Resumen de Rethinking developmental state intervention in the housing supply of a transitional economy: Evidence from Hanoi, Vietnam

Youseung Shin, Youngsang Kwon, Ducksu Seo

• The Vietnamese government has consistently played the role of policy initiator to achieve mass affordable housing provision through mobilising resources from the private sector since the Doi Moi policy was proclaimed. Consequently, high-rise apartments have gradually changed Hanoi's cityscape, while self-built row-houses still dominate the housing market. This study explores the evolution in housing types from the perspective of policy deviation. It aims to examine Hanoi's housing development using the developmental state model's theoretical framework to verify the impact of government intervention. The research methods involved collecting official statistics and survey data on apartment plans; an in-depth literature review on the local laws and regulations; and focus group interviews with government officials, professors, and construction industry businesspeople. This study shows that crude regulations and mismatches in actual housing demand led to malfunctions in ambitious housing supply plans during policy implementation. It also identifies that public land ownership and centralised planning authority are critical elements of the state's incentive-control scheme for housing provision. The public entities' market independence, ensuring the private sector's profitability, and financial instruments that promote housing affordability are essential for the state-led housing development policy's success.