Urban Transformation Lessons from Ho Chi Minh City, Bilbao, and Madrid

In an era shaped by rapid urbanisation, climate pressure, and social transformation, cities such as Ho Chi Minh City, Bilbao, and Madrid illustrate how context-sensitive strategies can rejuvenate infrastructure and promote sustainable development. Recent observations from these cities reveal a rich spectrum of approaches that envision inclusive and resilient urban futures.

Reimagining the City for People and Innovation

Each of these cities has centred its broader transformation on catalytic projects that integrate physical renewal with social and economic revitalisation.

Left: Photo of Nguyen Hue Street; Right: Photo of Café Apartment

In 2015, Ho Chi Minh City converted Nguyen Hue Street into a pedestrian promenade. Formerly a busy vehicular route, it has become a central public space that supports cultural events and civic life. This transformation has energised surrounding developments. A notable example is Café Apartment, a former residential block that has been informally transformed into a multi-storey cluster of cafes and creative studios. This reflects the city's bottom-up model of innovation, where adaptability and loose regulation have enabled grassroots enterprise to thrive.

Left: Photo of Guggenheim Bilbao Museum; Right: Birds eye view of Zorotzaure Island in April 2025

Bilbao’s urban reinvention, internationally symbolised by the Guggenheim Museum, also includes infrastructure and public realm upgrades such as river clean-ups, car park relocations, and mobility improvements. The transformation continues with the development of Zorrotzaurre Island, home to institutions like the DigiPen Institute and Mondragon University which are key players in Bilbao’s shift towards a knowledge-based economy. These efforts reflect a coordinated strategy that brings together environmental renewal, mobility enhancements, and cultural investment.

Photo of revegetated river as part of Madrid Río project

Madrid’s transformation through the Madrid Río project redefined how cities can reclaim infrastructure. By rerouting and covering parts of the M-30 ring road, the city restored riverfront access and connected once-divided neighbourhoods through a continuous green corridor. This project paved the way for complementary policies on emissions reduction, smart mobility, and the promotion of start-ups. Another notable transformation is La Nave, an innovation hub situated in a repurposed factory that now supports entrepreneurs through programmes, events, and public access.

Governance: Vision, Agility, and Partnership

These urban transformations were enabled by governance models that aligned leadership, decision-making, and public interest.

Bilbao fostered institutional coherence through organisations such as Bilbao Ria 2000 and Metropoli 30. These bodies acted as coordinators for public investment and ensured strategic continuity in projects like Andoibarra and Zorrotzaurre. Their role in linking infrastructure with social inclusion has been critical, particularly through investments in accessible public spaces and transit.

Madrid applied a collaborative governance model in large-scale projects such as Madrid Nuevo Norte. A consortium was formed involving municipal, regional, and national governments, partnered with private sector actors to co-develop plans and share implementation responsibilities. This approach also extended to innovation districts, where La Nave was established as an initiative to foster entrepreneurship and digital skills through programmes supported through public-private partnerships.

Ho Chi Minh City, while operating within a more centralised governance structure, has demonstrated significant progress through strategic urban initiatives. By granting land-use rights to private developers in areas such as Thu Thiem and Binh Duong, the city has successfully attracted investment and facilitated the creation of new urban districts. These developments reflect a growing willingness to experiment with market mechanisms and private-sector collaboration. Although challenges remain around planning flexibility and public engagement, these early steps suggest an evolving governance model that is increasingly responsive to the demands of rapid urban growth.

The Future of Urban Transformation

The future of urban transformation, as illustrated by Ho Chi Minh City, Bilbao, and Madrid, will be shaped by how effectively cities harness integrated planning, dynamic urban governance, and collaborative ecosystems. Across all three cities, successful transformation has taken place due to an alignment of vision, institutions, and needs. Moving forward, it will be cities that adopt these principles that will succeed in creating liveable cities with a high quality of life, vibrant economy, and a sustainable environment.

By Adib Jalal, Senior Assistant Director, CLC