Political situation in Vietnam

Construction Boom to Transform Hanoi into a City

Vietnam is aiming for double-digit economic growth. In pursuit of it, the capital Hanoi is undergoing a major transformation.

The sound of hydraulic hammers, excavators and the sound of concrete being demolished can be heard all over the city. The goal is to transform Hanoi into an ultra-modern metropolis within 100 years, reports the AP.

In the first half of 2026 alone, Hanoi has spent $2.4 billion, equivalent to around SEK 22.8 billion, on clearing land for around 1,500 projects. According to local authorities, the investment includes flood protection and measures to reduce air pollution.

But the investment is not without risk. Nguyen Khac Giang, a visiting scholar at the ISEAS–Yusof Ishak Institute in Singapore, warns that the construction boom could push up property prices and make banks vulnerable to losses if the market weakens.

– The projects offer great economic opportunities, but at the same time there are risks that must be taken seriously, he says.

Hanoi is being demolished and rebuilt – residents pay the price

Vietnam is investing heavily in developing its economy. The capital, Hanoi, is undergoing a construction boom that is set to transform the city into a high-tech center within the next 100 years, reports the AP.

Similar projects in China and other Asian countries have come at the expense of residents who have been forced to move to new suburbs with inadequate services and infrastructure.

– We can only wait. I don’t know where they will move us, says Nguyen Thi Nhan, whose house has been demolished.

She has not yet received any compensation and now lives in a rented apartment with her family and parents.

– We want to continue living here. Our family has lived here for generations, says another resident, Van, who, out of fear, only gives her first name.