At the launch of the development plan on July 29, the Prime Minister said the city’s development will be sustainable, environmentally sensitive and in keeping with the nation’s cultural values.

Mr. Dung said the development plan will boost public services, education, health care and urban architecture and therefore people’s living standards. He said the red River region and northern key economic zone will be the driving force behind the country’s development.

“The building of the plan has been an initial step. The city should inform agencies and the public about the proposal to ensure its smooth progress,” he added.

The PM asked the construction ministry to formulate detailed development plans to create favourable conditions for attracting investments.

Nguyen Hong Quan, Minister of Construction, said officials have been working on the master plan since 2008 in consultation with the US’ Perkins Eastman, South Korea’s Posco E&C and Jina, as well as the Vietnam Institute of Architecture, Urban and Rural Planning and the Hanoi Urban Planning Institute.

Under the plan, the capital will have an administrative borderline of about 3,344 sq. km by 2030. Its centre will remain in old Hanoi’s Ba Dinh District, where public and military offices, the headquarters of the Party, the National Assembly and the Government are situated.

However, some ministries and agencies will be relocated to My Dinh in Tu Liem District and the west of West Lake.

The centre is expected to have a population of 3.7 million in 2020 and 4.6 million in 2030. It will serve as the administrative, economic and cultural hub of the country.

Five satellite cities will surround the city’s centre, namely Hoa Lac, Son Tay, Xuan Mai, Phu Xuyen and Soc Son, which will have a combined population of 700,000 in 2020 and 1.4 million in 2030.

The development plan’s total investment is estimated at VND1.5 trillion (US$70 billion) for the 2011-15 period and VND2.6 trillion (US$120 billion) for the 2016-20 period.

Nguyen Dinh Toan, deputy minister of construction, said that he is confident of finding necessary funds.

“The money will come from the State budget, investors, official development assistance and members of the public,” Toan said.

He said the ministry will implement a number of pilot projects connected with the master plan.

Meanwhile, Dung said ministry and agency heads have launched the Construction Ministry’s National Planning Exhibition Palace in which drawings and models of the project are displayed to make the public aware of the proposal.