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Urban Development

Vietnam Can Lead ASEAN through the Smart Cities Network Vision

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When Vietnam takes over the ASEAN chairmanship in 2020, the country outlined five priorities to be executed throughout the year. Among all, strengthening the institutional capacity of ASEAN and leveraging the Industrial Revolution 4.0 to address inequality, are the most challenging goals to be realized within a year. Other scholars such as David Hutt, meanwhile, even pointed out that Vietnam’s most important goal is to secure a united stand on the Code of Conduct to be negotiated with China this year ⸺ a consensus that if achieved, will ensure any agreement regarding the contentious South China Sea dispute to be mutually favourable for all the disputants involved. 

That said, the unexpected outbreak of the COVID-19 has greatly disrupted Hanoi’s initial ambitions to drive the ASEAN agenda into new heights. Not only the global pandemic postponed the regional bloc’s summits and meetings to later dates, it also compelled leaders of all ASEAN countries to devote great focus on this outbreak at the ASEAN level. While the online Special ASEAN Summit last April was able to result in a joint statement to address the COVID-19 pandemic under the chairmanship of Vietnam, it was by no means, adequate for the country to play an active role as the ASEAN’s driver this year. Given the COVID-19’s disruption to ASEAN’s annual meetings and summits, it is not hard to see why Hanoi is seeking to extend another year of its chairmanship despite this may clash with Brunei’s preparations as the next chairman of the Southeast Asian bloc.

Utilizing Confidence Gain in COVID-19 Response

As the country which managed to control COVID-19 and keep it to an excessively low number of transmitted cases, Vietnam has gained an unprecedented confidence among its ASEAN peers as well as those outside of the region. As highlighted by Coleman and Sheehan, Vietnam became a new model of how a developing country can respond to COVID-19 without devoting mass resources for the purpose. Dubbed as low-cost COVID-19 strategy as coined by different scholars, the Vietnamese success stemmed on its abilities on three fronts: mobilizing all segments of society in responding to the crisis, initiating early prevention measures (mask-wearing policy, targeted testing, contact tracing and quarantine) and utilizing different technologies (website and app) for public communication.

With such coordinated measures, Vietnam has cast itself as an exemplary model in controlling the pandemic despite not having colossal resources in conducting mass testing and epidemic surveillance of South Korea, China and Singapore. As a matter of fact, the Vietnamese COVID-19 response model is a highly attractive model which can be readily emulated by other developing countries with limited resources at hand. Within ASEAN, the Vietnamese model can be replicated in Cambodia, Laos and Myanmar ⸺ countries that would need effective COVID-19 response strategy without their governments devoting huge costs for it. By occupying the ASEAN chairmanship status, its COVID-19 success resonated confidence from the whole regional bloc on its ability to play a leading role in this testing time. To take it further, such gain of confidence within ASEAN, should be further capitalized by Hanoi to implement regional agendas that would bring pragmatic returns to all member states in the short-run.

Pushing for Short-Term Goals within ASEAN Smart Network Cities (ASNC)

With the COVID-19 pandemic yet to be effectively controlled around the world and has the capacity to recur in the near future, no one knows how much longer would the restarted economies in the bloclast. This situation, in turn, made the ASEAN Smart Cities Network (ASCN) as reached by the Southeast Asian bloc in April 2018, an ever more important priority for immediate implementation. From Anbound’s observations, there are two reasons for such urgency.

First, with COVID-19 vaccine yet to be developed at least not in the immediate future, reduction in face-to-face engagements has become a norm of human interactions. As such, there is no other choice for ASEAN players, whether they are the governments, businesses and average citizens, but to adapt to this new norm in their daily activities. By pushing for the immediate implementation of the ASCN, Vietnam will be able to utilize technology to rejuvenate the economy and improve the lives of ASEAN citizens in the post-pandemic era.

By all means, this will establish Vietnam’s legacy as the chairman that brings ASEAN out of the socio-economic crisis that was brought by the COVIS-19 pandemic. Considering that the 36 cities have planned their strategic projects within the Smart City Action Plans document, what Hanoi could do is to call for an online meeting with the respective national leaders and relevant city mayors, and designate certain short-term goals to be realized by the end of 2020. These goals can be any easier and achievable goals in the three pillars of technological utilization, industrial automation and digitalization of economy.

Second, similar to becoming a model for COVID-19 response, Vietnam could also become another model of smart cities for the lower developing peers in ASEAN. In the course of adapting smart cities vision to its local conditions, Hanoi can share with their peers on how to kick-start smart cities governance in three different cities with three distinctive needs, namely, Hanoi, Ho Chi Minh City and Danang. As a latecomer to the smart cities game, these three Vietnamese cities have demonstrated their capabilities to prioritize smart solutions according to their local needs instead of developing all sorts of smart solutions in their localities.

Whereas Hanoi had started the iParking app for drivers and looking to venture into smart solutions in healthcare, education, transport, and tourism, Danang planned to become a green city through the adoption of smart solutions. As such, the latter’ had begun developing its natural disaster management systems that set it apart from Hanoi and Ho Chi Minh City. As for the southern city of Ho Chi Minh, it is planning to become the first smart city of Vietnam and placed emphasis on attaining five capabilities for achieving a comprehensive smart city: development of cloud computing infrastructure, utilization of Big Data, building of data centres, erection of security centres, and establishment of an open data ecosystem. Without question, the cost-effectiveness approach of these three Vietnamese cities, is highly relevant to those lower developing peers in ASEAN in which limited resources are available for them.

An Opportunity Not to Be Missed

Within the ASNC vision, Vietnam is provided with an opportunity (not to be missed) in leading ASEAN toward the next stage of economic development. While it may want to gain specific achievements in the other areas of South China Sea issue and ASEAN’s institutional capacity, realizing these goals requires a lot of diplomacy with the other nine member states. With a little more than half year left, it is still challenging for the country to achieve these goals despite it is not an entirely impossible endeavor to start with. Pushing for short-term goals within the ASNC vision, meanwhile, will help Vietnam to get quick result and one that is also vital for the new course of ASEAN’s economic development.

ANBOUND Research Center (Malaysia) is an independent think tank situated in Kuala Lumpur, registered (1006190-U) with laws and regulations of Malaysia. The think tank also provides advisory service related to regional economic development and policy solution. For any feedback, please contact: malaysia[at]anbound.com.

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Urban Development

Improve Quality of Life, Economic Opportunities in Cities to Build Sustainable Future

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Improving quality of life, and social and economic opportunities in Asia’s fast-growing cities are instrumental in fulfilling their potential as engines of economic prosperity and hubs for sustainability, says Creating Livable Asian Cities, a new book released today by the Asian Development Bank (ADB).

The publication examines the region’s urbanization challenges and presents solutions across five priority areas: smart and inclusive urban planning; sustainable transport that provides equitable access to services and opportunities; sustainable energy sources that are less polluting; innovative finance to bridge resource gaps; and greater climate and disaster resilience.

“Urbanization has driven regional productivity growth, but opportunities in cities have not been available to all residents and are further limited by the COVID-19 pandemic,” said ADB Vice-President for Knowledge Management and Sustainable Development Bambang Susantono, who co-edited the publication. “Cities in Asia and the Pacific are among the largest and most vibrant in the world, with many experiences and best practices to share. This publication collects these lessons and aims to guide cities to learn from common challenges and opportunities.”

Developing Asia is home to 17 of the 33 megacities with more than 10 million residents. More than half of the region’s 4 billion population lived in urban areas in 2019 and a billion more are expected to migrate to cities in the next 30 years. By 2050, the region’s urbanization rate could reach 64%. 

To plan for livable and sustainable cities that are people-centered and accessible, the report highlights the need for governments to employ smart and inclusive planning. This includes policies that promote the use of technology, data, and innovation to make urban services—mobility, social infrastructure, resilience management, and utilities, among others—more effective and efficient. For instance, using earth observation technology can help mitigate flood risks and better inform infrastructure projects.

Governments should also focus on sustainable transport and energy as these have a direct impact on people’s productivity, the vibrance of a city’s economic activity, and the environment’s sustainability. Increased mobility will help realize urban economic potential and increase inclusion. Sustainable transport solutions, for example, could include using electric vehicles in public transport systems. Sustainable energy options include household and community-level solar grids, which benefit as the price and availability of solar photovoltaic cells become cheaper and more widespread. Other options include waste-to-energy systems that can lead to improved urban sustainability.

Expanded access to finance will be instrumental in helping cities achieve targets outlined in the Sustainable Development Goals (SDGs). Cities will account for about 70% of the $1.7 trillion in annual investment developing countries need to meet the SDGs. The publication lays out innovative financing models such as new forms of private sector partnerships, capital market instruments and bonds for housing finance, and strengthening institutional frameworks and the capacity to apply value-capture mechanisms.

Lastly, the report highlights the need to improve the resilience of cities, particularly in response to climate change, natural disasters, and public health emergencies like the COVID-19 pandemic. Tools that can help build a city’s resilience include nature-based solutions, financial tools drawn from the insurance industry, and a range of operational approaches drawn from the lessons being learned while cities are responding to the pandemic.

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Urban Development

Suraj Morajkar – A celebrity home builder in Goa

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Suraj Morajkar has worked with almost all celebrities who have homes in Goa. He has also worked on key projects in Goa like The Hilton Goa Resort. His journey in real estate has been a spectacular one which leaves many people inspired to create more while giving back to society.

How did your journey in real estate start? Tell us more about your experience in this field till now. 

As a young boy from Goa I was always surrounded by beautiful architecture. That image has stayed with me all along. I have always wanted to create homes that would retain its posterity and the inspiration from Goan architecture which is a blend of Europe and it took us in that direction.

Tell us more about the role that international collaborations play in the real estate industry?

Our company was born with acumen for International standards. At first, we worked with local and national architects gradually moving to associate and engage with international architects who brought a different understanding and view for what we desired to create and build. We found tremendous change between what was getting acquired and the development done by the rest of the developers. Right from the beginning, since our brand took progressive involvements and engagements we were aligned towards international standards of design which aesthetically suit the local atmosphere. Also, such projects attract the right audience, enabling us to convert them to great addresses in Goa. We have collaborated with some very talented architects national and international. David Ruff of Nava Companies from New York. Blink Design group from Singapore, Robert Patzschke of Germany, Burega Farnell of Singapore, Lars Thomsen of Denmark, Edgar Demello of EDA Bangalore, Arvind D’Souza of ADA Goa.

Having built both commercial and residential real estate in Goa, which one do you like building more and why?

Both have their own charm. The commercial real estate we build is in conservative zone where there is a challenge in building commercial premises based on the old charm, which excites us more. We like the challenge of it and it gives us a lot of intellectual recognition. Residential housing gives us a chance to bring in a new flavour and add beauty to the local landscape.

What are some laws which help the real estate industry in India?

I could say that what helped us in my state of Goa is where the laws are local friendly to keep the village atmosphere whilst building something modern yet maintaining the locality of the place. The laws here are not of a city mentality.

Are there any specific policies in India which aid the real estate sector and contribute to its growth?

Policies like RERA aid in easing down the funding for the real estate sector through NBFC (Non Banking Financial Companies). RERA has helped to retain buyer’s confidence and also helped progress motion and drive in the real estate sector.

What do you wish was different about the real estate market in India?

I’m a local of Goa. My market is very different as compared to the other since the Indian real estate market is specific to the regions you belong to. 

For instance, we in Goa are not city specific per se. However, a metro city always has an expansion because of the population and desire of a middle class family to move to a larger home apartment or villa. Also, with the pandemic happening, people want to move to open spaces.

I think there should be the ease of funding and India should bring in foreign investment for the real estate sector which is their own banking institution and we should have access to the capital. Real estate should also have its own cooperative.

Since foreign investment is important, the government should have a policy that foreign investors can directly give money to builders as it is cheaper due to interest rates.

Out of other destinations in India, why did you choose Goa as the location for your real estate? 

Goa is home. It is obvious I chose Goa to create beautiful homes. 

What is different about the real estate market in Goa compared to other places in India?

Goa is a place where everyone comes to unwind; for peace of mind, for holiday homes, for tranquility and for some a wish to retire. Goa is an International tourist destination which gives you a blend of greenery of village life and beach getaway. This is the big difference and makes Goa global in terms of living standards.

Where do you see real estate in Goa going in the next 10 years? What policies do you think will be different about real estate in the country? 

I think since there is a great connectivity to Goa, it will be another Mecca of holiday homes, retirement options and settling down in India. The culture of Goa is here to stay as the people of Goa really care about their local aesthetics and environment.

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Urban Development

Preparing (Mega)Cities for the 2020s: An Innovative Image and Investment Diplomacy

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WAN

Globalized megacities will definitely dominate the future, in the same way as colonial empires dominated the 19th century and nation-states the 20th. A new geography of power is emerging, made up of global city networks. All in all, the attractiveness of cities is based on the hope of higher purchasing power through greater opportunities, for a better quality of life. Megacities have the potential to effectively fight against poverty and enhance living conditions for a large proportion of the population – if they are managed correctly and make the most of their advantages. Nonetheless, there is a drastic need for new urban models to tackle the associated social, economic, and environmental pressures in a sustainable way.

Cities are the new engines of growth in the global economy, responsible for 80% of global GDP. It is no longer just countries that compete, but cities as well. Like there is great power competition, so will the world’s great cities increasingly compete. Every city will have to gain a competitive edge to differentiate itself from the rest. Flexible and agile cities that can diversify their resources and offer economic, social, and cultural opportunities to their citizens will not only survive but thrive. The cities that are best equipped to produce innovative, inclusive, and ethical solutions in the face of multiplying risks and threats will emerge as leaders. A clear picture emerges: cities will compete and collaborate globally as interdependent entities and will drive the future.

Speaking about megacities, let’s look for example at Mumbai, which is the financial capital of India and the second-most populated city in the world. It is not only the subcontinent’s city with the highest GDP but also ranks among the world’s top ten trade centers. The city contributes 25% of industrial output and 70% of capital transactions to India’s economy. Important financial organizations such as the Reserve Bank of India and the National Stock Exchange of India are in Mumbai. It houses the headquarters of various multinational companies and has thus become an influential commercial and entertainment center of India. It would be foolish to ignore such cities in tomorrow’s global economy.

City diplomacy could be considered a form of decentralization of international relations management, choosing cities as the key actors. In many cases, the representatives of cities involved in city diplomacy will be the mayors, given that they are often responsible for the international relations of their communities. On behalf of their cities, these key actors can engage in relations with other actors on the international stage through two-sided or multiple-sided interactions. There is a lot of room for city diplomacy to grow. It can be driven by image or investment interests, development and strategic communications complete each other.

A city relationship is formally created when the mayors or highest elected or designated leaders from two communities sign a memorandum of understanding establishing the partnership. Nevertheless, this is usually the result of a long process that involves the local city organizations along with the municipalities and other local institutions. It takes a lot of work to get to this stage, so, as in many other cases, sustained effort and clear vision pay off. So, time to shape up the in house mayoral or county staff and consolidate a stellar local talent team of global reach.

Competition matters but so does cooperation. Collaborating with neighboring or nearby cities enables cities to plan and implement actions to address emissions from energy infrastructure, public transport, food systems, waste management, and other services that often operate across municipal borders and to address cross-border climate risks. It also helps cities overcome regional or national climate-policy barriers, share the cost of staff and equipment, and secure better access to data, funding, and technical assistance – all of which can motivate other cities in the area to participate as well.

Image and Investment demand a third I in the 2020s: Innovation. The fastest way to connect cities and counties is using technology. The technological progress of recent decades has had not only a powerful but also a transformative influence on urban life. As technology progresses and becomes more affordable, the functionality and sustainability of urban practices undergo significant advancements as well. At the same time, increased access to information consolidates the role of knowledge as a powerful engine of economic growth. This enables the development of knowledge-based and connected societies. Under these continuously evolving conditions, many concepts about the organization and management of the new technological capabilities have become popular, including the smart city.

To establish an approach for the ideal future of an urban settlement that harnesses technology should be part of the integrated processes that connect cities at a regional level. In the best-case scenario, a city that aspires to become „smart‟ has an integrated, forward-looking plan that includes a vision and a methodology focused on benefiting from digital technologies to improve urban functions and develop knowledge ecosystems. Like any strategy, the plans for smart cities must be adapted to the needs, priorities, and constraints of their circumstances.

Funding for smart city projects is still carved out of overall city or department budgets, either through existing spending (e.g., IT, lighting contracts) or designated ‘smart city’ spending, which is typically relatively small. It is therefore difficult to identify the exact amount local authorities allocate to such projects. Even though a lot of the investment for smart city projects comes from the general city budget, cities have found it most beneficial to have earmarked funds for innovation initiatives. At the moment, what is clear is that the funding and budgeting has to match the ambitions of big cities and transform the smart city objective into reality.

National governments are also encouraging cities to increase funding by boosting the participation of the private sector in delivering smart city projects. Businesses’ experience with participating in the delivery of smart city projects has been dominated by pilot projects often utilizing public sector grant funding. There is room for much more. Local authorities need to make more strides towards scaling pilot projects and procuring large-scale solutions. The city must be able to articulate clearly the challenges it faces and develop a more open way for the market to respond. The sky is the limit, if the game is played well. An innovative image and investment diplomacy operation is an important way forward.

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