In addition to Hanoi, Singapore (5th) and Bangkok (39th) are the other two representatives in Southeast Asia to break into the top 100.
London was named the world's best tourist city, followed by Paris and New York.
To compile the ranking, the Canada-based company analyzes over 270+ global cities with populations of more than one million to determine the top 100 based on criteria such as sights and landmarks, airport connectivity, parks and recreation, nightlife, restaurants, shopping and GDP per capita, grouped into three pillars: livability, lovability and prosperity.
"Although not as expansive or bustling as Ho Chi Minh City, Hanoi offers a plethora of activities and attractions, from urban landmarks, chaotic markets for bargain hunters, awe-inspiring heritage structures like the Imperial Citadel - a UNESCO World Heritage site - and a vibrant nightlife that holds its own charm," the report said.
Outdoors and shopping activities are the biggest highlights in Vietnam's capital, it added.
Hanoi, home to 7.5 million people, is full of traditional markets and high-end shopping services. The pedestrian zones around Hoan Kiem Lake and some streets in the Old Quarter, which are open on Saturday and Sunday, are magnets for Hanoians and tourists on the weekends.
Hanoi welcomed 18.9 million tourist arrivals in the first nine months of 2023, up 36.5% year-on-year, according to the municipal Department of Tourism.
Of the figure, foreign tourist arrivals reached 3.2 million, marking a four-fold increase year-on-year and surpassing this year's target of 3 million.