Hanoi (VNA) - Hanoi’s economy sustained strong growth in the first seven months of this year, with foreign direct investment (FDI) nearly doubling year-on-year to 3.75 billion USD, cementing its status as a magnet for global capital.
Retaining FDI investors
Hanoi’s state budget revenue hit 427.1 trillion VND (16.4 billion USD), up 39.9% year-on-year and reaching 83.1% of the annual target, the municipal Statistics Office reported. Retail and consumer services rose 11.9%, exports grew 12.3%, transport and post delivery climbed 16.4%, and tourism jumped 21.2%. Cultural and educational sectors progressed, while social welfare was guaranteed.
Since 1986, Hanoi has raked in 61.5 billion USD in FDI across 7,710 projects, ranking second nationwide. Real estate took the lead with 36.54% of total inflows, followed by manufacturing and processing (23.61%), commerce (12.43%), and scientific activities (12.4%). Japan, Singapore, and the Republic of Korea led investors among 117 countries and territories.
Deputy Director of the municipal Finance Department Le Trung Hieu attributed this success to global corporations’ strong confidence in the city’s business environment and its sustainable growth potential.
Hanoi’s strategic location, modern transport networks, and skilled workforce from numerous universities give it a competitive edge, especially in sci-tech.
Streamlined regulations and investment incentives, coupled with a market of over 8 million with rising incomes, drive investor retention. Administrative mergers are freeing up suburban land to lure even more cash, Hieu noted.
Adopting comprehensive growth strategies
To hit an 8% GRDP growth target, Vice Chairman of the municipal People’s Committee Truong Viet Dung outlined plans to boost domestic consumption, industrial output, private sector growth, and disburse 100% of public investment.
Hanoi is going high-tech in agriculture, pushing for digital medical records in all public hospitals by the third quarter and digital literacy for 80% of urban households, and syncing up 1,917 administrative tasks with 4,400 commune and ward accounts and 13,000 user accounts. The city is also backing 50 startups at Hoa Lac Hi-Tech Park, targeting 500 million USD in cutting-edge FDI.
Hanoi is focusing on building a sustainable and modern urban model that develops in harmony with surrounding rural areas. In the third quarter of 2025, the city aims to complete four key planning projects covering underground urban space, Red River and Duong River urban areas, and parking system in Q3/2025.
It is accelerating the progress of the Ring Road 4 – Hanoi Capital Region project, three metro lines as well as six major bridges crossing the Red River, namely Hong Ha, Me So, Thuong Cat, Ngoc Hoi, Tran Hung Dao, and Van Phuc.
Tackling air, wastewater, and solid waste pollution is also a focus, with the Yen Xa wastewater plant set to launch in the third quarter and other projects in Viet Hung and Nam An Khanh moving fast. The city is acting to slash pollution in major rivers like To Lich. Lu and Set by half before 2026.
The capital is working hard to effectively operate the two-tier government model across 126 new communes and wards, with people and businesses placed at the centre.
Hanoi is shooting for a per capita income of 172.4 million VND and a budget revenue of 505.4 trillion VND this year, reinforcing its role as Vietnam’s economic engine despite global headwinds./.
