Vietnam is in the midst of one of the world's most rapid and intensive rural-to-urban transitions. In Hanoi, heritage preservation has gained significant policy attention over the last decades, but efforts continue to focus on the Old Quarter and Colonial City to the exclusion of collective socialist housing complexes and former village areas, and natural features such as canals and urban lakes. Parks and public spaces are urgently needed to offset the high residential densities and to improve the quality of life of residents. Motor vehicles continue to fuel the growth in transportation. Significant efforts were recently made to establish a mass transit system, but progress there is slow. More attention should be paid to improving the existing transportation system and to reduce dependence on fossil fuels.

Investments in new housing estates have fuelled a speculative real estate market but failed to address adequately the needs of the vulnerable segments of the population. Regional integration is a challenge as the city expands and swallows the peri-urban areas around the city.