Authorities have been planning to move the families with over 26,000 members to the Viet Hung Urban Area in the outlying Long Bien District since 2002 to reduce the population density in the downtown from 823 people per hectare to 500.

This would help the capital preserve its historical heritage and architecture, develop sustainably and boost its economy, they said.

The city government has tasked the Hoan Kiem District administration with finding the investor and start the construction in the fourth quarter. Details of the procedures were not revealed.

Hanoi's People's Council said Hoan Kiem District administration has started identifying affected people in the area to prepare compensation.

The people to be relocated live mainly in houses and apartments that have deteriorated so badly they pose a threat to their occupants, authorities said.

While the relocation has been in the works since 2002 and construction of the new housing was expected to be completed in 2017, the work never began due to various problems like the need for many different compensation plans and a lack of data on land area and house prices, according to the legislative People’s Council.

The iconic Old Quarter, which spans 81 hectares, is a popular destination for locals and tourists with its rich and unique urban culture, street vendors, coffee shops, and quaint architecture.