As Hanoi undergoes rapid urbanization, the city faces major challenges: traffic congestion, air pollution, population pressure, and growing travel demand. The development of an urban railway system (metro) is therefore a strategic solution. More than a transport project, the Hanoi Metro represents a foundation for building a smart and sustainable city.
Hanoi Metro – The New Infrastructure Pillar
Reducing congestion & improving the environment
-
- Hanoi has nearly 8 million residents and 7 million vehicles, with motorbikes accounting for over 80%.
- Metro will reduce dependence on private vehicles, cutting CO2 emissions and improving air quality.
- Each metro line can carry 200,000–400,000 passengers daily.
Integrated urban mobility
-
- Metro lines are planned to connect with buses, BRT, ring roads, and national railways.
- Once integrated, metro will become the backbone of public transport, enabling smart urban mobility.
See also: High-speed rail and lessons from Japan and China
Metro as a Driver of Smart City Development
Transit-Oriented Development (TOD)
-
- Metro stimulates growth of satellite towns, commercial complexes, and offices around stations.
- Real estate near metro lines may increase in value by 10–20%, fueling property development.

WHY IS TOD THE TREND IN RAILWAY REAL ESTATE?
- Increasing real estate value
- Keeping up with global urban development trends
- Opportunity for investors to catch the infrastructure wave
Boosting economy and tourism
-
- Modern stations can evolve into underground commercial centers.
- Tourists can easily travel between attractions, promoting sustainable tourism.
Digital applications
-
- Smart ticketing with e-payments, QR codes, and smart cards.
- AI and IoT enhance operations, safety monitoring, and predictive maintenance.
Global Best Practices
-
- Tokyo Metro (Japan): interconnected with JR lines, transporting over 8 million passengers daily.
- Seoul Metro (Korea): integrated retail and services in stations, boosting urban economy.
- Singapore MRT: model of TOD-based smart urban planning.
Hanoi can adopt these models to develop metro as not only transportation but also the backbone of a smart city.
Current Challenges
-
- Huge investment: Metro projects cost billions of USD, requiring PPP and ODA funding.
- Slow progress: Some lines, such as Cat Linh–Ha Dong, took over 10 years to complete.
- Human resources: Need for skilled engineers and professional metro operators.

Opportunities for Businesses & Investors
The Hanoi Metro is not just a transport project but a key enabler of smart urban development. By combining technology, urban planning, and investment, it can transform Hanoi into a modern, green, and sustainable metropolis.