Binh Duong’s new Provincial Administrative Center (Photo: VNA)

Binh Duong’s smart city model has been the most successful example of public-private partnerships and innovation-driven urban development in Vietnam. Launched in 2016, it focuses on economic transformation through innovation and digitalization.

Although its success is attributed to its "Triple Helix" model of cooperation among government, businesses, and academic institutions, the decisive factor has been the way it has put this model into practice to ensure that innovation serves the community’s evolving needs, said Pham Thuy Linh, Director of the R&D Institute of the Becamex Investment and Industrial Development Corporation and Deputy Director of the Binh Duong Smart City Office.

“Binh Duong gives top priority to human development in line with the motto ‘Putting people at the center, taking innovation as the driving force, and using the smart city as the core of socio-economic development,’” said Linh, adding, “From other successful models, Binh Duong and Becamex have learned to connect three stakeholders –government, businesses, and academia. The government bases policies on real needs and promulgated policies serve the real needs of communities. That’s the essence of connection.”

Binh Duong’s Intelligent Operation Center (IOC) (Photo: VNA)

According to Linh, Binh Duong gives great importance to sustainable urban development, promoting clean and renewable energy, smart manufacturing, and community-centered digital transformation.

Its approach includes investment in education, human resource development, and social equity to ensure inclusive growth without leaving disadvantaged groups behind. 

“Schools, universities, and research institutes play a crucial role in supplying high-quality human resources to meet the needs of businesses and the government. Once all the three sectors work in tandem, the development cycle is secured,” Linh noted.

The story of Binh Duong shows how integrated efforts can foster sustainable, smart urban growth that benefits citizens and attracts investment.

Inspired by such success stories, Vietnam is poised to accelerate its smart city ambitions, moving from pilot projects to broader initiatives. Vietnam has passed the initial stage of research and shaping a legal corridor and how has a foundation for building smart cities.

From now to 2030 will be a breakthrough time for smart city investment, driven by rapid urbanization, a growing middle class, and 80% internet penetration.

The demand for efficient infrastructure and public services is at an all-time high, creating unprecedented opportunities for domestic and foreign players.

Industry leaders and experts at the Austrade Smart City Focus Group echoed this optimism, highlighting the challenges and the transformative potential ahead.

Mandy Nguyen, Operations Director at the Startup Vietnam Foundation, said that the concept of a ‘smart city’ was developed with the expectation that it would go beyond being just a digital city.

“A true smart city should also be a green city and a knowledge city. It must serve as a platform that integrates technology, supports sustainable development, protects the environment, and promotes knowledge sharing among all stakeholders,” Mandy Nguyen added. “In this sense, the expectations for a smart city are much higher than for a merely digital city. It’s not just about technology, but about a broader set of values that truly embody the meaning of ‘smart’.”

A truly smart city must address basic needs – housing, jobs, food security – and improve the quality of life of all citizens, not just deliver flashy tech. Smart cities are the backbone of Vietnam’s digital economy, which is projected to contribute up to 30% of GDP by 2030.

But Le Hong Minh, CEO of the I.Value Corporation, raised an issue that in many current smart city projects, the value design and service or product design haven’t truly been studied for the actual end users.

“Who are the customers? What are their behaviors? What do they want? These things have not been properly assessed. If we don't start from the real and basic needs of the customers, then all the technology applications are just a flashy shell that fails to create lasting value," said Minh.

The UDI Maps app and My Parking app in Ho Chi Minh City (Photo: digital.fpt.com)

Vietnam’s cities account for 70% of its CO2 emissions. Smart technologies – like real-time pollution monitoring and energy management – are vital to achieving Net Zero Emissions by 2050. Digital platforms can revolutionize public services, making them more inclusive and efficient.

According to Tran Van Khanh, Digital Channel Marketing Manager for Schneider Electric Vietnam, there are two key issues when it comes to smart city development in Vietnam.

“First is strategy, whether the government mandates it or leaves it up to the individual corporations. Second is budget. Going digital often requires higher upfront investment,” said Khanh.

He took a building, for example: implementing digital systems can increase initial costs by 20 to 30%, so developers are naturally cautious.

“But we advise them to consider long-term operations. Over 20 to 30 years of use, operational costs can be substantial, and digital systems can significantly reduce expenses, especially in energy, labor, and overall efficiency. In short, the two main challenges are strategy and hesitation over initial costs,” said Khanh.

The planning of Thanh Da Peninsula in HCMC (Photo: enCity)

Smart systems for disaster response, flood monitoring, and emergency management are critical as cities face increasing environmental risks.

Cao Hoang Hai, Operations Director and environmental engineer for enCity, an international urban solution provider, took the planning for HCMC as an example.  

“The first issues to be addressed in urban planning for Ho Chi Minh City, for example, are urban flooding and smart mobility. ….We’ve divided the city into four adaptation and mitigation zones, with development regulations for each to minimize concrete density and enhance green coverage across the city,” said Hai.

Although numerous challenges remain as Vietnam builds a network of smart cities, these challenges offer the country new opportunities.

The success of Binh Duong’s “Triple Helix” model is an encouragement for other provinces. Expanding the model to include the community will ensure that smart city development is inclusive and people-centered.

A corner of Da Nang city at night (Photo: baodanang.vn)

Hanoi, Ho Chi Minh City, Quang Ninh, Hai Phong, and Da Nang are considered the five locomotives that will take the lead in implementing the smart city model in the next five years.

Vietnam’s journey toward smart cities is just beginning. By focusing on sustainability, inclusivity, and cross-sector partnerships, it can create urban environments that are smarter, more livable, more resilient, and more equitable.