Hanoi has the highest Human Development Index among the cities in Vietnam. Though representing only 3.6 percent of the country's population and 0.3 percent of the national territory, Hanoi contributes 8 percent to the national GDP and 45 percent of the Red River Delta's economy.
Industrial production in the city has experienced a rapid boom since the 1990s, with average annual growth of 19.1 percent from 1991–1995, 15.9 percent from 1996–2000, and 20.9 percent during 2001–2003. In addition to eight existing industrial parks, Hanoi is building five new large-scale industrial parks and 16 small- and medium-sized industrial clusters. The non-state economic sector is expanding fast, with more than 25,000 businesses currently operating under the Enterprise Law.
Trade is another strong sector of the city. In 2003, Hanoi had 2,000 businesses engaged in foreign trade, having established ties with 161 countries and territories. The value of the city's export grew by an average of 11.6 percent each year from 1996–2000 and 9.1 percent during 2001–2003. The economic structure also underwent important shifts, with tourism, finance, and banking playing an increasingly important role.
Agriculture, previously a pillar of Hanoi's economy, has been reformed through the introduction of new high-yield plant varieties and livestock, and the application of modern farming techniques.
Along with its economic growth, Hanoi's appearance has also changed significantly, especially in recent years. Infrastructure is constantly being upgraded, with new roads and an improved public transportation system. The rate of telephone users was 30 per 100 people in 2003. New urban areas are growing rapidly, with 1.5 million square meters of housing constructed during 1996–2000 and 1.3 million square meters built in 2003 alone.
Social services have been developed in both scale and quality. The public health care network has been strengthened, ensuring at least one doctor for each commune and ward.