Hanoi continues to solidify its position as the driving force of Vietnam’s economy, recording robust growth in the first seven months of 2025, despite ongoing global uncertainties according to the Viet Nam News. The capital attracted nearly $3.75bn in foreign direct investment (FDI), almost double the figure from the same period last year, reaffirming its status as a prime destination for global capital.

State budget revenue reached VND427.1 trillion (approximately $16.4bn), a 39.9% increase year-on-year, achieving over 83% of the annual target. The figures were released by the Hanoi Statistics Office, highlighting strong performances across key sectors.

Since the inception of economic reforms in 1986, Hanoi has attracted a cumulative FDI inflow of $61.5bn across 7,710 projects, ranking second nationally. The lion’s share of investment has gone into real estate, accounting for 36.54% of the total. Manufacturing and processing followed with 23.61%, while commercial ventures and scientific activities received 12.43% and 12.4% respectively. Among the 117 countries and territories with investments in the city, Japan, Singapore, and South Korea remain the most prominent the Viet Nam News report adds.

The city's success has been attributed to growing confidence among multinational corporations in Hanoi’s investment environment and long-term economic prospects. Its central location, comprehensive transport infrastructure, and a skilled workforce—bolstered by numerous universities—offer it a competitive edge, particularly in science and technology.

Policy stability, streamlined administrative procedures, and various investment incentives have further reinforced investor interest. A burgeoning population of over 8mn with rising incomes provides a large and dynamic domestic market. Meanwhile, administrative restructuring has freed up land in suburban districts, creating fresh opportunities for development.

To meet its target of 8% gross regional domestic product (GRDP) growth, Hanoi’s authorities are focusing on bolstering domestic consumption, accelerating industrial production, and stimulating private sector activity. Full disbursement of public investment funds also forms a key part of the city's economic strategy.

Innovation is central to the capital’s development approach. High-tech agricultural practices are being encouraged, and by the third quarter of 2025, digital medical records are expected to be implemented across all public hospitals. Simultaneously, the city is aiming to enhance digital literacy for 80% of urban households and integrate nearly 2,000 administrative procedures with local ward and commune digital systems.

According to the report, at Hòa Lạc Hi-Tech Park, support is being provided to 50 startups, with the goal of attracting $500mn in new high-tech foreign investment.

Hanoi is pushing forward with a vision of a modern, sustainable urban model that integrates seamlessly with neighbouring rural areas. Several major urban planning initiatives are scheduled for completion in the third quarter of 2025, including those focusing on underground infrastructure, development along the Red and Đuống Rivers, and upgrades to the city’s parking systems.

The capital is also expediting work on major transport infrastructure. Key projects include the Ring Road 4 – Hà Nội Capital Region, three metro lines, and six new bridges spanning the Red River: Hồng Hà, Mễ Sở, Thượng Cát, Ngọc Hồi, Trần Hưng Đạo, and Vạn Phúc.

Environmental management remains a pressing concern. Measures are being implemented to tackle air, wastewater, and solid waste pollution. The Yên Xá wastewater treatment plant is expected to commence operations in the third quarter, while additional facilities in Việt Hưng and Nam An Khánh are advancing rapidly. The city also aims to halve pollution levels in major rivers, including the Tô Lịch, Lủ, and Sét, by 2026.

Efforts are ongoing to effectively implement the two-tier local government model across 126 newly designated communes and wards, with a clear emphasis on improving administrative efficiency and placing citizens and businesses at the heart of governance.

Looking ahead, Hanoi is targeting a per capita income of VND172.4mn and total budget revenue of VND505.4 trillion for 2025—figures that would underscore its position as Vietnam’s foremost economic powerhouse.