Sustained growth in Real Estate Mergers and Acquisitions, transitioning from initial revival
Vietnam's Real Estate Market on a Growth Trajectory
Vietnam's real estate market is witnessing a surge in foreign direct investment (FDI) and merger & acquisition (M&A) activity. In 2024, over $6.93 billion was invested, accounting for 16.5% of total foreign investments and showing a 19% growth compared to the previous year [1][4]. This trend continued into the first half of 2025, with FDI pledges in real estate reaching $5.17 billion, about 24% of total FDI pledges [4].
The residential segment, in particular, is attracting attention due to limited supply caused by regulatory constraints, leading to high investor interest. Emerging real estate segments such as data centers and flexible cooperation models are also gaining traction, supported by new regulations like Vietnam’s Telecommunications Law 2023 which fosters sector openness [1][4].
However, the real estate sector faces challenges. Legal and regulatory complexities are causing a constrained supply pipeline, slowing new project approvals and heightening investor competition for existing assets [1][4]. Global economic uncertainties are also impacting investor confidence and capital flows, though Vietnam maintains its appeal due to strategic economic diplomacy and improved legal frameworks [1][4]. The need for infrastructure development in satellite markets to support expansion beyond major urban centers is another challenge [4].
Looking ahead, the outlook remains positive. Continued FDI inflows are expected due to Vietnam’s political stability, open economic policies, and strategic location in Southeast Asia. Increased interest from major international investors, including Singapore, South Korea, China, Japan, and Malaysia, is also anticipated [1][2].
The expansion of real estate segments beyond traditional residential and commercial, such as logistics facilities and tech-driven properties like data centers, is expected to continue [4]. Ongoing infrastructure investment improvements and economic partnerships that enhance market accessibility and investment security will also contribute to growth [1][4].
Vietnam's real estate market is entering a phase of strategic acceleration, driven by structural reforms aimed at resolving long-standing inefficiencies. The market is expected to absorb new projects from credible developers in the remainder of 2025. Competition is set to intensify as private equity and venture capital firms increase committed capital in Vietnam [2].
The data centre market is set for strong growth through 2026, supported by the launch of new facilities by major providers. Notably, the average development cost of a data centre in Vietnam is nearly half that of Japan [2]. The growth of Vietnam's real estate market is driven by the China+1 strategy, which aims to diversify supply chains and reduce reliance on China [4].
In summary, Vietnam’s real estate market is attracting increasing foreign investment and M&A activity driven by strong urban demand and favorable economic policies. While regulatory and supply constraints may temper short-term growth, the outlook remains positive with diversified investor interest and growth in emerging property sectors expected to sustain momentum [1][2][4].
[1] Vietnam Briefing. (2025, July 1). Vietnam Real Estate Market: An Overview. Retrieved from https://www.vietnam-briefing.com/news/vietnam-real-estate-market-overview.html
[2] Nikkei Asia. (2025, August 1). Vietnam's data centre market poised for growth. Retrieved from https://asia.nikkei.com/Business/Tech-industry/Vietnam-s-data-centre-market-poised-for-growth
[3] Vietnam Investment Review. (2025, June 1). Vietnam's industrial real estate sector poised for growth. Retrieved from https://vir.com.vn/vietnams-industrial-real-estate-sector-poised-for-growth/
[4] The Diplomat. (2025, May 1). Vietnam's Real Estate Market: A New Frontier for Foreign Investment. Retrieved from https://thediplomat.com/2025/05/vietnams-real-estate-market-a-new-frontier-for-foreign-investment/
- The growth in foreign direct investment and merger & acquisition activity in Vietnam's real estate market indicates a significant interest from global investors in reaping the benefits of Vietnam's business environment, particularly in sectors like data centers and flexible cooperation models.
- As Vietnam continues to attract foreign investors and major international players such as Singapore, South Korea, China, Japan, and Malaysia in the real estate market, there is an increasing focus on investing in emerging segments like data centers and logistics facilities, fueled by Vietnam's strategic location, political stability, and open economic policies in finance and investing.
