Vietnam has seen its urban areas developing since 1990, when there were only 500 urban areas with an urbanization rate from 17-18%. The figure jumped to 649 in 2000 and 656 in 2003. Now, the nation has 775 urban areas, including two special areas in Hanoi and HCMC, and 10 first-grade, 12 second-grade, 47 third-grade, 50 fourth-grade and 634 fifth-grade cities. The urbanization rate also increased to around 30.5%, the equivalent to a 3.4% average rise annually.

Urbanization has grown fast within the past decade, especially in large cities like Hanoi, HCMC and Danang, says Phan Thi My Linh, head of urban development at the Ministry of Construction.

A population census showed that Vietnam’s population was nearly 85.8 million by April 2009, of which around 25.4 million people, or 29.6% of the population, lived in urban areas. As of this August, the figure surged to 38 million people, or over 43% of the population.

According to a report of the Ministry of Construction, the nation will reach an urbanization rate of around 38% in 2015 given the national master plan on urban development and there will be 870 urban areas.

As a result, Vietnam will have to face many complicated issues due to the consequences of fast urbanization. For example, urban technical infrastructure will fail to meet the demands of travel and transportation.

Architect Dao Ngoc Nghiem, deputy chairman of the Hanoi Urban Planning and Development Association, says the capital city has set aside only 8% of urban land for new roads, including 5% for the inner city. Therefore, Hanoi is suffering a serious shortage of road systems compared to the standard level of 20-25%.

Unsustainable traffic development is one of the main factors of traffic congestion. So, short-vision and continuously revised urban planning will lead to incomplete traffic planning, Nghiem adds.

Dean Cira, the World Bank’s lead specialist and urban sector coordinator, points out that the land market and urban planning are important supporting factors for effective and fair operation of the urban economy.

However, the land market in Vietnam is entering difficulties due to the wide gap of land prices decided by the Government and the market. The problem causes challenges for people in accessing housing. High land prices also obstruct infrastructure construction in cities.

Big cities have been attracting the migration flow from rural and neighborhood areas, leading to high dangers of population rise, higher poverty rates in the urban areas and a growing gap between the urban rich and poor.

The living environment in several cities has been seriously polluted, while there is rising pressure on employment, accommodation, social security and urban management.

Vietnam has to ensure good connection services to raise the competitiveness of the economy. Therefore, like other countries that transfer from the beginning to intermediate stage of urbanization, the country should focus on taking advantage of opportunities, quality and reliability and basic services, Cira of the World Bank says.

Source: Saigon Times.