Vietnam’s urban areas have increasingly demonstrated their role of late as a driving force and locomotive for the socio-economic development of regions and the country as a whole. At the Vietnam Urban Sustainability Summit 2025, held by the Ministry of Construction (MoC) in coordination with the Central Commission for Policy and Strategy on November 5 in Hanoi, Mr. Nguyen Duy Hung, Vice Chairman of the Central Commission, affirmed that sustainable urban development is not only an economic issue but also a political, social, and long-term security task. “Urban areas not only expand living space but must also aim to improve quality of life, protect the environment, and ensure harmony between people and the environment,” he added.
Current status
On January 24, 2022, the Politburo issued Resolution No. 06-NQ/TW on “Planning, construction, management, and sustainable development of Vietnamese urban areas by 2030, with a vision to 2045”. This was the Party’s first specialized resolution on urbanization and urban development, carrying significant meaning and playing an important role in the country’s socio-economic development to 2030 and beyond.
Following implementation, Vietnam’s urban system continues to develop strongly and exhibits many positive signs. Infrastructure is increasingly synchronized, and many cities have begun transforming under smart, green, and inclusive urban models.
Deputy Minister of Construction Nguyen Tuong Van said Vietnam’s urban system is increasingly asserting its role as a driving force for the country’s development, not only contributing to economic growth but also carrying profound political, social, cultural, and environmental significance. “2025 has been of special importance, marking many major events in the country, during which urban development entered a comprehensive innovation phase with the implementation of the two-level local government model - a major policy creating a turning point in urban governance and development in Vietnam,” he added. “It also marks ten years since Vietnam and the international community committed to implementing Goal 11 on sustainable urban development, one of the 17 United Nations Sustainable Development Goals (SDGs).”
However, despite these important achievements, Vietnam’s urban system faces major challenges in sustainable development. According to the World Bank, urban areas contribute more than 70 per cent of GDP in Vietnam and 90 per cent of new non-agricultural jobs, but most are located in areas vulnerable to natural disasters, with average annual damage reaching $3.75 billion.
Mr. Julien Seillan, Country Director of Agence Française de Développement (AFD) in Vietnam, underlined that climate change is a pressing reality for Vietnamese cities. Vietnam is among the countries most severely affected, with extreme weather events becoming increasingly frequent, intense, and damaging.
“Over the past five years, the country has faced a series of major natural disasters, showing that no region in Vietnam is spared from the impact of climate change,” Mr. Seillan said. “This recurrence of extreme phenomena underscores the urgency of shifting from crisis response to prevention, from reacting after each disaster to systematically anticipating and reducing risks through planning and investment decisions.”
Similarly, Mr. Tran Van Giai Phong, Senior Program Officer at the Embassy of Switzerland in Vietnam, said urban areas from the north to the south are constantly facing serious flooding, directly affecting people’s lives and essential infrastructure. “This shows that urban resilience is not only a technical issue but also closely related to community safety and socio-economic sustainability,” he added.
International experience
Within the framework of the Summit, representatives from international organizations made recommendations to Vietnam on sustainable urban development.
Mr. Seillan emphasized that urban development can no longer be separated from resilience. Every road, every piece of infrastructure, every new neighborhood, if properly designed and planned, can become a shield protecting communities from climate risks rather than a weak point during disasters. This is the vision the AFD and the EU seek to promote together with Vietnam: a model of urban development that is green, inclusive, and resilient.
Achieving this, he continued, requires integrating climate adaptation at the very heart of master planning, socio-economic development strategies, and investment programs. Reforms such as the new Law on Urban Planning, Resolution No. 06, and the recent administrative and territorial reorganization represent a crucial opportunity to embed climate risk management and flood simulation as standard requirements in planning practice.
Meanwhile, the EU plays an essential role in turning this vision into reality. Through the WARM Facility, the EU provides grant funding to complement AFD’s investment financing and MoC programs. Beyond WARM, the EU also directly finances grant components alongside the AFD’s sovereign loans under the CRUIV (Climate Resilient Urban Infrastructure) project in four localities. Thanks to these joint efforts, more than 12 localities are receiving technical and financial support to integrate climate adaptation and disaster risk management into urban planning and infrastructure investments, while also building the capacity of local institutions.
“This joint approach shows how international partners can support the government in implementing the new urban law and Resolution No. 06 by providing technical expertise and helping to operationalize the principles of integrated, risk-informed planning at both national and provincial levels,” Mr. Seillan said. “These contributions perfectly illustrate the spirit of Team Europe, acting together for greener, safer, and more resilient Vietnamese cities.”
Ms. Mariam J. Sherman, World Bank Country Director for Vietnam, Cambodia, and the Lao PDR, affirmed that the World Bank is committed to continuing to work closely with the government of Vietnam in key areas such as integrated planning, urban finance, sustainable infrastructure development, and green transformation. “Vietnam has a great opportunity to transform itself into a country with a dynamic, smart, and environmentally-friendly urban system,” she said. “Sustainable urban areas are not just a destination, but a journey that requires long-term vision, strong leadership, and commitment to cross-sectoral coordination. Vietnam has a good foundation, and the World Bank is ready to accompany it on that path.”
In addition, Ms. Sibylle Bachmann, Head of Cooperation at the Embassy of Switzerland in Vietnam, shared five lessons that can help make cities safer, greener, and more resilient.
Firstly, good governance is the foundation of resilience. Cities that are well governed recover faster, plan better, and protect their citizens more effectively. Infrastructure alone is never enough. Resilience depends on clear responsibilities, timely decisions, and consistent budgets for operation and maintenance. When coordination among agencies works, results last; when it does not, even well-built systems can struggle to deliver.
Secondly, planning must be adaptive and people-centered. Floods, storms, and urban pressures are changing faster than the plans made years ago. The most successful cities regularly review and update their plans, not only based on technical studies but also on the lived experience of residents. Local people are often the first to notice when drainage fails, transport breaks down, or new developments block water flows. Listening to these voices early and often helps avoid costly mistakes later.
Thirdly, digital transformation works when it starts with people. Around Vietnam, cities are introducing digital platforms, mapping tools, and data systems to improve management. These are powerful enablers, but technology alone does not guarantee success. “For example, I saw maps that informed me about road closures during the recent floods in Hanoi,” Ms. Bachmann said. “However, they were not complete, and not everyone was aware of their availability. Digital transformation only works when it is guided by clear rules, common standards, and trained people who know how to use the tools for public benefit. It’s also important that data is used collaboratively so it is useful to many. The human factor, including leadership, collaboration, and accountability, is what makes data truly meaningful.”
Fourth, financing resilience means looking beyond construction. Many of today’s achievements come from major infrastructure investments, but the real challenge begins after a project is completed. Maintaining infrastructure, updating management systems, and ensuring that funds are available for repairs and upgrades are what make a city truly resilient. Financing resilience is not just about new projects; it’s about sustaining what already exists. It requires coordination between local budgets, national transfers, and, where possible, private participation.
Finally, human capacity is the strongest form of resilience. Vietnam’s leaders at national and local levels have shown an outstanding commitment to learning and innovation. Switzerland has supported this process by facilitating exchanges and study visits for Vietnamese officials to several partner countries, including Switzerland, to share experiences on urban governance, digitalization, and climate adaptation. “These exchanges have shown that even Switzerland must learn to cope with new realities such as AI, climate change, or declining budgets,” Ms. Bachmann noted. “These exchanges have shaped new policies and driven real-world solutions in areas such as urban resilience and disaster risk reduction. The more we invest in people, the more sustainable every reform and project becomes.”
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