Vietnam’s Urbanisation Reaches 30 Percent

Vietnam is rapidly urbanising and has made progress in its urbanisation processes, said the World Bank’s Vietnam Urbanisation Review released at Ho Chi Minh City Research and Development Institute (HIDS) on April 18, 2012.

 

Urbanization is a central element of Vietnam’s economic growth strategy. No country has achieved high income status and strong economic growth without urbanizing and nearly all countries become at least 50 percent urbanized before fully reaching middle income status. Vietnam is very definitely on that path. According to the World Bank, the speed of urbanization is 30 per cent annually and population growth is 3.4 per cent per year. The two urban systems of Hanoi and HCMC are seriously limiting their competitive advantage on account of logistic bottlenecks and have disproportionately high transport costs. 

 

Vietnam has achieved about 96 per cent access to electrical power supply, which is highly commendable for a developing country.