Vietnam has recorded over 1,110 COVID-19 infections, with 35 deaths, Ministry of Health data showed.
The start of the Formula One season was pushed back to July from March due to the pandemic, with extensive changes made to the 2020 calendar.
The total number of races was cut to 17 from the record 22 originally envisaged, with Vietnam becoming the 13th race from the original calendar to be axed this year.
Hanoi city authorities had hoped to hold the race in November, but Vietnam Grand Prix Corp Chief Executive Le Ngoc Chi said on Friday that cancellation emerged as the only option after a review of safety criteria.
Formula One only finalised its 2020 calendar in August, following six rounds of racing.
The 13 races announced before the final calendar was made public were all in Europe, after all four of the season’s races in the Americas were scrapped.
In its August announcement, Formula One cancelled the Chinese Grand Prix, while adding four more races - one in Turkey, two in Bahrain and one in Abu Dhabi - in the last two months of the year.