Smart cities gaining attention and FDI in age of globalization

Investors will consider smart cities a factor when making investment decisions in Vietnam, the Smart and Sustainable Cities Forum held by RMIT University heard.

Sustainable smart city initiatives, with the goal of establishing a healthy balance between economic, social, and environmental factors, will be an important criterion in new FDI investments, according to Mr. Bui Thanh Tuyen, Technical Director and Senior Advisor of international engineering advisory company Aurecon Vietnam.

Though Vietnam has been an attractive FDI destination in recent times, it has entered into a new era of globalization that requires a different approach to maintain its attractiveness among international businesses, according to Dr. Erhan Atay, Senior Lecturer and Senior Program Manager for the International Business Program and Master of International Business at RMIT University.

The new globalization model, which focuses on providing integrated and intangible digital services, is becoming a new trend called “digital globalization”. As a result, Vietnam should accelerate investments in sustainable smart cities to attract more foreign investment, and above all provide a high quality of life for the people, Dr. Atay suggested.

It should also focus on solutions such as wireless networks, smart water and energy management, wastewater recycling, smart transportation systems, automated parking management, and the like, Mr. Tuyen added.

Sustainable smart cities will also have to rely more heavily on digital and electric power. The country should accelerate the application of technology to three times the current rate in electrification, decarbonizing power generation, and efficiency improvements, according to Mr. Dong Mai Lam, Cluster President at Schneider Electric in Vietnam & Cambodia.

Currently, Ho Chi Minh City, Hanoi, central Da Nang city, south-central Khanh Hoa province's Nha Trang city, and southern Binh Duong province are implementing administrative reforms to launch and accelerate smart city projects. Sustainable smart cities need to be places that enable the transfer of data, technology, ideas, and best practices, while providing a sustainable and livable environment, Dr. Atay said.