Big cities like Ho Chi Minh and Hanoi have the potential to build Smart cities if there are appropriate policies focusing on three platforms: the Internet of Things, people, and real estate.
Participating in the Workshop “What does Blockchain contribute to building Smart City?” Organized by the Department of Science and Technology of Ho Chi Minh City on the morning of August 18, 2022, Mr. Phan Duc Trung – Standing Vice Chairman of Vietnam Blockchain Association had a remarkable sharing about “Blockchain potential and application to Smart City”.
Smart City is a relatively new concept in Vietnam. There are many definitions of a Smart City but one of the most common is “a city that uses information and communication technology (ICT) to improve operational efficiency, share information, bring better public service and citizen welfare”. In other words, Smart City applies modern technologies such as blockchain, the internet of things (IoT), and artificial intelligence (AI)… to solve urban challenges and create a durable infrastructure.
Many countries around the world are aiming to build Smart cities to improve urban performance. Mr. Nguyen Duc Tuan – Acting Director of the Center for Science and Technology Information and Statistics in Ho Chi Minh City (CESTI) said: “The year 2021 is a year of the technology boom, especially blockchain technology. Not only is it a game or virtual currency, but blockchain also has applications in many socio-economic fields, typically in smart city creation”.
Mr. Nguyen Duc Tuan – Acting Director of CESTI gave the opening speech
6 Blockchain problems solved when applied to Smart City
According to Mr. Phan Duc Trung, to approach Smart City, we must start from platforms such as IoT, people, and real estate.
Blockchain is applied to Smart City to solve specific problems
Once the foundation is firmly established, the role of blockchain emerges. Distributed ledger technology will help Smart City solve 6 key problems enhancing security, improving healthcare, managing waste, simplifying education, saving energy, and optimizing traffic. These are very basic aspects to serve the life of citizens in the city. “People may not know what Smart City is, but they will be interested in the solution to three problems, which are waste, traffic, and public services,” he said.
For example, effective waste management is an urgent issue in many major cities around the world. Blockchain can help maintain a clean and beautiful environment by transparently tracking real-time waste collection and recycling.
At the same time, blockchain will contribute to promoting transportation by allowing vehicle owners to register ownership, and track vehicles, thereby preventing vehicle theft.
In the public service sector, blockchain helps to cut down on cumbersome administrative procedures by creating a secure and transparent database. It is easy for parties to access and share information on the blockchain network while at the same time ensuring that the data is not tampered with thanks to the non-editable nature of the distributed ledger, which is supported by a consensus mechanism.
Besides Blockchain, IoT is also a very important technology for Smart City
Besides Blockchain, another technology that is very important for Smart City is IoT – an internet system that connects all smart devices and can participate in the development of city infrastructure, managing the identity of the citizen.
Mr. Phan Duc Trung said that currently there are two most popular IoT standards, LoRaWan and NB-ToT, that Vietnam can research. LoRaWan is a low-power, wide-area IoT protocol that allows anyone to set up their own network at a competitive cost. In contrast, NB-IoT is a protocol provided by mobile carriers, which has a higher fee with the advantage of low latency and providing a better overall experience for the end user.
Where is Vietnam in the Smart City ranking?
The Smart City IMD-SUTD Index (SCI) is an important indicator to evaluate Smart City based on people’s awareness of the technologies being applied in the city.
In 2021, SCI ranks 118 cities globally to assess Smart City development based on 5 areas: health, transport, activities, work-study opportunities, and governance. Ho Chi Minh City ranked 88th and Hanoi ranked 87th in terms of Smart City development.
Although the ranking is still modest when placed next to the world, the Standing Vice President of the Vietnam Blockchain Association said that Smart City is not a difficult technology for Ho Chi Minh. This city has a lot of potential in terms of population, a great contribution to the budget, and strong economic development… but still needs appropriate policies.
Mr. Phan Duc Trung commented: “The most important thing to build Smart City is the policy and measures to measure the satisfaction of the people. Vietnam needs to improve the IMD – SUTD index and have the policy to promote 6 Smart City directions based on 3 IoT platforms, people, and real estate.
Mr. Nguyen Duc Tuan cited a report from the Central Economic Commission that said 41/63 provinces in Vietnam have or are developing a Smart City development project. Each province aims to use smart urban solutions to solve different needs such as traffic jams, public administration reform, or tourism development…