Smart cities are being built in many locations across the country, in particular Hanoi, Ho Chi Minh City, Danang, Binh Duong, and Nha Trang.
The biggest project so far is the Smart City project in the north of Hanoi, developed by BRG Group in a joint venture with Sumitomo Group from Japan. With investment capital of more than $4.1 billion, the 272-hectare smart city will offer future residents full benefits stemming from the synchronous development of modern and sustainable infrastructure and socioeconomic development.
Together with community-oriented facilities, the project will also compile a detailed plan on the application of smart technologies such as 5G, facial recognition, and blockchain, which will contribute to improvements in services in the capital.
The Smart City project by BRG-Sumitomo held its groundbreaking ceremony last October and is being divided into five phases. The project is currently in its first phase, over a 73ha land plot with investment of VND12.9 trillion ($560 million). The entire project is expected to be completed in 2028.
The second-largest venture in Hanoi belongs to Tan Hoang Minh Group, with Xuan Mai Smart City located in Chuong My district. With the investment capital of $3.5 billion and being built over 3,000ha, Xuan Mai Smart City will become a modern smart city composed with environmentally-friendly facilities.
Tan Hoang Minh Group announced that it would apply new solutions on AI, IT, and green re-use technologies into the management of the project. Last year, the group signed an MoU with a range of sub-investors to co-develop the project, including Sein I&D Vietnam, The Korea Water Resources Corporation, Seoul Housing and Communities Corporation, and Korea Overseas Infrastructure and Urban Development.
Meanwhile Vingroup launched its Vinhomes Smart City last year in the capital’s South Tu Liem district. The venture will follow the models of successful smart urban areas such as those found in Singapore, Songdo of South Korea, and Fujisawa in Japan. The project consists of 58 high-rise residential buildings based on the four key pillars of smart security, smart management, smart community, and smart home.
Vingroup plans to hand over the first building, Sapphire 1, next month, with the following three buildings hoped to be handed over next year.
Slower progress has been made in parts of Ho Chi Minh City, meanwhile. Despite $900 million being pumped into an eco-smart city by Lotte Group, three years have gone by without new work being carried out due in part to the auction process.
While a representative from Lotte Asset Development – Lotte Group’s arm in charge of the project – declined to comment on the situation, a source from Ho Chi Minh City said that the green light has in fact been given for continuation of the venture.
In a recent meeting with the prime minister, Chairman of Ho Chi Minh City People’s Committee Nguyen Thanh Phong said that the committee is keeping its promise to allow the Lotte consortium to be appointed as the investor of the project without any proceeding auction. Approval is soon expected by the city committee in order to support efforts of the foreign investors so far.
Located in the heart of the New Thu Thiem Urban Development Area, Lotte’s eco-smart city will apply IT solutions in management, and provide more than 12,000 units to the market upon completion.
Ho Chi Minh City People’s Committee is also proposing to set up a new city, provisionally called Thu Duc City. By combining districts 2, 9, and Thu Duc, the initiative expects to set up a smarter and high-tech location that can attract both international and domestic investment into the area.
However, many issues have still to be ironed out before official decisions and further progress can be made. With the concept of “a city in a city” for Vietnam, a synchronised master plan and correct financial resources are vital for the scheme to succeed.
Elsewhere, in the central city of Quy Nhon in Binh Dinh province, FPT Corporation is setting up an AI centre in order to prepare human resources for a smart city in the province at a later date.
The AI centre in Quy Nhon will create a technology hub for the central province and beyond. It will be a magnet to attract not only foreign and domestic experts into the area but also attract an investment wave from startups, investment funds, and other financial institutions into Quy Nhon.
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