From industrial plants to high-tech and R&D centers, Hanoi is shaping a new ecosystem to draw foreign direct investment with high technology and added value.

From industrial plants to high-tech and R&D centers, Hanoi is shaping a new ecosystem to draw foreign direct investment with high technology and added value.

Shaping a High-Tech Ecosystem

Hanoi is changing its mindset in attracting foreign investment. While location, land and labor resources were once the key advantages for the capital to draw in FDI, the city is now targeting a new investment flow centered on technology, innovation, highly qualified personnel and sustainable development.

 National Assembly President Tran Thanh Man at the conference announcing the Hanoi Capital Master Plan with a 100-year vision (June 29). Photo: Cong Dat/VNP

 

At a conference held in June to promote investment and announce the master plan for Hanoi with a 100- year vision, the city approved in principle investment in 138 domestic projects totaling around 3.5-3.6 quadrillion dong (roughly 135-138 billion US dollars), while attracting about 3.2 billion US dollars in FDI. Behind these numbers is a clear strategic vision where Hanoi looks beyond investment capital to find investors that can partner with it to drive sustainable, long-term growth.

 Hanoi People's Committee Chairman Vu Dai Thang addresses the conference announcing the Hanoi Capital Master Plan with a 100-year vision. Photo: Cong Dat/VNP

Vu Dai Thang, Deputy Secretary of the Municipal Party Committee and Chairman of the Municipal People's Committee, said that Hanoi will focus on building new growth drivers while further promoting a transparent, stable, favorable investment climate.

Samsung's largest R&D center in Southeast Asia is based in Hanoi. Photo: SAMSUNG

By June 2026, Hanoi had over 9,200 active FDI projects with total registered capital of over 74.6 billion US dollars. Apart from manufacturing, the city prioritizes high value-added sectors including high technology, semiconductors, artificial intelligence (AI), data centers, next-generation industrial parks, smart logistics, clean energy, circular economy, healthcare, high-quality education, and transit-oriented development (TOD). These priorities mark a shift in the city's FDI strategy from quantity to quality.

According to Associate Professor Dr. Luong Tuan Anh, De Montfort University (UK), Hanoi has distinctive strengths, being the country’s political, financial, scientific and technological hub, an advantage no other locality can match. This gives the city an abundant pool of highly skilled labor and a knowledge and innovation ecosystem well suited to attracting FDI with high knowledge and technology content, R&D activity, and high-value services. Furthermore, Hanoi is home to policymaking bodies, financial institutions, diplomatic missions and major corporations - a particular draw for multinationals seeking a location for a regional office or coordination center.

The 300ha Thang Long Industrial Park largely attracts foreign-invested enterprises, particularly those from Japan. Photo: Tran Thanh Giang/VNP

Dr. Phan Huu Thang, Chairman of the Viet Nam Industrial Zone Finance Association and former head of the Foreign Investment Agency under the Ministry of Planning and Investment (now Ministry of Finance), agreed that Hanoi has the potential to become Viet Nam's leading hub for quality FDI and a regional competitor.

International groups’ commitments reinforce this trend. After nearly 30 years operating at Thang Long Industrial Park, Sumitomo Corporation (Japan) continues its long-term investment in Hanoi. For technology giant NVIDIA, its ambition goes beyond commercial business to co-develop an AI ecosystem in Hanoi, spanning computing infrastructure, foundation models, workforce training and largescale applications.

Manufacturing electric motors, gearboxes and speed reducers at Sumitomo Heavy Industries Vietnam's factory. Photo: Tran Thanh Giang/VNP

Manufacturing electric motors, gearboxes and speed reducers at Sumitomo Heavy Industries Vietnam's factory. Photo: Tran Thanh Giang/VNP

 

These commitments show that investors no longer view Hanoi as an assembly base, but as a strategic center for talent sourcing, technology development, R&D, supply chain integration and high value-added operations. This can be seen in the city’s two major zones: Thang Long Industrial Park and Hoa Lac HiTech Park.

From Manufacturing to Hitech Frontier

Thang Long Industrial Park represents Hanoi's established industrial foundation. For years, the park has hosted leading enterprises in electrical engineering, electronics, precision engineering, automotive, motorcycle, and supporting industries. Industry leaders such as Canon, Panasonic, Yamaha Motor, DENSO, TOTO, Mitsubishi, Toshiba, Sumitomo, Molex, Enkei and FCC have formed a large-scale manufacturing base that connects Hanoi to global supply chains.

Today, Thang Long Industrial Park extends beyond traditional assembly lines. Many FDI firms here are expanding their workforce training, technology transfer, R&D and innovation centers. Consequently, a project's value is measured not only by factory output, but by the knowledge, technology and human capital built behind a production line.

Young Vietnamese engineers at Panasonic Corporation receive professional training with support from Japan and Vietnam’s leading technology universities. Photo: Tran Thanh Giang/VNP

Tech engineers at Panasonic's plant in Viet Nam. Photo: Tran Thanh Giang/VNP

 

Panasonic is a prime example. Employing around 7,000 workers, the group runs four manufacturing companies, an R&D firm and a research center serving both domestic and export markets. This year, Panasonic has launched its HVAC Innovation Center and broken ground on its expanded factory at Thang Long Industrial Park II.

Panasonic Vietnam General Director Taka Fujino said that Hanoi consumers’ willingness to invest in quality and genuine value has helped attract hi-tech and valueadded FDI projects.

For Sumitomo Heavy Industries Vietnam (SHIV), its story in Viet Nam reveals an internal transformation. Over 20 years ago, SHIV chose Hanoi for its stable environment, young labor force and competitive operating costs. However, General Director Hiroumi Hamajima emphasized that its Hanoi plant is no longer a low-cost production site. CNC machining, automation, robotics, digital transformation and realtime data traceability are now fully integrated into its daily operations. By investing in advanced technology and human resource development, SHIV has turned into a strategic global node aligned with international supply chain diversification.

Hanoi’s semiconductor industry is expanding through investment cooperation with Japan and other countries. Photo: Tran Thanh Giang/VNP

Panasonic Vietnam has highly qualified Vietnamese staff. Photo: Tran Thanh Giang/VNP

According to Vu Quoc Huy, Deputy Head of the Management Board of Hanoi Hi-Tech and Industrial Zones, Hoa Lac is positioning itself as a hub for Vietnam-Japan technological cooperation, aiming to attract R&D centers and develop shared research infrastructure.

Notably, Hoa Lac is also a controlled regulatory sandbox for emerging technology like autonomous vehicles, unmanned aerial vehicles (UAVs), service robotics, smart grids, IoT, digital twins, automated logistics, and green urban solutions.

Hanoi People's Committee Chairman Vu Dai Thang visits a high-tech enterprise in Hanoi on the occasion of Lunar New Year 2026. Photo: Trung Nguyen/VNA

From Thang Long’s industrial foundation to Hoa Lac’s future technology space, Hanoi is shifting its FDI strategy from capital volume to quality investment that can drive technology transfer, talent cultivation and growth for domestic enterprises. This trajectory positions Hanoi as a leading regional investment hub which offers global investors a comprehensive ecosystem for research, innovation and long-term development.

Story: Bich Van, Ha Anh & Nguyen Tuoi

Photos: Tran Thanh Giang, Cong Dat/VNP, VNA & Files