Vietnam’s Three Cities to Join ASEAN Smart Cities Network

Posted on by

By: Dezan Shira & Associates
Editor: Sophia Harris and Koushan Das

Hanoi, Ho Chi Minh City, and Da Nang will be joining the ASEAN Smart Cities Network (ASCN), which was proposed earlier in April by Singapore. The ASCN aims to facilitate cooperation in the region on smart cities for sustainable development. A total of 26 cities from member states will be joining the network.

DZS RELATED: Business Advisory Services from Dezan Shira & Associates

ASEAN Smart Cities Network

The ASCN is a platform, which would include at least three cities including the capital, from each member state, that would be developed into smart cities. The network focuses on developing digital infrastructure and increasing connectivity in the region in areas such as electronic payments. Other areas of focus include city operations, energy and water conservation. The ASCN will be officially launched at the 33rd ASEAN Summit in November 2018.

Goals of the network

The smart city network aims to:

  • Increase cooperation in the development of smart cities, under which member states will share best practices and develop action plans for the next seven years, which can lead to a framework for development;
  • Work with the private sector on feasible and commercially viable projects;
  • Procure funding from external partners. Member states will be required to enter into partnerships with external partners including the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, and Global Infrastructure Hub.

Related-Reading-Icon-Asean Link RELATED: Growing Market Potential of Fintech in Vietnam

Major components of the plan

The ASCN plan includes four major components:

  • City-specific Action Plans for Smart City Development (2018-2025) which would include projects and action plans that ASEAN members will implement by 2025;
  • ASEAN Smart Cities Framework, which will guide the development, while taking local demands and cultures into consideration;
  • Annual Meeting of the member states will be a platform for sharing ideas and actions plans;
  • Twinning programs, which would assist in developing partnerships between member cities and external partners for implementation of projects.

Focus areas

The smart city development programs focus on issues such as transportation, improving water quality, meeting energy demands, healthcare, education, public services, data, and information and communications technology (ICT). As each member state will have different priorities depending on their existing infrastructure and economy, they will be allowed to focus on limited areas that best suits them.

Related-Reading-Icon-Asean Link RELATED: Market Entry Modes for Vietnam

Need for smart cities

As of now, 49 percent of ASEAN’s population resides in urban areas. Between 2015 and 2030, around 90 million people will move to the cities, while cities with a population between 200,000 and 2 million will be responsible for about 40 percent of the growth.

This increase in urbanization will strain major cities in terms of infrastructure, traffic, water/air quality, waste management, poverty, security, and safety. Technology will be instrumental in resolving the majority of these issues. It will also lead to an increase in the quality of life, urbanization, and help in creating new opportunities. However, the success of a smart city will not only depend on the government, but also regulators and companies that need to focus on new and efficient technologies for a sustainable development. 

Related-Reading-Icon-Asean Link RELATED: Vietnam Increases Investor’s Equity Ratio for PPP Projects

Vietnamese cities

Hanoi

Hanoi aims to be a smart city by 2030 and to do so it has decided to focus on four major sectors, healthcare, education, transport, and tourism. Hanoi already has implemented parking systems that allow users to search for parking lots and pay through mobile devices and is planning to launch it in all the districts in 2018. It is also developing a digital traffic map to manage public transportation in the city.

In education, 2,700 schools and universities have introduced electronic school reports and family-to-school contacts as well as an online enrollment system. Regarding healthcare, the city was the first to introduce e-documents in its health management system, with 900,000 records so far.

By 2020, the focus will be on developing the core infrastructure and smart applications, while the second phase from 2020 to 2025 will focus on making the solutions operational.

Ho Chi Minh City

HCM City aims to be the first smart city in Vietnam. For the next two years, it is focusing on cloud computing infrastructure, big data, building data warehouses/data centers, security-monitoring centers, and open data ecosystem. In addition, the city is planning to introduce smart solutions in healthcare, food safety, education, traffic management, flood control, and law and order.

Da Nang

For the past nine years, Da Nang has consistently topped the Vietnam ICT Index rankings, which ranks cities on their readiness for information and communications technology development and application. The city plans on becoming a smart city by 2020 and a green city by 2025.

The city is working with FPT, the largest information technology service company in Vietnam on various smart city projects on traffic systems, hospital patient databases, and natural disaster management systems. In addition, the city has also developed solutions focusing on public transportation, water supervision, and residential management through their e-Government system.

Related-Reading-Icon-Asean Link RELATED: Impact of US – China Trade War on Vietnam

In addition to the current smart city projects, which focuses on ICT infrastructure, public transportation, healthcare, education, and government services, a greater focus will be needed on issues such as growing energy demand, water shortages, wastewater treatment, and environmental pollution, to achieve an inclusive and sustainable development model.


About
 Us

Vietnam Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Eurasia, including ASEANChinaIndiaIndonesiaRussia & the Silk Road. For editorial matters please contact us here and for a complimentary subscription to our products, please click here.

Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout the Vietnam and the Asian region. We maintain offices in Hanoi and Ho Chi Minh City, as well as throughout China, South-East Asia, India, and Russia. For assistance with investments into Vietnam please contact us at vietnam@dezshira.com or visit us at www.dezshira.com

 

Related Reading Icon-VB

dsa brochureDezan Shira & Associates Brochure 
Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.

DSA_Doing Business in Vietnam 2017_cover_126x90pxAn Introduction to Doing Business in Vietnam 2017
An Introduction to Doing Business in Vietnam 2017 will provide readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in this dynamic country.

VB_2016_12_en_Managing_Contracts_and_Severance_in_Vietnam_-_Cover (1)

Managing Contracts and Severance in Vietnam
In this issue of Vietnam Briefing, we discuss the prevailing state of labor pools in Vietnam and outline key considerations for those seeking to staff and retain workers in the country. We highlight the increasing demand for skilled labor, provide in depth coverage of existing contract options, and showcase severance liabilities that may arise if workers or employers choose to terminate their contracts.

Leave a Reply

Your email address will not be published. Required fields are marked *

Dezan Shira & Associates

Meet the firm behind our content. Dezan Shira & Associates have been servicing foreign investors in China, India and the ASEAN region since 1992. Click here to visit their professional services website and discover how they can help your business succeed in Asia.

News via PR Newswire

Never Miss an Update

Subscribe to gain even better insights into doing business in Vietnam. Subscribing also lets you to take full advantage of all our website features including customizable searches, favorite, wish list and gift functions and access to otherwise restricted content.

Scroll to top