Vietnam is entering a new era of urban innovation. Fueled by rapid urbanization and a growing tech sector, Vietnam Smart City Development is gaining momentum across the country. The smart cities market was valued at USD 7.1 billion in 2024 and is projected to reach USD 22.7 billion by 2033, growing at a strong CAGR of 12.3%. This rapid growth reflects the nation's drive to modernize infrastructure, enhance public services, and improve quality of life through digital innovation. With urban centers contributing 70% of the country’s GDP, developing smarter, more connected cities is a strategic priority for Vietnam's economic future.
Vietnam Smart City Development Commitment to Smart Urbanization
Vietnam's smart city movement is not limited to a few major hubs. As of 2023, 48 out of 63 provinces and cities have launched smart urban projects, demonstrating nationwide alignment with this vision.
Hanoi and Ho Chi Minh City are leading the way. In 2024, Hanoi was named one of the world’s 100 smartest cities, thanks to its integration of advanced digital services. The iHanoi app, for instance, boasts 1.6 million user accounts, while 5.4 million health records are now linked to the national database—offering residents easier access to services and a more efficient healthcare system.
In Ho Chi Minh City, the smart city blueprint prioritizes four key pillars: a shared database, a simulation and forecasting center for policymaking, a smart administration center, and an information security hub. Major projects include e-government platforms, intelligent traffic systems, and real-time environmental monitoring—all powered by an “open technological architecture” to foster enterprise and public involvement.
Danang’s Ambitious Model
The coastal city of Danang has laid out one of Vietnam’s most comprehensive smart city plans. With an investment of VND 2.1 trillion (about USD 91.3 million), its initiative spans 17 areas of digital application grouped into six key pillars: smart governance, economy, environment, transport, life, and citizenship. Danang’s approach underscores the importance of inclusive and data-driven urban planning.
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Why Vietnam Smart City Development Matters Now
Vietnam currently has 902 urban areas with an urbanization rate of 42.7%, aligning closely with the Asian average. As cities expand, digital technologies offer scalable solutions to traffic congestion, pollution, public health, and energy management.
By 2025, the country’s smart city market is expected to generate US$233 million in annual revenue, with a projected CAGR of 12.55% reaching US$373.88 million by 2029. These figures highlight a robust commercial opportunity for investors and technology providers alike. Smart cities are not just about efficiency. They are about creating livable, sustainable urban environments. With ongoing investments and clear government backing, Vietnam is turning its smart city ambitions into real-world impact.
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Vietnam Smart City Development: What’s Next?
Vietnam Smart City Development is no longer just a plan—it’s a reality unfolding in real time. From Hanoi’s global recognition to Ho Chi Minh City’s urban data centers and Danang’s holistic model, Vietnam is setting new benchmarks for tech-driven urban transformation. As the market grows and more provinces go digital, smart cities will become a cornerstone of Vietnam’s sustainable and inclusive development strategy.
