Using radar to estimate and forecast precipitation as input for hydrological models has become increasingly popular in recent years because of its superior spatial and temporal simulation compared with using rain gauge data. This study used radar-based quantitative precipitation estimation (QPE) to select the optimal parameter set for the MIKE URBAN hydrological model and radar-based quantitative precipitation forecasting (QPF) to simulate inundation in Nam Dinh city, Vietnam. The results show the following: (1) radar has the potential to improve the modeling and provide the data needed for real-time smart control if proper bias adjustment is obtained and the risk of underestimated flows after heavy rain is minimized, and (2) the MIKE URBAN model used to calculate two simulation scenarios with rain gauge data and QPE data showed effectiveness in combining the application of radar-based precipitation for the forecasting and warning of urban floods in Nam Dinh city. The results in Scenario 2 with rainfall forecast data from radar provide better simulation results. The average relative error in Scenario 2 is 9%, while the average relative error in Scenario 1 is 15%. Using the grid radar-based precipitation forecasting as input data for the MIKE URBAN model significantly reduces the error between the observed water depth and the simulated results compared with the case using an input rain gauge measured at Nam Dinh station (the difference in inundation level of Scenario 2 using radar-based precipitation is 0.005 m, and it is 0.03 m in Scenario 1). The results obtained using the QPE and QPF radar as input for the MIKE URBAN model will be the basis for establishing an operational forecasting system for the Northern Delta and Midland Regional Hydro-Meteorological Center, Viet Nam Meteorological and Hydrological Administration.