HCMC and Hanoi have been ranked second and sixth, respectively, among the fastest-developing cities globally, according to Savills’ newly released Growth Hubs Index.
Savills’ Growth Hubs Index, which complements the Resilient Cities Index, forecasts the economic outlook of 230 cities through 2033 to identify the fastest-growing ones.
Indian and Bangladeshi cities, expected to see GDP growth exceeding 68% over the decade, feature prominently. Bengaluru in India tops the list, followed by HCMC.
The data, at the city-metro level, is sourced from Oxford Economics. Future credit ratings are assessed at the country level. The analysis includes only cities with a GDP of $50 billion or more in 2023.
Savills attributes HCMC’s strong forecast to a significant rise in the number of high-income households, while Hanoi’s prospects are bolstered by increasing personal wealth and a growing middle class.
Vietnam is laying the groundwork to benefit from substantial foreign direct investment in the coming decade through major improvements in infrastructure, regulation, and planning.
Approximately 6% of GDP is allocated to infrastructure, the highest in the region. This investment supports projects like Long Thanh International Airport near HCMC, along with thousands of kilometers of new roads and deep-sea ports.
This infrastructure will boost production of solar panels, electric vehicles, chips, laptop batteries, phones, monitors, and related components. Key relationships, such as those with Samsung and LG Corp, are crucial, with Samsung accounting for 10-30% of the country’s GDP.
HCMC has long been a gateway for foreign investment. With a 92% office occupancy rate and a shortage of Grade A stock, the office market is robust. Retail is thriving too, driven by strong domestic demand and the modernization of traditional shophouses.
Overall, investment in infrastructure is expected to transform Vietnam’s industrial landscape. New projects will spur residential developments and supporting services and amenities around them.
