, zoning, and
designating locations of key urban infrastructure such as main roads, utilities, parks, and other
public facilities.
37. This pilot project on district planning for Dong Anh District intended: (i) to delineate the roles
and functions of the District Plan to effectively address urban development issues, (ii) to identify an
alternative mechanism to implement the planned urban development, and (iii) to propose a district
planning system in conjunction with the General Plan proposed in the study. In this pilot project, a
set of maps for the District Plan was developed. The Land-use Plan as the statutory plan was
prepared to control land use through zoning. Spatial development control measures, such as floor
area ratio, building control ratio, height control, setback, etc. were also adopted. The proposed
District Plan is expected to be a practical tool for effective urban control and offers implementation
measures that comply with the socio-economic development plans and the General Plan, which
enable both HPC and the district governments to control and monitor urban development.
38. Improvement and Development of Outside-of-dyke Area: The outside-of-dyke area
along the Red River has an important place in Hanoi’s history, especially since the river used to be
the lifeline through which goods and people were transported to and from the city. Traditional
villages developed and various socio-economic and cultural activities thrived in the area. At
present, a total of 160,000 people reside in the area comprising those with and without legal
certificates. Even after the dyke was constructed to protect the inner city from frequent floodings
and due to the area’s prime location, the inflow of people and development activities continues.
This pilot project aimed at seeking a workable mechanism to manage this area in consideration of
the following: (i) protection of life and property of the residents, (ii) formulation of a mechanism to
regulate land use, and (iii) restoration of the waterfront space and landscape of the Red River.
39. For this pilot project, the outside-of-dyke area facing the existing urban areas was selected
for overall concept planning, while the three communes of Yen Phu, Phuc Xa, and Phuc Tan with a
total population of about 53,000 and an area of 310ha were selected for a more specific study on
living conditions and development activities.
40. The area’s proximity to the city center attracts a constant inflow of people and investments.
Although floods are a constant threat, clearing the area to make way for open spaces is neither
realistic nor advisable. Alternative plans were thus made: The outside-of-dyke area was classified
into three zones based on the degree of threat from flooding, that is: (i) a zone where no
development would be allowed, (ii) a zone where development would be controlled, and (iii) a zone

3
At present, statutory urban planning under the Construction Law follows a two-tier plan, i.e. the General Plan and
the Detailed Plan. However, the functional classification between these two plans is not very clear except in the
required scale of base maps to be used.

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where development would be encouraged. To support this zoning system, the improvement of the
existing dyke and the implementation of disaster prevention measures must be provided. In this
process, the resettlement of people can be undertaken within the area itself.
41. It is also important that the outside-of-dyke area be redeveloped to become more closely
integrated with the existing urban area in the same way the Ancient Quarter was once directly
connected to the Red River. The outside-of-dyke area must play a critical role in integrating the
Red River and the urban areas in Hanoi.

PREFEASIBILITY STUDIES
42. From the viewpoint of growth and development of urban areas in the city, two priority
projects were selected for prefeasibility study. The UMRT is expected to promote a public-
transportation-based urban development, while Ring Road No. 4 is expected to contribute to
effective urban growth management and interface of urban and interprovincial transportation.
43. Prefeasibility Study of the Urban Mass Rapid Transit Line 2: UMRT Line 2 was selected
for prefeasibility study to further analyze and verify if a mass transit line, in general, can contribute
to the promotion of the envisioned urban development of Hanoi and, more specifically, to check
the viability of UMRT Line 2 from the technical, economic, financial, social, and environmental
viewpoints. UMRT Line 2 will function as the north-south public transportation backbone of the city.
The project cost of UMRT 2 is estimated to be a grand total of US$ 2.8 billion, which includes civil
works, workshops/depot, railway systems, rolling stock, land, and others.
44. The impacts of UMRT Line 2 on the future development of Hanoi in terms of traffic, urban
economy, environment, and communities in the influence area will be quite significant. The
benefits from the reduction in traffic congestion and savings in travel costs alone resulted in an
EIRR of 22.5%. When additional benefits due to effective land use and integrated development are
considered, higher economic returns can be expected. Although resettlement of households may
become an issue, the number of potential project-affected households is minimal (less than 30
permanently affected structures) because Phase 1 will be underground, and integrated
development at and around stations are planned. While all of the impacts are largely positive, the
UMRT Line 2’s financial viability is less significant, with an FIRR of 4%, as is always the case in
UMRT development in the world. However, it is estimated that revenues can sufficiently cover the
operation and maintenance cost with a revenue-to-O&M cost ratio of 1.8 at the start of Phase 1,
which will gradually increase to 3.2 when the line is fully completed.
45. The proposed funding strategy calls for the UMRT 2 to be developed using public funds.
However, the operations and maintenance of the system should come from fare revenues and
ancillary revenue sources. On the off chance that revenues could not cover O&M cost, support
from the state (eg MOT) and/or HPC should be readied so as not to jeopardize the upkeep and
safe operation of the line. To develop and operate UMRT 2 as well as other UMRT lines, it is
recommended that HPC create the Mass Transit Authority which will plan, design, build, finance,
and initially run UMRT Line 2.
46. Prefeasibility Study of the Ring Road 4 West: The objective of this prefeasibility study
is to examine more closely the viability of Ring Road 4 (RR4) West, the western segment of the
fourth circumferential road in Hanoi as proposed in the HAIDEP Urban Transportation Master Plan.
Without RR4, the future urban development orientation in the HAIDEP General Plan would not be
realized. RR4 West is estimated to cost US$ 639 million, which includes construction, engineering,
contingency, and land. Land cost is US$ 128 million or 20% of the project cost. Additionally,
operating and maintaining RR4 West would require approximately US$ 30 million/year on average.

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Since RR4 West will be a tolled expressway, a flat charge of VND 25,000 per car will be imposed
by 2020, which is considered a revenue-maximizing level.
47. The economic benefits derived from RR4 West stems from the decongestion of roads within
urban Hanoi and the distribution of traffic. Based on transportation cost savings alone, RR4 West
was assessed to be very economically viable with an EIRR of 18.6%. If the benefits accruing from
efficient urban development are factored in, the impact of RR4 West is expected to become even
more significant. The possible environmental impacts of RR4 West are: (i) flooding due to
unabsorbed surface water flow; (ii) increased air pollutants from motor vehicle emission; (iii) and
split of communities. During construction, the impacts of earthworks, noise and vibration have also
been identified. The financial evaluation of RR4 West showed that the project is moderately viable
with a 9.5% FIRR against a widely used benchmark in Vietnam of 12%. The relatively low financial
indicator may be due to the high cost of the Red River Bridge. With proper cost-sharing between the
government and the investors, the project could be carried out under a PPP or PFI scheme.

INVESTMENT PLAN AND STRATEGIC ACTIONS

48. Investment Costs: After identifying the subsector projects, they were prioritized based on
the overall urban development policy, as well as their economic, financial, social, and
environmental viabilities, to optimize limited government funds. Projects and project packages
which comprise the HAIDEP-proposed Master Plan were categorized into urban and regional
transportation, urban water and sanitation, and living conditions (see Table ES.12).
Table ES.12 Total Investment Cost by Subsector
Project Cost
Sector Component
(US$ mil)
Urban Urban Roads 7,993
Transportation Traffic Management and Safety 444
Public Transportation (Bus + UMRT) 5,468
Subtotal 13,905
Regional Road 4,610
Transportation Rail 2,582
Airport 3,350
IWT Port 178
Subtotal 10,720
Urban Water Water Supply 581
and Sanitation Drainage 2,085
Sewerage 1,046
Flood Control 223
Lake Improvement 114
Subtotal 4,047
Living Housing 2,562
Conditions Park and Green Space 5,223
Subtotal 7,785
Total 36,457
Source: HAIDEP Study Team.

49. The investment cost of the HAIDEP Master Plan by subsector will be US$ 13,830 million for
urban transportation; US$ 10,720 million for regional transportation; US$ 4,047 million for urban
water and sanitation; and US$ 7,785 million for living conditions.
50. Budget Envelope: In order to provide a possible budget envelope for the city, three
scenarios were assumed using various percentages of the future GRDP (see Table ES.13). Based

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on the assumptions that the GRDP would grow at an average annual rate of 11% through 2020
and that 4.0%, 6.0%, and 8% of it would be allocated for urban sector development, the possible
budget envelope for the city between 2006 and 2020 would be US$ 6.6 billion, US$ 9.9 billion, and
US$ 13.1 billion, respectively.
Table ES.13 Possible Budget Envelope for the Urban Sector
GRPD1) Assumed Share of Urban Sector in GRDP (US$ mil.)
Year
(US$ billion) 4.0% 6.0% 8.0%
2005 4.3 173 260 346
2006 - 2010 4.7- 7.2 1,189 1,784 2,378
2011 - 2015 8.0 - 12.2 2,005 3,008 4,010
2016 - 2020 13.6 - 20.6 3,378 5,067 6,756
Total (2006-2020) - 6,572 9,859 13,144
Source: Estimated by the HAIDEP Study Team.
1) An average annual growth rate of 11% through 2020 was assumed.

51. Funding Opportunities: The estimated investment cost of the proposed infrastructure far
exceeds the budget envelope of the city. Funding will become more and more critical as urban
development pressure increases. While funding for urban sector projects can be obtained from
various sources including development allocations from the central government, local
governments, private capital, as well as overseas sources, including FDIs and ODA, there is a
need to: (i) expand its local revenue bases by applying user charges and service fees to recover
operational and maintenance costs of providing urban services; (ii) optimize existing funding
sources by applying innovative project implementation methods such as public-private
partnerships/private financing initiatives, leverage ODA funding, and earmark taxes for special
purposes; and (iii) develop long-term borrowing capacity including issuance of local government
bonds, project bonds, etc. and access capital markets.
52. It is also important to consider that these infrastructure costs can be financed by the private
sector partly or substantially, so that the cost to government can be reduced. For example, public-
private partnership arrangements or user charges can be adopted for public transportation, water
supply, drainage/sewerage, and even urban roads and traffic management. As substantial parts of
the project cost are due to increased cost of lands, it is also possible to integrate infrastructure
development with urban development to reduce the cost or to gain more development benefits.
Regional transportation costs must be shouldered by or shared with the central government.
53. Coordinated Investment: Infrastructure development must be undertaken in a way that it
will support and promote the desired growth pattern of urban areas. This is particularly important
for Hanoi where future expansion of urban areas is unavoidable and expected to be significant.
Main transportation infrastructures will play a key role in guiding the urban expansion, while
environmental projects and utility service projects must be implemented in coordination with the
development of urban areas. In this process, adequate institutional and support measures should
be provided to encourage an orderly private sector investment. The planned growth strategy is
illustrated in Figure ES.5.

IMPLEMENTATION AND MANAGEMENT

54. It is important for the city to have integrated plans with stakeholder consent in order to have
a sound basis for policy implementation and further coordination with various government and
private organizations. Plans need constant monitoring and updating. Moreover, it is also the view
of the Study Team that existing institutional arrangements need reform for more effective urban
development and management.

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Figure ES.5 Planned Growth Strategy for Urban Areas

Legend
Development Stage
1 2006-2010
3 2 2010-2015
3 2015-2020

1
2 1

2 3

1
1

Source: HAIDEP Study Team.

55. Overall Institutional Framework: The proposed overall institutional development

orientation for the HAIDEP Master Plan for Hanoi is aimed at promoting the government as an
enabler of urban development and services and not merely as a provider. For this, further
improvements on institutions and administrative framework are necessary including reform of the
statutory urban planning system, urban land management and development system, urban sector
funding, and capacity building for urban planning and development organizations. Moreover, as
Vietnam progresses toward a market economy, the government should pave the way for the
private sector to be more actively involved, while it sets policies, establishes sector priorities,
monitors private sector operations, promotes economic growth, and takes proactive measures to
improve the quality of urban life.
56. Public Involvement and Participatory Planning: As urban problems and issues become
complicated and the people’s concerns and awareness levels increase, their involvement in
planning and implementation becomes critical. Although it is not easy to practice the participatory
process in urban planning and development in big cities, like Hanoi, it has been proven in the
HAIDEP at both the master plan formulation and pilot project levels that the people are willing to
participate and can provide affirmative inputs. The participatory mechanism merely needs further
refinement and institutionalization for wider practice in future undertakings.
57. Planning Database: Planning for large urban areas require a set of reliable data and
information which must be regularly updated to enable a deeper understanding and accurate
interpretation of cross-cutting problems and issues. This is particularly important in formulating
comprehensive master plans. For this, HAIDEP conducted extensive surveys, including a
20,000-respondent Household Interview Survey (HIS) and a mapping survey, the results of which

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became the bases for producing a number of organized planning systems, as follows:
(a) GIS-based Map Information System: Various types and sizes of maps were prepared in the
study and organized into a software package which can be used for various planning activities.
(b) Urban Karte: Based on available data and those collected from the comprehensive HIS, living
conditions were systematically assessed at the commune level, providing common information
for the city authorities and the people.
(c) STRADA and Related Database: The system for traffic demand analysis (STRADA) software
developed by JICA was made available to the Vietnamese Counterpart Team together with the
requisite input data for further analysis of and planning for urban transportation projects for the
city.
58. Monitoring Indicators: A set of indicators measuring the performance of urban
development and management was worked out to monitor the implementation of the plan and the
level of infrastructure and services in the future.
59. Donor Coordination: Throughout the study process, donors were consulted and
necessary coordination was made regarding related projects and issues through the Urban Forum,
workshops, seminars, and individual meetings with concerned authorities.
60. Proposed Strategic Actions: To promote the envisioned urban development, Hanoi must
undertake a wide range of projects and actions in compliance with its strategies and the confirmed
priorities of stakeholders. Of the actions identified in HAIDEP, a number were considered more
critical in ensuring an effective urban development and management (see Table ES.14). Since
implementing these actions in a coordinated manner will not be easy, relevant sector departments
need to adopt concrete implementation strategies for their respective action plans.

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Table ES.14 HAIDEP-proposed Strategic Actions

Project Support
Project/Action Related
Component Scheme
Sector Projects
Schedule Infra Fund- /Actions
Code Title O&M Inst’n TA PPP
ST MT LT Services ing
A. PA1. Develop globally competitive strategic growth
◎ ◎ ◎ ◎ ◎ ◎
PC1, PC3
Regional corridors PD15
Development PA2. Cross-border transportation and regional
△ ○ ◎ △ ◎ PA3
(Regional Role of development
Hanoi) PA3. Establish coordinated regional investment PA3, PA4,
promotion program and one-stop center
△ ◎ ◎ △ ◎ △ PC1, PC3
PA4. Establish regional planning database and PA3, PA5,
management system
△ ◎ ○ ○ ◎ △ PA6, PJ1
PA5. Establish regional coordinating councils among PA3, PA4,
northern provinces
△ ○ △ △ △ ― PA6
PA6. Establish planning capacity building institutions PA3, PA4,
on urban/regional development
○ ◎ ○ ○ ◎ △ PA5
B. PB1. Establish development and growth strategy for
◎ ◎ ◎ ◎ ◎ ◎
PD6, PD9,
Urban key urban corridors PH3
Development PB2. Strategic development of new CBD in Dong
◎ ◎ ◎ ○ ◎ ◎ PB1, PD9
Growth Anh
Management PB3. Establish strategies, mechanism for PD5, PG3,
upgrading/rebuilding of existing urban areas
◎ ◎ ◎ △ ◎ ○ PH3, PI1-2
PB4. Establish strategies and mechanism for other
○ ○ ◎ ○ ◎ ○ PI 1-6
identified action areas
C. PC1. Establish updated urban economic devt.
― ― ○ ― ○ ○
PA1, PA3,
Economic and strategies and conducive investment envt. PJ6
Social PC2. Establish supporting mechanism for SMEs
― ― ○ △ ○ △ PC6
Development including informal sector
PC3. Establish competitive urban industrial PA1, PA3,
estates/zones
○ ○ △ ○ ○ ○ PC6
PC4. Strengthen capacity and technological
○ ◎ ○ ○ ◎ ○ PC1
linkages of higher educ. and urban industries
PC5. Strengthen tourism promotion, infrastructure
and services
○ ○ △ △ ○ ○
PC6. Develop effective mechanism to address PC2, PC3,
urban poverty and rural issues
○ ◎ ○ ○ ◎ ○ PF1
D. PD1. Establish coordinated mechanism for
Urban preparation, monitoring, and upgrading of ― ○ △ △ ○ ― PD2
Transportation urban transportation master plan
PD2. Develop and conduct capacity building
program on transportation planning and △ ○ △ △ ◎ △ PD1, PJ4
management
PD3. Strengthen traffic management and safety
○ ○ △ ○ ○ △ PD10, PD11
improvement capacity
PD4. Complete key sections of main roads in Hanoi ○ △ ― ○ △ ― PB3
PD5. Develop urban roads in integration with urban
○ ○ ◎ △ ◎ ○ PB3, PD12
development
PD6. Comprehensive improvement /development of
○ ○ ○ ○ ○ ○ PB1, PD11
sidewalk network and space
PD7. Expand and improve bus services ○ ◎ ○ ○ ○ ○ PD8
PD8. Establish clear policy and support measures
○ ○ ○ △ ○ ○ PD7
for paratransits
PB1, PB2,
PD9. Integrated development of UMRT network ◎ ◎ ◎ ◎ ◎ ○ PD14
PD10. Establish comprehensive parking policy and
◎ ◎ ◎ ○ ◎ ○ PD3
facility development
PD11. Comprehensive improvement of traffic
○ ◎ ○ ○ ◎ ○ PD3, PD6
environment in CBD
PD12. Comprehensive improvement of
transportation and urban environment in key ○ ○ ○ ○ ○ ○ PD5, PH4
corridors
PD13. Develop water transportation services in
○ ○ △ ○ ○ ○ PE4
Hanoi
PD14. Improve inter-city public transpo services
○ ○ △ ○ ○ ○ PD9
between Hanoi & satellite cities/urban areas
PD15. Improve public transportation services
○ ○ △ ○ ○ ○ PA1
between rural and urban areas
Source: HAIDEP Study Team.

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Project Support
Project/Action Related
Component Scheme
Sector Projects
Schedule Infra Fund- /Actions
Code Title O&M Inst’n TA PPP
ST MT LT Services ing
E. PE1. Develop surface water resources and related
Water and ◎ ○ △ ◎ ◎ ○ PG3
water distribution systems
Sanitation PE2. Develop drainage systems with multipurpose
◎ ○ ○ ◎ ◎ △ PE4
flood protection reservoir
PE3. Develop sewerage system for the urban core ◎ ○ ○ ◎ ◎ △ PG3
PE4. Develop water flow diversion system for PD13,PG2,
environmental maintenance of rivers & lakes
◎ ◎ ○ ◎ ◎ △ PG3, PI4
F. PF1. Establish policy and inst’l framework for
◎ ◎ ◎ ○ ◎ △ PC6
Housing and sustainable provision of affordable housing
Living Conditions PF2. Establish participatory monitoring system of
△ ○ ○ △ ◎ ○ PG4, PJ1
living conditions at community level
PF3. Improve technical standards for buildings
and their maintenance
△ ◎ ◎ △ ◎ △
PF4. Improve adequate mechanism and promote
△ ◎ ◎ △ ◎ △ PJ3
lands and housing supply
PF5. Establish effective mechanism to promote
△ ◎ ◎ △ ◎ △ PB3
redevelopment of old public housing areas
G. PG1. Develop comprehensive environmental
△ ○ ○ ○ ◎ △ PJ1, PJ4
Environment mapping and information system using GIS
PG2. Develop green belts around Hani ○ ◎ ◎ ◎ ○ △ PE4, PI3
PG3. Strengthen urban environmental monitoring PE1, PE3,
system
△ ◎ ◎ ○ ◎ △ PE4
PG4. Develop parks at community level ◎ ◎ ○ ◎ ○ △ PF2
H. PH1. Formulate comprehensive landscape PH4,
Urban Design guidelines and operate
△ ○ ◎ △ ◎ △ PI 1,2,3
and Landscape PH2. Implement landscape improvement model
project along main gateway corridors
○ ○ ○ ○ ○ △
PH3. Implement two model projects for PB1, PB3
underground space development
◎ ◎ ◎ ◎ ◎ ○ PI1, PI2
PH4. Improve tree planting in Hanoi △ ◎ △ △ ◎ ○ PD12, PH1
I. PB3, PH1,
PI1. Sustainable development of Ancient Quarter ◎ ◎ ◎ ◎ ◎ ◎
Special Areas PH3, PJ6
PI2. Formulate and operate development PB3, PH1
guidelines for French Quarter
△ ◎ ◎ △ ◎ ◎ PH3, PJ6
PI3. Improve Thang Long – Co Loa historical,
◎ ◎ ◎ ◎ ◎ ◎ PG2, PH1
cultural and environmental core zone
PI4. Establish effective mechanism for and PB3, PE4,
implement devt. of outside-of-dyke areas
◎ ◎ ◎ ◎ ◎ ◎ PJ6
PI5. Construct spiritual tower at An Duong ○ ○ △ ○ ○ ◎ PJ6
Establish sustainable development
PI6.
○ ○ ○ ○ ○ ◎ PE4, PJ6
mechanism for Ho Tay environmental zone
J. PJ1. Establish and open to the public urban PA4, PF2,
Implementation & planning information system
△ ◎ ◎ △ ◎ △ PG1
Management PJ2. Improve and operate urban planning
△ ◎ ◎ △ ◎ △ PJ5
institutions
PJ3. Develop and adopt alternative urban PB1-4
development methods
△ ◎ ◎ △ ◎ △ PF4
PJ4. Establish and operate urban facilities
○ ◎ ○ ○ ◎ ○ PD2, PG1
management information system
PJ5. Develop and implement urban planning
△ ◎ ○ ○ ◎ △ PJ2
human resources
PJ6. Expand and strengthen funding mechanism PC1,
for urban development
△ ◎ ◎ △ ◎ △ PI 1-6
Source: HAIDEP Study Team.

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CONCLUSION AND RECOMMENDATIONS

61. Conclusion: In order to realize the vision of the city under a rapidly progressing
urbanization, the currently practiced urban planning and development system in Vietnam, in
general, and in Hanoi, in particular, requires improvement in various aspects. The need for
establishing a workable mechanism to promote sustainable urban development is urgent. The
following were derived through the study process of updating the existing master plan:
(a) The improvement of the institutional framework must guide the large volume of active and
diverse development activities within the context of a progressive market economy, wherein
the contents and operation of the urban planning system must provide useful and effective
tools.
(b) The improvement of the existing urban planning system in Vietnam can be done based on the
experiences and outputs of the HAIDEP Study as well as the existing systems adopted in
various developed countries like Japan.
(c) The improved urban planning system must be associated with the introduction of a range of
project implementation methods and the development of organizations and human resources
to facilitate smooth urban development.
62. The General Plan proposed in the HAIDEP was prepared by updating the 1998 Master Plan
and expressing the shared vision and goals as a spatial development strategy. The plan is based
on the strategic “water-greenery-culture” concept and aims at realizing a
public-transportation-based urban development and land use while ensuring the city’s
competitiveness, livability, and environmental sustainability. The plan also proposes a structure
integrating Hanoi with its neighboring urban areas and provinces. The HAIDEP General Plan was
prepared in response to the statement made in (a) above and is different in its contents and
operational purposes.
63. The sustainable urban development of Hanoi can be achieved by implementing policies and
actions for different subsectors such as urban development, transportation, water and sanitation,
as well as living conditions in an integrated and coordinated manner. This makes it possible to
promote effective and efficient urban development, smooth acquisition of lands for public
infrastructure, as well as increased development benefits and municipal revenues. Opportunities
for private sector participation will also increase and the financial burden on governments may also
be lessened.
64. Recommendations: Hanoi being a large city must carry out various tasks simultaneously,
and these are listed in the form of strategic actions. It is also important to emphasize a number of
projects/actions of strategic importance to propel urban development. These are:
(a) Establishment and Practice of Comprehensive Urban Planning System: This aims to promote
capacity building on urban planning administration for institutions and individuals.
(b) Development of Mass Transit and Implementation of Integrated Development: In parallel to the
development of the UMRT Line 2 which was found feasible in the prefeasibility study, related
urban development should be undertaken in an integrated manner, while effective
development mechanisms, such as PPP schemes, should be established.
(c) Development of the Ancient Quarter and the Co Loa Area: These areas comprise the heart of
Hanoi where development pressure has been increasingly strong. If the current situation
continues without proper interventions, the area’s importance will be spoiled with the progress
of disorderly development.

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65. Role-sharing between the central government and the local government needs to be
reviewed from the viewpoint of promoting a more effective urban development. Specifically, a
coordination mechanism between the city plan and various plans of the ministries must be
streamlined to harmonize policies and projects. For example, urban transportation needs to be
properly segregated from and, at the same time, integrated with the regional transportation system.
Also, the conversion of agricultural lands for housing and urban development needs to be
accelerated in urban development promotion areas. As Hanoi is the country’s capital and plays a
critical role in the economic development of northern Vietnam and the country, the government’s
stable financial support is necessary.

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The Comprehensive Urban Development Programme in Hanoi Capital City (HAIDEP)
Final Report
SUMMARY

1 INTRODUCTION
1.1 Study Background: Since the mid-90s Vietnam has experienced strong economic
growth which is expected to continue. While Hanoi enjoys the fruits of economic prosperity, the
city also carries the brunt of the various ill effects it engenders such as rapid urbanization,
traffic congestion, deteriorating living conditions, degraded environment, and rising traffic
accidents. These are expected to worsen unless useful measures are taken. To address these
urban problems, master plans have been prepared for various sectors such as transportation,
water, drainage and sewerage, among others. Against this backdrop, the Japan International
Cooperation Agency (JICA) at the request of the Vietnamese government conducted together
with the Hanoi People’s Committee (HPC), a study to integrate these plans into a
comprehensive master plan on sustainable urban development for Hanoi City and the region.
The study is titled “The Comprehensive Urban Development Programme in Hanoi Capital City”
or the Hanoi Integrated Development and Environment Program (HAIDEP).
1.2 Study Objectives: The HAIDEP Study aimed to update the existing Urban Master
1
Plan by translating the urban development vision of Hanoi into a concrete, integrated master
plan and to establish a mechanism to implement this plan. Specifically, these are: (i) to
formulate the Comprehensive Urban Development Program for the Hanoi Metropolitan Area
up to 2020, (ii) formulate a short-term implementation plan, (iii) implement pilot projects and a
feasibility study on priority urban transportation projects, and (iv) strengthen planning and
management capacities of government bodies.
1.3 Study Area: Besides Hanoi City, the study area covered Hai Phong City and the
northern Red River delta provinces of Ha Tay, Vinh Phuc, Bac Ninh, Hai Duong, Hung Yen, Ha
Nam, Quang Ninh, Hoa Binh, Bac Giang, Thai Nguyen, Nam Dinh, Thai Binh, Ninh Binh, and
Phu Tho due to their significance to Hanoi’s and Vietnam’s overall development, as well as
their inclusion in existing plans and those currently being prepared. They include the following
(see Figure 1.1):
(i) Hanoi Metropolitan Area Development Plan which has been recently formulated by NIURP
of MOC and is being discussed prior to finalization.
(ii) Red River Delta Development Plan which was formulated by the Ministry of Planning and
Investment (MPI) and approved by the Prime Minister in Decision No. 677/TTg-1997.
(iii) Northern Focal Economic Zone Development Plan which was formulated by MPI and
approved by the Prime Minister in Decision No. 747/TTg-1997.
1.4 Study Organization: The HAIDEP commenced in December 2004 and was
completed in March 2007. For the smooth implementation of the study, a Steering Committee
was organized chaired by Mr. Do Hoang An, HPC Vice Chairman, and with members from key
government ministries, such as the Ministry of Construction (MOC), Ministry of Transport
(MOT), MPI, Ministry of Finance (MOF), and Ministry of Natural Resources and Environment
(MONRE), as well as Hanoi city government’s HAPI and HAUPA. Four technical working
groups were also organized for each of the urban subsectors of urban planning and
development, urban transportation, urban water and sanitation, as well as living conditions.
The PMU of HAPI acted as the counterpart to the HAIDEP Study Team. JICA also organized
an advisory team headed by Professor Takashi Ohnishi (see Appendix 1 for a complete list of
study members).

1 The existing Urban Master Plan was prepared and approved by the Prime Minister in 1998.

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Figure 1.1 HAIDEP Study Area: Hanoi Region

No. of Population
Area (km2)
Provinces (000)
HAIDEP Study
15 36,252 23,432
Area
Hanoi Metropolitan
8 13,376 12,015
Area (HMA) Plan
Red River Delta
9 12,629 15,529
Plan Area
Northern Focal
8 15,287 13,217
Economic Zone

Hanoi Metropolitan Area Hanoi City

30km
Soc Son

20km

Dong Anh

10km

Tay Ho
Tu Liem

Long Bien

Cau BD HK
Giay Gia Lam
DD
HBT
TX
Hoang Mai

Thanh Tri

Source: HAIDEP Study Team.

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2 PROFILE OF HANOI
2.1 Historical Development of Hanoi
Origin of Hanoi
2.1 Hanoi’s origin dates back to more than 2,000 years when the capital of the Au Lac
dynasty, which lasted for only 50 years, was in Co Loa. The ensuing thousand years witnessed
the rise and fall of various dynasties bringing with them changes in the location of the capital
as well. In 939, Co Loa became the capital again when Ngo Quyen took power. In 968, the
capital was moved to Hoa Lu by Dinh Bo Linh. In 1010 (year of Canh Tuat), Ly Thai To, the first
king of the Ly dynasty, moved the capital from Hoa Lu to Dai La citadel and named the new
capital Thang Long (Soaring Dragon). The Thang Long citadel developed on the right bank of
the Red River, whose commercial center is now called the Ancient Quarter. In the 15th century,
the Hanoi citadel (a new royal citadel) was constructed on the site of the former Thang Long
citadel and it reigned for over 460 years until it was pulled down in 1895.
2.2 In 1883, France’s colonization of Vietnam began and the French Indochina Union was
born. Hanoi became the capital of French Indochina during 1902 - 1953. During 1894 - 1897,
after completing the invasion of Vietnam, the French leveled the citadel for the planning and
construction of Hanoi’s streets as they are seen today. Up to the end of the 19th century,
France exercised a lake-centered planning and expanded the city area from the Hanoi citadel
and the Ancient Quarter toward the southeast. Throughout the centuries, Hanoi’s population
never exceeded 400,000.
Expansion and Densification of the Urban Area
2.3 In the late 1950s, the city developed only at the right bank of the Red River with Ba
Dinh, Hoan Kiem, and southern Ho Tay as the center. The land area was 70km2. In the 1960s,
the city grew toward the south of the Red River and further on to the northeast (Gia Lam -
Dong Anh). The city was divided into four urban and four rural districts with a total area of
about 200 km2.
2.4 Urbanization centering on the Ancient Quarter and the French Quarter during the
period of state planning and administration leading up to the Doi Moi was contained within
Ring Road No. 2 (RR2) parallel to the To Lich River, which effectively blocked the outward
sprawl of urbanization. The urban population then never went beyond a million. During this
period, uniform high-rise apartment blocks, just like those in Kim Lien, Giang Vo, Thanh Xuan,
and other residential blocks, were constructed within this boundary with the assistance of the
former Soviet Union and other allied countries.
2.5 Rapid urbanization in Hanoi started after Doi Moi and has progressed since the 1990s,
with in-migration from other provinces and cities and rural-to-urban transfer. Total population
increased at an average annual rate of 3.2% between 1990 and 1995 and 3.1% between 1995
and 2005. Developments took place in the fringes of built-up areas and along major roads.
The built-up area in the center has expanded roughly from 57km2 to 102km2 during this period.
2.6 Such rapid urbanization created Hanoi’s compact urban areas which have high
population densities. While the urban core comprise four districts occupies 35km2 only, it has a
population density of 316 persons/ha. In residential areas, the density increases to 399
persons/ha. In the urban fringe, population density is moderate at 62 persons/ha, except in
Thanh Xuan, which has 215 persons/ha and Cau Giay which has 142 persons/ha. However,
the density in residential areas sharply increases to 111 persons/ha in the urban fringe1.

1
Hanoi is classified into urban core (Ba Dinh, Hoan Kiem, Hai Ba Trung and Dong Da districts), urban fringe (Tay
Ho, Thanh Xuan, Cau Giay, Hoang Mai, and Long Bien districts), suburban areas (Tu Liem and Thanh Tri
districts), and rural areas (Soc Son, Dong Anh, and Gia Lam districts).

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Figure 2.1 Expansion of Urban Areas in 1983, 1996, and 2003

1925 1983

Approximate Built-up Area (km2)

1983 1996 2003
57 78 102

1996 2003

Notes: Worked out by the HAIDEP Study Team based on maps and images. Satellite imageries of Long Bien and Gia Lam are
available for 2003 only.
Figure 2.2 Population Growth in Hanoi City
3,500

3,000
Population (000)

2,500

2,000

Urban
1,500
Rural

1,000 Total

Rural (before
500 devis ion)
Total (before
devis ion)
-
76

78

80

82

84

86

88

90

92

94

96

98

00

02

04
19

19

19

19

19

19

19

19

19

19

19

19

20

20

20

Source: HAIDEP Study Team.

1) In 1990, the rural area of Hanoi was split into Hanoi, Ha Tay, and Vinh Phuc provinces. As a
2 2
result, the total area of Hanoi changed from 2,141km to 921km .

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2.2 Current Physical Setting

Topography, Geology, and Hydrology
2.7 The Red River, extending to Vietnam, China, and Laos, covers 310,500km2 in Vietnam.
It has three main tributaries, namely the Da River, the Thao River, and the Lo River. The river
system has affected Hanoi’s development for so long in its history as is evidenced from its name
“Ha” meaning “river” and “Noi” for “inside.” Because of the river’s significance, developments in
Hanoi must consider the opportunities and the threats posed by the Red River system.
Inundations often occur along urban rivers, especially during the flood season, as the water
levels of the Red River can rise up to 4m to 6m higher than the ground level, putting the city
under the threat of inundation. The annual fluctuation of the water level of the Red River is 2 -
12m (14.13m in 1971).
2.8 Hanoi, with 920km2 of administrative area, is situated in the middle of the Red River
delta on low-lying land with an elevation of 5m to 10m above the sea level. The terrain is
relatively flat with a 1 - 2% slope, except for the northern mountainous area in Soc Son District
which is 500m above the mean sea level.
2.9 The geology of Hanoi area is typical of an ancient delta. The top layer is clay, silty clay
or silt, the thickness of which varies from 5m to some tens of meters. A quaternary
cobblestone-gravel aquifer is located under the top soil layer.
2.10 Hanoi has a large number of ponds and lakes. The largest is West Lake with an area of
446ha. Most of the lakes and ponds are shallow with a depth of 2m to 4m. As part of the
sewerage and drainage system for wastewater treatment, they regulate the flows. They are
also used for recreational purposes and fish farming. However, in the process of urbanization,
up to 50% of ponds and lakes have been reclaimed for urban development.
Land Use
2.11 Overall Land Use: Of the total land area of 921km2, 626.2km2 (68% of land) falls
under rural use. In urbanized areas, Hanoi has 62.5km2 (6.8%) of residential land, 3.6 km2
(0.4%) of commercial land, 23.9 km2 (2.6%) of institutional land, 16.8km2 (1.8%) of industrial
land, 2.6km2 (0.3%) of parks, and 34.9 km2 (3.8%) of land for urban facilities. Other areas
account for 16.3% of Hanoi’s total land area. Land-use patterns highlight the fact that the main
economic and social functions are highly concentrated in the urban core districts even though
their actual land size is very small. Currently, there are insufficient urban lands in Hanoi, as
large areas are still used for the primary sector.
2.12 Transportation Land: Hanoi has a main road length of 624km, a railway length of
123.2km, and an inland waterway length of 80.7km. The ratio of road area to Hanoi’s total land
area is 1.9%, which is absolutely low compared to major cities in other countries. Other main
transportation lands include airport, port, and railway yards, accounting for roughly 20 km2,
which include 10km2 of Noi Bai Airport.
2.13 Parks and Green Spaces: Hanoi has a total of 622km2 of green spaces, most of
which are rice fields and other agricultural land (501km2), followed by water surface (81km2),
forest area (37km2), and parks (3km2). While 90% of the agricultural area is in suburban and
rural districts, 84% of parks are in urban core and urban fringe areas. In the 9 urban districts,
there are 175ha of park areas, including water surface. In the old developed areas, such as
Hoan Kiem and Hai Ba Trung districts, the average per capita green space is relatively higher.
But in rapidly urbanizing districts, such as Dong Da and Gia Lam districts, the average per
capita green space is only 0.05m2. The average park area per person is still low compared
with figures in other countries.

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Figure 2.3 Physical Setting of Hanoi

Soc Son

Dong Anh

Tu Liem Tay Ho

Long Bien
Cau Giay
Gia Lam
Urban Core

Thanh Xuan

Hoang Mai

Thanh Tri

Source: Quickbird Satellite Image (2003).

Note: The urban core covers Ba Dinh, Hoan Kiem, Hai Ba Trung and Dong Da districts.

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2.3 Population and People’s Profile

2.14 Population: During the last decade, Hanoi has grown rapidly in many aspects. Its
population has continuously increased at a rate of nearly 3% per year. As of 2005, Hanoi had a
population of 3,183,000, 63% of which resided in urbanized areas. Besides natural population
increases, in-migration from surrounding provinces and cities has contributed to the rapid
population growth. About 50,000 people migrated to Hanoi each year in the 1999-2004 period.
2.15 Although such rapid population growth can be seen in the entire city, it is particularly
significant in the city’s urban fringe districts. Urban areas expanded beyond RR2, then further
to RR3. The more recent growth has even spilled onto suburban areas. While developments in
peri-urban areas have accelerated, it is also of note that: (i) growth in the urban core has been
active in spite of its already high population density, and (ii) growth in rural areas has been
moderate, and development pressure in these areas has not been that intense.
2.16 Profile of Households: There average household has 4.3 members with a household
income of VND 2.7 million per month. 89% of households have land-use rights and 92% own
houses which are mostly detached. The ratio of apartments and high-rise residents is still low
and only high-income class households live in such kinds of housing. No matter how low or
high the income, 83% of households in Hanoi own motorcycles with 40% of them having more
than two. Car ownership is still low at 2% in the whole city.
2.17 Households in Hanoi can be classified into four household types by composition. Their
socio-economic characteristics are summarized below (see Table 2.2).
(1) Single Households: This household type mainly comprise the elderly living alone, 80% of
whom are in their 50s and 60% in their 60s. 60% are female. Since most are retired or
jobless, this type has the lowest average household income and lower than average
vehicle and goods ownership. Per capita average living area, however, is the highest at
61m2. The share of apartment dwellers is 24%, which is higher than average (12%).
(2) Shared Households: This household type is common among students and workers who
share rooms with friends and colleagues, and among the elderly who share rooms with
relatives or others. The share of people in their 20s and are working in the tertiary sector
are higher than average. The income level per gainfully employed worker is average. Per
capita floor area is almost average but quite low considering the small household size.
(3) Nuclear Households: This household type is fast becoming popular among 30- and 40-
year-olds. Socio-economic conditions, housing standard, and area distribution are almost
in line with the city’s average. However, some households, such as those comprising
single parents and children, have poorer conditions: motorcycle ownership is only 46%
and average monthly household income is only VND 1.46 million. For households with
both parents and children, it is VND 2.24 million.
(4) Multihouseholds: This household type comprises members spanning more than 2
generations. It accounts for 61% of total households of Hanoi City and includes 58% with
children and 42% without. Socio-economic conditions are slightly higher than average
owing to its large number of gainfully employed members. Per capita floor area is the
lowest at 18-21m2 due to its large household size.
2.18 In general, the quality of life of Hanoi households is relatively higher compared to those
in the same income levels in other countries. Ownership of basic household commodities and
housing, as well as the coverage of urban services, is likewise relatively higher.

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Table 2.1 Hanoi’s Population by District

Population (000) Annual Pop. Population Density, 2003
Area Pop. Density,
2 1999 2005 Growth
(km ) 2005 (no/ha)
no. no. 99-05 (%/yr)
Hanoi City 921 2,675 3,183 2.9 35
Urban Core 35 963 1,094 2.1 316
Ba Dinh 9 198 231 2.6 249
Hoan Kiem 5 165 179 1.3 338
Hai Ba Trung 10 272 312 2.3 310
Dong Da 10 328 372 2.1 374
Urban Fringe 144 673 896 4.9 62
Tay Ho 24 91 108 2.9 45
Thanh Xuan 9 149 196 4.6 215 Population Growth, 1999-2003
Cau Giay 12 122 171 5.8 142
Hoang Mai 40 161 236 6.6 60
Long Bien 60 151 186 3.6 31
Suburban 139 343 427 3.7 3
Tu Liem 75 193 262 5.2 35
Thanh Tri 63 150 165 1.6 26
Rural 604 696 766 1.6 13
Soc Son 307 246 266 1.3 9
Dong Anh 182 261 288 1.7 16
Gia Lam 115 188 212 2.0 18
Source: HAIDEP HIS (2005).

Table 2.2 Characteristics of Households in Hanoi

Household Size
Nuclear Household Multihousehold
Nonfamily Total
Single Without Single With Without With
household1)
Children Parents Children Children Children
Household
Number of HH (000) 7 17 53 13 205 266 194 755
% to Total 1% 2% 7% 2% 27% 35% 26% -
Average Size 1.0 2.8 2.0 2.6 3.8 4.5 5.4 4.3
Household Member
Male 38.7 33.4 50.0 35.3 50.4 51.2 48.2 49.5
Gender (%)
Female 61.3 66.6 50.0 64.7 49.6 48.8 51.8 50.5
Housing
Living Per HH 61 65 81 67 79 93 98 88
Space (m2) Per capita 61 23 40 26 21 21 18 21
Traditional house 6.0 5.5 4.1 2.4 3.1 4.0 4.6 3.1
Housing Apartment 23.7 24.4 21.6 13.4 11.8 14.6 11.4 11.8
Type (%) High-rise apartment 5.2 1.3 0.9 0.4 0.7 0.5 0.3 0.7
Detached house 65.1 68.8 73.3 83.8 84.5 80.9 83.7 84.5
Period of Stay (year) 34 36 39 30 39 45 52 44
Economic Conditions
Household Income (mil VND/month) 1.08 1.98 1.81 1.46 2.24 3.21 2.89 2.69
Vehicle Bicycle 45 65 63 79 81 75 88 79
Ownership Motorcycle 29 72 57 46 84 92 91 85
(%) Car 0 1 1 1 2 2 2 2
Electricity 100.0 99.4 99.8 97.8 99.5 99.8 99.5 99.6
Piped water supply 76.3 74.8 74.7 61.8 57.6 65.9 57.0 62.2
Access to Toilet facility 87.1 82.8 83.3 73.0 77.5 81.3 76.7 79.2
Urban
Gas 69.8 78.2 81.3 62.9 73.7 80.4 73.5 76.4
Services
Telephone (fixed) 67.7 79.9 82.9 59.2 74.5 88.5 82.2 81.8
(%)
Solid waste collection 87.2 88.5 87.4 81.6 82.0 87.1 80.8 84.0
Internet 9.2 10.7 7.9 4.9 7.5 12.0 9.4 9.7
Air-con 14.2 16.8 23.2 11.4 18.0 19.9 18.0 18.9
Washing machine 25.8 35.7 41.5 25.0 38.6 45.0 39.2 40.8
Refrigerator 59.7 71.5 75.8 51.2 67.0 76.1 70.0 71.4
House
TV 93.4 96.9 97.6 91.9 98.1 98.9 98.7 98.3
Goods (%)
Radio 56.2 50.9 60.6 39.5 51.8 63.4 59.0 58.2
Computer 16.1 32.3 18.8 25.6 25.8 38.8 32.3 31.7
Mobile phone 20.4 38.8 22.7 18.7 35.7 54.2 42.8 42.8
Source: HAIDEP Study Team.
Note: “Single household” has only one member. “Shared household” comprises same-gender friends, brothers or sisters, which are often seen
among students or young workers in Hanoi City. “Nuclear household” comprises three types (one without children, one with a parent and
child/children (less than 16 years old), and one with both parents and child/children). “Multiple household” comprises members spanning
more than 3 generations.

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2.4 Socio-economic Conditions

2.19 Hanoi’s socio-economic conditions have improved substantially since the introduction
of Doi Moi in 1985, particularly during the last decade. Economy has grown significantly,
poverty has been reduced substantially, per capita GRDP reached US$ 1,350 in 2005, and
84% of households own motorcycles. Employment opportunities have expanded and
enrolment in primary and secondary education has reached almost 100% (see Table 2.3). The
strong and stable growth of Hanoi has attracted a constant inflow of people from neighboring
provinces which has further sustained the city’s growth, although at the same time it has
magnified the need for adequate economic and social infrastructure and services.
2.20 Overall Economy and Poverty:
Table 2.3 Major Socio-economic Indicators of
During the last decade, Hanoi’s GRDP
Hanoi, 2005
increased by 11% per year, and Indicator 2005
employment followed suit. The share of Population Total (000) 3,183
the tertiary sector (services) decreased, Urban, 000 (%) 1,990(62.5)
GRDP (VND bil) @ Current
from 64% in 1995 to 60% in 2000 and to Prices
70,326
58% in 2003. Meanwhile, that of the Economy Per Capita GRDP (US$ mil.) 1,350
1)

secondary sector (industries) increased Sector Share (%) (Pri/Sec/Ter) 1.7 / 40.8 / 57.4
FDI (US$ mil.) 9,241
from 31% in 1995 to 36% in 2000 and Total (000) 1,517
38% in 2003. Since appropriate Sector Share (%)(Pri/Sec/Ter) 22.3 / 21.9 / 55.8
Employment
locations for the secondary sector within Government Workers (000)
2)
544
Unemployment (000) 47.7
Hanoi are getting constrained, it is
Primary 203
expected that there will, and should, be No. of
Students (000) Secondary I / II 181 / 109
more work opportunities in the tertiary Social Tertiary 380
Environment Enrolment (%) (Pri/Sec I/Sec II) 98 / 97 / 63
sector. 3)
Poverty Index 16.08
2.21 With a growing economy, HDI
4)
0.798
Vehicle Motorcycle (% of HHs) 83.9
poverty incidence in the Red River Delta, 5)
Ownership Car (% of HHs) 1.6
to which Hanoi belongs, quickly Visitors to Domestic Arrivals (000) 3,600
decreased from 62.7% in 1993, 29.3% Hanoi Foreign Arrivals (000) 1,050
Source: Various publications.
in 1998, and 22.4% in 2002.2 Hanoi’s 1) Hanoi City 5-year Socio-economic Plan.
human development index (HDI) 3 can 2) Number of registered job applicants.
3) Viet Nam Living Standards Survey 1997-1998. The index
further contribute to competitive national denotes the share (%) of people living below the poverty line
economic development and help to the total population of a province.
4) Index as of 1999. Hanoi is ranked second among all provinces
eradicate poverty. In 1999, it ranked in Vietnam.
second overall in HDI, at 0.798.
2.22 Industry: The city’s economic structure has likewise changed. The contribution of the
secondary and the tertiary sectors has become dominant, while that of the primary sector has
declined to an insignificant share of the city’s economy despite a 22% share in the
employment pie, indicating low productivity compared with the secondary sector. The share
of manufacturing (electricity, motors, textile, machines) geared toward export was 50% of total
gross outputs in 2004. Other industries, such as food and beverage, garments and medicine,
which mainly target the domestic market take the next higher position. As other provinces
around Hanoi have developed a similar industrial structure, the city’s role in industrial
development is expected to change from conventional manufacturing to nonpollutive,
high-tech, and knowledge-based industries.

2
Vietnam Development Report, 2004.
3
HDI is an indicator showing an increase of basic human capacity which is calculated based on average life
expectancy, educational level and income.

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2.23 While the industrial investment plan has alloted around 2,300ha in Hanoi City as
industrial areas, only 1,684ha have been occupied. The city has also offered incentives to
polluting factories (84 enterprises including large SOEs and small and medium factories) to
move out from the inner city, but the program has not been successful due to lack of funds and
issues about the proximity of relocation sites to the old factory sites.
2.24 Commercial/Business: As urbanization associated with economic growth advances,
new and diverse types of business (eg IT software, financing, etc.) emerge and the need for
much improved services for the people and corporations increases. The movement of these
business activities at different scales is already evident all over the city. However, there is no
clear policy to manage this type of development in a way that it will contribute to economic
growth, improve services and living environment, and help control the negative impacts due to
mixed land use and considerable development activities
2.25 Tourism: As the capital city, Hanoi functions not only as the gateway to the country but
also as one of the three major hubs of Vietnam tourism. Considering the importance of tourism
in economic development, local governments in the northern region have created tourism
development bureaus to promote and develop tourism. In the last five years, the growth rate in
the number of international tourists to Hanoi has been high, hovering at a stable rate of 30%.
The growth rate of domestic tourists has likewise increased with travel demand associated
with economic development. Tourism’s remarkable contribution to Hanoi’s economy has been
stable at around 10% of total GRDP in the past five years since 2001.
2.26 Education: Due to the many higher education facilities in Hanoi, including 51 colleges
and universities, that attract students from other provinces, it has a large population in the
tertiary education compared with the lower education levels. In 2005 there were 380 thousand
tertiary students in Hanoi City, or 28.5% all over Vietnam, while that for primary and secondary
education is about only 3.0%. Student populations are concentrated in Hai Ba Trung District
and Dong Da district at 17%, followed by Cau Giay Thanh Xuan District at 15%.
2.27 Health: As of 2005, there are 31 hospitals and 233 district or commune-level
clinics in Hanoi City. Hanoi has the highest level of health care service in Vietnam. The
number of beds and doctors per 10,000 person in Hanoi are 34.9 beds and 9.7 doctors
respectively, while national average is 15.9 beds and 5.4 doctors. On the other hand, most
of provinces surrounding Hanoi City has lower standard of health care than national
average except for Thay Nguyen province, which has resulted in heavy concentration of
patients into Hanoi City.
2.28 Lifestyle: Most households live in detached houses and own one or more motorcycles,
although many in the lowest income group do not own any vehicle. Car ownership is still low at
2%. While increases in incomes have altered the people’s lifestyles with expanded ownership
of and demand for various household and personal goods, as well as diverse services, it is still
mostly the high-income households that can afford most electric appliances such as air
conditioner, washing machine, and refrigerator, except for TVs. Factors such as local
characteristics, convenience, and affordability should be carefully considered in planning. In
addition, urban-rural linkages should be enhanced to avoid the further widening of disparities.
It is expected that the urban economy of Hanoi will further shift to a greatly improved and
diversified tertiary sector to respond to the changing needs of society.

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2.5 Urban Services

2.29 Urban services in Hanoi have been improving. However, the situation varies by type of
services and particularly by district. Based on the responses made in the HIS, various urban
services were assessed by district in terms of service coverage ad people’s satisfaction with
them. Results show that while city centers are provided with better services, in outer areas,
where urban development activities are fast increasing, the coverage is still in sufficient. The
people’s satisfaction rates are generally higher in spite of the low service coverage.
2.30 Water Supply: In Hanoi, 61.6% of households are supplied with piped water. The
urban core and fringe areas are well connected to the water service. On the other hand,
connection in the rural areas is still poor, especially in Soc Son and Dong Anh districts, where
service coverage is 1.2% and 6.0% respectively. Most households without piped water supply
depend on private wells. Hanoi currently depends on groundwater as a source of drinking
water. Because water in the south is heavily polluted and consumption is expected to increase
with urbanization, it is necessary to seek other sources, such as surface water from rivers.
Moreover, groundwater extraction will cause land subsidence in the city. Identification of new
water sources as well as water supply service coverage areas by water companies and the
communes is being sought. In addition, water quality and water supply pressure should meet
certain standards.
2.31 Drainage System: With continuous dyke management combined with the
strengthening of dykes along the Red River, Hanoi has been protected from destructive
floodwaters from the river, except for areas developed outside the dykes. Due to the lack of
drainage capacity and recent rapid urbanization, by rain water is frequently observed,
especially in the urban core and urban fringe. In a typical year they can have depths of
around 50 to 60cm in the city center. More than 30% of Dong Da households and 20% of
Thanh Tri, Tu Liem, and Cau Giay households suffer from flooding every time it rains
heavily. Inundation by storm water also causes overflow of wastewater. In districts
experiencing such overflows, the people have a low satisfaction with the drainage system.
2.32 Wastewater Disposal System: Wastewater from toilets in urban areas goes through
septic tanks or tanks, or is discharged directly into drainage systems. According to the
Household Interview Survey (HIS), 43.6% of households are connected to the urban sewerage
system and 40.0% to on-site sanitation facilities (e.g. septic tanks), the septage of which is
collected by the public sector. Meanwhile, 16.5% have no access whatsoever to sewage
treatment.
2.33 Toilet: About 80% of households have access to toilet facility. In urban core and urban
fringe districts, 90% of households use flushing toilet, while suilabh and simple toilet had
higher share in suburban and rural districts. Hoan Kiem district has lower coverage of toilet,
where about 13% of households share toilet with others.
2.34 Solid Waste Collection: Currently, public solid waste collection covers around
84% of Hanoi, while private or community level collection service covers other areas. Only
Soc Son District has a low coverage at 30%, while others achieve more than 70% of solid
waste collection coverage. The existing Nam Son landfill site is expected to reach its
capacity earlier than expected, due to increased waste generation. Therefore, waste
reduction, the introduction of new methods to treat solid waste, and search for alternative
landfill sites are being considered.

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2.35 Electricity: Most of households in Hanoi have access to electricity, of which

coverage is over 99% even in rural districts. It is observed that people’s satisfaction is
lower in suburban and rural districts in spite of its high coverage. It may be partly because
of its unstable services and frequent blackout.
2.36 Flood Protection: Hanoi is prone to flooding because many of its urban areas lie
lower than the Red River and inundations occur when the river is occasionally at a high
water level. A fairly wide area in Hanoi suffers from flood or inundation either regularly or
whenever it rains. Crippling flooding from the Red River may occur at the rate of once in
100 years.
Figure 2.4 Coverage of and Satisfaction with Urban Services

Electricity
Hanoi City
100
Solid Waste Collection Piped Water Supply

50

Telephone
Toilet

Gas

Ba Dinh Hoan Kiem Hai Ba Trung Dong Da

100 100 100 100

Service 50 50 50 50
Coverage
Satisfaction 0 0 0 0
Rate

Tay Ho Thanh Xuan Cau Giay Hoang Mai Long Bien

100 100 100 100 100

50 50 50 50 50

0 0 0 0 0

Tu Liem Thanh Tri Soc Son Dong Anh Gia Lam

100 100 100 100 100

50 50 50 50 50

0 0 0 0 0

Note: Worked out by the HAIDEP Study Team based on HIS conducted in HAIDEP.

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SUMMARY

2.6 Urban Environment

Air and Noise Pollution
2.37 Currently there is not serious air pollution observed in Hanoi except for total
suspended particulate materials (TSP) for the whole city. Generally major pollutants sources
causing air pollution include industrial activities, transport activities, construction, and
somehow household cooking. According to DONRE, 17 factories out of 400 in Hanoi have
generated pollutants to the air, where major pollutants are TSP and carbon mono-oxide (CO).
Higher level of air pollution area observed particularly around industrial areas.
2.38 Emissions from traffic have become major source of air pollution in urban areas.
The heavy pollution of dust at traffic intersection was indicated in some environmental
surveys. The levels of TSP, SO2, NO2 and CO at traffic intersection were slightly higher
than those of ambient air around industrial areas, partly because of higher concentration
of vehicle emissions. Since leaded gasoline was phased out in 2001, the lower
concentrations of lead have been observed.
2.39 Noise and vibration pollution has been observed along the major highways and
around major industrial area. Some industrial areas have seen improvement on the level
of noise pollution, while the others have seen deterioration. Particularly along the certain
highways, noise pollution level exceeds the standards even during the night.
Water Quality
2.40 While quality of ground water is good in general, deterioration has been observed
both for quality and quantity due to uncontrolled exploitation and infiltration of
contaminants from wastewater and solid waste. The hygienic contamination of ammonium
has been serious problem particularly in the southern area of the city. The highest value is
found in Phap Van water plant. Such high contamination of ammonium cannot be removed
with the current water treatment technology. Alarming sign of ground water contamination
is shown in arsenic in some areas of Hanoi City, which is originated from geological
formation and fluctuated by season and area.
2.41 Most of domestic wastewater has been treated by septic tanks before released into
drainage system or water bodies. However, ineffective septic tanks and lack of regular
suction has deteriorated water quality of surface water bodies. Wastewater from industrial
and hospitals are rarely treated or only 6% of total are treated. It has contributed the water
pollution with a lot of pollutants.
2.42 Four main rivers flow through Hanoi City, Kim Nguu, To Lich, Set and Lu rivers,
where wastewater is discharged. Kim Nguu river receives the highest load of pollutants
from 14 main outlets. The ammonia concentration of those rivers ranges from 28.9 mg/l to
10.0 mg/l, which is almost the same as the groundwater in the southern part of Hanoi City.
2.43 In general, water running in the Red River is not polluted, where most of quality
parameters pass the Vietnamese Standard. Due to high content of suspended solid and
turbidity, however, the Red River cannot be used for water supply in Hanoi. Another major river
system in Hanoi City is the Nhue river, which is originated from the Red River and run through
Hanoi, Ha Tay and Ha Nam provinces. Un-treated industrial and domestic wastewater in Cau
Dien and Ha Dong areas are discharged to Nhue river, resulting in higher content of COD and
BODs compared to the Red River.
2.44 Hanoi has abundant resources of lakes and ponds. The quality of surface water
varies by lakes and even within in one lake by distance from the inlet, where wastewater is

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 The Comprehensive Urban Development Programme in Hanoi Capital City (HAIDEP)
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SUMMARY

discharged. Some lakes at the upstream of wastewater drainage system are heavily
polluted such as Van Chuong, Giam, Linh Quang, and Truc Bach.
Solid Waste Management
2.45 The total amount of municipal solid waste in Hanoi City is about 490,000 tons per
year or 1,300-1,500 tons per day, which account for 70% of total non-hazardous solid
waste. 13% and 16% of them are from industries and construction. Hazardous waste from
industries and hospitals amount 19,500 tons per year. Those waste are not properly
disposed, resulting in the risk for human health and urban environment.
2.46 Solid wastes are collected without being segregated and transported to treatment
sites. The collection efficiency is about 80% and recycle and reuse rate, mostly by
scavengers, is estimated at 20%. Most of collected solid waste is disposed at land fill site.
There are one sanitary landfill and three simple ones. Serious issues are observed not
only for the capacity but also for the quality of the leachate discharged from landfills.
2.47 Hazardous healthcare waste have been burned in incinerators installed at several
hospitals and in the centralized incinerator at Cau Dien. Since the Cau Dien incinerator
started operation in 2000, the rate of hazardous healthcare waste treatment has improved
from 33% in 2003 to more than 90% in 2004.
Parks, Green Spaces, and Landscape
2.48 Another important elements of urban environment in Hanoi are abundant green areas
and those forming landscape. Central Hanoi has a number of parks with water bodies and
many green fields extend in suburban and rural area. However the residential areas
particularly in the peripheries of the urban core have limited greeneries. People strongly
demand for community parks within walking distances from their residences, where people
enjoy exercise and walking in their daily life.
2.49 The exquisite blend of diverse landscape resources, such as rivers and lakes, parks,
historical buildings and cultural activities, makes Hanoi stand out from other cities, attracting
people from other provinces and countries. However, the charm of Hanoi is being threatened
as urban development progresses. Landscape blights, such as excessive advertisement
materials, crisscrossing electric wires, disorderly parking on roads, and unregulated
building/housing construction, have increased thereby spoiling the vista. Hanoi’s landscape
must be preserved or improved, depending on the area, to showcase the city’s
socio-economic status and cultural identity
Illegal Housing Area
2.50 There are some areas where housing development has been conducted without any
legal procedures such as issuance of land use right certificate, housing ownership certificate,
and construction permit, mainly due to termination of housing subsidy, relaxation of control on
population movement and institutionalization of land market at Doi Moi. Those areas are
typically observed outside of the Red River, in the fringe of urbanization process and some
open spaces in urban districts.
2.51 Such illegal housing area has formulated “Squatters” with undesirable living conditions.
Since infrastructure is not well provided, such as road and drainage, inundation is frequently
occurred causing deterioration of sanitary condition. While basic urban services such as
electricity, water supply, and solid waste collection are generally provided formally or informally,
households have difficulty to access to social services such as school and health care services
due to lack of legal registration.

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2.7 Urban Transportation

2.52 Urban Transportation Demand: Vehicle ownership in Hanoi, compared to other Asian
cities, is characterized by significantly high levels of motorcycle ownership: more than 80% of
households own motorcycles, with 40% owning more than 2. Urban transportation demand
has increased rapidly due to increases in population and vehicle ownership rates, and travel
distances. Modal shift is also notable between 1995 and 2005. Motorcycle traffic increased by
6.4 times and car/ taxi traffic by more than 30 times. Meanwhile, walking and bicycle trips
decreased. Motorization will further accelerate. The number of cars has increased steadily and
will become more significant as the economy grows and incomes increase, as other Asian
cities have experienced. Hanoi must be prepared for this.
2.53 Traffic Congestion: Congestion in Hanoi is not as bad as that in other big Asian cities
like Bangkok, Kuala Lumpur, Manila, even Singapore and Tokyo. The average travel time
spent in going to offices 18-20 minutes in Hanoi and HCMC, 40-50 minutes in Manila and
Jakarta, and 30-40 minutes in Tokyo and Osaka. However, the future scenario will be different
if no countermeasures are implemented. When car traffic increases, congestion will become
very serious and road traffic will not flow as is now being experienced in many large cities such
as Bangkok, Manila, and Kuala Lumpur. Causes of traffic congestion are many and complex
including lack of efficient road network, inefficient traffic management, illegal parking, bad
driving, joyriding, and poor enforcement of traffic rules and regulations. Since the causes are
interrelated, comprehensive solutions are necessary.
2.54 Public Transportation: Since the tram disappeared in the late 1980s, bus passengers
decreased. Bus services did not improve in the 1990s. In 2002 the “Model Bus” policy was
introduced, including new bus routes, new vehicle fleet, new bus shelters, and information
schemes. Hanoi achieved an initial success in the revitalization of bus services through
modernization, with the share of bus in terms of person trips increasing to about 7% of the total
in 2005 from a very dismal 1-2% in the previous 5 years. Bus operations covered 41 bus
routes and 687 bus units carrying 284,600 passengers. However, to further increase bus
transportation demand, the next step is service improvement including the provision of
segregated bus lanes and the improvement of the network and operations. While more than
98% of bus users said bus services have improved and are important, they believe that
services must be expanded.
2.55 Traffic Safety: Traffic safety is one of the most serious problems in Vietnam. In Hanoi
safety levels worsened as traffic grew. While the number of accidents decreased, the number
of fatalities continuously increased from 247 in 1990, 385 in 2000, and 452 in 2004. More than
60% of accidents involved motorcycle users. Main causes of accidents are man-induced such
as reckless/ undisciplined driving, drunk driving, and violation of traffic rules. Driving
motorcycles with excessive number of passengers without helmets make traffic accidents
more serious. Vietnam is the only Asian country where motorcycle users do not wear helmets.
An immediate solution which can significantly reduce accidents and casualties is for people to
observe simple traffic rules and driving etiquette.
2.56 Satisfaction: Generally travel conditions in Hanoi are considered good. People’s
satisfaction varies by transport mode; bus users rated safety highly and motorcycle users
preferred its convenience. Seeing by travel time, there seems to be a certain relationship
between travel time and people’s evaluation. Motorcycle and bicycle users considered a 20- to
30-minute duration as a kind of yardstick for evaluating a trip as “bad” or “good”. This value
tended to be longer for car and bus users.

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Table 2.4 Vehicle Ownership Rates Table 2.5 Urban Transportation Demand in Hanoi
among Hanoi and HCMC Households
Vehicle Type Hanoi1) HCMC2) No. of Trips (000/day) Modal Share (%)
Mode
Car 1.8 1.7 1995 2005 2005/1995 1995 2005
Motor- More than 2 44.7 58.9 Vehicle Bicycle 2,257 1,592 0.7 73.2 25.1
Cycle one 39.8 33.8 Motorcycle 632 4,047 6.4 20.5 63.8
Bicycle 11.5 4.4 Car/ Taxi 7 227 32.4 0.2 3.6
None 2.3 1.3 Bus 21 427 20.3 0.7 6.7
Total 100.0 100.0 Others 165 47 0.3 5.4 0.7
Source: HOUTRANS (2002) and HAIDEP (2005). Subtotal 3,082 6,340 2.1 100.0 100.0
1) As of 2005 2) As of 2002. Walking 3,141 2,173 0.7 50.5 25.5
Total 6,223 8,513 1.4 100.0 100.0
Source: HAIDEP HIS. 2005.

Figure 2.5 Changes in Bus Passenger Ridership

Mil. Trips/Year
300 300

"PRE - DOI MOI ERA"

Pre-Doi Moi Era "TRANSITION ERA"
Transition Era New Era
"NEW ERA"

250 250

200 200
Trips/year

150
150

100 100

1989 2001
50
50

0
0
.
1980
1980
1982
1982
1984
1984
1986
1986
1988
1988 1990
1990 1992
1992 1994
1994
1996
1996
1998
1998
2000
2000
2002
2002
2004

Source: TUPWS
Figure 2.6 Important Factors for
Improved Bus Services Table 2.6 People’s Assessment of Traffic Safety

% to Total
Assessment of Driving MCs 63
Traffic Safety (% of Driving Bicycles 34
Dangerous)
Pedestrians Crossing Roads 70
Compared to 5 Years Ago
43
(% of “worse”)
Traffic Accident Fatal 0.6
Experience in the Serious Injuries 3.0
Past 5 Years (%)
Light Injuries 12
Source: HAIDEP HIS, 2005.

Note: Worked out by the HAIDEP

Study Team based on HIS
results, 2005.

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SUMMARY

2.8 Housing
2.57 Since the Doi Moi policy, Vietnam’s housing policies, an important foundation of its
socialist system, were drastically changed. Government has changed “all provided through
market” from “all provided with subsidy.” While urban population is rapidly increasing, the
demand for adequate housing has become so huge that the current policy is unable to
respond to market needs, especially the low-income group. In addition, many of the current
housing stocks are substandard and require rebuilding.
2.58 At present, 90% of the households own housing, most of which were provided by the
government before Doi Moi and transferred to them afterward.
2.59 Housing Stock: In 2003, Hanoi’s total housing floor area rose to 20 million m2,
showing a 35% increase from 15 million m2 in 1999. Housing floor area in Hanoi’s urban areas
was estimated at 11.7 million m2, or a remarkable increase of nearly 60% from 7.5 million m2.
The most typical houses in Hanoi is detached houses, including traditional house in Ancient
Quarter, shop-house along major corridors and rural houses. High-rise apartment has been
constructed in new urban area in urban fringe and sub-urban areas.
2.60 While housing stocks have increased continuously in the last 5 years, housing
standards have not improved significantly. While physical conditions of houses have improved
with the use of more permanent materials, floor spaces remain insufficient. Housing has the
highest dissatisfaction rating by the people. About 25% of Hanoi residents and a third of urban
core residents are not satisfied with their housing conditions.
2.61 People’s Satisfaction: Although it seems the overall housing conditions have
improved in terms of ownership4, physical conditions5, and space6, the people are not satisfied
with many aspects. Based on HIS results, about 27% of all households are dissatisfied with
their existing housing. By group, these households comprised 43% in the Ancient Quarter,
54% in collective apartment areas, and 39% in the French Quarter. Fifty-seven percent (57%)
of households residing in houses with less than 25m2 are dissatisfied with existing housing
while 32% of those living in a 26-50m2 living area were dissatisfied. The people’s priority
concerns on housing are space and air flow followed by sunlight, location, and structure. With
regard to housing type, most people like detached houses.
2.62 Supply of housing has been increasing; a total of about 2.8 million m2 was added
between 2003 and 2005, with increases from 2.2 million m2 in 2001-2003 and 1.4 million m2 in
1999-2001. More than 60% of new constructed housing are provided by project-type
development. The most significant type of housing development is the project type of
development undertaken by SOE developers under the ministries, such as HUD and
VINACONEX under MOC 7 . The second type includes a large number of small- to
medium-scale projects with less than a hectare of land. The third type is housing development
by city governments for privileged people who are given special considerations8. On the other
hand, the share of self-built housing construction has decreased from 69% in 1999 to 33% in
2004. There is little development mechanism to provide land lots for individuals to develop
housing.

4
47.3% of households in Hanoi’s urban districts own houses in 1989 which increased to 91.3% in 2005.
5
Percentage of houses with permanent structure increased from 50% in 1989 to 75% in 2005.
6
Floor area per capita increased from 5.1m2 to 8.1m2 in urban areas, although in rural areas it decreased from
19.1m2 to 15.7m2 between 1999 and 2005, respectively. The average floor area is only 10.9m2 per capita in 2005
2
as compared to the target of 18m per capita.
7
This type of project include Ding Cong project (35ha, 1,183 units), Linh Dam Peninsula Project (35ha, 1,400
units), My Dinh II Project (26ha, 1,248 units), Trung Yen South Project (202ha, 4,114 units), etc.
8
Including invalids, revolutionary martyrs’ families, senior revolutionary people, poor households affected by land
clearance.

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Affordability
2.63 The people’s affordability for adequate housing is becoming an emerging issue.
Survey results conducted in HAIDEP indicate that housing stocks supplied in the market are
mostly beyond the reach of average households. All types of housing for purchase cost more
than 5 to 10 times of annual incomes of average households, while those for rental exceed
more than 20% of their monthly incomes (see Figure 2.7). Even for higher-income households,
such housing units are still costly. While most households own houses in Hanoi, such a
demand-supply gap is a more serious concern for households who migrate from other
provinces, the number of which is expected to increase in the future.
Table 2.7 Housing Stocks in Hanoi

Total Total No. of Average Living

Year Housing Housing Units Housing Area Area/Person
Area (000) (m2/unit) (m2)
1995 28,203 616 45.8 10.5
2001 29,644 654 45.4 10.4
2003 31,864 691 46.1 10.6
2005 34,642 729 47.5 10.9
Source: 1999 Housing Census, Statistical Year Book of Hanoi, HAIDEP HIS, estimate
of DONRE.

Figure 2.7 Affordability Levels of Average Households for Housing

Purchase Price
Purchase price (million VND)

2,000
Detached house
1,600 Apartment
Apartment
1,200 in new urban area
800

400 Pb Notes: Pa = 5 times of average income

(VND 180 mil/yr)
- Pa
Pb= 10 times the average income
0 50 100 150
(VND 360 mil/yr)
Floor area(m2)

Rental
8.0
50m2
Rental fee (million VND)

Detached
Detached with CM floor
6.0
High-rise apartment
Apartment
4.0

2.0

Ra= 20% of Monthly Income

0.0 (VND 0.6 million)
0 20 40 60 80 100 120 140
Floor area (m2)
Source: HAIDEP Housing Market Price Survey

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2.9 Comprehensive Assessment of Living Conditions

Analytical Framework: Urban Karte
2.64 While the improvement of living conditions is an important policy agenda for the
government, the people, and the entire society, it is not easy to evaluate the living conditions in
a way that the government can specifically identify why the living conditions are bad and
implement appropriate measures for improvement. It is also important to know whether the
people can feel that the measures have been effective and living conditions have improved.
For the government to implement measures correctly to the satisfaction of the people, an
analytical method must be established. In HAIDEP, on the basis of existing and collected data
and opinions of the people gathered through the comprehensive HIS, a practical method was
developed and adopted for a deeper analysis of the living conditions.
2.65 Living conditions are defined as a composite of four factors as defined by WHO, which
refer to the ability of households /communities to improve their situation (see Figure 2.8).
(i) Convenience: Access to electricity, road area ratio, travel time for work trips, work trips by
public transportation.
(ii) Safety & Security: Protection against crimes and traffic accidents or from flooding.
(iii) Health & Wellbeing: Access to piped water, sanitary facilities, and health care.
(iv) Amenity: Access to socio-cultural activities, parks, and green spaces; size of living space.
(v) Capacity: Assets, income, enhanced capabilities, access to Internet.
2.66 Each factor is represented by a number of indicators for which the data is available and
easy to understand. Based on the indicators, each factor was assessed and the score was
calculated. The total score for the above 5 factors is the integrated score which explains the
level of overall living conditions based on objective indicators (see Figure 2.9). At the same
time, the satisfaction of the people with each factor was gathered from the Household
Interview Survey (HIS) respondents who numbered 20,000 household heads, showing that the
people are generally satisfied with their living conditions. Satisfaction was also translated into
scores depending on the level of satisfaction (see Figure 2.10). By comparing the scores
obtained from the objective analysis and the subjective (satisfaction) judgment of the people,
both the government and the people can share an understanding on the gap between the two
levels and develop the right actions and measures to improve the living conditions.
2.67 The analysis was made for all communes in Hanoi City (see Figure 2.11) and compiled
into an Urban Karte which gives a summary of existing conditions and a diagnosis of living
conditions. This is the first attempt to analyze the living conditions of the entire urban and rural
areas in Hanoi City. Although there are still areas that must be improved, this will provide a
useful input to the effective improvement of the living conditions. It is also a more scientific and
effective way of preparing urban and land-use plan as well as other infrastructure development
plans.
Future Use in Urban Planning and Development
2.68 The “Urban Karte” system can provide very useful information and tools to access
living conditions by both for the government and the people on the same basis. The
government can know more precisely what must be improved to meet the demands if
communities and the people can know more objectively what must be done. The Urban Karte
system can be shared by community, districts, and cities in future urban planning.

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Figure 2.8 Method for Analysis of Living Conditions

Objective Assessment using Aspects of People’s Satisfaction

Indicators Living Conditions with
Access to electricity (%) convenience and
Road area ratio (%) accessibility to basic
To-work travel time (min.) Convenience
services
To-work trips by public transport (%)
+
Police service coverage (%) safety and security,
Flood-prone area (%) Safety & Security protection against
Traffic injury per population (#) crime/from flooding

Coverage of piped water supply (%)

+
Coverage of toilet/sanitary facility (%) Health & basic services for a health
Hospitals per 1000 population (#) Wellbeing life, health care

Cultural facilities per population (#)

+ basic socio-cultural
Green area per population (ha) Amenity freedoms, parks,
Average living space per capita (m2) greeneries, etc.
+
Average annual income (US$)
assets, increased
Vehicles per population (%) Capacity capabilities
Internet connection (#)

Total Score of
Total Score of Indicators Comparison People’s Satisfaction

Source: HAIDEP Study Team

Figure 2.9 Figure 2.10

Figure 2.11 Score Chart of Hanoi City
Overall Objective Evaluation Overall Subjective Evaluation

Convenience
2

1
0
Safety&
Capability
-1 Security

-2

Health&
Amenity
Wellbeing

Objective Score Subjective Score

Source: HAIDEP Study Team

Source: HAIDEP Study Team Source: HAIDEP Study Team

.

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2.10 Expected Problems and Issues

Main Issues in Hanoi City
2.69 Defining Hanoi’s Role in the Region: Growth management policies are designed to
guide the "smart" development of urban areas. Hanoi where the population is expected to
grow by around 1.5 - 2 million over the next 15 years, is an engine for national, regional, as
well as local economies. Therefore, population increases of this scale require sound growth
management to help the city sustain growth, while maintaining livability.
2.70 Livability: Living conditions are generally better in urban than in suburban and rural
areas. Urban areas have higher levels of safety, security and urban services. Welfare facilities
(religious, medical, and educational facilities) are relatively allocated homogeneously
throughout Hanoi. Urban amenities, such as green areas and water space, decrease as the
location gets closer to the urban center, while parks and recreational areas have higher per
capita densities in the urban core and urban fringe. Industrial areas, excluding industrial parks
and estates, occupy a high proportion of land in the urban core and urban fringe. Thus it is
necessary to balance population growth and living conditions.
2.71 Competitiveness: Hanoi is not only the nation’s capital but also its political and
cultural hub, as well as the science, education, and economic center. Being the gateway to
national and international markets, it has inherent competitive advantages. The area has the
biggest industrial center and attracts most FDIs in northern Vietnam. Over 80% of its GRDP
comes from the industry and construction sectors. In addition, it is an attractive city both to
tourists and residents due to the preservation of its beautiful and cultural landscape, the stable
political situation, and low crime figures. However, Hanoi still faces some disadvantages in the
international marketplace because of: (i) the slow liberalization of SOEs and the
financial-banking system; (ii) the strong and high development levels of its international
competitors; (iii) its status as a transition economy it has to learn the rules of the game in a
highly competitive marketplace; and (iv) the high business costs and rampant corruption which
make it harder for Vietnamese businesses to compete.
2.72 Environmental Sustainability: Urban development must be implemented in a way
that natural, cultural, and social environments are preserved and sustained adequately. Hanoi
is situated in a fragile natural environment. Existing urban areas are spread in areas which are
lower than the high water levels of the Red River which are thus threatened by river flooding
and frequent inundations from heavy rainfalls. Land subsidence is also observed in many
locations. At the same time, Hanoi’s water resources as well as abundant trees and greeneries
provide a unique and attractive landscape. Moreover, Hanoi is gifted with cultural resources
and its traditional values are still very apparent in the everyday life of both urban and rural
residents. A unique characteristic of Hanoi’s environment is the wonderful blend of natural,
cultural, and social elements which enhances the image of the city. However, rapid
urbanization resulting in unplanned and uncontrolled development which is taking place in
many locations in the city is affecting the city’s environment negatively.
Future Problems
2.73 Whereas Hanoi has maintained a relatively good urban environment, it stands at very
a critical stage in urban development, because the situation could easily deteriorate under the
combined pressure of an accelerating economic growth, population increase, and motorization.
Proper measures should be implemented in a timely and coordinated manner in order for
Hanoi to avoid the unsustainable paths many Asian cities had taken and from which it is
difficult to get out.

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Figure 2.12 Expected Problems If No Proper Measures are Implemented

Traffic congestion will further worsen with car increase

Living conditions will further deteriorate.

Risks from disasters will increase. Traffic accidents will increase.

The natural environment will become Illegal settlements will further expand.
even more degraded.

Traditional values will either disappear Economic growth will slow down and
or be overshadowed by modern inequalities will widen.
aesthetics.
Source: HAIDEP Study Team

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3 NEED FOR STRATEGIC PLANNING FOR HANOI’S SUSTAINABLE DEVELOPMENT

Impact of Urbanization and Economic Growth

3.1 Since the 1990s Vietnam has been undergoing rapid urbanization brought about by
the Doi Moi policy. The current relatively low rate of urbanization (24% in 2000), when
compared to that in other countries, is expected to pick up and continue in the decades to
come. It is estimated that the current (2005) urban population of about 23 million will increase
to 47 million in 2030 and furthermore thereafter. Urbanization impacts are enormous and are
particularly significant in large urban areas such as Hanoi and HCMC.
3.2 Vietnam’s urbanization is associated with a strong economic growth as a result of
vigorous industrialization and foreign trade. With further industrialization as a key national
policy, the impending accession of Vietnam to the World Trade Organization (WTO), and the
overall growth of the Asian region, urbanization in the country is expected to further accelerate
along the path many industrialized Asian countries have taken (see Figure 3.1). In Vietnam the
impacts of urbanization are extensive and include both positive and negative effects. For
example, as people’s incomes increase so does the ownership of cars and motorcycles,
resulting in diverse service industries and changes in the people’s lifestyles. Access to
information improves, employment opportunities increase, and the overall quality of life of the
people improves. On the other hand, rapid urbanization puts huge pressure on existing
infrastructure and people’s lifestyles as traffic congestion worsens, prime agricultural lands are
encroached upon, the environment degrades, living conditions and deteriorates, among others.
The key then is to find an effective way of maximizing the benefits of urbanization while
minimizing its negative consequences.
Figure 3.1 Urbanization Trends in Asian Countries

80
Urbanization
Korea Japan Country Rate (%)
Urban Population Ratio (%)

2000 2030
60
Philippines Vietnam 24.3 43.2

Malaysia China 35.8 60.5

Vietnam, 2020
40 Indonesia Indonesia 42.0 67.7

Philippines 58.5 76.1

China
Thailand 31.1 47.0
20 Thailand
Vietnam Cambodia 16.9 36.9
Cambodia
Malaysia 61.8 77.6
10 100 1000 10000 100000
0 Korea 79.6 86.2

Japan 65.2 73.1

Note: Worked out by the HAIDEP Study Team. Source: UN 2005.

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Need for an Improved Approach to Urban Planning and Development

3.3 The changes in the urban environment in Hanoi have occurred rapidly and drastically.
Inflow of population from rural areas and other cities has been more than expected, probably
due to the wider employment opportunities and higher education, among other things, offered
in the capital city. Society’s increased demand for services and products has been remarkable
not only in quantity and quality, but also in its pace. Oftentimes supply does not match the
demand. This disparity can be found in many aspects of urban life such as economic
development and quality of life, transportation, urban water and sanitation, housing and living
conditions, environment, urban landscape, and others.
3.4 Since cities operate under a complex system wherein the socio-economic and physical
components are closely interrelated, gaps in one sector has repercussions on another, making
it nearly impossible to isolate one problem from another. For example, reducing traffic
congestion cannot be achieved merely by constructing more roads and urban mass rapid
transit (UMRT) systems, or by controlling the use of cars and motorcycles, or by enforcing
traffic control. These individual solutions work by integrating them in a strategic manner. Again,
to cite an example, the construction of roads does not only serve the demands of the
transportation sector; it also fulfills the important task of providing more effective guide to
urban development as well as to housing and land acquisition. Without good access, housing
and new town developments will not be appreciated by the target market. It is important to note
here though that road-based land use and urban development are less ideal than those based
on UMRTs or public transportation. The reason being the former forms linear developments,
while the latter creates a more compact urban area where services can be better provided.
HAIDEP Approach
3.5 Rapidly growing cities like Hanoi suffer from many problems, ie traffic congestion,
traffic accidents, flooding, lack of affordable land and housing, air and water pollution,
inadequate recreation space, diminishing traditional culture, etc. As they are always
interrelated, it is difficult to identify the fundamental causes of such problems. Hence to
analyze the existing situation, project the future accurately, and formulate the most effective
solutions, HAIDEP adopted an approach that is:
(1) Factual: Information on the existing conditions were collected through comprehensive
socio-economic surveys, GIS mapping using the latest satellite images, existing
documents, and extensive interviews with various organizations and individuals.
(2) Participatory: HAIDEP listened to the people’s voice through surveys and consultations
and organized exhibition for feedback to the people.
(3) Scientific: Collected information was analyzed using various computer models, software,
and planning tools.
(4) Comprehensive: Since urban issues and problems are always interrelated, plans and
strategies were formulated by considering all four HAIDEP subsectors.
3.6 The data collection methods and participatory measures adopted by HAIDEP are as
follows:
(1) Household Interview Survey (HIS): In the beginning of the HAIDEP Study, around
January to March 2005, a total of 20,000 households and their members were interviewed
using a comprehensive questionnaire on their socio-economic characteristics and
opinions on existing urban services as well as future development orientations.

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(2) Other Surveys: More than 20 different types of surveys were conducted to collect
updated information on traffic conditions, public transportation services, housing
conditions, environmental situation, water quality of lakes, resettlement, and others.
(3) Workshops/Meetings/Interviews: Through workshops, meetings, and interviews,
information on various urban problems and possible solutions to them were gathered.
Figure 3.2 HAIDEP Approach to Comprehensive Planning
and Integrated / Coordinated Development

◄ Integration / Coordination ► ◄ Main Components of Master Plan ►

• Socio-economic • Vision & Goals

• Land Use / Environment • General Plan
• Spatial / Physical • Policies & Strategies
• Indicators

• Urban Development
◄ Inputs ►
• Transportation
• Infrastructure (Water, • Participation
Sanitation, Etc.) • Database
• Housing, Others • Planning Tools

• International / Regional • HAIDEP Geographic Data

• Provincial Viewing System
• City • Urban Karte
• Local (District) • JICA STRADA (transport
• Urban-Rural demand analysis system)

3.7 The Master Plan was formulated in coordination with existing regional plans including
the Northern Focal Economic Zone plan, Red River delta plan, and the Hanoi metropolitan
plan, as well as urban plans for Hanoi such as the socio-economic development plans and the
1998 Master Plan (see Figure 3.3).
Figure 3.3 Process of Formulating the Master Plan
REGIONAL PLAN HANOI URBAN PLAN

NFEZ HMA RRD SEDP 1998 MP

Socio-economic
Framework

Proposed Draft Proposed Draft

Regional Plan General Plan
(mainly for transport)

Subsector Plans
MOT’s Transport Urban Water & Living
Master Plan Urban
Trans- Sanitat- Condit-
Devt.
portation ion ions
Source: HAIDEP Study Team.
Note: NFEZ: Northern Focal Economic Zone, HMA: Hanoi Metropolitan Area, RRD: Red River Delta.
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Box 3.1 Brief Description of HAIDEP Planning Information System

HAIDEP has collected and developed a wide range of data and information through conduct of
various kinds of surveys, particularly Household Interview Survey. It includes basic socio-economic
infomration (past, present and future), land-use, environmental conditions, land conditions, traffic
demand, avaiblaibility of urban services, housing conditions and people’s opinion on living conditions
etc.
Those data and information were compiled in different databse ystem, such as HIS dataset, traffic
demand dataset for STRADA, GIS, Urban Karte, for effective use in planning as well as public
information. Each databse is briefly described below.
Urban Karte: An urban karte is a planning tool that can monitor and evaluate living conditions to aid
government policy makers and planners. It compiles data on Hanoi summarizing district and
commune profiles, as well as people’s assessment of their living conditions, based on which a
dioganosis is made. It containts, (i) Fact Sheet including district/commune profile, demographic
conditions, current land use, current facilities map, (ii) Living Conditions Assessment: objective and
subjective indicators, overall assessment, (iii) Summary Diagnosis.
STRADA: All of the restuls of traffic surveys, including person trip survey as a part of HIS were
compiled in a STRADA form as a scientific base for the transport planning. It includes the analysis of
present situations, model building for demand forecast, identification of development projects,
demand forecast and project evaluation.
GIS: Geographic information system (GIS) technology is used extensively in HAIDEP. GIS is a
decision support system that integrates maps and databases. It can handle large volumes of maps
and databse information, making it an effective and indispensable planning tool. HAIDEP also
developed Geographic Data Viewing System, which include a series of map of Hanoi and the
region. Users can easibly open the maps and fo in details just by clicking title.

Source: HAIDEP Study Team.

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4 VISION, OBJECTIVES, AND BASIC STRATEGIES

Vision and Goals
4.1 The vision and goals for Hanoi are interlinked with the fact that it is the nation’s capital
and, as such, it should be in the forefront of Vietnam’s march toward future growth and the
anchor for its identity as a proud and robust nation. This is rightly stated in the vision for Hanoi
in Order No. 1/2001/L-CTN which reads:

Hanoi must be built as a modern and thriving capital city, symbolizing the whole country
and functioning as a national and regional center for policy, culture, science, technology,
education, economy, and international trade.
4.2 It was widely agreed upon among leaders, experts and citizens that Hanoi’ identity can
be described as a fusion of nature and culture which has been nurtured through Hanoi’s long
history, with water, greenery, and culture forming the foundation for spatial development. The
goals for sustainable development include: (i) strengthening cultural identity of Hanoi, (ii)
developing a competitive urban economy, (iii) realizing favorable living conditions, (iv) ensuring
environmental sustainability, and (v) strengthening urban management capacity.
Objectives and Target Indicators
4.3 The goals for Hanoi’s urban development are further elaborated in Hanoi’s
Socio-economic Development Plan for 2006-2010 with a set of indicators and more specific
objectives in main subsectors, wherein 2020 indicators were worked out based on various
plans and policy papers (see Table 4.2).
4.4 Ten subsectors and related areas considered as important components in urban
development were selected, and their main objectives were defined (see Table 4.1).
Table 4.1 Objectives of Selected Subsectors
Subsector Main Objective
A. Regional • Promote high and balanced growth
Development • Alleviate poverty and promote environmental sustainability
• Enhance regional governance
B. Urban Growth • Promote integration / coordination among cities / urban areas in Hanoi metropolitan area
Management • Promote organized expansion of urban areas
• Promote competitive and livable urban areas
C. Socio-economic • Achieve sustainable, high economic growth through knowledge-based industries
Development • Reduce inequalities and enhance quality of life of the people including the poor
D. Urban • Promote development of public transportation-based urban area and society
Transportation • Ensure equitable and safe mobility and accessibility for all
• Ensure efficient/effective transportation between Hanoi and the rest of region
E. Urban Water and • Ensure the people’s safety and healthiness
Sanitation • Promote sustainable use of water resources
• Enhance the city’s image by improving water environment and sanitation conditions
F. Housing and • Provide affordable housing especially the poor
Living Conditions • Provide institutional and fiscal support to upgrade old housing stocks
• Ensure smooth provision of land for housing
G. Environmental • Ensure environmental sustainability and effective land-use for Hanoi as well as its metropolitan area
Management • Ensure people’s healthiness and safety by reducing pollution and improving disaster preparedness
H. Urban Design and • Enhance the image and identity of Hanoi appealing to the citizens and international society
Landscape • Ensure traditional tangible and intangible cultural values are preserved and enhanced
I. Special Areas • Realize the concept of “water-greenery-culture” to enhance the charm and identity of Hanoi by
regenerating historic areas
• Promote opportunities for new urban economic and social development toward the next millennium
• Establish effective mechanism for sustainable development with the participation of city stakeholders
J. Implementation • Ensure participation in urban development projects and opportunities
and Management • Improve efficiency of urban administrative functions

Source: HAIDEP Study Team

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Table 4.2 Objectives and Target Indicators of Hanoi SEDP1)

Area Objective and Target Indicator

Economy • to ensure sustainable and high economic growth.
• to improve development efficiency and competitiveness to strengthen the capital’s economic position in the
region and the whole country.
• to strengthen, develop, and improve economic structure toward modernization and industrialization.
Indicator 2010 2020
・ GRDP growth rate (%/year) 11.5 11.0
・ Per Capita GRDP (US$) 2,400 6,000
・ Economic Sector (1/2/3) (%) 1.5/ 41.7/ 56.8 1.0 / 45.0 / 54.0
・ FDI growth rate (%/year) 15 -
・ Employment structure (1/2/3) (%) 15 /31/ 54 7 / 35 / 58
Social • to develop education, training, science, and technology to higher standards and create the foundation of a
Environment knowledge-based economy.
• to provide more job opportunities and reduce social ills and unemployment in urban and rural areas.
• to strengthen social services for the poor/other beneficiaries, and reduce poverty efficiently.
Indicator 2010 2020
・ High-school enrolment rate (%) > 90 100
・ Training employment rate (%) 60 70
・ Unemployment rate (%) < 5.5 < 5.0
・ New jobs per year (000 jobs/year) –100 90-95
・ Poverty rate (%) <4 <1
Living • to improve the quality of people’s lives.
Conditions • to reduce social ills and unemployment in both urban and rural areas.
• to strengthen social services for the poor/other beneficiaries.
Indicator 2010 2020
・ Average housing area (m2/capita) 10 15
・ Water consumption (liter/day) 140-160 170-180
15 (urban area)
・ Average greenery area (m2/capita) 7 31 (total)
Infrastructure • to strengthen urban management capacity for efficient provision of infrastructure services.
Services • to promote improvement/rebuilding of existing urban areas for a comprehensive improvement of living
conditions and enhancement of competitiveness of the areas.
• to strengthen disaster preparedness and improve sanitary conditions to promote a more effective
socio-economic and environmental development.
Indicator 2010 2020
・ Public transportation share in the city (%) 35 50
・ Coverage of water supply (%) - 99
・ Drainage service area (system able to respond to
rainfall volume of 310mm/2 days) (ha) - 45,291
・ Coverage of sewage (%) - 49
・ Service population for solid waste collection and 100 (UDA)
disposal (%) 100 (UDA) 65 (UCA)
・ Lighting system coverage of urban alleys (%) 100 -
1) Hanoi Socio-economic Development Plan in 2006-2010.

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5 GENERAL PLAN FORMULATION

Considerations in Formulating the General Plan
5.1 The primary objective of spatial planning is to provide the orientation for the overall use of
the land and the growth of urban areas. The plan translates the socio-economic development
orientations of an area, including its vision and development strategies, into how urban areas are
to be developed spatially. Spatial structures determine the direction or pattern of physical growth
of an area, thereby providing the foundation for its sustainable development in terms of good
living conditions, competitive economic development and employment, and well-preserved
natural and cultural environment (see Figure 5.1).
5.2 Key planning principles considered in spatial development planning includes physical and
functional integration, clear orientation for conservation and development, consideration of
current market-driven development trends, and effective policy intervention.
5.3 Integration is the key concept in the HAIDEP Study as a whole and in spatial planning in
particular to generate the parallel effects of robust economic growth and reduced poverty levels.
Main areas where integration is needed are as follows:
(1) Integration of Socio-economic Development Orientation for Hanoi with Spatial
Development Plan: In order to provide society with adequate infrastructure and conducive
environment, future population and policies on industry/employment structure and living
conditions must be properly incorporated into the spatial development plan.
(2) Compliance with Orientations of Regional Plans: Spatial development strategy at the
regional level must be properly incorporated. The respective development orientations of the
HMA plan currently being formulated by MOC’s NIURP and the RRD and NFEZ plans are
given particular consideration in HAIDEP. The orientations of these regional plans that relate
to Hanoi’s spatial development are: (i) Hanoi’s role as the region’s center; (ii) transportation
corridors; (iii) balanced regional development; and (iv) integrated development of urban areas
in adjoining provinces.
(3) Orientation of 1998 Master Plan: The 1998 Master Plan provides the basic urban
development orientation for 2020, which are: (i) gradually reduce the density in the urban
core; (ii) increase the future population in urban fringe particularly along RR3, the northern
parts of the Red River, and satellite cities and urban chains in adjoining provinces; and (iii)
develop four ring roads and strengthen the road network including bridges connecting both
sides of the Red River. In addition, Hanoi has set benchmarks for selected areas such as
overall population density (100 m2/person).
(4) International, Regional, and Metropolitan Integration: In order to ensure the future growth
of Hanoi is sustainable and balanced with that of the region and that the region’s provinces
can benefit from the growth of Hanoi, spatial integration at international and interprovincial
levels must be pursued through strategic multimodal transportation network development and
balanced development of regional urban centers. Regional integration at the metropolitan
level, i.e. areas within 30-50 km radius of Hanoi where satellite cities and urban areas are
being developed and planned, must also be duly considered. Interjurisdictional physical and
functional integration will directly affect the growth pattern and socio-economic situation of the
areas including Hanoi.
(5) Integration of Hanoi City’s Urban Areas and Those in Adjacent Provinces: The
expansion of urban areas is expected to make further progress along major transportation

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corridors toward all directions in adjoining provinces. Thus integration with urban areas
immediately adjacent to Hanoi must also be achieved. Areas to be included are Ha Dong,
Hoai Duc, and Tram Troi in Ha Tay Province; Me Linh and Phuc Yen in Vinh Phuc Province;
Tu Son in Bac Ninh Province; and Van Giang in Hung Yen Province.
(6) Integration of Urban Areas in Hanoi City: Urban areas of Hanoi are expected to expand
rapidly toward the outer areas. In order for Hanoi City to function efficiently, urban areas with
different characteristics must be adequately integrated. Main areas for integration are: (i)
areas north of the Red River with large, favorable land development conditions and existing
urban areas in the south of the Red River; (ii) growing urban fringe and existing city center;
and (iii) growing urban areas along major transportation corridors and existing urban centers.
(7) Integration of Urban and Transportation Infrastructure Development: Infrastructure is a
determining factor in ensuring that the desired urban development is achieved. Therefore, its
provision must be undertaken in a more integrated manner with urban development.
(8) Establishment of Effective Urban-Rural Linkages: In order to support the development
and growth of rural areas, the urban plan should include rural areas in planning, incorporating
possible measures that will integrate urban and rural areas and strengthen linkages between
the two, such as the promotion of urban agriculture, eco-tourism, and village tourism, as well
as the development of support infrastructure.
Figure 5.1 Spatial Development Planning Framework

Socio-economic Development Framework and

Orientations (HPC’s SEDP & 1998 Master Plan)

Environmental
Considerations
HMA Development
Orientation
Current
Development
Trends
RRD and NFEZ
Development
Orientation Development
Suitability of
Land

Proposed Growth
Strategies and Spatial
Development Directions

Infrastructure Devt.
Existing Urban Devt. Projects
Strategy (Transportation, Land-use Planning
Water, Etc.)

General Plan

Source: HAIDEP Study Team.

Key Strategies for Spatial Development

5.4 In order to realize a future urban development that hews closely to the vision and goals
stated in the previous chapter, seven basic strategies were formulated in HAIDEP, and these were
agreed upon by government leaders, experts, and the people. Briefly these are as follows:

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Strategy 1: Establish a spatial backbone comprising “water,” “greeneries,” and “culture” to

ensure environmental sustainability and enhance the identity of Hanoi.

5.5 Hanoi’s uniqueness and identity can be found in its rich natural and cultural environments
at a magnificent scale. The Red River with its tributaries, lakes and ponds of different sizes dotting
the urban land, well-maintained old trees lining the city’s streets, parks and green spaces
breaking the monotony of buildings. All these form Hanoi’s basic physical setting. The Ancient
Quarter and the French Quarter likewise provide an incomparable backdrop for living out the
country’s traditions and culture. The identity of Hanoi is thus derived from this unique blend of
water spaces, greeneries, and culture which few cities can match. Therefore, it is proposed that
such qualities be more explicitly incorporated into the city plan to ensure their sustainability for the
benefit of future generations.

Strategy 2: Develop public transportation-oriented urban areas to ensure mobility of the

people and to promote an environment-friendly society.

5.6 For large urban areas, such as Hanoi, the only way to effectively meet transportation
demand is to provide the city with a high-quality public transportation system that is integrated
with urban development. The core network will be composed of urban rail, metro, and bus rapid
transit (BRT). Secondary and feeder services will be provided by buses with different sizes and
types of service. While these require huge investments as well as operation and management
capacities over a long period of time, the experiences of successful cities clearly indicate that
mass transit networks serve as the backbone of the urban structure and should be integrated with
urban land use and development.

Strategy 3: Upgrade and revitalize existing built-up areas both in city center and fringe
areas, including the Ancient Quarter and the French Quarter, to improve living conditions,
preserve and enhance cultural values, and promote economic development.

5.7 The Ancient and the French quarters have functioned as the center of the urban system
for so long. With their prime location, their aesthetic values, and the economic opportunities they
offer, pressure from new developments as well as redevelopment, has become enormous. At
present, it seems there are hardly effective measures to control or guide the developments in a
way that the city envisions. Hence a pilot project on the redevelopment of a block in the Ancient
Quarter was undertaken to work out an effective mechanism that will combine the aspects of
cultural preservation, economic development, and social strengthening in the pursuit of
sustainable development of the area.
5.8 In the urban fringe, adequate infrastructures must be provided well ahead of the progress
of suburbanization and the subsequent unplanned developments. Many cities in Japan could
show a way through this problem: they adopted the key effective intervention of reorganizing the
urban structure by adjusting lands and amending the rights of stakeholders for the common good,
thereby securing fund sources for infrastructure development.

Strategy 4: Develop modern and competitive new urban centers to attract diversified
quality investments that will generate employment opportunities, and improve the
people’s accessibility to needed services.

5.9 For a large city to be competitive and meet diverse socio-economic and cultural needs,
modern and new urban centers for commercial and business purposes must be provided. Many
large cities in Asia have developed or are developing these types of new CBDs. HCMC, for one,
has started to develop the Thu Thiem New Town. Similar large-scale developments are taking

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place along RR3 in Hanoi. With a modification of the planning concept from residential to more
business and commercial, these areas have a good chance of becoming multi-functional urban
centers. Since this type of development is attractive to the private sector, the role of the
government must be limited to that of facilitator and regulator, ensuring that development benefits
are equitably shared among stakeholders---the people, developers, and the government---and
that public interest expressed in the city plan is always protected.

Strategy 5: Develop efficient infrastructure and services to ensure convenient and

competitive socio-economic activities and affordable services for all including the poor.

5.10 Infrastructure is of paramount importance to the efficiency and quality of urban activities
and shows how public funds are spent. An inferior and inadequate network of roads worsen traffic
congestion, increase vehicle operating costs, and wastes the time of road users. Weak traffic
management decreases the efficiency of facilities and traffic safety levels. Poor performance of
infrastructure services, including transportation, power, water supply, drainage, sanitation, etc.,
lowers the quality of services and adds to the costs of services. All these inefficiencies become a
burden on city authorities as well as on the people.

Strategy 6: Prepare effective disaster prevention measures to protect against natural and
man-induced disasters, and environmental degradation.

5.11 Hanoi is vulnerable to various hazards such as flooding, inundation, land subsidence,
river erosion, and earthquakes. The city has in fact already suffered from a number of such
disasters. Densely inhabited urban areas with limited or narrow roads and no open spaces are at
risk from fires that can raze large areas in an instant. Emergency response and relief activities
would also be greatly hampered. Thus existing urban areas must be upgraded, while future
development must avoid such pitfalls to guarantee the protection of life and property.

Strategy 7: Strengthen institutions and public participation for effective urban management
and capacity building, as well as efficient and effective delivery of services.

5.12 Managing large urban areas is complex that no solution to a problem can be had from one
discipline alone; solutions have to wide-ranging, integrated, and location-specific which can sorely
test a city’s technical and financial capacities. On the other hand, a city that is properly managed
can bring immense benefits that can be enjoyed by all stakeholders. To ensure that the latter
scenario happens in Hanoi, the following must be carefully looked into:
(i) Development of alternative implementation methods to carry out urban development (eg land
readjustment, urban renewal, etc.).
(ii) Encouragement of public-private partnerships.
(iii) Involvement of stakeholders in the development process.
(iv) Provision of open and business-friendly environment.
(v) Enhancement of planning and administrative capacities for urban management.
Proposed General Plan
5.13 The proposed General Plan was prepared based on the vision to be achieved for Hanoi
and the corresponding spatial development strategies based on the 1998 Master Plan philosophy
and orientation, as well as on the comprehensive studies on Hanoi’s socio-economic,
environmental, and physical conditions. In the process, various factors were considered and
extensive discussions were held in the Working Group and Steering Committee meetings. The
people and other experts were also consulted through the HAIDEP exhibition and workshops.

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Some of the main features of the General Plan are as follows:

(1) Establish a “Water-Greenery-Culture” Zone and Network: The Red River space and the
Thang Long-Co Loa zone will form the backbone of the city, and they will be integrated with
the greenery network linking lakes, rivers, parks, and cultural heritage sites scattered all over
the city, as well as with the proposed regional green belts in surrounding areas of Hanoi that
will fulfill the function for disaster prevention and environmental management. The
“water-greenery-culture” zone and network will provide a foundation of urban development.
The overall planning criteria are observed in the General Plan.1
(2) Designate Thang Long-Co Loa as Core of Hanoi’s Backbone: This area will be the heart
of the “water- greenery-culture” network described above. Therefore, the development in this
special area must be effectively controlled and limited to low-density, high-value types which
comply with the envisioned image for the area.
(3) Strengthen Urban Structure to Effectively Respond to Enormous Future Urban
Development Needs: Hanoi must be prepared to accommodate about 5 million people in its
urban areas and those in adjoining provinces. In order to manage this enormous impact of
urban development, the following measures are incorporated in the General Plan:
(a) Strategic Transportation Network: With the development of the UMRT network and a
well-configured main road network in Hanoi, its integration with the urban areas in
adjoining provinces will be strengthened. With Ring Road 4 and the ring rail, inter-
provincial traffic will be segregated from urban traffic, thereby avoiding through traffic in
the city center, while providing effective interface between the two.
(b) Clustered Urban Areas: Urban areas will be classified into five clusters, namely central,
east, south, west, and north. Each cluster will have a corresponding characteristic that will
distinguish them from one other.
(c) Shift to Polycentric Urban Structure: The basic urban structure will be transformed from a
monocentric to a polycentric pattern through the strategic and integrated development of
the main transportation system, particularly including the UMRT network, and competitive
new urban centers. These centers will provide complex functions including commercial,
business, residential, medical, and other public services, providing investors with
attractive investment opportunities and the communities with employment and improved
services.
(4) Develop Strategic Locations of Industries: Hanoi’s main industrial function will and must
shift to services and knowledge-based industries from conventional manufacturing types.
Since FDI-based industries often require smooth connection with international gateways, it is
proposed that the periphery of NH18 and NH5 be designated as industrial areas. Industries
currently located in the urban centers should be encouraged to move to these areas.
(5) Attend to Rural Area Development: Rural areas must not be segregated from urban
planning and development. Since rural areas in Hanoi also receive the brunt of urbanization,
they must be integrated with urban areas by improving their existing infrastructure and
services and strengthening their physical and information linkages with the urban areas. For
example, a shift to urban agriculture and the provision of improved access to markets are
considered effective measures.

1
Average density for the city is 100 m2 per person, 26 m2 per person for residential area, and 18 m2 per person for
green space.

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5.14 The General Plan proposed in HAIDEP differs from the existing Master Plan in terms of
institutional arrangement, as explained as follows:
(i) In HAIDEP a two-tier planning system is proposed. The General Plan indicates the overall
spatial development direction, determining locations of key infrastructure 2 and zoning to
induce the proper use of lands. Details3 are specified in District Plans to guide specific
developments.
(ii) In HAIDEP urban development activities to be undertaken by various entities, including
individuals, are to be managed by urban planning institutions that will provide the rules and
legal basis. In the process the government will act not only as a provider but also as a
facilitator of urban development.
(iii) In order to further support the smooth implementation of the General Plan, various urban
development methods and mechanism are also proposed in HAIDEP.
Figure 5.2 Hanoi Endowed with “Water-Greenery-Culture” Resources

Hanoi, circa 1960 (left) and in 2005 (right).

The Opera House and Trang Tien Street, circa 1930 (left) and in 2005 (right).

Thien Quang Lake, 2005.

Note: Recent pictures of Hanoi were taken by the HAIDEP Study Team.
2
Alignments of roads and areas for other public facilities are specifically delineated in the legally binding District Plans.
3
Including height controls, floor area ratios, building coverage ratios, etc.

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Figure 5.3 Proposed General Plan

Source: HAIDEP Study Team.

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Figure 5.4 Basic Structure of the Proposed General Plan

Area
CL: Co Loa
TL: Thang Long
AQ: Ancient Quarter
FQ: French Quarter

Source: HAIDEP Study Team.

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6 HANOI’S ROLE IN THE REGION

Main Issues
6.1 Hanoi’s urban development must be an integral part of the national urban policy and
regional development framework. This requires existing policies and plans relating to Hanoi’s
urban development to be reviewed in order to come up with appropriate recommendations on
the development direction Hanoi should take. However, an effective coordination mechanism
for regional planning and development in Vietnam is yet to be established. Existing regional
plans, such as the Red River delta plan1, the Northern Focal Economic Zone plan2, and the
Hanoi metropolitan area plan 3 , as well as the regional transport master plan 4 provide
orientations for different target areas and scope.
6.2 The main issues in regional development are summarized as follows:
(1) Widening Inequalities: Most provinces, besides the provinces of Hanoi and Hai Phong in
particular, are still at a low development level, and their focus is primarily still on agriculture.
The gaps in socioeconomic development as well as in the gross domestic product (GDP)
shares among provinces are still high. The regional imbalance has resulted in the
underutilization of the region’s potential and competitive advantages.
(2) Land Use: As urbanization makes progress, agricultural land has become marginalized in
favor of industrial zones and other development uses. This is particularly seen in the more
urbanized areas of Hanoi and Hai Phong. Meanwhile, the land fund is often not effectively
used to develop infrastructure, and compensations for land clearance is still low.
(3) Environment: High urbanization and, consequently, the increasing number of in-migrants
amplify urban management problems. Industrial and traffic pollution has become severe in
many areas. Air quality and water pollution in urban areas and industrial zones have
worsened. Most urban areas have insufficient and ineffective sewerage and drainage
systems, causing health problems and environmental degradation. Flooding and water
shortages are also the other effects of urbanization.
(4) Economy: Despite structural changes in the economy, Hanoi region’s competitiveness
has been relatively slow in improving. It still has low investment attraction compared with
HCMC. Probable reasons for this are poor technology and low labor skills, unfavorable
investment environment, long procedures for investing, and high production costs.
(5) Transportation and Infrastructure: Road density in the Red River delta is low. The
development of the road network is not coherent with rapid urbanization growth, with a
number of sections unevenly distributed and in poor condition, particularly in rural areas.
Infrastructure development has not followed the increasing demand caused by the fast
development and urbanization rate. The provision of electricity, clean water, and sanitation
is improving albeit at a medium pace, with many areas still not properly connected.
(6) Planning: Hanoi experiences problems as a result of the lack of coordinated planning and
regional integration, which is rooted in the lack of, and unreliable, information base, as well
as on sectoral instead of comprehensive planning and a slow shift to market economy.

1
Covers nine provinces with an area of 12,632km2 and a population of 15.4 million. Prepared by MPI.
2
Covers eight provinces with an area of 15,287km2 and a population of 13.2 million. Prepared by MPI.
3
Covers Hanoi City and eight surrounding provinces with an area of 13,379km2 and a population of 12 million.
Being prepared by MOC.
4
Covers the entire northern region. Prepared by MOT.

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National Urban Policy: Comprehensive Poverty Reduction and Growth Strategy

6.3 The 2002 Comprehensive Poverty Reduction and Growth Strategy (CPRGS) is an
action plan for poverty reduction, translating the government’s socio-economic development
strategies and plans, as well as other sectoral development plans, into a concrete
implementation agenda. On the other hand, the national annual socio-economic development
plan brings policies and measures contained in the CPRGS into practice.
6.4 The overall objective of the Socio-economic Development Plan up to 2010 is to bring
Vietnam out of the state of underdevelopment with the following goals: improving people’s
material, cultural, and spiritual lives; transforming the country into a modern and industrialized
country by 2020; improving human resources, scientific/technological capacities, infrastructure,
the economy, defense and security; establishing institutions for a socialist-oriented market
economy; and, heightening Vietnam’s role in the international arena.
Aims of Existing Regional Plans
6.5 These plans aim to promote economic growth by developing the industrial and
services sectors, providing efficient infrastructures and a conducive investment environment
for foreign and domestic investors, reducing poverty and narrowing gaps in living standards,
and promoting environmentally sustainable development. Study areas are expected to
increase to a combined population of 27.7 million by 2020, of which 37% will be urban. GDP
will also increase by 9.7% a year and per capita GDP will be VND 25.2 million or US$ 1,600.
Poverty rates are expected to be minimal (see Table 6.1).
Table 6.1 Orientation of the HMA Plan

Sector Major Development Direction

Regional • To develop HMA with a multi-center structure, where Hanoi and its satellite cities in adjoining
Development provinces are better interconnected, and to reverse the current concentration in the core city and
put more emphasis on medium-size cities.
• To establish an institutional framework for effective management and administration.
Indicator 2005 2010 2020
Population (million) 12.05 13.2-13.5 14.5-15.0
Urban population (million) 2.8 3.9-4.2 7.9-8.5
Urbanization rate 23.2 30-32 55-63
Economy • To develop economic growth corridors, comprising the two east-west corridors (Kunming - Ha Long
and Hanoi - Hai Phong), a ring growth corridor, and two supporting corridors
• To promote an integrated industrial-agricultural development, with small industrial clusters to
generate job opportunities and diversify products of the region.
Indicator 2005 2010 2020
GRDP growth rate (%/yr) - 10.7 10.5
Structure of GRDP (pri/sec/ter) 17/ 39 / 44 11/ 46 / 43 6 / 51/ 43
Per capita GRDP (US$) 574 1,130 2,570
Employment (mil) 6.82 7.51 8.46
Social and • To establish a triangle zone of education comprising Hanoi - Hai Phong - Nam Dinh to provide
Environment human resources for the country and the region. Many universities, especially new ones, will be
relocated to outer areas such as Hoa Lac and along Bat Thang Long - Noi Bai - Soc Son, NH18,
and Pho Noi- Yen My (Hung Yen) corridors.
• To manage environment in terms of solid waste treatment plants, cemeteries, water sources, power
supply; and to regulate the river system in the region.
• To develop first-class health care centers in Hoa Lac and Hai Duong, etc., in order to share the load
of central hospitals in Hanoi.
Source: Summary of Draft Final Report of the Study on Hanoi Metropolitan Area Master Plan.

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Proposed Regional Development Orientation

6.6 In coordination with ongoing planning activities of MOC, the development direction for
the region was formulated (see Table 6.2), comprising the following strategies:
(1) Regional Coordination and Integration: Provinces in the northern region are not
effectively connected due to inadequate infrastructure and the presence of institutional
barriers which have discouraged interprovincial transportation in the past. Since most of
the provinces rely on international trade through limited gateways, such as Haiphong,
Quang Ninh, and other border provinces, and must provide competitive and attractive
investment environment, they must be integrated to synergize their strength and
resources as well as contribute in lessening interprovincial inequality.
(2) Establishment and Development of Growth Corridors: To strengthen regional
integration and coordination at the regional and international levels, a corridor approach is
considered appropriate. Seven corridors, comprising six radial corridors to/from Hanoi and
a coastal corridor, were identified for which infrastructure improvement and incentives for
development are provided.
(3) Strategic Transportation System Development and Market Integration: The northern
region’s economic growth owes a lot to foreign investments and trade. Hence, the
Hanoi-Haiphong/Ha Long corridor must be strengthened by: (i) expanding transportation
capacity of ports, roads, and other modes; (ii) reducing travel time; and (iii) improving
logistics services. The provision of a strategic transportation system along the corridor will
promote the integration of industries with the international market.
(4) Urban Development and Strengthening of Urban-Rural Linkages: Along the corridors,
urban centers must be developed to lessen the load on Hanoi and promote balanced
regional development. The development of access roads to link rural areas with urban
growth centers is expected to contribute to the growth of rural areas.
(5) Promotion of Effective Land Use and Environmental Management and Promotion of
Social and Cultural Integration and Development: Land use in the region must be
clearly classified by defining lands for preservation and development to ensure
environmental sustainability and to promote socio-cultural growth wherein developments
are concentrated along the corridors.
(6) Strengthening of Regional Development Administration Capacities: The region’s
future growth and sustainable development can be achieved by addressing various issues
from the perspective of an integrated region. For this, the management capacities of
provinces must be strengthened and a coordination mechanism among them must be
established.
Development Strategies and Priority Projects
6.7 On the basis of the above, development strategies and actions were formulated as
shown in Table 6.2. The priority projects are identified as follows:
(i) Development of globally competitive strategic growth corridors
(ii) Cross-border regional development
(iii) Establishment of coordinated regional investment promotion program and one-stop center
(iv) Establishment of regional planning database and information system
(v) Establishment of regional coordinating councils among provinces

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Figure 6.1 Development of Growth Corridors

Urban population International Gateway

Port Major Regional Corridor
Airport

Source: HAIDEP Study Team.

Table 6.2 Proposed Regional Development Strategies and Actions
Strategy Action Monitoring Indicator
A1 Update regional A11 Complete coordinated and integrated/ coordinated regional • Understanding and consensus
development development plans among stakeholders on
strategies A12 Establish practical implementation mechanism including wider plans/strategies
practices of PPP and PFI schemes • Project progress
A13 Identify and implement coordinated/integrated regional
development projects
A2 Develop growth A21 Develop high-quality transportation/logistics corridor along Vin • Project progress
corridor with global Phuc – Hanoi – Hai Phong / Quang Ninh • Amount of investments made in
competitiveness A22 Develop urban areas and attractive industrial zones provided the corridor
with competitive services • Satisfaction of investors
A23 Establish conducive investment environment to encourage FDIs • Trade volume/value share of the
corridor
A3 Strengthen poverty A31 Map and identify poverty in the region • Poverty indicators
reduction strategies A32 Provide effective menus and programs for identified poverty • No. of poverty reduction programs
and expand issues carried out
program A33 Establish coordinated mechanism for effective implementation • Budget/expenditure for poverty
of poverty reduction program reduction component
A4 Establish workable A41 Strengthen coordination on regional development among • Progress of institutional
regional provincial governments arrangements
coordination A42 Establish regional development coordinating council comprising • Number / Frequency of meetings
mechanism provincial government representatives
A43 Expand coordination with donors through Urban Forum
A5 Strengthen A51 Establish common information database to aid regional planning • Progress of system design and
capacities of and development operation
provincial A52 Establish permanent training system for capacity building of • Number of officials trained
governments provincial officers under the central government • Number of plans prepared
A53 Strengthen planning departments of provincial governments
Source: HAIDEP Study Team

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7 FUTURE POPULATION AND URBAN GROWTH MANAGEMENT

Main Issue
7.1 Population growth in Hanoi is expected to continue long into the future. Hence, the city
must be prepared to accommodate the increase in and distribution of the population in the
process of development to ensure the city’s sustainable development.
HAIDEP-proposed Population Framework
7.2 Comparing the population framework in the 1998 Master Plan, the HMA plan, and
other supplementary analyses, it is the view of the HAIDEP Study Team that Hanoi’s total
population, including its adjacent integrated urban areas, will be 5.1 million. Since, a sharp
population increase in the integrated adjacent urban areas, as assumed in the HMA plan, may
not occur, unless good infrastructures, especially transportation facilities, to link them with
Hanoi are provided, it was assumed that the 2020 population of the integrated adjacent urban
areas could be lesser, at 600,000, and that of Hanoi at 4.5 million (see Table 7.1).
7.3 While the population of Hanoi was estimated to be 4.5 million by 2020, it is very much
likely that the population will further increase beyond 2020, because the country’s urbanization
rate by 2020 is expected to remain low. Moreover, industrialization and economic growth are
expected to become more robust. If it is assumed that the population would increase relatively
slowly at 2% per year after 2020, Hanoi’s population would reach 5.9 million in 2030.
Population Distribution
7.4 Based on the future growth scenario and development directions, the future population
distribution was estimated. The urban population of 4.5 million would be distributed in urban
development promotion areas (UDAs) within the urban growth boundaries of Hanoi City and
adjacent urban areas. Rural population would be distributed outside the growth boundary
based on the current distribution except for the area outside of the dyke1 in the urban core
(see Figure 7.1).
7.5 Accordingly, urban population in the urban core will decrease to 0.75 million or by 0.8
times by 2020. With a population density of 250 persons/ha, living conditions in the urban core
is expected to improve. In the urban fringe, the population will continue to increase. In Thanh
Xuan and Cau Giay districts, the population density is expected to reach 200 and 180
persons/ha, respectively, and then population increase will slow down. On the other hand, the
population of Long Bien and Hoang Mai districts, owing to their large development potentials,
will increase at an annual growth rate of more than 4.5%.
7.6 In suburban areas, Tu Liem will absorb a significant volume of the population, about
0.63 million, while urbanization in Thanh Tri District outside the urban growth boundary will be
restricted. In Dong Anh District, the population will increase at a growth rate of 6.6% much
higher than the current one of 1.4% for the 1999-2003 period, as major infrastructures,
especially key railway sections and primary roads, are planned for development.
7.7 In adjacent urban areas, the population was estimated based on the HMA forecast and
current trend. There are five existing urban areas in Ha Tay, Vinh Phuc, Bac Ninh, and Hung
Yen provinces in 2003, which are directly connected with Hanoi City. Moreover, there will be
two urban areas to be developed by 2020, namely An Khanh in Ha Tay Province and Me Linh
in Vinh Phuc Province. As a result, there will be seven adjacent urban areas to Hanoi.

1
The area between the dyke and the Red River is designated as outside of the UDA. It was assumed that 30% of
this area’s population would be relocated by 2020, particularly those living in parts vulnerable to flooding.

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Table 7.1 Future (2020) Population of Hanoi and Integrated Areas

1998 MP HMA Plan Trend Proposed
Urban 2,8002) 3,7004) 4,0002) 3,9002)
3)
Hanoi Rural 1,100 600 800 600
Total 3,900 4,300 4,800 4,500
Adjacent Areas1) n.a. 800 300 600
Total (Hanoi’s Adjacent Areas) n.a. 5,100 5,100 5,100
Source: HAIDEP Study Team
1) Including Ha Dong, Tram Troi, and An Khanh in Ha Tay Province; Phuc Yen and Me Linh in Vinh Phuc Province;
Tu Son in Bac Ninh Province; and Nhu Quynh in Hung Yen Province.
2) Including Soc Son.
3) Rural population by 2020 was estimated based on the 2010 figure, which was calculated based on the total
population of Hanoi City forecasted in the SEDP 2006-2010.
4) The HMA Development Plan of MOC (2005) estimated that the population growth of Hanoi between 2003 and
2020 would be 1.9 million comprising natural growth and migration on top of the existing 1.8 million as of 2003.
Figure 7.1 Future Population in Urban Areas of Hanoi and Adjoining Provinces

Environment Conservation Area

(000)

4
7

3
1

2
3
5
8

Population Density
Cluster
000 % no/ha
(1) Central Area 860 22 225
(2) West of Red River 1670 42 119
Hanoi
City (3) East of Red River 650 16 72
(4) North of Red River 770 20 62
Total 3950 100 100
(5) Ha Tay Province 300 - 215
Adjacent (6) Vinh Phuc Province 240 - 59
Urban (7) Bac Ninh Province 30 - 30
Areas (8) Hung Yen Province 30 - 23
Total 600 - 166
1) UDA = Urban development promotion area.
Source: HAIDEP Study Team

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An Approach to Growth Management

7.8 The growth management strategies adopted by HAIDEP are as follows:
(1) Introduction of Urban Growth Boundary: In many cities, a system of urban growth
boundary (UGB) is practiced to stop the sprawl of urban areas, protect conservation areas
(eg green spaces and prime agricultural lands), and promote the development of efficient
urban areas with adequate infrastructure. With this, limited public investments can be more
effectively used to promote more efficient land use (see Figure 7.2).
(a) City Planning Boundary: Boundary within which planning must be made and
includes rural areas. For Hanoi, it may be the same as the administrative boundary,
although it is preferable that the urban areas of adjoining provinces are included.
(b) Urban Growth Boundary: Covers areas which will become urbanized within 10 - 15
years. The boundary must be reviewed, say, every 5 years to match development
needs. For Hanoi, this is similar to the currently practiced urban area boundary. Areas
within the urban growth boundary are called urbanization promotion areas where
infrastructure provision is prioritized. Appropriate institutional measures are provided
to promote planned development including land-use conversion, the adjustment of
various rights, and the facilitation of development procedures, among others.
(c) Urban Development Control Area: Areas outside the urbanization promotion areas
are called urbanization control areas. Development activities are controlled and guided
more strictly to comply with the urban master plan, although public investments will be
allotted for environmental and infrastructure improvements in rural areas and villages.
(2) Integration of Transportation and Urban Development: A transportation network,
including roads, rail, inland waterway, and air, is key to the effective integration of the
region as well as urban areas within the city and determines the basic urban structure of
an area. Hence, it should be planned in a way that it effectively and efficiently promotes
the planned urban growth. Although each mode has its own role in the hierarchy, roads are
the most crucial.
(3) Creation of Urban and Activity Centers: The urban structure is also determined by a
combination of major activity centers, such as commercial centers, industrial estates,
government center, and other special centers such as university complexes, medical
centers, high-tech parks, sports center, etc., of which modern and competitive commercial
centers and industrial estates/ zones are the most important for promoting growth and
generating employment.
Figure 7.2 Concept of Urban Growth Boundary

B C

A Administrative Boundary
Urbanization Promotion Area
Urbanization Control Area

E D

Source: HAIDEP Study Team

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Urban Growth Management Strategies

7.9 Growth management for Hanoi must be attended to both at the regional and city levels.
At the regional level, it is particularly important to structure and manage urban areas within a
30-50km range of Hanoi. Sharing of functions among Hanoi, related satellite cities, and urban
areas could lessen the excessive load on Hanoi and enhance the synergy of an integrated
metropolitan area. At the city level, the introduction of mass transit systems and integrated
urban development, including the development of new subcenters, will determine the future
urban structure and transform the urban areas served by multiple centers. The proposed
orientation to promote effective urban growth management is explained in Table 7.2.
Table 7.2 Proposed Urban Growth Management Strategies and Actions

Strategy Action Monitoring Indicator

B1 Establish metropolitan B11 Complete a coordinated and integrated metropolitan • Progress of plan
growth and development development plan for areas within 30-50 km radius preparation and
strategies for areas B12 Establish interjurisdictional coordination mechanism consensus on the plan
within 30-50km radius of B13 Develop corridors by integrating all aspects including • Establishment of
Hanoi socio-economy, land use, infrastructure, etc. organizations/institutions
B2 Establish strategies for B21 Develop concrete physical and institutional concepts • Development of plans and
mass transit-oriented of TOD (transit-oriented development) in Vietnam’s institutions
urban development context • Length of mass transit
B22 Establish a preparatory unit to promote TOD in lines
Hanoi
B23 Implement pilot projects to concretize development
mechanism
B3 Develop competitive B31 Develop concrete concept and strategies for • Understanding of strategy
subcenters subcenter development • Establishment of project
B32 Identify projects and establish specific project implementation organization
management units for project implementation • Development of subcenters
B33 Implement pilot projects to concretize development • Location of enterprises and
mechanism size of workforce
B4 Upgrade/Redevelop B41 Diagnose existing conditions, problems and • Progress of institutional
existing urban areas formulate improvement plans and strategies arrangements including
B42 Establish concrete mechanisms to upgrade existing preparation of plans/
urban areas including Ancient Quarter, French guidelines
Quarter, outside-of-dyke areas, public housing • Establishment of project
areas, urban villages, etc. implementation organization
B43 Implement pilot projects to concretize development • Beneficiaries due to
mechanism improvement/
redevelopment
Source: HAIDEP Study Team

7.10 Based on the above, the priority actions identified are as follows:
(i) Establishment of development and growth strategies for key urban corridors integrated
with UMRT
(ii) Integrated development of UMRT stations/terminals
(iii) Conservation and sustainable development of new CBD in Dong Anh
(iv) Establishment of strategies and mechanism for development and rebuilding of existing
urban areas
(v) Establishment of updated strategies and institutional arrangement for redevelopment of
outside-of-dyke areas
(vi) Redevelopment of old public housing areas
(vii) Establishment of development strategies and mechanism for other identified action areas

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8 SOCIO-ECONOMIC DEVELOPMENT
Main Issues
8.1 Although the overall economic growth has been remarkable, the future prospect does
not look as bright, unless proper measures are taken immediately to correct the weaknesses
that have come to fore in this first stage of Vietnam’s economic development. While the initial
success has been achieved mainly due to the growth of conventional industries, this will not
suffice in the face of economic globalization, especially after Vietnam’s accession to the WTO
community takes effect. Many industries still have low added value and low productivity. FDI
industries lack local supporting industries. Large amounts of consumer goods still depend on
imports. Commercial and service sectors are mostly small scale, providing relatively
low-quality services. In order for Hanoi City to be a driving force of economic development, the
upgrading and expansion of industries and services are needed to meet diversifying market
demands. Urban services are still insufficient and living conditions need much improvement.
Urban planning and development for the future must be undertaken in a way that
socio-economic development is promoted together with spatial and physical development.
Development Orientations
8.2 Industry: Hanoi is now at a crossroad, facing a new challenge in the future of
industrial development which has served as the country’s engine of growth. As urbanization
makes progress and infrastructures in the region are developed, the negative impacts of
conventional industries on the environment and the competition from other provinces
increased. Further industrial development in Hanoi needs to be pursued under a more
strategic role-sharing with adjoining provinces to boost the synergy of an integrated region.
While other provinces and cities in the region intend to further promote economic and
industrial development, Hanoi must shift to more knowledge-based economic activities to take
the lead for the region’s economic development. Toward this end, Hanoi’s higher education
capacity must be strengthened and collaboration with the economic sector needs to be
promoted. At the same time, locations for research and development companies must also be
provided with quality infrastructures and a conducive investment environment.
8.3 More specific strategies include identifying knowledge-based and high-tech industries
in which Hanoi has a competitive edge, promoting diversification of industries to respond to
equally diverse urban needs, strengthening the competitiveness of industries in the face of stiff
competition from other WTO member-countries through the improvement of infrastructure,
human resources and technology as well as institutional reform, further restructuring of SOEs,
and support for SMEs as well as the informal sector.
8.4 A spatial development strategy for the locations of industries is becoming critical. This
involves two main aspects: one is the relocation of polluting factories from urban areas, and
the other is the accommodation of strategic industries targeted for foreign trade. For the former
type of industries, adequate sites for relocation must be provided, while taking account of the
sustainability of operations. For the latter, industrial estates or zones must be provided along
primary transportation corridors, such as NH2, NH18, and NH5, in coordination with other
provinces to maintain Vietnam’s competitive edge over other countries in the region.
8.5 There is in fact a huge opportunity for this being the capital city where key policy
decisions are made. However, in order to achieve this, the development of quality urban
centers provided with modern and efficient infrastructure and services is necessary. Moreover,
Hanoi must also make available quality housing and better living conditions with necessary

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amenities. The strategy to develop the commercial/business sector must be formulated both at
the city/region and the community levels in integration with spatial development and land-use
orientations. In addition to the Ancient Quarter and the French Quarter, new centers must be
developed at the regional and city levels to accommodate future demands in an organized
manner. When Hanoi succeeds in revitalizing the Ancient Quarter and the French Quarter,
while preserving their cultural value and meeting new development needs, these areas could
become globally competitive cultural-cum-commercial/ business centers. An adequate mix of
residential function in urban centers is also desirable. At the community level, commercial and
business activities must also be promoted in a way that they are integrated with residential
areas and other land uses but without causing local traffic congestion and environmental
disturbances.
8.6 SMEs and the informal sector play an important role in employment generation and
economic development of the city. Moreover, they add value to the socio-cultural scene of
Hanoi. While they may transform in many ways as the economy grows, it is crucial to establish
a clearer policy on supporting them. Traditional handicraft businesses are one of the important
activities which can contribute further to economic development and cultural enhancement of
the city. At the same time, they also strengthen urban-rural linkages, benefiting not only craft
villages in the rural areas of Hanoi but those in the hinterland provinces, as well.
8.7 Higher Education: The higher education sector must be looked into not only from the
perspective of boosting research and development, but also from the economic point of view:
with more competitive national and regional education facilities, Hanoi can attract more
students and brains, which in turn can draw more auxiliary investments and provide a stable
pool of quality labor capital that will service other industries and sectors. Since Hanoi is
heading toward a knowledge-based economy and industries, the role of higher education must
be more clearly defined and the strategy for upgrading its capacity and spatial development
must be formulated. At the same time, closer collaboration between the higher education and
the industrial sectors must be made to enable the former to contribute concretely to
socio-economic development. This can be expected when the former is able to contribute to
technological innovations, human resource development, and improved operation and
management.
8.8 Agriculture: The agricultural sector must be given proper attention in two ways: one is
in the provision of guidance and support to shift from traditional agriculture to urban
market-oriented cash crops, and the other is in the conversion of agricultural lands. During the
process of rapid urbanization, large tracts of agricultural lands must be converted into urban
lands. Although the urbanization is an irreversible trend, the process must be properly
managed to achieve effective urban development and at the same time to protect the
livelihoods and the traditions of farmers and communities in rural areas. To do this, a detailed
plan must be prepared involving affected communities in a way that resettlement can be
minimized and alternative economic activities can be provided in the same communities.
District plans are deemed best suited to attend to such local issues and needs while following
the overall orientation of city-level general plans. A comprehensive approach wherein
socio-economic and spatial development can be properly integrated is necessary.
8.9 Tourism: Tourism is a strategic economic industry in Hanoi. Not only does Hanoi have
a variety of unmatched tourism resources; it also serves as a jump-off point or base for tourism
destinations in the hinterland, in the north, or elsewhere. Tourism, as a labor-intensive industry,
can be developed based on infrastructure that can be shared with other economic industries.

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The sector has grown rapidly at a growth rate of 10.7% and 11.9% in terms of international and
domestic tourist arrivals in Hanoi, respectively. In 2005 the number of international and
domestic tourist arrivals was 1.05 million and 3.6 million, respectively. The contribution to the
city’s economy was a remarkable VND 6,400 billion (US$ 400 million) in 2005, accounting for
about 10% of the total city GRDP. It is expected that the number of international visitors will
increase to 4 million and that of domestic visitors to 19 million in 2020. Considering the high
economic growth in the Asian region and the surging interest in Vietnam, the eventual figure
may even exceed this forecast. Again, Hanoi must be prepared for such eventuality.
8.10 Hanoi and its hinterland region offer many potential tourism experiences that have the
underpinnings of a unique blend of rich culture, colorful history, and diverse nature with four
seasons. Stable security conditions further bolster Vietnam’s tourism industry. However, many
of the region’s resources remain largely are untapped simply because infrastructure and
services are not available. Transportation and accommodations are insufficient and services
are yet to be improved. While the northern region as a whole offer a variety of tourism products,
due consideration must be given to Hanoi as the most important tourism resource. It is a
common observation that large cities, especially capital cities, are tourist destinations in
themselves. Thus, tourism development and promotion for Hanoi must be an integral part of
urban planning and development, especially in relation to the development strategy of
adopting the water-greeneries-culture concept as the physical and cultural backbone for the
city’s development.
8.11 The requirement for hotel rooms to accommodate the 19 million tourists by 2020 is
enormous at 52,700 rooms. This requires additional 32,500 rooms on top of the existing
12,5001 rooms in Hanoi. Moreover, the quality of the hotel and hotel rooms has to improve. To
increase the accommodation capacity, investment incentives must be offered to larger hotels.
While guidelines and support measures have to be provided to improve small hotels, providing
training to tourism personnel is also necessary. Where these additional hotels and
accommodation will be located is an important planning agenda in urban planning and
development. The city must thus find adequate locations and provide investment incentives. It
is HAIDEP’s view that investments must basically gravitate toward the planned green network
and special areas such as the Co Loa – Thang Long axis which cover the Red River, Ho Tay,
the Ancient Quarter, and the French Quarter.
8.12 The Ancient Quarter and craft villages are two of Hanoi’s most unique and valuable
tourism resources that can become very competitive in the international market. Besides
sharing a very long history with the craft villages, the Ancient Quarter has a socio-cultural
network and possesses intangible cultural values that have been handed down from
generations past, thereby forming the core value of the Ancient Quarter as proven in the pilot
project. Hence, the physical revitalization of the Ancient Quarter in the name of tourism
promotion and development has to consider its cultural preservation.

1
The existing 12,500 hotel rooms are composed of 2,045 rooms (with 3 to 5-star rating), 6,285 (1-2 stars), and
4,170 rooms (others).

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Socio-economic Development Strategies and Actions

8.13 The proposed strategies and actions for economic and social development are
explained in Table 8.1.
Table 8.1 Proposed Socio-economic Development Strategies and Actions

Strategy Action Monitoring Indicator

C1 Establish C11 Establish interministerial coordination mechanism to promote • Share of new urban
competitive new urban economics involving private sector and higher industries (output value,
economic base education employment, number of
C12 Develop new types of urban industries which combine establishments)
culture, technology, and human resources • Institutional arrangements
C13 Provide strategic supporting infrastructure to enhance made
competitiveness of existing industries
C2 Update industrial C21 Relocate polluting industries • Number of polluting
development C22 Establish concrete strategies for developing industries and industries relocated and
strategies industrial estates/zones in close coordination with other satisfaction of communities
provinces in the region • Progress of projects
C23 Provide necessary supporting environment for industrial • Satisfaction among
estates including housing, accessibility, and amenities for industries
workers
C3 Improve investment C31 Improve Hanoi’s competitiveness in Vietnam and Asia on • Competitiveness index and
environment further providing conducive environment for FDIs ranking
C32 Further improve investment information system for Hanoi • Satisfaction among
and region investors and users
C33 Establish coordinated one-stop center for Hanoi and region • Accessibility to information
and level of business
facilitation
C4 Establish concrete C41 Define and identify the urban poor in Hanoi • Shared definition and
support system for C42 Establish adequate policy on providing needed support for indicators of the poor
low-income groups the poor in sustainable manner • Satisfaction among the
and urban poor C43 Establish adequate monitoring mechanism poor
• Accessibility to indicators
and related information
C5 Strengthen C51 Define and identify issues at the community level • Available mechanism for
capabilities of C52 Establish adequate policy on providing needed support in public participation
communities sustainable manner. • Available plans / programs
C53 Establish adequate monitoring mechanism • No. of meetings and
participants
Source: HAIDEP Study Team.

8.14 Priority projects and actions of strategic importance are identified as follows:
(i) Establishment of updated urban economic development strategies and conducive
investment environment
(ii) Establishment of supporting mechanism for SMEs including informal sector
(iii) Establishment of competitive urban industrial estates/zones
(iv) Strengthening of capacity and technological linkages of higher education and urban
industries
(v) Strengthening of tourism promotion, infrastructure, and services
(vi) Establishment of participatory community environment management system
(vii) development of effective mechanism to address urban poverty and rural issues

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9 URBAN TRANSPORTATION
9.1 Development Goal and Planning Principles
9.1 Transportation infrastructure acts as the foundation of urban development, as
development takes place along, and is greatly affected by, transportation facilities such as
roads, urban railway, and terminals. Roads also provide important space for urban utilities
(such as water supply, drainage, electricity, and telecommunications), opportunities for
disaster prevention, and improved landscape. They also function as a venue for the people’s
varied activities. Efficient transportation is critical in linking Hanoi to international gateways for
trade and tourism, and at the same time to integrate it with the provinces in the region, thereby
creating synergy for growth and development in both areas.
9.2 In order to achieve sustainable urban transportation development in Hanoi, the key
principles that must be duly considered in policy and plan formulation include the following:
(1) Firm Policy Commitment, Clear Strategy, and Effective Mechanism for Development
of Mass-transit-oriented Urban Areas and Society: Lessons learned from the
experiences of large cities in developed and developing countries explicitly indicate that
the provision of effective public transportation is the prerequisite in ensuring sustainability
of not only urban transportation but also the entire urban system, wherein urban
mass-transit comprising urban rail and bus rapid transit (BRT) form the backbone.
(2) Timely Provision of Road Network: Roads are the most fundamental transportation
infrastructure not only for transportation but also for urban development, landscape
improvement, environmental management, and disaster prevention. Roads must be
developed in the form of a network with proper hierarchical functions. Moreover, roads
must be provided in a timely manner to avoid traffic bottlenecks and promote land use as
well as urban development and through more effective ways to accelerate implementation.
(3) Adoption of Comprehensive Traffic Management and Enhancement of Public
Awareness of Urban Transportation Issues: While space for transportation is limited
and the provision of facilities is constrained, maximizing available resources is the most
fundamental issue to address by both governments and transportation users. Since it is
clear that both sides are to be blamed for the current traffic situation as is typically seen in
the driving attitudes of motorists and the lax enforcement of traffic rules, the basics of
traffic management must be immediately implemented and firmly enforced ahead of
expensive and time-consuming infrastructure development.
(4) Establishment of Effective Interface of Urban and Regional Transportation Systems:
Due to its strategic location in the northern region, all important corridors converge in
Hanoi, partly as the origin/destination point and partly as transit point. Since both urban
and regional traffic are expected to grow, they must be properly segregated and/or
interfaced to avoid traffic conflicts. The interface of urban and regional systems is equally
important for Hanoi metropolitan area—the area within 30-50 km radius from Hanoi
center—to integrate satellite cities and urban areas with Hanoi.
(5) Strengthening of Transportation Management Capacity: Infrastructure development is
important but sustainable transportation development requires attention to many aspects
from policy setting, planning and prioritization, to budgeting, implementation, and
monitoring. Considerations to social and natural environment are also important. Then too
an improved mechanism for preparing lands for infrastructure and resettlement is badly

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needed, and this requires much closer harmonization with urban development.
Participatory approach in planning and project implementation is likewise becoming critical
in large urban areas where there are cross-cutting issues and piecemeal solutions will not
be effective.
Figure 9.1 Planning Target for 2020
10 million trips
(forecasted)
Car/Truck
6 million
trips/day 30-50%
Motorcycle (indicative
Rail target)

Bus

Present (2005) Future (2020)

Source: HAIDEP Study Team.

Table 9.1 Target Modal Shares for 2020

2020
2005
Transportation Mode Without UMRT With UMRT
No.1) % No.1) % No.1) %
Private Bicycle 1,579 25.3 374 3.8 372 3.8
Motorcycle 3,396 63.2 5,777 58.7 5,206 52.9
Car/Taxi 227 3.6 1,921 19.5 1,555 15.8
Others 69 1.1 350 3.5 350 3.5
Subtotal 5,811 93.3 8,422 86.5 6,896 70.0
Public UMRT - - - - 2,012 20.5
Bus 420 6.7 1,426 14.5 940 9.5
Subtotal 420 6.7 1,426 14.5 2,364 30.0
Total 6,321 100.0 9,848 100.0 9,848 100.0
Source: HAIDEP Study Team.
1) Trips/day (000), trips inside Hanoi only.
Table 9.2 Modal Shares in Asian Cities

City
Hanoi, HCMC, Manila, Jakarta, Singapore, Tokyo,
2005 2002 1996 2002 1993 1998
Modal Share
Private 93.3 94 22 42 34 64.1
Bicycle 25.3 17 - 4 - -
Motorcycle 63.2 75 1 21 6 21.5
Car/Taxi 3.6 1 25 15 19 42.6
Others 1.1 1 2 2 9 -
Public 6.2 6 78 58 66 35.9
Bus 6.7 2 17 51 42 3.1
Urban Railway - - 2 2 12 32.8
Others - 4 53 5 13 -
Road Ratio (km/km2) 4.2 10.7 1) 11.5 1) 12 15.8
Urban Railway (km)2) - (142) - (29) 43.9 (30) - (170) 109 300 (657) 3)
Sources: HCMC, Manila, Jakarta data: JICA Study, Tokyo data: Tokyo Metropolitan Region- Person Trip
Survey, Millennium Cities Database for Sustainable Mobility.
1) In urban areas only.
2) Figure in parentheses refer to inter-city railway length.
3) Only within the 23 wards of Tokyo. Total length in Tokyo Metropolitan Area is 2,100km.

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9.2 Regional Transportation Development Strategy

Planning Approach
9.3 The existing draft regional transportation master plan prepared by MOT and submitted
to the Government is the starting point of the study in HAIDEP. The plan was reviewed from
the following viewpoints:
(1) Comparison with Future Demand: Interprovincial traffic movement of passenger and
freight for 2020 was forecasted based on an update of the work made in the VITRANSS
(The Study on the National Transport Development Strategy in Vietnam, 2000).
(2) Compliance with Regional Development Strategy: The MOT master plan was reviewed
based on existing regional development plans for the Red River delta, Northern Focal
Economic Zone, and, particularly, for the Hanoi metropolitan area.
(3) Interface with Hanoi Urban Transportation Network: The MOT master plan was
reviewed to ensure proper interface/integration with Hanoi’s urban transportation system.
9.4 A sharp increase in traffic demand requires the expansion of multimodal regional
transportation infrastructure and services. Both passenger and cargo traffic will increase
almost four times between 2005 and 2020. The impact on roads, particularly NH5, NH8, NH2
and NH1, will be significant. Although intermodal relationships were not fully analyzed in the
HAIDEP, it was observed that the MOT Master Plan, together with some modifications
proposed by the HAIDEP as explained in the next pages, would be able to meet the future
demand adequately.
Table 9.3 Modal Shares of Interprovincial Transportation to/from Hanoi

1999 2005 2020 Growth Rate Growth Rate

(1999-2005) (2005-2020)
No. % No. % No. % (%) (%)
Road Car 19,913 17 59,014 25 460,362 52 19.8 14.7
Passenger Road Bus 86,999 74 154,846 67 350,164 40 10.1 5.6
(Pax/day) Railway 11,356 10 17,627 8 66,378 8 7.6 9.2
Total 118,268 100 231,487 100 876,904 100 11.8 9.3
Road Truck 24,390 77 66,003 63 232,253 56 18.0 8.7
Cargo IWT 3,495 11 34,795 33 167,225 40 46.7 11.0
(Ton/day) Railway Cargo 3,667 12 4,481 4 16,352 4 3.4 9.0
Total 31,552 100 105,280 100 415,830 100 22.2 9.6
Source: HAIDEP Study Team (refer to VITRANSS 1999, TDSI 2005, and Traffic Demand Forecasting 2020).
Figure 9.2 Interprovincial Traffic Distribution in the Study Area

Passenger Freight

1999
1999
2020
2020
Trip/day Ton/day
160,000 10,000 20,000
80,000

Source: HAIDEP Study Team.

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Future Network
9.5 Expressways: In the MOT transportation master plan, major improvements on and
development of primary roads, including expressways and national highways, are proposed
for implementation by 2020. The six expressways have a total length of 694km. These are: (i)
Eastern North-South Expressway (Lang Son - Thanh Hoa, 170km); (ii) East-West Expressway
(Noi Bai - Ha Long - Mong Cai, 320km); (iii) Hanoi - Viet Tri - Doan Hung - Lao Cai Expressway
(124km); (iv) Hanoi - Thai Nguyen Expressway (ongoing, 65km); (v) Hanoi - Hai Phong
Expressway (105km); and (vi) Lang - Hoa Lac - Hoa Binh Expressway (80km).
9.6 Railway Network: In its transportation master plan (version 2005), MOT identified 6
major projects. Three of these relate to the upgrading of existing track infrastructure in the
Hanoi area, one to the upgrading of Van Dien Station, and two to the development of urban
railway in Hanoi. The HAIDEP Master Plan for railway incorporates these schemes in its
proposals, albeit in a different form, and in some cases not in their entirety. While the MOT
master plan proposes a rail network around Hanoi City, the HAIDEP Master Plan reviewed and
revised the MOT plan.
9.7 Inland Waterway Transportation: The transfer of the existing Hanoi Port, including
coal storage, to Khuyen Luong and its conversion into a tourism port (waterfront with beautiful
landscape) is suggested in the Red River Inland Waterway Transport System (JICA, 2003).
The relocated Hanoi Port will exclusively handle construction materials and containers.
9.8 Air Transportation: Airports in the study area share 95% of the total capacity of
airports in the north or 34% of the country’s total. The Noi Bai International Airport can receive
4 million passengers a year and can accommodate B747s. Its five-year plan for the 2006 -
2010 period sets a target of 12 million passengers per year. Noi Bai has enough reserved land
and the appropriate conditions to accommodate 50 - 60 million passengers a year, according
to the Civil Aviation Authority of Vietnam (CAAV). Therefore, a new international airport will not
be required, at least by 2020.
Figure 9.3 Proposed Regional Road Network

Source: HAIDEP Study Team.

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Regional Rail Development In and Around Hanoi

9.9 The proposed development orientation for regional rail relating to Hanoi’s development
is twofold, as follows:
(1) Completion of Ring Rail: To provide direct connections to major rail traffic flow, the
missing sections between Hai Phong - Hanoi - Vinh (south) and between Vinh Phuc - Hanoi -
Hai Phong/Cai Lan should be constructed. With the completion of the ring rail and the double
tracking of the ring routes, all interprovincial rail traffic, especially cargo traffic, can be
effectively diverted from the congested city center (see Figure 9.5).
(2) Extension of UMRT to Satellite Cities and Urban Areas: This arrangement can
provide completely integrated passenger services. The UMRT Line 2 can be extended to Xuan
Mai in the southwest and Soc Son in the north, while Line 3 can go further to Son Tay and Line
3 branch line to Hoa Lac in the west. Line 1 services can be provided using VR lines to Bac
Ninh in the northeast. BRT can be introduced while the demand is low, eventually converting it
to rail as demand increases.
High-quality Expressways
9.10 Vinh Phuc - Hanoi - Hai Phong/Quang Ninh, which is part of the Kunming - Hai Phong
corridor, is the most important corridor in the northern region. The area along this corridor must
be promoted as an industrial area and provided with competitive and high-quality infrastructure
to continuously attract investments in the face of fierce competition from other areas in Asia.
While the current MOT transport plan intends to develop two expressways along NH18 and
NH5, HAIDEP proposes to combine them into one high-quality expressway (see Figure 9.4)
provided with logistics facilities, ITS, and industrial complexes due to following reasons:
(i) Investment costs can be Figure 9.4 Concept of High-quality Expressway
reduced while traffic volume
can be increased. Development
opportunities are higher than in
other routes. Therefore, the
feasibility to implement this
project through PPP or PFI
becomes higher.
(ii) As existing investments are
located along NH5 and NH18,
the proposed new route can directly benefit them at the same time.
(iii) Hai Phong and Quang Ninh can be connected with branch lines in the end. They can also
provide direct expressway link between Hai Phong and Cai Lan which can further be
extended to Mong Cai.
(iv) Because of the distance to/from international gateway ports in Hai Phong and Cai Lan,
Hanoi and Vinh Phuc, respectively, are at a disadvantage compared to other cities
including HCMC. The distance must be minimized with high-quality transportation
infrastructure to enhance their competitiveness.
New International Airport
9.11 Although the existing Noi Bai Airport can meet the forecast demand by 2020, there is a
need for a long-term plan of selecting alternative sites for a more competitive international
airport which is expected to be needed as Asia grows and becomes integrated. To this end
Hanoi must find an edge over other existing and potential competitions in the region. The

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factors that must be considered include distance from Hanoi and other major growth centers,
availability of high-quality access transportation, and favorable geographic conditions for
airport operation. Although it is difficult at this stage to determine such a location, it could be
along the proposed high-quality super expressway.
Figure 9.5 Completion of Ring Figure 9.6 Extension of Hanoi’s
Rail Route around Hanoi UMRT to Satellite Cities / Urban Areas

UMRT Line 1 UMRT Line 2

UMRT Line 3 UMRT Line 4
Source: HAIDEP Study Team.
Future Extension
Source: HAIDEP Study Team.
Figure 9.7 Integrated High-quality Expressways

Sources: Above left, various Internet websites. Right, Google Earth.

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SUMMARY

9.3 Road Development

Main Issues
9.12 Except in city centers Hanoi absolutely lacks roads, with the existing road network
characterized by many bottlenecks and missing links. Traffic management is weak and the
awareness of road users is low, aggravating the traffic situation. Moreover, road development
is slow due to resettlement and land issues. Roads in Hanoi are the most fundamentally
needed infrastructure for efficient and effective transportation and urban development.
Planning Principles
9.13 While roads have multiple functions, the key aspects from the transportation planning
viewpoints are as follows:
(i) To segregate urban and interprovincial traffic to avoid entry of heavy vehicles into the city
which can cause congestion and at the same time to facilitate efficient operation of
inter-city transportation. Adequate interface between the two must be ensured.
(ii) To establish clear ring and radial road systems to provide users with a clearer orientation
and to guide prioritization for development.
(iii) To consider in road and road space development and management the nontransportation
function of roads such as space for roadside urban development and activities, for
landscape and urban design, etc.
(iv) To establish a more effective mechanism for at-grade road development to mitigate the
negative social impacts due to resettlement, to reduce costs of land acquisition, and to
facilitate a more effective land use and urban development.
Proposed Urban Road Network
9.14 The proposed road network consists of a combination of eight (8) radial and four (4)
ring roads in the city (see Figure 9.8). Although radial roads link interprovincial primary roads
in each direction, their interface is provided at RR4 which separates interprovincial traffic from
urban traffic. With the proposed plan, the road network of Hanoi City will increase from 624km
to 1.143km in length and from 5.9km2 to 21.8 km2 in area. The availability of road space in
2020 will be better than Bangkok (see Figure 9.9). HAIDEP proposes a classification of roads
according to their function, as follows:
(1) Urban Primary Roads: The urban primary road system services the major portions of
trips entering and leaving the CBD and subcenters as well as the majority of throughway
traffic that bypasses the city center.
(2) Urban Secondary Roads: The urban secondary road system interconnects with and
augments the urban primary road system. Secondary roads must serve not only vehicular
traffic but also various transportation and nontransportation activities.
(3) Urban Tertiary Roads: The urban tertiary road system aims to provide access to areas
located along roads and to serve not only vehicular traffic but also nonmotorized vehicle
as well as roadside, nontransportation activities.
Road Maintenance
9.15 Road maintenance will become increasingly important as more roads are constructed
and widened, as traffic grows, as the number of buses on roads increases, and especially
when the shift from motorcycles to cars occurs. Since poor road maintenance in congested
urban areas will directly lead to increases in maintenance costs and traffic accidents, the city
must ensure that roads are properly maintained throughout the year.

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 The Comprehensive Urban Development Programme in Hanoi Capital City (HAIDEP)
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SUMMARY

Figure 9.8 Proposed HAIDEP Road Network

Source: HAIDEP Study Team

Figure 9.9 Comparison of Road Network Densities

%
20.0
18.1
18.0 Existing Conditions
15.8
16.0 Future Master Plan
14.0
12.0
12.0 10.3 10.6
10.0 8.5
7.5
8.0 6.3 6.8
6.0 5.2
4.1 4.2
3.4
4.0 2.5
2.0
0.0
l) ) ) ) n) )
or
e ll) l re ge al Al
l)
tra p (A tra Co in ba ur i(
en ga k en Fr ur (R
(C in ko C an b i no
o S ng k
(
rb an Su no Ha
ky Ba ko (U rb i( Ha
To ng i (U no
no i a
Ba Ha no H
Ha

Source: HAIDEP Study Team.

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SUMMARY

Bridges across the Red River

9.16 As the future growth of urban areas is also directed toward the left bank of the Red
River, bridges across the Red and the Duong rivers are important to integrate the urban areas
on both sides of the rivers. However, planning for the bridges must be carefully done because
of the following reasons:
(i) Locations and capacities of bridges significantly affect urban development and traffic
patterns.
(ii) Bridges across the Red River are costly.
(iii) Bridges can enhance or ruin the city’s landscape.
9.17 An analysis was made in HAIDEP and the following are the results:
(i) On the basis of the proposed General Plan, 8 bridges including the existing Chuong Duong,
Long Bien, and Thang Long bridges can meet the demand in 2020 (see Figure 9.10).
(ii) Constructing bridges which directly lead to the city center is not advisable. As is
experienced in the Chuong Duong Bridge, there is a lot of traffic directly stopping in the city
center and passing through it, thereby amplifying the already congested traffic situation. To
improve the situation traffic heading for the city center can be diverted to Nhat Tan and
Vinh Thuy bridges as well as the ring roads.
Figure 9.10 Proposed Bridges Across the Red River
Length No. of 000 pcu/day
Name of Bridges
(km) Lanes Capacity 2020 Traffic
North of 1. RR4 West 2.0 4 88 64
Hanoi 2. Thang Long Existing 4 64 58
3. Nhat Tan 3.0 6 110 100
Subtotal - 14 263 222
East of 4. Long Bien Existing - 9 9
Hanoi 5. Chuong Duong Existing 4 77 90
6. Vinh Tuy 3.1 6 110 95
7. Thanh Tri 2.0 6 110 99
8. RR4 South 4.4 4 88 54
Subtotal - 18 395 345

1
2

6
7

Source: HAIDEP Study Team.

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SUMMARY

Location and Role of Ring Road 4

9.18 HAIDEP proposes to modify the alignment of Ring Road 4 (RR4) from that indicated in
the MOT plan due to the following reasons:
(i) RR4 must be situated in the periphery of the future urban areas and within an adequate
distance from RR3. In this location RR4 can function in the most effective manner, i.e. to
effectively divert both urban and interprovincial traffic and the total length can be much
shorter, while higher traffic volume can be attracted, thereby making the project more
viable economically and financially.
(ii) RR4 can connect urban centers of adjoining provinces and future growth centers such as
Ha Dong, Tu Liem, Me Linh, and Phuc Yen in the west. The location will also complement
the development of new urban centers beyond 2020.
(iii) In the east, RR4 together with NH5 will function more as an interprovincial link between
northern Hanoi and Vinh Phuc. This section can be effectively linked with the proposed
high-quality expressway discussed in Chapter 8.2.
Interface of Urban and Regional Road Networks
9.19 The urban road network will interface with the inter-city road network on RR4. As RR4
is designed with expressway standards, the main regional roads, including expressways, are
best connected on RR4, with their intersections fully grade-separated. Integrated development
of logistics facilities including inland container depots (ICDs) along RR4 would also be
beneficial to industries.
Alternative Methods for Land Acquisition and Resettlement
9.20 Road construction in Hanoi has become increasingly complex due to difficulties in
obtaining land for roads and resettlement issues as well. Since current methods of land
acquisition increase the investment costs, lengthen project periods, create various social
conflicts, and are detrimental to the people, it is necessary to develop alternative schemes to
address road development issues more comprehensively, as can be done through the land
readjustment scheme adopted by many successful cities in Japan. The land readjustment
scheme aims to develop comprehensively the infrastructure together with urban development
in the defined project area and involving the residents and land owners in the subject area.
This mechanism can minimize resettlement and contribute to the reduction in the amount of
public investment.
Figure 9.11 Concept of Land Readjustment

Before

Original
land lot

After Lot after LR Contribution of

land owners

・ Land for public facilities

・ Reserved land for selling in the market to raise
money to cover part of the project cost

Source: Worked out by the HAIDEP Study Team based on existing publications.
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9.4 Urban Mass Rapid Transit (UMRT) Development

Planning Principles
9.21 The UMRT is very important but it is a costly undertaking. In order to maximize the
benefits of UMRT development and minimize the financial burden for the government, the
following measures must be considered:
(1) Integration with Urban Development: When urban development projects, such as
commercial complexes, new towns, industrial estates, university complexes, and
recreation parks, are implemented in a coordinated manner with transportation
development, the combined effect is far greater than their individual benefits. An integrated
development will not only spread the burden of financing the infrastructure but will also
increase the value of these developments because of improved accessibility, increased
UMRT ridership, and new business opportunities.
(2) Development as a Network: The effects of one line are limited. The UMRT has to be
developed as a network to effectively cover the critical parts of the urban areas.
(3) Phased Development: Since the development of a UMRT network requires huge
investments and a lengthy time, a phased development strategy must be adopted which,
however, must ensure all lines are properly integrated as one efficient system.
Proposed UMRT Network
9.22 The proposed UMRT network was worked out based on the eight lines proposed in the
MOT plan which were analyzed based on the future traffic demand, and then integrated into
four lines (see Figure 9.12). The proposed network within Hanoi is 193km long comprising
urban rail and BRT which can be selected depending on the demand.1
(1) UMRT Line 1 (Ngoc Hoi to Yen Vien, Nhu Quynh): This 34.5-kilometer-long UMRT line
following the existing VR line will serve the northeastern and southern suburbs of Hanoi
via the CBD including the proposed multimodal interchange terminal at Hanoi Station.
(2) UMRT Line 2 (Noi Bai to City Center & Ha Dong): The 63-kilometer-long UMRT Line 2
will combine the proposed Ha Dong and Noi Bai lines identified in the MOT plan. Line 2
provides the most significant backbone to sustain the existing and future urban areas by
integrating Noi Bai Airport, Dong Anh new town areas, the proposed government complex
in Tu Liem, the Ancient Quarter, the French Quarter, and the fast-growing NH6 corridor
leading to Ha Dong. In view of its importance, Line 2 was selected for a prefeasibility study
in HAIDEP.
(3) UMRT Line 3 (Nhon to City Center & Hoang Mai): This 33-kilometer-long UMRT Line 3
links the west, the CBD, and the south of the city via the Hanoi Station of Line 1.
(4) UMRT Line 4 (Ring Route): This line, which can be initially developed as a BRT, will
provide circular rail services by connecting lines 1, 2, and 3 to diversify the radial demand
and integrate subcenter development which will be further promoted in the future.
(5) Other Branch Lines: UMRT lines 1, 2, and 4 can be provided with branch lines
connecting the main rail lines with BRT lines.

1
For example, a UMRT line can be initiated with a BRT and eventually converting it to urban rail as demand
increases. The BRT must be planned in a way that its structure can be smoothly converted to urban rail and that
needed land is secured.

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(6) Regional Lines: In order to further serve satellite cities and urban areas in adjoining
provinces UMRT lines 1, 2, and 3 can be extended. For Line 1, urban services can be
accommodated in a provincial rail network, while for lines 2 and 3, the same urban
services can be extended to connect the main satellite cities.
9.23 When the four UMRT lines are completed, the UMRT system can serve 2.6 million
passengers a day with an average trip length of 7.8km per passenger. Line 2 will carry the
highest volume at 866,000 passengers a day, followed by Line 1 at 704,000 (see Table 9.4).
Figure 9.12 Proposed UMRT Lines, 2020

Source: HAIDEP Study Team.

Table 9.4 Profile of UMRT Lines, 2020

Unit: km
Urban Rail Ridership
Ave. Trip
UMRT BRT Total Pax-km No.
Underground Elevated At-grade Bridge Subtotal Length
(000/day) (000/day)
(km)
1 nil 12.3 24.4 2.0 38.7 nil 38.7 5,968 704 8.5
2 18.6 20.4 nil 2.5 41.5 33.9 75.4 7,278 866 8.4
3 12.0 1.3 7.7 nil 21.0 12.0 33.0 2,521 488 5.2
4 nil nil nil nil nil 53.1 53.1 4,463 526 8.5
Total Km 30.5 34.0 32.1 4.5 101.2 99.0 200.2 20,230 2,585 7.8
Source: HAIDEP Study Team.

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Role and Function of the UMRT

9.24 The role and function of the UMRT system are as follows:
(1) Role in Transportation: The UMRT will provide efficient services connecting suburban
areas with the CBD and support the effective expansion of urban areas. It will provide
smooth travel within the congested city center.
(2) Impact on Urban Development: The UMRT will provide ample opportunities for urban
development at and around the stations and terminals.
(3) Social Impact: The UMRT will provide affordable, reliable, and high-quality transportation
services.
(4) Environmental Impact: The UMRT will contribute to the reduction in air pollution and
energy savings.
(5) Technological Impact: Modern means of transportation can contribute to the
development of new technology and supporting industries.
Integrated Development
9.25 To maximize the benefits that can be derived from UMRT development, a common and
successful approach is the adoption of an integrated urban development. At stations and
terminals and in their adjoining areas, commercial and public facilities are integrally developed
with transportation. With this UMRT can expect higher patronage and commercial/urban
development will benefit from good accessibility. This synergy is often so huge that many
private railway companies in Japan have adopted this measure and in the process have
generated considerable revenue.

UMRT going through residential areas in Integrated commercial development at

Singapore. UMRT station.

UMRT Network Configuration in CBD

9.26 UMRT lines must form an effective network in the city center to maximize coverage. If
the network is properly configured many parts of the CBD can be reached within walking
distances of 500 to 800 meter or 5 to 10 minutes from a UMRT station (see Figure 9.13). With
this kind of network, stronger traffic demand management measures in the city center can be
implemented such as the restricted use/entry of cars and motorcycles or the imposition of high
entry tolls or of high parking fees for them.

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Figure 9.13 UMRT Network Configuration in CBD

Line 1

Multimodal/
Interchange Station
Line 2
Intermediate Station

500 m

Line 3

Line 2

Line 1 Line 3
Note: Worked out by the HAIDEP Study Team based on satellite imagery.

Development of Underground Space

9.27 The development of underground space is also a promising opportunity for Hanoi’s
urban and economic development particularly in the city center where building heights must be
restricted. Underground space can be developed integrally with UMRT underground stations
for commercial use (e.g. shopping) and public facilities (e.g. underground parking). With
extensive development of underground air-conditioned walkways destinations in the city
center can be effectively and conveniently connected.

Metro station. Image of underground shopping arcade.

Sources: Various websites.

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Expansion of UMRT Lines to Adjoining Provinces

9.28 As explained in Chapter 9.2, the UMRT lines can be extended to link satellite cities and
main urban areas in adjoining provinces.
Functional Share of UMRT and Rail: Interface between Urban and Interprovincal
Rail Transportation Services
9.29 The differences in the functional and operational characteristics between urban and
interprovincial rail services ail must be duly considered. The former provides frquent urban
services with short station spacing, while the latter offers long-distance interprovincial services.
Since Hanoi is large the function of UMRT and rail needs to be clearly delineated, especially
when traffic demand becomes large. The HAIDEP proposal aims to terminate interprovincial
services at the ring rail route with rail sections within the ring route to be converted solely for
urban services. Interchange stations between urban and interprovincial services will be
developed along the ring route.
Strategic Funding
9.30 The UMRT requires large invetsments, but with a strategic mix of different funding
sources, including ODA, private sector equity, and commercial borrowings, the burden on
government can be lessened. At the same time, it is revenue-generating with proceeds coming
from fares and the integrated commercial and urban development at and around the stations
including the underground spaces wherein the private sector can participate.
9.31 In the HAIDEP view, the future role of the Hanoi Station as the central station would
be more titular rather than functional, because of the increase in traffic congestion at and
around the stations that a concentration of several lines in the CBD will generate. It is also
proposed that interprovincial services be terminated at the ring route where they can be
smoothly interfaced with the UMRT.
Operation and Management of UMRT
9.32 The implementation, as well as the operation and management of the UMRT can be
most realistically achieved and sustained through a strong government initiative due to the
perceived high risks in the project. Thus it is recommended that HPC create the Mass Transit
Authority (MTA) which will plan, design, build, and initially run the UMRT system. In the future
as experience and expertise grow, the task of operating and maintaining the system will be
divested to private entities under a competitive framework, and the MTA will narrow its focus
on network planning and rail network expansion, as well as on technical and economic
regulation of rail operators.
9.33 MTA will also take the lead in rail-related property development. To maximize
opportunities for commercial development within the context of the transit-oriented
development (TOD), MTA is recommended to consider schemes, such as joint commercial
development ventures and land readjustment arrangements, to coordinate land owners and to
secure sufficient land for integrated urban development. It is expected that land development
would not only generate large revenues for further rail investment, but would also enhance the
functionality and effectiveness of the UMRT system.

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Figure 9.14 UMRT Systems

Metro (Tokyo) BTS (Bangkok)

Monorail station (Kuala Lumpur) MRT station (Metro Manila)

Inside the UMRT (Kuala Lumpur) Ticket gate (Tokyo)

BRT (Jakarta) BRT station (Curitiba)

Sources: Various sources.

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9.5 Public Transportation Development

Main Issues
9.34 The public transportation system will have three basic components, as follows: (i) a
high-capacity urban mass transit system composed of rail and BRT; (ii) an intermediary bus
system composed of primary and secondary bus routes; and, (iii) a supplementary system with
small vehicles operated by the private sector.
9.35 While the UMRT is expected to form the transportation backbone of the city, buses will
remain to be the most important road-based public transportation mode even in the future,
providing services in areas not covered by the UMRT or providing feeder services to it. And
unless the UMRT is integrated with bus and other public transportation modes, including taxi
and xe om, even cars and motorcycles, at the stations, it may not be fully utilized and the
quality of public transportation services as a complete system may diminish.
Planning Direction
9.36 A priority bus network can vary from a closed system with designated buses and
pre-ticketing facilities (true BRT), to an open or semi-open system which can possibly be used
by all buses (which also does not mean that all buses must always be allowed). A closed
system is most effective if a full standard BRT system is available in the whole network. An
open system, on the other hand, requires monitoring to prevent bus congestion. Generally
speaking, the more uncertainties and/or missing links there are, the greater the case for a less
complex network.
9.37 The primary bus route network will initially form the backbone of the system and will
thus fulfill the role of the future UMRT network. It consists of bus routes providing high-capacity
and high-commercial speeds by using the priority network. After the completion of the UMRT
system, the primary network will connect to multimodal stations but will not essentially be a
feeder network. The primary network will be operated by standard and articulated buses.
9.38 The secondary bus network will consist of feeder routes and local routes providing
dense coverage. The secondary network will normally operate in mixed traffic. And accordingly,
commercial speeds and performance levels will be lower. This network will be operated by
standard and smaller buses.
9.39 There are mainly three types of supplementary public transportation services in Hanoi
today, namely:
(i) The widespread and well-functioning taxi system.
(ii) The unofficial but thriving motorcycle taxis (xe om).
(iii) The traditional bicycle rickshaws (cyclo) now largely phased out.
9.40 The expansion of semi-public transportation services such as school buses and factory
bus services, must also be encouraged to meet specific demand.
9.41 Further improvements to public transportation services are also necessary such as the
following, among others:
(i) Common ticketing between UMRT and feeder buses.
(ii) Improvement of bus information services.
(iii) Introduction of low-floor buses or those that are easily accessible to vulnerable groups
including the aged, the physically challenged, etc.

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Figure 9.15 Primary Bus Route Network Figure 9.16 Secondary Bus Route Network1)

Source: HAIDEP Study Team. Source: HAIDEP Study Team. 1) For inner areas.
Figure 9.17 Public Transportation Development

Buses and stops in the “Transmilenio” PBT system in Bus rapid transit.
Bogotá.

Low-floor bus. Bus information system.

Bus services connected with urban railway.

Source: Various sources.

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9.6 Traffic Management and Safety

Critical Role of Traffic Management
9.42 Traffic management is the most fundamental and important factor in the transportation
sector. Traffic management and safety are serious weaknesses which usually limit the efficient
use of available facilities and endanger life and property. Specifically, the lack of proper traffic
management may underutilize costly infrastructure, shorten its economic life, amplify
congestion, compromise safety, worsen the environment, and generally adversely affect the
land use/urban development along roads. Poor traffic safety and serious traffic congestion are
largely due to a lack of effective traffic management. While traffic management measures are
not costly, they require a mix of engineering, enforcement, and education measures. Key
aspects are as follows:
(i) To enhance people’s awareness of the need for traffic discipline and efficient use of limited
road space which if done immediately can benefit society.
(ii) To establish a clear policy on the priority use of available road space among transportation
modes including bus, motorcycle, car, bicycle, and others.
(iii) To establish a firm policy on the role of motorcycles in urban transportation and the
people’s socio-economic activities.
Comprehensive Approach: Corridor Management
9.43 Isolated implementation of traffic management measures is inefficient and does not
bring about expected effects. The purpose must be placed on comprehensive improvement of
mobility and amenity of road users as well as landscape and environment. This approach is
particularly important to ensure the continuity of smooth traffic and the enhancement of street
identity. In HAIDEP a total of 16 main corridors were assessed as to their requirements for
improvement.
Strengthening Basic Traffic Engineering Measures
9.44 What must be done for the efficient use of available infrastructure is well known as the
3 Es which stand for engineering, enforcement, and education. Carriageway improvement
includes pavement rehabilitation, drainage improvement, installation of median and street
lights, while intersection improvement include geometric improvement, signalization and signal
coordination, provision of left-turn lane, and grade separation. Basic traffic control include
imposition of roadside parking ban and track ban, adoption of one-way systems, improvement
of traffic signs and markings, as well as improvement of public transportation facilities and
pedestrian environment. These measures do not require much investment and must be
constantly enforced as an important component of the master plan in the short term.
9.45 Parking: Parking is becoming a serious concern in the city. The lack of space and
management capacity amplifies the problem in many locations. A parking development policy
must be formulated, clearly defining the roles of the public and private sectors. The basic rule
is that buildings or institutions from which the parking demand is generated must provide
parking facilities. More specifically, the recommended basic parking policy can be stated as: (i)
concerned buildings or institutions must provide exclusive parking; (ii) buildings of certain
types and sizes must have an adequate parking facility; and (iii) public parking must be limited
to short-term parking for the public.

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9.46 Transportation Demand Management: Many large cities implement various

measures to curb ownership and use of private vehicles especially cars. Hanoi must introduce
effective TDM measures to improve the traffic situation, as suggested below:
(i) Improved Pricing for Parking: This includes the expansion of pay parking areas, increase
in parking fees, and charging hourly parking fees.
(ii) Compulsory Provision of Garages: This will force existing and potential car owners to
provide garages in their respective residences.
(iii) Introduction of Area Licensing Scheme: This can be implemented in the city center when
the UMRT lines have been completed. This scheme will restrict the entry of private
vehicles to particular sections in the city center by imposing tolls on them.
9.47 Traffic Safety: Traffic safety in Hanoi is largely blamed on the undisciplined driving
behaviour of motorists and the lax enforcement of traffic rules. This implies that many of the
accidents can be immediately reduced when awareness of the road users and enforcers is
improved. Without a change in the mindset of the people, any measure and investment to
improve the situation will be in vain.
9.48 Sidewalk Improvement: Sidewalks in Hanoi are very important not only for pedestrian
traffic but also as space for various activities including vending, resting, parking, etc. in this
unique nature of Hanoi, sidewalk improvement and management can be done with the active
involvement of communities and roadside establishments.
Figure 9.18 Concepts and Pictures of Ideal Sidewalks

A sidewalk along a park in Hanoi. Orchard Road in Singapore.

A sidewalk in Japan without electric wires. Undergrounding electric wires in Japan.

Source: Various sources.

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9.7 Urban Transportation Master Plan and Its Performance

Summary of Master Plan Projects
9.49 The proposed Urban Transportation Master Plan is composed of a total of 146 projects
including expressways and roads, UMRT and buses, traffic management, roadside facilities (ie
sidewalk landscape, common duct, and parking), and training (see Table 9.5).
9.50 The total investment cost is about US$ 12.7 billion excluding committed projects, of
which roads share US$ 6.8 billion (54% of the total), public transportation at US$ 5.4 billion
(43%), and others US$ 0.4 billion (3%). However, costs to the government depend on to what
extent the private sector would participate to the projects. In addition, the types of project such
as public transportation and expressways can generate revenue to cover part of the
investment costs. Based on preliminary assumptions the cost to governmetn will somewhat be
US$ 10 billion.
9.51 Regional transportation projects will cost US$ 10.5 billion comprising expressways,
roads, railway, airport, and IWT sharing US$ 3.1 billion, US$ 1.4 billion, US$ 2.3 billion,
US$ 3.3 billion, and US$ 0.2 billion, respectively.
Table 9.5 Summary of HAIDEP Projects
Project Cost to Implementation
Sector Project Type Government6)
No. km US$ mil. % US$ mil. ’06 – ‘10 ’11 – ‘15 ’16 – ‘20 ’20 ~
Committed Projects2) 14 80 1,253 95 1,186 1,119 66 0 0
Expressway3) 12 127 1,364 48 652 73 89 490 0
ROAD

Primary 29 111 2,741 100 2,741 1,320 1,089 332 0

URBAN TRANSPORT

Secondary 69 304 2,710 100 2,710 393 1,964 353 0

Subtotal 110 542 6,815 90 6,103 1,785 3,142 1,176 0
UMRT 4 183 5,130 75 3,847 314 2,058 1,475 0
PT1)

Bus 2 263 35 92 31 31 31 0
Subtotal 6 183 5,393 73 3,939 344 2,089 1,506 0
Traffic Management 5 158 100 158 67 46 46 0
Roadside Facilities4) 3 254 100 254 85 85 85 0
Training, etc. 8 31 100 31 15 8 8 0
Subtotal 146 13,905 84 11,671 3,416 5,436 2,820 0
Committed Projects5) 1 254 100 254 254 0 0 0
Expressway 9 880 3,141 50 1,571 197 410 474 490
ROAD
TRANSPORT

Primary 12 1,811 1,469 100 1,469 248 447 490 284

REGIONAL

Subtotal 21 2,691 4,610 66 3,040 445 857 964 774

Railway 11 2,328 100 2,328 463 1,610 255 0
Airport 2 3,350 100 3,350 3,350 0 0 0
IWT 5 178 100 178 57 96 25 0
Subtotal 40 10,720 85 9,150 4,569 2,563 1,244 774
Source: HAIDEP Study Team.
1) PT = public transportation
2) Committed urban transport projects include: (i) 1 expressway; (ii) 11 primary roads; (iii) 1 secondary road; and, 1 BRT project.
3) The 12 urban expressway projects comprise 9 RR4 segments and 3 other distinct expressway routes.
4) Including sidewalk landscape, common duct, and parking.
5) The committed regional transportation project is a railway project.
6) Cost to government was estimated based on the following assumptions:
= Expressways – 50% gov’t, except for committed projects, which is 100% gov’t
= UMRT – 75% gov’t
= Bus: (i) Acquisition and replacement - 0% gov’t; (ii) PBT – 100% gov’t; and, (iii) BRT – 10% gov’t
= Others – 100% gov’t

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Assessment of the Master Plan Transportation Network

9.52 With the implementation of the proposed network, the traffic situation will be
significantly improved compared with the “Do something” situation and the “Existing” situation.
The main findings of the analysis are as follows (see Table 9.6):
(i) Although the proposed network will eventually become more congested than the existing
network, average travel speeds will be improved due to the effects of better network
configuration of the proposed plan.
(ii) Effects of the proposed network can also be seen from the coverage of the areas that can
be reached within 30 minutes from a 60-minute travel to/from Hoan Kiem Lake. Without
the plan, the coverage is reduced quickly, while with the plan, it can expand farther toward
all directions in the city (see Figure 9.19).
(iii) The effects of TDM are also significant in that travel conditions on the roads improve and
UMRT ridership increases.
Table 9.6 Performance of the Road Network

2020
HAIDEP Network
2005 Do-Something
Network1) With UMRT &
With UMRT
TDM
Average Travel Speed
26.0 9.4 22.0 35.2
(km/h)
Average Volume/ Capacity
0.40 1.13 0.69 0.52
Ratio
Source: HAIDEP Study Team
1) Including ongoing and committed projects.

Figure 9.19 Areas Reachable within 30- and 60-Minute Travel to/from Hoan Kiem Lake
2005 2020 Do Nothing Scenario 2020 Master Plan Network Scenario

Areas reachable within 30 minutes

Areas reachable within 60 minutes

Source: HAIDEP Study Team.

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9.8 Urban Transportation Development Strategies

9.53 Transportation development is a very important component in urban and regional
development because: (i) it affects the locations of industries, the pattern of land uses, and
socio-economic activities; and (ii) it requires large amounts of public funding. In Hanoiand its
metropolitan area, the supply-demand gap in transportation infrastructure and services is
widening due to the rapid progress of urbanization, industrialization, and economic growth,
resulting in worsening congestion, increased traffic accidents, and deteriorated environment.
The provision of efficient transportation infrastructure and services holds a casting board to
sound socio-economic development in the region. For this purpose, the following strategies
and actions were identified (see Table 9.7):
(i) D1 Establish coordinated urban transportation policy
(ii) D2 Enhance public awareness and understanding of urban transportation issues
(iii) D3 Promote realization of mass transit-oriented urban development
(iv) D4 Expand attractive public transportation system
(v) D5 Strengthen effective management of traffic and demand
(vi) D6 Focus on need for comprehensive development of transportation space and
environment
(vii) D 7 Strengthen capacity for effective transportation sector administration and
management
9.54 Of the numerous actions that must be considered to improve the transportation sector,
those with strategic importance were selected, as follows:
(i) Establishment of coordinated mechanism for preparation, monitoring, updating of the
urban transportation master plan
(ii) Development and conduct of capacity building program on transportation planning and
management
(iii) Strengthening of traffic management and safety improvement capacity
(iv) Completion of key sections of main roads in Hanoi
(v) Development of urban roads in integration with urban development
(vi) Comprehensive improvement/development of sidewalk network and space
(vii) Expansion and improvement of bus services
(viii) Establishment of clear policy and support measures for paratransits including taxis, xe
om, and other services
(ix) Integrated development of UMRT network
(x) Establishment of comprehensive parking policy and facility development
(xi) Comprehensive improvement of traffic environment in CBD
(xii) Comprehensive improvement of transportation and urban environment in key corridors
(xiii) Development of water transportation services in Hanoi
(xiv) Improvement of inter-city public transportation services between Hanoi and satellite
cities/urban areas
(xv) Improvement of public transportation services between rural and urban areas

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Table 9.7 Proposed Urban Transportation Development Strategies and Actions

Strategy Action Monitoring Indicator
D1 Establish coordinated D11 Establish effective modal policy to ensure sustainable urban • A coordinated/integrated
urban transportation transportation including management of private transportation policy statement issued by
policy D12 Establish clear strategy for effective interface of urban and regional government
transportation network and services • Standard project
D13 Establish rational and transparent framework for prioritization management information
transportation policy and projects system shared by relevant
D14 Establish workable mechanism for effective coordination among ministries/departments
relevant sectors and organizations • Roadmap for each action
D15 Establish sustainable funding mechanism to promote private sector and their progress
participation
D2 Enhance public D21 Expand transportation education, campaigns and public information to • Improved attitude of road
awareness and appeal to mind and heart of the people users
understanding of urban D22 Implement various experimental projects for policy test with the • Response of the people
transportation issues involvement of communities and transportation users • Progress of projects/actions.
D23 Strengthen research and studies on urban transportation issues
D3 Promote realization of D31 Develop mass transit and public transportation system in full • Necessary institutional
mass transit-oriented integration with urban growth strategy, land use and urban arrangements done
urban development development • Concrete arrangement for
D32 Integrate transportation master plan with overall urban /regional integration of transportation
master plan as one coordinated statutory plan plan with urban/regional plan
D33 Establish effective institutional framework and practical development • Shared understanding of the
methods for transit-oriented development (TOD) strategy among stakeholders
D4 Expand attractive D41 Develop UMRT network as the city’s public transportation backbone • No. of public transportation
public transportation D42 Expand and strengthen bus system and services in a coordinated users
system manner with UMRT to provide public transportation services in the • Coverage of bus services
entire city • People’s satisfaction
D43 Develop supplementary public transportation services including taxi, xe
om, cyclo, water transportation, school buses, company buses, etc.
D5 Strengthen effective D51 Strengthen traffic control and management to regulate traffic flow for • Changes in road users’
management of traffic enhanced safety, comfort, and efficiency attitude
and demand D52 Enhance enforcement capacity in parallel with social awareness (D2) • No. of traffic accidents
D53 Establish workable parking policy • Road users’ satisfaction
D54 Introduce phased TDM measures • Revenue generated
D55 Expand introduction of information technology (IT) for effective • Degree of traffic congestion
transportation management
D6 Focus on need for D61 Establish shared concept of comprehensive development of • Length and area of
comprehensive transportation space and environment sidewalks with improved
development of D62 Strengthen comprehensive management and improvement of pavements, pedestrian
transportation space transportation corridors shade, and street lighting
and environment D63 Establish comprehensive management of traffic and transportation • Responses of road users
related issues in CBD and communities
D64 Provide adequate transportation environment for pedestrians bicycle
users
D65 Provide adequate transportation services and environment at district
and community levels both in urban and rural areas
D7 Strengthen capacity D71 Strengthen planning and project preparation capacities including • Availability of database,
for effective database, planning tools and human resources planning tools
transportation sector D72 Develop alternative methods for smooth acquisition of lands for • No. of qualified
administration and infrastructure development transportation planners,
management D73 Expand participation of private sector and communities engineers
• Land and compensation costs
• Extent of private sector
involvement
Source: HAIDEP Study Team.

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10 URBAN WATER AND SANITATION

10.1 Water Supply
Planning Conditions
10.1 In formulating the water supply plan, HAIDEP referred to Decision No. 50 issued in
2000, the Hanoi Metropolitan Area Development Plan by MOC (July 2005), and the National
Strategy for Environment Protection until 2010 and Vision toward 2020 by MONRE (July 2004)
for the basic orientation.
10.2 It was assumed that urban water supply services would cover 100% of the future urban
areas (590km2) including 231km2 in the southwest, 123km2 in the southeast, and 236km2 in
the north of the city. Rural areas will also be provided with rural water supply services.
10.3 Water demand in Hanoi was estimated based on the population in the service area and
unit water consumption. Results showed that the current total demand of 555,000 m3/day
would increase to 1.3 million m3/day by 2020, 70% of which would come from new urban areas.
Domestic use would share 62%, while nondomestic and industrial use would each account for
19% (see Table 10.1).
10.4 The daily maximum distribution of urban water necessary to estimate supply capacity
was calculated based on demand, physical loss, and peak factor. Results showed that the
total requirement would increase from 872,000 m3/day in 2005 to 1.8 million m3/day by 2020,
or 62% from the southwest, 22% from the north, and 16% from the southeast (see Table 10.2).
Table 10.1 Estimated Water Demand in Hanoi
2005 2020
Item
Area A Area B Total Area A Area B Total
Population (000) 1,569 1,169 2,738 1,567 2,983 4,550
Planning
Factors Service Coverage (%) 100 80 100 100
Unit Consumption (l/c/d) 160 135 190 180
Domestic 251 127 378 298 538 836
1)
Water Demand Non-domestic 75 38 113 89 162 251
3
(000m /day) Industrial
2)
8 56 64 9 242 251
Total 334 221 555 396 942 1,338
Source: HAIDEP Study Team.
1) Nondomestic demand was estimated using 30% of domestic demand.
2) Industrial demand was estimated using 3% and 45% to domestic demand for Area A (current service area) and Area B
(future urban areas), respectively.

Table 10.2 Required Daily Maximum Distribution of Urban Water by Service Area
2005 2020
Southwest Southeast North Total Southwest Southeast North Total
Net Demand
3 427 64 64 555 807 212 319 1,338
(000m /day)
1)
Physical Loss (%) 16 15
3 2)
DAD (000m /day) 508 76 76 660 950 248 374 1,572
2)
Peak Factor 1.35 / 1.10 1.30 / 1.10
3 3)
DMD (000m /day) 674 100 98 872 1,124 292 394 1,810
Source: HAIDEP Study Team.
1) Administrative loss of 21% in 2005 and 10% in 2020 are not considered.
2) DAD = daily average distribution, DMD = daily maximum distribution.
3) Peak factor for domestic and non-domestic use/ industrial use.

Selection of Most Appropriate Water Source

10.5 While the policy is to shift water sources from groundwater to surface water, alternative
sources were identified and compared. For the Red River basin these include the main stream
of the Red River, the Da River, and the Lo River, and for the Thai Binh River basin these

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include Cau River, Cong River, and Ca Lo River. A comparison of the water quality of these
rivers showed that the Red River water meets all aspects of the Vietnamese standards except
for turbidity. Among the Red River, the Lo River, and the Da River, the latter has the lowest
turbidity, but exploiting its water would need about 60km of transmission pipeline. The Lo River
with higher turbidity than the Da River would also require a transmission pipeline albeit at
about 10km shorter than that required for the Da River. The shift to surface water must be
done in conformity with the other planned water supply projects including that for the Da River.
10.6 At present, groundwater potential is limited to 700,000 m3/day in the south of the Red
River and 142,000 m3/day in the north of the Red River, as stated in Decision No. 50. Although
a more in-depth study is necessary to confirm this potential, it can be said that since
groundwater pollution has exceeded the standards in the south1 further extraction is not
recommended. On the other hand, in the north 40,000 to 50,000 m3/day can still be extracted.
Water Supply Plan
10.7 Water Treatment Plant Capacity Expansion: In order to meet the future demand,
capacity expansion of water treatment plants is necessary. Five such projects which would
have a total capacity of 750,000 m3/day when completed are proposed. Three projects which
will be completed by 2011 will have a total capacity of 500,000 m3/day, while the remaining
capacity of 250,000 m3/day will be completed by 2020 (see Table 10.3). This additional
capacity will be allotted to Hanoi’s southwest, southeast, and north at 200,000 m3/day,
250,000 m3/day and 300,000 m3/day, respectively. A transmission pipeline network will be
provided in five identified service areas (see Figure 10.1). With the completion of the five water
treatment plants, the future water demand would be met effectively (see Table 10.4).
10.8 In parallel to the physical improvements, the operation and management of the water
treatment plants must be improved through the following:
(i) Reduction in water leakage and loss through the installation of new pipes, adoption of
modern technologies, and use of reliable materials.
(ii) Establishment of a water quality monitoring system in the Red River and the Duong River
to take prompt measures in case of water pollution.
(iii) Further improvement of the operation and management system.
10.9 The rural water supply system likewise needs strengthening especially in areas which
cannot be covered by a piped water system due to difficult topography. The establishment of a
committee to promote rural water supply is necessary.
Table 10.3 Water Treatment Plant Development
Stage Plant Name/Location Capacity (m3/day)
First Stage WS-1 Thanh Tri 150,000
(2006 - 2011) WS-3 Thuong Thanh 150,000
WS-5 Dai Mach 200,000
Subtotal 500,000
Second Phase WS-2 Lien Mac 50,000
(2012 - 2020) WS-4 Thuong Thanh 100,000
WS-6 Dai Mach 100,000
Subtotal 250,000
Total (up to 2020) 750,000
Source: HAIDEP Study Team

1
Based on earlier studies and on the HAIDEP water quality survey results, the use of groundwater in some
southwestern parts of Hanoi as raw water for domestic use is no longer viable due to heavy pollution.

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Table 10.4 Water Treatment Facilities Development Plan

Daily Supply by Source
Target Development
Maximum Ground- Surface Balance
Year Project Total
Demand water Water
Existing Capacity 873 616 - 616
Present 1)
Reduction (99) - (99)
Ongoing project 204 - 204
VINACONEX - 1 - 200 200
2010
HAIDEP - 1, 3, 5 - 500 500
Subtotal 1,155 721 700 1,421 260
2015 VINACONEX - 2 1,477 - 200 1,621 145
2020 HAIDEP - 2, 4, 6 1,810 - 250 1,874 64
Source: HAIDEP Study Team.
1) Abandonment of groundwater intake.

Figure 10.1 Proposed Water Treatment Plants and their Service Coverage

Northern Water Supply Area

WS-5 (~2010)
200,000 m3 /d

WS-6 (~2020)
100,000 m3 /d

WS-2 (~2020)
50,000 m3 /d Southeast Water
Supply Area
Southwestern Water
WS-3 (~2010)
Supply Area 1 150,000 m3 /d

VINACONEX Water WS-4 (~2020)

Supply Area 100,000 m3 /d

rI
i ve
R 0
Da 0,00 Southwestern Water
20 r II
i ve Supply Area 2
R 0
Da 0,00
20 WS-1 (~2010)
150,000m3 /d

Source: HAIDEP Study Team.

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10.10 Transmission Improvement: Transmission pipelines which will be required in 2020

are outlined in Figure 10.2.2
Figure 10.2 Proposed Transmission Pipeline Network

Existing Pipe Line

Proposed Pipe Line

HAIDEP Water
Supply Area
Reservoir

VIWACO Water Supply

Area

N. Thang Long

WS-5,6
WS-3,4

WS-2

Thuong Cat 3

Cao Dinh Gia Lam

Ngoc Ha Long Yen

Mai Dich WS-1

Yen Phu

Ngo Si Lien

Ha Dinh
Nam Du

Tuong Mai

Phap Van

Source: HAIDEP Study Team.

2
The outline of the proposed transmission pipeline network was prepared in late 2005 when the master plan was
formulated; therefore the VIWACO water service area shown is separated from the HAIDEP system. The area
will be incorporated in the service area of the new water company being formed through a reorganization.

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Organizational Improvement
10.11 The Prime Minister’s Decision No. 94/2005/QD-TTg, of 5 May 2005, is a road map for
some SOEs in the urban water and sanitation sector of Hanoi City. The Decision ratifies the
restructuring and reorganization of various SOEs under the HPC, including HWBC and HWBC
No. 2. Reorganization plans for the HWBC and HWBC No. 2 have been prepared, following a
parent-subsidiary company model. The rationale for this conversion is for SOEs to operate in
areas with extraordinary economic and social disadvantages and where the private sector is
not interested in investing in. The reorganization is expected to result in less intervention from
TUPWS in the water sector. However, the HPC’s control over the new company will be
retained.
10.12 Under the reorganization plan, HWBC’s current administrative section and production
units (i.e. WTPs) will be under the parent company which will have three subsidiary groups: (i)
single-stockholder companies, (ii) joint-stock companies, whose majority voting powers lie with
the parent company; and (iii) associated companies, in which the parent company has a minor
stake. Water distribution companies will comprise the single-stockholder subsidiaries.
Construction and materials procurement companies will form the joint-stock companies.
Associated companies will include VIWACO, a water distribution company that covers part of
the southwestern area, which will use water supplied by VINACONEX.
10.13 The organizational structure for the new water company will depend on the progress of
facility development and the expansion of service areas. In setting the size of its staff, the
number of staff per 1,000 connections can be used as a basic unit. As of 2005, HWBC
employed about six staffers per 1,000 connections. HWBC No. 2 has about nine staffers per
1,000 connections. The new water company is expected to have fewer personnel. Supposing
that the number of connections will double by 2020 and the number of personnel per 1,000
connections will decrease to five, the number of personnel in 2020 should be around 3,500.
Table 10.5 Cost of Water Supply Plan
First Second Project
Area Item
Stage Stage Code
Southwest Design Capacity (m3/day) 150,000 50,000
Facilities1) 83,127 27,709
Construction WS-1
Land/Compensation 7,500 2,500
(US$ 000) WS-2
Subtotal 90,627 30,209
2)
O&M (US$ 000/yr) 1,643 2,162
Southeast Design Capacity (m3/day) 150,000 100,000
Facilities1) 102,066 34,920
Construction WS-3
Land/Compensation 6,900 33,124
(US$ 000) WS-4
Subtotal 108,966 68,044
O&M2) (US$ 000/yr) 1,643 2,679
North Design Capacity (m3/day) 200,000 100,000
1)
Facilities 144,337 72,168
Construction WS-5
Land/Compensation 9,200 4,600
(US$ 000) WS-6
Subtotal 153,537 76,768
2)
O&M (US$ 000/yr) 2,160 3,196
Construction 353,130 179,621
Total
O&M 5,446 8,037
Source: HAIDEP Study Team.
1) Including treatment plant and transmission and distribution line.
2) Including chemical, labor, and miscellaneous costs.

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10.2 Drainage System

Planning Conditions
10.14 All future urban areas with 400 km2 will be provided with a drainage system that can
protect them from inundations of up to 310 mm/2 days of rainfall or equivalent to a 10-year
return period intensity. This level of rainfall requires a total of 1,026ha of regulating reservoir
calculated based on a maximum drainage flow of 2.97 m3/s/km2.3
10.15 In formulating the drainage plan, the Decision No. 35 was referred to, which set a 90%
to 100% coverage of Hanoi’s urban centers by 2020. Other plans referred to include the 1998
Master Plan, the Urban Drainage and Wastewater Disposal Master Plan and the Urban
Environment Improvement Master Plan separately prepared under a 1995 and 2000 JICA
studies. Ongoing projects for the To Lich River basin (77.5km2) and the North Thang Long
area (29.5km2), both of which include pumping facilities, regulating reservoirs, drainage
channel improvement, and sewer construction, were also reviewed.
10.16 The development of an adequate drainage system in Hanoi requires large regulating
reservoirs and pumping stations due to the city’s flat topography and the rivers’ high water
levels, and these require huge investments.4 On the other hand, regulating reservoirs are
used several times a year during the rainy season. In order to use the space more effectively
and at the same time maximize the investments, multiple uses of the regulating reservoirs
must be considered. In other countries the reservoir space is also used as parks and
recreation areas.
Drainage System Plan
10.17 The To Lich River basin includes the urban core of Hanoi City and the West Lake
(about 930ha). Storm water in this basin naturally drains into the Nhue River through four
rivers (To Lich, Kim Nguu, Lu, and Set). Following the completion of the new drainage system,
storm water will be drained into the Red River by pumps with a 90 m3/s capacity through two
regulating reservoirs (Yen So Lake and Linh Dam totaling 224ha). Stage 1 of the drainage
project in the basin has been completed. Stage 2 will be completed in 2010.
10.18 The Nhue River basin in Hanoi City covers about 9,400ha. Traditionally, the Nhue
River is used for irrigation and drainage. According to MARD, the allowable discharge amount
is limited to 0.6 m3/s/km2 only because of the river’s limited water-holding capacity.
Multipurpose regulating reservoirs with large capacities are required to hold excessive storm
water.
10.19 When the water level of the Bac Hung Hai River becomes lower than three meters,
most of the storm water from Long Bien and Gia Lam districts naturally flows into it. However,
when the water level is higher than three meters, storm water in the basin will be pumped into
it, the Red River, or the Duong River
10.20 The urban development area in Dong Anh District is planned to be 86.8 km2 and is
divided into four basins.Storm water from two basins located at a relatively high elevation will
be discharged either through the Tay canal into the Cau River by pumps or into the Ca Lo
River by gravity. In parts of the lower basins, when the water levels in Thiep and Ngu Huyen
rivers are 6.5m or less, storm water can naturally drain into the said rivers and because of the
basins’ relatively high elevations, inundations, even during high water levels, will not be

3
JICA (1995), Drainage Master Plan Study.
4
Investments for the ongoing and committed projects up to 2010 total US$ 170 million. An additional US$ 100
million for land acquisition will be needed in the next 10 years.

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serious. However, downstream of the Ngu Huyen River outside Hanoi City, serious
inundations will occur. Proposed drainage measures for the downstream areas in cases where
the water level will rise more than 6.5m include the construction of a regulating reservoir and a
drainage pump station to drain water from the Ha Bac River into the Red River.5
10.21 The urban development promotion area for Soc Son District by 2020 is planned to be
6,090ha. Most of the area is located at relatively high elevations of about 10 to 15m. Storm
water in the area is expected to be drained into the Ca Lo River by gravity. A large-scale
regulating reservoir is not required in this area but drainage sewers and channels will be
installed along the roads.
Table 10.6 Proposed Drainage System

Regulating Required Pump

Area
Area Basin Reservoir Capacity Discharge Point
(km2)
(ha) (m3/sec)
1. To Lich 77.5 244 90 Red River
South of 2. Nhue River Left Basin1) 53.0 266 36 Nhue & Red
1)
Red 3. Nhue River Right Basin 40.0 212 24 Nhue & Branch
River 4. Thanh Tri 13.6 - - Old To Lich
Subtotal 184.1 722 150
5. Dong Anh1) 2) 86.8 118 44 Ca Lo, Red, Ngu Huyen
North of Red, Bac Hung Hai,
6. Long Bien-Gia Lam1) 90.3 186 98
Red Ngu Huyen
River 7. Soc Son 38.9 - - Ca Lo
Subtotal 216.0 304 142
Total 400.1 1,026 292
Source: HAIDEP Study Team.
1) Nhue River’s left and right basins, Dong Anh and Long Bien-Gia Lam districts have 5, 4, 4, and 3
subbasins, respectively.
2) Work is ongoing on 2,950ha under the JBIC-funded North Thang Long-Van Tri Urban Infrastructure
Project.

Table 10.7 Proposed Projects on Drainage System Development up to 2020

Service Area Project Cost

Code Project Title 2 Completion
(km ) (US$ million)
Drainage Project for To Lich River Basin
WD-1 77.5 239.7 - 2010
(Stage 2)
WD-2 Drainage Project for Nhue River Left Basin 53.0 456.4 - 2015
Drainage Project for Nhue River Right Basin
WD-3 28.3 249.5 - 2015
(Phase 1)
Drainage Project for Nhue River Right Basin
WD-4 11.7 113.3 - 2020
(Phase 2)
Drainage Project for Long Bien & Gia Lam
WD-5 37.3 250.0 - 2015
(Phase 1)
Drainage Project for Long Bien & Gia Lam
WD-6 53.0 309.9 - 2020
(Phase 2)
WD-7 Drainage Project for Dong Anh (Central Part) 57.3 274.2 - 2020
WD-8 Drainage Project for Soc Son 38.9 142.1 - 2020
WD-9 Drainage Project for Thanh Tri 13.6 49.4 - 2020
Total 370.6 km2 2,198.8
Source: HAIDEP Study Team.
Note: Land acquisition and compensation cost. is estimated about US$ 656 million, which is 30% of the
project cost. Physical contingency and price contingency are not included.

5
It is expected that after the completion of the North Thang Long - Van Tri Urban Infrastructure Development
Project, the drainage condition will improve.

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Figure 10.3 Implementation of Drainage System Development Plan

Development Area up to 2010

Development Area up to 2015
Development Area up to 2020

Source: HAIDEP Study Team.

Figure 10.4 Proposed Drainage System Development

DA-1 (1820 ha)

Kenh Canal
PTay Lake

DA-2 (920 ha)

Van Tri Lake
To Lich River
DA-3 (5940 ha)
Basin (7,750 ha)

To
Li
ch
R Thiep R.
Lu River

iv
e r Ngu Huyen R.
Set River

Kim Nguu River

Nhue River Hoang Giang R.

Linh Dam Lake

Ha Bac R.
LG-4 (1480 ha)
172 ha
P
Thang Liet Gate 72.2 ha
Yen So Reservoir

To Lich River Basin Dong Anh

LG-4 (1480 ha) NE-1 (536 ha)

NW-1 (2203 ha)
LG-1 (730 ha)

Thuy Giang R.
P NE-2 (1349 ha)
LG-2 (3000 ha) P

NW-2 (628 ha) Nhue River

P
NE-3 (1292 ha)
Day River
Thien Duc R.
LG-3 (3820 ha) To Lich River
P
P
Dau Nam R.
Cau Nga R.
P Cau Bay R. NE-4 (1096 ha)
NW-3 (818 ha)
P
P

NW-3 (356 ha)

P
NE-5 (1030 ha)

Bac Hung Hai R. : Planning area for park

: Planning area for park P : Pump Station P

P : Pump Station

Long Bien and Gia Lam Districts Nhue River Basin

Source: HAIDEP Study Team.

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Figure 10.5 Image of Multipurpose Reservoir

Multipurpose Reservoir can Multipurpose Reservoir will

be used as park/sport be used as flood regulating
ground in dry weather day reservoir
Planning Park Area

P P
Closed Gate Open Gate
Open Gate Closed Gate
Nhue River Nhue River
Water Level raising to
more than 5 m

Dry Weather Day Rainy Day

Source: HAIDEP Study Team.

Figure 10.6 Example of Multipurpose Flood Regulating Reservoir in Japan

Source: HAIDEP Study Team.

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10.3 Sewerage System

Planning Conditions
10.22 As the development of an adequate sewerage system requires huge investments and
a lengthy implementation time6, setting priorities and clear criteria for investments is important.
Urban areas with an expected population of 100 persons/ha or more will be given initial priority,
but final prioritization will be based on factors such as water supply amount, affordability of
user charges, environmental standards to be met, groundwater use, and so on.
10.23 Development of Two Levels of Wastewater Treatment: A large number of buildings
have already been constructed as of now even before a sewerage system could be provided.
Hence, as a realistic measure, the development of two types of treatment process is proposed.
One is a sewerage system (a centralized wastewater treatment system) with secondary or
more advanced treatment processes, and the other is a septic tank for primary treatment as an
initial measure which can later be switched to the advanced system after its completion.
10.24 Collection System: In the urban core, storm water and wastewater pipes are
combined. It is hardly possible to separate them. Hence sewerage systems will be developed
by connecting the existing combined drainage system with wastewater interceptors. In the dry
season, wastewater will be transported to wastewater treatment plants (WWTPs), and during
storms, it will be mixed with rain water and drained into rivers. In the new urban areas, a
separated sewerage system is proposed to manage wastewater and storm water separately.
The system will require a separated sewer network to directly connect to households.
10.25 Social and Environmental Considerations: In general, wastewater treatment plants
have negative effects on their surrounding communities either through the emission of odors
or by their mere unsanitary conditions, although both can be improved or remedied through
suitable designs and operation. In August 2005, two pilot projects located in residential areas
of Truc Bac and Kim Lien were constructed with deodorization facilities. Experiences from
these pilot plants can be used in the design and operation of new plants.
Table 10.8 Proposed Sewerage System up to 2020
Population in Wastewater
Project Area Proposed Investment Cost
Location Basin Service Area, Treatment Capacity
Code (ha) Collection System (US$ mil.)
2020 (000) (m /day)
3

South WW-1 West Lake 310 Separated 42 12,300 28.9

of Red WW-2 Bay Mau Lake 220 Combined 41 13,300 32.0
River WW-3 Upper Kim Nguu River 750 Combined 250 75,000 167.8
WW-4 Lu River 470 Combined 142 45,000 137.8
WW-5 Upper To Lich River 1,300 Combined 299 90,000 231.1
WW-6 Lower Kim Nguu River 1,700 Combined 287 90,000 138.2
WW-7 Lower To Lich River 2,500 Separated 441 140,000 53.2
WW-8 Nhue River Left Basin 3,980 Separated 455 140,000 249.6
WW-9 Nhue River Right Basin 1,700 Separated 190 60,000 132.1
Subtotal 12,930 2,147 665,600 1,170.7
North WW-10 Long Bien & Gia Lam 3,730 Separated 343 110,000 204.0
of Red --- North Thang Long 1,300 Separated 100 38,000 -
River WW-11 North Thang Long Extension 500 Separated 60 20,000 36.4
WW-12 Central Dong Anh 2,200 Separated 198 60,000 145.7
Subtotal 7,730 701 228,000 386.1
Total 20,660 2,848 893,600 1,556.8
Source: HAIDEP Study Team.
1) The North Thang Long Project was completed with 38,000 m3/day of treatment capacity and a service area of 1,300ha
2) Priority projects to be completed by 2010.

6
For example, Tokyo took almost 100 years to complete its sewerage system with a secondary treatment level.

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Figure 10.7 Implementation of the Sewerage System Development Plan

Development Area up to 2010

Development Area up to 2015
Development Area up to 2020

Source: HAIDEP Study Team.

Figure 10.8 Proposed Sewerage System Development

: Wastewater Treatment Plant

WW-12: Sewerage Project
: Sewer Pipe
for Central Dong Anh
South Thang North Tang Long –
Long Area Van Tri Urban
Development Area
WW-9
WW-10
WW-8 Van Tri Lake

WW-5
WW-2
WW-4 WW-11: North Tang
WW-3 Long Sewerage
Expansion Project

WW-7
WW-6

Wastewater Treatment Plant North Tang Long – Van Tri Urban

Sewer pipe Infrastructure Project (On-going)

To Lich and Nhue River Basins and Long Bien District Dong Anh

Source: HAIDEP Study Team.

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10.4 Lake Improvement

Main Issues
10.26 There were 900 lakes and ponds in Hanoi with areas larger than a hectare. But this
number and their areas have decreased due to various development projects and
encroachments which have also caused the deterioration of hygienic conditions around the
lakes, lake water quality, and surrounding landscape.7 Wastewater interceptor systems have
been introduced only in some lakes (see Figure 10.9).
10.27 Lakes and ponds are very important to Hanoi. They have storm water retention
function, enhance landscape, and provide amenities, recreational space, aquaculture,
agriculture, and as open space in congested urban areas. They are valuable potential
resources to promote enhanced environment and image of the city. However, they are
inadequately managed except for the major ones. While many organizations are involved in
lake management such as HSDC, district and commune offices and various companies, there
is no comprehensive and integrated lake improvement plan.
Improvement Plan
10.28 Lake and pond management program must involve the following objectives:
(i) Protect lakes from illegal construction, encroachments, solid waste dumping, etc.
(ii) Develop lakefronts with promenades/walkways, green spaces, and other amenities
around the lakes.
(iii) Increase storm water retention capacities of the lakes by increasing their effective depths.
(iv) Improve water quality of the lakes.
10.29 A lake improvement strategy was worked out for main areas including the To Lich and
the Nhue river basins, as well as for Long Bien, Gia
Lam, and Dong Anh districts in integration with the
overall drainage system development plan. In order to
keep water flowing in rivers and lakes, it is proposed
that they be linked and that the Red River water be
diverted to provide environmental maintenance (see
figures 9.10 and 9.11).
10.30 Necessary measures for improved lake
management include the following: Lake Condition before Restoration ( 25 August 2003).
(i) Control of water levels to regulate floods through
pumps and gates in the lakes.
(ii) Maintenance of lake structures such as
revetments, pumps, and gates.
(iii) Monitoring and improvement of water quality.
(iv) Cleaning of lake water surfaces and surrounding
areas.
(v) Management of commercial, cultural, and Lake Condition after Restoration (12 July 2005).
tourism activities in/around the lakes. Note: Pictures taken by the HAIDEP Study Team.
(vi) Strengthening of lake management organization and institutional arrangements.

7
Results of a water quality survey conducted in HAIDEP on 50 lakes in existing urban areas indicated that water
quality in 23 lakes is substandard.

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Figure 10.9 Typical Structural Improvement of a Lake

Bank protection in upper part
should be designed in
consideration of landscape.

Flood Storage Depth Promenade

( <3 m)
Berm (3~5 m)
Design High WL

Normal WL
Original GL
Pre-cast RC Block
Gravel Bedding Planting tree or
fencing around the
Wet Masonry Revetment lake.
Sand Bedding
Deposits should
be dredged. Gravel Bedding

Source: HAIDEP Study Team.

Figure 10.10 Structural Countermeasures for Improvement of Water Quality

Diversion
Connection Chamber
Houses Lake should be dried up and
to interceptor (proposed)
(wastewater discharge) dredged

Ex sewer Fresh water (rain) should

A be refilled.
’

Lake
Existing Sewer, Channel

Ex. sewer
Original Bed

Revetment
(proposed) Interceptor
Lake Interceptor (proposed)
Outlet
Ex sewer Diversion
Chamber Section A-A’

Source: HAIDEP Study Team.

Figure 10.11 Layout of the Diversion of Environmental Maintenance Flow

: Diversion Pipe P
: Diversion Pipe
: Diversion Direction : Diversion Direction
P : Pump Station Alternative-a P
: Pump Station
P P

Alternative-a

P
P

P P

Plan 1: Environmental Water for Lakes/Rivers Plan 2: Environmental Water for Rivers
Source: HAIDEP Study Team.
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10.5 Flood Protection

Main Issues
10.31 Floodwaters from the Red River are a constant threat to the city. While the average
highest water level during the last century reached around 11m, the height of urban areas is
about 9m in Hoan Kiem. The 1971 flood reached 14m high and caused serious damage to the
city.
10.32 From 1998 to 2002 dyke strengthening projects were carried out on the right bank of
the Red River with ADB financing and consisted of the following: (i) constructing walls and
placing additional soil at the foot of dykes; (ii) pavement improvement; and (iii) grouting to fill
voids in embankments, etc. The freeboard (difference between crest elevation and design
water level) was also increased in these sections. Dyke portions not covered by the project
have been left as they were, including those along the Duong River. This flood protection
component aimed to prevent flooding in Hanoi through structural/physical and nonstructural/
nonphysical measures.
10.33 However, about 160,000 people residing in areas outside the dyke remain vulnerable
to flooding. And as even as they are potential flood victims, they also cause various negative
impacts such as riverbank erosion and water pollution.
Figure 10.12 Annual Highest Water Levels of the Red River in Long Bien, 1902-2004

15.0
14.0
Water Level (EL-m)

13.0
12.0
11.0
10.0
9.0
8.0
7.0 Water Level (EL-m) 5-Year Moving Average Trend
6.0
5.0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Year

Source: HAIDEP Study Team.

Table 10.9 Dimensions of Dykes along the Red and Duong Rivers

Red River Duong River

Description
Left Bank Right Bank Left Bank Right Bank
1. Beginning Point km49+100 km48+575 Km0+600 km1+241
(Location) (WH-1) (Dong Da) (WH-13) (Gia Thuong)
2. Ending Point Km76+615 Km85+492 Km21+919 Km20+795
(Location) (Bat Trang) (WH-34) (Thinh Liet) (Chi Dong)
3. Total Length 27.515km 36.917km 21.319 19.554km
(22.547km) (21.447km)
4. Crest Elevation EL.14 to EL.14 to EL.11.6 to El.12.2 to 14.5m
14.5m 14.5/15.2m 15.2m
5. Crest Width 6m 6m 5m 5-7m
6. Slope
− Riverside 1/2 - 1/3 1/2 - 1/3 1/2 1/2 - 1/3
− Landside 1/2 - 1.3 1/2 - 1/3 1/3 1/2 - 1/3
Source: HAIDEP Study Team.
Notes: 1) Total length was calculated by the Study Team by referring to the 1994 dyke system map with a
scale of 1:100,000. Those in parentheses were abstracted from the 1998 Master Plan.
2) WH = watch-house.

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Figure 10.13 Dyke Alignment around Hanoi City

Dyke Length
River
Left Bank Right Bank
Red km 49+100 (Watch-house 1) ~ km 48+575 (Dong Da) ~
River km 76+615 (Bat Trang) km 85+492 (Watch-house 34)
Total Length = 27.515km Total Length = 36.917km
Duong km 0+600 (Watch-house) 13 ~ km 1+241 (Gia Thuong) ~ km
River km 21+919 (Thinh Lien) 20+795 (Chi Dong)
Total Length = 21.319km Total Length = 19.554km

Source: HAIDEP Study Team.

Impact of Outside-the-Dyke Area Development on Red River Water Flow

10.34 Flood flow or flood discharge capacity of the areas was assessed through a
conventional method. The width of the Red River, between the Long Bien and Chuong Duong
bridges, were estimated based on a topographic map with a scale of 1 to 10,000. The depth
was based on the lowest water level. Ground elevation was also estimated as explained above
on the elevation of high water channels.
10.35 The impact of development in areas outside the dyke on flood flow in the Red River will
be most critical at the narrowest section of the Red River between the Long Bien and Chuong
Duong bridges. The river cross-section in this area was estimated based on a topographic
map and the record of water levels (see Figure 10.14). The discharge of the flood flow with the
highest water levels recorded in 1969 and 1971 was estimated for this section and for the
areas outside the dyke (see Table 10.10). Results indicate that only 2 to 3% of flood waters in
the Red River flow to areas outside the dyke.
10.36 Although the developments in areas outside the dyke will likewise not hinder flood flow
in the Red River significantly, there are some critical issues that must be addressed
comprehensively from the urban development and management viewpoints, such as the:
(i) Unhygienic conditions due to frequent inundations.
(ii) Difficulty in answering to emergency situations.
(iii) Erosion of slopes between high and low water channels due to high water velocity.

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Figure 10.14 Assumed Cross-section of Red River between Long Bien and Chuong Duong
Bridges

160m 525m 325m 225m 250m

Area Main Sand Main4) Area

(Area 1) (Area 2) (Area 3) (Area (Area 5)
outside channel bank channel outside
of dyke of dyke

El. 9.5m El. 9.5m

El. 7.0m

El. 1.0m
Source: HAIDEP Study Team.

Table 10.10 Estimated Discharge during Floods in High Water Channels and
between Whole Sections

Estimated Discharge (m3/sec)

Water Level Section between Long (B)/(A)
Date Areas Outside WSG1)
(m) Bien & Chuong Duong (%)
the Dyke (B)
Bridges (A)
Aug.19,1969 13.12 17,300 345 2 1:23,000
Aug.22,1971 14.02 19,600 500 3 1:23,500
Source: HAIDEP Study Team.
1) Water surface gradient (WSG) was obtained through trial estimates of given water levels and
discharges in the section between Long Bien and Chuong Duong bridges.

Proposed Improvement Direction

10.37 The proposed measures are: (i) to strengthen dykes around Hanoi, secure remaining
heights, and strengthen deteriorated embankments, (ii) to develop an early warning and flood
fighting/evacuation system to ensure a timely and periodic warning system, (iii) to conduct a
study on the redevelopment of the Day River flood diversion channel to divert flood upstream
and help protect Hanoi.
Table 10.11 Potential Flood Protection Projects

Project
Project Title Project Purpose/Profile
No.
WF-1 Red River Dyke This project aims at strengthening works with the
Strengthening Project same specifications as those in the ADB project to
(stage 2) ensure safety against flood on the right bank of the
Red River.
WF-2 Duong River Dyke Following the project (WF-1), strengthening works
Strengthening Project with the same specifications as those in the ADB
(stage 1) project to ensure safety against flood on the right
bank of the Duong River.
WF-3 Duong River Dyke Following the project (WF-2), strengthening works
Strengthening Project with same specifications as those in the ADB
(stage 2) project to ensure safety against flood on the left
bank of the Duong River.
WF-4 Redevelopment of Day This project aims at the regeneration of the function
River Flood Diversion of the Day River including a diversion scheme from
Channel the Nhue River to the Day River.
WF-5 Development of Flood This project aims at introducing methods and
Early Warning System techniques for the timely dissemination of flood
alarms from the middle to the lower reaches as well
as increasing the capabilities in early flood warning.
Source: HAIDEP Study Team.

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10.6 Solid Waste Management

Main Issues
10.38 There are two master plans on solid waste management (SWM), the 1998 Master Plan
and the Environment Master Plan up to 2020 prepared by JICA (JICA EMP). Except for some
points, the contents of both master plans are almost identical due to the similarities in the
prepared terms. Estimates on the total amount of waste generation were 696,613 tons/year for
2005 and 1,421,868 tons/year for 2020 in the 1998 Master Plan. Under the JICA EMP, the
estimate is 1,173,110 tons/year in 2020 based on that year’s population forecast of about 3.5
million. This estimate will increase if it is based on a population of 4.5 million, according to the
HAIDEP Master Plan.
10.39 In Nam Son, a large-sized landfill has been constructed with a receiving capacity of
12.4 million m3 (Phase 2). Although it has been estimated that the site’s capacity could last
until January 2018, it can be full even before that year because wastes are expected to
increase more than what was forecasted in both master plans due to future population
growths.
10.40 Regarding medical wastes, infectious wastes are disposed of in the existing incinerator
in Cau Dien, whose capacity should be expanded.
10.41 A composting plant with an annual treatment capacity of 250,000 tons was proposed to
reduce waste. However, only one with a capacity of 50,000 tons was constructed. Therefore,
one of the most significant problems is that capacity for solid waste disposal would not be
enough to handle the volume or quantity of waste generation in the near future. According to
the above estimate, the Nam Son landfill will be closed by 2012 when no mitigating measure is
put in place. This will be more than 5 to 6 years earlier than its original schedule of 2018. If
some waste reduction alternatives, such as composting, materials recovery or incineration, will
be introduced, the lifespan of the landfill may be prolonged by a few years.
Strategies and Proposed Projects
10.42 Following the National Environmental Strategy, the waste reduction rate ( the rate of
the amount of reused and recycled waste by the amount of total collected waste) should reach
more than 30% until 2020 through the promotion of the three Rs (reduce, reuse, recycle).
10.43 Based on the proposed waste flow, possible facilities may be needed to implement the
measures on solid waste management (see Table 10.12) including transfer stations, recycling
centers, composting plants, incinerators, or other intermediate treatment plants, although a
detailed feasibility study on such treatment facilities is definitely needed.
Table 10.12 Proposed Facilities for Solid Waste Management

Objective Proposed Project (Facility)

Effectively collect and transport waste Construction of transfer stations with suitable equipment and vehicles.
Secure capacity for final waste Capacity expansion of Nam Son landfill (Phase 3).
disposal Construction of other landfill sites if the capacity of Nam Son landfill is
not enough.
Reduce waste for collection and Construction of recycling center, which is mainly waste separation and
transportation or final disposal. compacting/packaging equipment for recyclable materials.
Construction of intermediate treatment facilities such as composting
facilities, incinerators or other facilities based on the pilot scale
experiences or detail facility plan including feasibility study.
Introduction of source separation system for efficient waste reduction
at above facilities.
Source: HAIDEP Study Team.

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Figure 10.15 Forecasts on Accumulated Waste Volume in Nam Son Landfill

Accumulated Waste Amount (ton)

30,000,000
Prediction without Waste Required Capacity Expansion
Reduction Measure
25,000,000
Prediction with Waste
Reduction Measure
20,000,000
Capacity of Nam Son Landfill
15,000,000 (Phase 2)

10,000,000
JICA EMP
Projection
5,000,000
Closing Year

0
2000 2005 2010(Year) 2015 2020 2025

Source: HAIDEP Study Team.

Figure 10.16 Proposed Solid Waste Management Flow in Hanoi City, 2020

Recycling Market
252 t/d (5% of MSW) [Source Reduction]

456 tons/day Nam Son Waste Treatment Complex

Municipal Solid 433 t/d 60 t/d Hazardous
Incinerator
Waste from Industrial Waste
Suburban District Treatment Plant
100 t/d
Composting
Municipal Solid Regional Waste Treatment Complex
Waste from Seven 2,810 t/d 2,810 t/d 40 t/d 660t/dt/d
Urban District 4,360 t/d Transfer Station(s)

4,589 tons/day 500 t/d 150 t/d 273 t/d

Recycling Center(s)
Nam Son Landfill Nam Son Landfill
500 t/d 200 t/d
Composting Plant(s) (Phase 2) (Phase 3)

550 t/d 55 t/d

Incineration Plant(s)

3,215 t/d
Other Central
Landfill
Total Collected Waste 5,045 t/d
Total Landfilled Waste 3,534 t/d Common Final Disposal Sites
Waste Reduction Rate 30 %

Source: HAIDEP Study Team.

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10.7 Cemetery
Main Issues
10.44 In general, cemeteries are frowned upon in the city, and probably in the whole of
Vietnam, since people look at them as unhealthy (eg they believe that ground burials pollute
groundwater cemeteries), an outlook which is compounded by the traditional stark image of a
cemetery. Therefore, securing land for new cemeteries around Hanoi, especially those near
residential areas, has become very difficult due to objections from nearby residents. The main
issues thus are as follows:
(i) Limited capacity for new graves in the existing cemeteries in and around Hanoi City.
(ii) Increasing number of existing graves that need to be relocated, which are presently
scattered in and around the urban center, due to land requirements for future housing and
infrastructure development.
(iii) Increase in the residents in Hanoi City who desire to establish their family member’s
graves in and around Hanoi City rather than in their home provinces,
(iv) Less available lands for cemeteries and graveyards in new settlements due to the high
land value in such areas.
Possible Measures based on Japan’s Experiences
10.45 Referencing Japan’s past experiences on cemetery development and urban growth,
the following are the recommendations for cemetery development in and around Hanoi City:
(i) Rational land use by relocating and integrating small cemeteries managed by local
authorities and other graveyards scattered all over the city, especially those located in
sites in and around the city center which are potential sites for future development.
(ii) Involvement of potential project-affected communities, from planning the development of
new cemeteries and/or the expansion of existing ones, should be actively promoted.
(iii) Development of cemetery gardens/parks combined with environmental buffer zones
should be promoted, especially for future urban development.
(iv) Laws and regulations on technical and social standards for cemetery development,
including necessary environmental conditions and measures, public involvement
processes in the planning stage, as well as permission procedures, should be enacted.
(v) The practice of cremation should be encouraged for its potential to prevent environmental
pollution, e.g. the spread of infectious diseases through groundwater contamination in the
case of ground burials. An added benefit from adopting cremation is the smaller land it
requires compared with traditional burial practices. However, it should be considered that
the selection of burial methods is still dependent on culture and religion.
Proposed Options
10.46 It is proposed that the current practice of ground burials be modified in a way that
common high-density, large-scale cemeteries are accepted and proper locations are found
within reasonable distances from Hanoi. It is the HAIDEP Study Team’s opinion that the
cemeteries be provided in green belts as proposed in Chapter 12 Environment.

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10.8 Urban Water and Sanitation Development Strategies and Actions

10.47 The proposed strategies and actions for urban water and sanitation development are
explained in Table 10.13.
Table 10.13 Proposed Urban Water and Sanitation Development Strategies and Actions

Strategy Action Monitoring Indicator

E1 Enhance public E11 Establish “Water Forum” with participation of extensive • Progress of actions
awareness and stakeholders to discuss and disseminate water, water
understanding of environment and related issues
water, sanitation and E12 Conduct regular media campaign on water and
related environmental sanitation
issues
E2 Ensure stable supply E21 Address water pollution issues immediately • Water quality
of safe water for all E22 Expand water supply coverage • Water supply coverage
E23 Shift gradually from groundwater to surface water as • Water loss
raw water source • % of surface water
E24 Improve operational efficiency of water supply
E3 Promote improvement E31 Improve drainage conditions • Coverage
of sanitary conditions E32 Develop sewerage systems • Degree of inundations
in urban areas E33 Improve solid waste management • Progress of actions
E34 Establish workable mechanism for consolidation of
graveyards
E4 Promote improvement E41 Monitor water quality of lakes, ponds, and rivers in • Water quality
of water quality of Hanoi • Progress of actions
lakes, ponds, and E42 Develop water quality improvement measures
rivers E43 Establish common guidelines on waterfront use and
management in coordination with urban land use and
communities
E5 Protect urban areas E51 Ensure urban areas shall be protected from flood • Degree of floor
from flood and E52 Establish effective early warning system • No of households in
promote disaster E53 Redevelop outside-of-dyke area outside of dyke area
preparedness
Source: HAIDEP Study Team

10.48 Of the proposed actions, those with strategic importance are the following:
(i) Development of surface water resources and related water distribution systems
(ii) Development of drainage systems with multipurpose flood protection reservoir
(iii) Development of sewerage system for the urban core
(iv) Development of water flow diversion system for environmental maintenance of rivers and
lakes

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11 HOUSING AND LIVING CONDITIONS

11.1 Housing
Main Issues
11.1 Affordable housing is a primary concern and interest of the people. The supply of
housing without due consideration of the affordability levels of target users will amplify social
discrepancies and may waste investments. Informal and often illegal supply of substandard
housing can put lives at risk and can degrade the living conditions in neighborhoods. Thus in
housing provision, the following must be attended to:
(i) Ensure safety, healthiness, amenity, and convenience of the people.
(ii) Ensure individual housing to form an integral part of the desired urban areas.
(iii) Establish effective role-sharing between private and public sectors.
11.2 The most important and urgent issue is to develop housing stocks, either private or
public, in response to increasing housing demand. The future required housing stocks far
exceed the housing stocks that have been developed in the last few years. Therefore
Alternative development mechanism is required, where many other factors must be
incorporated such as supply of lands, design standards, access to housing loans, incentives
and conditions for developers, government subsidy, etc.
11.3 The primary focus of the government must be placed on affordable housing for
low-income and other handicapped groups. At present, there is no sufficient mechanism to
supply affordable housing, particularly rental housing. Constant direct subsidy is neither
sustainable nor equitable. Comprehensive mechanism is required for social housing
development, including administrative arrangement with clear functional demarcation among
related agencies, formulation of formal real estate market particularly for rental housing, and
financial support both for suppliers and buyers.
11.4 In addition to the supply of new housing in new areas, rebuilding and improvement of
housing in existing urban areas and villages are other issues that must be addressed clearly.
In many parts of existing urban areas, roads are narrow, drainage is inadequate, public space
is lacking, structure and facilities are poorly maintained, all of which contributed to worsening
of the living conditions. Simple scrap and build approach is neither feasible nor advisable.
Improvement of housing in these areas must be addressed as an integral part of urban area
development/redevelopment.
Future Need for Housing
11.5 Future demand of housing is large. A total of about 500,000 units with 46 to 54 million
m2 of floor area need to be supplied by 2020. On average about 33,000 units with 3.1 to 3.6
million m2 of floor area need to be supplied annually. Demand is composed of new building
and rebuilding of old and small housing. Demand due to resettlement as well as demand due
to in-migrating students and workers is increasing.
11.6 While future demand is large in quantity, there is scarce information on what types of
housing with what level of quality and prices, the people with different socio-economic features
such as household composition, income, etc. Moreover, the results of HIS conducted in
HAIDEP indicates that although the space is a main concern people also consider other
function such as air flow, price, structure, location etc. are important, which vary by type of
households and their location of housing.

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11.7 Demand forecast for affordability level has shown that people’s affordability will remain
quite low under the current level of housing market. 77% of households could not afford to rent
houses with a floor area of 30m2 at market prices, which is expected to decrease to 38% by
2020. As for house purchase, almost 95% of household as of 2005 cannot afford houses with
a floor area of 30m2, but this will decrease to 69% by 2020.
Proposed Development Direction
11.8 Government’s role in the supply of housing include the following: (i) to formulate
comprehensive and phased housing development program with attainable development target,
(ii) to establish a sustainable mechanism particularly on the supply of affordable housing, (iii)
to improve current institutional mechanisms for the private sector to supply affordable housing,
(iv) to expand financial access for affordable housing provision, and (v) to prepare realistic
design standards for affordable housing.
11.9 Various alternatives for development mechanism are required with necessary
government support, in order to narrow the current demand-supply gap and provide affordable
housing. Housing development shall be promoted through (i) redevelopment of existing urban
areas, (ii) development of land for housing, and (iii) project-type new urban development.
11.10 Social housing provision should be promoted with the following actions: (i)
development of low-cost housing, (ii) formulation of public housing cooperation, (iii)
development of rental housing market, and (iv) criteria for distribution of social housing.
11.11 Institutional arrangements are necessary to further promote housing development in
Hanoi. They include: (i) effective housing management system including housing registration
system, housing information, and housing performance indicators, (ii) expansion of formal
housing market including enforcement of legal housing transaction and second-hand housing
market, (iii) strengthening of housing financing for individuals to increase people’s purchasing
power and thus to activate housing market and facilitate re-housing process, and (iv)
improvement of housing management system for high-rise condominiums.

The various faces of living conditions in Hanoi.

Note: Pictures were taken by the HAIDEP Study Team.

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11.2 Living Conditions

Main Issues
11.12 Based on a method adopted in the Urban Karte (see Chapter 2.9), the people in urban
areas have a relatively satisfactory assessment of their living conditions, albeit in varying
degrees per locality. This, however, does not mean the existing conditions are as fine as they
should be. In reality the assessment results of the objective indicators of living conditions in
Hanoi are relatively low compared to benchmarks set in counterpart cities in Asia.
11.13 There are certain areas in Hanoi where the living environment has deteriorated and for
which rebuilding is the most appropriate measure to improve the situation. These areas
include old public housing areas, many parts of the areas outside the dyke, existing urban
villages, and even parts of the Ancient Quarter. These areas are transforming quickly due to
the implementation of formal projects, various informal developments, and individual
investments. These developments, however, do not always guarantee the improvement of the
overall living environment in affected areas. In fact, there are cases when such developments
have caused environmental degradation.
11.14 The current institutional framework for urban development also lacks the proper
mechanism to improve the living environment due to the lack of an effective zoning, planning,
and development control and technical guidelines as well as support measures especially for
developments initiated by the private sector.
Proposed Development Direction
11.15 The improvement of living conditions must be attended to comprehensively, because
the quality of living conditions can only be guaranteed when key elements, such as safety,
convenience, healthiness, and amenity, are improved in a balanced manner. It is also of note
that the required measures to improve the living conditions of an area require both city- and
local-level action. For example, transportation and drainage improvement must be done in
wider areas, while community parks and rebuilding of old housing can be reconsidered in
narrow areas.
11.16 Rebuilding or renewal of existing built-up areas is becoming more and more important
in the future to improve living conditions and promote more effective land use. For this,
effective development methods, such as land readjustment and urban renewal, need to be
worked in a way that they fit Hanoi’s conditions.
11.17 At the city level, various projects of the different sectors, e.g. roads, drainage, roadside
urban developments, etc., must be implemented in a coordinated manner. The development of
housing estates/complexes, for example, must also improve the environment of adjoining
areas. Moreover, an urban area development must not focus on buildings and physical
infrastructure alone, but should cover services and management matters to realize the desired
living environment. Proper planning and institutional framework are therefore of paramount
importance.
11.18 A big part of the improvement of the living environment can be done at the community
level, as is already practiced in many parts of Hanoi such as street sweeping, drainage
cleaning, and garbage collection. Whatever their respective situations, communities should
take the initiative in identifying problems and issues which they can resolve by themselves or
by the city authorities.

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11.3 Housing and Living Conditions Development Strategies and Actions

11.19 The demand-supply gap in housing has been quickly widening, especially in the
medium- to low-income groups. The city is requested to establish urgently comprehensive
housing policy. While the interest of individuals and the private sector in housing investments
is large and the purchasing power is ever-growing, the existing housing supply system
involves various weaknesses in terms of institutional, technical, and financial aspects. Housing
provision must also be looked into as part of improving the overall living environment. The
main strategies and actions were identified, as shown in Table 11.1.
Table 11.1 Proposed Housing and Living Conditions Development Strategies and Actions

Strategy Action Monitoring Indicator

F1 Establish F11 Identify existing and future housing market together with • Effective housing policy
coordinated housing supply mechanism to define issues and agenda • Effective institutional
housing policy F12 Establish clear policy on role-sharing between public and framework
private sectors in housing supply • Share of private sector in
F13 Establish adequate institutions to promote private formal housing provision
sector participation in the housing market
F2 Establish concrete F21 Identify types of affordable housing for different • Matching demand
mechanism to categories of customers • Adequacy of design
ensure affordable F22 Develop adequate design standards of affordable housing standards
housing for to improve living conditions • Workable supply
low-income groups F23 Establish adequate mechanism to supply affordable mechanism
housing by both public and private sectors
F3 Provide adequate F31 Formulate basic sustainable redevelopment methods for • Workable redevelopment
supportive old public housing areas on equitable sharing of costs mechanism
measures to rebuild and benefits between residents and government • Number of redeveloped
old public housing F32 Redevelop old public housing areas to benefit residents houses
and serve public interest
F33 Introduce PFI (private financing initiatives) schemes
F4 Establish improved F41 Improve existing registration system • Progress of actions
mechanism for F42 Introduce land readjustment mechanism to define land
smooth supply of issues and develop housing areas
lands for housing
F5 Establish practical F51 Develop comprehensive living conditions assessment • Progress of actions
living environmental methods (ie urban karte)
improvement F52 Establish practical mechanism to improve the living
mechanism based environment based on F51
on comprehensive F53 Establish participatory mechanism to improve living
assessment of conditions at community level
living conditions at
community level
Source: HAIDEP Study Team.

11.20 Actions with strategic importance are as follows:

(i) Establishment of policy and institutional framework for sustainable provision of affordable
housing
(ii) Establishment of participatory monitoring system of living conditions at community level
(iii) Improvement of technical standards for buildings and their maintenance

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12 ENVIRONMENT
Importance of Environment
12.1 Environment is the sole foundation for the city’s sustainable development, especially
since Hanoi is endowed with diverse and distinct natural assets as well as a rich cultural
heritage that spans over a thousand years. The resulting fusion of natural, cultural, and social
environment, form the core of Hanoi and must therefore be preserved and enhanced for future
generations.
12.2 However, under rapid and strong urbanization and economic development pressure,
environmental degradation has become an unfortunate consequence. The coverage of
greeneries and open space is decreasing. Prime agriculture lands are being encroached upon,
air quality is worsening, contamination of groundwater is spreading, biodiversity is being lost,
and lakes and ponds are being reclaimed. Social conflicts increase due to forced settlement
and in-migration, and traditional cultural values are being lost in the process. The impacts of
urbanization and industrialization are so huge that proper measures need to be taken by the
government and all related stakeholders at the regional, city, and local levels.
12.3 Environmental aspects must be more effectively incorporated in urban planning and
development and must encompass all subsectors, because environment is not an isolated
issue and is always a part of development activities in the city.
Establishment of Environmental Zones and Green Belts
12.4 Environmental and green zones form the foundation for urban development in Hanoi
and its adjoining areas. These zones are composed of important resources, namely: (i)
greeneries including forests, nature parks, parks, agricultural lands, etc.; (ii) water formations
including rivers, lakes, and ponds; (iii) cultural heritage assets including Thang Long and Co
Loa citadels and other assets spread all over the city and region; and (iv) critical hazard areas.
The identification of environmental and green zone does not necessarily mean that
developments within these areas will be restricted. It is merely desired that such areas will be
adequately planned and developed in a way that the environment is preserved and sustained
and the negative impacts of potential hazards are reduced (see Figure 12.1).
Mapping of Hazard Areas and Land Development Suitability
12.5 Environmental conditions of Hanoi were categorically analyzed. A hazard map was
prepared and land conditions for development suitability were evaluated. 1 Other
environmental features such as rivers, lakes and ponds, greenery resources including forest
and park, and agricultural lands were also analyzed (see figures 12.2 and 12.3). By overlaying
these environmental components, a comprehensive environmental zoning can be formulated
which provides a useful input to land-use planning.
Environmental and Social Considerations
12.6 Vietnam as well as JICA practices strategic environmental assessment not only for
projects but also for the process of planning. In HAIDEP, environmental and social
considerations were undertaken in accordance with the JICA environmental guidelines.

1
Thirteen factors were selected for the analysis namely: topography (slope, elevation), geodynamics (heave/
subsidence, density of fault or distance to fault), engineering geology (surfical geology), groundwater (depth to
groundwater level, corrosiveness of groundwater, distance to intensive groundwater extraction area), geological
hazard (earthquake, distance to riverbank erosion, distance to weak river dyke segment), and man-induced
hazard (land subsidence, inundation).

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Figure 12.1 Environmental Zones and Green Belts in Hanoi Region

Source: HAIDEP Study Team.

Figure 12.2 Hazard Map of Hanoi Figure 12.3 Development Suitability of Land in Hanoi

Source: HAIDEP Study Team. Source: HAIDEP Study Team.

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Green Network
12.7 Various water and green spaces, such as rivers, lakes and ponds, parks and
greeneries, of different sizes as well as functions and distributed all over the city must be
connected as a network to cover the entire urban area and further to connect agriculture land
and greeneries in rural areas. The network must be developed in hierarchy. The Red River -
Duong River system and the Thang Long - Co Loa zone comprising the city’s backbone
should be connected with the green belt surrounding Hanoi. The Nhue River, including its
regulating reservoir and large parks, and the Van Tri water space will form part of this primary
water-greenery-culture network. Meanwhile, other lakes and ponds must be provided with
trees and other greeneries and connected to each other through streets with strips planted to
trees and plants as well. In and along the green network, historical and cultural heritage sites,
valuable architectural buildings, tourism destinations, and other recreational facilities must
likewise be connected to the overall network.
Air Quality and Noise
12.8 Emissions from transportation are becoming a major source of air pollution in Hanoi’s
urban areas. HAIDEP conducted an air quality survey2 at the five intersections of Chuong
Duong, Nga Tu So, Nga Tu Vong, Cau Giay, and Cau Chai on air pollutants including nitrogen
dioxide (NO2) surphur dioxide (SO2), carbon monoxide (CO), total suspended particulates
(TSPs), ozone (O3), lead (Pb), particular matter (PM), volatile organic compounds (VOCs) and
polycyclic aromatic hydrocarbons (PAHs). Compared to the results of previous studies, those
of the HAIDEP survey indicated that Hanoi’s air quality has significantly improved as a whole.
However, levels of TSPs and CO still exceed Vietnamese standards. For PAHs and VOCs
which are considered mutagens and carcinogens, much lower levels than WHO standards
were observed.
12.9 At the intersections mentioned above, noise levels were also surveyed. Results
showed that noise levels were greater than those of the Vietnamese standard throughout the
day. In addition to the usual vehicular noise from engines, exhaust pipes, and tires, the
frequent use of horns by all types of vehicles aggravate the situation.
Land Acquisition and Resettlement
12.10 Development of infrastructures, especially roads, in built-up urban areas requires
involuntary resettlement. Hanoi has experienced many such cases involving large numbers of
families3. Resettlement often requires lengthy durations and large compensation costs that
often sets back project completion, create more difficulties for affected families, and delays the
benefits that are expected from the projects.
12.11 While there are resettlement options, including: (i) resettlement in government housing.
(ii) land exchange, and (iii) cash compensation, these do not meet the demands of the affected
families. And while the efforts of the government to improve the compensation policy have
been commendable, there are still limitations pertaining to eligibility, entitlement, and
restoration of livelihoods. For one, they cannot freely choose the sites to which they want to
resettle. Then, too, the types of resettlement house are limited to multistory apartments, and
there is no mechanism to restore livelihoods.

2
Conducted in March 2005.
3
For example, Ring Road (Mai Dich-Phan Van section) involved 1600 PAF (Project affected families who are
resettled), Vin Thuy Bridge 1.100, Overpass at So Intersection 1.100, etc

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Figure 12.4 Water Systems in Hanoi Figure 12.5 Major Lakes in Hanoi’s Urban Areas

River
River
Water Surface
Water Surface
Hanoi Boundary
Commune
Boundary

Ca Lo River

Red River

Duong River

Nhue River

Day River

Note: Compiled by the HAIDEP Study Team based on available data.

Figure 12.6 Green Resources in Hanoi Figure 12.7 Agricultural Lands in Hanoi

Note: Compiled by the HAIDEP Study Team based on available data.

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Environmental Management Strategies and Actions

12.12 Environmental development, involving various cross-cutting factors, provides the
important foundation in urban planning and development. Nevertheless, it is often dealt with
fragmentarily or given a minor role in project evaluation. Environmental development in Hanoi
must be attended to on a long-term basis (see Table 12.1).
Table 12.1 Proposed Environmental Management Strategies and Actions

Strategy Action Monitoring Indicator

G1 Establish G11 Develop through effective interagency coordination • Development of GIS-based
comprehensive comprehensive environmental mapping and comprehensive
environmental information systems using GIS for easy access by environmental information
planning and all stakeholders system and access
management G12 Establish a practical environmental impact mechanism
system assessment system by selecting a set of indicators • Establish of inter-agency
agreed upon by all stakeholders coordination mechanism
G13 Strengthen interagency coordination among
environmental organizations on indicators and
environmental issues
G14 Establish an effective environmental monitoring
system
G2 Establish green G21 Identify and designate green belts based on a • Formulation of greenbelt
belts in coordination comprehensive study plan
with adjoining G22 Establish a green belt management council • Establishment of
provinces involving Hanoi and adjoining provinces management organization
G23 Formulate an effective green belt development and
management system
G3 Develop a park and G31 Establish a network of parks, water bodies, streets • Formulation of green
green space lined with trees, etc. to cover the entire city network plan
network including districts and communes • No.r of community parks
G32 Provide parks at community level developed
G33 Integrate parks and green space with overall land
use, infrastructure, cultural sites, and
socio-economic activities
Source: HAIDEP Study Team.

12.13 Proposed projects with strategic importance are as follows:

(i) Development of comprehensive environmental mapping and information system using
GIS
(ii) Development of regional green belts
(iii) Strengthening of urban environmental monitoring system
(iv) Development of parks at community level

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Figure 12.8 Important Environmental Resources in Hanoi City

Lenin Park Children playing in a community park.

Street trees in the Ancient Quarter. Large trees line the streets in the French Quarter.

Hoan Kiem Lake Red River

Note: Pictures were taken by the HAIDEP Study Team.

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13 URBAN DESIGN AND LANDSCAPE

Main Issues
13.1 The landscape of Hanoi has an extraordinary charm, appealing to the people and
visitors alike. The landscape is also an important element to enhance Hanoi’s identity. The
attractiveness of the landscape extends widely from the unique physical setting and lifestyles
in the Ancient Quarter and the French Quarter, the avenues provided with spacious sidewalks
and lined with abundant trees, the historical buildings, the widely distributed lakes and ponds,
to the immense vistas created by the Red River and the rustic suburbs dotted with traditional
villages.
13.2 However, during the process of recent rapid urbanization, many of these assets have
been spoiled by various developments and people’s activities insensitive to the landscape’s
value. Although there are a number of regulations1 restricting activities that generate negative
impacts, these lack comprehensiveness and depth as well as effective enforcement
mechanisms and capacities. A common understanding of the desired landscape for Hanoi is
also lacking.
13.3 In order to strengthen Hanoi’s image and identity, the concept of “water-greenery-
culture” must be expressed in concrete terms in the form of the desired landscapes. The urban
design that will promote this concept comprehensively must be firmly established.
HAIDEP Approach and Outputs
13.4 In order to formulate a policy framework on the management of the city’s landscape,
HAIDEP implemented the following approaches:
(i) Analysis of the results of the landscape portion in the comprehensive HIS.
(ii) Analysis of the results of a questionnaire survey on the public image of Hanoi City among
selected experts and citizens.
(iii) Conduct of a series of stakeholder meetings with selected experts on aspects related to
landscape.
13.5 Results of the analyses and meetings showed that existing institutions and the
capacities of authorities are not of the level needed to attend to urban landscape issues
effectively. However, it was also found that both the people’s and the experts’ levels of
awareness of the importance of landscape are high. Based on these findings, preliminary
landscape guidelines were worked out in the study for eventual review and elaboration (see
Box 13.1).
Proposed Urban Design and Landscape Development Strategies and Actions
13.6 The landscape in Hanoi has ample opportunities for improvement, something which is
very much critical to establishing an identifiable image. An attractive landscape does not only
soothe the senses and feeds the minds of the people, but is also a magnet for visitors and
investments from outside, thereby contributing to the city’s economic development. For this,
the landscape must be dealt with not only from the aesthetic viewpoint but more specifically in

1
Current regulations include the following: (i) Article 27 Urban Designing, Section 3 Chapter II of the Construction
Law (16/2003/QH11), (ii) Articles 30 and 31, Section 4, Chapter II of the Government Decree in Construction
Planning (08/2005/ND-CP), (iii) Article 36, Section 1, Chapter IV of Cultural Heritage Law (28/2001/QH10), (iv)
Temporary Regulation in Hanoi’s Ancient Quarter Construction, Conservation and Improvement Management
(45/1999/QD-UB), (v) regulations for Hoan Kiem Lake area including 448/1996/QD-KTBH and 45/1997/QD-UB),
(vi) advertisement ordinances including 39/2001/DL-UBTVQH10, 24/2003/ND-CP, and 10/2001/QD-UB.

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the context of urban design which integrates the physical, socio-economic, and aesthetic
aspects and translates them into feasible actions (see Table 13.1).
Table 13.1 Proposed Urban Design and Landscape Development Strategies and Actions

Strategy Action Monitoring Indicator

H1 Establish H11 Develop comprehensive landscape policy and • Guidelines formulated
comprehensive guidelines • Number of forums
landscape policy and H12 Organize “Urban Design and Landscape Forum” organized
workable mechanism H13 Establish a mechanism for effective management
to ensure including adequate rules and regulations and
conservation and enforcement organizations
enhancement of
desired landscape
H2 Promote H21 Promote desired landscapes for different areas such as • Progress of actions
improvement of Ancient Quarter, French Quarter, Thang Long, Co Loa, • Satisfaction of the people
landscape for urban new urban areas, rural areas, etc. and visitors
space of strategic H22 Promote desired landscape for transportation corridors
importance and gateways
H23 Promote desired landscape for waterfront and green
network
H3 Establish concrete H31 Complete inventory of tangible assets including sites • Progress of actions
mechanism to ensure and facilities with cultural value
cultural preservation H32 Establish adequate mechanism to preserve and restore
tangible assets in harmony with landscape in
surrounding buffer areas
H33 Establish adequate mechanism to preserve prime rural
landscape
H4 Develop new H41 Develop underground space in harmony with the urban • Progress of actions
opportunities to design at ground level to create additional space for • Number of positive
improve urban design public services and businesses elements
and landscape H42 Develop new landmarks with distinctive designs
including high-rise buildings, towers, bridges, other
facilities
H43 Establish adequate mechanism to preserve and further
expand network of street trees and greeneries
Source: HAIDEP Study Team

13.7 Priority actions were developed, as follows:

(i) Model project on selected landscape corridor (e.g. airport road)
(ii) Model project on underground space development
(iii) Improved tree planting in Hanoi
(iv) Development of research/high-tech parks with the support of the higher education sector
(v) Establishment of monitoring mechanism on community environment and activities
(vi) Drafting of comprehensive landscape law and guidelines
(vii) Formulation of comprehensive landscape master plan

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Box 13.1 Preliminary Landscape Guidelines1

(1) Guidelines for the Management of Urban Landscape in Hanoi at the City Level
(i) Preservation of the natural landscape including lakes, parks, flower gardens, street trees, rivers
and bridges, suburban landscape.
(ii) Preservation of urban heritage in the urban development covering city core area, silhouette of
the city, height and volume of building, construction and renovation of buildings, rehabilitation of
traditional profession and festivities, environment – friendly means of transport
(iii) Urban reconstruction and upgrading covering urban routes and axes, streets and sidewalks
(the remaining), transport nodes, squares and flower gardens, public transport system of the
city, car parking, technical infrastructure facilities, collection of rubbish
(iv) New urban development include axes and urban landmarks, quality of residential areas,
development of industrial zones
(v) Urban advertisement include advertisement in public spaces, advertisement at the frontage of
buildings, urban decoration, technical and legal aspects of advertisement
(vi) Urban lifestyle covering preservation of traditional culture in lifestyle, preservation of good
urban sanitation, promotion of cuisine, promotion of open air activities, promotion of community
spirit, beggars and street vendors.
(2) Urban Landscape Management Guidelines for Functional Areas of Hanoi
(i) Ancient Quarter including street houses, public buildings, street spaces, traffic organization in
the Ancient Quarter
(ii) French Quarter covering street houses, public buildings, street spaces, traffic organization in
the French Quarter
(iii) Expanded inner city including street houses, public buildings, streets, alleys
(iv) Outside Red River dyke area including street houses, public buildings, streets, alleys
(v) Collective housing areas covering collective housing blocks, public buildings, street spaces,
common yards
(vi) New residential areas including street houses, condominiums, public buildings, street spaces,
yards and gardens
(vii) Rural villages including houses and compounds, public buildings, village roads
(3) Institutionalization of Urban Landscape Management Guidelines
(i) Role, responsibilities covering at the city level, at the district level, at the ward, commune level,
role of mass organizations
(ii) Method of implementation including formulation of urban planning projects, urban plan project
approval, implementation of urban plan and monitoring, maintenance, treatment sanction
(iii) Participation of residents including process participation, detection by the people, initiatives by
the people
(iv) Sources of finance including state budget, private sources of finance, contribution by residents
(4) Increase in Comprehensive Awareness of Urban Landscape
(i) Public education and Campaign including “green, clean, beautiful” movement, public media,
mass organizations
(ii) Public education including training of state civil servants, school education, undergraduate
education
(iii) Development research including formulation of project proposals, promotion of urban
landscape initiatives, awards for good practices
Source: HAIDEP Study Team.
1) This indicates the guidelines’ coverage. Contents are explained in a separately prepared technical paper.

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Figure 13.1 Positive Landscape Elements Favored by Hanoians

Opera House Ba Dinh Square

House in Ancient Quarter French Village

Long Bien Bridge Hoan Kiem Lake

West Lake Sunset in West Lake

Note: Pictures were taken by the HAIDEP Study Team.

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14 SPECIAL AREAS
14.1 Need for Designating Special Areas
14.1 While the general plan provides the vision and the basic urban development
orientations for the future, translating them to tangible forms which the people and visitors can
easily understand and appreciate is another matter. Otherwise, these concepts would remain
only as plans or if ever they are realized, they would have insignificant appeal to the people.
This chapter thus explains the preliminary concepts on the development of selected key areas
in Hanoi including their physical plans, development strategies, and necessary institutional
arrangements. The following areas were selected because of their importance:
(i) the Red River including the areas outside the dyke.
(ii) Co Loa and its adjoining buffer zones.
(iii) the Ancient Quarter.
(iv) the French Quarter.
(v) Ho Tay waterfront area.
14.2 The primary development goals for these special areas are as follows:
(i) Realize the concept of “water-greenery-culture” and regenerate traditional areas to
enhance the charm and identity of Hanoi.
(ii) Promote opportunities for new urban economic and social development.
(iii) Establish effective mechanism for sustainable development with the participation of city
stakeholders.
Figure 14.1 Location of Special Areas in Hanoi City

Co Loa and
Adjoining Buffer
Zones

Red River including

Outside-of-Dyke
Ho Tay Areas
Waterfront

Ancient
Quarter

French
Quarter

Source: HAIDEP Study Team.

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Figure 14.2 Development Opportunities along the Red River Waterfront

Bridge
(Existing)
Bridge (under
construction)
Bridge (plan)
Co Loa Citadel
Dyke road
Red River
1 Waterfront
Development
Area

2 3

Ho Tay

4
Sunset at Red River
AQ
5

FQ
Open space around
the dyke 6

Thang Long Citadel Ancient Quarter Hanoi Port

7

Densely constructed Bat Trang Pottery

housing outside Village
dyke

2. Thang Long Bridge 4. Long Bien Bridge 5. Chuong Duong Bridge 7. Thanh Tri Bridge

(under construction)
1. RR4 Bridge 3. Nhat Than Bridge 6. Vinh Tuy Bridge 8. RR4 Bridge
(Planned) (Planned) (Planned) (Planned)
Source: HAIDEP Study Team.

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14.2 Red River Space

Main Issues
14.3 The Red River used to be the backbone of Hanoi, integrating thecity’s important areas
and resources. However, in the process of development and with the occurrence of disasters,
the Red River has somehow become separated from the urban system in many ways. It can
only be seen now from limited locations and is no longer fully connected with water bodies in
urban areas. Also, it has a limited role in transportation and its waterfront is mostly occupied by
informal developments. All these show that the Red River no longer plays a key role in the
socio-economic life of the city and is slowly losing cultural and environmental importance.
14.4 This is not enough reason, however, to dismiss the Red River, since it is not as calm as
those in many capital cities in the world such as the Seine River in Paris, the Sumida River in
Tokyo, the Chao Phraya in Bangkok, or the Hong River in Seoul. The mighty Red River can
bring untold destruction to the people and the city, as Hanoi’s long history could attest.
Development Goals
14.5 Notwithstanding the danger that the Red River poses, it can provide the city with
opportunities to enhance the city’s image and add to its social, cultural, environmental, and
economic value when properly incorporated into the city’s strategic urban planning and
development. The main goals are thus set as follows:
(i) To revive the Red River as the cultural and environmental backbone of the city and as a
strategic tool to enhance the city’s image and identity.
(ii) To promote socio-economic development by reorganizing the use of the ample riverfront
including the areas outside the dyke.
(iii) To establish adequate institutional and technical frameworks to ensure the sustainable
development of the areas outside the dyke.
Figure 14.3 Past and Current Layout of Outside-of-dyke Area and the Ancient Quarter

The port and the Ancient Quarter were directly The alluvial plains outside the dyke are now
connected to the Red River in the past (Source: occupied by buildings (Source: Google Earth).
“Hanoi Ancient Features,” VNA Publishing House,
2005).

Proposed Development Concept and Strategies

14.6 The development of the Red River must be thought of in the long run, even beyond the
term of the master plan. A policy or consented idea must be in place as to what will be the Red
River in the coming 50 years or 100 years time which s not very long compared to 1000 years
age of Hanoi. It is for sure that the environmental and cultural values will be much more
appreciated by the society in Hanoi as well as in the international community. In order for the

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Figure 14.4 Location of Red River and Outside-of-Dyke Area

Source: HAIDEP Study Team.

Table 14.1 Development in Selected Areas Outside the Dyke

District/ Tay Ho Ba Dinh Hoan Kiem Hai Ba Trung
Commune Nhat Tu Yen Phuc Chuong Phuc Bach Thanh Total
Item Tan Lien Phu Xa Duong Do Tan Dang Luong
Residential Area 47 41 58 41 35 23 49 56 349
Water Surface 151 118 53 27 54 24 39 58 524
Area (ha)
Other Use 151 153 31 33 12 22 19 29 450
Total 350 312 141 100 101 70 106 142 1,322
1989 5,237 4,856 13,054 11,647 12,092 8,851 12,881 12,098 80,716
Population 1999 7,104 7,095 17,652 15,767 20,508 14,199 16,402 18,797 117,524
2003 8,106 8,290 19,660 18,641 21,969 14,830 17,618 21,143 130,258
Population 1989-1999 3.1 3.9 3.1 3.1 5.4 4.8 2.5 4.5 -
Growth (%/yr) 1999-2003 3.4 4.0 2.7 4.3 1.7 1.1 1.8 3.0 -
Population Total Area 41 43 222 253 471 327 261 252 163
Density (no/ha) Residential Area 173 201 339 459 636 647 362 381 374
Source: HAIDEP HIS (2005) and Hanoi Statistical Yearbook.
1) Excluding water surface.

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Red River to play an expected role, the overall development direction and management of the
entire river space must be as follows:
(1) Environmental and Cultural Backbone: The Red River forms an environmental and
cultural backbone for the city by: (i) establishing effective flood and bank erosion control
protecting life and property of the people, (ii) enhancing waterborne environmental value
and ecosystems in integration with lakes and ponds dotting the city, (iii) enhancing the
landscape in a way that it represents the city’s image, (iv) integrating the Red River with
other key areas such as Co Loa, Ho Tay, the Ancient quarter, the French Quarter, and
other cultural villages and heritage sites located in and around the river.
(2) Mobility and Transportation Axis: The water space of the Red River must functions
more efficiently as an environment-friendly mobility and transportation axis to integrate
both sides of the river and especially the cultural villages and heritage sites scattered in
and around the water space. The Red River water transportation must be integrated with
the city’s overall public transportation network. The river is also expected to strengthen its
role in interprovincial transportation linking various parts of the river basin for goods
transport and tourism purposes.
(3) Reintegration of Outside-of-Dyke Areas: The areas outside the dyke must play a more
constructive and affirmative role not only in the development and management of the Red
River space but also in the overall urban development of the city. At present, the
development forms a sort of barrier, blocking the effective physical and aesthetic
integration of the river space with the existing urban area. With this Hanoi is no longer
facing the Red River which in turn has become the back door. In order to regain the
integration, development and management of the areas outside the dyke is critical.
(4) Planning Framework for Outside-of-Dyke Areas: The areas outside the dyke involve
complex legal and institutional development issues which have been accumulated for long
since the dyke was constructed. Although a strong and consented political intervention is
necessary, the basic approach to the future development for the area is preliminarily
worked out (see Figure 14.5).
(5) Landscape Management and Urban Design: These are elements critical to the
achievement of the envisioned image of the Red River space. For this, the design of bridges
and public facilities, as well as the city’s skyline, among others, must also be properly
managed.
Figure 14.5 Planning Framework for Outside-of-Dyke Area
<Disaster <Environmental <Legal Compliance>
Prevention> Conservation> · Land-use Rights
· Flood · Ecosystems · Building Permit
· Erosion · Water quality · Others
· Cultural value

<Urban Development Requirements>

<Needs of Residents> · Economic
· Vision & Policy Commitment Planning
· Social
· Living Conditions Improvement · Landscape/Aesthetic

<Proposed Orientations>
· Land-use Zoning
· Development/Conservation
Guidelines by Zone/Area
· Implementation Mechanism

Source: HAIDEP Study Team. 111

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Development Concept for Outside-of-dyke Area

14.7 Basic spatial planning orientation is to establish zoning for the area and provide clear
guidelines for suggested activities and development depending upon the potential threat to
disaster and socio-economic development opportunities. With construction of new dyke (same
height with the existing main dyke) or secondary dyke (lower height which can protect flood of
5- to 10-year return period), the types of development and activities can be further elaborated.
14.8 Recommendations are as follows:
(1) Amendment of the Dyke Ordinance: The dyke ordinance should be amended soon so
as to ensure the safety of both dykes and flood release, while balancing the need to
acknowledge house ownership and land-use rights of those who have settled on stable
land. There should also be a definition of illegal constructions based on clear criteria and a
complementary relocation plan to improve the quality of life of households who will fall
under such a definition.
(2) Consensus Building on the 2nd Dyke Construction: To utilize the outside-of-dyke area
effectively, a second dyke (H=12m) between the existing dyke and the river terrace will be
constructed in some prioritized areas. In this project, it is proposed to construct the new
dyke around urban communes and rural craft villages. The location of the 2nd dyke shall be
further discussed among stakeholders vis-à-vis socio-economic impacts of resettlement
and construction of the dyke.
(3) Detailed Land-use Planning: The area outside the second dyke shall be an open space,
and the area between the two dykes shall be used for nonresidential purposes. The land
use will be designated by area in consideration of the relationship with the hinterlands,
neighboring communes, as well as historical and natural conditions.
(4) Relocation Planning: For implementation of resettlement, the areas where violate the
current Dyke Ordinance shall be forced from a standpoints of safety and legality. It is
necessary to conduct the detailed survey of legal condition of residential areas. The
political priority for implementation are: (i) implementation of forced resettlement with
compensation (about 58,500 people (32% of total for short-term resettlement), (ii)
construction of the 2nd dyke (about 21,000 people (11%) will be protected), (iii) promotion
of voluntary resettlement with subsidy in the medium term (about 84,000 people (46%) for
mid-term resettlement), Figure 14.6 Development Concept for Outside-of-dyke Area
and (iv) promotion of Waterfront Embankment
-erosion control
-walkway promenade and open space
voluntary resettlement -biological protection
-water access facilities (pier and steps)
Red River
in the long term (about A
+4.0m

18,700 people (10%) for +7.0m

long-term resettlement Dyke-2 Open Space

+11.6m Open Space
Area for Controlled
without compensation). Development Area for Controlled
Development
In other words, the +14.0m Existing
- Dyke
Road
government needs to
Existing Urban Area
the issue of A’
A’
compensation for about A Open Space Area for Controlled Existing Urban
Development Area
Existing Dyke
58,500 people and the ▼+14.0m (water level at 125--year return period) Dyke-2
+11.6m (water level at 5-year return period)
necessity for a second ▼ Embankment
▼+7.0m (average water level: May-Oct) Hoan Kiem (El.+ 9m)
dyke. ▼+4.0m (average water level: Nov-Apr)
Dyke
Urban area
Red River Area outside the dyke Urban
Area

Source: HAIDEP Study Team.

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14.3 Thang Long – Co Loa Zone

Thang Long - Co Loa Zone: Heart of Hanoi
14.9 This zone is an integrated space comprising Co Loa, Ho Tay, and their surrounding
areas together with the Ancient Quarter which form the heart of Hanoi being located in the
middle of the Red River space (see Figure 14.8).
14.10 The planning considerations to take account of include the following:
(i) To ensure an open vista along the Thang Long - Co Loa axis by clearing existing facilities
and restricting future developments.
(ii) To construct transportation facilities connecting Thang Long and Co Loa such as:
· A bridge across the Red River for pedestrians and light vehicles
· Tram line using expanded Long Bien Bridge
· A ferry across the Red River for pedestrians
(iii) To restore heritage sites and improvement of Co Loa Citadel and its adjacent areas.
(iv) To redevelop the areas outside the dyke of the Red River to ensure the development vision
and objectives.
(v) To develop the Dong Hoi and Xuan Canh areas in a way that they match the development
vision of the project. Development must be low density, high value with rich cultural and
environmental flavor.
Development of Cultural Core
14.11 The roles and functions of the Red River development area are as follows:
(i) Disaster prevention (safety of life, infrastructure improvement).
(ii) Environmental (environmental axis, landscape, water network, green space, open vista).
(iii) Social (recreation, integration of communities along the river).
(iv) Cultural (Thang Long-Co Loa special area, cultural villages, Red River waterway).
(v) Economic (urban development for nonresidential purpose, waterfront development,
recreation and tourism, and water transportation).
14.12 Based on the roles and functions mentioned above, it is also proposed that a spiritual
core be developed in the heart of Thang Long - Co Loa zone by constructing the proposed
multipurpose 300-meter-high Hong Ha Tower at the end of Thanh Nien Street in the area
outside the dyke (see Figure 14.9). This complex intends to provide opportunities for the
people: (i) to have a bird’s eye view of Co Loa, Thang Long, Red River, and the entire urban
setting from a 200-meter high observatory, (ii) to have an opportunity to appreciate the
waterfront of the Red River, (iii) to have a large venue (10 hectares of plaza) to hold events,
(iv) to have an opportunity for meditation in the spacious plaza, (v) to access various services
to be developed in the complex including museums, cultural centers, shopping facilities,
conference and meeting halls, and so on. This tower can also provide good investment
opportunities for the private sector, such as TV tower, MICE facilities, commercial/business
and tourism facilities, etc. If the scheme is properly designed, there is a good chance that this
project can be implemented through a BOT or PPP arrangement.
Development Strategy and Actions
14.13 In order to develop the area, a separate detailed plan must be prepared in compliance
with the orientation of the General Plan, wherein a conservation and development policy and

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the corresponding mechanisms are clearly defined. Priority actions include the following:
(i) Formulation of master plan development and strategies and guidelines.
(ii) Establishment of Thang Long – Co Loa development council.
(iii) Conduct of investment study on the development of the proposed Cultural Core Tower under a
PPP scheme.
Figure 14.7 Preliminary Development Concept for Thang Long - Co Loa Zone

Transportation access (tram)

Recreational access (bridge)
Dong Anh
New Urban Water access (ferry )
Area Core Area Red River Green Corridor
Dyke road
Co Loa
Citadel

Buffer
Area

Source: HAIDEP Study Team.

Long Bien
New Urban
Area
Ho Tay

Thang Long Ancient

Citadel Quarter

Source: HAIDEP Study Team.

Figure 14.8 Image of Proposed Cultural Core in Thang Long - Co Loa Zone

Source: HAIDEP Study Team. 114

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14.4 Ancient Quarter

Context
14.14 The Ancient Quarter is a compact urban area set on about 100ha of land area with a
total of 14,374 households or about 60,000 people. In its long history of prosperity the Ancient
Quarter developed as a marketplace for goods and services including handicrafts and
agricultural products. It is also called “36 streets” because guilds or associations were formed
by street which were named for the products or services sold on them.1 This area remains the
most vibrant combination of living and commercial activities today. Together with its many
historic buildings imbued with cultural value, the various traditional festivals and events, and
the peculiar way of life of its residents, the Ancient Quarter has become a unique living space,
certain to charm visitors and shoppers alike.
14.15 However, Hanoi’s urbanization and the area’s locational advantage have brought
about tremendous impact on the Ancient Quarter that all aspects of its existence─be it cultural,
social, or economic─have succumbed to change. While there are a number of restrictions
being imposed in the area, including height limits, to preserve the landscape in the 36 streets,
the traditional socio-economic makeup of the area is being shaken to its foundation. Historic
buildings are deteriorating without sufficient maintenance by both the government and the
people. Both tangible and intangible values in the Ancient Quarter steadily disappear. Illegal
construction of buildings continues, houses are narrow 2 , improvement in infrastructure
services is delayed, and the living environment continues to worsen. On the other hand,
commercial and economic activities are very much dynamic due to its prime location and its
well-known reputation as a traditional commercial space. Hence, the average income of
households here is VND 360,000/month compared to Hanoi’s average of VND 260,000/month
(see Table 14.2). Investments in the area remain high, with traditional businesses like
handicraft production giving way to modern clothes shops and restaurants, among others.
14.16 Looking back, it can be said that such changes have regularly taken place in the
course of history. Which implies that the core value of the Ancient Quarter must first be
identified before implementing development and conservation measures and before applying
for a World Heritage Site designation as well.
Vision and Direction for Conservation and Development
14.17 The core value of the Ancient Quarter has been identified in the planning process of a
pilot project in which residents were fully involved.3 Its revealed that the core value of the
Ancient Quarter lies more in the traditional intangible assets rather than the tangible ones.
Thus the vision for the Ancient Quarter is: “To enhance its identity as the most significant
traditional commercial and living quarter enriched with an exquisite blend of culture, social,
economic, and living functions.” To enhance the uniqueness of the Ancient Quarter, the
following objectives were set:
(i) To ensure the identity and function of the “36 streets” in the Ancient Quarter.
(ii) To improve the living conditions of residents who are the keepers of the area’s core value
and to strengthen communities which foster close neighborhood relations.

1
For example, Hang Gai Street is known for silk and Hang Bac for silversmiths.
2
The average living space in the Ancient Quarter is about half of Hanoi’s average, while the average age of
houses is about 75 years or more than double that of Hanoi’s average.
3
Details are explained in Chapter 15.1.

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(iii) To provide physical layout composed of structures and landscape imbued with traditional
value.
(iv) To ensure human-scale transportation space comprising walking and nonmotorized
vehicles.
(v) To promote commercial/economic activities rooted in tradition and to let them take the lead
in economic development of the Ancient Quarter.
(vi) To encourage the residents and supporting institutions to pursue the vision as well as the
operation and management of the Ancient Quarter, while providing them technology and
finance.
14.19 The development and conservation of the Ancient Quarter must be carried out both at
the quarter and street or block levels, as follows:
(i) At the Ancient Quarter level, the integrity of the entire area must be ensured for which the
necessary institutions and the corresponding operational capacity and funding must be
provided.
(ii) At the street or block level, concrete actions must be taken based on the management
body comprising mainly of residents.
Table 14.2 Profile of Households and Living Conditions in the Ancient Quarter and Hanoi
Ancient
Indicator Hanoi
Quarter
Area (ha) 100 92,097
Net Population Density (pax/ha) 603 36
No. of HHs 14,374 760,000
Household Ave. No. of HH Members 4.2 4.3
Ave. HH Income (VND000/month) 3,577 2,567
Low Under 1.5m 15.4 9
Income Level Middle 1.5-2.0m 12.3 18
(VND mil./ 2.0-3.0m 23.7 18
month/HH) 3.0-4.0m 18.3 23
High
More than 4.0m 30.3 15
Average Space (m2) 44.0 88
2
Living Area per Person (m /pax) 10.5 20.5
Ave. No. of Rooms 2.6 3.7
Housing Ave. House Age (years) 74.9 32
Conditions Duration of Residence (years) 54.7 -
Housing Privately Owned 77.4 92
Ownership State-owned 19.8
Land-use Right (% of privately owned) 75.2 89
Sources: Block Survey, 2005 (block); HAIDEP HIS, 2005 (Ancient Quarter and Hanoi).

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Figure 14.9 Map of the Ancient Quarter

ドンスアン市場

Study Area of the Pilot Project in

the Ancient Quarter (200m)
ハンザ市場 ホアンキエム湖 Selected block on Hang Buom
Street (app. 4,700m2)

Figure 14.10 Tangible and Intangible Values for Preservation

ホアンキエム

Clustering wholesale and retail Selling craft products (Hang Ma St.). Continuing tin making as a traditional
businesses (Luong Van Can St.). craft industry (Hang Thiec St.).

Teaching the young respect for tradition. Keeping tradition alive. Promoting traditional culture and the arts.
14.18
Source: HAIDEP Study Team.

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Proposed Implementation Mechanism

14.20 In the whole Ancient Quarter, there are about 70 streets and 70 blocks. While
economic activities are promoted in streetfronts, livelihoods and community relations are
rooted and strengthened inside residential blocks. To strengthen the street identity while
remaining economic competitiveness and to improve living condition with traditional value, an
integration of (i) a block redevelopment planning, (ii) a street development planning, and (iii)
establishment of a business model, will be effective with community participation. The
proposed planning approach is one of the elements of implementation mechanism in
integration with other measures such as consensus building, funding, management and
monitoring (see Figure 14.10).
Proposed Development Model for the Ancient Quarter
14.21 Preservation and development of the Ancient Quarter cannot be achieved by individual
physical efforts, but need a dynamic mechanism to mobilize all related stakeholders and
potential business opportunities and financial resources. In addition, a current constraint of the
Ancient Quarter is the lack of organizational network, coordination and financial resource. To
establish a sustainable preservation and development mechanism of the Ancient Quarter, it is
significant to establish a proper development model wherein local resources and citizens are
the main actors to implement the actions and projects.
Figure 14.11 Implementation Mechanism for Sustainable Development in the Ancient Quarter
Urban Planning and Development System Participation and Consensus Building
・ Urban renewal project ・ Participation in the planning process (reviewing
・ Land use and building control current situation, identifying values and
・ Enforcement of regulations and guidelines potentials, proposal on future orientation and
(townscape, traffic management, etc.) vision, implementation and monitoring)
・ Support system on cultural preservation ・ Promotion of social and cultural activities
・ Community development and capacity building
・ Self-help and support mechanisms

Management and Monitoring Implementation and Funding

・ Assessment system (ancient ・ Central and city governments: distribution of policy and
houses, religious sites, etc.) regulations, financial supports
・ Diagnostic system for housing ・ Local governments: coordination between central agencies and
conditions grassroots, support local activities
・ Information provision ・ Residents: revitalizing local values, strengthening local
・ Promotion of academic organizations and activities, encouraging self-efforts
researches and studies ・ Private sectors: Initiation of project funding, investment,
・ Establishment and capacity information service
building of management bodies ・ Donors/ academy: Financial and technical support

Source: HAIDEP Study Team.

14.22 The proposed development model mainly consists of: (i) Ancient Quarter Fund, (ii)
newly established organizations, (iii) financial support organizations, (iv) technical support
organizations, and (v) beneficiaries. As the main engine of this business model, the “Ancient
Quarter Fund” shall be established. This fund will be used for any projects and activities which
aim to improve social, physical, cultural environments of the Ancient Quarter. As the main
implementation bodies of the development model, four (4) organizations shall be newly
established: (i) Community Development Organization (CDO) as the town management
organization to promote and manage activities of local community organizations (LCOs), (ii)
One Stop Agency (OSA) as a window organization for consultation, information, coordination

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for anybody like citizens, private sectors, tourists, who need any services related to the
Ancient Quarter, (iii) Special Purpose Company (SPC) as a special organization to implement
urban development project (housing development, renovation of public facilities, etc.), and (iv)
LCOs as voluntary organizations by local residents to promote social and cultural activities,
community businesses, public services, etc. Social contributions and economic profits from
these organizations can revolve and mobilize of preservation and development of the Ancient
Quarter in sustainable manner.
Figure 14.12 Proposed Funding and Organization for the Development Model
for the Ancient Quarter
Financial Resources (banks, donors,
governments, investors)
Consultation, Subsidy, Urban development,
information, coordination donation physical improvement
One Stop Agency Special Purpose Company
Ancient Quarter Fund (SPC)
(OSA)

Community Development Town management,

Organization (CDO) support LCOs

Profits
Local Community Implementation of social,
Organization (LCO) economical, cultural activities

Source: HAIDEP Study Team.

14.23 It was found that the residents and organizations, including businesses, in the Ancient
Quarter are eager to preserve and develop the area. What is lacking is an effective institutional
arrangement and capacities of these implementation bodies. The specific proposals for
institutional arrangement and capacity development are as follows:
(1) Establish a One-stop Center: For better information access and smoother project
implementation, one center will be set up to: (i) introduce seekers to suitable institutions,
(ii) collect and provide timely information, and (iii) coordinate with related agencies. It will
serve both public and private sectors and manned by coordinators, consultants, or
experienced residents.
(2) Set up Community Organizations: Since the retired and the elderly are willing to support
the preservation and development of the Ancient Quarter and are more familiar with the
area, they can be mobilized into community organizations that will be recognized by the
local government and other stakeholders. With financial and technical support, these
organizations can act as project implementation bodies working together with experts.
(3) Set up Business Associations: In ancient days business associations in the Ancient
Quarter existed in the form of trading guilds. Since this is still evident up to now,
organizations can be established by street or trade to enhance their respective business
activities and improve street conditions.
(4) Promote Community Businesses: Community businesses in the Ancient Quarter can be
set up among the residents, who not only can earn from these businesses but will also
contribute to cultural preservation and community empowerment. For example, a guided
tour done by local residents may not be professional in terms of service level, but the
participants can get more local information and enjoy the company of the local people.

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(5) Hold Cultural Events and Festivals: There are many cultural and historical sites which
have become degraded and largely ignored by residents now. It is necessary to rebuild
these sites to their former glory and revitalize the traditional activities related to them.
These can enhance the charm of the Ancient Quarter and strengthen the local community.
(6) Conduct Seminars and Meetings for Donors and Researchers: Though there are
many existing studies and projects on the Ancient Quarter, there is no buildup in terms of
information, database, and proposals. Support activities by donors and researchers are
hampered due to limited access to information. One solution is to conduct regular
seminars and meetings about the Ancient Quarter on such issues as history, culture,
architecture, economy, etc. Joint studies on preserving and developing ancient towns in
other countries will also be useful.
(7) Establish Microfinancing for Residents and Business Households: Providing
microfinancing to households and small businesses may be effective in improving the
living conditions in the area and in developing commerce and trade. This system can be
managed by the local government (commune PC) or the banks.
(8) Establish the Ancient Quarter Preservation Fund: To preserve traditional tangible and
intangible values embodied in the more than 100 religious sites, 70 streets and blocks,
and 200 ancient houses in the Ancient Quarter, funding is necessary. Funding may come
from donors, the private sector, income tax, or revenue from economic activities especially
from the tourism sector, etc.
Priority Actions
14.24 Results of the pilot project on the preservation and sustainable development of the
Ancient Quarter showed that the residents and other stakeholders in the area understand the
significance of conserving and developing the Ancient Quarter, that they desire the
implementation of projects and actions, and are willing to participate in the process. While
various past projects failed or were not implemented, this was mainly because the institutional
framework on conservation and development was not well provided and the capacities of
management organizations insufficient. Priority actions are thus suggested, namely:
(i) Preparation of a master plan for the sustainable development of the Ancient Quarter
based on HAIDEP exercise
(ii) Strengthening of management capacity of the Ancient Quarter Management Board
(iii) Establishment of a feasible mechanism for Ancient Quarter development based on
public-private participation (PPP) and community involvement

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14.5 Ho Tay Waterfront Area

Main Issues
14.25 Ho Tay (West Lake) is expected to form one of the most important cultural and
environment backbones of the city which is envisioned “water”, “greeneries,” and “culture” for
the city. In the past, there were 16 ancient villages around the lake, but now, they are in fact
almost disappear, and this area lost its charm and character.
14.26 Ho Tay area in future should strengthen the access to water and green for citizens, and
revitalize traditional villages as well as strengthen commercial values in some development
areas connected to public transportation.
Development Concept
14.27 The proposed development concept is composed of the following:
(i) Waterfront around the lake will be connected with footpath all along which also integrate
various cultural spots and villages
(ii) Selected locations of the waterfront will be recovered by relocating the establishments or
improving the existing space and connected with proposed footpath.
(iii) In the cultural villages open space will be secured which will also be connected with the
footpath. The space can be used for commercial and other purposes at discretion of the
villages.
(iv) New landscape and skylines will be developed through guidelines and planned
development.
(v) Water surface of Ho Tay will also be used as part of the footpath network.
Priority Actions
14.28 The West Lake waterfront offers ample opportunities to promote dynamic development
projects that integrate economic development, environmental improvement, and restoration of
traditional culture. For this, the following priority actions are suggested:
(i) Preparation of a master plan and development strategy and guidelines.
(ii) Establishment of the Ho Tay Environmental Zone Council to manage development.
(iii) Implementation of model projects under a PPP scheme.
Table 14.3 Proposed Actions for Ho Tay Area

Water 1. Connecting West lake with Red river and To Lich river to create a flowing water system
2. Improve the To Lich river along Thuy Khue street to make it to a dominant urban and landscape factor
3. Redevelop a system of lakes in the eastern part of West lake, belonging to Nghi tam, Yen Phu, Tay ho and Quang
Ba villages
4. Redevelop the water system in the out of dyke area to make an attractive entertainment park, joining with red river
to a big network of water
5. Make access for the public to the water front in several parts
Greenery 1. The big green parks will be in the out of dyke area
2. There will be trees everywhere at the water front around the lake
3. In each traditional village, a park with a typical tree specimen will be developed
Culture 1. Emphasis the historical places like temples, pagodas and communal houses. Making the surrounding areas to
public spaces
2. Redefine and improve the areas in the traditional villages, making them to vital urban districts, with markets in the
traditional product branches of those villages
3. Making the Tay Ho Peninsula to a modern cultural center with opera house, library, museum, artist village etc
Source: HAIDEP Study Team.

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Figure 14.13 Development Concept for Ho Tay Waterfront Area

Conceptual Zoning Plan for Ho Tay Area

Nhat tan district Tay Ho archipelago Out of dyke area

Peach market Noble hotels, villas River side parks
Flower market Flower market Entertainment parks
Temples Typical fish bones urban pattern

Xuan la district
District government Yen phu village
Ciputra mall Bonsai market
Decorative fish

Buoi – ancient villages

Handicrafts market
36 –streets structure
Spiritual center
System of squares and plaza
Tower
Temples, pagodas,
Meditation park
Lake side parks

To lich river parks Ngu xa villages

alcohol market copper market
To lich river parks Coffee, cullinaria street
Some historical temples

Image of Buoi Village

Conceptual Plan for To Lich river parks

Landscape Image of West Lake

Source: HAIDEP Study Team

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14.6 French Quarter

Overview
14.29 The French Quarter is spread in the southern part of the city center, bounded by Trang
Thi - Trang Tien Street in the north, Dai Co Viet – Tran Khat Chan Street in the south, the
Vietnam Railway Line in the west, and Tran Quan Khai – Tran Khanh Du Street (the dyke road)
in the east. When the nation was then known as Tonkin during the French colonial period from
the end of 19th to the early 20th century, the quarter's wide boulevards and tree-canopied
streets were developed. Colonial-style mansions and villas, set back behind walls and street
trees, were the symbols of Hanoi City which was called the “Petit Paris in Asia.” Most of the
beautiful structures, such as the Indochina longitudinal railway (Hanoi - Saigon), the Long Bien
Bridge across the Red River, and the Opera House, were constructed by French architects
and engineers during this era. These French-style facilities have since been used as public
facilities (ministries, hospitals, libraries, museums, embassies, etc.). In addition to the
buildings’ unique architectural styles, parks and lakes of various scales have created beautiful
landscapes and environment. Since the end of the 1990s, high-rise buildings have been
constructed and many foreign capital companies and hotels have been established. The calm
and peaceful condition in this area has attracted various functions such as politics, diplomacy,
and economic activities.
Main Issues
14.30 Since the French Quarter is in a superior location and its charming urban space has
contributed greatly to the city’s economic development by attracting various investments,
traffic increase has amplified the area’s numerous problems such as traffic congestion, poor
safety levels, worsening air quality, noise, etc. Spacious sidewalks are now often turned into
garages for motorcycles and car parks along congested roads, impeding pedestrian traffic.
Extensions of living spaces of roadside residents, vehicles, and advertisement boards battle
for sidewalk space. Traditional buildings are dwarfed by high-rises, spoiling the landscape. At
the same time, many houses in the French Quarter remain untouched and are fast decaying.
The people’s living conditions and stability are being threatened by the enormous
development pressure which has led to a sharp increase in land prices. In the French Quarter,
as in the Ancient Quarter, many problems are bursting at the seams. A critical policy agenda is
therefore needed to reorganize the area, protect the people while meeting development needs
and enhancing the cultural, social, as well as the economic values of the French Quarter.
Future Orientations
14.31 Although most of the areas in the city have been exposed to rapid urban development
and have shed their original urban structure, atmosphere, and values, the French Quarter has
been relatively preserved due to sufficient infrastructure and original beauty. The future
development of the French Quarter should not be physically oriented, but must rely on
strengthening its competitiveness by taking advantage of existing physical and economic
conditions. In addition, natural and cultural assets should be preserved to enhance its urban
beauty and attractiveness.
14.32 Urban Competitiveness: The French Quarter has the potential for competitive urban
development in terms of convenient location, sufficient urban infrastructure, rich culture and
tradition, beautiful landscape and economic activities. Since the Ancient Quarter and the
French Quarter are the twin urban centers in the future, with the former serving as the
traditional commercial quarter with a high regard for the preservation of cultural values, the

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French Quarter should lean toward becoming a more competitive location for economic and
political functions. By taking advantage of foreign investments, commercial and business
activities should diversify in support of the city’s internationalization.
14.33 Infrastructure: Infrastructure, especially the transportation network in this area, is
sufficiently developed. The streets in the French Quarter, its grid pattern, wide sidewalks,
abundant street trees, and interesting street life have a special beauty and character that
should be preserved as one of Hanoi’s most precious and cultural assets. By utilizing its space,
parking systems should be developed and traffic safety should be enhanced.
14.34 Natural and Cultural Values: Unlike the narrow and occupied sidewalks in the
Ancient Quarter, the wide sidewalks in the French Quarter enable residents and visitors to
enjoy a safer walking environment. The pedestrian environment shall be further improved to
create a green route network in combination with various cultural and natural assets. To
preserve the original landscape of boulevards and historic architecture, urban development
shall be regulated by imposing controls on building heights, FARs, etc.
Priority Actions
14.35 For the French Quarter’s sustainable development, concrete conservation and
development mechanisms must be worked out wherein public-private partnerships are fully
utilized, as follows:
(i) Preparation of a development strategy and corresponding guidelines for the French
Quarter.
(ii) Establishment of a French Quarter Development Council involving main stakeholders to
manage development in the area.
(iii) Implementation of model projects on rebuilding deteriorated areas.

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15 PILOT PROJECTS
15.1 Preservation and Sustainable Development of the Ancient Quarter
Context
15.1 In the long development process of the Thang Long Citadel1, the Ancient Quarter when
it was founded was a system of markets on the riverside lying among agriculture villages
which were mostly engaged in trading, handicraft activities, and agriculture. For this the
Ancient Quarter was composed of 36 guilds and streets or 36 pho phuong. Since then the
primary function of the Ancient Quarter as the most vibrant marketplace has not changed,
attracting many domestic and foreign visitors.
15.2 Even as the Ancient Quarter is on channel for application as a UNESCO World
Heritage Site, it is under enormous external and internal pressures as the country urbanizes
and shifts to a market economy. Whereas the value of the Ancient Quarter lies in its unique
blend of cultural, social, and economic aspects, it is this same feature that poses a challenge
in setting an effective policy framework for its sustainable development.
Objectives of the Pilot Project
15.3 This pilot project aimed at seeking a possible mechanism for the sustainable
development of the Ancient Quarter wherein the cultural values are preserved and enhanced,
while socio-economic development is promoted in a way that they enhance the core value of
the Ancient Quarter.
Figure 15.1 Pilot Project Area in the
Pilot Project Implementation Ancient Quarter
15.4 One of the most fundamental planning
elements to consider is “how to reorganize or
increase the space in the Ancient Quarter for living
and economic activities while properly maintaining
its cultural values.” The specific objectives of this Hang Buom Street (200m)
pilot project are: (i) to formulate workable
preservation and development methods; (ii) to
propose a vision for the future of the Ancient
Quarter and complementary actions; and (iii) to
propose an implementation mechanism including
institutional arrangement, role sharing, finance, etc. Selected block
The pilot project was implemented on a selected (app 4,700m2)

block and a street in Hang Buom to formulate plans

and implement priority actions with the participation
of residents (see Figure 15.1).
Source: HAIDEP Study Team.
Plan Formulation
15.5 The proposed block development plan was expected to satisfy the following conditions,
i.e.: (i) to utilize the limited land area efficiently and increase land value; (ii) to preserve,
revitalize, and rediscover traditional values; (iii) enhance economic activities with traditional
and new added values; (iv) to strengthen social and community networks; and (v) to enhance
the appeal and originality of its streets with safe and comfortable conditions (see Figure 15.2).

1
The army ordinance supporting the Royal Citadel.

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Figure 15.2 Process of Block Redevelopment Planning

<Current Block Plan> <Zoning Plan>

Preservation Zone

Development Zone

Preservation Zone Preservation Zone

(Cultural site)

Development Zone

<Proposed Block Plan>

Section Plan

Ta Hien Street

Inner
courtyard

Block view
st
1 Floor Plan

Source: HAIDEP Study Team.

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15.6 Furthermore, street development planning is significant in enhancing the townscape’s

charm, commercial activities, and community development. It is necessary to start from the
identification of original tangible and intangible values to preserve tradition and revitalize the
originality of the streets. A common understanding of the value and the originality of each
street will contribute to the improvement of street conditions in terms of socio-economic,
cultural, and physical aspects.
Evaluation of the Pilot Project
15.7 Impacts need to be evaluated through multiple indicators, as shown in Table 15.1. The
main contribution of this project is to achieve harmonization between the preservation and the
development of both tangible and intangible assets. Improved physical conditions and the
enhancement of social and cultural activities will contribute to economic competitiveness and
create a new image for the Ancient Quarter. What is important is to set up a sustainable
mechanism to strengthen the area’s diverse values and their interaction. In this context, this
planning approach can be a new model for the Ancient Quarter’s sustainable development.
Table 15.1 Assessment of Impacts of Pilot Project in the Ancient Quarter

Indicator Positive Impact Negative Impact

Preservation of • Preservation of tangible • Cultural sites will be preserved • Construction of new buildings may
Traditional Values values and improved physically. give a different visual impression
• Preservation of intangible • People can understand cultural from the traditional image.
values values through cultural sites and
events.
Improvement of • Increase in living space • Living spaces will increase and • Objections to high-rises may be
Housing Conditions • Improvement of sanitary privacy will be kept. raised.
conditions • Sanitary conditions will improve. • Some may prefer to stay in original
familiar houses.
Improvement of Living • Improvement of public • Public service and infrastructure • Traffic management and parking
Environment services will be upgraded. control need to be conducted in a
• Safety • Through traffic and parking will be wider scale.
controlled properly. • Residents may feel a decrease in
• Street conditions will improve in accessibility.
terms of townscape, safety and
commercial environment.
Economic • Enhancement of • Commercial spaces and job • New businesses and renovated
Development commercial activities opportunities will increase. streets may give different image.
• Job security • Commercial activities will diversify
• Tourism development and be promoted with traditional
values.
Social Development • Establishment of an • Original residents will stay in the • Residents need to be accustomed
equitable society same blocks. with modern lifestyles in new
• Change of settlements • New social networks will be houses.
and lifestyles developed including new • Purchase costs of new houses may
• Creation of opportunities residents, business entities and be high for some households.
for social participation visitors.
• Community activities will be
enhanced.
Urban Development • Preservation of urban • Land values will increase due to • A great deal of money need to be
morphology (land plots, better infrastructure and living generated from various
street network, etc.) conditions. stakeholders.
• Establishment of • Residents can participate in • Consensus building and
implementation planning. adjustment of ownership may take
mechanism • Rampant urban development and time.
• Participation of activities will be prohibited. • Urban development needs to be
stakeholders monitored strictly by the
• Contribution to city government and the people.
Source: HAIDEP Study Team.

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Implementation Mechanism
15.8 The proposed planning approach is one of the elements of the implementation
mechanism on the sustainable development of the Ancient Quarter. It is integrated with other
elements such as consensus building, funding, management and monitoring (see Figure 15.3)
as explained below.
(1) Consensus Building: The current unfeasibility of projects is due to the difficulties in
building consensus, especially among residents. The main possible reasons for this are:
(i) unclear and complicated housing ownership, (ii) financial difficulties, and (iii) no
agreement on proposals. To overcome these difficulties, one of the solutions is the
involvement of residents, experts (architects lawyers, consultants, etc.), local governments
as well as investors in the planning process. Since the main actors in future developments
are the locals, any proposal and project should be developed with their participation and
the involvement of other stakeholders.
(2) Funding: The main financial resource for urban development projects2 are: (i) equity from
private investors, (ii) bank loans, and (iii) government subsidies. For the operations and
maintenance period, incomes from floor lease, commercial revenues, and taxes are the
main sources of revenue. Public-private partnerships are indispensable to project
implementation. In the short term, financial support shall be provided to community groups
especially to improve their living conditions or run businesses. Microfinance is effective in
supporting small investments for the urgent improvement by residents or groups. In the
long term, the “Ancient Quarter Fund” shall be established to utilize for any preservation
and renovation activities. Contributions shall come from international aid agencies and the
private sector, revenue from commercial and tourism activities, etc. This fund will support
preservation involving physical measures and expand the understanding of the Ancient
Quarter among domestic and international communities.
(3) Institutional Arrangements: It is necessary to set up a system wherein all actors like
residents, business households, researchers, and the private sector, can take an active
part without institutional constraints. So far, there are no service providers especially for
business and investment, and the private sectors pay more attention to economic values
than traditional ones. To share values, current conditions as well as future orientation for
the development of the Ancient Quarter, governments need to set an integrated guidance
for preservation, living conditions, businesses and commerce, and urban development. So
far, it is necessary to obtain approvals from many governmental agencies to conduct social
and cultural activities by the local people, and this complicated procedure may discourage
them. In addition, the Ancient Quarter Management Board (AQMB) is the only body in
charge of the Ancient Quarter, and it handles preservation, development and management
of the area’s physical aspects mainly architecture. For effective implementation and
management of activities including those dealing with intangible aspects, AQMB and local
governments shall enhance their roles and capacities, and be responsible for supporting
local communities and for coordinating between other agencies.
Conclusion and Recommendations
15.9 The pilot project on block redevelopment shows the integrated approach with the aims
of: (i) increasing floor space, (ii) improving living environment, (iii) preserving and revitalizing
traditional values, and (iv) strengthening economic competitiveness. Since this project will

2
In the proposed block model, total cost is about 9mil.US$ including construction and planning fees.

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contribute not only to physical improvement but also to social development, and foster respect
for tradition and local culture, this project shall be mobilized with the participation of various
stakeholders.
15.10 For the effective implementation and replication of the proposal in other areas, this
planning approach shall be applied at each commune level, with the participation of residents
and local governments and promoted to private investors. In parallel with block redevelopment
planning and implementation, social and cultural activities shall be activated to contribute living
condition improvement and cultural preservation, with establishment of the proposed
institutional mechanism and community participation.
15.11 The values of the Ancient Quarter are not only physical cultural heritages, but also
intangible values which are accumulated in a long history such as social network, cultural
events, traditional commercial activities, etc. Though physical preservation can be achieved by
external technical and financial supports, self-efforts by local society are indispensable to
preserve intangible values. Though the government proceeds with the application to the
UNESCO World Heritage, the physical and social environment of the Ancient Quarter is still
fragile to be affected by both positive and negative impacts. For sustainable development of
the Ancient Quarter, an effective implementation mechanism and network among stakeholders
shall be established to share common understanding of values and common efforts (see
Figure 15.3).
Figure 15.3 Proposed Network for Preservation of Core Values of the Ancient Quarter

Local
Community

Common efforts Commercial effects

Social stability Investment
Stable tax revenue Job opportunity

Core Values
Governments (Heart of Hanoi, World Private sectors
Heritage)

Tourism promotion Economic impacts and

Worldwide popularity competitiveness
Preservation of heritages International
Society

Source: HAIDEP Study Team.

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15.2 District Planning

Context
15.12 The current urban development in Hanoi City is guided by the 1998 Master Plan. The
plan is essentially a land-use and infrastructure plan for urban construction purposes and does
not encapsulate the notion of a land-use zoning system that could be utilized to guide land and
building use in the city. The master plan also had technical controls on: (i) area of the planning
zone, (ii) residential area (ha) within the planning zone, (iii) average building-to-land ratio, (iv)
average number of floors in the zone, and (v) target population in the zone.
15.13 Statutory urban planning under the Construction Law follows a two-tier system of plans,
i.e. the General Plan and the Detailed Plan. The General Plan is prepared citywide, while the
Detailed Plan is done at the local level. The Construction Law stipulates the contents of urban
construction general planning to include: (i) analysis and evaluation of current conditions, (ii)
potentials for urban development, (iii) orientation for spatial development, (iv) orientation for
urban technical infrastructure development, (v) prioritization of projects for development and
resources for implementation, (vi) urban design, and (vii) environmental impact evaluation.
The output of the general planning includes drawings with adequate scales and reports. Both
the General Plan and the Detailed Plan under the Construction Law seem to be of similar
content except for the scale of maps which is much larger for the latter.
15.14 Following other countries that have a two-tier city planning system, which had the
structure and local plan system, the General Plan should be a strategic development plan
which is vision-led and establishes broad targets for growth, e.g. population, employment,
urban structure, infrastructure network, transportation system, and environmental
improvement, etc, while development control pertaining to detailed land-use zoning, FAR, site
coverage, height control, and other detailed planning controls are best applied at the Detailed
Plan stage. 3 Notwithstanding this, some of the strategic planning controls that could be
applied at the General Plan level are as follows:
(i) Target population 2010 and 2020 by planning zones.
(ii) Land-use zone guide and a guide on building use control.
(iii) Urban growth boundary.
(iv) Designation of key urban facilities.
(v) Designation of action areas for which detailed plans could be prepared.
Objective
15.15 This pilot project on district planning intended:
(i) to define clearly the roles and functions of the District Plan to facilitate effective
management of urban development issues
(ii) to identify alternative mechanism to implement planned urban development
(iii) to propose a district planning system in conjunction with general plan proposed in the study

3
Of the five main aspects covered in the 1998 Master Plan, the aspects of average building-to-land ratio and
average number of floors can be better formulated at the detailed planning stage (probably at the District Plan
level). Meanwhile, the aspects of area of planning zone, residential area within the urban planning zone, and
population size in the zone can be tackled in the general planning stage.

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Proposed Function of General Plan and District Plan

15.16 It is preliminary proposed that the urban planning system be provided with a clearer
function among the city, distinct and project site levels. While the General Plan and the District
Plan are prepared by the government, the Action Area Plan is prepared by the project
implementation body including the private sector in accordance with the planning orientation
given in the first two plans as well as in other planning guidelines (see Table 15.2).
15.17 The main contents of a district plan include the following:
(1) Land-use Zoning and Urban Development Control: For each land-use class, objective
of zone, permitted use, conditional use (permitted only with planning permission and
prohibited uses are specified). Land-use zones are classified into rural (3 subzones),
residential (5 subzones), commercial/ business (3 subzones), public use, industrial (3
subzones), and green/ open space.
(2) Spatial Control: Spatial control aims at exercising control on the volume and form of
buildings which are permitted in different zoning classes. This include floor area ratio
(FAR), building coverage ratio (BCR), density control, height control, setback control from
roads, locations of designated key urban facilities such as main roads, parks, utility plant
sites in General Plan will be specifically determined in the District Plans.
Table 15.2 Proposed Delineation of Functions between General Plan and Detailed Plan
General Plan District Plan Action Area Detailed
(City Level) (Detailed Plan 1) Plan (Detailed Plan 2)
Primary Function • Vision-led strategic plan to • Development control • Detailed plan for
establish broad targets for • Elaborated special implementation
growth and environmental structure and
management. development framework
Main Contents • Socio-econ. framework • details of General Plan • Details of District Plan
• Urban structure
• Infrastructure network
• Transportation system
• Environmental
improvement
• Land-use zone guide • Land-use zoning plan • Detailed plan which
• Key urban facilities • Building control plan meet the requirement
(designation) (FAR, BCR, setback) of District Plan and
• Action areas (designation) • Urban facilities plan other related
• Action area plan regulations
Source: HAIDEP Study Team.

Pilot District Plan for Dong Anh District

15.18 Under the pilot project on district planning for Dong Anh District, a set of maps of the
District Plan was developed, while the: (i) the Development Structure Plan, (ii) the Land-use
Plan, (iii) the Community Development Plan, and (iv) the Key Facilities Plan were developed in
line with the General Plan. They are briefly described below.
(1) Development Structure Plan: This is the overall District Plan and includes: (i) land-use
zoning (residential, commercial, industrial, etc), (ii) environment protection zoning (natural
hazard control area, landscape control area), (iii) urban facilities (institution, park,
transportation and logistics, utilities), and (iv) key facilities (depot, port, water and
sewerage plants, etc.).
(2) Land-use Plan: As the statutory plan this is prepared to control land use through zoning.
In this map, spatial development control zoning measures such as FAR, BCR, height
control, setback, etc. are adopted.

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(3) Community Development Plan: This is the map describing the community unit. In the
urban area, neighborhood units will be located with elementary & lower secondary schools
and daily services; secondary schools & sub-district services will be located in the
subdistrict. This aims to define the community unit to create a high-quality living
environment and sustainable community development through providing community
facilities and services effectively and control proper population density by community unit.
(4) Key Facility Plan: This determines key infrastructure and public facilities. Transportation
facilities include primary, secondary, and key tertiary roads; bus and truck terminals, and
other key facilities include water supply stations, sewerage treatment plants, power
substations, etc.
Case Study on Implementation Mechanism for A Selected Action Area
15.19 The action area was selected where includes the national highway No. 5 and BRT
transport strategic key points, and the new urban city construction will be realized easily
around a new station. The land readjustment system is proposed as a new urban planning
measure with participation of various stakeholders. The basic concept of land readjustment
project is that the same owner, before and after the readjustment, receives profit-sharing by
utilizing the housing land, with proper allocation of land plots for infrastructure, transport,
housings, commercial and public facilities, open space, etc. This method distributes
development profits equally and depending on circumstances, generating continuing profits
may be possible, which assists in creating a new and prosperous city with inherited culture
and climate and also it secures life style stability of people who left firming.
15.20 To implement urban development integrated with public transport (UMRT
development), this land readjustment system shall be effective for proper land use,
infrastructure development, alignment of streets and facilities, etc. to create convenient and
comfort urban activities.
Conclusion, Lessons Learned and The Way Forward
15.21 The proposed District Plan is a tool for effective urban control and implementation
measures in compliance with Socio-Economic Master Plan and General Plan, which enable
both HPC and the district governments control and monitor the urban development process
appropriately. The functions of two-tier city planning system can be clearly identified, and
land-use zoning system will be adopted for proper land-use control, especially where are
expected to be urban districts from rural ones in near future to avoid rampant urban
development.
15.22 It is now in transitional period of transferring the power of urban development to district
governments which is stipulated in new Construction Law. But in reality, institutional
mechanism, organization and skills for urban development of district level are seriously lacking
rather than city level. In other words, empowerment of administration of district level is the
urgent issue in the period of various urban developments in scales and contents in Hanoi City.
For next steps after planning of the District Plan, capacity development of district offices shall
be enhanced to utilize the plans for proper control and monitoring of urban development.

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Figure 15.4 Proposed Development Structure Plan

Source: HAIDEP Study Team.

Figure 15.5 Proposed Land-use Plan

Source: HAIDEP Study Team

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Figure 15.6 Proposed Community Development Plan

Source: HAIDEP Study Team.

Figure 15.7 Key Facilities Plan

Source: HAIDEP Study Team.

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15.3 IMPROVEMENT PLAN AND STRATEGY FOR OUTSIDE-OF-DYKE AREA

Context
15.23 In areas outside the dyke along the Red River, which stretches for 40km, it is said
there are about 160,000 residents. Traditional craft villages and agricultural areas have existed
historically and decreased by immigrants from rural to urban areas. Rapid construction of
housing started from the 80s. After Doi Moi in 1986, the government called for investment for
housing improvement by private sectors, but because of continuous immigration prevented
from appropriate implementation of housing policies and urban management. As a result,
illegal construction without land-use rights certificate (LURC) and construction permission,
undeveloped infrastructure condition, socials evil by low-income residential area have
occurred. After the construction of the highway and the consolidation of the dyke in the 1990s,
this area was completely isolated from the city center.
15.24 The fundamental issues of the area outside the dyke range from social, physical,
economical, to cultural and ecological. These problems, however, cannot be solved merely by
controlling illegal constructions. It is necessary to institute a comprehensive area
redevelopment mechanism including an areawide development policy and practical
implementation methods.
Objectives of the Pilot Project
15.25 This pilot project intended to achieve the following specific objectives: (i) to assess the
conditions of illegal constructions and their current status, (ii) to figure out the conditions in the
area outside the dyke, its constraints and redevelopment potentials, and (iii) to propose future
land use and development orientation.
Pilot Project Implementation
15.26 In the urban area of Hanoi, the selected project area outside the Red River dyke
extends about 12km in length from Thang Long Bridge in the north to Hanoi Port in the south.
The residential area is mostly clustered on the left bank of the Red River which includes 8
communes (see Table 15.3 and Figure 15.8).
Table 15.3 Conditions of the Pilot Project Area in Outside-of-dyke Area

Population
Area Population Residential
Commune District Density
(ha) (no.) Area (ha)1)
(no./ha) 2)
Nhat Tan Tay Ho 350 8,106 47 173
Tu Lien Tay Ho 312 8,290 41 201
Yen Phu Tay Ho 141 19,660 58 338
Phuc Xa Ba Dinh 100 18,641 41 459
Chuong Duong Do Hoan Kiem 101 21,969 35 636
Phuc Tan Hoan Kiem 70 14,830 23 647
Bach Dang Hai Ba Trung 106 17,618 49 361
Thanh Luong Hai Ba Trung 142 21,143 56 381
Total 1,322 130,257 349 374
Source: Hanoi Statistical Yearbook, MONRE.
1) Area occupied by residents.
2) Population density of residential area.

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Figure 15.8 Pilot Project Area in Outside-of-dyke Area

Agricultural land in Yen Phu

Thanh Nien Street and West Lake

Intersection of Thanh Nien and the dyke road

Phuc Tan Street in the north

Bach Dang Street in the south

Phuc Tan Port

Source: HAIDEP Study Team. 136
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Definition of Illegal Constructions in Outside-of-dyke Area

15.27 The basis for defining illegal and illegal constructions in this area should be
institutionalized based on three conditions: (i) ownership of housing ownership certificates
(HOCs) and LURCs, and (ii) compliance with the dyke ordinance4 that was adopted in
January 2001, and (iii) vulnerability to flooding, which is considered the most important
condition.
15.28 In Article 11 of the 2001 dyke ordinance, structures are prohibited on the dyke and
several meters from it, on alluvial ground, or in the riverbed except for works on flood control,
transportation, security, and other special works. So any house which was constructed in
these parts after January 2001 can be considered illegally constructed. At the same time
because of the administrative complications arising from the rapid urban development after
Doi Moi, there have been no issuances of HOCs and LURCs in the surveyed area in Chuong
Duong Do Commune. The widespread existence of person-to-person transfer papers
(accounting for about 60%) reveals the relaxation in urban management over the past years.
15.29 Upon consideration of these three conditions, illegal constructions are thus defined as:
(i) structures built on flood-prone areas, (ii) those constructed without official documents after
the enforcement of the dyke ordinance came into effect, and (iii) those constructed without any
legal documents at all.
15.30 Based on the above criteria, residents in the surveyed area outside the dyke can be
roughly classified into three groups, namely:
(1) Group A: Those with sufficient legal papers and whose houses were constructed before
the enforcement of the dyke ordinance (0%).
(2) Group B: Those with person-to-person transfer certificates and whose houses were
constructed before the enforcement of the dyke ordinance, and those with
person-to-person transfer certificates and commune certificates (41%).
(3) Group C: Others (59%).
(5) From the viewpoints of legitimacy and vulnerability to flood, it is roughly estimated that
about 60% of the constructed buildings in the surveyed area need to be relocated or
attended to through adequate physical or institutional measures. Particularly, about 36%
of these structures need to be resettled as they are located in areas that are highly
vulnerable to flooding (see Table 15.4).
Table 15.4 Classification and Conditions of Illegal Construction (Preliminary Estimate)
With Person-to-person Transfer Certificate (%)
Vulnerability Status of HOC With HOC and Without
Plus Commune’s Plus Other Total (%)
to Flood and LURC LURC (%) Paper (%)
Certificate (%) Papers1) (%)
Before enforcement
A (0) B (3) B (15) B (20) C (3) 41
Low ( ~ December 2000)
Vulnerability After Enforcement
B (0) B (3) C (0) C (20) C (0) 23
(January 2001 ~ )
High Vulnerability C (0) C (3) C (10) C (20) C (3) 36
Total 0 9 25 60 6 100
Source: HAIDEP Study Team
1) Other papers means house/ land papers issued by a state agency, such as agencies house/ land papers, certifications of
dwelling houses and the adjacent gardens and ponds shared by several people after owners of the LURC sold the land to
them.

4
At the moment, everything related to the dyke is still based on the two following documents: (i) “Ordinance on
Dyke and Dyke Maintenance”, No. 26/2000/PL-UBTVQH10 issued on 07/9/2000, and (ii) “Stipulating in Detail
the Implementation of Some Articles of the Dyke Ordinance”, No.171/2003/ND-CP issued on 26/12/2003.

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Main Issues
15.31 Even as the area outside the dyke has high potentials for future development, it is
necessary to first address existing issues (see Table 17.5). The immediate priority is to secure
the safety of the residents and public order, especially from flooding and other natural
disasters, as well as social ills. At the same time, the environmental problems should be
tackled to ensure a sustainable future. Only then can the area’s development potentials be
tapped to contribute economically, culturally and ecologically to Hanoi City and its citizens.
Table 15.5 Main Issues and Problems in Outside-of-dyke Area

Issue Problem
1. Disaster • Flood
prevention and • Fire and rescue
preparedness • River management (erosion, water flow, pollution, etc.)
2. Environment • Spoiling prime landscape
• Negative impacts on ecosystems
• Overcrowding
3. Social • Insufficient urban service
• Social evils
• Community isolation/ rupture
4. Economic • Loss of waterfront activities
• Low productivity of landuse
• Low value of infrastructure stock
5. Cultural • Disregarded historical/ cultural properties
• Damage to traditional/ cultural values
6. Management • Lack of cohesive policy, regulatory framework and management
mechanism
• Lack of information on the area for effective plan/ policy formulation
Source: HAIDEP Study Team.

Recommendations
15.32 It is important to consider the revitalization and development of the area outside the
dyke from the economic, cultural, social, and environmental aspects. As part of the Red River
space, the area’s functions shall be enhanced and integrated with other core areas to form a
solid urban axis.
15.33 The area outside the dyke is deemed to have high potentials to contribute to Hanoi
City’s growth economically, culturally and ecologically. However, prevailing issues on safety of
life, public order and environment, should be solved first.
15.34 The dyke ordinance should be amended soon so as to ensure the safety of both dykes
and flood release, while balancing the need to acknowledge house ownership and land-use
right of those who have settled on stable land. There should also be a definition of illegal
constructions based on clear criteria, and a complementary relocation plan to improve the
quality of life of households who will become affected by such definition.
15.35 To utilize the outside-of-dyke area effectively, the following are proposed: (i) a second
dyke (H=12m) between the existing dyke and the river terrace will be constructed; (ii) the area
outside the second dyke shall be an open space, and the area between the two dykes shall be
used for nonresidential purposes; and (iii) the land use will be designated by area in
consideration of the relationship with the hinterlands, neighboring communes, as well as
historical and natural conditions.

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16 PREFEASIBILITY STUDIES
16.1 Prefeasibility Study of the Urban Mass Rapid Transit Line 2
Objective
16.1 UMRT Line 2 was selected for prefeasibility study to further analyze and verify if a
mass transit line, in general, can contribute to the promotion of the envisioned urban
development of Hanoi and, more specifically, to check the viability of UMRT Line 2 from the
technical, economic, financial, social, and environmental viewpoints.
Route, Depot, and Phasing
16.2 UMRT Line 2 will function as the north-south public transportation backbone of the
city connecting the city center with: (i) the emerging new urban development areas of Dong
Anh and further to Noi Bai in the north; (ii) the heavily developed NH6 corridor to Ha Dong in
the southwest; and, (iii) the new government center in the west. The total length of the line is
41.5km with a total of 28 stations.
16.3 It was recognized through an analysis of the projected demand that UMRT 2 should
be implemented in three phases. Phase 1 would be the middle section which traverses the
city center and will operate from 2013. Phase 2, which is to start by 2016, is a northward and
southward extension to cope with the expanding urban area. Finally, the third phase will
complete the system with a further northward extension to Noi Bai by 2018 and its
northernmost terminal integrated with the Noi Bai Airport Terminal.
16.4 An examination of alignment conditions determined that Phase 1 from Tu Liem to
Thuong Dinh should be developed as a subway, because an at-grade or elevated
construction poses too many problems in the narrow and built-up city center. Preliminary
recommendations are that Phase 2 and most of Phase 3 should be developed as elevated
sections to minimize disruptions to existing roads. The northernmost segment of Phase 3
should be underground to be able to integrate with the Noi Bai Airport Terminal. As part of
Phase 3, UMRT 2 will cross the Red River utilizing a bridge crossing.
16.5 Tu Liem is selected among several candidates to be the site of the main depot (10-
15ha) for UMRT 2. In succeeding phases, it is recommended that smaller satellite depots
(5ha) be developed in Ha Dong (Phase 2) and Thai Phu (Phase 3).
Integrated Development at Stations/Terminals and Station Vicinity
16.6 Integral to the development of UMRT 2 is the coordination of rail development with
land development. Thus, it is proposed that the UMRT 2 station design be incorporated with
urban projects along its route, including: (i) Van Tri Lake New Town urban center; (ii) Ciputra
housing estate area; (iii) new government center development area; (iv) West Lakeside
development area; (v) Hoan Kiem; (vi) Ancient Quarter; (vii) Hoan Kiem Lake gateway; (viii)
French Quarter; (ix) Bach Khoa University and Thong Nhat Park; (x) Thuong Dinh; and, (xi)
Xuan Bac and Xuan Nam area. Station designs should also incorporate intermodal junctions
with other UMRT lines.
Estimated Ridership
16.7 The UMRT 2 ridership will be dependent on the fare level. The proposed fare level of
US$ 0.2 + US$ 0.05 per km in excess of 4km (2020) is based on a revenue-maximizing
strategy, as UMRT 2 should as much as possible be self-sufficient. Accordingly, it is projected
that ridership will be about 575,000 passengers a day at the start of Phase 1 (ie 2013) and
will gradually increase to 900,000 passengers a day by 2018 when Phase 3 comes on line.

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Figure 16.1 UMRT 2 Route

Source: HAIDEP Study Team.

Table 16.1 UMRT 2 Profile

No. of
Phase Km Structure Connection Rolling Stock1) Headway Schedule
Stations
1 15.2 Underground 14 6 (UMRT 1, 3 & 18 trains x 6 cars 3.25 2013
4)
2 10.2 Elevated 7 - 28 trains x 6 cars 3.00 2016
3 16.1 Elevated (10.7km)2) 7 1 (UMRT 4) 37 trains x 6 cars 2.75
2018
Underground (5.4km)
All 41.5 28
Source: HAIDEP Study Team.
1) Based on 2020 demand.
2) Includes the Red River crossing (to cross a distance of 2,420m, dyke to dyke).

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Engineering and Operation Elements

16.8 The underground sections of UMRT 2 are proposed to be constructed using twin
bored tunnels with internal diameters of 5.4m. A consideration of ground conditions
preliminarily indicates that the mixed shield TBM technology is most suited to construct the
tunnel sections. The elevated sections are proposed to typically utilize a double track viaduct
arrangement with spans of 30-35m. The proposed station layouts are side platform layout for
elevated stations and center platform layout for underground stations. The construction for
Phase 1 is estimated to take 48 months from mobilization to full operation status.
16.9 After a consideration of various alternatives, it is proposed that UMRT 2 should
employ metro-type rolling stock with 285 pax/car design capacity arranged in six cars per
train. And to meet demand the rolling stock requirements would be 18 train sets for Phase 1,
increasing to 37 train sets at the start of Phase 3 (see Table 16. 2). The UMRT 2 system can
operate with a minimum safe headway of 2 minutes and will reach a maximum capacity of
58,000 pax/hr/dir (vis-à-vis 2020 capacity of 38,000 pax/hr/dir at 2.75 minutes headway).
16.10 The project cost of UMRT 2 is estimated to be a grand total of US$ 2.8 billion, which
includes civil works, workshops/depot, railway systems, rolling stock, land, and others. Phase
1, due to its underground construction, is the most expensive segment with a US$ 1.8 billion
price tag. Additionally, operating and maintaining UMRT 2 will cost around US$ 39.2
million/year for Phase 1 and will increase to US$ 51.4 million/year when the system is
completed with the start of operations of Phase 3 (see Table 16.2).
Table 16.2 UMRT 2 Project and O&M Costs1)
Phase 1 Phase 2 Phase 3 Total
1. Civil Works 794 132 318 1,245
2. Workshop/ Depot 33 9 9 52
3. Railway System 124 21 50 195
4. Rolling Stock 172 95 133 401
5. General Items 79 18 36 132
6. Construction (1+2+3+4+5) 1,202 276 546 2,024
7. Engineering (7.5% of 6) 90 21 41 152
8. Land Cost 348 31 67 446
9. Contingency (10% [6+7+8]) 164 33 66 262
10. Project (6+7+8+9) 1,805 360 719 2,884
11. Annual Operation 14.2 2) 14.8 3) 15.2 4)
12. Annual Maintenance 25.0 2) 31.3 3) 36.2 4)
13. Annual O&M (11+12) 39.2 2) 46.1 3) 51.4 4)
Source: HAIDEP Study Team.
1) In million US$, 2006 price. 2) By 2013. 3) By 2016. 4) By 2018.

Evaluation
16.11 The impacts of UMRT Line 2 on the future development of Hanoi will be so large, with
a shift from road- and private transportation-based urban development to public
transportation-oriented urban development. It will affect land use, location of establishments,
access to services; thus the life of the people. The impacts on traffic, urban economy,
environment, and communities in the influence area will likewise be significant. The UMRT
Line 2 was evaluated comprehensively from economic, environmental, social and financial
viewpoints.
16.12 Economically, the UMRT Line 2 generates substantial benefits. Considering the
benefits only from the reduction in traffic congestion and savings in travel costs of
transportation users, its EIRR is 22.5% already. When additional benefits due to effective land
use and integrated development are considered, higher economic returns can be expected.

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16.13 From the social viewpoint, resettlement of households may become an issue unless
addressed adequately. However, in this project the number of affected households will be
minimal (less than 30 permanently affected structures) because Phase 1 will be underground,
and integrated development at and around stations are planned. Affected households will be
provided with alternatives whether they will be willing to stay or move out. Nonetheless, the
provision of high-quality public transportation services will bring about positive social impact
on the society as a whole and more specifically to the communities along the UMRT Line 2.
16.14 Environmental impact is also significant. Positive impact is expected from the
reduction of air and noise pollution, as well as traffic accidents due to the shift from private
transportation, including motorcycles, to the UMRT. However, vibration and noise from the
UMRT is anticipated during its construction.
16.15 From the technological viewpoint, the UMRT Line 2 construction provides a new
opportunity for Vietnam to experience and introduce modern technology on underground
construction as well as railway operation. Underground space development integrated with
underground UMRT stations can also benefit future urban development. Another important
impact is energy saving due to the shift from the fossil fuel-consuming road vehicles to the
energy-efficient UMRT.
16.16 While all of the impacts are largely positive, the UMRT Line 2’s financial viability is
less significant, with an FIRR of 4%, as is always the case in UMRT development in the world.
However, it is estimated that revenues can sufficiently cover the operation and maintenance
cost with a revenue-to-O&M cost ratio of 1.8 at the start of Phase 1, which will gradually
increase to 3.2 when the line is fully completed.
16.17 It is concluded that UMRT Line 2 is a highly feasible project, provided the government
is responsible for finance and management of the process to ensure the realization of the
expected benefits while minimizing the negative impacts.
Implementation Strategy
16.18 The proposed funding strategy calls for the UMRT 2 to be developed using public
funds. However, the operations and maintenance of the system should be conducted in a
self-sufficient manner through fare revenues and ancillary revenue sources, as is
demonstrated to be feasible by the financial analysis. On the off chance that revenues could
not cover O&M cost, support from the state (eg MOT) and/or HPC should be readied so as
not to jeopardize the upkeep and safe operation of UMRT 2. Finally, funds for the acquisition
of ROW would be sourced from public funds. Private sector involvement in funding the project
is not likely or will not be significant considering the poor financial indicators of the project.
16.19 ODA funding is recommended to be tapped at least for Phase 1. The ODA fund will
be channeled to UMRT 2 via a re-lending mechanism in which the state will receive the ODA
loan and re-lend it to HPC to develop UMRT 2, since it is contemplated that HPC will be the
implementing agency of UMRT 2.
16.20 To develop and operate UMRT 2 as well as other UMRT lines, it is recommended that
HPC create the Mass Transit Authority (MTA) which will plan, design, build, finance, and
initially run UMRT Line 2. In the future, as experience and expertise in operating UMRT grows,
the task of operating and maintaining the system is to be divested to private entities under a
competitive framework, and the MTA will focus on network planning and rail network
expansion as well as on regulations (technical and economic).
16.21 MTA will also take the lead in rail-related property development. The transit-oriented
development (TOD) concept is proposed, wherein high-density commercial use is developed

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within the near vicinity of stations and medium density residential developments are
established further out. To maximize the opportunities for commercial development within the
context of the TOD concept, it is recommended that MTA should consider schemes such as
joint commercial development ventures and land readjustment arrangements to coordinate
land owners and to generate sufficient land for integrated urban development. It is expected
that revenues from land development would not only generate large funds for MTA for rail
investment, but will also enhance the function and effectiveness of UMRT 2.

16.2 Prefeasibility Study of Ring Road 4 West

Objective
16.22 Ring Road 4 (RR4) West is the western segment of the proposed fourth
circumferential road of Hanoi in the HAIDEP Urban Transportation Master Plan. According to
this master plan, RR4 West is scheduled for operation by 2013. The objective of this
prefeasibility study is to examine more closely the viability of RR4 West.
16.23 Important roles of the RR4 are both from the transportation and urban development
perspectives. RR4 aims: (i) to promote urban growth; (ii) to distribute traffic along major
corridors effectively; and, (iii) to provide effective interface between urban and regional
transportation. Without RR4, the future urban development orientations in the HAIDEP
General Plan would not be realized.
Alignment and Technical Standards
16.24 The alignment and technical standards of RR4 are very important and its location
should not be too far nor too near to the central urban area1. The optimal location is along the
fringes of the future urban areas to promote the desired urban development and to serve both
urban and inter-city traffic in the most efficient manner. Technical standards must be
expressway standard because RR4 is the interface of urban and inter-city traffic, meaning it is
also a part of the inter-city expressway network.
16.25 Ring Road 4 West starts from NH2 in Noi Bai in the north and ends on NH1A in
Thanh Tri in the south for a total length of 45.35km, traversing the boundaries of Hanoi, Vinh
Phuc, and Ha Tay provinces, some 15 to 20-kilometer radius from the city center. The
alignment requires a 1.86km bridge over the Red River near Thuong Cat Commune in Tu
Liem District (Hanoi).
16.26 Demand forecast suggests that a four-lane divided cross-section would be sufficient.
The median will be enlarged to reserve space for additional two lanes for future expansion. In
addition, frontage roads will be provided along the sides of RR4 West to offer access to
developments along its corridor. The typical ROW requirement of RR4 West is 80m.
16.27 As the alignment goes through a largely undeveloped corridor, the alignment will pre-
dominantly be at-grade on embankment (at ground level + 6.5m) to accommodate road boxes
to be installed, allowing local roads to cross RR4. Additionally, elevated structures would be
utilized for approaches to interchanges, the bridge, and railroad crossings. RR4 West will
feature six interchanges on NH2, NH23, NH32, Lang - Hoa Lac Expressway, NH6, and NH1
Expressway.

1
The MOT Master Plan also has proposed a fourth circumferential road for Hanoi but it is aligned farther from the city center compared to
HAIDEP’s proposed alignment, as the MOT alignment positions RR4 West along a 25 to 40-kilometer radius from the city center. The
analysis showed that it is positioned too far from the city center to function appropriately as a bypass, especially the northern section,
which is some 40km from the city center. Moreover, due to its distance from the city center it could not function as a boundary to limit urban
sprawl. Thus the alignment of RR4 is proposed to be moved closer to the city center.

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16.28 RR4 West is estimated to cost US$ 639 million, which includes construction,
engineering, contingency, and land. Land cost is US$ 128 million or 20% of project cost. A
breakdown of the total project cost per section is shown below. Additionally, operating and
maintaining RR4 West would require approximately US$ 30 million/year on average.
(i) Package 1 (NH1 - NH6), 12.8km US$ 134 million
(ii) Package 2 (NH6 - Red River), 15km US$ 160 million
(iii) Package 3 (Red River Bridge, including approaches), 7.1km US$ 235 million
(iv) Package 4 (Red River – NH2), 10.5km US$ 109 million
Estimated Demand
16.29 RR4 West is contemplated to be self-sufficient as possible, thus tolls will be charged
at revenue-maximizing levels. The proposed toll system is an open system, utilizing a flat
charge. The revenue-maximizing toll level is determined to be VND 25,000 per car by 2020.
Under this toll scheme, total users of RR4 West would be around 85,000 pcu/day. For the
whole stretch of RR4 West the average section traffic would be about 30,000 pcu/day and a
V/C ratio of 0.4. The busiest segment would be the Red River Bridge with traffic of nearly
40,000 pcu/day and a V/C ratio of 0.6.
Evaluation
16.30 The following details the environmental, social, economic, and financial evaluation of
RR4 West. On the whole, RR4 West is considered highly viable and recommendable for
implementation, although some issues require strategic intervention, especially with regard to
finance.
16.31 Major environmental impacts anticipated of RR4 West are (i) effects to surface water
flow, which could cause flooding; (ii) increased air pollutants from motor vehicles; (iii) and
splitting of communities. During construction, impacts of earthworks, noise and vibration have
also been identified. The effect of the bridge on the natural flow of sediments and erosion is
also critical. On the other hand, RR4 will positively impact land use in the area, particularly by
containing urban sprawl, thereby preventing further intrusion of urban activities into natural
and agriculture lands, which would otherwise occur without the project. At any rate, negative
impacts should be prevented or mitigated with careful and proper physical design and
implementation protocols.
16.32 RR4 West will further directly affect some 200, mostly low-income, households, who
will be required to move out of their residence. Land subject to ROW acquisition covers about
375ha which is mostly agriculture land and some limited residential land. Just compensation
and due consultation and coordination with the affected land owners/residents is necessary.
16.33 The quantified economic benefits derived from RR4 West stems from the
decongestion of roads within urban Hanoi by distributing traffic. Considering only the
transportation cost savings, the RR4 West is assessed to be very economically viable with an
EIRR of 18.6%. Benefits accruing from efficient urban development are not quantified,
although it is expected to be significant; thus, the positive economic impact of RR4 West is
very robust.
16.34 On the other hand, the financial evaluation of RR4 West showed that the project is
moderately viable with a 9.5% FIRR against a widely used benchmark in Vietnam of 12%.
One key factor attributing to the relatively low financial indicator is the high cost of the Red
River Bridge. With proper cost sharing between the government and the investors, the project
could be carried out under a PPP or PFI scheme.

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Implementation Strategy
16.35 The results of the financial analysis imply that a public-private partnership scheme
wherein the public sector shoulders a part of the construction cost would be feasible. At this
point a build-operate-transfer scheme (ie without subsidies) is highly unlikely.
16.36 There are two options that can be considered: (i) O&M concession, and (ii) build-
transfer-operate (BTO) concession. The O&M concession involves minimal risks to the
private concessionaire, wherein its investment would only be the toll facilities, while the
government shoulders most of the fund requirements. The preliminarily proposed BTO
scheme is that the private concessionaire will build the Red River Bridge segment (Package
3) plus toll facilities, while the government will cover the rest of RR4 (packages 1, 2, and 4).
Upon completion, the concessionaire will then operate the entire RR4 West. Under the BTO
scheme, the concessionaire will handle 37% of the project cost and if the concessionaire
retains all toll revenues, the equity IRR is extremely high at 27.8%, assuming a 30-year
concession. Thus a mechanism for the public sector to receive a portion of the revenues or
for shortening the concession period once a reasonable profit is attained is recommended.
16.37 Land acquisition is proposed to be covered by public funds. However, it is
recommended that ODA funding be tapped to cover for, or at least augment, public sector
funding for its share in the RR4 West project cost, considering the limited budget of the public
sector at present.
Figure 16.2 Location of Ring Road 4 West

LEGEND
National Road
Provincial Road
Other Roads
Railway
RingRoad 3
Ring Focus
Residential Area
District Boundary
Provincial Boundary
Waterface

RR4

RR3

RR4 West

r = 7 .5 k m

r = 15 k m

Source: HAIDEP Study Team.

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Table 16.3 RR4 West Project Cost1)

Project 1 2 3 4 All
Package
NH6 to Red Red River Red River to
NH1 to NH6 NH1 to NH2
Section River Bridge2) NH2
Section
Length (km) 12.85 15.00 7.1 10.5 45.35
Construction 80.9 83.7 197.4 70.0 431.9
Engineering 6.1 6.3 14.8 5.3 32.4
Contingency 8.7 9.0 21.2 7.5 46.4
Land 38.1 61.3 2.4 26.2 128.0
Total 133.8 160.2 235.7 109.0 638.7
Source: HAIDEP Study Team.
1) In US$ million.
2) Red River Bridge includes the main bridge and approaches.

Figure 16.3 Location of interchanges on Ring Road 4 West and Typical Cross-section

RR4 West Typical Cross-Section

Source: HAIDEP Study Team.

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17 IMPLEMETATION
17.1 Investmant Cost
17.1 The total Investment cost of the HAIDEP subsectors reached US$ 36,400 million
including projects of the central government and those generating revenue or imposing user
charges such as public transportation, expressways, ports, airports, water supply, housing,
etc.There are also projects which can be implemented based on PPP schemes. Value capture
from intergrated developments can also be expected. Thus the funding of the city can be
reduced to about US$ 21,400 million (see Table 17.1). Roads require the largest share or
US$ 214,000 million, followed by parks and green spaces (US$ 5,200), public transportation
(US$ 3,800), and drainage/sewerage (US $3,100).
Table 17.1 Total Investment Cost by Subsector
Project Cost Cost to Hanoi
Sector Component
( US$ mil.) % US$ mil.
Urban Urban Roads 7,993 95 7,593
Transportation Traffic Management and Safety 444 100 444
Public Transportation (Bus + UMRT) 5393 70 3,828
Subtotal 13,830 - 11,865
Regional Road 4,610 - -
Transportation Rail 2,582 - -
Airport 3,350 - -
IWT Port 178 - -
Subtotal 10,720 - -
Urban Water Water supply 581 50 291
and Sanitation Drainage 2,085 100 2,085
Sewerage 1,046 100 1,046
Flood Control 223 100 223
Lake Improvement 114 100 114
Subtotal 4,047 - 3,759
Living Housing 2,562 20 512
Conditions Park and Green Space 5,223 100 5,223
Subtotal 7,785 - 5,735
Total 36,381 - 21,359
Source: HAIDEP Study Team.
17.2 Roads, public transportation, parks, and drainage/sewerage systems are basic
infrastructures which support urban development for long and require large amount of funding
as are experienced by other cities. However, it must be pointed out that the investment cost
includes a fairly large amount for lands and resettement. For example, of the US$ 7,990
million for urban roads, the share of lands and resettment is as much as 63% or US$ 5,050
million. Parks require US$ 3,480 million or 67% of the investment cost. This implies how
critical it is to acquire space for infrastructure development efficiently and effectively. While
large funds are required for infrastructure development, it is also true that the value of lands
and property increases, various economic development opportunities are created, thereby
generating benefits that far exceed investment costs. This also clearly indicates why
infrastructure development must be undertaken hand in hand with urban development to
lessen social friction due to land acquisition and resettement as well as to maximize the
benefits from infrastructure development.
17.3 Projects were identified for the subsectors of urban transportation, regional
transportation, urban water and sanitation, living conditions, and urban development, as
shown in subsequent paragraphs.
Urban Transportation
17.4 The urban transportation subsector includes urban roads (43 projects at a cost of
US$ 7,980 million), traffic management (6 projects, US$ 440 million), and public
transportation (5 projects, US$ 5,470 million) (see Table 17.2).

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Table 17.2. Proposed Urban Transportation Projects

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Regional Transportation
17.5 This subsector comprises primary roads including expressways (19 projects at
US$ 4,610 million), railway (16 projects at US$ 2,680 million), airport (1 project at
US$ 3,350 million), inland waterway/ports (5 projects at US$ 180 million) (see Table 17.3).
Table 17.3 Proposed Regional Transportation Projects

Urban Water and Sanitation and Living Conditions

17.6 The urban water and sanitation subsector includes water supply (6 projects at
US$ 580 million), drainge (9 projects at US$ 2,080 million), sewerage (12 projects at
US$ 1,050 million), flood control (5 projects at US$ 220 million), and lake improvement (3
projects at US$110 million) (see Table 17.4).

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17.7 The living conditions subsector includes housing (2 projects at US$ 2,560 million) and
parks (7 projects at US$ 5,220 million) (see Table 17.5.)
Table 17.4 Proposed Urban Water and Sanitation Projects

Table 17.5 Proposed Living Conditions Projects

Source: HAIDEP Study Team.

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Urban Development
17.8 This subsector is self-financing based on the development of the infrastructure
mentioned in previous sections. Its main categories include: (i) greenery improvement and
cultural promotion, (ii) redevelopment/improvement of existing urban areas, (iii) new
development in new urban areas, (iv) rural area improvement, and (v) industrial and logistics
improvement (see Table 17.6).
Table 17.6 Proposed Urban Development Projects
Main Function
Urban
Category Development Purpose Code Title Location1) (ha) Culture/ Poverty
Compe- Livability
Environ’t Reduction
titiveness
1. Greenery 1-1 Historical and Cultural UD01 Ancient Quarter Revitalization HK (100) V V V V
Improvement Heritage Site Improvement UD02 French Quarter Preservation and Redevelopment HBT (140) V V
and Cultural UD03 Son Temple Historical and Natural Tourist Zone SS (2,100) V
Promotion 1-2 Red River Revitalization TH,HK,HBT,HM,
UD04 Green River Corridor Development V
GL,LB,DA (85km)
UD05 Thang Long-Hoan Kiem River Waterfront Development HK-HBT (115) V
1-3 Co Loa- Thang Long Green UD06 Co Loa Citadel Renovation DA (755) V
Axis Development UD07 Co Loa South Green Zone Development DA (1,290) V
Recreation Network Development (cycling & pedestrian) along Ho
UD08 TH (40) V
Tay
1-4 Green Network Development TH, BD, HBT, HK,
UD09 Park Network from Ho Tay to Yen So V
HM (10.9km)
UD10 Park within retention ponds Citywide V
UD11 Lakeside Park Development Citywide V
UD12 Community-level Park Development Citywide V V
1-5 Education & Research UD13 School Network Development Citywide V
Facilities Development UD14 Higher Education & Research Center Devt. in Tay Mo TL (397) V
UD15 Higher Education & Research Center Devt. in Trau Quy GL (150) V
UD16 Higher Education and Research Center Devt. in Van Tri DA (149) V
2. Redevelop- 2-1 Poor Living Conditions UD17 Tools No.1 Factory Area (KTT) Redevt. (along w/ UMRT2) TX (8) V V
ment and Improvement UD18 Dong Tam Area (KTT) Redevt. (along w/ UMRT1) HBT (11) V V
Improvement UD19 Phuong Mai Area (KTT) Redevt. (along w/ UMRT1) HM (11) V V
of Existing UD20 Van Chuong Area (incl KTT) Redevt (along w/ UMRT1/3) BD (97) V V
Urban Areas UD21 Other KTT improvement 19 KTT V V
2-2 Urban Redevelopment with UD22 Hanoi Station Area Redevt in relation to UMRT No.1 DD (53) V
Public Transportation UD23 Thanh Xuan Area Urban Redevt in relation to C3-NH6 TX (90) V V
UD24 Long Bien Comm’l Center Area Redevelopment on NH5 LB (140) V
UD25 Soc Son Comm’l Center Area Redevelopment on NH3 SS (20) V
UD26 Station area redevelopment Citywide V
2-3 Redevelopment of Factory UD27 Minh Khai Area (industry area) Redevelopment HM (155) V V
Relocation Site UD28 Phap Van Area Redevt. for Town Comm’l Ctr on NH1A HM (24) V V
UD29 Redevelopment of SOE factory site HM, TX V V
3. New 3-1 Ongoing or Committed New UD30 Ciputra urban area development TH, TL (353) V
Development Urban Development in Urban UD31 Cau Giay new urban zone CG (680) V
in New Urban Fringe and Suburban Area UD32 My Dinh new urban zone CG, TL (880) V
Areas UD33 East Nhue new urban zone TL (600) V
UD34 Dinh Cong- Linh Dam new urban zone HM (640) V
UD35 Den Lu District center development HM (110) V
UD36 Viet Hung New Town Development LB (302) V
UD37 Dong Anh New Town Development (Phase IA) DA (2100) V
3-2 Van Tri New Town (3,550 ha) UD38 Van Tri new urban housing development with UMRT2 DA (1,435) V
UD39 Van Tri urban center devt along NH5 extn/UMRT2 DA (68) V
UD40 Van Tri water front park development DA (180) V
3-3 Development of Competitive UD41 Ho Tay West Area New Devt. in New UMRT Terminal TH-TL (490) V
Urban Centers UD42 Gia Lam Airport Urban Center Development LB (385) V
UD43 New Ha Dong Business Commercial Center HT (75) V
3-4 Transportation- oriented UD44 Thuy Phuong New Urban Housing Devt. w/ UMRT4 TL (390) V
Development of Residential Areas UD45 Ha Dong New Urban Housing Devt. w/ UMRT2 HT (443) V
UD46 Soc Son New Urban Hsng. Devt. w/ Dong Anh Ind’l Park SS (1,075) V
UD47 Thach Ban-New Urban Housing Devt. w/ UMRT1 LB (100) V
3-5 Low-density Residential Area UD48 Urban Village Improvement Citywide V V
Development UD49 Tay Huu urban village improvement TL (195) V V
4. Rural Area 4-1 Improvement of Community UD50 Rural service center development Citywide V V
Improvement Service Centers in Rural Areas UD51 Soc Son Rural Area Improvement SS (3,015) V
4-2 Craft Village Improvement UD52 Lien Ha Handicraft Village Area Improvement DA (810) V V V
UD53 Bat Trang Handicraft Village Area Improvement GL (87) V V V
5. Industrial & 5-1 Industrial Park Development UD54 Soc Son Airfront Industrial Park SS (550) V
Logistics UD55 Duong Xa Industrial Park at NH5 GL (360) V
Improvement UD56 Light Industry Park Devt. in Ngoc Hoi at C4-NH1A TT (64) V
UD57 Light Industry Park Devt. in Tram Troi at C4-NH32 HT (85) V
UD58 Light Industry Park Devt. in Van Canh at C4-Hoa Lac HT (67) V
UD59 Light Industry Park Devt. in Nhan Trach at C4 HT (87) V
5-2 Logistics Improvement UD60 Reg’l Logistic Terminal Devt. in Phu Cuong at NH2-NH18 SS (140) V
UD61 Wholesale Market2) East Center at NH5-NH1A LB (74) V
UD62 Wholesale Market2) West Center at C4-NH6 HT (67) V
Source: HAIDEP Study Team
1) CG = Cau Giay, DA = Dong Anh, DD = Dong Da, GL = Gia Lam, HBT = Hai Ba Trung, HK = Hoan Kiem, HT = Ha Tay, HM = Hoang Mai, LB = Long Bien, SS = Soc Son, TH = Tay Ho, TL = Tu Liem, TT = Thanh Tri, TX = Thanh Xuan
2) Fresh food and other commodities
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17.2 Prioritization of Projects and Project Packages

Possible Budget Envelope
17.9 It is difficult to estimate the funding capacity of the government for the entire urban
sector, since sufficient data to analyze public expenditure on urban sector development in
Hanoi are unavailable. In 2001, however, HPC spent 1.3% of its GRDP or roughly VND 500
billion, although it was assumed that much more was spent by the HPC and the central
government due to the availability of ODA funds.
17.10 In order to provide a possible budget envelope for the city, three scenarios were
assumed using various percentages of the future GRDP (see Table 17.7). Based on the
assumptions that the GRDP would grow at an average annual rate of 11% through 2020 and
that 4.0%, 6.0%, and 8% of it would be allocated for urban sector development, the possible
budget envelope for the city between 2006 and 2020 would be US$ 6.6 billion, US$ 9.9 billion,
and US$ 13.1 billion, respectively.
Table 17.7 Possible Budget Envelope for the Urban Sector
Assumed Share of Urban Sector in GRDP
GRPD1)
Year (US$ mil.)
(US$ billion)
4.0% 6.0% 8.0%
2005 4.3 173 260 346
2006 - 2010 4.7- 7.2 1,189 1,784 2,378
2011 - 2015 8.0 - 12.2 2,005 3,008 4,010
2016 - 2020 13.6 - 20.6 3,378 5,067 6,756
Total (2006-2020) - 6,572 9,859 13,144
Source: Estimated by the HAIDEP Study Team.
1) An average annual growth rate of 11% through 2020 was assumed.

Project Evaluation and Prioritization

17.11 While the lists of projects identified in subsector planning have been prepared, the
next step is to prioritize them in compliance with the overall urban development policy, as well
as economic, financial, social, and environmental viabilities, and others. Even though
individual projects are feasible, it is often the case that the budget envelope of the government
is limited. In HAIDEP project prioritization was undertaken as explained briefly below (see
Figure 17.1).
Figure 17.1 Framework for Project Evaluation and Prioritization

List of Projects

Budget Evaluation Economic

Envelope Analysis

Initial List of
Priority Projects

• Financial Sustainability
• Urban Growth Strategy
Evaluation • Social Aspect
• Project Interactions
• Environmental Assessment

Proposed Projects/
Source: HAIDEP Study Team. Project Packages

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17.12 The infrastructure development must be undertaken in a way that it will support and
promote desired growth of urban areas. This is particularly important for Hanoi where future
expansion of urban areas is unavoidable and expected to be significant. Main transportation
infrastructures play a key role in guiding the urban expansion, while environmental projects
and utility service project must be implemented in coordination with the development of urban
areas. In this process, adequate institutional and support measures are provided to encourage
orderly private sector investment. Planned growth strategy is conceptually illustrated as shown
in Figure 17.2.
Figure 17.2 Planned Growth Strategy for Urban Areas
Legend
Development Stage
1 2006-2010
3 2 2010-2015
3 2015-2020

1
2 1

2 3

1
1

Source: HAIDEP Study Team.

Road Projects
17.13 Based on the criteria mentioned in the previous section, the projects were prioritized by
categorizing all 43 transportation project packages into short-term, medium-term, and
long-term projects. Figure 17.3 shows the future road network by development stage. There
are 13 projects selected for each stage. While long-term projects entail relatively lower project
costs, their lengths are the longest. This is because such projects tend to be located in the
urban fringe or rural areas. In addition, while estimated project costs may be lower, these can
escalate when urbanization has spread to these areas.
UMRT Projects
17.14 Because of the high investment costs of UMRT, especially urban rail projects, EIRR is
normally calculated relatively low when only quantifiable benefits such as reduction in
transportation costs are considered. However, the impact of UMRT on overall urban

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development is significant, especially as a core intervention to transform the urban area and
society to public transport based. This high priority was given to all four UMRT lines.
Table 17.8 Prioritization of UMRT Projects
Economic Evaluation
Length Financial Cost
Line Priority
(km) (US$ mil.) EIRR (%) NPV (US$ mil.) B/C

UMRT Line 1 39 999 19.1 450.3 1.75 H

UMRT Line 2 75 2,522 14.6 772.5 1.54 H
UMRT Line 3 33 1,145 14.3 414.6 1.50 H
UMRT Line 4 53 365 21.5 880.8 3.31 H
All Lines 200 5,031 15.2 2,057.9 1.84 -
Source: HAIDEP Study Team.

Figure 17.3 Prioritization of Road Projects

Source: HAIDEP Study Team.

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Urban Water and Sanitation Projects

17.15 Projects identified for the urban water and sanitation subsector were prioritized using
several criteria (see Table 17.9).
Table 17.9 Prioritization of Urban Water and Sanitation Projects
Component Criterion
Water Supply 1. Urgency (stable supply of water)
2. Necessity (supply of potable water)
Drainage 1. Population density
2. Economic activities
Sewerage 1. Population density
2. Economic and public activities
3. Environmental conservation
Source: HAIDEP Study Team.

17.16 Based on each criterion or a combination thereof, projects were prioritized as follows:
(1) Water Supply System: WS-1, WS-3, and WS-5 were prioritized to cope with water
demand in the southwest, southeast, and north of Hanoi, respectively up to 2010.
(2) Drainage System: WD-1 was prioritized as an urgent project that has to be completed by
2010.The financial arrangement is under negotiation with JBIC, and it is expected that the
project will start in 2006.
(3) Sewerage System: WW-1, WW-2, WW-3, WW-4, and WW-5 were considered urgent.
All the projects except WW-4 should be completed by 2010, taking environmental
conservation into account.
17.17 The next steps toward implementation are as follows:
(1) Water Supply System: The feasibility studies (FS) for WS-1, WS-3, and WS-5 should be
started as soon as possible to facilitate their early implementation. It should be noted that
even if the feasibility study starts in 2006 the projects will be completed only by 2011 due
to the implementation time required.
(2) Drainage System: WD-1 is expected to start in 2006 and complete by 2010. The
feasibility studies for WD-2, WD-3, and WD-4 should be conducted before 2010 and
project implementation will not occur in the first 5 years (~2010) but in the next 5-year
period (~2015).
(3) Sewerage System: The feasibility studies for WW-3, WW-4, and WW-5 should be started
to facilitate their early implementation and completion until 2010.
(4) Solid Waste Management: No project was identified, but recommendations were
prepared (see Table 17.10).
Table 17.10 Recommended Projects on Solid Waste Management
No. Project
R-1 Consideration of alternative landfill sites for interregional waste disposal
R-2 Study on the construction of septage treatment plant
R-3 Study on mitigation measures to minimize environmental impact around Nam Son
R-4 Study on use of incinerators
R-5 Study on capacity development on solid waste management
R-6 Revision of master plan based on the results of the 3R Program
R-7 Promotion of community participation in 3R activities
Source: HAIDEP Study Team.

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17.3 Proposed Strategic Actions

17.18 In order to implement urban development comprehensively, each subsecter should
undertake projects and actims toward the shared vision and goals in a synchronized manner.
What is need is not only the infrastructure as hardware, but also various soft measures to
manage and operate them effectively. A conducive environment that nurtures a level playing
field is likewise necessary. On the basis of the discussions and identified projects in previous
chapters, projects and actions with strategic importance are summarized, as shown in Table
17.11.
Table 17.11 HAIDEP-proposed Strategic Actions
Project Support Related
Projects/Action
component Scheme Projects
Sector /Actions
Schedule Infras Institut Fundi
Code Title services
O&M
ion ng
TA PPP
ST MD LT
A. PA1. Develop globally competitive strategic PC1, PC3
Regional growth corridors ◎ ◎ ◎ ◎ ◎ ◎ PD15
Developmen
t (Regional PA2. Cross-border transport and regional
development △ ○ ◎ △ ◎ PA3
Role of
Hanoi) PA3. Establish coordinated regional PA3, PA4,
investment promotion program and △ ◎ ◎ △ ◎ △
one-stop center PC1, PC3
PA4. Establish regional planning database PA3, PA5,
and management system △ ◎ ○ ○ ◎ △ PA6, PJ1
PA5. Establish regional coordinating PA3, PA4,
councils among northern provinces △ ○ △ △ △ ― PA6
PA6. Establish planning capacity building PA3, PA4,
institutions on urban/regional ○ ◎ ○ ○ ◎ △
development PA5
B. PB1. Establish development and growth strategy PD6,
Urban for key urban corridors ◎ ◎ ◎ ◎ ◎ ◎ PD9, PH3
Developmen
t Growth PB2. Strategic development of new CBD in
Dong Anh ◎ ◎ ◎ ○ ◎ ◎ PB1, PD9
Management
PB3. Establish strategies, mechanism for PD5, PG3,
upgrading/rebuilding of existing urban ◎ ◎ ◎ △ ◎ ○
areas PH3, PI1-2
PB4. Establish strategies and mechanism
for other identified action areas ○ ○ ◎ ○ ◎ ○ PI 1-6

C. PC1. Establish updated urban economic PA1, PA3,

Economic development strategies and ― ― ○ ― ○ ○
conductive investment environment PJ6
and Social
PC2. Establish supporting mechanism for
Developmen
SMEs including informal sector ― ― ○ △ ○ △ PC6
t
PC3. Establish competitive urban industrial PA1, PA3,
estates/zones ○ ○ △ ○ ○ ○ PC6
PC4. Strengthen capacity and technological
linkages of higher education and ○ ◎ ○ ○ ◎ ○ PC1
urban industries
PC5. Strengthen tourism promotion,
infrastructure and services ○ ○ △ △ ○ ○
PC6. Develop effective mechanism to
PC2,
address urban poverty and rural ○ ◎ ○ ○ ◎ ○
issues PC3, PF1
D. PD1. Establish coordinated mechanism for
Urban preparation, monitoring and
upgrading of the urban transport ― ○ △ △ ○ ― PD2
Transportation
master plan
PD2. Develop and conduct capacity
building program on transportation △ ○ △ △ ◎ △ PD1, PJ4
planning and management
PD3. Strengthen traffic management and PD10,
safety improvement capacity ○ ○ △ ○ ○ △ PD11
PD4. Complete key sections of main roads
in Hanoi ○ △ ― ○ △ ― PB3

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Project Support Related

Projects/Action
component Scheme Projects
Sector /Actions
Schedule Infras Institut Fundi
Code Title services
O&M
ion ng
TA PPP
ST MD LT
PD5. Develop urban roads in integration PB3,
with urban development ○ ○ ◎ △ ◎ ○ PD12
PD6. Comprehensive improvement PB1,
/development of sidewalk network ○ ○ ○ ○ ○ ○
and space PD11

PD7. Expand and improve bus services ○ ◎ ○ ○ ○ ○ PD8

PD8. Establish clear policy and support

measures for paratransits including ○ ○ ○ △ ○ ○ PD7
taxi, xe om and other services
PB1,
PD9. Integrated development of UMRT
network ◎ ◎ ◎ ◎ ◎ ○ PB2,
PD14
PD10. Establish comprehensive parking
policy and facility development ◎ ◎ ◎ ○ ◎ ○ PD3

PD11. Comprehensive improvement of

traffic environment in CBD ○ ◎ ○ ○ ◎ ○ PD3, PD6

PD12. Comprehensive improvement of

transportation and urban ○ ○ ○ ○ ○ ○ PD5, PH4
environment in key corridors
PD13. Develop water transportation
services in Hanoi ○ ○ △ ○ ○ ○ PE4

PD14. Improve inter-city public

transportation services between
Hanoi and satellite cities/urban ○ ○ △ ○ ○ ○ PD9
areas
PD15. Improve public transportation
services between rural and urban ○ ○ △ ○ ○ ○ PA1
areas
E. PE1. Develop surface water resources and
Water and related water distribution systems ◎ ○ △ ◎ ◎ ○ PG3
Sanitation
PE2. Develop drainage systems with
multipurpose flood protection ◎ ○ ○ ◎ ◎ △ PE4
reservoir
PE3. Develop sewerage system for the
urban core ◎ ○ ○ ◎ ◎ △ PG3

PE4. Develop water flow diversion system PD13,PG

for environmental maintenance of ◎ ◎ ○ ◎ ◎ △ 2, PG3,
rivers and lakes PI4
F. PF1. Establish policy and institutional
Housing and framework for sustainable provision ◎ ◎ ◎ ○ ◎ △ PC6
Living of affordable housing
PF2. Establish participatory monitoring
Conditions
system of living conditions at △ ○ ○ △ ◎ ○ PG4, PJ1
community level
PF3. Improve technical standards for
buildings and their maintenance △ ◎ ◎ △ ◎ △

PF4. Improve adequate mechanism and

promote lands and housing supply △ ◎ ◎ △ ◎ △ PJ3

PF5. Establish effective mechanism to

promote redevelopment of old public △ ◎ ◎ △ ◎ △ PB3
housing areas
G. PG1. Develop comprehensive
Environment environmental mapping and △ ○ ○ ○ ◎ △ PJ1, PJ4
information system using GIS

PG2. Develop green belts around Hani ○ ◎ ◎ ◎ ○ △ PE4, PI3

PG3. Strengthen urban environmental PE1,

monitoring system △ ◎ ◎ ○ ◎ △ PE3, PE4

PG4. Develop parks at community level ◎ ◎ ○ ◎ ○ △ PF2

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Project Support Related

Projects/Action
component Scheme Projects
Sector /Actions
Schedule Infras Institut Fundi
Code Title services
O&M
ion ng
TA PPP
ST MD LT
H. PH1. Formulate comprehensive landscape PH4,
Urban guidelines and operate △ ○ ◎ △ ◎ △ PI 1,2,3
Design and
Landscape PH2. Implement landscape improvement
model project along main gateway ○ ○ ○ ○ ○ △
corridors (e.g. airport, road)
PH3. Implement two model projects for PB1, PB3
underground space development ◎ ◎ ◎ ◎ ◎ ○ PI1, PI2
PD12
PH4. Improve tree planting in Hanoi △ ◎ △ △ ◎ ○ PH1
I. PB3,
PI1. Sustainable development of Ancient
Special Areas Quarter ◎ ◎ ◎ ◎ ◎ ◎ PH1,
PH3, PJ6
PI2. Formulate and operate development PB3, PH1
guidelines for French Quarter △ ◎ ◎ △ ◎ ◎ PH3, PJ6
PI3. Improve Thang Long – Co Loa
historical, cultural and environmental ◎ ◎ ◎ ◎ ◎ ◎ PG2, PH1
core zone
PI4. Establish effective mechanism for and PB3,
implement development of ◎ ◎ ◎ ◎ ◎ ◎
outside-of-dyke areas PE4, PJ6

PI5. Construct spiritual tower at An Duong ○ ○ △ ○ ○ ◎ PJ6

PI6. Establish sustainable development

mechanism for Ho Tay environmental ○ ○ ○ ○ ○ ◎ PE4, PJ6
zone
J. PJ1. Establish and open to the public urban PA4, PF2,
Implementati planning information system △ ◎ ◎ △ ◎ △ PG1
on &
Management PJ2. Improve and operate urban planning
institutions △ ◎ ◎ △ ◎ △ PJ5

PJ3. Develop and adopt alternative urban PB1-4

development methods △ ◎ ◎ △ ◎ △ PF4

PJ4. Establish and operate urban facilities

management information system ○ ◎ ○ ○ ◎ ○ PD2, PG1

PJ5. Develop and implement urban

planning human resources △ ◎ ○ ○ ◎ △ PJ2

PJ6. Expand and strengthen funding PC1,

mechanism for urban development △ ◎ ◎ △ ◎ △ PI 1-6
Source: HAIDEP Study Team

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18 IMPLEMENTATION AND MANAGEMENT

Basic Direction
18.1 The proposed overall institutional framework for the HAIDEP Master Plan for Hanoi is
aimed at promoting the government as an enabler of urban development and services and not
merely as a provider. As Vietnam progresses toward a market economy, the government
should pave the way for the private sector to be more actively involved. The government sets
policies, establishes sector priorities, monitors private sector operations, promotes economic
growth, and takes proactive measures to improve the quality of urban life. Key to this is to
encourage public-private partnership in urban development and service provision.
Institutional Improvement
18.2 The proposed development planning framework for Vietnam (see Figure 18.1) consists
of the following: (i) enhancing planning capacities of district People’s Committees; (ii) unified
statutory plans in urban areas; (iii) establishment of a National Council for Construction
Planning; (iv) establishment of a Regional Planning Committee for interprovincial regional
plans; (v) enhancement of the planning coordination function of HPC and HAPI; (vi)
establishment of the Hanoi Public Transportation Authority; (vii) privatization of urban service
providers in water supply, garbage disposal, and sewage; (viii) improvement of planning and
research capabilities; and (ix) provision of training and professional recognition of town
planners.
18.3 The framework establishes a hierarchy of plans wherein the focus of construction
planning should include urban and regional development planning, while land-use planning
under the Land Law should relate to natural resources planning and the protection of
agricultural lands. As such, the operative physical plans within urban areas should be the
urban construction plans, while the operative physical plans outside the urban areas will be the
land-use plans.
18.4 Improvements to the urban planning system involve the following specific points:
(1) Urban Planning Objective: While traditional urban master plans were drawn up primarily
for construction purposes, there is now a need for Vietnam to develop a suitable urban
planning system to more effectively manage urban growth and development, as the
private sector is expected to play a more dominant role as initiator of urban development
in the future.
(2) Two-tier Urban Planning (General Plan and District Plan): The proposed statutory
urban plans for the city are: (i) General Plans, (ii) District Plans (Type 1 Detail Plan), and
(iii) Action Area Plans (Type 2 Detail Plans). The action area plans should also be
differentiated with the detail layout submission plans which are done by the
investor/developer in order to obtain planning permission/construction permits. The
general plan should be the strategic framework for the preparation of the lower tier plans.
(3) Land-use Zoning: The introduction of a land-use zoning system and the application of
use class tables to guide future land-use development are proposed. The types of building
activities that are permitted in each of the land-use zones are usually guided by the use
class tables. There are various formats of use class tables. Principally, however, they
contain a demarcation of the land-use zone on the map, the main development objectives
of the zones, permitted building uses, conditional building uses, and building uses not
permitted in the zones.

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Figure 18.1 Proposed Framework for Development Planning

Government
National Vision

Ministry sector plans/policies

MPI Proposed NCCP MONRE

National SEDP National physical planning National

policies/decrees land-use plans

MOC/RPC
Regional construction plans

Department sector plans

Within Urban Areas Outside Urban Areas

HAPI HPC
Urban construction plans
Provincial SEDP Provincial
HPC land-use plans
General plans

DPC
DPC DPC
Detailed plans
District SEDP District land-use plans

CPC CPC CPC

Commune
Commune SEDP Rural quarters construction plans
land-use plans

Socio-economic Urban and Regional Natural Resource Planning and

Development Planning Planning Protection of Agricultural Land

1. Urban area a s identified by the government. 4. DPC: District People’s Committee.

2. NCCP: National Council for Construction Planning (Proposed). 5. CPC: Commune People’s Committee.
3. HPC: Hanoi People’s Committee. 6. RPC: Regional Planning Committee.
Source: HAIDEP Study Team.

(4) Urban Development Management System: Urban development management control in

many cities is achieved through the application of three stages of control, namely: (i)
planning permission, (ii) building plan approval, and (iii) certificate of fitness for occupation
with feedback/cross-checking system to ensure compliance, of which the latter two is
lacking in Vietnam. The introduction of a planning permission system is proposed to
complement the existing construction permit system, which is an effective system to
manage not only construction activities but also land-use change and land subdivision.
(5) Determination of Key Public Facilities: One of the primary purposes of statutory urban
planning is to secure key public facility lands for the community. This is important in cities
that have high urbanization rates like Hanoi. It can be achieved by: (i) designating suitable
public facility land in the city’s urban development plan; (ii) new urban development
methods and growth management techniques; (iii) contribution from developers on public
facility land and low cost housing as part of the planning permission system; (iv)
development incentives to land developers; and (v) development charges.

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(6) Planning and Design Guidelines: There is also a need for comprehensive planning and
design guidelines to assist city planners in the planning permission process as well as in
preparing development plans. It should cover environmental impact assessment, urban
design and landscape, vehicle parking standards, tree preservation, etc.
(7) Public Participation: Public participation is an important component of the preparation
process of the city plan. The process of public participation is also confined in many
planning legislations. Public participation is especially important in both the preparation of
the urban construction general plans as well as detail plans, which is usually conducted in
the following two stages: at the preliminary plan stage when the analysis of survey is
reported, and after the draft final plan is prepared.
(8) Consolidation of Construction Law and Land Law: Currently urban planning is carried
out using the Law of Construction 2003, while land-use planning is provided for in the
Land Law 2003. This requires close integration between the two planning systems to
ensure a coordinated urban plan. It may also be necessary in the future to consolidate the
two planning systems under an urban and regional planning law. Alternatively, the
provisions on urban and regional planning could be expanded in the existing Construction
Law, which should be comprehensive to provide for all aspects of planning.
Urban Land Management and Development
18.5 Since an efficient supply of lands is critical in guaranteeing an effective urban
development, the improvement of the following elements is necessary:
(1) Control of Land and Building Subdivision: There appears to be very little control on the
subdivision of land and buildings especially in the urban fringes. Subdivision of land
involves the division of any plot of land into two or more allotments under separate land
titles. The urban planning system has not been effective in controlling land subdivision and
illegal conversion of land from agriculture to residential use. Generally the main legal
provision related to subdivision of land use are: (i) conformity to the statutory urban
development plan of the city; (ii) approval of the planning authority; (iii) minimum area of
the allotments; (iv) satisfactory means of access road, and so on. Similar to regulations on
land subdivision, there is also a need for regulations on building subdivisions.
(2) Urban Growth Boundary (Urbanization Promotion Area and Urbanization Control
Area): Urban growth boundaries (UGBs) are introduced to guide urban expansion, control
urban sprawl and protect agriculture lands. Generally urbanization is encouraged within
the urban growth boundary while urban development is strictly controlled outside this
boundary. UGBs are important to prevent urban sprawl and protect natural conservation
areas such as green belts and high productive agriculture land. UGBs should preferably
be physically identifiable such as roads, rivers, wetlands, forest areas, etc. wherever
feasible, to assist in the overall monitoring of plan implementation. The UGBs should also
be reviewed together with the review of the Urban Construction General Plan.
(3) Improvement of Property Market: There has to be greater efficiency and transparency of
land markets. Property market information should be regularly compiled so as to better
establish market values. The current official prices of the government are also criticized for
being too low, while some of the unofficial transacted prices may be speculative in nature.
Registration of land dealings especially land transfers are not only important to offer
protection for the purchaser/ mortgagee but also an important source of tax revenue and
an important basis for developing a market value for land and property.

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(4) Conversion of Agricultural Lands for Urban Use: Expediting the release of agricultural
land for urban development purposes is required. Releasing agricultural land for urban
development purpose is slow and problematic. A combination of new urban development
methods, such as joint ventures for commercial development, land readjustment, guided
land development, land taxation, and the use of urban growth boundaries, may be useful
in addressing these problems.
(5) Coordinated Development Program: The statutory urban development plan should also
establish a coordinated program for formulating and implementing infrastructure and
urban development projects. Infrastructure projects have to be planned in a coordinated
and integrated manner and have to operate within the overall framework of the city plan.
This is particularly important for transportation and drainage projects.
(6) Alternative Land Development Process: The current urban development methods
employed in Hanoi for larger foreign direct investment (FDI)-supported projects include: (i)
joint venture with SOEs which own land, and (ii) getting the city to acquire/ recover land
from existing LUR holders for the joint venture company to undertake the project, while
some other methods are applied for smaller projects. Most of existing land development
processes require government intervention in recovering the land or the participation of
SOEs with strategic land sites in the city. New urban development project methods may be
necessary to complement existing ones to accelerate the process of urban development.
Urban Sector Funding
18.6 Funding for urban sector projects can be obtained from various sources including
development allocations from the central government, local governments, private capital, as
well as overseas sources, including FDIs and ODA. Urban sector budgets for Hanoi are
coordinated by HAPI and DOF and prepared as estimates under the five-year SEDP and as
allocations under annual budgets (see Figure 18.2).
18.7 The existing revenue base of the city is not sufficient to fund future infrastructure
projects. As part of the financial strategy, the city may have to do the following:
(1) Expand Its Local Revenue Bases: Apply user charges and service fees to recover
operational and maintenance costs of providing urban services.
(2) Optimize Existing Funding Sources: Apply innovative project implementation methods
such as public-private partnerships / private financing initiatives, leverage ODA funding,
and earmark taxes for special purposes.
(3) Develop Long-term Borrowing Capacity: Issue local government bonds, project bonds,
etc. and access capital markets.
18.8 Good management of capital financing is important to reduce the prolonged financial
burden of repaying long-term debts of the city. The development of: (i) access to capital markets
and other credit finance; (ii) effective project implementation methods; and (iii) capacity
enhancement of property developer are required.
Application of Public and Private Partnership (PPP) Concept in City Development
18.9 As economy and private sector grow further, application of PPP concept is becoming
critical for effective management of urban development and sector administration. Main
aspects of the PPP are briefly decribed in succeeding paragraphs.

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Figure 18.2 Strategic Mobilization of Funding

Innovative PPPs/ Local Government Bonds/
PFIs, ODA, Project Bonds, Capital
special-use taxes Market
Make Efficient
Use of Existing
Funding
Prepare Good Achieve Stable Long-term
Strategic Management of Cash Flow and Borrowing for
Plan Capital Financing Creditworthiness Capital
Investment

Expand Local
Revenue Base
User charges and service
charges to recover costs of
providing urban services
Source: HAIDEP Study Team.
(1) Maximizing the Effect of Public Sector Resource Allocation: Resources in public
sector such as fund and man power are very limited. A key concept of Public and Private
Partnership is to maximize the effect of the public sector resource allocation when
implementing public sector projects. Under the PPP arrangement, the effect may expand
to a considerable extent with the power of private sector resources (fund, know how and
human resources) allocated to the project. In other words the public sector may be able to
“leverage” the effect of the input of 40 to become the out put of 100 by introducing the PPP
concept as illustrated in Figure 18.3.
Figure 18.3 Maximizing the Effect of Public Sector Resource Allocation
Conventional
PPP Public
Sector Method
Resources

40 40

60
Private Sector fund/
know how/
human resources

100 40
Projects Projects

Source: HAIDEP Study Team.

(2) Adopting Different PPP Models Based on Profitability: The profitability of the project
will decide what type of PPP model to be applied (see Figure 18.4). The projects that
HAIDEP proposes have a wide range of profitability from very profitable to non profit
producing (no user charges).
(a) Very high profitability: If a project is highly profitable, such as commercial
development in urban centers, HPC could arrange a PPP based on HPC’s land
provision to ask for the developer’s contribution of community infrastructure. This PPP
concept may also be applied to the integrated urban and UMRT development.

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(b) High profitability: When profitability is high enough for the project to be financially
self sustainable, self standing PPP model may be applied. Example of this may be a
toll road project with high traffic demand. Project of this type could go on the
conventional BOT bidding procedure.
(c) Medium profitability with risk: The third type model, risk and profitability supported
PPP will be applied to those projects that have a limited degree of profitability. Majority
of revenue producing projects in HAIDEP will fall into this category and require a
careful PPP structuring. Toll road with low traffic demand, UMRT systems, AQ urban
redevelopment, water bulk supply and so on are the example of this type. HPC will
have to involve in PPP structuring in terms of necessary risk and profitability support.
(d) Low profitability or nonprofit: Service purchase PPP model may have to be applied
to those projects with very low profitability where HPC will “purchase” the service that
the private sector produces by allocating HPC’s own funding resources. Examples are
the public housing, urban park development, etc. This model can be applied even to
the non revenue producing projects such as community facilities.
Figure 18.4 PPP Models Based on Profitability
High Profitability Low

Very High High Medium Low/

with Risk Non Profit
Commercial Toll Road with
Dev’t in high demand Toll Road with Public
Urban Center low demand, Housing, etc
UMRT, etc

Developers
Contribution

Community Level Self Risk & Service Purchase

Infra/ Integrated Standing Profitability PPP/ Integrated
Dev’t with UMRT PPP Supported Urban
PPP Development
Source: HAIDEP Study Team.

(3) Value Capturing of External Benefit of UMRT Systems: External benefit which a UMRT
system brings about to the City is very large and its huge investment can only be recouped
when the City is able to successfully capture the value that the UMRT system creates
along its corridor (see Figure 18.5). Tax revenue and user charge are used to fund its
construction and operation, but it is also essential to capture the value which people and
business benefit from the operation of the UMRT system (“beneficiary charge”). In order to
do the above, HPC should take an initiative in applying various PPP models in
implementing integrated commercial, office and residential projects that are: (i) directly
integrated with the stations/terminals, (ii) developed in the vicinity of the station/terminals,
and (iii) developed along the corridors of the UMRT systems. Thus, HPC will be able to
share a part of benefit that those PPP arrangements produce in the future to recoup its
huge initial investment in the long run.

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Figure 18.5 Value Capturing of UMRT’s External Benefit

External Benefit of UMRT system

Tax and User Charge

UMRT Line
Beneficiary Charge

Source: HAIDEP Study Team.

(4) PPP Opportunities in the HAIDEP Projects: There are a variety of PPP opportunities in
implementing the HAIDEP proposed projects (see Table 18.1). They are briefly as follows:
(a) Urban Transportation Subsector: There are many opportunities such as some of the
primary roads to be tolled and the projects in Traffic Management and Safety. The BRT
project may well be on the concession and some of the UMRT lines may be
implemented under PPP scheme although HPC may have to shoulder the cost of
infrastructure. Some of the secondary and tertiary roads may be developed through
the urban development projects initiated by the private sector developers.
(b) Regional Transportation Subsector: Some of the inter-city highways may be
implemented under a PPP scheme and even some of the regional railway links may
be considered subject to close coordination with VR. The new air port terminal of the
Noi Bai Airport could be developed under the PPP concession. Some of the IWT ports
could also be structured under PPP schemes.
(c) Living Conditions Subsector: The opportunities are rather limited, and considerable
funding allocation by HPC may be needed to make a PPP scheme possible. Some of
the housing and parks and green spaces may be procured through commercial and
residential development done by private developer under PPP arrangement possibly
with the contribution of public land.
(d) Urban Water and Sanitation Subsector: PPP opportunities may rather limited to the
water supply projects. However, some of the components even in the drainage,
sewerage, flood control and lake management could be structured under PPP scheme
if the service purchase PPP model is applied.
(e) Urban Development Subsector: This is a very promising sub sector where various
PPP schemes may be applied to the projects. HPC may be able to make use of the
high profitability of those projects and ask the developers for their contribution of
developing community level facilities such as tertiary roads, drainage and sewerage
and other community related facilities. A large PPP opportunities exist in the
commercial, office and residential developments directly integrated with the
terminals/stations of the UMRT systems and in the integrated urban developments to
be proposed in the vicinity of those UMRT stations and terminals.
Proposed Development Strategies and Actions for Implementation and Management
18.10 The proposed strategies and actions for the implementation and management of the
HAIDEP Master Plan are listed in Table 18.2.

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18.11 Priority projects and actions of strategic importance are identified as follows:
(i) Establishment of city planning database system which can be shared by all
stakeholders
(ii) Development of PPP project for the Ancient Quarter, French Quarter, and other areas
(iii) Drafting of the urban planning law
Table 18.1 PPP Opportunities in HAIDEP Projects
PPP Opportunities
Subsector Remark
Construction Maintenance Operation
Urban Primary Road yes but limited yes yes With high traffic demand
Transportation Secondary Road yes but limited yes but limited NA Through urban dev’t
Tertiary Road yes but limited yes but limited NA Through urban dev’t
Traffic Mgmt.& Safety yes yes yes Large support needed
Bus Transportation yes yes yes Concession PPP
Infrastructure developed by
UMRT yes but limited yes yes
public sector
Regional Roads yes but limited yes yes Inter-city expressway
Transportation Rail yes but limited yes yes Coordination with VR
Airport yes yes yes Terminal operation
IWT Ports Yes but limited yes yes Some port operation
Urban Water Water Supply yes but limited yes yes Coordination with HWBC
and Sanitation Drainage Yes but limited yes but limited yes but limited Service Purchase Model(SPM)
Sewerage Yes but limited yes but limited yes but limited SPM

Flood Control Yes but limited yes but limited yes but limited SPM

Lake Improvement Yes but limited yes but limited yes but limited SPM

Living Through commercial & resident’l

Housing Rental yes but limited yes but limited yes but limited
Conditions dev’t
Through commercial & residentl
KTT Improvement yes but limited yes but limited yes but limited
dev’t
Through commercial & tourism
Park and Green Space yes but limited yes but limited yes but limited
dev’t
Landscape yes but limited yes but limited yes but limited Thru commercial & tourism dev’t
Urban Greenery Improvement Through commercial & tourism
yes but limited yes but limited yes but limited
Development and Cultural Promotion dev’t
Redevelopment and Through urban development/
Improvement of Existing yes yes yes UMRT integrated dev’t
Urban Areas
New Development in Contribution of public land/
yes yes yes
New Urban Areas UMRT integrated dev’t
Through commercial & tourism
Rural Area Improvement yes but limited yes but limited yes but limited
dev’t
Industrial & Logistics
yes yes yes
Improvement
Source: HAIDEP Study Team.

Table 18.2 Proposed Development Strategies and Actions for Implementation and Management
Strategy Action Monitoring Indicator
J1 Reform of urban J11 Establish overall urban sector management policy • Progress of actions
planning system J12 Draft a new urban panning and development law
J2 Expand development J21 Review critically existing methods • Progress of actions
methods J22 Study alternative methods • Available institutions
J23 Institutionalize alternative methods
J3 Improve road J31 Improve land registration system • Available institutions
management system J32 Accelerate confirmation of land-use rights registration • No. of registrations
J4 Strengthen sector J41 Establish beneficiaries-pay principle and value capture • Available institutions
funding capacity mechanism • Borrowings
J42 Expand borrowing capacity
J43 Use ODA effectively
J5 Strengthen public J51 Institutionalize public participation on the process of planning • Available institutions
participation and project implementation • No. of participatory
J52 Improve accessibility to information by the people opportunities
J6 Strengthen planning J61 Establish comprehensive urban planning database and • Available institutions and
capacity information system systems
J62 Provide adequate planning tools • No. of persons trained
J63 Conduct training on planning
Source: HAIDEP Study Team.

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19 CONCLUSION AND RECOMMENDATIONS

Conclusion
19.1 In order to realize the vision of the city under a rapidly progressing urbanization, the
currently practiced urban planning and development system in Vietnam, in general, and in
Hanoi, in particular, requires improvement in various aspects. The need for establishing a
workable mechanism to promote sustainable urban development is urgent. The following
points were derived through the study process of updating the existing master plan:
(i) The improvement of the institutional framework must guide the large volume of active and
diverse development activities within the context of a progressive market economy,
wherein the contents and operation of the urban planning system must provide useful and
effective tools.
(ii) The improvement of the existing urban planning system in Vietnam can be done based
on the experiences and outputs of the HAIDEP Study as well as the existing systems
adopted in various developed countries like Japan.
(iii) The improved urban planning system must be associated with the introduction of a range
of project implementation methods and the development of organizations and human
resources to facilitate smooth urban development.
19.2 The General Plan proposed in the HAIDEP was prepared by updating the 1998
Master Plan and expressing the shared vision and goals as a spatial development strategy.
The plan is based on the strategic “water-greenery-culture” concept and aims at realizing a
public-transportation-based urban development and land use while ensuring the city’s
competitiveness, livability, and environmental sustainability. The plan also proposes a
structure integrating Hanoi with its neighboring urban areas and provinces. The HAIDEP
General Plan was prepared in response to the statement made in (i) above and is different in
its contents and operational purposes.
19.3 The sustainable urban development of Hanoi can be achieved by implementing
policies and actions for different subsectors such as urban development, transportation, water
and sanitation, as well as living conditions, in an integrated and coordinated manner. This
makes it possible to promote effective and efficient urban development, smooth acquisition of
lands for public infrastructure, as well as increased development benefits and municipal
revenues. Opportunities for private sector participation will also increase and the financial
burden on governments may also be lessened.
Recommendations
19.4 Being a large city Hanoi must carry out simultaneous tasks to realize the desired
urban development. These tasks are listed in the form of strategic actions enumerated in
previous chapters. Some, however, need to be emphasized more strongly than others due to
their strategic importance. These are the:
(1) Establishment and Practice of Comprehensive Urban Planning System: This aims to
promote capacity building on urban planning administration for institutions and individuals.
(2) Development of Mass Transit and Implementation of Integrated Development: In
parallel to the development of the UMRT Line 2 which was found feasible in the
prefeasibility study, related urban development should be undertaken in an integrated

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manner, while effective development mechanisms, such as PPP schemes, should be

established.
(3) Development of the Ancient Quarter and the Co Loa Area: These areas comprise the
heart of Hanoi where development pressure has been increasingly strong. If the current
situation continues without proper interventions, the area’s importance will be spoiled with
the progress of a disorderly development.
19.5 Role-sharing between the central government and the local government needs to be
reviewed from the viewpoint of promoting a more effective urban development. Specifically, a
coordination mechanism between the city plan and various plans of the ministries must be
streamlined to harmonize policies and projects. For example, urban transportation needs to
be properly segregated from and, at the same time, integrated with the regional transportation
system. Also, the conversion of agricultural lands for housing and urban development needs
to be accelerated in urban development promotion areas. As Hanoi is the country’s capital
and plays a critical role in the economic development of northern Vietnam and the country,
the government’s stable financial support is necessary.

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APPENDIX 1: Study Team Members

Table A1 Steering Committee Members

Name Designation
1. Mr. Do Hoang An Vice Chairman, Hanoi People’s Committee (HPC)
Vice Minister, Ministry of Natural Resources and Environment
2. Mr. Dang Hung Vo
(MONRE)
3. Mr. Nguyen Cong Nghiep Vice Minister, Ministry of Finance (MOF)
4. Mr. Pham The Minh Vice Minister, Ministry of Transport (MOT)
5. Mr. Tran Ngoc Chinh Vice Minister, Ministry of Construction (MOC)
Deputy Director, Regional Local Economy Dept., Ministry of
6. Mr. Pham Thanh Tam
Planning and Investment (MPI)
7. Mr. Trieu Dinh Phuc Director, Hanoi Authority for Planning and Investment (HAPI)
Director, Hanoi Authority for Urban Planning and Architecture (HAUPA)
8. Mr. Dao Ngoc Nghiem
(up to 2005)
Director, Hanoi Authority for Urban Planning and Architecture (HAUPA)
9. Mr. To Anh Tuan
(2005 to date)

TableA2 Working Group Members

Name Designation
Urban Development Working Group
1. Mr. Dao Ngoc Nghiem (Head) Director, HAUPA (up to 2005)
2. Mr. To Anh Tuan (Head) Director, HAUPA (2005 to date)
3. Mr. Do Viet Chien Deputy Director, Construction Planning Institute, HAUPA
4. Mr Nguyen Tuan Khai Deputy Director, HAUPA
5. Mr. Le Manh Cuong Chief, Architecture Planning Study Division, HAUPA
6. Mr. Trieu Dinh Phuc Deputy Director, HAPI
7. Mr. Tran Minh Quang Manager, Project Management Unit (PMU), HAPI
8. Mr. Nguyen Huy Anh Chief, Urban Planning Division, HAPI
9. Mr. Le Ngoc Minh Chief, Appraisal Division, HAPI
10. Mrs. Nguyen Minh Ha Expert, PMU, HAPI
11. Mr. Do Xuan Anh Director, Hanoi Construction Dept. (DOC)
12. Mr. Nguyen The Hung Deputy Director, DOC
13. Mr. Ha Duc Trung Deputy Director, Hanoi Agriculture and Rural Development Dept.
(DARD)
14. Mr. Nguyen Bich Ngoc Expert, Construction Group, HPC
15. Mr. Nguyen Phu Duc Expert, Construction Group, HPC
16. Mr. Luu Trong Bat Expert, Regional Local Economy Dept., MPI
17. Ms. Pham Thu Nga Expert, Architecture Planning Dept., MOC
18. Mr. Do Duc Doi Deputy Director, Land Registration & Statistic Dept., MONRE
19. Mr. Nguyen Van Thuy Deputy Chief, Investment Dept, MOF
20. Mr. Vu Manh Dung Expert, Investment Dept., MOF
21. Mrs. Pham Thi Tuoc Deputy Director, Planning Dept., Min. of Agriculture & Rural Devt.
(MARD)
22. Mr Dao Quoc Luan Expert, Planning Dept., Min. of Agriculture & Rural Devt. (MARD)
Urban Transportation Working Group
1. Mr. Tran Danh Loi (Head) Deputy Director, Dept. of Transport Urban Public Works (TUPWS)
2. Mr. Pham Hoang Tuan Deputy Chief, Planning Investment Division, TUPWS
3. Mr. Van Tan Ho Director, Construction Planning Institute, HAUPA
4. Mr. Hoàng Anh Tuan Deputy Chief, Architecture Planning Division 2, HAUPA
5. Mr. Tran Xuan Bach Deputy Director, PMU, HAPI
6. Mr. Tran The Phuong Deputy Chief, Urban Planning Division, HAPI

A-1
 Name Designation
7. Mr. Le Vu Dung Expert, Appraisal Division, HAPI
8. Mr. Thieu Quang Hai Expert, General Affairs and Planning Division, HAPI
9. Mr. Nguyen Chi Manh Expert, PMU, HAPI
10. Mr. Nguyen Sy Luu Chief, Planning Division DARD
11. Mr. Vu Dang Hung Expert, Architecture Planning Dept., MOC
12. Mr. Nguyen Ngoc Dong Deputy Director, Planning Investment Dept., MOT
Urban Water and Sanitation Working Group
1. Mr. Tran Duc Vu Vice Director, HAPI
2. Mr. Nguyen Minh Thuan Manager, Dept. for International Loan and Assistance, HAPI
3. Mr. Luong Hoai Nam Deputy Chief, Appraisal Division, HAPI
4. Mr. Tran Thi Kim Dung Expert, Urban Planning Division, HAPI
5. Mr. Vu Thanh Cong Expert, PMU, HAPI
6. Mr. Nguyen Truong Quyen Expert, PMU, HAPI
7. Mr. Dang Duong Binh Chief, Environmental Management Division, DONRE
8. Mr. Le Vinh Deputy Director, Construction Planning Institute, HAUPA
9. Mr. Nguyen Van Ha Deputy Chief, Architecture Planning Division 1, HAUPA
10. Mr. Le Huy Hoang Chief, Planning Investment Division, TUPWS
11. Mr. Le Hong Quan Expert, Planning Investment Division, TUPWS
12. Mr. Nguyen Hong Tien Deputy Director, Urban Infrastructure Dept., MOC
13. Mr. Hoang Ngoc Phuong Expert, Land Registration & Statistics Dept., MONRE
Living Conditions Working Group
1. Mr. Trinh Kien Dinh (Head) Deputy Director, DONRE
2. Mr. Nguyen Trong Dong Deputy Chief, General Affair and Planning Division, DONRE
3. Mr. Hoang Dinh Tuan Chief, Architecture Planning Division 2, HAUPA
4. Mr. Bui Manh Tien Deputy Chief, General Affair and Planning Division, HAUPA
5. Mr. Tran Khanh Hung, Expert, Urban Planning Dept., HAPI
6. Mr. Nguyen Bac Quan Expert, Appraisal Division, HAPI
7. Mr. Le Sinh Tien Expert, International Loan and Assistance Division, HAPI
8. Mr. Ta Ngoc Khue Expert, PMU, HAPI
9. Mr. Le Van Phuc Deputy Chief, General Affair and Planning Division, DOC
10. Mr. Nguyen Dinh Giang Expert, General Affair and Planning Division, DOC
11. Mr. Nguyen Quang Thanh Deputy Director, Hanoi Financial Dept.
12. Mr. Bui Xuan Dam Deputy Director, Hanoi Financial Dept.
13. Mr. Nguyen Duy Phong Chief, Urban Transport Division, Hanoi Financial Dept.
14. Ms. Vu Thi Bich Ha Deputy Chief, Urban Transport Division, Hanoi Financial Dept.

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 Table A3 JICA and Study Team Members
Name Designation
JICA and JICA Advisory Committee
Professor, University of Tokyo
1. Mr. ONISHI Takashi (Dr. Engr.) JICA, Advisory Committee for Urban and Regional
Development Sector
Group Leader, Group II (Urban and Regional Development
2. Mr. NAKAMURA Akira
/Reconstruction) Soc. Devt. Dept., JICA
Urban and Regional Development /Reconstruction Team I,
3. Mr. SANJO Akihito
Group II, Soc. Devt. Dept., JICA (up to 2006)
4. Mr. KIKUCHI Fumio Residential Representative, JICA Vietnam (up to 2006)
5. Mr. NAKAGAWA Hiroaki Residential Representative, JICA Vietnam (2006 to date)
6. Mr. IZAKI Hiroshi Deputy Residential Representative, JICA Vietnam
7. Mr. TOJO Yasuhiro Deputy Residential Representative, JICA Vietnam
Deputy Resident Representative (2003-2006), JICA Vietnam
8. Mr. KOMORI Katsutoshi Urban and Regional Development /Reconstruction Team I,
Group II, Soc. Devt. Dept., JICA (2006 to date)
9. Mr. KOBAYASHI Kenichi Deputy Resident Representative (2006 to date), JICA VIetnam
10. Mr. Phan Le Binh Program Officer, JICA Vietnam office
JICA Study Team
1. Mr. IWATA Shizuo (Dr. Engr.) Program Manager /Comprehensive Urban Development
2. Mr. SEKI Yosui Project Coordinator
3. Ms. IDEI Rika Project Coordinator (2) / Water Supply Operation (2)
4. Mr. KOKUFU Yutaka Geographic Information Development
5. Mr. HOSOMI Akira (Dr. Engr.) Transport Survey
6. Mr. ARAKAWA Koichi Transport Survey (2)
7. Mr. IIO Akitoshi Natural Environmental Survey
8. Ms. KANEKO Motoko Urban/Social Survey and Analysis/ Project Coordinator (3)
9. Mr. OKAMURA Naoshi Data Processing / Demand Analysis
10. Mr. Mazhar IQBAL Data Processing / Demand Analysis (2)
11. Mr. WAKUI Tetsuo Economic / Financial Analysis
12. Mr. AOKI Tomoo Environmental and Social Consideration
13. Ms. Beulah PALLANA Resettlement
14. Mr. Dang Nguyen Anh Resettlement 2
15. Mr. Hoang Huu Phe (Dr. Engr,) Urbanized Area Preservation
16. Mr. Mai Trong Nhuan (Dr. Engr.) Land-related Problem/Urban Disaster /Flood Control
17. Ms. ABE Tomoko Pilot Project
18. Mr. IWASAKI Masayoshi Project Implementation Models
19. Mr. HAYASHI Kiyotaka Subprogram Manager (Urban Development)
20. Mr. Philipose PHILIPS Urban Planning / Institutions / Land Management
21. Mr. TANAKA Kenji Land Use Planning
22. Mr. Joel CRUZ Land Use Planning (2)
23. Ms. Anna M.S. TERNELL Socio-economy / Financing
24. Mr. TOKURA Masaru Infrastructure Development Planning
25. Mr. NAGAI Yasutaka Regional Planning
26. Mr. KUSANO Makine District Planning / Detail Land Use Planning
27. Mr. KOJIMA Masaaki Land Readjustment
28. Mr. UESUGI Hidetaka Architecture Planning
29. Mr. AOKI Seiichi Industrial Development Planning
30. Mr. SHOYAMA Takashi Subprogram Manager (Urban Transport)
31. Mr. Hans ORN Transport Planning
32. Mr. Alistair W. KNOX Public Transport Planning
33. Mr. TAKAGI Michimasa Road Planning / Traffic Safety
34. Mr. NAGAI Takayasu Transport Facility Planning
35. Mr. MATSUOKA Seiya Traffic Management Planning

A-3
 Name Designation
36. Mr. IZAWA Hiroshi Traffic System Planning / Design
37. Mr. HONMA Kazufumi Cost Estimate / Construction Plan
38. Mr. MISHIMA Teruki Basic Design (Railway 1)
39. Mr. TAKAYAMA Tsuyoshi Basic Design (Railway 2)
40. Mr. NISHIKATSU Yoshiaki Basic Design (Road)
41. Mr. Alan CLOVER Operation Planning
42. Mr. SUZUKI Tadao Electricity/ Signal/ Communication Planning
43. Mr. Alan MORRIS Station Facility Planning
44. Mr. John R. GRETTON Rolling Stocks Planning
45. Mr. MATSUMURA Shigehisa Subprogram Manager (Living Conditions) / Housing Planning
46. Mr. ASAKURA Isamu Living Environment Planning
47. Mr. NOGUCHI Tetsuo Living Environment Planning (2)
48. Mr. KODAMA Ken Building-Code Management
49. Mr. NISHIMURA Yoichi Greenery Planning
50. Mr. AIZAWA Masayuki (Dr. Engr.) Landscape Planning
51. Mr. SHIMIZU Fumio Landscape Planning (2) / Urban Design
52. Mr. HASHIMOTO Kazuharu Subprogram Manager (Water Environment) / Water Supply
Planning
53. Mr. TSUBOI Yukimasa Water Supply Facility Planning
54. Mr. OGINO Masayuki Water Resource Development/Assessment
55. Mr. DOYA Mitsuhiro Water Supply Operation
56. Mr. FUJII Masayuki Sewerage and Drainage Planning
57. Mr. MIYAKE Akihiro Sewerage and Drainage Facility Planning
58. Mr. TSUTA Hideo Lake Management

Table A4 National Consultants

Name Designation
1. Mr. Nguyen Toai Transport Planner
2. Mr. Nguyen Dinh Nghien Road Expert
3. Mr. Nguyen Van Du Senior Advisor
4. Dr. Nguyen To Lang Architect- Urban Planner
5. Mr. Tran Dinh Tuan Institutional Expert
6. Ms. Tran Thi Thanh Tam Economist
7. Dr. Pham Thuy Loan Urban Planner
8. Ms. Dao Thi Minh Ngoc Architect
9. Dr. Pham Hung Viet Expert on Environmental Chemistry & Environmental Monitoring
10. Dr. Vu Quyet Thang Expert on Environmental Impact Assessment
11. Mr. Trinh Duy Luan Sociologist
12. Mr. Nguyen Xuan Mai Sociologist
12. Dr. Pham Khanh Toan Architect- Urban Design Expert
13. Dr. Do Minh Duc Expert on Geoenvironment
14. Dr. Nguyen Minh Son Architect
15. Ms. Tran Thi Thu Thuy Sociologist

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