HCMC and Hanoi dominate top positions in JLL’s City Momentum Index
The JLL City Momentum Index once again named Vietnam’s biggest economic hubs in the top ten most dynamic cities globally
Vietnam, 22 January 2020 - Ho Chi Minh City and Ha Noi continue to lead the momentum in SEA, raking third and seventh respectively among the most dynamic city in the world. This is according to the latest JLL (NYSE: JLL) City Momentum Index, now in its seventh year.
The results show a continued shift in global influence from west to east, with Indian, Chinese and Vietnamese cities dominating the top positions. Vietnam – with two cities in the top 20, the most of any country in the SEA region – featured highly in the global ranking. This is driven by soaring exports to the US as Vietnam’s economy profits from the China-US trade disputes, which is forcing companies to shift their supply chains.
Jeremy Kelly, Director of Cities Research at JLL, says: “The remarkable dynamism in the emerging Asian economies is proof that economic reforms, business growth and infrastructure investment can drive the expansion of industry, significantly in the tech sector, and facilitate a start-up culture. This is now being repeated the world over, as geographical diversity looks to be returning to the Index.”
The Index combines socio-economic and commercial property metrics of 130 markets to identify the world’s most dynamic urban centers. The Index identifies a number of key growth drivers, including talent attraction, the expansion of innovation hubs and better urban planning, that cities can employ to meet the challenges faced by rapid momentum.
Over recent years, Vietnam has entered a journey of international integration and creating an export-driven economy. Securing a large number of FTAs has set Vietnam up for a partnership with 60 countries worldwide, and support Vietnam on its path to become the new global manufacturing hub. These successful trade pacts are also expected to boost Vietnam’s GDP by 2.18%-3.25% annually by 2023 and by 4.57%-5.30% annually between 2024-2028.
Stephen Wyatt – Country Head of JLL Vietnam, comments on the achievement: “This has strengthened Vietnam’s leading momentum in South East Asia, with Ho Chi Minh City (3rd) and Ha Noi (7th) retaining their status as the top two cities leading the Index and are set to have among the highest economic growth globally over the next several years.”
However, rapid urbanization and strong economic growth in Vietnam are putting huge pressure on existing infrastructure. While many other cities are struggling to keep pace with the growing demands for high-quality transport and utilities, both Ho Chi Minh City and Hanoi are responding to the infrastructure deficit by investing heavily in new metro networks to create large, commuter-intensive public transport systems. A new Long Thanh Airport is also being constructed in Ho Chi Minh City to supersede Tan Son Nhat as the city’s international airport.
In response to demographics growth and the need for quality of life enhancement, smart-city technologies is presented as an appropriate measure to improve city’s efficiency, livability and sustainability. In Vietnam, Ho Chi Minh City and Hanoi are pushing smart cities initiatives and districts to promoted sustainable development. This has attracted foreign investors such as Sumitomo, Lotte Group, and ABB Group. Notable development in progress include Eco Smart City in Ho Chi Minh City and BRG Smart City in Hanoi.
“One common ingredient when looking at cities that succeed at rapid-growth is the importance placed on governance and leadership – something often overlooked. The complex nature of city transformation relating to the innovation economy, climate mitigation and a changing geopolitical world means a city’s governance system is increasingly critical to a city being ‘future-fit’ for the coming decades,” says Kelly.
“JLL expect Vietnam’s fastest growing cities to maintain the level of interest from overseas investors, and continue on its growth trajectory, particularly with the help of government policy to resolve infrastructure deficit and city sustainability”, concludes Stephen.
For more information, please download JLL City Momentum Index here.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.