Purpose This study examines spatial layouts and sustainable features of vernacular houses in southern Vietnam to apply the lessons learned to the development of a contemporary housing design. This study proposes hypothetical low-rise street-house models popular in contemporary urban Vietnam by applying the spatial and ecological lessons learned from the analysis. Design/methodology/approach In total, 23 well-preserved vernacular houses in Dong Hoa Hiep – an 18th century village in the Tien Giang Province – were chosen for a 2-month, on-site investigation. During the field survey, the houses were measured to fabricate scale drawings for detailed analysis, and photographs were taken. Findings An in-depth evaluation highlighted unique characteristics of spatial compositions, sustainable features, and architectural components that contribute to climate adaptive strategies. Research limitations/implications Although numerous potential arrangements of the models are possible, a few examples are illustrated to validate that the assembly could help achieve a dynamic streetscape for street houses. Social implications From this perspective, vernacular houses in Vietnam are a rich architectural resource and a significant cultural heritage, because these houses have adopted sustainable design strategies suitable for the local climate and culture to ensure comfort and well-being for a long time. Perhaps, sustainable lessons drawn from Vietnam's indigenous houses are a prerequisite to developing contemporary housing in the country. Originality/value Employing the lessons learned from vernacular houses, this study developed three sustainable prototypical designs for the development of contemporary street houses in densely populated cities in Vietnam.