Hanoi, Ho Chi Minh City among world's most dynamic cities
Saigon by night. Tuoi Tre
Ho Chi Minh City secured the second spot, whereas Hanoi came eighth in the list topped by Bangalore, India’s tech hub, the WEF said on its website, citing the 2017 City Momentum Index (CMI).
According to CMI, compiled by investment management company JLL, a city’s capacity to embrace rapid change determines its ability to compete in the world.
“The overriding factors that characterize the world’s most dynamic cities are technology and innovation — and cities that best absorb, adapt and leverage these drivers come out on top,” the WEF said.
Both of the Vietnamese representatives in the top ten are considered “high potential” cities, those that “continue to attract capital from foreign investors betting on their transition from low-wage manufacturing to high-value activities,” according to the WEF report.
Bangalore took the number one spot, with India having snatched the lead from China as home to some of the world’s fastest-changing cities, taking six of the top 30, compared with China’s five.
The index examines 42 variables in each of the 134 cities or metropolitan areas. Those factors can be grouped into three areas: two that reflect strengths for short-term changes and one used to determine longer-term economic sustainability.
The first set of factors, which accounts for 40 percent of the overall ranking, includes socio-economic factors – GDP, population, air passengers, corporate headquarters and foreign direct investment.
The second, accounting for 30 percent, focuses on commercial real estate momentum, which encompasses changes related to construction, rents, investment and transparency in the office, retail and hotel sectors.
The third group includes innovation capacity and technological prowess, access to education and environmental quality. It accounts for 30 percent of the index.
Although the most dynamic cities are spread throughout the world, more than half of the top 30 in the 2017 ranking are in Asia-Pacific.
The WEF noted in its report that CMI “isn’t a measure of the ‘best’ cities in which to invest.”
“It is intended to identify change and highlight which cities or metropolitan areas may be best at positioning themselves to compete in today’s ever-changing economic landscape,” the report explained.
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