In August 2004, in response to a requestfrom the Government of Vietnam (GOV), the WB/ IDA launchedpreparatory activities for the Priority InfrastructureInvestment Project (PIIP) in Danang. The PIIP is amulti-sectoral infrastructure investment initiative aimed atpoverty reduction and the promotion of economic growth. TheProject reflects the national goals set out in theComprehensive Poverty Reduction and Growth Strategy (CPRGS),and is in line with the overall development priorities ofthe City's Five-Year (2006-200) Socio-EconomicDevelopment Plan (SEDP). The (PIIP) Project objectives areto: i) improve the living conditions and productivity of lowincome residents through better access to basic services;ii) promote economic growth through strategic investmentsthat enhance mobility and increase private sectorparticipation in the City's economic development; andiii) improve city and district level management throughinstitutional and human resource development and capacitybuilding. During the course of (PIIP) Project preparationactivities, the Government expressed a desire to include afurther sub-component to support the provision of housingfor poor households not affected by the Project. Thisprovided the rationale for the Assessment of Housing for LowIncome Groups in Danang, (hereinafter referred to as the LowIncome Housing Assessment Study (LIHAS)), which willparallel, support and inform preparation of the PIIPProject, while not being an integral part of it. The Studywill take account of Government housing policy as it affectslow-income households (LIH) in Danang. In this regard therehas been a move away from direct Government involvement inhouse construction for the public sector service which wasfound to be financially unsustainable.The scope of work isbased on two phases with the second phase consisting ofoptions and recommendations: this second stage reportcontains: i) determination of the effective demand forlow-income housing; ii) description of alternative technicalstandards for low income housing in the city; iii) overviewof the need for financing of low income households, thedemand for finance and different models of low incomehousehold finance; iv) definition of an outline low incomehousing policy for Danang City v) models of low-incomehousing production with varying degrees of public andprivate participation; vi) suggestions relating to theinstitutional framework for public housing provision and management.