Large scale housing in Hanoi after Doi Moi
Due to boom of housing after Doi Moi, it is estimated that 60-70% of housing in Hanoi are built with private funds and more than 80% are built without permits now. The government is keen for private sector investment to help Vietnam towards accelerated economic growth. In order to further boost housing development, the government introduced a series of directives to encourage large-scale housing investment by major developers, such as exemption of land premium and tax breaks. This resulted in the construction of large-scale highrise housing areas in the late 1990s and especially since the turn of the century. Between 1998 and 2005, more than 4 million m2 of housing was constructed in Hanoi of which 60% was built by private companies.
As mentioned in the post ‘Brief Background of Hanoi Urbanization’, new housing were spread at the countryside of the city. Meanwhile, many of new housing developments are built as clusters of residential building , they do not actually have most of the things that people want and need in their daily lives. There are few employment, educational, shopping, and entertainment opportunities in the outskirts of the city, which means that most of the residents have to commute to the center of Hanoi every day anyway. So while this model may move housing out of the center, it does absolutely nothing to relieve the suffocating traffic in mid town. In fact, the mode of transportation has significantly shifted from mostly walking and cycling to motorbikes. This is due in large part to the fact that many people must now commute to where they work, whereas in the past, most people worked and lived in the same place.
Showed above is a typical new massive housing project in Hanoi initiated in 1990s, Ciputra Hanoi International City. The site is mainly occupied with luxurious housing.