As the capital city of Vietnam, Hanoi has been growing rapidly since 2008. High-rise buildings continue to be constructed on a large scale under the pressure of rapid population growth in ten central districts and many peri-urban areas. Even the most ecological and livable living quarters of the past two decades are now coping with a quandary: ecology or economy? Located in the southwest of Hanoi, just seven kilometers from the city center, Linh Dam New Town is a typical example of “urbanization versus ecologicalization”: 22,800 inhabitants—at 22.31 m2 green area per capita as initially planned compared to 76,300 inhabitants—at 6.94 m2 green area per capita today. Consequently, Linh Dam is no longer regarded as livable by the media and the public. In order to enhance the quality of life for the inhabitants, with well-collected data from public opinion surveys and expert consultation, the authors examine the urban development in Linh Dam within 24 years (1999–2023) with three important time milestones (2003, 2013 and 2023), analyzing the major causes of this environmental degradation, evaluating the local ecosystem based on a number of key indicators, such as greening rate, bio-diversity factor, landscape quality, residents’ demands, etc., highlighting a number of special characteristics in spatial planning and landscape design for Linh Dam to retain or regain, and then proposing a practical re-greening scenario for both the living quarter (as a whole) and for each household (as a unit) of urban ecology with eight solutions for each level, in consideration of the future redevelopment towards sustainability and livability.