Measuring urban transformation in developing countries: A multi-dimensional index approach from Vietnam

Abstract

Existing smart and sustainable city indices are largely designed for high-income contexts and often lack applicability to developing countries, where data scarcity and institutional heterogeneity limit their relevance. This study develops a context-sensitive Smart and Sustainable City Index (SSCI) for Vietnam at the provincial level. To move beyond the limitations of aggregate city-level data, the SSCI integrates objective data from provincial statistics and national household surveys with large-scale perceptual measures across five dimensions: social, economic, environmental, governance, and lifestyle. The index is further enriched by satellite-based indicators of night-time lights and air pollution. The results reveal pronounced regional disparities, with major urban centres consistently outperforming rural and mountainous areas. Importantly, economic growth does not consistently translate into improved governance or social outcomes. These patterns point to institutional lag in rapidly urbanising provinces, where technological adoption alone is insufficient to secure sustainable development. Consistent with recent evidence that smart city development operates through governance and institutional capacity, the SSCI functions as a diagnostic and explanatory framework. By identifying structural mismatches and cross-dimensional tensions linking economic performance, governance quality, and household welfare, the index provides a practical instrument for governments and regional planners to monitor sustainability transitions, prioritise reforms, and align smart city initiatives with more inclusive and resilient futures.