The Russian-made MI-171 chopper came down early morning in Thach That district in the west of the city, a military source told AFP, speaking on condition of anonymity.
"There were several people on the plane. We are examining the crash site now and the cause of the accident," he said.
The incident happened during parachute training exercises, he added.
The Tuoi Tre newspaper said at least eight people had been injured.
Official VTC television quoted Duong Nhu Hung, chairman of the Thach Hoa people's committee in the district, as saying at least a dozen people had died and six more were injured in the accident.
In 2008, five Vietnamese military pilots were killed when their twin-engine light transport aircraft crashed on the outskirts of Hanoi.
The Soviet-designed Antonov An-26 turboprop crashed into a rice field south of the capital during a morning training flight.
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