The district is nine kilometres west of the centre of Hanoi and has many major roads including the Lang-Hoa Lac, South Thang Long and National Highway 32 as well as two rivers running through, the Red and the Nhue. These advantages make it easy for the district to develop its economy. The district has been one of the major areas for growing vegetables to supply to the city in the last few years. However, the area for agricultural development is now shrinking at the pace of about 150 hectares per year for the construction of major national projects such as the My Dinh sport complex, residential and industrial complexes. Now the district has only 4,100 hectares of land left for agriculture in the total area of 7,515 hectares of natural land. With a population of 220,000, per capita farming land is among the lowest in the city. To seek a sustainable development pattern under rapid urbanisation, the district has set a plan for reduction of agricultural proportion in the economy yet it still plays an important role there, meaning the value of each area of land left will be increased via agricultural production.

The district has shifted most of its land from farming rice to growing flowers and ornamental trees, which has higher market value. Only rice varieties of high quality and high value are farmed in the district. The district has many kind of fruits known for excellent taste such as Diem grapefruit and Canh orange. Many farming households in the district are able to earn more than VND 50 million per hectare per year from growing these fruit trees. Phu Dien village, for example, has 50 hectares of grapefruit and each fruit sells for VND 10,000 during Tet (Lunar New Year) and holiday seasons.

The suburban area of Tu Liem district is now being turned into urban agricultural area with more focus on growing high quality vegetables and fruits to meet the increasing demand of the city. Phu Dien, Xuan Phuong, Minh Khai, Tay Tuu, Thuong Cat and Lien Mac villages are among those leading the movement of shifting farming patterns in both growing and husbandry with the use of quality strains for higher economic value. Traditional craft villages of the district are also encouraged to develop such as the Phu Do vermicelli producing village, the Co Nhue garment making village and the Xuan Dinh confectionery village. These villages, together with fruit and vegetables farming villages, are turning the suburban district into a favourite ecotourism destination. The model of Tu Liem Fruit Garden Company as an ecotourism destination is an example. The company aims to preserve and maintain the Dien Grapefruit genes. It has turned the farming area into an ecotourism destination with weekend resort, fishing and sport and entertainment facilities to serve tourists coming for relaxation. The company's 20 hectares of garden has been approved by the city to become one of the capital's botanical gardens. The district is now making plans for ten similar gardens.