Vietnam a rising star in Asia-Pacific real estate: Savills

By Vu Pham, Minh Hue
Wed, February 7, 2024 | 2:43 pm GMT+7

Despite facing a host of difficulties, Vietnam and its real estate market still saw growing interest from foreign investors in the fourth quarter of 2023, according to property consultancy firm Savills’ Asia-Pacific Investment Quarterly (APIQ) Q4/2023 report.

Savills cited data released by the Ministry of Planning and Investment as showing that as of December 20, total registered foreign direct investment (FDI) in Vietnam stood at nearly $36.61 billion, an increase of 32.1% over the same period of 2022.

In particular, registered capital reached nearly $20.19 billion, an increase of 62.2% year-on-year. The number of new projects totaled 3,188, an increase of 56.6%.

The skyline of Ho Chi Minh City, southern Vietnam. Photo by The Investor/Pham Nguyen.

The skyline of Ho Chi Minh City, southern Vietnam. Photo by The Investor/Pham Nguyen.

In addition to newly-registered capital, 2023 also recorded 1,262 registered projects adjusting their investment capital, an increase of 14%, with total additional capital of $7.88 billion.

Fitch Ratings in December upgraded Vietnam’s long-term national credit rating to “BB+” from “BB”, with a “Stable” outlook.

Vietnam’s GDP growth is expected to reach 6-6.5% this year, thanks to stable FDI flows and the government’s efforts to overcome the difficulties facing the real estate industry, increase public investment, and introduce timely economic policies to stimulate growth.

Notably, the real estate market recorded a large amount of investment in Q4/2023, according to Savills. South Korea’s largest beverage manufacturer HiteJinro invested in a new factory on more than 8.2 hectares with capital of over $100 million in the northern province of Thai Binh.

In addition, Deli Group from China poured $270 million into about 21.2 hectares in the expanded Dai An Industrial Park in Hai Duong province, also in the north.

South Korea’s Hyosung Group, meanwhile, is to build a $720 million carbon fiber and materials factory at the Phu My II Industrial Park in the southern province of Ba Ria-Vung Tau.

In the retail segment, the market also saw vibrant activities from foreign investors. In September, South Korea's Lotte officially opened Lotte Mall West Lake Hanoi with a gross floor area (GFA) of more than 354,000 square meters.

At the same time, THISO, a member of conglomerate Thaco Group, opened a third Emart hypermarket in Ho Chi Minh City and plans to invest in the northern region after purchasing a 2.4-hectare land plot in the western area of West Lake in Hanoi.

Regarding the office segment, by 2026, Ho Chi Minh City is expected to welcome 300,000 square meters of new Grade A office space, such as The Nexus and VPBank Saigon Tower projects. Furthermore, more than 80% of the city’s future Grade A and Grade B supply will meet green standards.

In Hanoi, between now and 2026, 15 new projects will provide more than 389,770 square meters of office space. Grade A is expected to account for 86% of this future supply. Projects include Grand Terra, Taisei Square Hanoi, Tien Bo Plaza, 27-29 Ly Thai To, and others in the Starlake urban area. Green office space will account for 18% of future office floor space in the capital.

In the apartment segment, many large developers launched new products in the last months of 2023, including The Privia project in Ho Chi Minh City and Canopy Residences and Lumière Evergreen in Hanoi. The next phases of Nam Long Group’s Akari City project and Vinhomes' Glory Heights will also launch new products.

The Savills experts said the Vietnamese real estate market has recently seen the approval of important legal amendments, including the amended Law on Real Estate Business, the amended Law on Housing and the amended Land Law.

The adoption of these laws can be seen as a positive sign for the investment market next year, boosting investor confidence, they said, noting that it is still necessary to wait for legal documents to be able to observe clearer changes.

For M&A activities, some notable transactions in Vietnam in the fourth quarter of 2023 were TTC Hospitality JSC's purchase of the Imperial Hotel project in the central province of Thua Thien-Hue; Singapore’s CapitaLand’s acquisition of 56,208 square meters of land at the Vinhomes Smart City compound in Hanoi to develop a housing project; and Singapore-based Sycamore Company Limited’s $240 million deal to buy 18.9 hectares of land in the southern province of Binh Duong for a housing project.

Comments (0)
  • Read More
Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026

Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026

Japanese-backed Aeonmall Vietnam is ramping up construction on its Aeon Mall Ha Long project in Quang Ninh province, home to Ha Long Bay, with an aim to open it to the public by end-2026.

Industries - Tue, September 16, 2025 | 3:54 pm GMT+7

Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex

Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex

A long-stalled automotive manufacturing project by Xuan Kien Auto JSC (Vinaxuki) has been officially terminated by Hanoi authorities, and the reclaimed land in Phuc Thinh commune will be repurposed for a new commercial and service complex.

Industries - Tue, September 16, 2025 | 2:44 pm GMT+7

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.

Energy - Tue, September 16, 2025 | 1:44 pm GMT+7

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.

Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.

Economy - Tue, September 16, 2025 | 9:36 am GMT+7

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.

Finance - Tue, September 16, 2025 | 8:00 am GMT+7

E-commerce boom a major driver of Vietnam's packaging paper industry growth

E-commerce boom a major driver of Vietnam's packaging paper industry growth

Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.

Companies - Mon, September 15, 2025 | 10:20 pm GMT+7

Vietnam needs support from UK in developing international financial center: Deputy PM

Vietnam needs support from UK in developing international financial center: Deputy PM

Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).

Finance - Mon, September 15, 2025 | 10:12 pm GMT+7

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.

Banking - Mon, September 15, 2025 | 10:04 pm GMT+7

Tool for wood traceability management debuts in Vietnam

Tool for wood traceability management debuts in Vietnam

The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.

Companies - Mon, September 15, 2025 | 10:00 pm GMT+7

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.

Companies - Mon, September 15, 2025 | 9:54 pm GMT+7

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.

Companies - Mon, September 15, 2025 | 8:10 pm GMT+7

Central Vietnam to have new airport Mang Den

Central Vietnam to have new airport Mang Den

Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.

Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.

Economy - Mon, September 15, 2025 | 2:20 pm GMT+7

Agribank introduces sizable $4.17 bln preferential credit package

Agribank introduces sizable $4.17 bln preferential credit package

Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.

Companies - Mon, September 15, 2025 | 1:32 pm GMT+7

'Precious space' in Vietnam's monetary policy

'Precious space' in Vietnam's monetary policy

The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.

Economy - Mon, September 15, 2025 | 10:15 am GMT+7