Vietnam continues to rank among the fastest-growing economies in the Southeast Asia-6 group, alongside Thailand, the Philippines, Indonesia, Malaysia and Singapore, according to Cushman & Wakefield’s fourth annual Southeast Asia Outlook report.
Singapore, Malaysia, Thailand and Vietnam benefit from strong trade corridors and well-developed manufacturing ecosystems, while Indonesia and the Philippines are supported by resilient domestic consumption.
In 2025, data centres emerged as the most valuable investment asset class in the region’s real estate market. Johor attracted spillover demand from Singapore, while Thailand, Indonesia, the Philippines and Vietnam remained supply-constrained markets with significant growth potential, reflecting sustained investor confidence in digital infrastructure.
Wong Xian Yang, head of research for Singapore and Southeast Asia and author of the report, said the recovery in 2025 reflects not only cyclical factors but also structural shifts in capital allocation.
Investors are increasingly targeting sectors linked to manufacturing expansion and digitalisation, particularly logistics and data centres. While Singapore remains the region’s liquidity hub, Southeast Asia is capturing a new wave of growth as global supply chains diversify and institutional-grade assets expand.
Vietnam recorded the highest real GDP growth among the Southeast Asia-6 economies in 2025 at 8 per cent, well above the pre-pandemic average of 7.1 per cent.
Growth was driven by exports and the recovery of manufacturing and services, reflecting stable global demand and Vietnam’s rising role in regional production and trade networks.
Domestic consumption also remained resilient, underscoring long-term consumption potential. Manufacturing and trade continue to benefit from supply-chain diversification and foreign investment in export-oriented industries.
Growth is expected to moderate slightly, with population growth slowing to 0.6 per cent and lending rates at commercial banks trending upward toward year-end, potentially weighing on housing demand and consumer spending in the short term.
Nevertheless, Vietnam’s economy is forecast to expand by 6.3 per cent in 2026, maintaining its position among the fastest-growing economies in the Southeast Asia-6 group.
From a real estate perspective, the industrial segment remains a key driver. Vietnam continues to benefit from the China+1 strategy, supported by its strategic location, improving infrastructure and the emergence of large-scale electronics manufacturing clusters.
The retail real estate sector is also expected to gain momentum in 2026, with retail sales projected to grow by more than 15 per cent, boosting demand for modern retail space in major urban centres.
Although data centres became the most valuable investment asset class in emerging Southeast Asia excluding Singapore in 2025, Vietnam’s market remains at an early stage compared with regional peers, suggesting significant long-term growth potential as demand for digital infrastructure rises alongside the expansion of cloud computing, AI applications and the digital economy.
Overall, Southeast Asia’s economy is forecast to grow by 4.3 per cent in 2026, maintaining its status as one of the world’s fastest-growing regions.
Total personal consumption in Southeast Asia, excluding Singapore, is expected to reach USD 5 trillion by 2035, expanding at around 8 per cent annually.
As inflation moderates, policy interest rates decline and unemployment remains broadly stable, improved financial conditions could support broader investment across the region.
Anshul Jain, managing director for India and Southeast Asia and head of office and retail for APAC at Cushman & Wakefield, said the region’s growth is driven not only by investment demand but also by expanding consumer markets, a young workforce and ambitious infrastructure programmes.