Building on our previous exploration of Ho Chi Minh City’s urban future, this article expands the lens to examine how Vietnam fits into Asia-Pacific’s fast-changing urban landscape.
From advanced urban centres like Tokyo, Singapore, Seoul or Melbourne to rising hubs such as Kuala Lumpur, Asia-Pacific is undergoing a powerful urban transformation. Vietnam, with its fast urbanisation, young population, and open economy, has the foundations to advance. But major gaps in planning, infrastructure, and governance continue to hold the country back.
“Vietnam is at a pivotal moment,” says Professor Nguyen Quang Trung, co-lead of the RMIT Vietnam Asia Pacific Smart and Sustainable Cities Hub. “We either seize the chance to shape a new generation of smart and sustainable cities or risk being left behind as the region moves forward.”
Vietnam has made steady progress in laying the foundation for smart cities. By the end of 2024, many localities across Vietnam had established smart city initiatives, with many operational centres launched to enhance services in transport, healthcare, and digital education.
Professor Nguyen Quang Trung believes Vietnam’s smart city journey is at a turning point, requiring more than technology - stronger governance and long-term vision are key to meaningful progress. (Photo: RMIT)
Cities like Danang have led with early pilots in smart water and transport, while Hanoi and Ho Chi Minh City have introduced smart cards and public Wi-Fi. Major tech players including Viettel, VNPT, and FPT are also pushing forward AI and IoT solutions for urban governance.
Despite these efforts, Vietnam trails behind regional peers. In the 2025 IMD Smart City Index, Ho Chi Minh City ranks 101st out of 146 cities, and Hanoi 88th. Another global index (CIMI 2025) places HCMC 132nd out of 183, with low scores in urban planning, environment, and governance.
Beyond infrastructure, Vietnam faces deeper structural challenges: fragmentation in governance, talent attraction and retention, and mechanisms for performance measurement. Certain policies remain disconnected from on-the-ground realities, while rapid urbanisation continues to outpace the readiness of infrastructure, institutions, and the public sector workforce. These issues are compounded by climate risks and widening regional disparities. Without bold reforms in planning, the goal of building smart, sustainable, and liveable cities will remain out of reach.
Asia-Pacific is shaping the future of urbanism through data-driven, climate-smart innovation. Cities like Seoul, Shenzhen, and Tokyo have already integrated digital twins, real-time data, and green infrastructure into their urban fabric. National programs such as Japan’s Society 5.0 and Singapore’s Smart Nation strategy are setting benchmarks.
Cities across Asia-Pacific from Singapore to Seoul are setting the pace for data-driven, climate-smart urban models. Vietnam must keep up to remain competitive by 2050. (Photo: siraphol – stock.adobe.com)
Vietnam is involved in regional initiatives too. Hanoi, HCMC, and Danang are part of the ASEAN Smart Cities Network, and recent APEC forums have promoted green transport and climate-resilient development.
According to Professor Trung, by 2050 cities will be more flexible, more sustainable and data-governed. Digital twins will allow real-time planning, public transport systems will be automated in many aspects, and renewable energy will power dense urban zones. But success won’t come automatically.
“There’s a risk of focusing only on technology while ignoring social dimensions like privacy, equity, and inclusion,” he said. “Cities must be people-centred. Technology should serve communities, not replace them.”
To prepare for 2050, Vietnam must develop a long-term urban strategy that goes beyond political cycles. Immediate priorities include building nationwide digital infrastructure - 5G networks, data centres, and broadband access, especially in underserved areas - alongside developing human capital on both the supply and demand sides and narrowing the digital divide across the country.
With administrative reform and a national roadmap, Vietnam can empower local governments to innovate, share data, and co-design future-ready, people-first cities. (Photo: Hanoi Photography – stock.adobe.com)
Vietnam should develop a national roadmap for smart and sustainable cities based on the five-phase framework proposed by the Asian Development Bank (ADB): City Diagnostics, Readiness Assessment, Strategy Development, Implementation Planning, and Monitoring and Evaluation. A central coordinating body - working across government, industry, and academia - will be essential to ensure consistency.
It is essential to focus on each category and indicator within the six core components of a smart and sustainable city: smart mobility, smart living, smart environment, smart people, smart government, and smart economy. For instance, smart mobility infrastructure should encompass roads, airports, and logistics systems, each with clearly defined performance indicators. To ensure effective implementation, a smart management system with clear lines of accountability and an independent audit body must also be established.
A major opportunity lies in the country’s ongoing administrative reform. Professor Trung sees this as a chance to modernise governance and reduce institutional fragmentation. If aligned with smart urban planning, it could empower local authorities to experiment, share data, and coordinate across regions.
Investment should prioritise climate-resilient infrastructure, integrated public transit systems, such as BRT and metro lines connected to airports, green housing, and open spatial data platforms. These investments are more than just technological upgrades; they are key to building resilience and ensuring inclusive growth.
Equally important is strengthening smart governance. As of the end of 2023, around 2,200 e-services were available via the National Public Service Portal, Vietnam is improving its ability to manage cities through real-time data. Standardising open data and building local capacity in data analytics will boost transparency and evidence-based decision-making.
Professor Trung believes education and research are at the heart of this transformation. Institutions like RMIT (Vietnam and Australia) can lead by offering interdisciplinary programs in technology, planning, climate, and data science. Digital city labs, urban policy forums, and regional collaborations on smart agriculture are just some of the ways universities can support national capacity.
For him, this has been a deeply meaningful journey. “When Ho Chi Minh City’s first metro line opened in 2024, I was genuinely moved by the public’s excitement. It wasn’t just infrastructure. It was a symbol of our shared aspiration for a more liveable, modern, and humane city.”
What inspires him most is the opportunity to reimagine how cities serve people. “If I could champion one change in high-density areas of a megacity like Ho Chi Minh City, it would be compact, integrated urban design, like in Singapore, where housing, parks, and transport are seamlessly connected. Cities like that are not just efficient, but deeply human.”
“The success of a smart and sustainable city is not measured by technology or infrastructure alone, but by how we nurture young people and empower its citizens, creating the conditions for them to co-create,” Professor Trung said.
Vietnam 2050: The vision ahead is a thought leadership series powered by RMIT Vietnam’s academic experts, exploring what Vietnam could become over the next 25 years. Each article unpacks potential major shifts – from smart cities and education to tech and entrepreneurship – offering bold predictions and practical ideas for a future-ready nation.
Story: Quan Dinh H.
Thumbnail image: monticellllo - stock.adobe.com
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