As Vietnam faces accelerating urbanization and the growing impacts of climate change, the need for sustainable, inclusive, and climate-resilient cities has become increasingly urgent. The Vietnam Sustainable Urban Development Forum 2025 gathered national and international stakeholders to address these pressing challenges. Through institutional reform, strategic planning, and global cooperation, the country aims to transform its urban landscape
As Vietnam undergoes rapid socio-economic transformation, its urban areas have emerged as central engines of growth, accounting for more than 70% of the nation’s GDP. However, this rapid urban expansion has outpaced the capacity of existing infrastructure systems, which are increasingly strained by the combined effects of climate change, demographic pressure, and systemic governance challenges. Annual losses from extreme weather events—such as tropical storms, flooding, saltwater intrusion, and landslides—continue to mount, underscoring the urgent need for resilient urban infrastructure capable of withstanding environmental shocks and fostering sustainable development.
In response to these growing challenges, the Ministry of Construction, in coordination with the Central Committee for Strategic Policy, convened the Vietnam Sustainable Urban Development Forum 2025 on November 5. Themed “Developing Smart, Sustainable, and Inclusive Vietnamese Cities,” the forum brought together policymakers, urban planners, international organizations, and development partners to deliberate on strategic reforms and policy instruments necessary for shaping Vietnam’s urban future.
Urbanization in Vietnam: Achievements and Complex Challenges
Deputy Minister of Construction Nguyen Tuong Van highlighted the pivotal role Vietnam’s urban system has played in the national development agenda. Over recent decades, urban areas have served as hubs of industrialization, innovation, and economic diversification. Recognizing the importance of planned urbanization, the Politburo in 2022 issued Resolution No. 06-NQ/TW, a landmark directive providing a comprehensive framework for the planning, construction, governance, and sustainable growth of urban areas.
Nevertheless, Vietnam’s urbanization journey is fraught with formidable challenges. While cities have expanded quickly, growth has been uneven, with wide disparities in infrastructure quality, access to services, and institutional capacity between regions. The rapid pace of urban sprawl has placed immense pressure on social and technical infrastructure, including transportation systems, water supply, energy grids, and affordable housing. Moreover, cities face heightened vulnerability to climate-induced disasters, exacerbating social inequalities and threatening long-term economic stability. Vietnam’s experience during the COVID-19 pandemic further revealed structural weaknesses in urban management, including health systems, data coordination, and disaster preparedness.
Nguyen Duy Hung, Deputy Head of the Central Committee for Strategic Policy, emphasized that while urban areas are key nodes of economic vitality, the system as a whole remains constrained by legacy issues. These include overlapping urban master plans, fragmented connectivity among urban regions, and the inability of central cities to effectively lead and coordinate regional development. Planning delays, project paralysis, and uncoordinated infrastructure investment remain common across urban jurisdictions, undermining public trust and leading to inefficient use of national resources.
Institutional Reforms and the Need for Integrated Governance
Mr. Hung stressed that reforming institutional frameworks is not only necessary but imperative for building urban environments that are intelligent, sustainable, and inclusive. He called for alignment between urban planning practices and Vietnam’s evolving two-tier local governance model, which distinguishes responsibilities between provincial and municipal authorities. A coherent, multi-level governance approach would enhance policy implementation, reduce institutional fragmentation, and promote a more efficient allocation of fiscal and human resources.
Furthermore, Mr. Hung advocated for a healthier real estate market that prioritizes the population’s housing needs while addressing entrenched issues such as land speculation, informal settlements, and unregulated construction. The integration of digital technologies, scientific innovation, and environmentally sound practices must become pillars of urban policy. Investments in green infrastructure, energy-efficient buildings, smart mobility systems, and inclusive digital platforms can help close the gap between growth and equity.
Spatial Reorganization: Streamlining Administration for Urban Efficiency
The ongoing administrative reorganization, outlined by Tran Quoc Thai, Director of the Urban Development Department, marks a significant milestone in Vietnam’s governance evolution. By 2025, the number of provincial-level units has been reduced from 63 to 34, including 28 provinces and 6 centrally governed cities. At the local level, over 10,000 communes, wards, and towns have been consolidated into 3,321 administrative units. This reconfiguration is expected to streamline government operations, reduce bureaucratic inefficiencies, and create new opportunities for regional-scale urban development.
This spatial restructuring also opens up possibilities for integrated urban-rural growth, where secondary cities and peri-urban areas play a more dynamic role in regional economies. Mr. Thai emphasized the need to align this administrative reorganization with improvements in urban planning, construction norms, and data systems. Specifically, he recommended the establishment of a national urban development database, interconnected with land use, population, investment, and infrastructure data, to enable evidence-based planning and enhance transparency.
To support this transformation, Vietnam must also engage more deeply in international cooperation, leveraging best practices in transit-oriented development (TOD), low-carbon urban design, and smart infrastructure systems. Building capacity at all levels of government—through training programs, digital literacy, and intersectoral coordination—will be essential to managing urban complexity in a rapidly changing global context.
Global Partnerships and the Role of Innovation
International delegates at the forum echoed these priorities. Thomas Gass, Ambassador of Switzerland to Vietnam, observed that while urbanization continues to drive economic growth, it also carries risks if not properly managed. He stressed that strong institutional frameworks are the foundation of sustainable urban systems. Reliable and transparent data can help policymakers develop coherent strategies, track progress, and build public trust. He also noted that inclusive innovation is essential—technology must serve people, particularly marginalized communities, and contribute to reducing inequality across urban populations.
Likewise, Mariam Jeanette Sherman, Country Director for the World Bank in Vietnam, Cambodia, and Laos, highlighted that the decentralization of administrative authority gives localities greater autonomy and financial capacity. This can be a double-edged sword: while it allows for more context-specific planning and investment in infrastructure, it also requires local governments to align their decisions with national priorities and resilience goals. Ms. Sherman reiterated the World Bank’s commitment to supporting Vietnam through resource mobilization, knowledge exchange, and implementation of best-practice solutions to ensure that Vietnamese cities become more resilient, competitive, and sustainable.
She emphasized that climate change has become a defining threat to Vietnam’s urban future. Extreme weather events, rising sea levels, and saline intrusion are not isolated occurrences—they are systemic challenges that demand an integrated urban response. Existing infrastructure, much of it outdated or poorly maintained, is no longer capable of protecting communities from environmental hazards. Thus, investments in climate-resilient infrastructure must be accelerated and prioritized as part of Vietnam’s national development strategy.
Strategic Outlook and Government Commitment
In his closing remarks, Deputy Minister Nguyen Tuong Van reaffirmed the Ministry of Construction’s dedication to working collaboratively with other ministries, regional authorities, and international partners to implement a synchronized set of policies and measures aimed at sustainable urban development. These efforts include revising and adapting the national urban-rural planning framework, enhancing institutional and policy coherence, and actively supporting urban governance reforms.
Looking ahead, the Ministry will focus on three key work streams:
- Establishing a national urban data platform to facilitate real-time decision-making and enhance planning accuracy;
- Promoting green cities and smart city initiatives, coupled with climate change adaptation strategies;
- Investing in human capital development and nurturing an ecosystem for urban innovation that supports the digital transformation of cities.
By aligning strategic governance reforms with environmental imperatives and technological advancement, Vietnam positions itself at the forefront of urban transformation in Southeast Asia. The path forward demands not only investment and institutional change but a profound rethinking of how cities are built, governed, and experienced in the face of an increasingly unpredictable climate and a rapidly evolving global economy.