City Momentum Index 2018
Ho Chi Minh City and Hanoi maintain high spots on the CMI rankings
Second year in a row, Vietnam’s key economic centers, Ho Chi Minh City (HCMC) and Hanoi are standing strong compared to their international peers. This year’s City Momentum Index (CMI) covered 131 established and emerging markets, and tracked a number of factors in order to identify cities that have:
- Strongest short-term socio economic and commercial real estate momentum, based on criteria such as:
- Economic output
- Retail sales
- Population
- Air connectivity
- Corporate HQs
- Foreign direct investment
- Offices, retail and hotels
- Transparency
- Greatest future-proofing capacity for long-term success
On the Short-term momentum rankings, HCMC secured the 3rd position overall, while Hanoi came in 8th, leaving behind neighboring Manila (18), Jakarta (23), Kuala Lumpur (24), Singapore (26) and Bangkok (28). According to the report, the two Vietnam’s cities are “... attracting sizeable volumes of foreign direct investment (FDI) as they integrate into regional and global supply chains for high-technology manufacturing. This is helping to spur rapid economic and income growth, leading to among the world’s highest rates of increase in retail sales and air passenger numbers“.
According to regional director of JLL Vietnam, Stephen Wyatt, it is not a surprise that we are seeing HCMC and Hanoi ranked in the Top 10.
“The pace of development within both cities is evident and the government is making significant investment in infrastructure, which will help continue this momentum into the future”. He also added that high levels of confidence and positive market sentiment are present:
“In the past few years there has been significant interest from foreign investors looking to participate in this highly attractive market and we expect this to continue in the foreseeable future,” he said.
While the US San Francisco (1), Silicon Valley (2), New York (3), Boston (5) and LA (6) are leading in the Long-term success list, Asian cities are dominating the rankings of Global Top 30 cities on the Short-term momentum rankings. With 25 Asian cities being ranked on the Top 30 list, with competing cities such as Shanghai, Shenzhen, Beijing, Singapore, Kuala Lumpur and Delhi, it is impressive that HCMC and Hanoi are maintaining high spots on the CMI ranking, while building foundations to maintain similar results in the years to come.
Original sources (1, 2, 3)