Phu Hoi, an edge-of-industry urban village in Vietnam, possesses the distinct structure and characteristics of a southeastern village. However, in a moment of frantic rush towards modernization and massive economic growth, it is now confronted with the threat of homogenization of residential and spatial structure, leading to its role transformation and a monotonous urban image. To sustainably adapt to this overwhelming economic wave, this paper respectively examines the transformation that Phu Hoi has undergone in the past, present, and future in order to identify potential challenges and suggest the next possible development for this urban village. Through literature review, fieldwork research, and a questionnaire survey, this report refrains from providing specific proposals but rather argues for preserving local traditional elements as a means of achieving sustainable development for both urban villages and airport cities in the bigger picture. This study sheds light on the potential for sustainable development in urban design, offering valuable insights for researchers and practitioners in the field of urban planning and design.