This document discusses innovation in social transition in Ho Chi Minh City, Vietnam related to housing for low-income earners and solid waste collection services. It provides an overview of the city and renovation process, then details research findings on two initiatives: (1) Renovation in housing has included mobilizing people's capital, changing apartment designs, developing comprehensive living spaces, and building in favorable locations. (2) Renovation in solid waste collection has involved private collectors working with local authorities and improving institutional arrangements. The research aims to identify innovative factors, interpret the basis for innovations, and propose solutions to support further development.

1. INNOVATION IN SOCIAL TRANSITION STAGE
IN HOUSING FOR THE LOW INCOME EARNERS AND SOLID
WASTE COLLECTION SERVICE IN HOCHIMINH CITY,
VIETNAM
Asian City innovation Systems Initiative (CIS-ASIA)
Nguyen Minh Hoa – Pham Gia Tran
VIETNAM NATIONAL UNIVERSITY
DEPARTMENT OF URBAN STUDIES

2. CONTENTS
PART ONE: INTRODUCTION ABOUT
HOCHIMINH CITY, RENOVATION
PROCESS, CHALLENGES AND
RESEARCH FOCUS
PART TWO: RESEARCH FINDINGS
• Renovation in housing for the low income earners
• Initiatives in solid waste collection service

3. PART ONE:
INTRODUCTION ABOUT HOCHIMINH
CITY, RENOVATION PROCESS,
CHALLENGES AND RESEARCH FOCUS

4. 1. OVERVIEW OF VIETNAMESE URBAN
• Population: 87 millions
• Area: 332.000 km2
• There are 58 provinces
and 743 cities, towns
• 30 % of total national
population are living in
the urban areas
• Two biggest cities: Hanoi
and Hochiminh city

5. Hochiminh Metropolitan

6. 2. OVERVIEW OF HOCHIMINH CITY
HCMC locates in the South
of Vietnam.
HCMC is
- One of the 30 biggest cities
in the world
- One of the 5 biggest cities in
ASEAN (Bangkok, Jakarta,
Metro Manila, and Kuala
Lumpur)

7. 2. OVERVIEW OF HOCHIMINH CITY
• HCMC’s area is 2.100 km2 accounting for 0.6%
of the whole country.
• Its population is the biggest with 8.3 million
people, (accounting for 9.6% of national
population). HCMC has 19 inner districts and 5
sub-urban districts.
• Economic growth rate is 11% in average which is
always the highest rate in VN

8. 2. OVERVIEW OF HOCHIMINH CITY
• Has the highest GDP/person/year in Vietnam
(2.000 USD), other place is 640 USD
• It contribute 37% of National budget each year
• Has the highest FDI in VN (45% of national FDI)
• It is educational, cultural, economic center
• HCMC has 16 industrial zones and 3 software
parks and 2 high-tech zones
• HCMC is the biggest center of light industry,
electronic industry.

9. 3. RENOVATION IN VIETNAM
• It has begun since 1990, after Socialist system was
the collapse; Embargo by UN was lifted, Vietnam
has normalized relationship with USA & other
countries
• Moving from agricultural society to industrial,
commercial and service society
• Transformation from subsidy and centralizing
economy to free economic market
• Moving from a single state-owned economic sector
system to an economy of many different forms of
ownership
• Moving from a closing economy and society to an
open society with economic integration and cultural
exchange

10. 4. RENOVATION IN HO CHI MINH CITY
HCMC is the leading Public administrative reform
center for renovation in
VN Foreign investment policy
Renovation of HCM
city in 6 fields Transport service
After 20 years of Telecom and postal service
renovation, the process
speed is slowing and
Bank and financial service
reform’ result is limited
for some challenges Tourist service

11. 5. SOME MAIN CHALLENGES FOR
RENOVATION
Urban management system is backward in
metropolitan
Highly concentrated management system in the
upper level and lowly decentralized in the
lower level
Technique infrastructure and social service are
poor by lack mobilizing social resource

12. 6. RESEARCH FOCUS
• Research topics of VN group are housing for the
low income and solid waste collection
• It meet one of some most urgent requests from
practice of HCM city is “Privatization of public
services”
• It is accepted by the city government authority,
functional agencies, private enterprises and local
people
• Its research results will received by organizations
and apply them into fact

13. 7. COOPERATION PARTNERS
• Local government :
- Department of Construction of HCM City People's
Committee
- Department of Natural Resources and Environment of
HCM City People's Committee
- Department of urban Planning and Architecture of HCM
City People's Committee
- People Committee of urban districts and wards in HCMC
• Companies:
- Southern Dragon Co., Ltd
- Good Land Real Estate Company
- Public Service Companies of urban districts in HCMC

14. 8. RESEARCH SAMPLE
• About topic on housing:
Investigation on five real estate companies: New
Vision company, Good land company, Southern
Dragon company and Peace company.
Conducted interview by questionnaire with 500
inhabitants to gain their assessments on
innovations.
Having studied 4 apartment buildings applied
successfully those innovations in District 2, 7 and
9.

15. 8. RESEARCH SAMPLE (Cont.)
• About topic on Solid waste collection :
Investigation on some co-operatives of waster
collection
Having Studied some private waste Collectors
Conducted interview by questionnaire with 200
households
Conducted interview with experts and
government authorities

16. PART TWO:
RESEARCH FINDINGS

17. CONCEPTUAL FRAMEWORK
Economic-social context
of HCMC related to the
renovation
“Renovation” theory and
conditions for ensuring
the renovation
Renovation in the housing Renovation in solid waste
for the low income collection service
earners
Fact Renovation Fact Renovation
program program

18. OBJECTIVES
• To formulate the theoretical basic for the innovation in HCMC and in
Vietnam;
• To build up the conceptual framework and research methodology;
• To describe the fact of housing for low income earners and the solid
waste collection in HCMC;
• To identify the innovative factors appearing in such areas as
housing and solid waste collection in HCMC
• To interpret the legal, economic and social grounds for the existence
and development of innovations;
• To propose innovative solutions at the macro level based on the
factual experiences;
• To convince the state functional agencies in accepting and partly
applying the research findings to the reality though operations of
enterprises and related social organizations.

19. UNDERTAKEN TASKS
1. Conducted training courses for members of
working group
2. Discussed with companies and agencies having
successful innovations
3. Conducted survey with inhabitants / beneficiaries to
gain their assessments on those innovations
4. Data processing and interpreting
5. Having worked with the HCMC state functional
agencies

20. I. RENOVATION IN HOUSING FOR THE
LOW INCOME EARNERS

21. 1. CONTEXT
• Income of low income earners: 1.5-2.0 USD /
person/day
• More than 800.000 people having no stable dweller.
• They used to live in rental houses
• Low income earners could not access to housing
• Decisive role of state owned enterprises in housing.
• Private enterprises have brought out good initiatives
of housing

22. 2- RENOVATION IN HOUSING FOR THE LOW
INCOME EARNERS
Mobilization of
capital of people
Development of Changing design of
Low income
comprehensive building’s
Earners
living space apartment
Access housing
Build building at the place
with favorable conditions for
people’s life

23. 2. 1- MOBILIZATION OF CAPITAL OF PEOPLE
Fact:
Both investors and people face constraints of capital
to invest housing
Initiatives:
Customers contribute capital to the investor and they
become the capital generating shareholders

24. 2. 2- CHANGE DESIGN OF BUILDING’S
APARTMENT
Fact:
Many previous efforts of reduction of the cost price of
house still were the temporary solutions
Low income earners have the choice of the apartments
with small area
Initiatives:
1. Apartment area: reduced from 60 m2 to 36 and 32 m2.
2. Height from the floor to ceiling was raised higher to
make a mezzanine
3. Number of stories was raised higher
4. Ground floor of building was used with the function of
business and was sold by the market price

25. EXPECTATION OF APARTMENT AREA BY TYPES OF
OCCUPATION
Area 32 m2 40 m2 50 m2 60 m2 > 80 m2 No participate
the choice
Industrial worker 31% 42% 13% 2% 0% 12%
State authority 29% 42% 21% 5% 3% 0%
officer
Domestic private 11% 23% 37% 22% 7% 0%
company officer
Foreign company 0% 5% 12% 52% 27% 4%
officer
University teacher 8% 33% 35% 15% 9% 0%
Health officer 25 33% 27% 8% 2 5%
Hired worker 42% 31% 5% 0% 0% 22%
Number of opinion 146 209 150 104 48 43
% / 700 20.85 20.85 21.43 14.85 6.86 6.14

26. 2. 3- DEVELOPMENT OF COMPREHENSIVE
LIVING SPACE
Fact:
From 1985 to 1995, buildings for the low income
earners mainly are the cheap and short-term ones –
“Over night place”
Since 2000, customers have changed their choices on
their living place
Initiatives:
Private enterprises have constructed the living
facilities including small park, community house for
common living activities, kindergarten, community
health station, grocery, coffee shop …

27. 2. 4- BUILD BUILDING AT THE PLACE WITH
FAVOURABLE CONDITIONS FOR PEOPLE LIFE
Fact:
Many buildings were located far from the center area,
main road, trade and service center and travel centers
Initiatives:
To have land fund, enterprises access to the poor
residential areas or the slums with the area of several
hectares located in the urban districts

28. CONCLUSION FOR FIRST TOPIC
Initiatives are really quite new in Vietnam
Initiatives that are waiting for the approval of
government
Initiatives stem from the private-owned enterprises
In the process of national renovation in general and
urban renovation in particular, the private sector is
considered one of the most important forces that
should be recognized

29. BUILDING FOR LOW INCOME EARNERS

30. II. INIATIVES IN SOLID WASTE
COLLECTION SERVICE

31. 1. CONTEXT
The generation of solid waste in urban towns
is on the rise.
In HCMC, the amount of solid waste
increased averagely 8%-10% per year.
3500000
STE - TON
3000000
2500000
VO ME O WA
2000000
F
1500000
1000000
LU
500000
0
1997 1998 1999 2000 2010 2015
YEAR
TO L VO ME O WA
TA LU F STE DOMESTIC WASTE DEMOLISHED WASTE

32. 1. CONTEXT
• In urban area, there is often a lack of service coverage
of settlement areas.
• In HCMC, the public waste collection service only
reaches households that are located along main roads.
• 3/4 of total households located in small alleys is
served by the private waste collection service

33. MODEL OF SOLID WASTE COLLECTION AND
TRANSPORTATION
Households, markets
Primary collection Hand carts
Formal and
Meeting points*, depots Informal
Recycling
sectors
Temporary storage Intermediate station
& Secondary collection Close compacting station
Landfills
* Meeting points: These are transfer points that are light, mobile and without
infrastructure. The mobile transfer points are not always hygienic and they are not
permanent either. They function in the evening (from 21:00 to 22:00 p.m.). After
time of 22:00 p.m, they are totally cleaned and the urban space, badly needed for the
traffic all day long is cleared. Currently, there are about 431 meeting points in HCMC

34. INSTITUTIONAL ARRANGEMENT
• Informal private waste collection sector:
It is a self-development organization. Collectors are of
family, team, group. Their activities have been done in
small areas (some neighborhoods).
Fact:
Private waste collectors work independently
Private waste collectors do not sign contract with
households
Local authority can not manage their operation
The institutional arrangement of informal waste collection
sector is in the concern of authority.

35. ACTORS ROLE
Local authority
Administrative
Ward People
Committee Management
State functional
Agency: Professional
Solid Public service company Supervision
waste (PSC)
collection
system
Social organization: Professional
at
Syndicate of private Enabler
community
collectors
level
Private sector:
Service
Individual waste
collectors Provider
Community: Service
Head of cell
User
Households

36. INSTITUTIONAL ARRANGEMENT OF PRIVATE WASTE
COLLECTORS IN DISTRICT BINH THANH - HCMC
Ward PC
10 % fee Management
Syndicate of private Private
waste collectors Collectors
Management Supervision
Fees Service
Head of block, cell
Households Facilitating

37. INSTITUTIONAL ARRANGEMENT OF PRIVATE WASTE
COLLECTORS IN DISTRICT 11 - HCMC
District Labor Union
Employment related
promotional activities
Ward PCs SPWC PSC
Employment related
promotional activities
10% fee
Ward SPWC
Admin. management Professional management
Fees Services
Households

38. INSTITUTIONAL ARRANGEMENT OF PRIVATE WASTE
COLLECTORS IN DISTRICT 3 - HCMC
PSC Wage Ward PCs (With assistance from the
Environment supervisor hired by the PSC)
Task 5% of income 5% of Admin.
Performance income management
(Supervision, (License, agreement)
fine)
Private waste collector
Service Fee
Households

39. INSTITUTIONAL ARRANGEMENT OF PRIVATE WASTE
COLLECTORS IN DISTRICT 6 - HCMC
Ward PCs 5% of income PSC
10% of Administrative Professional
Income management management
Cell leader Private collectors
Fees Services
Wage
Households

40. ASSESSMENT
Advantages
The system proves to be effective in evacuating waste
timely and has been cooperated well to the formal
transportation system
The equipments used appears to be cheap in manufacture
and operation, simple in design and well adapted to the
local characteristics
The business provides employment to the city poor
The door-to-door collection is a most reliable system
Private waste collectors are very dynamic

41. ASSESSMENT
Disadvantages
The improper distribution of collection routes
Improper collection services unable to be enforced
Synchronization between collection and transportation
Pollution potentiality
The dependency nature of households on collectors

42. 5. CONCLUSION FOR SECOND TOPIC
In HCMC, private waste collection service has
proven to be a good initiative.
The city has only engaged in the improvement of
the organizational structure of primary waste
collection very recently.
It is commonly agreed that the private sector is
necessarily legalized in the municipal solid waste
management of city.

43. CONCLUSION
HCMC is in the rapid urbanization and transitional
process from medium to higher level. This process
is complicated, difficulty and for long time, thus it
need creations and renovations for gaining more
achievements and overcoming emerging
challenges.
Our results on renovation in housing and waste
collection have impacted to policy decision
makers, private enterprises, City and local
authorities and State functional agencies

44. Thank you