Blog: https://hifni1985.wordpress.com/2016/10/27/vietnam-urban-upgrading-project/

1. Vietnam
Group 1:
Ann Jaquilmac
Hipniati
Piyachit Sangkrut
Wei Zhang
2004 – 2012
Extended until 2014
Vietnam
Urban Upgrading Project
Ho Chi Minh City Can Tho Haiphong Nam Dinh

2. Definition of Housing Informality
low quality housing,
high densities,
poorly maintained infrastructure,
health and environmental hazards,health and environmental hazards,
frequent flooding due to poor drainage,
and inadequate social services.

3. Approaches Taken So Far
1998 : Vietnam adopted a master plan. But then the
government decided to revise it.
2000 : Government sought international donor
assistance. The Cities Alliance agreed to fund
detailed research studies.detailed research studies.
2001 to 2003 : World Bank1managed consultants
carried out four in1depth studies.
2004 : the government launched the Vietnam
Urban Upgrading Project

4. Approach Adopted in Case Study & Strategy
Type : Adaptive approach
Focus primarily on upgrading of services and on government capacity
building
Technical assistance to strengthen process of land and housing
managementmanagement
Regularization of informal land and housing markets
Building ownership and land use certificates to all properties
Decentralization of certificate administration to local governments

5. Objectives of the Approach
Alleviate Poverty in Four Urban Areas
Improve the living and environmental conditions of the
urban poor
Use participatory planning methods
Influence the planning processes to become more inclusiveInfluence the planning processes to become more inclusive
and pro1poor
Pave the way for successful planning in the future
Government capacity building
Technical support for land and housing management
Preparation of a National Urban Upgrading Program

6. Components of the Approach
1. Tertiary Infrastructure Upgrading and Service
Improvements
2. Complementary Primary and Secondary
Infrastructure Enhancements
3. Resettlement Housing3. Resettlement Housing
4. Land and Housing Management
5. Housing Improvement Loan Program
6. Capacity Building
7. Development of a National Urban Upgrading
Program

7. Stakeholders Involved
City Authorities
City’s People Committee
Steering Committee
(Utility Companies, Relevant Departments)
Ministry of Construction
Project Management Unit
Develop the National Urban Program
Project Management Units
Management and Implementation
of Most Components
Overall Guidance
Ensuring Consistency

8. Financial Arrangement
Ministry of Finance
Total financing: USD $417.49 Million
Government of Vietnam: $148.53 million
World Bank IDA $222.47 Million
Japan PHRD Grant $4.84 Million
Local Communities $4.15 Million
Ho Chi Minh City Can Tho Haiphong Nam Dinh
Donor Credit
as grant
60%
grant 40%
advance
Cities finance 10% of civil works cost
Communities finance 3% of upgrading cost (10% in Ho Chi Minh City)

9. Results of Phase 1 (2004 – 2008)
Over 200,000 low1income people benefited directly from
improved infrastructure.
Over 400,000 additional people benefited by major drainage
and wastewater works.
Over 36,000 housing improvement loans have been made to
low1income households in targeted communities with 95low1income households in targeted communities with 95
percent repayment rates.
Households with valid land1use certificates have increased
from about 50 percent before the project to over 80 percent in
targeted communities.
Property values in upgraded low1income communities have
increased 2 to 4 times.
Participatory planning and community supervision of works
has been introduced in all targeted cities.

10. Expected Impact until the end of the Project
865,000 residents: direct beneficiaries
1,070,000 receive indirect benefits from extended
infrastructure networks and environmental
improvements.
Significant institutional capacity improvements
Scaling up to National Level

11. SWOT Analysis
Helpful
For achieving the objectives
Harmful
For achieving the objectives
Internalorigin
Attributesofthe
project
• Participation
• Identification of low1income area
• Support & sufficient funds from
donors
• Short payback for loan scheme
• Sluggish side clearance
• People’s aspiration change &
complexity can take months
Internalorigin
Attributesof
project
donors
• Microfinance (loan scheme) for
low1income households
complexity can take months
• Difficulty to balance each
participant interest
• High social & financial cost of
resettlement
Externalorigin
Attributesofthe
environment
• Prime minister approval
• Government gain experience for
the next project
• Increase property value for the
surrounding neighborhood after the
upgrading
• Urbanization might increase
seeing the benefit of the project
• Donor might withdraw the
financial support
• Gentrification