Hanoi pushes Sumitomo, BRG to accelerate $4.2 bln smart city project

Hanoi authorities have asked Japan’s Sumitomo and local conglomerate BRG Group to quicken the progress of the North Hanoi Smart City project as soon as legal procedures are finalized.

The request was made by Hanoi Party chief Tran Duc Thang during a meeting early this week with Yukihito Honda, Group CEO, Diverse Urban Development Group at Sumitomo.

The 270-hectare project, valued at roughly $4.2 billion, is located in Vinh Thanh commune. Sumitomo executive described the development as a flagship symbol of Vietnam-Japan economic cooperation.

At the meeting, the Japanese firm said the project had completed legal procedures, fulfilled financial obligations, and obtained land-use rights certificates. However, the Japanese group and its Vietnamese partner BRG are seeking approval to increase the project’s permitted residential population in order to improve commercial viability and better align with Hanoi’s urban development needs.

In response, the Hanoi official instructed city agencies to quickly issue a formal written response regarding the allowable population density based on the capital’s master planning framework and regulatory authority. After receiving clarification, Sumitomo and BRG need to accelerate the construction to ensure the project’s timeline, Thang stressed.

The project officially broke ground in August 2025 after years of delays linked to planning revisions and administrative procedures.

The North Hanoi Smart City project is being developed by North Hanoi Smart City Development Investment JSC (NHSC), a joint venture between Sumitomo and BRG. The development is planned in five phases and is designed as a large-scale integrated urban area combining residential, financial, commercial, and public infrastructure functions.

One of the centerpiece components is a proposed 108-story mixed-use tower expected to house financial, commercial, and residential facilities. The broader master plan also includes office buildings, hotels, international schools and hospitals, parks and green spaces, underground parking systems, and multimodal transportation infrastructure.

Sumitomo, one of Japan’s oldest trading houses, has operated in Vietnam since 1995 and involved in a range of major infrastructure and industrial projects.

Its investments include Thang Long Industrial Park I and II in Hanoi and Hung Yen province, Ho Chi Minh City’s Metro Line No. 1 elevated section, and some major thermal power projects such as Pha Lai, Duyen Hai 3 expansion, and Phu My 2-2.