Sustainability in land use plays an important role in the urbanization process toward achieving the goals of the 2030 Agenda for Sustainable Development. This study integrates Earth observation data through satellite imagery analysis combined with field surveys to assess the Urban Land Use Efficiency (ULUE) by using the land use efficiency index, estimates the relationship between land use, population growth, and the urbanization process in Thang Loi ward over a 20-year period. The findings reveal inefficient urban land use, where the expansion rate of built-up areas exceeds the population growth rate in the studied area. From 2002 to 2022, the population and built-up area increased by 339% and 460%, respectively. In most of the expanding areas, there is widespread hoarding and fragmentation of land use, with numerous plots of land being vacant or underutilized for many years due to lack of control. Therefore, to improve land productivity and ensure sustainable urban growth, the local government should consider improving the Urban Land Use Efficiency Index.