Vietnam’s economic transformation over the last 3 decades has been a remarkable success story.
The country has gone from one of the poorest in the world to a thriving lower middle-income economy. This is thanks to comprehensive economic reforms and rapid structural transformation from an agriculture-based economy to industrialization (Open Development Vietnam, Economic and Commerce, 2021).
With investments in infrastructure, technology and sustainability, the country presents exciting opportunities for collaboration and innovation. Here are 5 reasons why.
Rapid urbanisation and the need to enhance the resilience of cities
Vietnam’s urbanisation rate was estimated to be around 40.6% last year. The country’s urban population is projected to continue growing, with the urbanisation rate expected to exceed 50% by 2030 (The Voice of Vietnam, Vietnam’s urbanization ratio to exceed 50% by 2030, 14 October 2024).
Ongoing urbanisation is expected to place greater demands on major cities to deliver essential services and improve liveability. This will drive increased investment in smart solutions in transport, housing, digital systems and services.
By 2050, 39% of Vietnam’s GDP will be exposed to the physical risks of climate change, such as floods, storms, wildfires and sea-level rise (S&P, Weather Warning: Assessing Countries’ Vulnerability To Economic Losses From Physical Climate Risks, April 2022). This heightened risk is spurring investment in smart city solutions that enhance the resilience and preparedness of its cities and towns to climate risks.
Strong government commitment
Vietnam’s National Digital Transformation Program (Decision No. 749/QD-TTg) targets a 30% digital economy contribution to GDP by 2030. (VnEconomy, 41 cities and provinces to implement smart city projects, November 2021).
The Smart City Development Plan (Decision 950/QD-TTg) is also supporting over 40 smart city pilot projects nationwide.
Vietnam’s fast-growing cities are looking for smart infrastructure, transport and housing.
Sustainable energy transition
The National Power Development Plan VIII aims to increase renewable energy’s share in the country’s power mix from 26% in 2024 to 67.7–71.5% by 2050. Vietnam aims to develop 6,000 MW of offshore wind capacity by 2030, creating opportunities in wind energy, grid digitization and battery storage (The Investor, Vietnam targets 6,000 MW offshore wind power in 2030-2035, 5 March 2025).
Massive smart infrastructure expansion
Vietnam’s infrastructure sector grew 11.5% in 2024, valued at A$11.2 billion (Fitch Solutions, Vietnam Infrastructure Report Q4 2024).
Key projects included:
- 3,000 km of expressways by 2025
- Ho Chi Minh City and Hanoi metro expansions
- Long Thanh International Airport (A$23.5 billion investment)
Smart mobility solutions, IoT traffic management, and energy-efficient transport are in high demand.
Vietnam Smart Cities Virtual Landing Pad Bootcamp
Austrade is running a Vietnam Smart Cities Virtual Landing Pad Bootcamp from 2–24 April 2025. Delivered in collaboration with New Energy Nexus Vietnam, this free online program is designed for Australian smart cities startups and scaleups. The program aims to:
- help participants to develop a practical Vietnam market entry plan alongside a cohort of selected national peers
- gain valuable knowledge and skills to succeed in Vietnam
- receive access to downstream programs, potential partnerships and funding opportunities.
Express your interest in the program, or contact Trang Vũ, Landing Pad Manager or Do Cong Nguyen, Senior Business Development Manager for more information.
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