Our planet is expected to have 550 cities with more than 1 million residents in each city by 2050. These cities will be the growth driving forces in the future and the rise of cities will bring development opportunities, jobs and prosperity for the society.

 

Vietnam has many good preconditions and conditions for formation and development of sustainable cities. These pluses include its favourable geographical position, young population with abundant labour force, opening business environment, and rapid growth rate in ASEAN. These advantages exert a pull on international investment flows into Vietnam. The country has become an ideal and safe destination for investors. These are conditions for the country to build and develop sustainable cities in the future.

 

Construction Minister Trinh Dinh Dung said: “The objective of the Government is to establish a system of sustainable cities with suitable capacity and diversity across the country. Urban development is not just for socioeconomic purpose but also for national security.”

 

VCCI President Vu Tien Loc said most countries in the world have experienced urbanisation rate of at least 50 percent before reaching the middle-income level. According to the Urbanisation Assessment Report released by the World Bank (2011), Vietnam’s urbanisation rate was 30 percent in 10 years and urban population growth rate was 3.4 percent. Vietnam is in the process of quick urbanisation. The urbanisation wave continues to spread as a socioeconomic process - the process of expanding cities and concentrating population. This changed social relations and associated with industrialisation and modernisation. In addition, this contributes to economic restructuring, improve labour value, create a broad environment for scientific and technical applications, develop economy, enhance and uplift living conditions of workers. It is mainstream trend and positive aspect of urbanisation.

 

However, in reality, the special demand of cities also poses many challenges. According to statistics, a half of the world's population now lives in cities and other 2 billion people will move to cities as of to 2030, bringing total city residents to 60 percent of the global population. Besides increasing economic importance, cities beget growing demand for energy and resources. Cities use 75 percent of energy resources and 60 percent of fresh water and produce 70 percent of greenhouse gas emissions, mainly CO2, on the globe. Mr Loc said urbanisation in Vietnam is exposing numerous shortcomings and causing distressing problems. This requires proper recognition and effective resolution. Major problems of this process are environmental pollution, traffic congestion, overloaded social infrastructure, overloaded utility services (electricity, water, sanitation, etc.) and social services like education and health.

 

In addition, the strong development of cities also poses great challenges to infrastructure. These challenges not only mean assuring high living quality for citizens but also ensuring economic competitiveness of urban centres as well as ensuring effective use of resources. Vietnam is currently confronting similar challenges because of the outbreak of cities and strong urbanisation process. Main current challenges are how to promote economic growth but control ecosystem effects, infrastructure and society in the process of urbanisation also and bring high-quality livelihoods for urban residents.

 

 

Mr Lothar Herrmann, Siemens CEO for ASEAN-Pacific Cluster, said there are many challenges facing Vietnam today. He pointed out comparative indices of cities based on eight aspects of sustainable development: CO2, energy, buildings, transportation, land use and waste management, water, air, and State administration. Siemens has been working side by side with Vietnamese partners and customers to address them. Providing cities with the best possible products, solutions and services is a strategically important task for Siemens, and is part of our company’s growth strategy. Three typical green projects of Siemens in Vietnam are: Ca Mau 1 & 2 combined power complex, 500-KV Quang Ninh station, and Bitexo Financial Tower, the highest tower in Ho Chi Minh City today.

Many problems have been exposed during the process of urbanisation in Vietnam. All challenges about environment, habitat and climate change will lead to inadequate and unpredictable consequences and make big cities more difficult to live. If such shortcomings are not resolved, they will cause instability of cities and limit positive effects of cities on rural areas and surrounding regions.

 

Businesses which serve as the driving force city development have begun to understand the necessity to have a voice and a more active role in coordinating with authorities and stakeholders to build sustainable and prosperous cities thus increasing the competitiveness of the national economy in general and the local business in particular.

 

Emerging regions such as Asia/Pacific and Africa/Middle East currently contribute only 32 percent of global economic output but they are expected to contribute 50 percent to global economic growth by 2020.

 

In fact, cities are competing globally to be more attractive to residents and investors. Basic needs for a city to promote market development and smart infrastructure are efficient transportation of people and goods, reliable and efficient energy supply, utility, security and low emissions. Administering a city is like running a business. It must introduce synchronous and comprehensive measures to address challenges to balance competitiveness, environment and life quality.

 

 

Source: Vietnam Business Forum