The Hanoi People's Committee Thursday approved a decision to this effect and sent it to the Ministry of Culture, Sports and Tourism.
It said only 12,000 seats out of 40,000, or around 30 percent, can be occupied per match.
Spectators must either be fully vaccinated at least 14 days before the match or have recovered from Covid-19 within the last six months. They must also test negative for the coronavirus at least 72 hours prior, and abide by pandemic prevention measures like keeping distances and wearing masks.
Vietnam entered the final round of World Cup qualifiers for the first time this year.
But they have lost all four matches so far with regional giants Saudi Arabia, Australia, China and Oman proving too strong.
The host nation will play Japan on November 11 and have a rematch with Saudi Arabia on November 16.