Most businesses and services have resumed in the capital city, except for bars, karaoke and massage parlors, and dance clubs.
The city also allowed the Huong Pagoda, a collection of temples and pagodas built amidst mountains and forests and a major spring destination in northern Vietnam, to receive visitors from Feb. 16 without organizing any ceremonies to prevent large gatherings.
The Huong Pagoda festival usually lasts for two and a half months with a series of activities like dragon dancing, boat racing and folk singing.
Around 80,000 pilgrims had flocked to the pagoda on the festival's opening day in previous years.
Hanoi has been topping the national Covid-19 case count for around a month, recording around 3,000 cases every day.
But given its high vaccination rate and the capacity of the healthcare system, it has been given a low Covid risk rating.