The KTT (‘Khu Tap The’; Dormitory Region) district is a housing district based on the Soviet microrayon (microdistrict). In contrast to other former or current communist countries, the microrayons in Hanoi have transformed greatly. This occurred from 1986 when Vietnam entered a free market economy by setting up its Doi-Moi (reformation) policy. Ever since Vietnam finds itself in a paradoxical situation: “a one party communist regime overseeing a Wild-West style of capitalism” (World Crunch News, 2013). Today the public spaces in between the KTT housing blocks have been filled up with slum-like developments due to overcrowding and lack of buildings regulations. The paradoxical situation of contemporary Vietnam is the starting point for a new type of housing district: the KTT 2.0. This housing district is more flexible and open to the rapid changes in culture, economy and politics that are taking place in Vietnam today. At the same time it partly preserves the ideals with which these microrayons were designed. The new design is worked out from bottom-up in one of the existing KTT districts: The KTT Kim Lien. Based on thorough research and analyses, requirements were set up to create a type of housing block which is able to meet the variable demands of its inhabitants. This housing block replaces the existing ones and is part of three different types of blocks which, together with various street section designs, form the tools to the creation of new types of (smaller) KTT districts.