According to the report presented at the 28th session of the Hanoi People’s Council (16th term), Hanoi has maintained impressive recovery and growth momentum in 2025, with economic indicators reaching record highs. The city’s GRDP is estimated to grow by 8.5%, with the economy scaling to approximately USD 63.5 billion, contributing 12.5% to the national GDP.
A standout achievement is the local budget revenue surpassing VND 600 trillion for the first time, reaching VND 641.71 trillion, significantly exceeding projections. Total local budget expenditure as of October 31, 2025, hit VND 105.7 trillion, a 40% increase year-on-year; development investment spending rose by 42.7%, while regular expenditures grew by 37.7%. For the full year, total budget expenditure is expected to reach VND 166.2 trillion, meeting the initial annual plan.
Trade activities continued to thrive, with exports reaching USD 20.65 billion and imports at USD 47.12 billion. The average Consumer Price Index (CPI) for the year was well-controlled, projected between 3.6% and 4.1%, lower than the previous year. Total social investment capital neared VND 595 trillion, while FDI attraction soared to USD 4.1 billion, a 52% increase.
The business environment saw marked improvements, with over 32,400 new enterprises established, bringing the total number of active businesses to more than 424,000. Public investment disbursement as of November 26, 2025, exceeded VND 53.9 trillion (64.4% of the plan), driving the completion or commencement of numerous infrastructure, transportation, and cultural projects.
Despite these positive outcomes, one target remains unmet: total social investment capital, due to slower progress in land-related projects.
Looking ahead to 2026, Hanoi aims for an 11% GRDP growth, with services at 11.1%, industry at 9.5%, construction at 12.8%, and agriculture at 4.3%. Services, accounting for 66% of GRDP, are identified as the primary growth driver. The city will focus on developing trade, tourism, finance, and banking; establishing a national e-commerce platform; and modernizing payment systems, logistics, and traceability.
Total social investment capital is projected at VND 730 trillion.
Hanoi will launch strategic projects such as the Olympic Urban Area, the Red River Landscape Axis, Tran Hung Dao Bridge, the Gia Binh Airport connector under PPP, and Ring Road 4 components.
The private sector is a key pillar, with efforts to foster large conglomerates and encourage household businesses to transition into formal enterprises.
Additionally, Hanoi will develop science and technology infrastructure, create innovation parks, promote digital transformation, and advance the digital economy, green economy, gaming industry, and intellectual property. Pilot sandbox initiatives and data market development are also on the agenda.
Notably, the city will implement a land resource exploitation plan, focusing on areas around Ring Road 4 and TOD projects, aiming to increase days with good to moderate air quality to over 80%.
Revitalizing Ring Road 2.5: Addressing Repeated Encroachments to Prevent Project Delays
The Ring Road 2.5 project, connecting Dam Hong to National Highway 1, has been under construction and facing delays for nearly a decade. Currently, the project has reached the Dinh Cong Urban Area – National Highway 1 section, but continues to encounter land clearance issues. In some areas, previously cleared land has been reoccupied, further complicating construction efforts.
Revising Resolution 98: Government Proposes Establishment of Ho Chi Minh City Free Trade Zone
On the afternoon of December 3rd, as part of the 10th session agenda, the Government presented to the National Assembly a draft Resolution to amend and supplement certain provisions of Resolution No. 98/2023/QH15. This Resolution focuses on piloting specific mechanisms and policies for the development of Ho Chi Minh City. A key highlight of the draft is the addition of provisions for the establishment of the Ho Chi Minh City Free Trade Zone.
Ten Wards and Communes in Hanoi Still Lagging Behind in Land Clearance for Ring Road 4 Project
The completion of the parallel road section of Ring Road 4 passing through Hanoi is expected by the end of 2025. However, with 10 out of 17 communes and wards still pending, the project timeline has been extended to 2026.
Proposing Amendments to Resolution 98 to the National Assembly: Incorporating the Establishment of the Ho Chi Minh City Free Trade Zone
On the afternoon of December 3rd, as part of the 10th session agenda, the Government presented to the National Assembly a draft Resolution to amend and supplement certain provisions of Resolution No. 98/2023/QH15. This Resolution focuses on piloting specific mechanisms and policies for the development of Ho Chi Minh City. A key highlight of the draft is the addition of provisions for the establishment of the Ho Chi Minh City Free Trade Zone.
Hanoi Terminates Posco E&C’s Urban Development Project
Investors failed to comply with the mandated investment procedures, prompting the Hanoi People’s Committee to issue a decision terminating the validity of all documents and directives related to the Ngoc Liep – Dong Truc Urban Area (Zone 9) project by Posco E&C.
