The Vietnamese Grand Prix scheduled for April 2020 is the latest street race on the F1 calendar along with Monaco, Singapore and Azerbaijan.
"This major event will give to Vietnam - and particularly its capital - an international exposure," FIA President Jean Todt said at a ceremony to lay the foundation stone of the circuit.
The 5.565-km (3.4 miles) circuit in the west of Hanoi is scheduled to be completed by March next year, grand prix parent Vingroup said in a statement.
While the country does not have much of a motorsports tradition, sporting events or competitions in which the national team does even marginally well are widely watched and passionately celebrated.
"I look forward to seeing you in a year's time on the starting grid of the first Formula 1 Vietnamese Grand Prix in Hanoi," Todt said.
(Reporting by Khanh Vu; Editing by Darren Schuettler)
