Organised by the Australian Trade and Investment Commission (Austrade), the forum convened representatives from government agencies, businesses, academic institutions, and organisations from Australia and Vietnam.

The event marked a shared commitment to building smarter, greener, and more liveable cities in Vietnam, while strengthening economic and trade ties between Australia and Vietnam, particularly in the digital economy. It built on insights from the Smart City Focus Group-Vietnam Market Deep-Dive, held on April 25 in Ho Chi Minh City, which laid the groundwork for identifying Vietnam’s smart city landscape, challenges, and opportunities for collaboration.

Jonathan Saw, trade and investment commissioner at Austrade, made the opening speech

In his opening remarks, Jonathan Saw, trade and investment commissioner to Vietnam for Austrade, highlighted the importance of the Australia-Vietnam partnership, especially following the elevation of diplomatic ties to a Comprehensive Strategic Partnership in 2024.

"The digital economy is a priority for enhancing two-way trade and investment. Austrade Vietnam’s Landing Pad initiative is driving Australian technologies to the region, supporting digital transformation, and fostering partnerships with Vietnamese stakeholders to co-develop solutions tailored to local needs," Saw said. He noted the participation of a delegation of 13 Australian companies, showcasing their world-class digital innovation capabilities and commitment to sustainable urban development.

Smart city development in Vietnam

Vietnam is at a "golden moment" for smart city development, driven by rapid urbanisation, a growing middle class, and a high internet penetration rate of nearly 80 per cent of the population. As of 2023, 48 out of 63 provinces and cities had implemented smart city schemes, with over 40 provincial-level and nearly 100 district-level Intelligent Operations Centres (IOCs) focusing on traffic, healthcare, education, and disaster warning systems.

However, the country faces significant challenges, including urbanisation pressures, environmental pollution, infrastructure demands, and an ageing population, necessitating efficient resource allocation and smarter urban management.

The Smart City Focus Group on April 25, led by Austrade, in collaboration with Startup Vietnam Foundation, brought together experts from diverse sectors, including Savills, Maersk, Becamex, Vu Phong Energy, Schneider Electric, the Ho Chi Minh City Institute for Development Studies, and RMIT University Vietnam.

The session established a consensus on a sustainable smart city as an innovative urban area leveraging ICT to enhance quality of life, operational efficiency, competitiveness and resilience, while meeting the needs of current and future generations across economic, social, environmental, and cultural dimensions.

The focus group discussions underscored several challenges on Vietnam’s smart city journey. A key issue is the user-centricity gap, where initiatives often prioritise technology over residents’ actual needs. Strategic long-term planning is lacking, with fragmented solutions leading to inefficiencies.

Data security and privacy concerns, despite progress on personal data protection, hinder user trust due to risks like data leaks and spam calls. Infrastructure limitations, such as unreliable internet connectivity (dependent on submarine cables) and insufficient power transmission capacity, further impact smart city services, particularly with rising demands from AI centres and green transportation.

Additionally, high initial capital costs, regulatory gaps in AI and data governance, and cultural barriers like risk aversion slow down progress.

Pham The Hung, partnership and project management lead of the Startup Vietnam Foundation, delivered the keynote speech

Despite these challenges, Vietnam’s smart city market presents immense opportunities, with a projected market size of $1.36 trillion in 2024, expected to grow to $3.84 trillion by 2029 with compound annual growth of 23.3-30.2 per cent.

The government’s commitment to digital transformation, supported by policies and the National Digital Transformation Programme, creates a favourable environment for investment. The group highlighted opportunities in sectors like AI, cybersecurity, smart mobility, telemedicine, and sustainable energy, where Australian expertise can make a significant impact.

Australian companies at the forum showcased innovative solutions in energy optimisation, clean energy, traffic safety management, infrastructure optimisation, and digital transformation services for tourism, green transition, and ESG compliance.

For instance, Australia’s advanced capabilities in 5G connectivity, data centres, and renewable energy align with Vietnam’s needs for stable technical infrastructure and sustainable urban development. The forum emphasised the potential for multilateral collaboration to address challenges and unlock Vietnam’s smart city potential.

During the summit, experts from Australia and Vietnam exchanged insights on the current situation and future potential of smart city development. Panellists from the Vietnamese-German University and United Nations Habitat, i.Value Corporation, Golden Gate Ventures, EVN Ho Chi Minh City, and the Australian Trade and Investment Commission emphasised the importance of public-private partnerships in smart city development.

While private sector and business partners, including the startup community, can take the lead in having innovative solutions to answer the needs of citizens, governments should have a more proactive role in providing an enabling institutional framework. This would lead to ensuring people-centric design, and preparing technical standards towards sustainability and long-term interoperability to assure that smart cities will serve for a better quality of life. The dialogue marked a step forward in knowledge sharing and international cooperation.

Australian businesses are well-positioned to support Vietnam in building integrated platforms, enhancing digital literacy, and adopting a long-term vision for sustainable urban growth.

A panel discussion on opportunities and challenges

The Australian business delegation, visiting Ho Chi Minh City from May 7-9 as part of the Landing Pads initiative, engaged in activities including exhibits at Smart City Asia 2025, partner meetings, field surveys, and business networking to deepen connections with this dynamic market. Both parties expressed confidence in the vast potential for Australia-Vietnam collaboration in the smart city sector, aiming for a sustainable, efficient, and liveable urban future.

Landing Pads is an Australian government initiative to help export-ready Australian tech businesses to expand globally. The Landing Pad in Ho Chi Minh City was launched last year during a Southeast Asia business exchange.

The Landing Pad provides on-the-ground support for market ready Australian technology startups, and an effective go-to market strategy in Vietnam that contributes to the burgeoning digital transformation agenda.