Hanoi
Hanoi operates as Vietnam's central nervous system: $43B FDI, political capital driving institutional reform and public investment for 2045 high-income target.
Hanoi functions as Vietnam's political command center and secondary economic pole, embodying the dual-capital dynamic common in rapidly industrializing nations. While Ho Chi Minh City dominates commercial activity with 25% of GDP, Hanoi's $43.48 billion in cumulative FDI (second nationally) reflects its role as the gateway for government-connected industries and northern manufacturing hubs.
The capital's economic strategy differs fundamentally from its southern counterpart. Hanoi pursues institutional reform and public investment as growth drivers—the government has committed to national-scale projects including Long Thanh International Airport and a North-South high-speed railway. This top-down development philosophy contrasts with Ho Chi Minh City's more market-driven FDI absorption.
Vietnam's goal of reaching high-income status by 2045 depends critically on Hanoi's capacity to execute these infrastructure investments and implement the institutional reforms that the OECD identifies as essential for productivity growth. The city's 7.09% GDP growth in 2024 and 8.23% Q3 2025 surge demonstrate sustained momentum. But Hanoi's value lies less in manufacturing output (which concentrates in surrounding provinces like Bac Ninh and Hai Phong) than in its function as the central nervous system coordinating national development policy. Every major regulatory decision that enables Vietnam's industrial expansion originates here.