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urban services

Efficient cities are crucial to Vietnam’s transformation into a high-income society

Axel van Trotsenburg's picture

A striking feature of Vietnam’s remarkable progress over the last few decades is the rapid pace of urbanization. In 1986, there were fewer than 13 million urban residents. Today there are 30 million. Cities have become strong growth poles, with urban areas growing twice as fast as the national average rate, and contributing over half of the country’s gross domestic product.  
 
The increasing importance of Vietnam’s urban areas in driving growth is not surprising. It is widely acknowledged globally that urbanization, if managed well, can lead to higher productivity and growth, through positive agglomeration effects such as larger, more efficient labor markets, lower transaction costs and easier knowledge spillovers. However, a closer look suggests that the current urbanization process in Vietnam needs a major rethink to ensure that it contributes fully to the goal of achieving a high-income country.
 
Vietnam needs to reshape its urbanization process to create more efficient cities – cities that have sufficient population densities, are well connected internally and regionally, and well managed. In addition, in line with Vietnam’s strong preference for social equity, cities will need to ensure inclusion of all residents, with no groups or area “left behind.”   
 

Cities and Their Underwear

Dan Hoornweg's picture

BoxersThe next time you're in a new city, maybe jet-lagged, try to wake-up early and take a walk: The earlier the better. Watch as the city wakes, the merchants restock their shelves and workers take away the waste. Street sweepers and garbage collectors take advantage of the quiet streets; people open offices and stores; the calm before the rush. Perhaps your hotel is near a market – check out how early the bakers and farmers start working. A few newspapers are still delivered before the sun rises.

While walking and watching the city wake, also look beneath your feet. There the pipes deliver water and gas; sewers take away wastewater. And if you’re in Europe most of the electricity is delivered through underground piping as well (strange how cities in the US and Canada, where hurricanes are common, have most power lines above ground, while Europe, with fewer storms but more concern for aesthetics, have most power lines buried).