1 AIT Asian Institute of Technology

Changes in the political economy of Vietnam and their impacts in the built environment : a study of Hanoi City

AuthorNguyen Quang
Call NumberAIT Diss no.UE-02-02
Subject(s)Environmental economics--Vietnam
Vietnam--Economic conditions

NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy, School of Environment, Resources and Development
PublisherAsian Institute of Technology
Series StatementDissertation; no.UE-02-02
AbstractEconomic reform introduced in Vietnam since 1986 in response to the macroeconomic crisis has produced radical changes in the political economy of the country. The centrally controlled planning model was gradually replaced by the transitional model where the free market has increased its role in resource allocation and at the same time, the command system characterized by the state control of means of production still gives its resistance in the pace of marketization. The economic reform has brought radical changes toward privatization and decentralization. Private development was allowed in the multi-sectoral economy even though this sector still faces many development constraints and limitation. Laws on direct foreign investment were promulgated facilitating increasing share of foreign sector in the total investment. This situation has shifted the investment shucture that previously had been based on the state sources toward the one with major non-state contribution. There are also substantial changes in the land use and housing system. A new legal framework for land has been introduced to enable the land use rights transactions. Housing production becomes diversified with the withdrawal of the state subsidies in housing production. The planning system is undergoing certain changes, in which the plans are now less rigid and take into account the market factors. However, the current planning and management system is still influenced by the legacies of the old command economy. Land allocation, land price and housing production are still interfered by the state discretionary power. The planning system basically follows the same system as before when the state dictated the form and structure of the urban built environment. An appropriate mechanism for development planning and control to facilitate urban development does not exist yet. The changes in the national economic system have been reflected almost immediately in urban development patterns, where the diversification of capital investment (especially the influx of foreign direct investment), the creation of a property market (dealing with land use rights), the commercialization of the housing sector and greater planning flexibility have created significant changes while the legal and institutional system has not been sufficiently adapted to the new reality. This research shows how the changes in the national policy framework have transformed the urban development patterns of Hanoi. Industrial development in the rural fringe areas, the new dynamics of the private housing sector, and the commercial redevelopment of the inner city are described and quantified. While the formerly rigid command-and-control system of urban management has already been simplified to some extent, inappropriate bureaucratic attitudes persist. This has resulted in a lack of authority, communication and competency, while a thriving informal sector of urban development has emerged. In conclusion, there is an urgent need for building new forms of public involvement to ensure social equity goals and to avoid market distortions. The policy reforms at the national level need to be minored by a more capable urban management
Year2002
Corresponding Series Added EntryAsian Institute of Technology. Dissertation; no.UE-02-02
TypeDissertation
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Development and Sustainability (DDS)
Academic Program/FoSUrban Environmental and Management (UE)
Chairperson(s)Zimmermann, Willi;
Examination Committee(s)Kammeier, H. Detlef;Sheng,Yap Kioe;Logan, William S. ;
Scholarship Donor(s)Japanese Government;
DegreeThesis (Ph.D.) - Asian Institute of Technology, 2002


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