At the plan's launch yesterday, the Prime Minister said the city's development would be sustainable, environmentally sensitive and in keeping with the nation's cultural values.

Dung said the development plan would boost public services, education, healthcare and urban architecture and therefore people's living standards. He said the Red River region and northern key economic zone would 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.

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

Nguyen Hong Quan, Minister of Construction, said officials had been working on the master plan since 2008 and that they had been in consultation with US' Perkins Eastman, South Korea's Posco E&C and Jina, as well as the Viet Nam Institute of Architecture, Urban and Rural Planning and the Ha Noi 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 Ha Noi'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 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 period 2011-15 and VND2.6 trillion ($120 billion) for the period of 2016-20.

Nguyen Dinh Toan, deputy minister of construction, told Viet Nam News that he was confident the necessary funds could be found.

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

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

Meanwhile, Dung said ministry and agency heads had launched the Construction Ministry's National Planning Exhibition Palace in which drawings and models of planned project are displayed to raise awareness about the proposal. — Vietnam News