Creating greener, more sustainable cities

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Urbanization and digital transformation in Vietnam are progressing rapidly, making cities a crucial driving force in economic and social development. However, this rapid pace of urbanization also brings many challenges: overloaded infrastructure, environmental pollution, increased risk of natural disasters, and climate change. These issues demand a new mindset, innovative approaches to planning, construction, governance, and urban development models.
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On November 5th, the Ministry of Construction organized the Vietnam Urban Sustainable Development Forum 2025. At the forum, experts discussed: solutions to improve the efficiency of urban planning, management, and operation; mobilizing and allocating resources for green and smart urban development; policy mechanisms for urban digital transformation; modern urban development management models; solutions for adapting to climate change, preventing and mitigating natural disasters, and reducing emissions; and linking urban development with rural development.

THE URBANIZATION PROCESS STILL FACES MANY CHALLENGES

Over the years, urban areas have increasingly demonstrated their role as a driving force and engine of socio-economic development for regions and the entire country, contributing approximately 70% of the national GDP.

Speaking at the forum, Deputy Minister of Construction Nguyen Tuong Van assessed that Vietnam’s urban system has been playing a driving role in the country’s construction and development, not only making significant contributions to economic development but also holding an important political, cultural, social, and environmental role. However, alongside these very important development achievements, Vietnam’s urban system is also facing major challenges such as: rapid but uneven urbanization; pressure on technical and social infrastructure, environment, and housing; the increasingly evident impact of climate change, natural disasters, and epidemics; and the need to transform the development model based on innovation and digital data…VnEconomy

Further analyzing this situation, Mr. Tran Van Giai Phong, Senior Program Officer at the Swiss Embassy in Vietnam, stated: “Cities from North to South are constantly facing severe flooding, directly affecting people’s lives and essential infrastructure. This shows that urban resilience is not just a technical issue but also relates to community safety and socio-economic sustainability.” He emphasized five priorities: strengthening management and coordination; putting people at the center; ensuring sustainable financing; developing human resources; and transforming knowledge into systemic capabilities.

Also speaking about urban flooding, Mr. Pham Doan Khanh, Deputy Head of the International Cooperation Department, Department of Dike Management and Disaster Prevention (Ministry of Agriculture and Rural Development), acknowledged the reality of urban flooding in the central coastal provinces due to low-lying terrain, unusually heavy rainfall, and ineffective urban development management. Historical floods such as those in 1999, 2020, and recently have caused severe damage to people and property. He proposed a group of solutions including: upgrading drainage systems, increasing permeable surface area, strictly managing land use, developing green spaces, strengthening early warning systems, and educating the community to improve response capacity.

Meanwhile, Sabina Stein, Head of Governance and Engagement at the United Nations Development Programme (UNDP), noted that cities like Hanoi, Ho Chi Minh City, and Da Nang are facing extreme heat, air pollution, and increased flooding. Vulnerable populations include outdoor workers, the elderly, people with underlying health conditions, and people with disabilities. According to the Provincial Governance and Public Administration Performance Index survey conducted by the UNDP, public confidence in effective environmental governance is trending downward.

PUTTING PEOPLE AT THE CENTER OF DEVELOPMENT

Based on this, Sabina Stein recommends that cities should integrate community voices into policy planning and prioritize solutions that ensure equity in climate adaptation.

From the perspective of planning and institutional experts, Antonie Mougenot of the French Development Agency (AFD) argues that many cities are currently developed based on outdated climate data, no longer suitable for extreme rainfall and sea-level rise. AFD proposes mandatory hydro-hydraulic simulation in planning, updating building standards to reflect new climate scenarios, integrating land, water, and infrastructure management, and establishing a unified data platform across ministries and agencies. “Resilience begins with planning, and planning must begin with risk identification,” said Antonie Mougenot.

Focusing on climate finance, Steven Louis Rubinyi, Senior Specialist in Disaster Risk Management at the World Bank, stated that urban areas contribute over 70% of Vietnam’s GDP and 90% of new non-agricultural jobs, but the majority are located in areas vulnerable to natural disasters. Average annual losses amount to $3.75 billion. Experience from the climate-resilient urban development project in Can Tho shows that flooding duration has been reduced by 60% thanks to investment in climate-smart infrastructure.

Steven Louis Rubinyi proposed expanding concessional funding, labeling budgets with climate data, and integrating disaster risk assessments into all public investment decisions.

At the forum, experts unanimously agreed that climate-resilient urban development is a long-term and urgent task. Vietnam needs to improve its institutions, ensure sustainable financing, enhance human resource capacity, and promote the application of science and technology. In particular, it needs a shift in mindset, planning methods, governance, and urban development models… in order to build a safer, greener, and more sustainable urban system in Vietnam for the future.

“The quality of urban life is not only measured by income or material amenities, but also by a safe, clean, civilized, humane, and creative living environment. To achieve this, we must shift from “development management” to “development governance”; from “supply-based planning” to “need-based planning and living values.” Planning is the “language of the future,” while governance is the “method to turn planning into reality.” Without a good planning vision and effective governance mechanisms, urbanization can lead to fragmentation, loss of identity, and unsustainability – something many countries are paying the price for,” emphasized Ms. Tran Thu Hang, Director of the Planning and Architecture Department, Ministry of Construction.

Theo Phan Dương / Vneconomy

Vneconomy

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