Hà Nội's economy thrives with record FDI flow

Hà Nội's economy thrives with record FDI flow

Hà Nội is shooting for a per capita income of VNĐ172.4 million and a budget revenue of VNĐ505.4 trillion this year, reinforcing its role as Việt Nam’s economic engine despite global headwinds

A worker at a factory in Hà Nội City. — VNA/VNS Photo

Hà Nội’s economy sustained strong growth in the first seven months of this year, with foreign direct investment (FDI) nearly doubling year-on-year to US$3.75 billion, cementing its status as a magnet for global capital.

Hà Nội’s state budget revenue hit VNĐ427.1 trillion ($16.4 billion), up 39.9 per cent year-on-year and reaching 83.1 per cent of the annual target, the municipal Statistics Office reported.

Retail and consumer services rose 11.9 per cent, exports grew 12.3 per cent, transport and post delivery climbed 16.4 per cent, and tourism jumped 21.2 per cent. Cultural and educational sectors progressed, while social welfare was guaranteed.

Since 1986, Hà Nội has raked in $61.5 billion in FDI across 7,710 projects, ranking second nationwide. Real estate took the lead with 36.54 per cent of total inflows, followed by manufacturing and processing (23.61 per cent), commerce (12.43 per cent), and scientific activities (12.4 per cent). Japan, Singapore, and the Republic of Korea led investors among 117 countries and territories.

Deputy Director of the municipal Finance Department Lê Trung Hiếu attributed this success to global corporations’ strong confidence in the city’s business environment and its sustainable growth potential.

Hà Nội’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, Hiếu noted.

Adopting comprehensive growth strategies

To hit an 8 per cent GRDP growth target, Vice Chairman of the municipal People’s Committee Trương Việt Dũng outlined plans to boost domestic consumption, industrial output, private sector growth, and disburse 100 per cent of public investment.

Hà Nội is going high-tech in agriculture, pushing for digital medical records in all public hospitals by the third quarter and digital literacy for 80 per cent 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 Hòa Lạc Hi-Tech Park, targeting $500 million in cutting-edge FDI.

Hà Nội 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 Đuống River urban areas, and parking system in Q3/2025.

It is accelerating the progress of the Ring Road 4 – Hà Nội Capital Region project, three metro lines, as well as six major bridges crossing the Red River, namely Hồng Hà, Mễ Sở, Thượng Cát, Ngọc Hồi, Trần Hưng Đạo, and Vạn Phúc. 

Tackling air, wastewater, and solid waste pollution is also a focus, with the Yên Xá wastewater plant set to launch in the third quarter and other projects in Việt Hưng and Nam An Khánh moving fast. The city is acting to slash pollution in major rivers like Tô Lịch. Lủ and Sét 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.

Hà Nội is shooting for a per capita income of VNĐ172.4 million and a budget revenue of VNĐ505.4 trillion this year, reinforcing its role as Việt Nam’s economic engine despite global headwinds. 

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