February 24, 2024

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Ho Chi Minh City, Vietnam Aims to be a Smart City by 2025

Nguyen Thanh Phong, the Chairman of the city People’s Committee, recently announced that the city would focus on the research and development of artificial intelligence (AI) applications in HCM City to become a smart city over the next few years.

Under the programme to become a smart city by 2025, a database of all sectors, ranging from housing, transport, and environment to healthcare, will share data with all of the city’s administrative departments. This will help social organisations, businesses, and residents have better access to public information and services online through mobile devices and other means, according to Phong.

A press release informed that the city will also focus on developing AI technologies and improving human resources by using AI in education and training and enhancing academic connections with foreign AI professionals. Additionally, an innovative urban area in the eastern part of the city will be built. The city has already approved the establishment of Thu Duc New City by merging the three eastern districts of 2, 9, and Thu Duc.

The new city will cover more than 211sq.km and be home to more than 1.1 million people. It is expected to promote economic growth in the city and the southern region. It will serve as a centre for three main functions: scientific and technological research and application; education and training of high-quality human resources; and the production and trade of hi-tech products and services. It is expected to contribute a third of the city’s GDP, accounting for 7% of the national GDP.

The city has been working on the eastern innovative urban area project, including the Thu Thiem New Urban Area in District 2, the Northwest urban area, and the Can Gio sea tourist urban area, according to Phong. He pointed out that the city needs more capital for public investment in infrastructure. For example, from 2016-2021, the city needed VNĐ302.8 trillion (about US$13 billion) to implement nearly 1,950 public transport projects, but the city only managed to allocate about half of that amount.

The city has asked the central government to raise the budget-revenue retention ratio to 24% in the 2021-2025 period, and 33% in the 2026-2030 period. The latter ratio was granted to the city back in 2003. The ratio refers to revenue that the city gives to the central government. The new ratio will ensure that the city will achieve sustainable development Phong claimed. With a population of 13 million, HCM City, as the nation’s economic locomotive, contributes 24% of the country’s GDP and 27% of the national budget.

Phong also announced that two transport projects worth more than VNĐ12 trillion (US$521.8 million) have been approved. These include the An Phu Intersection in Thu Duc New City and the renovation of Tham Luong, Ben Cat, and Nuoc Len canals, to be implemented from now to 2025.

It will cost VNĐ3.926 trillion (about US$170 million) to build the An Phu intersection, including VNĐ1.8 trillion (about US$78 million) from the central State budget and VNĐ2.126 trillion (about US$92 million) from the city budget. The three-level intersection will have overpasses and a tunnel. It will start from the approach road to the HCM City-Long Thanh-Dau Giay expressway and end at the Luong Dịnh Cua Street, which is often heavily congested.

Additionally, the upgrade of the canals will need VNĐ8.2 trillion (about US$355 million), including VNĐ4 (about US$173 million) trillion from the State budget and VNĐ4.2 trillion (about US$182 million) from the city budget. The 32km-long project goes through District 12 and Binh Tan, Tan Phu, Tan Binh, Go Vap, Binh Thanh, and Binh Chanh districts. It is expected to help reduce flooding in the central business district and the northwestern part of the city. It will also improve waterway connections between the city and southern provinces.


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