The event is co-organised by the Indian Chamber of Industry and Commerce and the Indian embassy in Hanoi.
The Diwali festival has become a popular cultural feature in the capital over the past several years, and has grown larger every year.
Last year, the festival welcomed more than 1,200 visitors from government officers, entrepreneurs, cultural agencies and the expat community in Hanoi.
This year, a special cultural programme is scheduled during the festival including Indian music and dances, fashion shows, and games. There will also be pavilions featuring Indian culture, handicrafts and culinary arts to entertain visitors.