Hanoi, the heart of Vietnam’s political and cultural life, is charting a new course, aiming to transform itself into a modern, smart, and sustainable capital. Amid globalisation, the Fourth Industrial Revolution, and the unpredictable tides of global change, the city is leaning into its role as Vietnam’s economic engine, with sights set on becoming a leading regional hub for economy, culture, science, and innovation. Major infrastructure facilities, smart city projects, and sweeping digital transformation are underway, reflecting Hanoi’s ambition to reinvent itself as a city in constant renewal.
Resilience through challenges
President Ho Chi Minh, the revered architect of modern Vietnam, once entrusted the Hanoi Party Organisation with a lofty charge:
To make the capital “peaceful, joyful, and prosperous”
“And a model for the nation”
The city has shouldered that mandate with tenacity, steering through historic turning points with a blend of wisdom, grit, and solidarity with the people. From the August Revolution of 1945 to the globe-shaking triumph at Dien Bien Phu in 1954, the “Hanoi – Dien Bien Phu in the Air” campaign of 1972, and the 1975 Spring Great Victory that reunified the country, Hanoi has been a crucial part of Vietnam’s saga. It also joined armed forces and people nationwide in the just struggles to defend the southwestern and northern borders, firmly safeguarding national independence, sovereignty, and territorial integrity, while fulfilling international duties.
The city’s resilience was not only proven in wartime but also in the way it faced challenges during the Doi Moi (renewal) era. From city leaders to grassroots officials, armed forces, and mass organisations, Hanoi stood shoulder to shoulder with its citizens to surmount challenges and reinforce the strength of national unity. This has deepened public trust in the Party, the authorities, and the political system, creating an internal source of strength that has enabled Hanoi to achieve notable, comprehensive, and proud successes in recent years.
Politburo member and Secretary of the Hanoi Party Committee Bui Thi Minh Hoai
The city has maintained decades of continuous growth. Over nearly four decades of Doi moi (Renewal), Hanoi’s labour productivity has increased 7% per year, outpacing the national average. Its state budget revenue has shattered records, surpassing 410 trillion VND (15.5 billion USD at the current exchange rate) – the highest for domestic collection in 2023. In 2024, the sum topped 509 trillion VND, with nearly 94% coming from domestic sources, keeping Hanoi at the top nationwide. In the first seven months of 2025 alone, the city collected 427.1 trillion VND, equivalent to 83.1% of its annual target and a 39.9% surge year-on-year.
Even as global economic turbulence rattles markets, Hanoi has still emerged as a beacon for foreign direct investment (FDI). Since 1986, the city has consistently ranked among Vietnam’s top FDI recipients, with cumulative inflows of about 61.5 billion USD across 7,710 active projects, second nationwide. In just the first seven months of 2025, the registered FDI stood at 3.75 billion USD, nearly double the previous year’s figure for the same period.
Deputy Director of the municipal Department of Finance Le Trung Hieu attributed this success to various factors, including investor confidence in the local business environment and development potential, bolstered by administrative reforms, transparent regulations, and targeted incentives.
“With the two-tier local governance system, Hanoi will have stronger momentum to boost investment attraction. Optimising resources by merging administrative units and streamlining the apparatus will reduce overlaps and improve governance efficiency. Expanding development space will also create clean land reserves attractive to investors, especially in suburban areas”.
Deputy Director of Hanoi Department of Finance Le Trung Hieu
Hanoi’s local two-tier governance model actively supports citizens. (Photo: VNA)
Ambition to break through
“Hanoi will lead by example, embracing bold reforms to propel Vietnam into a new era of development”
Party General Secretary To Lam
In response, Secretary Hoai announced a political campaign, the first of its kind in Vietnam, to align with the Party leader’s vision of “a new era — that of national rise”. The campaign has reinforced unity across the political system, built consensus among citizens, and instilled a heightened sense of responsibility among Party members and officials. The municipal Party Organisation has also spearheaded efforts to streamline its political apparatus, boosting effectiveness and efficiency and complying with the Party Central Committee’s policies.
“The world is undergoing epochal changes, and Vietnam stands at a historic turning point as it enters a new era of national rise. As the country’s growth engine, Hanoi is brimming with aspirations and confidence to overcome challenges and join nationwide efforts to build a strong and prosperous nation where every citizen can enjoy wealth and happiness in the new era.”
To achieve the strategic goals for fast and sustainable development, Hanoi plans to balance economic growth with cultural preservation and environmental protection, along with the security, safety and well-being of its citizens, based on five pillars. These consist of culture, people, and millennia-old heritage; a green and digital economy; modern and integrated infrastructure; digital society and smart city development; and science-technology development and innovation. In particular, culture, people, and heritage will remain the bedrock, interwoven with green transition, digital transformation, and a circular economy.
By 2030, Hanoi aims to become a “civilised, modern, and cultured” city, a regional and national growth powerhouse with extensive global integration and competitiveness to rival other Asian capitals.
By 2045, the capital envisions itself as a globally connected city with a distinctive identity, advanced industry, mastery of key technologies, and per capita GRDP exceeding 36,000 USD. It aspires to rank among the world’s top 100 cities for innovation while fostering a high quality of life and securing comprehensive economic, cultural, and social development.
From the historic autumn of 1945 to the present, Hanoi has travelled an 80-year journey marked by pride and resilience. In an era of globalisation, its ambition is not only about growth figures or megaprojects but also embodied in the resolve of a new generation to build a capital that’s civilised, modern, inclusive, and globally integrated, yet steadfastly rooted in its cultural soul./.
Hanoi is gracefully beautiful in autumn. (Photo: VNA)