The metropolitan region of Ho Chi Minh City has been the greatest beneficiary of the
ongoing transitional process in Vietnam, but this has been accompanied by a sharp
rise of social polarization and spatial fragmentation. This paper analyzes the housing
sector as an example of the complex dynamics of the transitional urban development.
One of the highest income-housing price ratios in the world excludes large
parts of the population, especially rural-urban migrants, from access to formal housing
and has aggravated housing inequalities in general. New ideas on the provision
of housing for low-income people are presented. Hereby, the concept 'Low Rise –
High Density' for adequate urban typologies and spatial strategies is promoted. This
comprehensive approach, based on proven strategies for sustainable urban development,
is adapted to local culture, minimizes financial expenditure, considers socioeconomic
needs and provides environmental feasibility. A strategy towards re-integration,
also requires the participation of all relevant stakeholders and the stronger
incorporation of bottom-up initiatives and of residents' real-life expertise into public
planning. Spatial strategies should be specifically developed concerning the redevelopment
of residential areas in the inner city and housing in the areas of urban expansion
as well as in the surrounding provinces.