National urban upgrading in Vietnam evolved as a result of economic and political reforms and locally driven experiences. Rapid economic growth following the 1986 Doi Moi reforms was followed by rapid urbanization. In 1990, Vietnam’s urban population was 20.3% of the total population, by 2009 it was about 29.6%, and in 2011 it was 30% with a growth rate of 3.4%. Local projects, like the Hoa-Lo Gom Sanitation and Urban Upgrading Program in Ho Chi Minh City and the Nam Dinh Urban Development Project in Nam Dinh, experimented with upgrading as an alternative to the removal and compensation model of low-income urban areas. While these projects aimed to target immediate concerns through upgrading, challenges remain to offer affordable housing to lower-income households and access to long-term financial assistance.

In 2004, the Vietnam Urban Upgrading Project (VUUP) was launched by the government marking a shift in national policy towards comprehensive upgrading of low-income areas. As a large-scale multi-city and multi-year project, the VUUP aimed to alleviate urban poverty by improving living conditions through in-situ upgrading and improving the environment through a pro-poor and participatory approach, including providing affordable housing and finance alternatives. The VUUP paved the way for the launch of the National Urban Upgrading Program in 2009 as the first national strategy that institutionalizes upgrading as an approach for reducing urban poverty. Much effort is still needed for the formal housing sector to provide affordable housing at all income levels. In the meantime, the scaling up of low-income area upgrading activities such as the VUUP offers an opportunity to improve the living conditions of the population of Vietnamese cities.

Mr. Duong Quoc Nghi will discuss the strengths and weaknesses of the VUUP and the complexities in designing and implementing national programs in Vietnam. Mr. Nghi is the director of the Management of Urban Development Projects and the Urban Development Agency in the Ministry of Construction. He leads the formulation and execution of projects in urban planning, environmental improvement and upgrading nation-wide. Ms. Hoa Thi Hoang is a Senior Urban Specialist at the World Bank in Hanoi, Vietnam, and is leading the Bank’s efforts on upgrading programs. She will complement the discussion with sharing on-going developments and impacts of the national programs in Vietnam.