Solidiance’s latest white paper, “Transforming Ho Chi Minh City and Hanoi into Sustainable Cities of Vietnam”, delves deeply into key topics that will push forward the development of sustainable cities in Vietnam: public transport, green spaces, green buildings, and smart city initiatives.

Public transport - A solution to mitigate traffic congestion

Though public buses are the most popular mode of public transport in Vietnamese cities, the government is currently in the process of building a dedicated urban rail network around a metro system in an effort to cut road congestion. Through the public-private partnership model, the government has invited the private sector to invest in large-scale transport projects. In October 2017, there were 130 investors wanting to invest in PPP projects with an estimated $17 billion in investments.

A green urban environment to elevate quality of life

Ho Chi Minh City and Hanoi are lagging behind many other Asian cities in terms of green space, creating an additional urbanization challenge. To combat this issue, the government has made efforts to develop more green space around residential areas. Ho Chi Minh City, for example, has focused on developing green spaces within residential projects and new urban developments, while Hanoi is increasing the number of trees and water features to 2030 in a plan that will oversee urban development.

By 2025, Hanoi plans to have 60 parks, including 18 new parks and 42 renovated parks and gardens. In terms of green buildings, there were over 60 internationally-certified green building projects in Vietnam as of 2017 and this has since increased to 110.

Billion-dollar projects to build smart cities

Partnerships between the government and the private sector are making progress in integrating smart city technologies in Ho Chi Minh City and Hanoi. Thirty-three cities and provinces in Vietnam have begun implementing smart city initiatives in order to facilitate easier city management and increase overall quality of life in dense urban areas.

Ho Chi Minh City: South Korea’s Lotte Group and the Ho Chi Minh City People’s Committee signed a contract valued at $1.9 billion in 2017 to build an Eco-Smart City in the Thu Thiem New Urban Area.

Hanoi: Vietnam’s BRG Group and Japan’s Sumitomo Corporation aim to build the Nhat Tan - Noi Bai area (in the northern reaches of the capital) into one of the most modern smart cities in Southeast Asia. The mega-project, worth more than $4 billion, will begin in October.

Solidiance is a corporate strategy consulting firm focused on Asia. It advises CEOs on make-or-break deals, defines new business models, and accelerates growth in Asia. Its expertise is focused on the industrial, automotive, technology, and healthcare sectors, with 13 offices in Asia: Abu Dhabi, Bangkok, Beijing, Beirut, Ho Chi Minh City, Jakarta, Kuala Lumpur, Manila, New Delhi, Yangon, Shanghai, Singapore (its headquarters), and Sydney, as well as client liaison offices in Germany and the US.

VN Economic Times