Ho Chi Minh City Ranks as 3rd Smartest City in Southeast Asia

In the inaugural Intelligent Cities Index 2026, released by global consulting firm Boston Consulting Group (BCG), Vietnam's largest city, Ho Chi Minh City, has been ranked as the third smartest city in Southeast Asia. Globally, it secured the 48th position, narrowly outperforming Malaysia's capital, Kuala Lumpur, which ranked 50th. The index highlights Singapore as the top-ranked city in the region and 11th globally, followed by Jakarta, Indonesia, at 39th worldwide. Ho Chi Minh City positions itself after these leading urban centers. The index evaluates 61 major cities across 39 countries, assessing how they utilize artificial intelligence (AI) and digital technologies to serve residents and businesses. The evaluation covers five areas: resident outcomes, intelligent city strategy, technology adoption, ways of working, and enabling factors such as infrastructure, talent, and funding. According to BCG's report, cities with higher levels of AI adoption tend to have more use cases and deliver better outcomes for residents. The assessment emphasizes not just technological infrastructure but also the effectiveness with which digital capabilities are translated into improved services and quality of life. Successful cities also require effective governance, funding, talent, infrastructure, and innovation ecosystems. BCG also identified different paths for cities seeking to improve their intelligent-city maturity. Some succeed by developing balanced capabilities across multiple areas, while others focus on particular strengths such as strategy, governance, partnerships, infrastructure, or talent. For cities seeking to advance, BCG recommends clarifying long-term priorities, improving governance and partnerships, expanding proven AI and digital services, and investing in data, technology, infrastructure, and skills. The report stated that AI adoption can improve resident outcomes even in cities that have not yet developed world-class infrastructure or funding ecosystems. This suggests that cities can begin by expanding practical AI-enabled services while building broader capabilities over time. Ho Chi Minh City's recognition as a smart city reflects Vietnam's focus on urban development and technological innovation amidst its rapid economic growth. The Vietnamese government, operating under a one-party system, prioritizes economic development, making the promotion of digitalization a crucial tool for achieving national objectives. In particular, regarding relations with China, Vietnam seeks to enhance its own competitiveness through technological development and infrastructure investment while maintaining economic interdependence. Smart city initiatives are seen as part of this strategy, contributing to Vietnam's enhanced presence on the international stage.