An astonishing feature of Vietnam’s Hanoi and Ho Chi Minh City over the past decade is the rapid urbanisation. These two largest cities in Vietnam are expected to become sustainable cities in Vietnam in the very near future, with the support from the government with clear targets and goals. Substantial amount of dollars (US$6 billion) has been injected into several mega projects to make Ho Chi Minh City the first smart city in Vietnam by 2020, and the second in Hanoi by 2030.
These two cities have become the strong growth poles in the country at a pace that is twice the national average rate, contributing over 50% of Vietnam’s GDP (Gross Domestic Product).
By transforming into sustainable cities, Ho Chi Minh City and Hanoi will definitely see higher productivity and growth, while leveraging on the positive elements such as lower costs, more efficient labor markets, and young, urban, and talented demographics.
Let us take a look at how Hanoi and Ho Chi Minh City will become two future sustainable cities in Vietnam.
Aspects to Become Sustainable Cities
It has always been the government of Vietnam’s goal to reshape its urbanisation process in Ho Chi Minh City and Hanoi to create efficient and sustainable cities.
Building sustainable cities in the midst of rapid urbanisation in Vietnam does not come without challenges. However, the country is certainly making progress by focusing on the four key aspects that are essential to achieving the status of sustainable cities to support the future of Vietnam.
Public buses are the most common mode of public transportation in the cities of Vietnam but still, they are not enough to serve the growing population in Hanoi and Ho Chi Minh City.
To mitigate traffic congestion, an extensive urban rail network is now under construction: a metro system with two lines will be completed and fully operated in Ho Chi Minh City in 2020. Another eight lines are still being planned in Hanoi.
The government of Vietnam welcomed the private sector to invest in this monumental transport project with an estimation of US$17 billion in 2017.
Green Urban Environment
Ho Chi Minh City and Hanoi are still lacking of green urban environment or green spaces compared to other Asian cities. To tackle the challenge to create sustainable cities and provide better quality of life, the government has made progress to create more open green space, especially around the residential areas.
Some previous green space projects that have been proven effective include Nhieu Loc-Thi Nghe Canal and Nguyen Hue Walking Street in Ho Chi Minh City; and Ho Guom Walking Street in Hanoi.
On top of that, the initiatives that are underway to develop more green spaces are the development of 60 parks by 2050 in Hanoi, and new urban and residential projects in Ho Chi Minh City.
Green construction is also one of the key aspects in achieving the goal of sustainable cities. Initiatives for green construction have been happening for some time and are mostly driven by international companies.
There were 60 certified green building projects in Vietnam in 2017, and the other 110 projects are currently in the process of being planned and developed.
The green buildings also include the incorporation of smart technologies into different types of buildings.
Particularly in Hanoi and Ho Chi Minh City, the private sector and the government of Vietnam are working together to implement smart city initiatives.
To date, 33 cities and provinces have incorporated the smart city concept to enhance the quality of life in these densely populated urban areas.
The framework of creating a smart city includes Internet of Things (IOT), e-government, smart community, sustainable environment, smart economy, and ICT infrastructure.
Invest in Vietnam Now
By becoming sustainable cities in Vietnam, Hanoi and Ho Chi Minh City will help Vietnam to achieve efficient and sustainable growth.
As such, there is no doubt that now is the best time to invest in Vietnam, particularly in Ho Chi Minh City and Hanoi.
Get in touch with Cekindo today to discuss how you can participate in the investment in many lucrative billion-dollar projects across Ho Chi Minh City and Hanoi.