Hanoi has approved the construction of a new complex of commercial centers, hotels and offices covering nearly one hectare near the Sword Lake.

The city's power company several years ago planned to invest in a similar complex at the site but it was strongly objected to by local residents. They were afraid that a large construction will severely damage the landscape and environment of what is considered the heart of Hanoi.

The Vietnam Electric Equipment Corporation (VEC) under the Ministry of Industry and Trade will invest in the new complex that is located next to the Hanoi People's Committee office, the local newswire Vnexpress reported.

The People's Committee has approved the location and asked the firm to obtain investment and land use permits.

VEC is required to gain the project approval in 12 months.

The new complex will be the second of its kind in the area after the Trang Tien Plaza.