According to a report presented at the 25th session of the Hanoi People’s Council on July 8, the city’s GRDP grew by 7.63% in the first half of 2025, surpassing the national average of 7.52% and exceeding the city’s projected growth scenario. Growth is forecast to hit 8.18% in quarter III and 8.53% in quarter IV, ensuring the annual target is met.

State budget revenue in the city reached VND392.2 trillion in the first half, representing an increase of 51.4% year-on-year and accounting for nearly 30% of total national revenue. The city attracted nearly US$3.7 billion in foreign direct investment, the highest in the past five years.

In infrastructure development, Hanoi has completed all 83 urban planning projects, and key transportation projects are being accelerated under the "green lane" mechanism. These include the Tu Lien Bridge, which began construction on May 19, and upcoming projects such as the Tran Hung Dao, Ngoc Hoi, Van Phuc, and Thuong Cat bridges, which are expected to break ground on September 2, 2025.

To meet the 8% growth target, the city has outlined key directions for the second half of the year, including boosting domestic consumption; supporting small businesses and informal traders in transitioning to formal enterprises; accelerating public investment and disbursement; and promoting digital transformation and innovation.

The city will develop sustainable urban areas and night-time economies, tackle environmental pollution, and effectively operate the two-tier government model.

Notably, Hanoi on July 1 launched its two-tier government model after restructuring its administrative units at the commune/ward level, reducing from 526 to 126 units. After more than a week of implementation, all new wards and communes are operating smoothly with no service disruptions.

The municipal administration emphasised that placing citizens and businesses at the centre remains a guiding principle, and that public satisfaction is the key parameter in evaluating government effectiveness in this new phase.

At the same time, the city will successfully organise major events, including the 80th anniversary of the August Revolution and National Day (September 2), as well as Party congresses at all levels leading up to the 14th National Party Congress.

Hanoi prepares for smooth transition to two-tier local government model

The Hanoi People’s Council has passed 11 key resolutions to ensure the effective operation of the two-tier local government model, which officially took effect from July 1, 2025.