Vietnam

Group 1:Ann JaquilmacHipniatiPiyachit SangkrutWei Zhang

2004 – 2012

Extended until 2014

Vietnam Urban Upgrading Project

Ho Chi Minh City Can Tho Haiphong Nam Dinh

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.

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

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

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 inclusive � Influence 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

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

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 GuidanceEnsuring Consistency

Financial Arrangement

Ministry of Finance

Total financing: USD $417.49 MillionGovernment of Vietnam: $148.53 millionWorld Bank IDA $222.47 MillionJapan PHRD Grant $4.84 MillionLocal Communities $4.15 Million

Ho Chi Minh City Can Tho Haiphong Nam Dinh

Donor Creditas grant

60%grant 40%

advance

Cities finance 10% of civil works cost

Communities finance 3% of upgrading cost (10% in Ho Chi Minh City)

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 95 low1income 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.

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

SWOT Analysis

HelpfulFor achieving the objectives

HarmfulFor achieving the objectives

Inte

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Att

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• 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

Inte

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donors• Microfinance (loan scheme) for low1income households

complexity can take months• Difficulty to balance each participant interest• High social & financial cost of resettlement

Ex

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• 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