This paper proposes new development orientation for cities and rural residential areas in the Plain of Reeds, a region in Southern Vietnam that is subject to annual flooding and is grounded in the author’s practical experience and theoretical analysis. Furthermore, this study is based on the plain's features, the history of the foundation of regional urban and residential areas, and the successes and failures of previous planning in the region. Based on data from the Vietnamese government and the IMF, this development orientation is in opposition to the views of many leaders with respect to the development of the cities and rural residential areas of the region. It is hoped that this study will help administrators, planners, and other authorities in Vietnam and other countries.