How Vietnam can end substandard housing and build better futures

How Vietnam can end substandard housing and build better futures

As Vietnam intensifies its efforts to eliminate temporary and dilapidated housing, the campaign is nearing its ambitious goal of completion by 2025. RMIT Economics lecturer Dr Richard Ramsawak highlights the critical factors that can ensure its ultimate success.

In April 2024, Prime Minister Pham Minh Chinh launched a nationwide initiative to eliminate temporary and dilapidated houses by the end of 2025.

Between 2000 and 2023, more than 1.7 million homes were built or repaired for disadvantaged households. However, around 240,000 additional houses need to be completed by the end of this year to meet the intended goal.

Simple houses by a river Hundreds of thousands of households in Vietnam still face housing difficulties. (Photo: Pexels)

This requires integrating lessons from global best practices, focusing on strategic planning, community engagement, and sustainable implementation.

Strategic planning for community development

A shared vision for community development is crucial. Efforts should go beyond housing renewal or relocation to improve the overall quality of life through health, education, and economic empowerment initiatives.

Resettlement in rural and mountainous areas should integrate livelihood enhancement programs, such as vocational training and microfinance, to boost productivity and income. Infrastructure investments in schools, healthcare, and transportation will ensure access to essential services, some of which can be funded through public-private partnerships.

To prioritise locations where replacement homes should be built, a resettlement index can be developed based on factors like vulnerability, housing conditions, and access to infrastructure to identify high-need locations such as flood-prone or socio-economically isolated regions.

For urban areas, Vietnam can draw on Singapore’s public housing model, which exemplifies comprehensive planning that ensures affordability and connectivity, while avoiding socio-economic isolation and environmental degradation. It can also take inspiration from the transformation of slums in Colombia’s second largest city Medellin, which highlights the importance of integrating public spaces, transit systems, and amenities.

Effective communication and stakeholder engagement

Communication and stakeholder engagement are essential for building trust and aligning solutions with community needs. A participatory planning approach, where residents have a say in housing design, relocation options, and amenities, can be beneficial. An example is Thailand’s Baan Mankong Program, where enabling communities to co-design housing solutions has improved satisfaction and sustainability.

Engaging local communities at every stage also ensures culturally appropriate solutions. Tailored housing designs that respect traditional practices and provide access to livelihood opportunities like agriculture or handicrafts can minimise disruptions and foster long-term stability.

 

People building a house in a mountainous area Engaging local communities at every stage – from design to construction – ensures culturally appropriate housing solutions. (Photo: Pexels)

Moreover, transparency and accountability play a pivotal role in sustaining public trust. Transparent land acquisition processes, open contract bidding, and robust monitoring mechanisms like independent audits and public dashboards are critical. South Africa’s Reconstruction and Development Program exemplifies the benefits of transparent procurement in ensuring fair resource distribution.

Ensuring sustainable implementation

Technology plays a key role in the national campaign. Building information modelling (BIM) can streamline design processes to produce disaster-resilient, resource-efficient housing tailored to environmental conditions. Using eco-friendly, locally sourced materials can reduce costs and environmental impacts.

Flexibility and innovation in resource mobilisation are also vital. According to the Ministry of Labour, Invalids and Social Affairs, the total required funding is estimated at over VND6.5 trillion. The government can leverage public funding, public-private partnerships, and hybrid models, such as Indian city Mumbai’s development regulations that incentivise private developers to replace old housing. Tenure flexibility, offering rental and ownership options, ensures affordability for various economic groups.

Speed and scalability are equally important. Streamlining administrative processes is a must, while adopting modular or pre-fabricated housing solutions can accelerate construction timelines without compromising quality. China’s Shantytown Redevelopment Program serves as a model of how rapid construction and flexible financing can deliver large-scale housing solutions efficiently.

Balancing speed, inclusivity, and sustainability will enable Vietnam to achieve its 2025 housing goal. By adopting holistic planning, participatory approaches, innovative financing, and transparency, the campaign can deliver housing solutions that not only replace substandard structures but also enhance the quality of life and foster long-term development.

Story: Dr Richard Ramsawak, Lecturer of Economics, The Business School, RMIT University Vietnam

05 February 2025
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