Since the adoption of a “socialist-oriented market economy” (1986), Hanoi has seen an average of 3% urban growth per year. Today, the government aims to make Hanoi the national gateway for foreign direct investment (FDI), competing with regional poles like Bangkok and Jakarta. With a population of 8 million, Hanoi is the second largest city in the country (behind Ho Chi Minh City) and generates around 15% of national GDP. Its rapid urbanization followed the desakota pattern, characterized by (i) a demographic boom triggered by rural-urban migrations; (ii) densification of the urban fabric across the extended region; (iii) urban sprawl through large-scale property developments; and (iv) the development of economic and industrial zones. Infrastructure is being upgraded to international standards through the modernization of the road network and major transit developments.

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