The city you choose affects your customers, your hiring, your logistics and the daily life of the staff you send. This guide compares Vietnam's three main business cities: Ho Chi Minh City, Hanoi and Da Nang.
One change matters before you compare. On 1 July 2025, Vietnam reduced its provinces and centrally run cities from 63 to 34 under Resolution 202/2025/QH15. Ho Chi Minh City now includes the former Binh Duong and Ba Ria–Vung Tau provinces. Da Nang now includes the former Quang Nam province. Hanoi did not change. Older guides, maps and addresses can still use the old names.
Ho Chi Minh City: the largest market and business network
After the merger, Ho Chi Minh City covers about 6,773 km² and has about 14 million residents. It is Vietnam's largest city economy and has the largest network of foreign companies, service providers and international schools.
What it offers:
- Market and network: many customers, suppliers, banks, law firms and other service providers in one place.
- Industry and ports: the city now includes the industrial areas of the former Binh Duong and the port areas of the former Ba Ria–Vung Tau.
- Air links: Tan Son Nhat International Airport has many domestic and international routes.
- Public transport: Metro Line 1 (Ben Thanh – Suoi Tien, 19.7 km) started commercial service on 22 December 2024. It is the city's first metro line. Most daily travel is still by road.
What to plan for: heavy traffic, and higher office and housing costs in central districts.
Hanoi: the capital and seat of government
Hanoi is Vietnam's capital. The central government and most foreign embassies are in Hanoi, including the German Embassy. This is useful for companies that work closely with public bodies or need regular contact with their embassy.
What it offers:
- Access to government: many central approvals and policy discussions take place in Hanoi.
- Northern industry: Hanoi is close to the northern manufacturing provinces and the port city of Hai Phong.
- Air links: Noi Bai International Airport serves the north.
- Graduates: the city has many universities and a large pool of graduates.
- Public transport: Line 2A (Cat Linh – Ha Dong) opened in November 2021. The elevated Nhon – Cau Giay section of Line 3 opened in August 2024. The underground section of Line 3 is not open yet.
What to plan for: a colder winter than the south, traffic, and longer travel times between the city centre and the industrial zones.
Da Nang: the central coast at a smaller scale
Da Nang is the main city of central Vietnam. Since July 2025 it also includes the former Quang Nam province.
What it offers:
- Location: an international airport and a seaport on the central coast.
- Scale: a smaller and calmer city. Office and living costs are often lower than in the two largest cities. Check current data for your sector and area.
- Quality of life: this can help when you want to keep staff for a long time.
What to plan for: a smaller local market, fewer specialist service providers and fewer international school places than in Ho Chi Minh City or Hanoi. Hiring senior specialists can take longer.
How to choose
Ask these questions before you decide:
- Where are your customers? Put your team close to the people who buy from you.
- Where are your suppliers and ports? Check real transport times, not only the distance on a map.
- Which public bodies will you deal with? Some steps are easier near the capital.
- Which skills do you need? Check the local job market for the roles you must fill.
- What do your staff and their families need? Housing, schools and healthcare differ a lot between the three cities.
Visit each city you are considering before you sign a lease. After the 2025 mergers, check that the address on your documents uses the current administrative names.
Moving staff to the city you choose
When your company sends staff to Vietnam, they need a home, a school for their children and a clear start. MAIVN helps your staff and their families settle in: housing search, neighbourhood guidance, school options, healthcare and insurance information, and local orientation. We do not give legal or tax advice. If you have questions, contact us.