Transition-Doi Moi Process and Urban Development in Vietnam

Doi moi or transition from a central planning towards a market economy has lasted for about 20 years. Its achievements are outstanding in terms of social-economic development. Galloping inflation of a thousand percent per year was stopped. Instead, the GDP has been growing with rapid rates at an average of about 7% annually. Living standards of the population have been improved dramatically. Population living in rural areas has declined relatively.

The doi moi process has been characterized by economic reforms with widespread introduction of liberal policies. The most important element of the reforms has been the shift of decision making in businesses, – including price setting, – from the government bodies to the firms. On the other hand, it has been the recognition and facilitation of the private sector development, including foreign one.

Under transition urban development has been undertaken in three ways: extension of the existing cities, renovation of their old parts and peri urban development. The main problems encountered in these processes are land clearance in terms of land price determination and job creation for farmers and inhabitants whose land has been taken, poor quality of spatial planning without any long term vision, project financing from various sources of state and private sectors, especially foreign investment and migration, – both seasonal and permanent, – from rural areas to urban regions.