if it does not, puts pressure on the drain and sewer systems. Infrastructure, while acceptable in a few places, has generally not kept pace with other developments, and there are increasing needs for electricity and decent internet coverage.
When one understands that Hanoi and Ho Chi Minh City contribute over a quarter of Vietnam’s GDP, it is clear that what may seem like trifling matters individually, deserving of no more than a heavy sigh, together have real potential to cause a deep and long-term negative effect on the Vietnamese economy as a whole.
But this is only one side of the story. Earlier this year, Ho Chi Minh City and Hanoi were ranked second and eighth, respectively, in the JLL City Momentum Index, an index which ranks cities worldwide on how well they attract and integrate technology and innovation.
So with improvements needed in infrastructure, but with strong capabilities in technology, it is no surprise that Hanoi and Ho Chi Minh City (and Vietnam more generally) have embraced the concept of smart cities. The term smart city is somewhat nebulous, but essentially refers to a city which uses technology to make life better and easier for the residents of the city and the city as a whole.
As Vietnam readies itself for the challenges of the smart city movement, opportunities emerge for German firms
The government in Vietnam has been quick to see the upside of creating smart cities. In 2015, Prime Minister Nguyen Xuan Phuc issued a decision to begin the implementation of smart city concepts. Off the back of this and other supportive legislation, around 20 cities and provinces in Vietnam have launched projects to build smart cities, and it has been announced that a number of technology, infrastructure, and IT businesses have signed deals related to such ventures.