Since 1989 Vietnam has been undergoing a process of re-engagement with
the world economy. This liberalization process (doi moi) has been hea
vily concentrated on the two main cities of Vietnam, Hanoi and Ho Chi
Minh City and despite the Vietnamese being eager to avoid the creation
of another Bangkok, with all of its environmental and social problems
, the sustainability of the present urban-based economic growth is und
er threat. In many ways, this threat is disguised by inadequacies in t
he data base on urban population, which has in turn led to an official
underestimation of the extent of some of the social and economic prob
lems being faced by individual households. This paper examines the nat
ure of this growth and contends that the present size of Ho Chi Minh C
ity and Hanoi are much greater than official figures suggest. II then
goes on to review the situation with regard to urban poverty, basic ne
eds and the environment to illustrate the extent to which this unackno
wledged growth is not only threatening the sustained expansion of thos
e cities, but also the sustainability of the economic growth on which
the country is so reliant. (C) 1997 Elsevier Science Ltd.