HCM City ranks second while Ha Noi is in eighth place. The two are “high potential” cities as they have low costs and rapid consumer market expansion. — Photo jll.com
HCM City and Ha Noi, two major cities of Viet Nam, are listed among the top 10 most dynamic cities, according to the JLL’s fourth annual City Momentum Index (CMI).
The report was released at the World Economic Forum on Monday.
JLL is a financial and professional services firm specialising in commercial real estate services and investment management.
HCM City ranks second while Ha Noi is in eighth place. The two are “high potential” cities as they have low costs and rapid consumer market expansion. The cities also actively continue in attracting capital from foreign investors betting on their transition from low-wage manufacturing to high-value activities.
HCM City was reported to have attracted US$3.7 billion from foreign direct investment in 2016, bringing the total to $40.99 billion. Meanwhile, Ha Noi absorbed 445 new projects with registered capital of $2.8 billion last year.
Other cities in the top 10 include Bangalore and Hyderabad in India; Silicon Valley, Boston and Austin in the United States; Shanghai in China; London; and Nairobi of Kenya. Bangalore, India’s tech centre, took the number one spot.
“With more than half the world's population currently living in cities, a proportion that is expected to grow substantially over the next few decades, the success of our cities takes on great importance," Jeremy Kelly, JLL director of Global Research, noted.
"The CMI highlights that despite various political upheavals and ongoing economic uncertainties, many cities continue to show impressive dynamism. The key to their success is the ability and openness that enable them to adapt quickly to each new wave of global change," Kelly said.
The overriding factors that characterise the world’s most dynamic cities are technology and innovation — and cities that best absorb, adapt and leverage these drivers come out on top.
Technology continues to be a major driver of momentum in the world's 30 fastest-changing cities. These cities provide a fertile environment for innovation and successfully integrate into global networks, often outperforming their national economies.
The 134 cities covered by the CMI were assessed using 42 variables, including recent and projected changes in city gross domestic product, population, corporate headquarter presence, commercial real estate construction and rents. Other factors included education, innovation and environment.
Although the most dynamic cities are spread across the world, more than half of the top 30 in the 2017 ranking are in Asia-Pacific. — VNS