In HCMC a large scale urban upgrading project has been improving living standards in large areas in the
Western part of the city as part of the Vietnam Urban Upgrading Project with World Bank Financing. The
VIETNAM URBANIZATION REVIEW
Chapter 3: Urban Expansion and Spatial Development in Vietnam’s Cities 125
first phase of the project has already reached 22,800 households. The project has included upgrading of the
trunk infrastructure of the Tan Hoa-Lo Gom basin and has upgraded neighborhood level infrastructure
including storm drainage, water supply, paving and improving of alleys, installation of new fire hydrants, and
providing small housing improvement loans to households, while also assisting in clearing tenure titles.
One of the advantages of the upgrading is that it provides direct benefits to owners of existing houses but
it also stimulates the rental sector, as it appears that many owners in upgraded areas rent floors to tenants.
The danger that in the long run this type of upgrading would lead to gentrification is small; first, because
the program is done on a massive scale, and second because the lack of car access will likely maintain this
otherwise sound part of the housing stock in the lower part of the housing market.
Area being upgraded Area after upgrading