The thesis examines the living conditions of low-income households in Hanoi during a period of economic, social and political change. The aims are viewed in the context of rapid urbanisation. The study further considers how factors associated with low-income have affected the perceptions of respondents in regards to their domestic environments and to the environment at varying spatial levels. These perceptions are then compared to the contributions made by the State, non-governmental organisations and international donors to reveal that although information exists this rarely reaches those in low-income neighbourhoods. A number of research methods revealed that an econometric approach alone does not reveal the true characteristics or diversity of living conditions in the areas studied. Conditions varied within and between study areas highlighting the multi-dimensional nature of poverty and how, while lack of income can contribute to lack of environmental conditions, it is not the only factor. Education, political affiliation and age in particular are of crucial importance in explaining living conditions and attitudes to the environment. As a result the thesis contributes to the growing literature on sustainable urbanisation and illustrates the importance of adopting holistic and participatory approaches. By focusing on Vietnam during the 1990s, this thesis has revealed the importance of considering macro-level economic and political structures in the development of theory and policy during processes of transition.