M&A activities in real estate are vibrant

REAL ESTATE M&A ACTIVITY HEATS UP IN VIETNAM

GOVERNMENT REFORMS DRIVE INVESTMENT GROWTH
Resolution No. 68 NQ/TW has been issued to promote the development of the private economic sector, focusing on legal reforms, reducing business barriers, improving access to land and capital, protecting property rights, and fostering fair competition. This serves as a crucial foundation for Vietnam to attract high quality investment as global investors increasingly prioritize stable and transparent legal environments.

In 2025, the Vietnamese government aims for an 8% GDP growth rate through structural reforms, increased public investment, and support for the private sector. Administrative restructuring—including reducing the number of provinces from 63 to 34 and eliminating the district level—is expected to streamline governance, enhance efficiency, and create a more favorable environment for investment.

FOREIGN INVESTORS LEAD REAL ESTATE M&A ACTIVITY
According to the General Statistics Office (Ministry of Finance), total registered FDI capital (including new registrations, adjustments, and M&A) reached $24.09 billion in the first seven months of 2025, marking a 27.3% year on year increase . Despite global instability and trade tensions, Vietnam continues to push structural reforms and attract investment.

"While challenges remain, stable FDI inflows and infrastructure development signal cautious optimism for long term growth," said Matthew Powell, Director of Savills Hanoi .

The first half of 2025 saw a surge in real estate M&A deals, with foreign investors leading major transactions. Notable deals include:
Capitaland’s acquisition of a project in Binh Duong from Becamex IDC for $553 million .
A consortium of Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development partnering with Kim Oanh Group to develop The One World project.
Nishi Nippon Railroad’s purchase of a 25% stake in the Paragon Dai Phuoc project from Nam Long.

These transactions reflect growing interest from Japanese, South Korean, and Singaporean investors, along with emerging capital flows from the U.S. and Europe—markets known for high standards and long term investment strategies.

COMMERCIAL REAL ESTATE MAINTAINS GROWTH MOMENTUM
The commercial real estate sector remains a key driver, with industrial real estate continuing to attract attention due to Vietnam’s competitive labor costs, strategic location, and low operational expenses. New projects include:
Becamex IDC’s two industrial parks in Binh Duong (totaling 1,080 hectares ).
VSIP Nam Dinh (180 hectares) , set to break ground in Q3 2025.

In the residential segment, suburban development remains dominant, with large scale projects launching nationwide:
Vingroup’s Vinhomes Green Paradise (2,870 hectares) in Can Gio, Ho Chi Minh City.
Sun Group’s Sun Blanca City (96.6 hectares) in Vung Tau.
Masterise Homes’ Masteri Rivera Danang , featuring approximately 1,112 apartments .

The retail sector also saw significant investment, with AEON Mall expanding into the Mekong Delta:
AEON Mall Long An (opened in August 2025).
AEON Mall Can Tho (under construction, spanning 8.5 hectares ).

POSITIVE IMPACTS ON THE REAL ESTATE MARKET
The combination of regulatory reforms, foreign investment inflows, and infrastructure development is expected to stabilize Vietnam’s real estate market, reduce speculative risks, and foster sustainable growth. However, challenges such as high property prices and administrative bottlenecks remain key areas for further improvement.