A thesis submitted in partial fulfillment of the requirement for award of the degree of Master of Science

Thesis (M.Sc.) - Asian Institute of Technology, 1994

Vietnam has been facing a widespread problem of housing shortage, employment and income generation. The transformation from a centrally planned economy to a free market has brought opportunities for development of the private sector on one hand but carried away the subsidies for State employees on the other despite they are the majority of the labor force in Hanoi. Factory workers are the poorest group and thus are the first ones effected by inflation and the uncertain market economy. Housing for workers in Hanoi is an urgent issue and provides lessons in affordable housing provision to the other market-disadvantaged groups. The purpose of this study is to review the existing living condition of workers in a case study area in Hanoi in terms of income, expenditure and existing housing conditions. The previous housing systems built a specific type of house and offered it to people without consideration of profit for suppliers or affordability of buyers. This study introduces an alternative. Based on a profile of workers, their housing preferences and opinions of other involved actors a new viable housing scheme for workers will be made in terms of suitable housing types, reasonable cost, rational contribution of workers and efficient developers. The result of this study shows that attempts of workers are not enough to get equitable housing in a rapidly urbanizing city. Their very low income and weak and unclear legislation prevent private sector from getting further involved in low-cost housing development. This problem cannot be solved by any monopoly sector but by cooperation. The factory should play the role of organizer who manages contributions of workers; invests, builds, distributes, explores and maintains housing estates. The government should give subsidies in terms of land and infrastructure or basic investment for workers through their organizer. The Municipality controls development of worker housing zones by strict housing standards and strong legislation. The private companies should take part as contractors. If this process is well managed, the housing scheme will become reality.