The city has tasked the Department of Construction with overseeing the redevelopment of eight ageing apartment blocks, including the building at 23 Hang Tre Street in Hoan Kiem Ward.
Built between 1984 and 1988, the five-storey complex was originally developed for employees of the former Ministry of Water Resources. It now houses about 125 households, with several ground-floor units used for businesses.
Authorities said the building has deteriorated after decades of use, with weakened structural components and unauthorised additions affecting both safety and the surrounding streetscape.
A structural assessment classified the building as Category C, requiring demolition under Vietnam's 2023 Housing Law.
Under the proposal, the new building would have 21 storeys above ground and three basement levels, with a total floor area of about 20,000 square metres. Construction is expected to take around 30 months.
The project forms part of Hanoi's broader plan to redevelop hundreds of ageing apartment buildings, many of which were built between the 1960s and 1990s, while consolidating smaller residential blocks into larger urban renewal projects.