Advanced services, the New Economy and the built environment in Hanoi

Much of Vietnam’s recent economic growth is based on the industrial sector as well as service industries. This paper briefly analyses the overall economic development of Vietnam since the introduction of the reform process doi moi (renovation) in 1986 and the position of the capital Hanoi in the national and regional economy. The paper also examines clusters of advanced services in the city of Hanoi and explores the development of a small New Economy sector by analysing the locations of software development companies in the city. In addition to the Ancient Quarter, the French Colonial Quarter and the Ba Dinh Area, which have long been identified as distinct areas of administrative and commercial activity in the city of Hanoi, a number of areas away from the city centre could be identified as distinct zones through location analysis and landscape interpretation. Location decisions by the service sector seem to be highly influenced by the built environment and character of an area as well as – of course – property prices, but current planning paradigms are not suited to respond to these developments adequately. Planning still focuses on large scale projects rather than smaller local investments.