INNOVATION IN SOCIAL TRANSITION STAGE INNOVATION IN SOCIAL TRANSITION STAGE IN HOUSING FOR THE LOW INCOME EARNERS AND SOLID IN HOUSING FOR THE LOW INCOME EARNERS AND SOLID

WASTE COLLECTION SERVICE IN HOCHIMINH CITY, WASTE COLLECTION SERVICE IN HOCHIMINH CITY, VIETNAMVIETNAM

Asian City innovation Systems Initiative (CIS-ASIA)

Nguyen Minh Hoa – Pham Gia Tran

VIETNAM NATIONAL UNIVERSITYDEPARTMENT OF URBAN STUDIES

CONTENTS

PART ONE: INTRODUCTION ABOUT HOCHIMINH CITY, RENOVATIONPROCESS, CHALLENGES AND PROCESS, CHALLENGES AND RESEARCH FOCUS

PART TWO: RESEARCH FINDINGS• Renovation in housing for the low income earners

• Initiatives in solid waste collection service• Initiatives in solid waste collection service

PART ONE:PART ONE:

INTRODUCTION ABOUT HOCHIMINH CITY, RENOVATION PROCESS,

CHALLENGES AND RESEARCH FOCUS

1. OVERVIEW OF VIETNAMESE URBAN

• Population: 87 millions

• Area: 332.000 km2 • Area: 332.000 km2

• There are 58 provinces and 743 cities, towns

• 30 % of total national population are living in the urban areas

• Two biggest cities: Hanoi • Two biggest cities: Hanoi and Hochiminh city

Hochiminh Metropolitan Hochiminh Metropolitan

2. OVERVIEW OF HOCHIMINH CITY

� HCMC locates in the South of Vietnam.

� HCMC is

- One of the 30 biggest cities

in the world

- One of the 5 biggest cities in

ASEAN (Bangkok, Jakarta, ASEAN (Bangkok, Jakarta,

Metro Manila, and Kuala

Lumpur)

2. OVERVIEW OF HOCHIMINH CITY

• HCMC’s area is 2.100 km2 accounting for 0.6% of the whole country.

• Its population is the biggest with 8.3 million • Its population is the biggest with 8.3 million people, (accounting for 9.6% of national population). HCMC has 19 inner districts and 5 sub-urban districts.

• Economic growth rate is 11% in average which is always the highest rate in VN

• Has the highest GDP/person/year in Vietnam (2.000 USD), other place is 640 USD

• It contribute 37% of National budget each year

2. OVERVIEW OF HOCHIMINH CITY

• It contribute 37% of National budget each year

• Has the highest FDI in VN (45% of national FDI)

• It is educational, cultural, economic center

• HCMC has 16 industrial zones and 3 software parks and 2 high-tech zones

• HCMC is the biggest center of light industry, electronic industry.

3. RENOVATION IN VIETNAM

• It has begun since 1990, after Socialist system was the collapse; Embargo by UN was lifted, Vietnam has normalized relationship with USA & other countries countries

• Moving from agricultural society to industrial, commercial and service society

• Transformation from subsidy and centralizing economy to free economic market

• Moving from a single state-owned economic sector system to an economy of many different forms of system to an economy of many different forms of ownership

• Moving from a closing economy and society to an open society with economic integration and cultural exchange

4. RENOVATION IN HO CHI MINH CITY

Public administrative reform�HCMC is the leading center for renovation in

Foreign investment policy

Transport service

Telecom and postal service

center for renovation in VN

�Renovation of HCM

city in 6 fields

�After 20 years of

renovation, the process

Bank and financial service

Tourist service

renovation, the process

speed is slowing and

reform’ result is limited

for some challenges

5. SOME MAIN CHALLENGES FOR RENOVATION

�Urban management system is backward in metropolitanmetropolitan

�Highly concentrated management system in the upper level and lowly decentralized in the lower level

�Technique infrastructure and social service are poor by lack mobilizing social resource poor by lack mobilizing social resource

6. RESEARCH FOCUS

• Research topics of VN group are housing for the low income and solid waste collection

• It meet one of some most urgent requests from • It meet one of some most urgent requests from practice of HCM city is “Privatization of public services”

• It is accepted by the city government authority, functional agencies, private enterprises and local people

• Its research results will received by organizations • Its research results will received by organizations and apply them into fact

7. COOPERATION PARTNERS

• Local government :

- Department of Construction of HCM City People's Committee

- Department of Natural Resources and Environment of - Department of Natural Resources and Environment of HCM City People's Committee

- Department of urban Planning and Architecture of HCM City People's Committee

- People Committee of urban districts and wards in HCMC

• Companies: • Companies:

- Southern Dragon Co., Ltd- Good Land Real Estate Company- Public Service Companies of urban districts in HCMC

8. RESEARCH SAMPLE

• About topic on housing:

�Investigation on five real estate companies: New �Investigation on five real estate companies: New Vision company, Good land company, Southern Dragon company and Peace company.

�Conducted interview by questionnaire with 500 inhabitants to gain their assessments on innovations.

�Having studied 4 apartment buildings applied �Having studied 4 apartment buildings applied successfully those innovations in District 2, 7 and 9.

8. RESEARCH SAMPLE (Cont.)

• About topic on Solid waste collection :

�Investigation on some co-operatives of waster �Investigation on some co-operatives of waster collection

� Having Studied some private waste Collectors

�Conducted interview by questionnaire with 200 households

�Conducted interview with experts and �Conducted interview with experts and government authorities

PART TWO: PART TWO: RESEARCH FINDINGS

Economic-social context of HCMC related to the

renovation

CONCEPTUAL FRAMEWORK

“Renovation” theory and conditions for ensuring

the renovation

Renovation in the housing for the low income

earners

Renovation in solid waste collection service

Fact Renovation Fact Renovation

Fact Renovationprogram

Fact Renovation program

OBJECTIVES

• To formulate the theoretical basic for the innovation in HCMC and in Vietnam;

• To build up the conceptual framework and research methodology;• To describe the fact of housing for low income earners and the solid

waste collection in HCMC;waste collection in HCMC;• To identify the innovative factors appearing in such areas as

housing and solid waste collection in HCMC• To interpret the legal, economic and social grounds for the existence

and development of innovations;• To propose innovative solutions at the macro level based on the

factual experiences;• To convince the state functional agencies in accepting and partly

applying the research findings to the reality though operations of enterprises and related social organizations.enterprises and related social organizations.

UNDERTAKEN TASKS

1. Conducted training courses for members of working group

2. Discussed with companies and agencies having 2. Discussed with companies and agencies having successful innovations

3. Conducted survey with inhabitants / beneficiaries to gain their assessments on those innovations

4. Data processing and interpreting5. Having worked with the HCMC state functional 5. Having worked with the HCMC state functional

agencies

I. RENOVATION IN HOUSING FOR THE I. RENOVATION IN HOUSING FOR THE LOW INCOME EARNERS

1. CONTEXT

• Income of low income earners: 1.5-2.0 USD / person/day

• More than 800.000 people having no stable dweller.• More than 800.000 people having no stable dweller.

• They used to live in rental houses

• Low income earners could not access to housing

• Decisive role of state owned enterprises in housing.

• Private enterprises have brought out good initiatives of housingof housing

2- RENOVATION IN HOUSING FOR THE LOW INCOME EARNERS

Mobilization of capital of people

Low incomeLow incomeLow incomeLow income

Earners Earners Earners Earners

Access housingAccess housingAccess housingAccess housing

Development of comprehensive

living space

Changing design of building’s apartment

Build building at the place with favorable conditions for

people’s life

2. 1- MOBILIZATION OF CAPITAL OF PEOPLE

Fact:

Both investors and people face constraints of capital

to invest housingto invest housing

Initiatives:Customers contribute capital to the investor and they

become the capital generating shareholders

2. 2- CHANGE DESIGN OF BUILDING’S APARTMENT

Fact:Many previous efforts of reduction of the cost price of house still were the temporary solutionsLow income earners have the choice of the apartments Low income earners have the choice of the apartments with small areaInitiatives:

1. Apartment area: reduced from 60 m2 to 36 and 32 m2. 2. Height from the floor to ceiling was raised higher to

make a mezzanine3. Number of stories was raised higher4. Ground floor of building was used with the function of

business and was sold by the market price

AreaArea 32 m32 m22 40 m40 m22 50 m50 m22 60 m60 m22 > 80 m> 80 m22 No participate No participate the choicethe choice

Industrial worker 31%31% 42%42% 13%13% 2%2% 0%0% 12%12%

State authority 29%29% 42%42% 21%21% 5%5% 3%3% 0%0%

EXPECTATION OF APARTMENT AREA BY TYPES OF OCCUPATION

State authority officer

29%29% 42%42% 21%21% 5%5% 3%3% 0%0%

Domestic private company officer

11%11% 23%23% 37%37% 22%22% 7%7% 0%0%

Foreign company officer

0%0% 5%5% 12%12% 52%52% 27%27% 4%4%

University teacher 8%8% 33%33% 35%35% 15%15% 9%9% 0%0%

Health officer 2525 33%33% 27%27% 8%8% 22 5%5%

Hired worker 42%42% 31%31% 5%5% 0%0% 0%0% 22%22%

Number of opinion 146146 209209 150150 104104 4848 4343

% / 700 20.8520.85 20.8520.85 21.4321.43 14.8514.85 6.866.86 6.146.14

Fact:From 1985 to 1995, buildings for the low income earners mainly are the cheap and short-term ones –

2. 3- DEVELOPMENT OF COMPREHENSIVE LIVING SPACE

earners mainly are the cheap and short-term ones –“Over night place”Since 2000, customers have changed their choices on their living place Initiatives:Private enterprises have constructed the living facilities including small park, community house for facilities including small park, community house for common living activities, kindergarten, community health station, grocery, coffee shop …

2. 4- BUILD BUILDING AT THE PLACE WITH FAVOURABLE CONDITIONS FOR PEOPLE LIFE

Fact:

Many buildings were located far from the center area, main road, trade and service center and travel centersmain road, trade and service center and travel centers

Initiatives:

To have land fund, enterprises access to the poor residential areas or the slums with the area of several hectares located in the urban districtshectares located in the urban districts

CONCLUSION FOR FIRST TOPIC

Initiatives are really quite new in VietnamInitiatives that are waiting for the approval of governmentInitiatives stem from the private-owned enterprisesIn the process of national renovation in general and urban renovation in particular, the private sector is considered one of the most important forces that should be recognized

BUILDING FOR LOW INCOME EARNERS

II. INIATIVES IN SOLID WASTE COLLECTION SERVICE

1. CONTEXT

� The generation of solid waste in urban towns is on the rise.

� In HCMC, the amount of solid waste increased averagely 8%-10% per year.increased averagely 8%-10% per year.

1500000

2000000

2500000

3000000

3500000

VOLU

ME

OF W

ASTE

- T

ON

0

500000

1000000

VOLU

ME

OF W

ASTE

- T

ON

1997 1998 1999 2000 2010 2015

YEAR

TOTAL VOLUME OF WASTE DOMESTIC WASTE DEMOLISHED WASTE

1. CONTEXT

• In urban area, there is often a lack of service coverage of settlement areas.

• In HCMC, the public waste collection service only • In HCMC, the public waste collection service only reaches households that are located along main roads.

• 3/4 of total households located in small alleys is served by the private waste collection service

Households, markets Primary collection Hand carts

MODEL OF SOLID WASTE COLLECTION AND TRANSPORTATION

Formal and Meeting points*, depots Informal Recycling sectors Temporary storage Intermediate station & Secondary collection Close compacting station Landfills * Meeting points: These are transfer points that are light, mobile and without infrastructure. The mobile transfer points are not always hygienic and they are not permanent either. They function in the evening (from 21:00 to 22:00 p.m.). After time of 22:00 p.m, they are totally cleaned and the urban space, badly needed for the traffic all day long is cleared. Currently, there are about 431 meeting points in HCMC

INSTITUTIONAL ARRANGEMENT

• Informal private waste collection sector:

It is a self-development organization. Collectors are of family, team, group. Their activities have been done in small areas (some neighborhoods).small areas (some neighborhoods).

Fact:Private waste collectors work independentlyPrivate waste collectors do not sign contract with householdsLocal authority can not manage their operation Local authority can not manage their operation The institutional arrangement of informal waste collection sector is in the concern of authority.

Local authorityWard People Committee

State functional Agency:

ACTORS ROLE

AdministrativeManagement

ProfessionalSolidwaste

collectionsystem

atcommunity

level

Agency:Public service company

(PSC)

Private sector:

Social organization:Syndicate of private

collectors

ProfessionalSupervision

ProfessionalEnabler

Private sector:Individual waste

collectors

Community:Head of cellHouseholds

ServiceProvider

ServiceUser

Ward PC 10 % fee Management

INSTITUTIONAL ARRANGEMENT OF PRIVATE WASTE COLLECTORS IN DISTRICT BINH THANH - HCMC

10 % fee Management Syndicate of private Private waste collectors Collectors Management Supervision Fees Service Head of block, cell Households Facilitating

District Labor Union Employment related promotional activities

INSTITUTIONAL ARRANGEMENT OF PRIVATE WASTE COLLECTORS IN DISTRICT 11 - HCMC

promotional activities Ward PCs SPWC PSC Employment related promotional activities 10% fee Ward SPWC Admin. management Professional management Fees Services Households

PSC Wage Ward PCs (With assistance from the Environment supervisor hired by the PSC)

INSTITUTIONAL ARRANGEMENT OF PRIVATE WASTE COLLECTORS IN DISTRICT 3 - HCMC

Environment supervisor hired by the PSC) Task 5% of income 5% of Admin. Performance income management (Supervision, (License, agreement) fine) Private waste collector Private waste collector Service Fee Households

Ward PCs 5% of income PSC

INSTITUTIONAL ARRANGEMENT OF PRIVATE WASTE COLLECTORS IN DISTRICT 6 - HCMC

10% of Administrative Professional Income management management Cell leader Private collectors Fees Services Wage Households

ASSESSMENTAdvantagesThe system proves to be effective in evacuating waste timely and has been cooperated well to the formal transportation systemThe equipments used appears to be cheap in manufacture The equipments used appears to be cheap in manufacture and operation, simple in design and well adapted to the local characteristics The business provides employment to the city poor The door-to-door collection is a most reliable system Private waste collectors are very dynamic

ASSESSMENT

DisadvantagesThe improper distribution of collection routes

Improper collection services unable to be enforced

Synchronization between collection and transportation

Pollution potentiality

The dependency nature of households on collectors

5. CONCLUSION FOR SECOND TOPIC

In HCMC, private waste collection service has proven to be a good initiative.The city has only engaged in the improvement of The city has only engaged in the improvement of the organizational structure of primary waste collection very recently. It is commonly agreed that the private sector is necessarily legalized in the municipal solid waste management of city.

CONCLUSION

HCMC is in the rapid urbanization and transitional process from medium to higher level. This process is complicated, difficulty and for long time, thus it is complicated, difficulty and for long time, thus it need creations and renovations for gaining more achievements and overcoming emerging challenges. Our results on renovation in housing and waste collection have impacted to policy decision makers, private enterprises, City and local makers, private enterprises, City and local authorities and State functional agencies

Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you