Increasing development in urban and rural areas needs to align with new demands for growth, according to the party leader
In a significant move, Vietnam's national initiative to construct one million social housing units for low-income people and industrial zone workers is showing promising results.
The country has also made strides in improving rural living conditions. As of 2024, approximately 58 per cent of rural households had access to clean water, with a goal to raise this figure to 60 per cent in the current year.
However, the path to development is not without its hurdles. Reports presented at a recent working session chaired by Party General Secretary Tô Lâm in Hà Nội highlighted challenges such as unsustainable growth strategies, inadequate regional planning, unstable export markets, low product quality, and competitiveness.
Agricultural, forestry, and fishery exports reached US$62.5 billion in 2024, demonstrating the sector's resilience. Yet, agricultural labour still accounts for a large proportion of the workforce, and rural incomes average only 72 per cent of urban incomes.
The meeting also reviewed the three-year implementation of the Party Central Committee's Resolution 19-NQ/TW on agriculture, farmers, and rural areas through 2030. Urban categorization, administrative unit standards, and classifications need prompt issuance of relevant regulations.
From July 1, 2025, a nationwide administrative restructuring and streamlined local government model have been established for urban infrastructure upgrades. The average housing floor area per capita in urban areas is projected to reach 31.5sq.m per person by the end of 2025, exceeding the target of 27sq.m per person.
Party General Secretary Tô Lâm underscored the importance of understanding the link between urban and rural development, describing them as complementary and mutually reinforcing strategies. Development strategies for urban and rural areas must align with new growth demands.
The engagement of experts, scientists, and the consideration of international case studies are highlighted in response to the country's new growth aspirations. Various policies and mechanisms have been implemented for effective urban development and administrative reforms.
However, urban development and management require improvement, and investment resources are spread thin. Several technical infrastructure indicators, such as urban transportation, green spaces, drainage systems, and public infrastructure in major cities, still fall short of targets. Challenges remain in inconsistencies in planning and the lack of connectivity in urban development.
Despite these challenges, rural areas have seen significant improvements in socio-economic infrastructure. The regulations for the issuance of relevant rules on urban categorization, administrative units, and classifications in Vietnam were issued by the government, with specific decrees outlining the classification system for provincial and commune-level administrative units, and exceptions for Hanoi and Ho Chi Minh City as special administrative units.
In conclusion, while Vietnam has made considerable progress in its urban and rural development, there are still areas that require attention and improvement. The government is taking steps to address these challenges and ensure sustainable growth for all its citizens.
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