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56 open house international Vol 35, No.3, September 2010 Sustainable Low-Income Urban Housing in Vietnam... INTRODUCTION Housing for the poor in developing countries has been a focus of international development for at least half a century, while the more recent concern for sustainability has brought a new set of issues into consideration. Sustainable housing must simul- taneously ensure a reasonable quality of life (heath, comfort and climatic adaptation) and minimise energy and water use, and waste (Tuohy 2004). Thus it must take into account environmental, cul- tural, technological and socio-economic factors, a concept broadly diffused through the literature and at international conferences such as HABITAT II (Ebsen and Rambol 2000). Sustainability for low- income groups in particular must aim directly at the economic dimension (Karuppannan and Siva 2009), though truly 'green' affordable housing should integrate all the components of sustainabil- ity (Landman 2007). This challenge has become complex due to trends over the past decades toward privatised urban development (Graham and Marvin 2001) and rapid slum development (Davis 2004). The availability of public resources devoted to securing sustainable low-income hous- ing is a crucial question, which will partially deter- mine whether the poor in Vietnam's major cities would be assimilated into economic mobility or locked into marginality. As several sources suggest, social equity should be based on economic and environmental sustainability (Cook 2007; Kennedy 2004; Kendall and Teicher 2000; Sassi 2006; Williamson 2003). These authors all point to the interconnected and interdependent nature of sustainability compo- nents, revealing the multidimensional nature of the challenge. There are linkages across scales as well - sustainable housing is an essential component of sustainable urban, regional, and national develop- ment (Huong 2003). Therefore a holistic and inter- disciplinary approach must be taken in the planning for sustainable low-income housing - a change from former practices in which one-dimensional economic analyses dominated, in many cases a practice of false economy. Balancing the trade-offs between sustainability and affordability should help reveal and mitigate hidden social and environmen- tal costs in substandard low-income housing (Nguyen 2009). ECONOMIC REFORM AND LOW - INCOME HOUSING IN VIETNAM Since introduction in 1986 of the market liberalisa- tion and economic reform policy, "Doi Moi", in line with neoliberal dictum, social transformation has led to the state's retreat from its former controlling functions in the field of urban development. In mov- ing from a centrally planned subsidy economy to decentralisation and a market economy, Vietnam has experienced rapid urbanisation due to eco- nomic growth and structural change, especially in Hanoi and Ho Chi Minh City (HCMC). While some Iftekhar Ahmed, Jalel Sager & Le Vu Cuong Abstract This paper presents concepts important for understanding the potential of sustainable low-income housing in Vietnam, with a focus on key environmental, socio-economic, and cultural dimensions that bear on its housing sector. It exam- ines challenges for sustainable urban development in Hanoi and HCMC, Vietnam's two main cities. Recognising the current challenges in balancing affordability and sustainability, the study explores Vietnam's lack of adequate and affordable housing and the problem of its urban slums. Synergistic strategies suitable for the Vietnamese context are then suggested for sustainable low-income housing in these two cities. Keywords: Vietnam; Low-Income Housing; Sustainability; Neoliberal Urbanism. SUSTAINABLE LOW-INCOME URBAN HOUSING IN VIETNAM: Context and Strategies

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IINNTTRROODDUUCCTTIIOONN

Housing for the poor in developing countries hasbeen a focus of international development for atleast half a century, while the more recent concernfor sustainability has brought a new set of issuesinto consideration. Sustainable housing must simul-taneously ensure a reasonable quality of life (heath,comfort and climatic adaptation) and minimiseenergy and water use, and waste (Tuohy 2004).Thus it must take into account environmental, cul-tural, technological and socio-economic factors, aconcept broadly diffused through the literature andat international conferences such as HABITAT II(Ebsen and Rambol 2000). Sustainability for low-income groups in particular must aim directly at theeconomic dimension (Karuppannan and Siva2009), though truly 'green' affordable housingshould integrate all the components of sustainabil-ity (Landman 2007). This challenge has becomecomplex due to trends over the past decadestoward privatised urban development (Grahamand Marvin 2001) and rapid slum development(Davis 2004). The availability of public resourcesdevoted to securing sustainable low-income hous-ing is a crucial question, which will partially deter-mine whether the poor in Vietnam's major citieswould be assimilated into economic mobility orlocked into marginality.

As several sources suggest, social equityshould be based on economic and environmentalsustainability (Cook 2007; Kennedy 2004; Kendall

and Teicher 2000; Sassi 2006; Williamson 2003).These authors all point to the interconnected andinterdependent nature of sustainability compo-nents, revealing the multidimensional nature of thechallenge. There are linkages across scales as well- sustainable housing is an essential component ofsustainable urban, regional, and national develop-ment (Huong 2003). Therefore a holistic and inter-disciplinary approach must be taken in the planningfor sustainable low-income housing - a changefrom former practices in which one-dimensionaleconomic analyses dominated, in many cases apractice of false economy. Balancing the trade-offsbetween sustainability and affordability should helpreveal and mitigate hidden social and environmen-tal costs in substandard low-income housing(Nguyen 2009).

EECCOONNOOMMIICC RREEFFOORRMM AANNDD LLOOWW-IINNCCOOMMEE HHOOUUSSIINNGG IINN VVIIEETTNNAAMM

Since introduction in 1986 of the market liberalisa-tion and economic reform policy, "Doi Moi", in linewith neoliberal dictum, social transformation hasled to the state's retreat from its former controllingfunctions in the field of urban development. In mov-ing from a centrally planned subsidy economy todecentralisation and a market economy, Vietnamhas experienced rapid urbanisation due to eco-nomic growth and structural change, especially inHanoi and Ho Chi Minh City (HCMC). While some

Iftekhar Ahmed, Jalel Sager & Le Vu Cuong

AAbss t rac tThis paper presents concepts important for understanding the potential of sustainable low-income housing in Vietnam,with a focus on key environmental, socio-economic, and cultural dimensions that bear on its housing sector. It exam-ines challenges for sustainable urban development in Hanoi and HCMC, Vietnam's two main cities. Recognising thecurrent challenges in balancing affordability and sustainability, the study explores Vietnam's lack of adequate andaffordable housing and the problem of its urban slums. Synergistic strategies suitable for the Vietnamese context arethen suggested for sustainable low-income housing in these two cities.

Keywordss : Vietnam; Low-Income Housing; Sustainability; Neoliberal Urbanism.

SUSTAINABLE LLOW-IINCOME UURBAN HHOUSING IINVIETNAM: CContext aand SStrategies

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sectors of society have reaped benefits, the livingconditions of millions of low-income public sectoremployees have declined because of economicrestructuring, cuts in social services, and the privati-sation of public enterprises (Lachance 1997).Urbanisation has occurred too quickly to control -cities became overloaded, presenting their poorwith housing, environmental and livelihood difficul-ties as well as limited access to social services.While post-Doi Moi poverty reduction policies wereoften designed to target rural areas that supposed-ly held more than 90% of the low-income popula-tion, urban poverty remained a largely unad-dressed issue (Hanoi UAC 2004). The proportionof the urban poor1 nonetheless reduced significant-ly after economic liberalisation due to concentra-tion of wealth in cities; this group can be differenti-ated from the 'low-income' group - defined here asthose who can meet their basic minimum needs,but are unable to afford housing in the formal sec-tor. In this study 'low-income housing' is consideredin the context of both groups.

Housing demand is very high in major cities,but the majority of people do not have enoughincome for it, as the cost of land is very high in rela-tion to average income - such development corre-sponds with the theory of neoliberal urbanism putforth by Neil Smith (2002) and others, an expand-ing global paradigm and a gentrifying logic thatpropels the poor to the margins of urban existenceworldwide, reproducing widening economic dis-parities in spatial distribution. A large number oflow- and medium-income individuals have noaccess to the formal real estate market and mustseek informal affordable housing solutions, howev-

er inadequate. Thus the increasing rich-poor gap isreflected in the housing market (Vietnam News2007a) and the quality of housing.

From mid-1970s to mid-1980s, urbanmass-housing was subsidised by the governmentdespite this being an era of economic difficulty(Evertsz 2000; Geertman 2007). Doi Moi was atransition from market-oriented socialism to a mar-ket-oriented economy that brought participation ofprivate enterprises in most economic sectors andsharp reduction of state housing budget. The levelof state support plummeted, ranging about 4-10%during 1995-1998 (Hanoi Statistical Office 1998),leading to rapid growth of private housing con-struction. Tables 1 and 2 show the main housingproviders and actors at the end of the previousdecade, indicating the significant role of self-helpconstruction that characterises the sector. HCMCbeing an economic hub has experienced moreinvestment by private sector developers than Hanoi,but clearly, the shrunken state role and expansion ofthe private sector is indicated with 60-70% self-builthousing in Hanoi and HCMC (JBIC 1999).Infrastructure and public housing have not keptpace with the rapid urbanisation process. Mostpublic housing is in bad condition and needs reno-vation, and rural-urban migrants living in slumareas and informal housing "woven" into the decay-ing urban fabric pose large challenges for upgrad-ing (Gattoni 2003; Geertman 2007; Ha 2002).Low-income groups are scattered throughout thecities. In Hanoi, although there are large concen-trations of the urban poor in central areas, morepoor people now live in suburban areas than theinner city, a result of relocation and gentrification

1 Vietnam's cut-off income level for poverty is VND 6 million (about $315) per year (Hanoi UAC 2004), which cannot supportbasic needs adequately.

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Table 1. Housing development in Hanoi (adapted from JBIC 1999)

Table 2. Housing development in HCMC (adapted from JBIC 1999)

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(Hanoi UAC 2004). HCMC's older areas also con-tain many slums and areas of unplanned construc-tion (Ha 2002), though informal housing is not pic-tured on maps and thus difficult to locate precisely.

Housing can be divided into two main cate-gories - formal and informal. Formal housing islegal, produced through the interaction of severalparties: the state, state-supported companies, busi-ness companies and communities. Informal hous-ing is more complex and has different forms - ille-gal, squatter, irregular or slums. This categoryemerged in the midst of rapid urbanisation andconsequent growth of the informal sector. Informalhousing settlements, particularly squatters, are tran-sitional areas, though the houses built may be sub-stantial. They are often located on the fringe ofcities, riversides, waste dumps or under bridges -with little or no infrastructure. In terms of construc-tion, housing can be categorised as permanent,semi-permanent, temporary or simple (IPUMS2000). Formal housing is permanent, while infor-mal housing can belong to any of the categories -a surprising amount of informal housing in Vietnamis 'permanent'.

Urban planning for main cities is conductedthrough a top-down centralised process at threelevels: a regional zoning plan, an urban develop-ment zoning plan, and a detailed area plan, withhousing managed under the last (Geertman 2007).The national government manages the first two lev-els and has assigned the third to local authorities(Vietnam News 2007a), yet lack of capacity andcorruption are endemic at the local level, explain-ing many difficulties in housing management andflourishing of illegal construction. In recent yearsperhaps 80% of housing in Hanoi and 40% inHCMC have been constructed without legal per-mits (Ahmed 2009). The government's master plansfor urban development are not sufficiently detailedand informal housing areas are not recognised(Geertman 2007; JBIC 1999). Lacking informa-tion, the government finds it hard to manage indi-vidual houses and areas, while the planning andgrowth of illegal housing proceeds apace.

Meanwhile rapidly increasing urban housingdemand leads to high density, overloading infra-structure and service systems. City administrationshave not been able to maintain the basic infra-structure (Gattoni 2003; Jemal et al 2006; Phan2008) and most public services, such as schoolsand hospitals, and electricity, water supply and

drainage infrastructure have become overwhelmed(Jemal et al 2006; Phan 2008), fitting the widerpattern of degraded public spheres and servicestypical of neoliberal urbanism, as observed forexample by Klein (2007). This trend is visible main-ly in three types of urban areas:

Social housing constructed before 1990:Most pre-Doi Moi housing was subsidised bythe government and has degraded seriously.The uncontrolled retrofitting, building exten-sions and poor infrastructure have serious envi-ronmental and social impacts (Vu 2008; RMITand VGBC 2009).

Old city quarters: Extended, multi-genera-tional families increase the infrastructure bur-den in these areas (Phan 2008; RMIT andVGBC 2009). Hanoi has hosted upgradingprojects, but heritage conservation restrictionsadd an additional layer of complexity and oftenhamper these efforts.

Unplanned dwelling areas: In Hanoi andHCMC, both illegal and legal housingencroach on ditches or canals, blockingdrainage (Phan 2008; RMIT and VGBC 2009).A storm in October 2008 inundated large por-tions of Hanoi, with many streets under a metreof water for days.

Figure 1. Old tenement for low-income people inHanoi

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Rural-urban migration has proceeded rapidly sinceDoi Moi (Sang 2008). Migrants generally cannotbuy or rent a house in central areas, but can findemployment in factories and industrial parks locat-ed in peri-urban areas, where most of them settle(Giang 2008; Noltze 2008). Migration patterns inHanoi and HCMC differ: in Hanoi economicmigrants usually do not bring their families, stay intemporary quarters and return frequently to their vil-lages (Boothroyd and Nam 2000). In HCMC immi-grants tend to settle in the city due to its wider rangeof enterprises, industries and opportunities. HCMChas witnessed a remarkable change in its urbanstructure and housing due to migration. Firstly,urban areas have expanded spontaneously throughconstructions by new arrivals (Giang 2008), typi-cally housing with small floor area of 20-30 squaremetres, cheap materials and short life (Giang2008; Noltze 2008). Secondly, a large number ofmigrants cannot afford to build and the only solu-tion is to rent. Rental property for migrants is divid-ed into many small rooms with limited or non-exis-tent services (such as toilets), a situation with nega-tive implications for residents and the wider urbancommunity (Huy 2003).

Compact, high-density, mixed-use develop-ments are often proposed under sustainability prin-ciples (Storch et al 2008; Moghtin and Shirley2005). However in Vietnam, extremely high densi-ties alongside much lower densities often reducesocial sustainability and ushers in inequity.Aforementioned, secondary effects of neoliberalmarket reforms have catapulted land prices, lead-ing to shortage of affordable housing for a largesegment of the urban population (Giang 2008;Hanoi UAC 2004; Ludovic and Laurent 2003;Hoang 2007). As a result, residential areas in inner

districts of both cities are extraordinarily dense.According to Hanoi UAC (2004), 30% of its peoplelive in cramped apartments with an average livingspace of three square metres per person. This fig-ure has shrunk from six and a half square metresper person in 1995 and five in 1998. Hanoi pos-sesses about 7.5 million square meters of housingspace, with a third of it in dire need of renovationor repair. Meanwhile, in HCMC 6% of the popula-tion lives in slums according to official statistics, butthis excludes those living in sub-standard housing inthe inner city - these high-density poor settlementsaccount for another 40-60% of HCMC's people(Ahmed 2009). Uneven densities in the inner citieshave led to sprawling expansion of the cities, adevelopment counter to best-practice principles forsustainability.

The crowded areas of the cities present acomplex problem for local authorities. Most peopleliving in these areas, many of which are slums, arerural-urban migrants with an income far too low forhope of property ownership. This first generation ofurban migrants, unlike for example the more land-ed group observed in the favelas of Brazil byPerlman (2003), generally perform unskilledlabour, surviving on temporary work in the city. Asunregistered migrants, they are considered illegalby the government, which thus provides no infra-structure or services. What the government refers toas "social evils" (HIV epidemics, crime, violence,prostitution, drugs and alcohol abuse) appear insome concentration here (Lachance 1997). HCMChosts an estimated 24,000 slum dwellings along-side canals alone, without taking into account thesubstantial inner city slums (Vietnam News 2007b),which far outnumber those in Hanoi (Coulthart et al2007).

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Figure 2. Slum housing in HCMC (left) and Hanoi (right)

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Clearance and resettlement has not provedeasy. HCMC authorities have implemented slumclearance on the banks of Nhieu Loc-Thi Nghe overthe past years, with five-storey apartment buildingsbuilt for resettlement, and in 2001 riverbank slumresidents in Hanoi began to be resettled in housingprojects (Vietnam News, 2009a). However prob-lems soon emerged as home-based livelihoodswere lost in the relocation process, and further,many slum dwellers were from outside provincesand not legally registered residents and hencecould not benefit from the projects. Many wereunable or unwilling to return to their provincialhomes and formed new slums elsewhere after evic-tion. Any compensation received was far too smallto buy a house. While shelter is an urgent need,public and private housing construction and reset-tlement processes are usually too slow for such dis-placed people.

UURRBBAANN HHOOUUSSIINNGG PPOOLL IICCYY

From 1954 to 1986, a subsidised, strictly controlledhousing policy was followed. This disintegratedafter Doi Moi and housing development becametied to industrial growth. To address the shortcom-ing of market-dominated housing development,new policies were developed for the poor (JBIC1999). Problematic in conception and implementa-tion, these policies have generally failed to managethe complexity of the housing market. Irregular realestate taxation and transaction mechanisms, andmurky land policies have provided benefit to thefew, but also caused artificial land shortages, priceexplosions and the disappearance of low-incomehousing and affordable housing even for the grow-ing middle class (Waibe et al 2007). Examples ofpoor regulation include many cases of private com-panies promising the government to build low-costhousing, but not doing so after being allocatedland for their projects.

New decentralisation policies, purportedlyimplemented to rein in an excessive and inefficientbureaucracy, often serve as entrepreneurial oppor-tunities for local officials, another effect of neoliber-al urbanism. Though no statistics are available onthe impact of these policies, there is obviously littlereduction in bureaucracy or efficiency improve-ments. Companies with good connections to gov-ernment officers are offered land at low prices for

new urban projects, while collusive violation of con-struction law is commonplace - these occur at theexpense of rational, integrated and sustainabledevelopment.

Moreover, even housing policies designed toprotect low-income earners have trouble definingtheir intended beneficiaries. Vietnam News (2009)reports that most low-income projects are for civilservants, soldiers and registered urban citizenspriced out of the newly expensive real-estate mar-ket. Unregistered migrants, and low-income peopleworking for private organisations or in the informalsector, are ignored. Meanwhile, even the first groupof formerly solid middle-class wage earners is notwell-served - the complexity of Vietnam's land lawscauses enormous delays in public housing devel-opment, though private towers with higher rentsseems to sprout up overnight (Vietnam News2009b). The public sector has undertaken negligi-bly few low-income projects in recent years. Centraland local governments often serve as both devel-oper and coordinator - issuing policies and regula-tions while implementing projects. Yet the rules areoften complex and opaque, thus an inadequatesystem for guidance, implementation and manage-ment of housing.

Paradoxically, over-production of housingcontributes to dearth of affordable housing as olderhomes and neighbourhoods are replaced by newones. Often the portion of new housing designatedfor low-income earners does not materialise, astypical income is insufficient even when units are setat the lowest possible market price (Vietnam News2008). Vietnamese people, even those with lowincome, traditionally try to save or borrow moneyfor house purchase, rather than renting (Geertman2007; Ha 2002; JBIC 1999), which compoundsthe problem by making high rents particularlyunpalatable. The government's loose managementof the housing market also contributes to the prob-lem. Despite much housing being produced inVietnam's highly speculative market, little of it hasbeen affordable, leading to supply gluts for higher-end markets.

Nor do financial systems meet the housingneeds of Vietnam's poor. Housing microfinance is apotentially effective tool, but has not been widelyimplemented (Noltze 2008). Formal mortgages forlow-income homebuyers are not common. Around20% of housing capital is supported by banks andserves mainly high-income earners, while an esti-

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mated 65% of housing developments occur outsidethe formal housing finance system (Ahmed 2009).The low-income market is viewed as a repaymentrisk, while low-profit margins and long lead- andcost-recovery times keep investors away - overde-pendence on market mechanisms has producedurban housing crises. At present, even the cheapestformal sector house is out of the reach of low-income earners; providing unsubsidised housingfor the poor remains next to impossible.

SSUUSSTTAAIINNAABBII LL IITTYY AANNDD CCLL IIMMAATTEE CCHHAANNGGEE

According to a survey assessing quality of life usingsustainability criteria developed by the GermanInstitute of Urban Planning, low-income housing inHanoi was found substandard (Nguyen 2009)compared to international and Vietnamese housingstandards. Existing low-cost house designs general-ly fail to meet the needs of a contemporary com-munity in a tropical climate. According to a study bythe authors (RMIT and VGBC 2009), most low-costhomes in Hanoi are badly designed and sited, usepoor materials, and lack natural light, ventilationand thermal comfort, indicating that 'sustainabledevelopment' is far beyond current conditions inboth cities, especially for low-income housing; con-ception of the term 'sustainability' was vagueamong most officials and households interviewed.

The conditions of the housing market cur-rently hamper the development of infrastructure,quality housing and supporting institutions; impactson the urban environment include serious water, airand noise pollution, inadequate sanitation andflooding. Although a "blame the poor" stance char-acteristic of what Roy (2009) and others refer to as"bourgeois environmentalism" is often a tool forland grabs and redevelopment, it must be notedthat unplanned slum housing magnifies theseissues. In many slum areas along the rivers andcanals, solid waste and effluents are dischargeddirectly into the water system, causing serious pol-lution (Ahmed 2009; Anh 2007; Girard 1995).However the environmental impacts of Vietnam'suncontrolled urban development are certainly notlimited to poor households.

Meanwhile, Vietnam is expected to beimpacted severely by climate change and alreadyexperiences more intense storms, frequent flooding

and higher temperatures (Dasgupta et al 2007;Brundenburg 2008). Storm surge and tidal flood-ing are of special concern in low-lying HCMC, withsurges along its coastal areas already exceedingone meter, commonly inundating large sections ofthe city. Here the urban poor are on the frontline ofclimate change: 39% of poor households experi-ence direct impacts, with indirect impacts on mostof the remainder (ADB et al 2009). Vietnam'sinability to spatially control its rapid urban develop-ment and provide adaptive infrastructure hasincreased vulnerability to climate change among allsocial groups.

As Hanoi and HCMC revise their urbandevelopment master plans for 2020, they have notignored this danger. While Hanoi has drawn up anoverlay hazard map, it focuses only on floods andco-located socio-economic activities, both basedon current levels. No long-term future plan existsand Hanoi's urban planners devote little attention toclimate change risks and adaptation (Brundenburg2008; Hung 2007; Martin 2008) - especially withregards to poor, informal riverside communities, thegroups affected most and earliest by flooding andstorms. Meanwhile, HCMC has no unified infor-mation centre and poor data collection and stor-age. Access to disaster information is highly restrict-ed; despite public demands for more transparency,there has been little progress. Important informa-tion is only available through informal channels(Tanner and Mitchell 2006).

Technological adaptation strategies underconsideration by government and non-governmen-tal bodies face great obstacles due to their novelty,cost, and disruptiveness (ADB et al 2009). Howevera 'no-regrets' strategy of increasing the physicalresilience of low-income housing, in particularflood- and climate-proofing, should be empha-sised. Making these homes less water and energyintensive, and designing them with passive princi-ples will yield sustainability co-benefits as well.

Sustainable low-income urban housing inVietnam is a highly complex issue; simplistic solu-tions will not achieve success. A holistic, or systems,approach must be taken, one that includes eco-nomic, social, technical and environmental consid-eration. Those strategies that respect the local cul-ture and context, and protect Vietnam's housingmarket from globally enforced structural disparities,will likely prove most effective. Strategies thatacknowledge the complexity of housing problems

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and can contribute to urban sustainable develop-ment in all its dimensions are suggested below.

MMoodduullaarriittyyLow-income housing must meet future as

well as current demands, given a growing popula-tion. Much spontaneous, illegal land-use andbuilding expansion in Vietnam result from the tradi-tional multi-generational household pattern.Research into housing morphologies that enablealterations according to occupants' needs withoutsacrificing quality, safety and sustainability is thuscrucial.

LLooccaattiioonnPlanners should encourage compact, mixed-

use and transit-oriented development that reducestransport energy, emissions and investment whilemaintaining Vietnam's vibrant urban communities.Social sustainability is a key concern of many resi-dents; in-situ upgrading of poor urban areas hasproven far better than relocation.

MMiixxeedd-iinnccoommee ccoommmmuunniittiieessWhile the trend of neoliberal urbanism draws

away from economically mixed communities(Graham and Marvin 2001), they are generallythought to produce healthier cities (Jacobs 1961).In addition to greater local economic interdepen-dence, such mixing presents opportunities for socialcohesion and, for the lower-income groups, mobil-ity. Meanwhile spatial segregation of incomegroups leads to marginalisation and decay oflower-income areas.

IInntteeggrraatteedd ssmmaarrtt ddeessiiggnnIt is possible to design more comfortable and

sustainable housing without significant cost increas-es. Appropriate technology, holistic and integrateddesign approaches should be emphasised. A keyexample would be passive design features that usenatural ventilation and light, thermal mass andgood insulation. Realising cost savings is anotherway to increase the 'green' budget: the normalisedexpense of construction and maintenance is usual-ly 40-50% higher for high-rise buildings (more than10 stories) than for low-rise buildings (Harris andFrank 2004). Prefabrication can reduce construc-tion costs by 20% (Roger 2002), commonly used inpre-Doi Moi subsidised housing in Hanoi, but herelow cost was overshadowed by low quality, unsus-

tainable design and lack of modularity. With thesenegatives addressed, prefab could free up budgetfor higher quality, environmentally friendly materi-als.

TTyyppoollooggyy Schramm (2003) proposed high density low-

rise housing (5-6 stories) as a sustainable typologyfor low-income communities, though the formshould not be seen as an answer in itself, but as onedimension of sustainability. This will likely prove asuitable model for Vietnam (Thiem 2001) due to itsfamiliarity with row and shop houses. Multi-func-tional shop housing is characteristic of those relyingon income from informal activities (Noltze 2008),thus integrated work spaces should be included.Here flexibility is a key issue.

CCOONNCCLLUUSSIIOONN

Three main factors make urban low-income hous-ing an issue of growing concern in Vietnam. One,many people still live in old, dilapidated govern-ment-built housing that has not been maintained.Two, real estate speculation has sent urban landprices rocketing upward; finding adequate housingis a struggle for the urban majority, including themiddle-class. This leads to extensive informalhousing developments, which in turn brings a hostof problems. Three, rural-urban migration is pre-senting serious challenges for sustainable urbandevelopment. In league with the previous factorand loose regulation, this brings an uncontrolledpattern of settlement development with varioussocial and environmental impacts. These factorsmust be considered in a context of inadequate insti-tutional capacity: growing oversupply for somesegments, lack of market research, inadequateconcern for affordable housing development, poorplanning and building management systems, wide-spread environmental pollution and disregard ofclimate change issues.

Local housing authorities must secure com-munity involvement, housing standards, financeand land provision, and infrastructure. Better coor-dination of policy and planning, including regula-tion, should beget more affordable, sustainablehousing construction. Housing must be seen as amultidimensional, multi-stakeholder policy fieldwith interrelated levels of intervention. An integra-tive level of management is necessary where 'silo'

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uongthinking and management is still the norm. Low-

income communities themselves should ideally beinvolved in public planning - while Vietnamese lawprovides mechanisms for this, they are rarelyinvoked (Robert et al 2005; UNDP 2006).

Low-income groups must also not be heldhostage to the interests of investors, as is common-ly the case in neoliberal urbanism. If the govern-ment cannot create policies that produce privateinvestment for low-income housing, it shouldbecome the principal investor. Indeed, governmentfunds, which normally require a lower rate of returnover time than private funds, may require fewertrade-offs between quality/sustainability and cost.Further, as informal housing comprises a largeamount of the urban housing stock, the govern-ment must consider how it might retrofit or redirectself-built housing to meet sustainable urban devel-opment goals, for instance setting criteria forhealth, energy use and climate proofing, and pro-viding financial incentives in return, such as sub-sidised long-term loans.

Existing urban development instruments can-not cope with these issues, perhaps requiring achange of perspective. Housing is not merely asocial-welfare issue, but also a production sectorable to absorb labour, generate jobs and supportsocio-economic development - clever policy couldunleash this potential. Yet too many overlappingagencies jointly manage, partly manage, orattempt to wholly manage the housing sector andits various aspects, including land management,construction, purchase, sale, property transfer,maintenance and taxation. No lead agency pro-vides overall guidance; the result is an ineffectivehousing management system. To address theseproblems, holistic sustainable strategies should beconsidered, following a multi-dimensionalapproach that includes socio-economic, cultural,environmental and political aspects. Urban policiesmust be revised to concentrate on the problems ofthe great mass of low-income urban dwellers, andto limit the worst effects of neoliberal urbanism.

Much remains to be done in the legal andeconomic fields to promote the development ofsustainable, low-income urban housing. The objec-tive of low-income development is not simply toincrease the quantity of housing. It must be an inte-grated approach, in which housing production aidssustainable urban development and enhances thelife and prospects of all city residents.

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Authors’ AAddresses:Iftekhar Ahmed, RMIT University, Melbourne, [email protected]

Jalel Sager, University of California, Berkeley, [email protected]

Le Vu Cuong, Vietnam Green Building Council, Hanoi, [email protected]

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