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This research studies monitoring and evaluation (M&E) systems for urban planning in order to propose a concrete M&E system for the performance of urban plans in practice. To monitor and evaluate the planning progress until goals/objectives are met, the crucial functions as well as operation of the M&E system are established. Firstly, we present 4 functions that must be contained in the M&E system, including the quantitative management of policy effects, PDCA management of planning process, engagement of stakeholders, and data management. Secondly, the structure of the M&E system is theoretically analyzed by utilizing a logic model, KPIs, benchmarking, and a PDCA cycle, in order to support those four functions. Thirdly, the operation of the M&E system for an urban plan is built in 7 steps in order to manage the entire planning process and check its performance measurement until achieving final outcomes. Fourthly, to test the M&E system, the case of the Hanoi Master Plan is presented to investigate how the system works for the performance of an urban plan, and from that evaluate the policy effects and revise policies. This process includes the identification of planning policies to support goals, the application of a logic model for KPI selection, KPI calculation with CUE models and a Gap Analysis process, and PDCA Management of the M&E system.