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Hanoi
Global Business Cities Report

January 2022
Global Business Cities
Dear reader,
We hope that you will enjoy familiarizing yourself with this Global
Business Cities Report of Hanoi. We have carefully collected and
analyzed data that provides you with a comprehensive and up-to-date
impression of the city of your choice.
These reports cover 200 most important business cities from 73
countries and territories around the globe. The distribution of cities
across the geographical regions and countries was based on their
relative share of the global and regional economy. The individual cities
included in this product were chosen based on their economic
importance and geographical distribution.
We wish you a valuable and informative reading experience.
2
Executive summary
▪ Cost of living was lower than in this region in general
▪ The city GDP per capita of Hanoi was at US$5,196, being US$62,357
behind regional high-performer
▪ It takes 16 days to start a business in Vietnam compared to the
regional average of 34.9 days
▪ At US$793, the average rent in this city was US$3,272 lower than the
highest for this region
▪ The internet penetration in Hanoi is lower than the regional average
▪ Air passenger numbers at 29.3 million were higher than the regional
average
▪ Hanoi was less popular on Instagram than cities in this region
▪ This city has more museums than the regional average
Global Business Cities

Urbanization has been identified as one of the megatrends shaping the economy and society globally. More than half of the world’s population
already lives in urban areas, and this proportion is expected to rise to over 65 percent by 2030. In addition, urban agglomerations are becoming
larger in size. According to population projections, there will be 49 cities with over 10 million inhabitants by 2025.

Just like people, economic activities also tend to concentrate in cities – more than 80 percent of the world’s gross domestic product (GDP) is
generated there. Cities are increasingly considered independently of their national context and rather assessed in relation to one another, i.e., in a
transnational network of central marketplaces and operational hubs. Both urbanization and the role of cities as economic powerhouses highlight the
importance of taking a closer look at the aspects associated with cities that nurture businesses. It is noteworthy that global resource use is
concentrated in cities, which account for more than 70% of greenhouse gas emissions and two thirds of worldwide energy use. A lot of cities are
affected by climate change because of their geographical position; consequently, solutions for a sustainable and smart development in areas such as
housing, traffic, and energy use are highly relevant to cities. Furthermore, the epicenters of the current COVID-19 pandemic can be found in urban
areas, with 90 percent of cases being reported there. Since this crisis is thus having a detrimental effect on the cities’ population, topics such as overall
health care supply as well as the physician density in a city are of particular interest.

Besides population size and GDP figures, environmental factors also play a vital role in determining to what extent a city lends itself to a
business location as companies cannot operate in a vacuum, i.e., independently of the wider context of the economy and society. For this reason,
these reports have identified, collected, and analyzed a set of indicators connected to the attractiveness of a city from a global business perspective.
This collection has been divided into conceptual chapters describing different aspects that make a city a good choice of location in terms of business
operations. The society chapter features information connected to institutional quality, the economy chapter examines the relevant city’s economic
strength and level of development, the operational environment chapter focuses on infrastructure and logistics, while the charisma chapter
highlights aspects reflecting cultural capital and social influence.

3 Sources: WHO 2020, UN 2020, World Bank 2019, Statista 2020

Global Business Cities
Global coverage

4
Agenda

01 Introduction 04 Operational environment

▪ Total rankings ▪ Information exchange
▪ Country & City overview ▪ Transportation & Logistics
▪ Social infrastructure

02 Society 05 Charisma
▪ Population & Education ▪ Tourism
▪ Living standards ▪ Culture
▪ Institutional framework ▪ Environment

03 Economy 06 Appendix
▪ Economic conditions ▪ Methodology
▪ Business environment ▪ Glossary
▪ Real Estate ▪ Author

5
INTRODUCTION

6
Hanoi ranked 137th out of 200 Global Business Cities
Global Business City Ranking: Overall Index

Global Business City results Top 10 cities in Global Business Cities index
Charisma Operational Environment Society Economy
100.00 95.08 94.63
90.71 90.70 90.04 89.70 89.63 89.53 88.85
43.77
Total score
for this city

Total
137th
ranking
for this city

Index methodology
The Global Business City Index consists of four
added subindices. Economy and Operational
Environment range between 0 and 35 points
whereas Society ranges between 0 and 20 points
and Charisma ranges between 0 and 10 points.
Hong London Paris Frankfurt Amster- Tokyo Singapore Oslo Dublin New York
Kong dam

Note: For the detailed methodology, please refer to the appendix

7 Sources: Statista 2021
Global Business Cities rankings (1/2)
Ranking (1/2)

# City Total score # City Total score # City Total score # City Total score
1 Hong Kong 100.00 26 Miami 82.00 51 Houston 74.25 76 Tampa 67.64
2 London 95.08 27 Perth 81.51 52 Lisbon 74.04 77 Glasgow 67.39
3 Paris 94.63 28 Denver 81.30 53 Shanghai 73.98 78 Lyon 67.22
4 Frankfurt 90.71 29 Auckland 80.91 54 Incheon 73.87 79 Columbus 67.21
5 Amsterdam 90.70 30 Phoenix 80.78 55 Portland 73.57 80 Detroit 67.15
6 Tokyo 90.04 31 Sydney 80.75 56 Montréal 73.47 81 Cleveland 66.96
7 Singapore 89.70 32 Washington D.C. 80.59 57 San Francisco 72.93 82 Barcelona 66.77
8 Oslo 89.63 33 Brussels 80.32 58 San Jose 72.66 83 Dubai 66.64
9 Dublin 89.53 34 Düsseldorf 79.74 59 Tel Aviv 72.64 84 Rome 66.60
10 New York 88.85 35 Hamburg 79.39 60 Austin 72.23 85 Kaohsiung 66.59
11 Doha 88.79 36 Toronto 79.39 61 Memphis 72.17 86 Kansas City 66.54
12 Munich 88.05 37 Kuala Lumpur 79.19 62 Milan 71.83 87 Toulouse 66.22
13 Boston 87.28 38 Chicago 79.17 63 Baltimore 71.50 88 Guangzhou 66.14
14 Zürich 86.67 39 Stuttgart 79.06 64 Bristol 71.38 89 Sendai 65.84
15 Stockholm 86.32 40 Melbourne 78.31 65 Busan 71.07 90 Honolulu 65.67
16 Vienna 85.81 41 Geneva 77.72 66 Louisville 70.89 91 Fukuoka 65.50
17 Berlin 85.10 42 Calgary 76.87 67 Taipei 70.84 92 Athens 65.01
18 Rotterdam 84.26 43 Los Angeles 76.45 68 Indianapolis 70.76 93 Sacramento 64.75
19 Seoul 84.11 44 Pittsburgh 76.22 69 Philadelphia 70.63 94 Buenos Aires 64.62
20 Madrid 84.11 45 Cologne 76.08 70 Manchester 70.19 95 Jacksonville 64.09
21 Atlanta 83.90 46 Charlotte 75.38 71 Yokohama 70.01 96 San Antonio 63.35
22 Prague 83.46 47 Osaka 75.22 72 St. Louis 69.28 97 Kuwait City 62.98
23 Seattle 82.41 48 Vancouver 74.97 73 Warsaw 68.21 98 Albuquerque 62.93
24 Helsinki 82.18 49 Minneapolis 74.60 74 San Diego 67.88 99 New Orleans 62.79
25 Copenhagen 82.06 50 Beijing 74.53 75 Vilnius 67.70 100 Santiago 62.53

8 Sources: Statista 2021

Global Business Cities rankings (2/2)
Ranking (2/2)

# City Total score # City Total score # City Total score # City Total score
101 Marseille 62.33 126 Budapest 50.28 151 Changsha 40.93 176 Cairo 31.84
102 Nashville 61.95 127 Bogotá 48.99 152 Kunming 40.69 177 Lanzhou 31.44
103 Manila 61.45 128 Hangzhou 48.59 153 Rio de Janeiro 39.62 178 Algiers 31.32
104 El Paso 61.12 129 Lima 48.25 154 Dalian 39.45 179 Ahmedabad 31.10
105 Strasbourg 60.23 130 Ho Chi Minh City 47.89 155 Zhengzhou 39.32 180 Phnom Penh 30.61
106 Sapporo 59.70 131 Chongqing 47.70 156 Santo Domingo 38.77 181 Johannesburg 30.33
107 Nagoya 59.68 132 Sevilla 47.64 157 Bangalore 38.66 182 Kolkata 30.17
108 Muscat 59.28 133 Monterrey 46.52 158 Shenyang 38.64 183 Vladivostok 29.79
109 Bucharest 58.77 134 Chengdu 45.51 159 Fuzhou 38.22 184 Casablanca 28.84
110 Moscow 58.75 135 Brasília 43.98 160 Wuhan 38.20 185 Pune 28.54
111 Bangkok 58.39 136 Belgrade 43.81 161 Jinan 37.55 186 Hyderabad 28.09
112 Shenzhen 58.28 137 Hanoi 43.77 162 Fortaleza 37.23 187 Tashkent 27.83
113 Montevideo 58.25 138 Saint Petersburg 43.71 163 Chennai 37.19 188 Puebla City 27.82
114 Krakow 57.32 139 Suzhou 43.43 164 La Paz 36.84 189 Jaipur 25.34
115 Jakarta 56.82 140 Ankara 43.33 165 Belo Horizonte 36.70 190 Nairobi 24.01
116 Turin 56.44 141 Mérida 43.22 166 Delhi 35.80 191 Guatemala City 23.47
117 São Paulo 56.04 142 Xiamen 42.85 167 Urumqi 35.74 192 Nagpur 22.82
118 Almaty 55.42 143 Xian 42.31 168 Surabaya 35.52 193 Dhaka 22.61
119 Mumbai 54.13 144 Tianjin 42.14 169 Kazan 34.95 194 Lucknow 21.23
120 Riyadh 53.86 145 Quito 41.85 170 Izmir 34.94 195 Cape Town 17.14
121 Birmingham 53.82 146 Dallas 41.82 171 Harbin 34.63 196 Accra 16.48
122 Istanbul 53.17 147 Naples 41.51 172 Yekaterinburg 34.40 197 Karachi 15.79
123 Sofia 53.14 148 Panama City 41.37 173 Shijiazhuang 34.28 198 Lahore 13.55
124 Mexico City 51.14 149 Nanjing 41.33 174 Kiev 33.24 199 Lagos 10.70
125 Guadalajara 51.04 150 Qingdao 41.25 175 Novosibirsk 31.92 200 Luanda 0.00

9 Sources: Statista 2021

Vietnam
General information

General information

Capital: Hanoi
Official language: Vietnamese
Main religion: Vietnamese folk religion
Main ethnic group: Kinh (Viet)
Population: 96,462,108
Area: 331,210 sq km
Population density: 308.1 people per sq km
Total real GDP1: US$322.6bn
GDP1 per capita: US$3,314.0
Profit tax: 13.2%
Currency: Dong (VND)
Exchange rate: USD/VND = 23,214.9
Time zone: UTC+7
Calling code: +84

1: Constant US$, see glossary for definition of current and constant

10 Sources: CIA 2020, World Bank 2019, United Nations 2020, International Monetary Fund 2020, Columbia University 2020, Statista 2021
Hanoi
City overview

Capital city Other city General information

Population1 in million in 2021: 4.87

Population growth1 2021-2030: 30.49%

Hanoi
Cost of living in USD: 27,480.00

Life expectancy at birth: 74.9

City product per capita in USD: 5,196.00

Stock exchange: Yes

Airfreight in kt: 700.00

Air passengers in million: 29.30

Ho Chi Minh
City Physicians per 1,000 inhabitants: 0.83

Internet penetration: 42.00%

5G availability: Yes

Number of universities: 21

1: United Nations estimate/forecast

Note: For specific information concerning these KPIs, refer to the slide in the corresponding chapter of the City Report
11 Sources: World Bank 2021, World Bank 2020, HamInfo 2020, United Nations 2019, UN Habitat 2018, Statista 2021
City orientation
Airports

Airport information1
Noi Bai International Airport (HAN), Hanoi

▪ Distance to city center: 30 km

▪ Domestic connections: 15
▪ Total connections: 56

Other airports nearby1: Hai Phong (HPH), Thanh Hoa (THD), Van Don
(VDO)

1: Airports within a range of 200 km

Note: Information will be updated after flight schedule disruptions related to COVID-19 have been resolved
12 Sources: FlightConnections 2019, Statista 2019
SOCIETY

13
Hanoi ranked 121st out of 200 Global Business Cities
in the Society Subindex
Global Business City Ranking: Society

Society results Top 10 cities in Global Business Cities Index: Society

20.00
19.54 19.47 19.40 19.30 19.30 19.09 18.94 18.87 18.80
11.65
Society score
for this city

Society
121st
ranking
for this city

Indicators
The Society Subindex has a range of [0, 20] and
consists of the following weights (w): Population
Growth (w=0.3), Total Population (w=0.1) Life
Expectancy (w=0.2), English Proficiency (w=0.1),
Years of Schooling (w=0.1), Gay Rights (w=0.1), and
Press Freedom (w=0.1). London Calgary Toronto Sydney Mel- Van- Auckland New York Montréal Stock-
bourne couver holm

Note: For the detailed methodology, please refer to the appendix

14 Sources: Statista 2021
This city is growing faster than the other cities in this
region on average
Population growth

Population1,2 in millions in this city and on average for this region

2021 2030 +18.3%

9.0

7.6
+30.5%

6.4

4.9

Hanoi Southeast Asia

1: Population of Urban Agglomerations 2: UN forecast

Note: Regional average based on cities in this region covered by Global Business Cities Reports, The impact of COVID-19 has not been applied in
this forecast,
15 Sources: United Nations 2021, Statista 2021
Inhabitants in this city have 2.6 years less education
than in the regional high performer
Education

Mean years of schooling1 for selected cities this region in 2019

Mean years of schooling
in this city
10.04
12.6

11.6

11.3

10.6

10.2

10.0

8.8

8.3

7.6
Surabaya
Kuala Lumpur

Bangkok

Hanoi
Manila

Jakarta
Singapore

Ho Chi Minh City

Phnom Penh
1: The average number of years of education completed by the population segment aged 25 years and older. This number excludes any years spent
repeating individual grades
16 Sources: globaldatalab 2021, Statista 2021
The level of English proficiency is moderate in this city
English proficiency

The Education First English Proficiency Index Top countries worldwide in 2021
The Index is based on the results of more than 2 million adults in 112 Rank Country Score
countries and regions. English proficiency can serve as one indication
of a city’s competitive advantages and global citizen status. 1 Netherlands 663
2 Austria 641
3 Denmark 636
Low 486 4 Singapore 635
Country Level in 2021 Score in 2021
5 Norway 632

Moderate 548
City Level in 2021 Score in 2021
Top cities worldwide in 2021

Rank City Score

More global results from the Index
1 Amsterdam 682
In 2021, the overall global score for female participants was 498, and
2 Copenhagen 668
the score for male participants was 508. The groups between the
ages of 26-30 and 31-40 performed the highest with a score of 529. 3 Helsinki 659
Europe has the highest regional average, whereas the Middle East
4 Vienna 658
has the lowest.
5 Stockholm 646

Note: The levels are based on index values divided between very low (300-449), low (450-499), moderate (500-549), high (550-599), and very
high (600-800)
17 Sources: Education First 2021, Statista 2021
Cost of living was lower than in this region in general
Living standards

Cost of living¹ in US$ in 2019² Gini coefficient1,³ in 2016² Unemployment rate in % in 2016¹

30,795 0.4 6.7

0.4
27,480

4.1

Hanoi Southeast Asia Hanoi Southeast Asia Hanoi Southeast Asia

1: See glossary for definitions 2: Year of data for Hanoi. The regional average may include data from various years
3: A value of 0 represents total equality in distribution of income within the population, total inequality is represented by a value of 1
Note: Cost of living based on a fairly affluent family of three with two adults and one child studying at a university. Regional average based on
cities in this region covered by Global Business Cities Reports
18 Sources: UN Habitat 2021, STC 2019, CIA Factbook 2021, World Bank 2021, Statista 2021
Life expectancy at birth (1/2)
Life expectancy ranking (1/2)

# City Years # City Years # City Years # City Years

1 Hong Kong1 84.7 26 Incheon 82.4 51 Berlin 80.8 76 Lima 79.5
2 Seoul 84.1 27 Melbourne 82.4 52 Bristol 80.7 77 Sacramento 79.5
3 Fukuoka1 84.1 28 Marseille 82.3 53 Lisbon 80.7 78 Prague1 79.5
4 Nagoya1 84.1 29 Stockholm 82.2 54 Hamburg 80.6 79 Manchester 79.4
5 Sapporo1 84.1 30 Singapore 82.1 55 Athens 80.5 80 New Orleans 79.4
6 Sendai1 84.1 31 Strasbourg 82.1 56 Boston 80.5 81 Charlotte 79.3
7 Yokohama1 84.1 32 Sydney 82.0 57 New York 80.5 82 Houston 79.2
8 Madrid 84.0 33 Busan 81.9 58 Washington D.C. 80.5 83 El Paso 79.1
9 Geneva1 83.6 34 Stuttgart 81.8 59 Brussels 80.4 84 Chicago 79.0
10 Paris 83.6 35 Toronto 81.8 60 Düsseldorf 80.4 85 Cleveland 78.9
11 Toulouse 83.6 36 Oslo 81.7 61 Cologne 80.4 86 Pittsburgh 78.9
12 Sevilla1 83.3 37 Auckland1 81.7 62 Kaohsiung1 80.4 87 Tianjin 78.9
13 Naples1 83.2 38 San Jose 81.6 63 Taipei1 80.4 88 Tampa 78.8
14 Rome1 83.2 39 Rotterdam1 81.6 64 Portland 80.1 89 Jacksonville 78.7
15 Turin1 83.2 40 Montreal 81.5 65 Atlanta 80.0 90 Philadelphia 78.7
16 Lyon 83.1 41 London 81.4 66 Vienna 80.0 91 Memphis 78.6
17 Tokyo 83.0 42 Munich 81.4 67 Austin 80.0 92 Panama City 78.6
18 Milan 82.9 43 Frankfurt 81.2 68 Birmingham 79.8 93 Kansas City 78.4
19 Zürich 82.9 44 Miami 81.2 69 Santiago1 79.7 94 Nashville 78.4
20 Barcelona 82.7 45 Los Angeles 81.1 70 Dallas 79.7 95 St. Louis 78.4
21 Osaka 82.7 46 San Diego 81.1 71 Denver 79.7 96 Doha1 78.3
22 Tel Aviv1 82.6 47 Dublin 81.0 72 Seattle 79.7 97 Albuquerque 78.3
23 Perth1 82.5 48 Helsinki 80.9 73 Copenhagen 79.6 98 Columbus 78.2
24 Calgary1 82.5 49 San Francisco 80.9 74 Minneapolis 79.6 99 Honolulu 78.2
25 Vancouver1 82.5 50 Amsterdam 80.8 75 Phoenix 79.6 100 Bogotá 78.0

1: Country level data

19 Sources: World Bank 2019, Statista 2021
Life expectancy at birth (2/2)
Life expectancy ranking (2/2)

# City Years # City Years # City Years # City Years

101 San Antonio 78.0 126 São Paulo 76.3 151 Sofia1 74.8 176 Casablanca 70.2
102 Louisville 77.9 127 Algiers1 76.3 152 Kuwait City1 74.8 177 Kunming 69.5
103 Krakow1 77.9 128 Belgrade1 76.1 153 Chengdu 74.8 178 La Paz1 69.5
104 Detroit 77.7 129 Ankara1 76.0 154 Riyadh1 74.7 179 Surabaya1 69.4
105 Hangzhou 77.7 130 Istanbul1 76.0 155 Changsha 74.7 180 Phnom Penh1 69.3
106 Montevideo1 77.6 131 Izmir1 76.0 156 Xi‘an 74.7 181 Manila1 69.2
107 Indianapolis 77.6 132 Glasgow 76.0 157 Vilnius1 74.7 182 Ahmedabad1 68.8
108 Dubai1 77.4 133 Harbin 76.0 158 Zhengzhou 74.6 183 Bangalore1 68.8
109 Mexico City1 77.3 134 Fuzhou 75.8 159 Kazan 74.5 184 Chennai1 68.8
110 Quito 77.3 135 Ho Chi Minh City 75.8 160 Puebla 74.5 185 Delhi1 68.8
111 Muscat1 77.3 136 Xiamen 75.8 161 Bangkok 74.4 186 Hyderabad1 68.8
112 Buenos Aires 77.2 137 Belo Horizonte1 75.7 162 Fortaleza 74.4 187 Jaipur1 68.8
113 Warsaw 77.2 138 Brasília1 75.7 163 Santa Domingo1 74.0 188 Kolkata1 68.8
114 Shijiazhuang 77.0 139 Rio de Janeiro1 75.7 164 Almaty1 73.0 189 Lucknow1 68.8
115 Moscow 76.8 140 Chongqing 75.7 165 Dhaka1 72.8 190 Mumbai1 68.8
116 Baltimore 76.6 141 Monterrey 75.6 166 Urumqi 72.4 191 Nagpur1 68.8
117 Nanjing 76.6 142 Saint Petersburg 75.5 167 Lanzhou 72.2 192 Pune1 68.8
118 Suzhou 76.6 143 Kuala Lumpur1 75.5 168 Novosibirsk 72.2 193 Karachi1 66.6
119 Budapest 76.5 144 Beijing 75.4 169 Kiev1 71.8 194 Lahore1 66.6
120 Guangzhou 76.5 145 Shanghai 75.4 170 Cairo1 71.7 195 Luanda1 61.8
121 Jinan 76.5 146 Bucharest1 75.3 171 Tashkent1 71.4 196 Nairobi 61.7
122 Qingdao 76.5 147 Mérida 75.3 172 Yekaterinburg 71.4 197 Accra 61.6
123 Shenzhen 76.5 148 Guadalajara 75.2 173 Guatemala City 71.3 198 Cape Town 56.7
124 Dalian 76.4 149 Hanoi 74.9 174 Vladivostok 71.0 199 Johannesburg 56.7
125 Shenyang 76.4 150 Wuhan 74.9 175 Jakarta 70.8 200 Lagos 51.0

1: Country level data

20 Sources: World Bank 2019, Statista 2021
Hanoi is considered unsafer than the average for this
region
Safety Index

Safety Index value for selected cities in this region in 2020 Background
The Safety Index is published by
Stephane Tajick Consulting, a
0.90
Canadian firm that provides
research and data concerning
business immigration.
0.72 The index is calculated from data
0.65 based on indexes and scores
0.60 from different providers, ranging
0.57 0.56 from UN organizations to NGOs
0.55
and universities to private
enterprises. It consists of the
homicide rates, the estimated risk
0.41
of kidnapping, the security risk, as
well as the political risk. The data
source also contains data from
the World Risk Index, the
Numbeo Safety Index, and the
Global Peace Index. Additional
data comes from the fragility
score provided by the Igarapé
Institute.

Singapore Jakarta Bangkok Hanoi Kuala Ho Chi Phnom Penh Manila The score can reach values
Lumpur Minh City between 1 and -1.

Note: Higher values in this index indicate higher levels of safety

21 Sources: STC 2021, Statista 2021
In 'control on corruption' Vietnam is 56.7 points
behind regional high performer
Institutional framework

Comparison of country and territory scores to highest and lowest scores in the region and worldwide

Gender equality1 in 2020 Gay rights2 in 2019 Control on corruption Freedom of press3 in 2020
in 2020

Vietnam 70.1 Vietnam 67.0 Vietnam 42.3 Vietnam 21.5

France 80.0 Brazil 100.0 Singapore 99.0 Indonesia 62.6

Regional
high/low
Malaysia 67.6 Malaysia 15.0 Cambodia 11.1 Vietnam 21.5

Belgium, Den-
Finland 86.1 mark, Uruguay,
Belgium 100.0 Denmark 100.0 Norway 93.3
Global Sweden
high/low
Pakistan 55.6 Saudi Arabia 4.0 Cambodia 11.1 China4 21.3

1: Index values transformed from 0-1 scale to 0-100 2: Values in percentage. The categorization is grouped as follows: 0-59% for persecuting
countries, 60-69% for intolerant countries, 70-79% resistant countries, 80-89% for tolerant countries, and 90-100% for protecting countries
3: Original values have been inverted to fit in with the other indexes; high values now indicate more freedom than small ones 4: Mainland China
22 Sources: World Economic Forum 2021, Reporters without Borders 2021, World Bank 2021, Franklin&Marshall College 2019, Statista 2020
ECONOMY

23
Hanoi ranked 168th out of 200 Global Business Cities
in the Economy Subindex
Global Business City Ranking: Economy

Economy results Top 10 cities in Global Business Cities Index: Economy

35.00
34.23 33.86
33.09 32.94 32.88 32.83 32.66 32.56 32.46

Economy 17.23
score
for this city

Economy
168th
ranking
for this city

Indicators
The Economy Subindex has a range of [0, 35] and
consists of the following weights (w): GDP per
capita (w=0.3), Unemployment (w=0.3), Corruption
Control (w=0.2), Rent in the City Center (w=0.1), and
Rent in the Suburb (w=0.1).
Munich Dublin Doha Stuttgart Singapore Oslo Zürich Osaka Seattle Frankfurt

Note: For the detailed methodology, please refer to the appendix

24 Sources: Statista 2021
COVID-19 developments in Vietnam
COVID-19 impact

Management of the crises GDP in billion US$

The COVID-19 pandemic has affected the global economy and several
aspects of life in most countries in the world. The degree of impact
452.17
varies across countries in terms of the number of cases and the effects
on the society and economy. This is related to each country’s crisis
management, i.e., the various policies which have been implemented in
the relevant country. Some countries reacted very fast, imposing strict
lockdowns, whereas other countries introduced more moderate policies 344.19
to stop the spread of the virus. 322.58
317.50
In the Lowy Institute Ranking of the relative performance of countries 1
in the crisis, Vietnam was ranked 2nd

10.3k 58
COVID-19 Number of Number of deaths
impact confirmed cases2 related to COVID-192

54k 0.05%
People fully Share of population
Medication
vaccinated2 fully vaccinated2 2019 2020 2021 2025

1: The Lowy Institute measured the relative performance of 98 countries in the pandemic with six measures such as confirmed cases, confirmed
death and tests per thousand people as indicators with data up to January 9th of 2021. Various periods have been observed to show how a
country has managed the pandemic in 36 weeks after the first 100 confirmed cases. For further details also look at Lowy Institute COVID-19
Performance Index 2: As of 14 June 2021; Sources: John Hopkins University 2021, Lowy Institute 2021, Our World in Data 2021, International
25 Monetary Fund 2020, Statista, based on IMF, World Bank, European Commission, OECD, ADB as of Q4 2020
The city GDP per capita of Hanoi was at US$5,196,
being US$62,357 behind regional high-performer
GDP per capita

GDP per capita for selected cities in this region in US$

GDP per capita

in this city
US$5,196
67,553.3

29,090.9

20,226.5

14,945.2

10,503.9

9,196.6

5,196.0

4,422.0

2,001.5
Kuala Lumpur

Bangkok

Surabaya
Hanoi
Manila

Jakarta
Singapore

Ho Chi Minh City

Phnom Penh
Note: See appendix for methodology
1: Varying years. using the latest data available for each city
26 Sources: OECD 2021, Open Data Network 2021, Brookings Institution 2018, Statista 2021
Hanoi's total population was smaller and the city GDP
per capita lower than the regional average
Economic conditions

Total population growth in percentage 2021-2030, total population in millions and City GDP per capita1

Population growth in % Regional average Total

5.0 population: 5 million

0.35
Phnom Penh
0.30 Hanoi

0.25 Ho Chi Minh City

Southeast Asia
0.20 Manila Kuala Lumpur

Jakarta
0.15 Surabaya
Bangkok
0.10

0.05 Singapore

0.00
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000
City GDP per capita in US$

1: Varying years. Using the latest data available for each city
Note: Regional average based on cities in this region covered by Global Business Cities Reports
27 Sources: OECD 2021, United Nations 2018, Open Data Network 2021, Brookings Institution 2018, Statista 2021
It takes 16 days to start a business in Vietnam
compared to the regional average of 34.9 days
Business environment: administrative framework

Business administration in 2019

Time needed Time needed Time needed to fulfill Time needed to resolve
to start a business1 to register property tax requirements insolvency2

Vietnam 16.0 days 53.5 days 384.0 hours 5.0 years

Southeast Asia 34.9 days 59.1 days 210.6 hours 2.8 years

Delivery in 2019

Time needed Time needed Efficiency of

to export3 to import3 customs clearance4

Vietnam 50.0 hours 76.0 hours 3.0

Southeast Asia 63.1 hours 64.3 hours 2.8

1: Number of calendar days needed to complete the procedures to legally operate a business 2: Number of years from the filing for insolvency
in court until the resolution of distressed assets 3: Time associated with compliance with the documentary requirements of all government
agencies of the origin economy, the destination economy and any transit economies 4: In 2018, includes e.g., speed, simplicity, and predictability
of customs clearance (5 = high efficiency, 1 = low efficiency); Note: Regional average value is calculated using data from the countries covered by
28 the Statista Country Reports and the source; Sources: World Bank 2020, Statista 2021
The number of companies headquartered in this city
with a revenue above US$5 million was 24
Companies: Revenue

Headquarters of a company Companies1 with the highest revenue in 2020

As the location where strategic decisions for the entire corporation are
made, a company’s headquarters coordinates a broad range of tasks,
# Company Industry Revenue2,3 Employees
from labor-intensive endeavors (e.g., research & development) to
management-related functions (e.g., employee supervision). These 1 Vietnam National Chemicals & 5,199.8 25,392
secondary value-added activities secure the primary value-added Petroleum Corp. Resources
activities that are directly relevant to production. At the headquarters of
large companies in particular, the concentration of staff with above- 2 Vietnam Technological & Finance & 1,562.6 11,802
average income has a considerable effect on taxes. Commercial Joint Stock Insurance
Bank
3 Tien Phong Commercial Finance & 775.6 7,194
Joint Stock Bank Insurance
Number of companies1 with revenues above US$5
4 FLC Group JSC Construction 566.0 n.a.
million
5 Son Ha International Corp. Consumer 224.9 1,825
Goods & FMCG
6 Petrovietnam Chemical & Chemicals & 91.4 n.a.
24 Services Corp. Resources
in 2020
7 Thaiholdings JSC Real Estate 76.4 n.a.
Revenues
8 SCI E&C JSC Construction 64.8 n.a.
9 Phuc Hung Holdings Services 64.5 n.a.
Construction JSC
10 Thanh Nam Group JSC Metals & 61.0 n.a.
Electronics

1: Revenue data includes 31 companies with headquarters in this city 2: See glossary for definitions 3: In millions
29 Sources: Statista Company DB 2021, Wirtschaftsdienst 2015, Statista 2021
The number of companies headquartered in this city
with total assets above US$5 million was 31
Companies: Total assets

Headquarters of a company and its relevance for a city Companies1 with the highest total assets in 2020
Corporate headquarters have a significant effect on the finances of the
municipality where they are located. Because better-paid activities such
# Company Industry Assets2,3 Employees
as research and development are carried out at company headquarters,
such municipalities can receive a higher share of taxes than those
1 Vietnam Technological & Finance & 18,446.4 11,802
without corporate headquarters.
Commercial Joint Stock Insurance
Bank
2 Tien Phong Commercial Finance & 8,657.3 7,194
Joint Stock Bank Insurance
3 Vietnam National Chemicals & 2,564.1 25,392
Petroleum Corp. Resources
Number of companies1 with total assets above US$5
4 FLC Group JSC Construction 1,587.7 n.a.
million
5 Thaiholdings JSC Real Estate 438.5 n.a.
6 Son Ha International Corp. Consumer 189.0 1,825
31 Goods & FMCG
in 2020 7 SCI E&C JSC Construction 115.6 n.a.
Total Asset
8 Kosy JSC Real Estate 92.3 n.a.
9 Song Da No 11 JSC Metals & 90.9 n.a.
Electronics
10 Phuc Hung Holdings Services 85.2 n.a.
Construction JSC

1: Total assets data includes 31 companies with headquarters in this city 2: See glossary for definitions 3: In millions
30 Sources: Statista Company DB 2021, Wirtschaftsdienst 2015, Statista 2021
International hotel brands are not well represented in
Hanoi
International hotel brands

Presence in 2021

International hotel brands Hotel presence International hotel brands Hotel presence

P O

P O

P P

O O
O P

Note: Hotel chains are sorted by brand value, information based on Statista research.
Sources: Brand Finance 2021, Statista 2021, HiltonHotels 2021, Marriott 2021, Hyatt 2021, HolidayInn 2021, Hampton 2021, Shangri-La 2021, DoubleTree 2021, Mercure 2021,
31 Courtyard 2021, Intercontinental 2021
In Hanoi International restaurant chains have a strong
presence
International restaurant chains

Presence in 2021

International restaurant chains Restaurant presence International restaurant chains Restaurant presence

P P

P P

P P

O O

P O

Note: Restaurant chains are sorted by brand value, information based on Statista research
Sources: Brand Finance 2021, Statista 2021, Starbucks 2021, McDonalds 2021, KFC 2021, Subway 2021, Domino’’sPizza 2021, PizzaHut 2021, TacoBell 2021, TimHortons 2021,
32 Tripadvisor 2021
At US$793, the average rent in this city was US$3,272
lower than the highest for this region
Average rent (1/2)

Rents for a 3-room apartment in the city center for selected cities in US$ in 2021
Rent in this city US$793
4,065

2,268

2,098

1,432

1,228

1,186

870

793

722
Bangkok

Kuala Lumpur

Surabaya
Hanoi
Manila

Jakarta
Singapore

Ho Chi Minh City

Phnom Penh

Note: Data is based on entries on the Numbeo platform in November 2021

33 Sources: Numbeo 2021, Statista 2021
At US$474, the average rent in this city was US$1,865
lower than the highest for this region
Average rent (2/2)

Rents for a 3-room apartment outside the city center for selected cities in US$ in 2021
Rent in this city US$474
2,339

906

901

810

708

706

554

475

474
Bangkok

Kuala Lumpur

Surabaya

Hanoi
Manila

Jakarta
Singapore

Ho Chi Minh City

Phnom Penh

Note: Data is based on entries on the Numbeo platform in November 2021

34 Sources: Numbeo 2021, Statista 2021
This city’s Real Estate Index value is higher than the
regional average
Real Estate Index

Real Estate Index1 value for selected cities in this region in 2020 Background
The Real Estate Index ranks world
0.84 cities based on the stability,
0.79 affordability, and level of taxation
0.78
0.76 of their property market.
0.70
Figures such as the income ratio,
0.62 mortgage as percentage of
income, gross rental yield in the
0.52 city center, apartment rent (3
bedrooms) in the city center, and
the price per square meter to buy
an apartment in the city center
have been included in the overall
index. In 2020, the index value of
0.26 the cities ranges between 1.00
and -1.76. Still, certain factors
cannot be included, such as the
quality of building materials or
architectural value.
Kuala Lumpur

Bangkok

Surabaya
Hanoi

Jakarta

Manila
Ho Chi Minh City

Singapore
Phnom Penh

1: External index based on data which may vary from the data shown in this report
Note: A higher value denotes a higher ranking in the Real Estate Index
35 Sources: STC 2020, Statista 2021
OPERATIONAL
ENVIRONMENT

36
Hanoi ranked 126th out of 200 Global Business Cities
in the Operational Environment Subindex
Global Business City Ranking: Operational Environment

Operational Environment results Top 10 cities in Global Business Cities Index: Operational Environment

35.00

31.09 30.95
29.62 29.35
Operational 14.99 28.46
Environment 27.58 27.27
26.53 25.88
score
for this city
.

Operational 126th
Environment
ranking
for this city
Indicators
The Operational Environment Subindex has a range
of [0, 35] and consists of the following weights (w):
Number of Physicians (w=0.20), Number of
Universities (w=0.20), Air Passengers (w=0.15), Air
Freight (w=0.15), Internet Penetration (w=0.15), and
Smartphone Penetration (w=0.15).
Hong Doha Shanghai Kuala Beijing Madrid Guang- Singapore Paris Seoul
Kong Lumpur zhou

Note: For the detailed methodology, please refer to the appendix

37 Sources: Statista 2021
The internet penetration in Hanoi is lower than the
regional average
Information exchange

Smartphone penetration rate in 2020¹ Internet penetration rate in 2009

76.0% 64.8%
71.1%

42.0%

Hanoi Southeast Asia Hanoi Southeast Asia

1: Country-level data; Penetration rate in this city may vary

Note: The regional average is based on the cities in this region that are covered by Global Business Cities Reports
38 Sources: Statista Digital Market Outlook 2021, Statista 2021
With 5G networks already available, Hanoi is well
prepared for tomorrows connected world
5G availability

Key figures The advantages of 5G

In a world that is becoming increasingly connected, 5G technology
availability: Yes brings some advantages.

Due to higher speed, increased bandwidth, and enhanced capacity

Number of MNOs1: 1 compared to LTE networks, 5G enables users to make non-delayed
video calls, thus improving their quality of life. Because of its low latency,
it is also seen as a key factor when it comes to autonomous driving and
further developing smart mobility.

Since 5G will also speed up the Internet of Things, it will be essential for
5G network operator(s) in this city
optimizing automized production processes.
5G technology can also be used by companies to enable cloud office
solutions, making them more resilient to health crises like the COVID-19
pandemic as well as enabling their employees to live in the countryside
without having to commute between their home and workplace.

1: Mobile network operators

Note: The availability of 5G connections may vary inside the city; 5G coverage may also vary depending on the chosen network operator
39 Sources: Statista 2021
This city has a stock exchange
Stock exchange

Stock exchange locations in 2021

Stock exchange No Yes

40 Sources: Statista 2021

Grab is a ride-hailing app used in Hanoi
Transport

Ride-hailing apps in this city Access to public transport1 Transportation options

50%

P
Bus

Ferry
O

Car-sharing O

Tram / Metro
O

n.a.
Bike-sharing P
Hanoi Southeast Asia

1: Proportion of population with access to public transport in percent. Regional average based on latest available data and on cities in this region
covered by Global Business Cities Reports
41 Sources: UN habitat 2021, Statista 2021
Air passenger numbers at 29.3 million were higher
than the regional average
Logistics

Air freight in kt¹ in 2019 Air passengers in million in 2020 Shipping freight in mTEU²

700.00 29.30 9.64

28.17

555.27

n.a.
Hanoi Southeast Asia Hanoi Southeast Asia Hanoi Southeast Asia

1: Thousand metric tons 2: Million Twenty-foot Equivalent Units, standard unit for container freight. This unit of measurement does not consider ports that do not handle containers
but bulk freight or liquids. Hence, the total annual freight handled at a specific port might be higher than the TEU value suggests.
Note: Regional average based on latest available data and on cities in this region covered by Global Business Cities Reports.
42 Sources: TTNews 2019, ESPO 2019, Statista 2020
There are 0.83 physicians per 1000 inhabitants in this
city
Social infrastructure

Number of physicians per 1,000 inhabitants

0.1 - 2 2.1 - 4 4.1 - 6 6.1 - 8 >8

Note: When data at the city level was not available, country-level data was used instead, year may vary between the cities shown in this map.
Taiwan data includes doctors of Chinese medicine
43 Sources: World Bank 2021, Statistical Yearbook Taiwan 2021, UN Habitat 2016, Better Doctor 2016, Statista 2021
The density of universities in this city was lower than
regional average
Educational Institutes

Number of universities1 in 2021 Number of international schools in 2021

47 52

21
21

Hanoi Southeast Asia Hanoi Southeast Asia

1: The regional averages of the universities are only representative within the region and not for a worldwide comparison because of different educational standards and classification
of qualifications, see glossary for further explanations
Note: Regional average based on cities In this region covered by Global Business Cities Reports
44 Sources: International Schools Database 2021, internationalschoolsearch.com 2021, Statista 2021
CHARISMA

45
Hanoi ranked 91st out of 200 Global Business Cities in
the Charisma Subindex
Global Business City Ranking: Charisma

Charisma results Top 10 cities in Global Business Cities Index: Charisma

10.00

Charisma 2.59
score 7.78
for this city 6.93 6.86
6.33 6.22
.
5.44
5.07 4.94
Charisma
91st 4.61

ranking
for this city

Indicators
The Charisma Subindex has a range of [0, 10] and
consists of the following weights (w): Number of
Museums (w=0.25), Instagram Tags (w=0.25), Air
Pollution (w=0.25), and Number of Embassies
(w=0.25).
New York London Tokyo Paris Moscow Istanbul Brussels Dubai Berlin Los
Angeles

Note: For the detailed methodology, please refer to the appendix

46 Sources: Statista 2021
There are 88 embassies, consulates or foreign
representations in this city
International relations

Foreign missions
0 - 13 14 -51 52 - 96 97 - 184 185- 383

Note: In cities with important international organizations the number of foreign representations can be higher than the overall number of
countries and territories worldwide. This is due to separated representational offices connected to the concerned organizations (e.g., a countries
representation at NATO, EU, UN, etc.)
47 Sources: EmbassyPages 2021, Lowy Institute 2019, Statista 2021
Hanoi was less popular on Instagram than cities in
this region
Tourism

Number of Instagram hashtags in million in 2021 Number of international tourists in million in 2017

24.9 7.8

5.0

8.0

Hanoi Southeast Asia Hanoi Southeast Asia

1: City data is referring to international tourists/arrivals

Note: Regional average based on cities In this region covered by Global Business Cities Reports; due to lack of data availability, the tourist data
included in the regional average may differ from the definition of tourist numbers used for this city
48 Sources: Instagram 2021, Statista 2021
This city has more museums than the regional
average
Cultural environment

Selected essential cultural assets Number of museums in 2021

82

65

Figures on the city’s cultural environment

5
Number of in 2021
sister cities

1
UNESCO in 2021
heritage sites1
Hanoi Southeast Asia

1: UNESCO heritage sites located in the metropolitan land area

Note: The regional average is based on the cities in this region that are covered by the Global Business Cities Reports
49 Sources: UNESCO 2021, Tripadvisor 2021, Statista 2021
At 37.9 µg/m3, the air pollution concentration was
279% higher than the WHO guideline
Air pollution

Air pollution in PM10 µg/m3 as annual mean in 2020¹

6 - 37 38 - 69 70 - 102 103 - 199 200 - 294

1: Year may vary between the cities shown in this map

Note: The data displayed in this graphic can be found in the associated data file. World Health Organization (WHO) has set air quality guideline at 10.0 PM10 µg/m3 measured as
annual mean. See glossary for definitions
50 Sources: Iqair 2021, Statista 2021
Hanoi has more EV charging stations than most big
cities in this region
Charging stations

Number of EV charging stations1 in selected cities from this region in 2020 Background
As awareness of the risks created
by climate change increases,
93

many countries have been

88

attempting to cut down on CO²

83

82
emissions. However, it seems that

78
the level of motivation to do so
varies considerably from one
place to another. With more and
more regions and cities turning to

50
zero-emission cars, there is an
ever-greater need for additional
electric car charging stations. This
diagram shows how far cities
have come in this regard as
compared to others in the region.

19
These values can be used to

13
assess a city’s degree of
adaptability in a changing world.

2
Bangkok

Kuala Lumpur

Surabaya
Hanoi
Jakarta

Manila
Singapore
Ho Chi Minh City

Phnom Penh
1: Electric car charging stations.
51 Sources: Statista 2021
 APPENDIX

52
Global Business Cities
Cities and regions (1/2)

Algeria Belo Horizonte Kunming Ecuador Greece Ireland

Algiers Bulgaria Lanzhou Quito Athens Dublin
Angola Sofia Nanjing Egypt Guatemala Israel
Luanda Cambodia Qingdao Cairo Guatemala City Tel Aviv
Argentina Phnom Penh Shanghai Finland Hong Kong (SAR)1 Italy
Buenos Aires Canada Shenyang Helsinki Hong Kong Milan
Australia Toronto Shenzhen France Hungary Naples
Perth Montréal Shijiazhuang Lyon Budapest Rome
Sydney Vancouver Suzhou Marseille India Turin
Melbourne Calgary Tianjin Paris Ahmedabad Japan
Austria Chile Urumqi Strasbourg Bangalore Fukuoka
Vienna Santiago Wuhan Toulouse Chennai Nagoya
Bangladesh China (Mainland) Xiamen Germany Delhi Osaka
Dhaka Beijing Xi’an Berlin Hyderabad Sapporo
Belgium Changsha Zhengzhou Cologne Jaipur Sendai
Brussels Chengdu Colombia Düsseldorf Kolkata Tokyo
Bolivia Chongqing Bogotá Frankfurt Lucknow Yokohama
La Paz Dalian Czechia Hamburg Mumbai Kazakhstan
Brazil Fuzhou Prague Munich Nagpur Almaty
São Paulo Guangzhou Denmark Stuttgart Pune Kenya
Rio de Janeiro Hangzhou Copenhagen Ghana Indonesia Nairobi
Brasília Harbin Dominican Republic Accra Jakarta
Fortaleza Jinan Santo Domingo Surabaya

53 1: Special Administrative Region of the People‘s Republic of China

Global Business Cities
Cities and regions (2/2)

South Korea Nigeria Romania Switzerland United States of America Minneapolis

Busan Lagos Bucharest Genève Austin Nashville
Incheon Norway Russia Zürich Albuquerque New Orleans
Seoul Oslo Kazan Taiwan Atlanta New York
Kuwait Oman Moscow Kaohsiung Baltimore Philadelphia
Kuwait City Muscat Novosibirsk Taipei Boston Phoenix
Lithuania Pakistan Saint Petersburg Thailand Columbus Pittsburgh
Vilnius Karachi Vladivostok Bangkok Charlotte Portland
Malaysia Lahore Yekaterinburg Turkey Chicago Sacramento
Kuala Lumpur Panama Saudi Arabia Ankara Cleveland San Antonio
Mexico Panama City Riyadh Istanbul Dallas San Diego
Guadalajara Peru Serbia Izmir Denver San Francisco
Mérida Lima Belgrade Ukraine Detroit San Jose
Mexico City Philippines Singapore Kiev El Paso Seattle
Monterrey Manila Singapore United Arab Emirates Honolulu St. Louis
Puebla Poland South Africa Dubai Houston Tampa
Morocco Krakow Cape Town United Kingdom Indianapolis Washington D.C.
Casablanca Warsaw Johannesburg Birmingham Jacksonville Uruguay
Netherlands Portugal Spain Bristol Kansas City Montevideo
Amsterdam Lisbon Barcelona Glasgow Los Angeles Uzbekistan
Rotterdam Qatar Madrid London Louisville Tashkent
New Zealand Doha Sevilla Manchester Memphis Vietnam
Auckland Sweden Miami Ho Chi Minh City
Stockholm Hanoi

54
Regional division for countries and territories covered
in this report
Regions

Australia & Oceania: Australia and New Zealand
Central & Western Europe: Austria, Belgium, Czechia, France,
Germany, Hungary, Ireland, Netherlands, Poland, Switzerland, and
United Kingdom
East Asia: Mainland China, Hong Kong (SAR), Japan, South Korea, and
Taiwan
North America: Canada, Mexico, and United States
Northern Europe: Denmark, Finland, Lithuania, Norway, and
Sweden
Sub-Saharan Africa: Angola, Ghana, Kenya, Nigeria and South Africa
South Asia: Bangladesh, India, and Pakistan

Eastern Europe: Bulgaria, Romania, Russia, and Ukraine Southeast Asia: Cambodia, Indonesia, Malaysia, Philippines,
Singapore, Thailand, and Vietnam
Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Dominican
Republic, Ecuador, Guatemala, Panama, Peru, and Uruguay Southern Europe: Greece, Italy, Portugal, Serbia, Spain, and Turkey

North Africa: Algeria, Egypt and Morocco West & Central Asia: Israel, Kazakhstan, Kuwait, Oman, Qatar, Saudi
Arabia, United Arab Emirates, and Uzbekistan

55
Methodology and data used in this report
Data description and methods (1/2)

Data sources
The Global Business City Reports present quantitative data from various private and public sources of information. These sources include data
providers such as the International Monetary Fund, the World Bank, the United Nations, the OECD, the World Economic Forum and Statista itself. The
data sources are indicated in footnotes throughout the report.

Forecasts and estimates

The population estimates for cities are based on forecasts by the United Nations and Statista. For English language skills in mostly anglophone
countries, i.e. Canada, United States, Ireland, United Kingdom, Australia, and New Zealand, missing data was imputed for the subindex by assigning the
highest value assigned in the data. In other cases, national level data or mean values were used to impute missing values.

Difference between current and constant US$

Data reported in current US$ reflect the value the currency has in a particular year. Current data series are influenced by the effect of price inflation and
differences in exchange rates and the comparability of growth rates between countries is limited. Data expressed in constant US$ reflect the value of a
currency in a particular base year. The individual base year listed in a country’s national accounts differs from country to country. Constant series are
used to measure the true growth of a series by adjusting for the effects of price inflation.

56
 fdf

About the forecasting methods

Data description and methods (2/2)

Depending on the availability of data and the quality of the data time
range, the following methods were used to prepare forecasts: Trend Forecasting
analysis (moving average analysis, second-order statistical smoothing Methods
and multiplier analysis), linear regressions, as well as subjective
estimates. These estimates reflect years of industry expertise and vast
know-how. Quantitative Qualitative
Time-Series Time-Series
Industry-specific sales, revenue, and shipment calculations were made Analysis Analysis
according to the relevant economic and business indicators, such as:

▪ The general macro-economic developments within the economy Press Reports,

(gross domestic product) Causal Trend Industry Expertise,
Processes Projections Expert Assessments
▪ Foreign trade developments (import and export numbers) etc.

Second-Order
Regression
Statistical
Analysis
Smoothing

Moving
Average
Analysis

Multiplier
Analysis

57
Methodology: Global Business City Index
Index Methodology

Index construction
𝐺𝑙𝑜𝑏𝑎𝑙 𝐵𝑢𝑠𝑖𝑛𝑒𝑠𝑠 𝐶𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥 =
The indicators for the Global Business Cities Index are chosen based on 0.35 𝐸𝑐𝑜𝑛𝑜𝑚𝑦 + 0.2 𝑆𝑜𝑐𝑖𝑒𝑡𝑦 + 0.35 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐸𝑛𝑣𝑖𝑟𝑜𝑛𝑚𝑒𝑛𝑡 + 0.1(𝐶ℎ𝑎𝑟𝑖𝑠𝑚𝑎)
their relevance to the conceptual framework represented by the chapter
divisions in this report as well as their availability for all 200 cities. The
final selection of indicators and the corresponding weights are based on
the latest economic literature and interdependences. The chapters Air
Economy and Operational Environment have an overall weight of 0.35 Passengers Number of
Population (w=0.25) Museums
each. Society has a weight of 0.2 and Charisma has a weight of 0.1. GDP per Capita
Growth
(w=0.30) (w=0.25)
(w=0.30) Air Freight
Normalization (w=0.25)

In order to compare the key indicators, we use the min-max Smartphone

Air Pollution
normalization method. The advantage of this method is that the Life expectancy Penetration
(w=0.25)
relationships within the data are preserved. Every value linearly maps a Unemployment (w=0.20) (w=0.15)
number in the range [0, 1] by employing this formula: (w=0.30) Internet
Schooling Penetration
𝐾𝑃𝐼 − 𝑚𝑖𝑛 (w=0.10) (w=0.15)
𝐾𝑃𝐼𝑛𝑜𝑟𝑚𝑎𝑙𝑖𝑧𝑒𝑑 = Number of
max − 𝑚𝑖𝑛 Press Freedom Embassies
Corruption (w=0.10) Number of (w=0.25)
Missing values and aggregation Level Universities
(w=0.20) Gay Rights (w=0.20)
In the very few cases of missing values (<0.01%), we assume the country (w=0.10)
or regional average to be the value for the city. To make this more Rent in City Center English Proficiency
Physicians per Instagram Tags
(w=0.10) (w=0.10)
coherent for the reader, the value is multiplied by 100. For each chapter, 1,000 Capita (w=0.25)
Rent Suburb Total Population
a normalized index is calculated within the range [0, 35], [0,20] or [0, 10] (w=0.10) (w=0.10)
(w=0.20)
depending on the chapter. The final Index is created by adding the four
subindices. A city can have a Global Business City Index in the range [0, Economy Society Operational Charisma
100]. Environment

58 Sources: Han, Kamber and Pei 2016, Statista 2021

Glossary of terms
Glossary (1/3)
City GDP: The concept of GDP applied at a city- or metropolis-wide
level.
City GDP per capita: the city's GDP divided by the city's population
City Product: See City GDP
Congestion level: A calculation based on the traffic data of all
TomTom users. To attain this value, free-flow travel times of all vehicles
in the entire road network are analyzed 24 hours per day, 365 days a
year.
Constant US$: Data expressed in constant US$ show the data for
each year in the value of a particular base year. The base year of each
country's national accounts is country specific. Constant series are used
to measure the true growth of a series by adjusting for the effects of
price inflation
Cost of living: Most everyday expenses: groceries and restaurants,
clothing, transportation and fuel, utilities, etc. These indicate the
expenses of a fairly affluent family, but do not fall within the category of
luxury item expenses. Rent is calculated separately. The estimate is
based upon three active spenders in the family (the couple and the
oldest child attending university).
59
Current US$: Data reported in current US$ reflect the value the
currency has in a particular year. Current data series are influenced by
the effect of price inflation and differences in exchange rates, and the
comparability of growth rates between countries is limited
Density of universities: The amount of existing public and other
relevant universities in a city and its surrounding area. Other relevant
universities can be religious (ecclesiastical, Islamic) or private institutions
that are publicly funded. For the regions Australia & Oceania, Northern
and Central & Western Europe only public universities are included. The
regional averages are only representative within the region and not for a
worldwide comparison because of different educational standards and
classification of qualifications
Efficiency of customs clearance: Includes e.g. speed, simplicity,
and predictability of customs clearance (5 = high efficiency, 1 = low
efficiency)
Gini coefficient: A measure reflecting the distribution of income or
consumption expenditure within a society. Depending on its
presentation format, the Gini coefficient can have values between 0 and
1 or 0% and 100%. In the distribution of income (or consumption
expenditure), complete equality is represented by 0 or 0%, and total
inequality is represented by 1 or 100%.
Glossary of terms
Glossary (2/3)
GDP: The abbreviation for gross domestic product, which is defined as
the monetary value of all finished goods and services made within a
country during a specific period
Headquarters: The location (country/city) of the office that serves
as the administrative centre of the enterprise.
Internet penetration: Share of individuals in the country who have
used the Internet (from any location) in the last 3 months
Mean years of schooling: The average number of years of
education completed by the population segment aged 25 years and
older. This number excludes any years spent repeating individual
grades.
PM10: Particulate matter (PM) with particles smaller than 10 µg
Purchasing Power Parity (PPP) : Ratio of the number of people
with income below the poverty line
60
Real GDP: Real gross domestic product (GDP) is an inflation-adjusted
measure that reflects the value of all goods and services produced by an
economy in a given year, expressed in base-year prices, and is often
referred to as "constant-price", "inflation-corrected" GDP or "constant
dollar GDP". Unlike nominal GDP, real GDP can account for changes in
price level and provide a more accurate figure of economic growth
Revenue: The gross sales and other operating revenue, not
counting discounts, returns, and allowances
Shipping freight: Shipping freight is shown in TEUs (twenty-foot
equivalent units), a standard unit for container freight. TEUs are a good
measure of the annual freight handled at a port. However, this unit of
measurement does not take into account ports that do not handle
containers but bulk freight or liquids. Hence, the total annual freight
handled at a specific port might be higher than the TEU value suggests.
If a city has more than one industrial port, only the busiest port in terms
of freight or passenger numbers was selected and used for
comparisons. The data was obtained from various sources
Glossary of terms
Glossary (3/3)

Time needed to export/import: Time necessary to comply with

all the procedures required to export/import goods

Time needed to resolve insolvency: Number of years from the

filing for insolvency in court until the resolution of distressed assets

Time needed to start a business: Number of calendar days

needed to complete the procedures to legally operate a business

Total assets: Represent the sum of total current assets, long-term

receivables, investment in unconsolidated subsidiaries, other
investments, net property plant and equipment, deferred tax assets, and
other assets

Unemployment rate: Unemployment refers to the share of the

labor force that is without work but available for and seeking
employment

61
About the Statista Company Database

Find out more on statista.com/companydb/about

About the Statista Digital Market Outlook

Find out more on: statista.com/outlook/digital-markets

About Statista Q

Visit Statista Q

Find out more on www.q.statista.com

64
About Statista Content & Information Design

Visit our website

Find out more on statista.design/en/

Authors

Volker Staffa Jonas Sieveneck Luana Stefan

Team Lead Analyst Analyst

v.staffa@statista.com j.sieveneck@statista.com l.stefan@statista.com

Volker Staffa studied Business with a focus on
Logistics and Supply Chain Management in
Hamburg and Rhode Island. He has been
writing and drafting Industry and Country
Reports for Statista since 2012. Before working
as an analyst at Statista, Volker gathered
experience in the aviation industry, working for
the German Air Traffic Control and Lufthansa
Technik.
Jonas Sieveneck studied Political Science and Luana Stefan studied Economics at the
International Criminology in Marburg and Ruperto Carola University of Heidelberg.
Hamburg. His initial work experience at Before joining Statista, she gathered
Statista was acquired as a student while experience in distribution network strategy
completing his master’s degree. He has been a and business analysis.
Junior Analyst since Autumn 2020.

Aswathy Venugopal Lixiao Hu Huu-Tam Nguyen

Junior Analyst Junior Analyst Analyst

A. Venugopal@statista.com L.Hu@statista.com h-t.nguyen@statista.com

Aswathy studies Computer Science at the Lixiao Hu studied Informatics and Huu-Tam Nguyen studied Economics, Law, and
University of Passau. She completed her Business with focus on Marketing in Cologne, Politics in Hanoi, Hamburg, and Lüneburg.
Bachelors in Information Technology from Atlanta, Tarragona, and Chengdu. Before
Mahatma Gandhi University, India. ​Before joining Statista, she gained prac- Before joining Statista, he conducted research
joining Statista, she gathered experience as a tical experience in marketing area, working for in international macroeconomics, finance, and
Business Analyst from Amazon, Munich. the international companies both in China politics in various research institutes in
and Germany. Vietnam and Germany.

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