Ho Chi Minh City

A New Direction to its Future City Model

Jaewon Peter Chun
President of World Smart Cities Forum (WSCF)
September 14th 2023
Ho Chi Minh City, Vietnam

Abstract
I am here today to discuss a pressing and transformative topic that holds the key to the future of Ho
Chi Minh City - "Green Growth - Toward Net Zero." As we navigate the complexities of urbanization
and environmental sustainability, it is our shared responsibility to embrace the concept of green
growth and the circular economy model for the betterment of our beloved megacity, Saigon.

The trend of green growth and circular economy development has captured the attention of
megacities worldwide, and ours is no exception. In this era of rapid urbanization, we are presented
with both challenges and opportunities. The circular economy, with its emphasis on minimizing
waste, recycling resources, and rethinking production processes, offers us a pathway towards
sustainable prosperity. By adopting this model, we not only safeguard our environment but also
foster economic growth that is aligned with ecological well-being.

At the heart of this endeavor lies the imperative to build a robust ecosystem for the circular
economy. This requires a collective effort from various stakeholders - government entities,
businesses, local communities, and individuals. Our policies must serve as the cornerstone of our
journey towards zero emissions and sustainable growth. We need forward-thinking policies that
incentivize green practices, drive innovation, and create an enabling environment for the adoption of
clean technologies. Through such policies, we can ensure that our city's growth is not at the expense
of our environment, but rather in harmony with it.

The development of a circular economy hinges on the efficient utilization of resources. As we

endeavor to reduce our ecological footprint, we must embrace a mindset that values resource
optimization. This calls for a paradigm shift - a shift from a linear "take-make-dispose" approach to a
circular one, where resources are reused, repaired, and regenerated. By doing so, we not only
conserve precious raw materials but also alleviate the strain on our planet's finite resources.

In our pursuit of sustainable growth, we can draw invaluable lessons from the experiences of other
megacities around the world. International success stories and challenges provide us with a roadmap
to navigate our own path. In this context, Ho Chi Minh City's recent participation in 'The Global TWIN
CITIES Initiative' in Liverpool holds immense promise. By collaborating with other global
metropolitan cities, we can leverage our city's brand recognition to exchange knowledge, share best
practices, and collectively work towards a greener, more innovative future.

By embracing the circular economy model, crafting visionary policies, optimizing resources, and
learning from global peers, we can propel Ho Chi Minh City towards a future that is characterized by
sustainable growth, environmental stewardship, and resilience. Together, we have the power to
transform our city into a shining example of green innovation, where progress is synonymous with
sustainability.

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1. BACKGROUND
According to the United Nations Population Fund, in 2014, 54% of the world’s population lived in
urban areas, approximately 3.3 billion people. By 2030, roughly 66%, or 5 billion people will live in
urban areas. This not only represents a massive challenge in how we build and manage cities but also
poses a significant opportunity to improve the lives of billions of people. Rising to that challenge,
engineers worldwide are turning to new technology - such as the Cyber Physical Systems, 5G and data
analytics - searching for new approaches and solutions that will improve city transportation, water
and waste management, energy usage, and a host of other infrastructure issues that underpin the
operation of cities and the lifestyle of urban citizens.

According to Deloitte, in order to address the challenges brought about by urbanization, countries
around the world have been making significant investments in the construction of smart cities for over
a decade. The amount of investment has been on the increase year over year, and is expected to reach
the height in the coming five years, especially in Asian countries, given their late-mover advantages
which provided them plenty of room for development in smart cities.

1-1. Improving quality of life

The core of smart city is to solve urban problems by building a smart city platform in the existing
city. In the past, the city suffered from traffic congestion, power shortages, and environmental
pollution problems and cities have tried to resolve these issues through physical ways. Today, on
the other hand, smart city looks for solutions to shared problems and analyse data generated
over the Internet.

For example, the Amsterdam smart city has helped the city save 9-14% of the fuel cost, and
carbon emission is expected to reduce by 40% by 2025. Barcelona’s smart water system saves
the city 58 million US dollars annually, and smart parking system saves 50 million US dollars
annually. In Songdo, South Korea, smart building solution saves approximately 30% of energy
consumption for each building.

Therefore, with the adoption of smart city, a number social benefits can be enjoyed by people in
Ho Chi Minh City. First, data driven policy making will increase the effectiveness of policy and
create a more favourable social environment for businesses and people’s lives. Second, real-time
analysis of surveillance data using sensor system can improve public safety and security. Third,
increase waste collection efficiency using sensors in waste containers can help the city manage
waste more efficiently. Fourth, lower urban congestion and pollution through optimizing the
transportation infrastructure can help the city reduce traffic congestion and pollution. Fifth,
energy saving through real-time insight in energy use can reduce the cost associated with it.

1-2. Insuring competitive analysis

Bringing innovation in urban operations by building a smart city can achieve a competitive city.
The citizens want to participate directly in the smart city development and building a sustainable
smart city that share the ideas among the city’s stakeholders. Individuals, industry, development
incessant apply IT skills in the public sector and job creation effects can be achieved through a
variety of investment and urban competitiveness and cooperation character.

For example, according to Deloitte’s statistics, cities that invest in smart technologies and
infrastructure managed to lower the unemployment rate by 1.0%. According to statistics,
investing in smart grid and infrastructure promotes GDP growth rate by 0.7%. Also, with ever 20%
increase in ICT investments could promote GDP growth by 1.0%.

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 Therefore, with the adoption of smart city, Ho Chi Minh City can benefit from the competitive
edge it will gain. Firstly, the city can increase its GDP per capital. Secondly, it can lower
unemployment rate. Lastly, enable urban managers to achieve scientific decision-making and
perform detailed management.

2. Definition of Smart City

2-1. Social Impact and Urban-Regeneration

Smart city has sprung up to respond to various urban problems (environment, energy saving,
transport, etc.) by the better service and technology based on the innovation and social impact.
Smart city also shares and analyses data created from sensors and CCTVs installed in various
urban facilities through the internet, and provide new information technologies in various fields
including energy, traffic, and building management, for the purpose of improving quality of life
in the city.

Over the years, cities have changed its constituent canons. The city, from a place of social life,
has become a space to be used to take advantage of the infrastructure and services. This
mentality has generated degradation, disorder, waste, lack of resources, poor services. It shaped
to a new model of city that determined the processes of urban sprawling. It is urgent to define a
new model of urban development, structured on a coherent and organic policy, with multi-level
relationships, in which cities play the dual role of policy takers and policy makers.

So urban regeneration is the attempt to reverse that decline by improving the physical structure,
and more importantly, the economy of those areas. In some developed countries, the rapid
suburbanization of large cities began. It resulted in many urban problems, including the waste of
energy resources, decline in the commercial activities, traffic congestion, and pollution. In
addition, the decrease in investment in the city center deteriorated the existing facilities and
infrastructure, making the economic condition in the inner area free fall.

The concept of urban regeneration emerged as a policy alternative to these problems. In the
1980s, urban regeneration projects focused on the physical and economic revitalization of
dilapidated city center. However, since the 1990s across the Europe, the new approach to urban
regeneration appeared. It emphasized the environmental and economic perspectives, and more
integrated approaches to urban redevelopment. It related the stimulation of economic activities
and environmental improvements to wider social and cultural elements. In other words, urban
regeneration is a concept that emphasizes the comprehensive treatment to reviving the city’s
physical, environmental, industrial, economic social, and cultural sectors.

Actually, England is the country that pioneered the concept of urban regeneration. The
philosophy of urban regeneration in England is linked to the creation of “sustainable places where
people want to live, work, and raise a family”. The key recipe for successful urban regeneration
is the combination of (1) the enhancement of social and economic mobility, and (2) the
promotion of local values, and (3) the participation of the third sectors.

And now, as we live in this era, the advanced technologies should reduce many hurdles that we
used to face in regards to urban-related problems. This means building smart infrastructure.
Smart infrastructure leads to more cohesive community, reduces crimes, and creates more
efficient energy management system. Across various sectors including citizens services, economic
development, community, law enforcement, resource management, behavioral change and

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 health, among others can benefit from such infrastructure, and that is the social impact and urban
regeneration that we can expect from building a smart city.

2-2. Sustainable Economic Growth

Based on an innovation tech sandbox, the smart city project aims to build a sustainable smart city
in which citizens and local start-ups participate in developing the smart city and share ideas.

The word sustainable development emerged in the 1980s to include various aspects such as
economic, urban, rural, industrial, agricultural, technological. Then, sustainable development
was defined by the World Commission on Environment and Development, “Sustainable
development is development that meets the needs of the present without compromising the
ability of future generations to meet their own needs.” There have been research efforts to
identify indicators for sustainable development employed in Europe, which include
socioeconomic development, social inclusion, demographic changes, public health, climate
change and energy, sustainable consumption and production, natural resources, sustainable
transport, good governance, and global partnership. Sustainable development goals are deemed
to be interconnected and require an integration of thinking across all sectors of the city and
providing incentives for collaboration between national and international organizations as well
as citizens to participate in the sustainable development decision- making, policy-making, and
governance.

And Smart City can help overcome the limitations of traditional urban development that tends to
manage urban infrastructure systems in silos. By leveraging the pervasive character of data and
services offered by digital technologies, such as Cloud Computing, the Internet of Things, or Open
Data, they help connect different city stakeholders, improve citizen involvement, offer new and
enhance existing services, and provide context-aware views on city operations. Smart City
development is, however, highly complex, challenging and context-specific. The challenges
include different discourses used by technologists and policymakers, lack of capacity to connect
urban sustainability challenges to actionable approaches, and pressures on social and territorial
cohesion requiring unique governance solutions.

The areas where we can expect for improvements are (1) sustainable urban mobility, (2)
sustainable districts & built environment, and (3) integrated infrastructure and processes. First,
with sustainable urban mobility, we can use real-time road user information that enables people
to take informed decision about their mobility, saving time and energy. ICT based enhancement
of public transport is possible, which reduces waiting time as well as emissions, and facilitate
intermodal commuting. Second, with sustainable district & built environment, we can use smart
technologies for built environment to pursue better living, resource efficiency and waste
reduction. Sustainable districts are also one area of focus, which allows us to reduce emissions
and resource consumption by embedding integrated energy efficient technologies. And we can
also create communities of interest that can be key to support integrated SCC solution. Third is
integrated infrastructure & processes. We can build smart city platforms that allows real time
monitoring and preventive steering of cities. Intelligent city services is also possible, which allows
co-ownership of local matters and outcomes. Here, it al allows efficiency savings for city
administrations and stimulate involvement at local level. Smart grid is noteworthy here, because,
with collected information and insights, planners and managers can utilize such data and
information.

2-3. Connecting the cities: Cross-validation and sharing economy

The project will support citizens' participation, commercialization, and globalization. It will
promote global competitiveness by cooperating within the international cities.

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 The term “sharing economy” does not yet have a universally agreed definition. However, it
generally refers to organized interactions in which individuals or entities exchange with others
the untapped “surplus” or “idle” capacity of their assets, typically for some type of payment or
service. Three features distinguish the sharing economy from traditional markets or community
sharing practices: the use of digital technologies to match buyers and sellers, capitalizing on idle
capacity, and trust verification. The sharing economy is often used as a general term for new
business models or confused with similar emerging concepts such as the “collaborative economy”,
the “peer-to-peer economy”, the “gig economy”, the “on-demand economy” and “crowd
economies

The sharing economy has created a number of opportunities for smart cities in terms of improving
asset utilization and effectively reducing transaction costs and waste. Improving the use of assets
implies numerous positive consequences, for instance, energy saving and congestion decreasing.
While sharing goods and services in marketplaces has a long history, and old-fashioned face-to-
face sharing still happens in communities everywhere, Internet intermediaries can now support
these transactions and match supply and demand in real time on a large scale.

When the sharing economy is incorporated into the smart city, it can open up many different
opportunities. The sharing economy is driven by enabling technologies of digital connectivity,
which provide the foundation of these innovations in the sense that it allows immediacy. Real-
time information and knowledge gathered by individuals are key to tackling the inefficient use of
under-utilized assets and making a city “smart.”

There are three main areas where we can expect for improvements: technology, human factors,
and organizations. First, technology is based on using ICT to transform life and work within a city
in relevant ways. From the viewpoint of a sharing service, technology is critical for a city to
become smart since technology infrastructure significantly and fundamentally changes how
resources are shared within it.

Second, human factors from the angle of a sharing service highlights the role of human
infrastructure, human capital, and education in urban development. A smart city is a humane one
that offers multiple opportunities to exploit its human potential and help people lead creative
lives.

Third, organizations of smart cities focus on the support of government and policies for
governance, and comprises various elements such as smart community, smart government,
integrated and transparent governance, networking and partnerships. smarter government does
more than simply regulate the outputs of economic and social systems; it also interconnects
dynamically with stakeholders such as citizens, communities, and businesses.

3. Comparison
There are a set of parameters that a city has to follow in order to be considered a smart city:
technology, governance, policy, people and communities, economy, built infrastructure, and
natural environment. Having these in mind, the way how we develop the right framework for
Vietnam should take many factors into consideration.
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 In order to do so, we can look at the Western, Asian and South Korea’s approaches in how they
building their framework for a smart city, as summarized in Table 1.

Table 1. Different approaches of a smart city

Western Countries
Developing countries (Asia) South Korea
(Europe)
Private leadership Government leadership
Leadership by the central
Initiator (improving quality of (strengthening national
government
life) competitiveness)
Response to Climate Addressing Urgent Industrial structure
Purpose Change, Urban Urbanization Problems, centered shift,
Regeneration Stimulate the economy deregulation, job creation

As for Western countries, centered around Europe, private leadership with the goal of improving
quality of life is the initiator of the project. Their purpose is to effectively respond to the problems
of climate change and urban regeneration. In many Asian countries including China and India,
centered around developing countries, public leadership with the goal of strengthening national
competitiveness is the initiator of the project. Their purpose is to address urgent urbanization
problems, and stimulate the economy for further growth.
If we take an example of the recent case of South Korea, the central government seems to have
a full control of the smart city project. The Korean government launched a national smart city
pilot project in Sejong and Busan, which focused on building new city project by utilizing the
existing projects operated by the state-owned companies.

4. Governance
Vietnam is economically the fastest growing country in Asia, with more than 70% of the total
population being in their 30s or younger. Therefore, it is important to establish a PPP-based
(Public-Private Partnership) smart city business as a stepping stone to create a sustainable new-
growth economic system for the next generation. In the case of South Korea, the national smart
city industry is managed by the government, but various ministries and budgets are not
concentrated due to the oligarchical control from a specific group of ministries. In addition,
deregulation policies and public/privately-driven innovation ecosystem need to exist as they are
absolutely vital in the construction of smart cities, but the Korean government have not exactly
provided the necessary resources for such a system to thrive while overissuing capital, which
exposed problems in efficiency and economic feasibility. Therefore, Ho Chi Minh City is
recommended to aim to increase global competitiveness among small businesses by establishing
international innovation ecosystem, urban regeneration projects, and industry clusters.

The pilot project of the Ho Chi Minh Smart City Smart City can attract innovative companies
around the world including ones in Vietnam, and to present a business model for solving urban
problems. This will be a driving force for foreign capital, human resources, and technology to lead
smart businesses in Ho Chi Minh City. Although lots of smart city projects have been currently
ongoing around the world, the Vietnamese government and companies should take interest in
smart city businesses and innovation structure of Toronto to gain further insight. The Toronto
government has long provided the abandoned dockland (Quayside project) to Google in which
received $2 trillion worth of investment for various experiments. This action took in the major
innovation sectors of the Digital Economy and brought many start-ups/technology companies
from the USA and Europe. Universities in Toronto are experiencing a synergy effect of improving
the quality of R&D research while attracting talented students.

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 Ho Chi Minh City will be able to lay some economic groundwork in the short term through the
smart city pilot project which will be an example for the Southeast Asian region. In the mid to long
term.

In order to derive an effective and efficient solution, it is crucial to create a working organizational
and policy structure. To solve the problems that occur through the projects and achieve the two
propositions mentioned, it is necessary to utilise foreign capital, technology and human resources
since the national budget alone is difficult.

There are many parts that are not in compliance with the legal system of Vietnam such as various
services and technologies implemented in smart city. A smart city can be prepared for
deregulation, diverse support policies, and system mitigation to not only abide the by law but also
properly execute pilot projects. The method of the preparation is obtaining approval of special
laws regarding Smart City from the Smart City Steering Council. Also, a smart city requires support
from Smart City Working Group that produce master plans.

5. Closing
"The envisioned smart city project of 'Green Growth - Toward Net Zero' presents a transformative
opportunity for Ho Chi Minh City to not only enhance its urban infrastructure but also to make a
lasting positive impact on the environment and quality of life for its residents. By collaborating with
other global cities on this innovative initiative, Ho Chi Minh City can reap numerous benefits:

1. Environmental Sustainability: The focus on 'Green Growth' aligns with global efforts to combat
climate change. Implementing sustainable practices, such as renewable energy integration, efficient
waste management, and green transportation, will significantly reduce the city's carbon footprint
and improve air quality.

2. Economic Growth: Investing in a smart city framework attracts green technology companies,
fostering economic growth and job opportunities in the region. The city can become a hub for
innovation, attracting both local and foreign investment.

3. Improved Infrastructure: A smart city approach promotes the use of advanced technologies to
optimize urban infrastructure. Smart grids, intelligent traffic management systems, and efficient
water distribution can enhance the overall quality of life for residents.

4. Enhanced Quality of Life: 'Net Zero' policies can lead to cleaner air, reduced noise pollution, and
improved green spaces. This will contribute to a healthier, happier population and attract more
visitors and tourists.

5. Global Collaboration: Partnering with other global cities on this project fosters knowledge
exchange, best practice sharing, and collaborative problem-solving. Ho Chi Minh City can benefit
from the experience and insights of other cities on the same path. In particular, Ho Chi Minh City
recently participated in ‘the OXYGEN Summit Liverpool to collaborate with the global metropolitan
cities participating in ‘the Global TWIN CITIES Initiative’.

6. Resilience: A focus on 'Net Zero' will enhance the city's resilience against future environmental
challenges, reducing vulnerability to extreme weather events and ensuring a more sustainable
future for generations to come.

7. Positive International Image: Embracing 'Green Growth - Toward Net Zero' aligns Ho Chi Minh City

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with global sustainability goals. This positive image can boost the city's reputation on the
international stage, attracting attention and support from other nations and organizations.

In essence, Ho Chi Minh City's pursuit of a smart city project with a 'Green Growth - Toward Net
Zero' theme, in collaboration with other global cities, offers a unique opportunity to create a
thriving, sustainable, and resilient urban environment that benefits both the current and future
generations."

END

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