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This paper examines the morphologies of Villages-in-the-City (ViCs) in Kunming in China and Hanoi in Vietnam, that are undergoing rapid urbanisation and urban transformation. In China, the term Chengzhongcun refers to development of rural settlements that have been included in the urban districts arising from city expansion. Meanwhile, in Vietnam, the phrase Làng trong phố is used to describe settlements in urban areas that used to be rural villages. Both types of settlements share many common characteristics linked to rural background, and to social and economic policies in these two countries. The findings illustrate that spatial transformations are generated by fundamental economic and social changes, and that the influences of land policies and roles played by local government in each country have significant impacts on the formation of the ViCs. Although the planning processes are managed though top-down systems, the diverse practices and small scale and cost-effective tactics contribute to the transitions of the ViCs. The morphological differences between ViCs development in two countries are due to differences in management modes and land use rights. The outcome of this paper contributes to the deeper understanding about similarities and differences of ViCs in the Global South. • This paper examines and compare the morphologies of Villages-in-the-City in Kunming in China and Hanoi in Vietnam. • The diverse practices and small scale tactics contribute to the transition from rural to urban live styles in both places. • The differences between ViCs developments are due to different modes of management and land use rights. [ABSTRACT FROM AUTHOR]