Real estate remains a magnet for FDI in Vietnam. (Photo: Dantri/Dtinews)
Vietnam’s real estate market had attracted USD 2.75 billion in newly registered capital and about USD 1.5 billion in disbursed funds as of late October, reflecting both sustained appeal and a shift toward a new wave of foreign investment.
Analysts credit this momentum to a more transparent, business-friendly environment. Administrative reforms, digitalised procedures and clearer land management have reduced costs and risks in a sector long shaped by strict regulations.
Revisions to the Land Law, Housing Law and Law on Real Estate Business have enabled mergers and acquisitions, equity participation and greater foreign involvement in property projects. This has stimulated an increase in M&A activity as international investors target high-potential development sites.
Infrastructure expansion and rapid urbanisation are also accelerating capital flows. Vietnam is investing heavily in highways, bridges, metro lines and airports, boosting interest in industrial and logistics facilities as well as satellite cities. FDI is shifting not only to traditional industrial parks but also to green zones, port-linked logistics hubs and new urban areas supported by upgraded infrastructure.
Turning point
At the Vietnam Industrial Property Forum 2025, experts described the current phase as a turning point for infrastructure developers aiming to capture emerging global capital flows.
Market confidence is also rising. By the end of the third quarter of 2025, nearly 4,700 new real estate firms had been established, up 20.3 per cent year on year. The expansion of Vietnamese developers strengthens the foundation for deeper cooperation with international partners.
According to Troy Griffiths, Deputy Managing Director of Savills Vietnam, FDI inflows remain stable and increasingly high quality. Investment in industrial, technology and property-related projects is strong. Hanoi alone attracted USD 3.5 billion in FDI last quarter, with more than USD 3.1 billion channelled into real estate.
Vietnam is moving beyond low-cost competition, Griffiths said, with investment shifting to high technology, semiconductors, computing and value-added manufacturing. He noted that infrastructure development will be the most important growth driver over the next decade, while rapid urbanisation will fuel the rise of satellite cities.
Assoc. Prof. Dr Le Thu Ha of Hanoi University of Architecture said new expressways, airports and seaports are creating strong pull factors for FDI. She highlighted rising demand for green industrial parks and high-quality logistics facilities, stressing the need for integrated planning to avoid fragmentation.
Vietnam’s GDP is forecast to reach USD 480-500 billion by 2035, almost triple current levels, with annual growth of 7-8 per cent. Urbanisation is expected to reach 50 per cent, or about 51 million people, while the middle class could expand to 75 per cent of the population, driving demand for housing, commercial services, tourism and healthcare.
This period marks Vietnam’s transition from land accumulation to value creation. The market is expected to see a bigger role for institutional and long-term international capital focused on sustainable development.
The Government is advancing legal reforms and new financing tools, including infrastructure bonds and digitalised market oversight, to build a transparent and modern investment environment. Climate challenges are also opening opportunities for green investment as Vietnam positions itself as a regional leader in Net Zero and resilient infrastructure.
Despite risks linked to exchange-rate movements, global inflation and project implementation, experts believe Vietnam will remain one of Asia’s most attractive investment destinations.
