HCMC, Hanoi, Manila, Bangkok among world’s most dynamic cities
Vietnam’s Ho Chi Minh City and Hanoi appear prominently among the global Top 10 most dynamically growing cities in the new City Momentum Index 2019 compiled by global real estate company JLL. The index tracks socio-economic and commercial real estate growth in 131 cities over a three-year period.
JLL found that Asia-Pacific is home to 19 of the top 20 cities in this year’s index as urban growth continues to shift away from the West to the East with Indian and Chinese cities dominating the rankings.
With Hanoi in third place and Ho Chi Minh City eighth, Vietnam was the strongest performer with two cities ranking the highest in ASEAN. Manila ranks 12th and Bangkok 18th.
“Ho Chi Minh City is generally viewed as the more business-friendly destination, attracting more overseas investment along with a higher corporate presence, whereas Hanoi has lagged commercially but is a city that is swiftly evolving,” said JLL.
The researchers pointed out that manufacturing is one of the key sources of economic growth in Vietnam, driven in part by robust demand from China. Vietnam is often seen as a lower-cost alternative to China, and foreign direct investment has grown on the back of this while a possible escalation of the trade dispute between China and the US may benefit Vietnam’s economy in the longer term.
Ho Chi Minh City and Hanoi are both pulling in expanding levels of investment from large multinational technology firms, including Microsoft, LG, Intel and, most notably, Samsung. Infrastructure plans, such as the official opening of Hanoi’s first metro line, should also help to ease the congestion caused by the rapidly-growing population.
Metro Manila, being one of the most densely populated cities in the world, is facing even bigger challenges, the index found. The government has committed itself to a very extensive infrastructure building programme, “Build Build Build,” which involves over 2,000 projects including 75 flagship schemes. These are expected to improve congestion, increase power reliability, reduce the impact of climate change and redevelop areas of the urban fabric.
Manila is well known for its business process outsourcing services, and foreign companies continue to be attracted by the skilled workforce, English language skills and tax incentives. Once seen as lagging other Southeast Asian cities, Manila appears to be thriving and boosting growth in the longer term, the index suggests.
According to JLL, momentum in Bangkok’s economy has been gradually increasing over the past couple of years. As a key hub of Southeast Asia, the number of visitors to the city has risen dramatically over the past decade. In 2016, “Thailand 4.0” was launched, a digital initiative aimed at attracting new investment to transform the economy. The three stated aims of this initiative are to elevate Thailand to the status of a high-income nation, to reduce inequality and to promote environmentally sustainable growth and development.
Foreign direct investment to Bangkok rebounded sharply in 2017 with many foreign investors now successfully joining with local partners. At the same time, infrastructure improvements are now underway with four new mass rapid transit lines in development along with two extensions to existing lines; this should help to reduce congestion. However, political uncertainty has the potential to derail this momentum with an election now due on March 24, 2019 which could impact business investment decisions and tourism inflows, JLL concluded.
Vietnam’s Ho Chi Minh City and Hanoi appear prominently among the global Top 10 most dynamically growing cities in the new City Momentum Index 2019 compiled by global real estate company JLL. The index tracks socio-economic and commercial real estate growth in 131 cities over a three-year period. JLL found that Asia-Pacific is home to 19 of the top 20 cities in this year's index as urban growth continues to shift away from the West to the East with Indian and Chinese cities dominating the rankings. With Hanoi in third place and Ho Chi Minh City eighth, Vietnam was the...
Vietnam’s Ho Chi Minh City and Hanoi appear prominently among the global Top 10 most dynamically growing cities in the new City Momentum Index 2019 compiled by global real estate company JLL. The index tracks socio-economic and commercial real estate growth in 131 cities over a three-year period.
JLL found that Asia-Pacific is home to 19 of the top 20 cities in this year’s index as urban growth continues to shift away from the West to the East with Indian and Chinese cities dominating the rankings.
With Hanoi in third place and Ho Chi Minh City eighth, Vietnam was the strongest performer with two cities ranking the highest in ASEAN. Manila ranks 12th and Bangkok 18th.
“Ho Chi Minh City is generally viewed as the more business-friendly destination, attracting more overseas investment along with a higher corporate presence, whereas Hanoi has lagged commercially but is a city that is swiftly evolving,” said JLL.
The researchers pointed out that manufacturing is one of the key sources of economic growth in Vietnam, driven in part by robust demand from China. Vietnam is often seen as a lower-cost alternative to China, and foreign direct investment has grown on the back of this while a possible escalation of the trade dispute between China and the US may benefit Vietnam’s economy in the longer term.
Ho Chi Minh City and Hanoi are both pulling in expanding levels of investment from large multinational technology firms, including Microsoft, LG, Intel and, most notably, Samsung. Infrastructure plans, such as the official opening of Hanoi’s first metro line, should also help to ease the congestion caused by the rapidly-growing population.
Metro Manila, being one of the most densely populated cities in the world, is facing even bigger challenges, the index found. The government has committed itself to a very extensive infrastructure building programme, “Build Build Build,” which involves over 2,000 projects including 75 flagship schemes. These are expected to improve congestion, increase power reliability, reduce the impact of climate change and redevelop areas of the urban fabric.
Manila is well known for its business process outsourcing services, and foreign companies continue to be attracted by the skilled workforce, English language skills and tax incentives. Once seen as lagging other Southeast Asian cities, Manila appears to be thriving and boosting growth in the longer term, the index suggests.
According to JLL, momentum in Bangkok’s economy has been gradually increasing over the past couple of years. As a key hub of Southeast Asia, the number of visitors to the city has risen dramatically over the past decade. In 2016, “Thailand 4.0” was launched, a digital initiative aimed at attracting new investment to transform the economy. The three stated aims of this initiative are to elevate Thailand to the status of a high-income nation, to reduce inequality and to promote environmentally sustainable growth and development.
Foreign direct investment to Bangkok rebounded sharply in 2017 with many foreign investors now successfully joining with local partners. At the same time, infrastructure improvements are now underway with four new mass rapid transit lines in development along with two extensions to existing lines; this should help to reduce congestion. However, political uncertainty has the potential to derail this momentum with an election now due on March 24, 2019 which could impact business investment decisions and tourism inflows, JLL concluded.
