Since 1986, Vietnam has been embarked upon a series of measures designed to accelerate the growth of the market economy by allowing private enterprise and liberalising foreign investment. While there are several scenarios envisaging the impact of these policies on the future of Vietnam, this paper analyses the likely urbanisation patterns of Vietnam based upon a scenario of the rapid development of a mixed economy, with a large private sector open to foreign investment, with a strong expansion of manufactured exports following the model of newly-industrialised countries such as Thailand and Indonesia. If such a scenario does develop, this paper suggests that most of the industrial and urban development will be concentrated in the two Extended Metropolitan Regions of Hanoi-Haiphong and Ho Chi Minh. Since these are located in densely populated regions, this pattern of urban development will pose major challenges for urban policy making which will need to be incorporated into national development plans.
