Domestic and foreign investors with licensed smart city and in-the-pipeline projects are expected to benefit from the Vietnamese government’s new concrete strategy and action plan for smart city development, in line with the industry 4.0 era.
Prime Minister Nguyen Xuan Phuc on August 1 approved the master plan for sustainable smart city development in Vietnam in the period of 2018-2025 and orientations to 2030. The master plan aims to promote potential advantages in, as well as optimize the use of, human resources and natural resources, thus increasing living quality and economic competitiveness in terms of green growth and development. Under the plan, which the business community has been awaiting, the work focuses until 2020 will cover building legal frameworks for smart city development and making preparations for pilot investment and development in cities.
By 2025, Vietnam aims to implement the first phase of the pilot smart city development. During this period, the legal framework will be completed and the national criteria prioritized for the pilot development plans, as well as for urban management, lighting, transport, water supply and drainage, waste collection and treatment, power and the power grid, natural disaster warning systems, and ICT infrastructure.
By 2030, the fist pilot phase is set to be completed and then replicated in other sectors and areas, thus establishing an affiliate network of smart city areas in the northern, central, and southern regions of Vietnam, as well as the Mekong Delta region.
According to the master plan, Hanoi, Ho Chi Minh City, Da Nang, and Can Tho are set to become cities central to the network.
Utilizing these concrete strategies of the plan set forth by the Vietnamese government, domestic and foreign investors will feel confident in the construction of their future investment plans, with fewer fears of unpredictable changes.
Vietnam’s BRG group and Japan’s Sumitomo Corporation, which have received an investment certificate for the $4.2 billion Nhat Tan- Noi Bai Smart City project in Hanoi, will be among the benefitciaries. The investors are preparing to kick off the construction this October, with the fifth phase expected to be completed by 2028.
Mililtary-run telecommunications company Viettel Group and FPT ảe also making preparations for thí new development plans. Leading Sưedish companies including ABB, Volvo Buses, Roxtec, and Axis, as well as others from Japan, South Korea, the US and the EU, are studying the transport plans and legal framework before deciding whether to invest directly or to cooperate with Vietnamese partners to develop smart cities.