A view of HCM City, Việt Nam's largest financial and economic centre. — VNA Photo

HÀ NỘI — Smart cities hold the answer to the modern world's problems including rising population, pollution, traffic congestion, climate change and even global-scale disasters such as the COVID-19 pandemic, according to experts. 

Nearly half of ASEAN's population is in urban areas. In a forecast by the ASEAN Smart Cities Network (ASCN), a collaborative platform which aims to synergise smart city development efforts across ASEAN by facilitating co-operation, there will be 90 million people living in cities across the region by 2030.

According to ASCN, those cities, with populations typically ranging from 200,000 to 2 million, will account for as much as 40 per cent of economic growth for ASEAN countries.

However, rapid urbanisation has come with challenges such as traffic congestion and accidents, especially in large cities, which caused the region to lose out from 2-5 per cent GDP growth annually. In addition, other pressing issues for large cities included worsening air and water quality, inadequate waste management, rising poverty and crime. 

IT infrastructure development

Countries should look to  information technology (IT) for solutions, said Dr Phạm Khánh Toàn, head of the department of international co-operation under the Ministry of Construction (MoC)

Toàn said IT and telecommunication infrastructure play a key role as cities seek to meet such challenges. ASEAN countries may also learn valuable lessons in developing smart cities from more advanced economies. 

Dr Đào Thị Như from the MoC's urban development department said ASEAN's smart cities should develop a platform to co-operate and share experience in city development with a focus on sustainability. Việt Nam is building three of the first 26 smart cities in the region: Hà Nội, HCM City and Đà Nẵng. 

Như said the cities' objectives include increased living standards, building competitive economies and achieving environmental sustainability. 

In August 2018, the Prime Minister's Office approved a project to develop smart cities in Việt Nam for 2018-25 with a vision to 2030 in which the Government identified three pillars of smart city-building: planning, management and utilities. 

Hà Nội, HCM City and Đà Nẵng City have seen the development of public infrastructure to provide residents services in education, health care, transportation, construction and environmental protection. 

For example, more than 1,500 administrative procedures have been made available online in Hà Nội. The capital has also rolled out an online health care management system for nearly 1 million residents. More than 2,700 schools and universities in the city have implemented online communication channels between teachers and parents. 

Notably, HCM City has been planning to establish Thủ Đức City, a city made up of areas currently span District 2, District 9 and Thủ Đức District. The new city has been earmarked to become a financial hub and a research and development centre that may account for a third of HCM City's economic output or 7 per cent of the country's, said the city's Party leader Nguyễn Thiện Nhân. 

Meanwhile, the city has been building itself as a financial centre in the region to start providing financial services for neighbouring countries such as Cambodia, Myanmar and Laos. There are currently more than 2,100 banking and credit institutions in the city, the most in the country. Last year, HCM City accounted for nearly a quarter of the country's capital raised with the HCM City Stock Market Exchange made up 95 per cent of total market capitalisation and some 54 per cent of Việt Nam's GDP. — VNS