Vinhomes to cease land bank expansion in Vietnam, focus on capitalizing on existing projects

Vietnam’s largest listed property developer Vinhomes, a subsidiary of Vingroup (HoSE: VIC), will stop acquiring new land in the domestic market, shifting its focus toward developing its existing portfolio and extracting greater value from projects already under its control, chairman Pham Thieu Hoa said.

The move is made under the direction of Vingroup chairman Pham Nhat Vuong, marking a significant strategic shift for the country’s biggest residential developer after years of aggressive land accumulation.

“We have decided to completely stop expanding our project land bank in Vietnam,” Hoa told shareholders on Tuesday.

He said Vinhomes (HoSE: VHM) had accumulated sufficient land reserves to sustain development activities for the next five to seven years and saw little need to continue deploying capital toward new acquisitions.

According to the company’s 2025 annual report, Vinhomes owned approximately 29,500 hectares of land as of the end of last year, the largest land bank among Vietnamese listed developers. The company is also advancing legal procedures for nearly 20 additional projects covering more than 20,000 hectares.

Rather than pursuing further expansion, Hoa said the company would focus on increasing value creation and profitability across its existing developments.

It is the time to focus on construction and commercialization of projects already in hand instead of consuming resources to search for new land, he stated.

The strategy could also create opportunities for smaller developers by easing competition for land acquisition and fostering a more diversified real estate market, Hoa added.

While domestic land acquisitions will cease, Vinhomes intends to maintain its ambitions in overseas markets.

The decision comes as the developer prepares for what could be a record year. Vinhomes has set a target of VND285 trillion ($10.83 billion) in revenue and VND60 trillion ($2.28 billion) in net profit for 2026, up 38% year-on-year.

The company is currently launching several large-scale projects, including Hai Van Bay in Danang, Global Gate Ha Long in Quang Ninh, and an international university township in Ho Chi Minh City.

The Ha Long development is the largest, spanning about 6,200 hectares and expected to host a station on the planned Hanoi-Quang Ninh high-speed railway.

Vinhomes is also building an international sports urban area south of Hanoi covering approximately 9,171 hectares.

As of end-2025, Vinhomes had sold about 309,000 residential units, including apartments, villas, and townhouses, generating cumulative contracted sales exceeding VND1,000 trillion ($37.98 billion).

VHM shares closed at VND135,000 ($5.13) each on Wednesday.

Developers shift from land accumulation to capital efficiency

Vinhomes’s strategic pivot reflects a broader trend across Vietnam’s listed property sector, where developers are increasingly prioritizing capital efficiency and project execution over aggressive land accumulation.

Developer Novaland (HoSE: NVL) said it currently holds more than 2,400 hectares of undeveloped land and plans to selectively advance projects capable of generating cash flow and sustainable returns.

Meanwhile, Phat Dat (HoSE: PDR) reported a land bank of approximately 6,665 hectares, including around 3,400 hectares concentrated in HCMC and Dong Nai city. The company said it has shifted from a growth-at-all-costs approach toward portfolio optimization and more disciplined land development.

Land banks, once viewed primarily as long-term growth reserves, are increasingly being used as tools for financial management and capital recycling. In 2025, Phat Dat sold several projects in Danang and Quy Nhon town to strengthen liquidity and redeploy capital.

The company plans to focus future development in HCMC and infrastructure-linked satellite urban areas such as Dong Nai, while selectively pursuing new opportunities through build-transfer projects and land auctions in provinces including Quang Ngai, Tay Ninh, and Dong Thap.

Khang Dien House (HoSE: KDH) plans to develop projects across more than 160 hectares of residential land and 60 hectares of industrial land in HCMC between 2026 and 2028. Looking toward 2030, the company aims to complete legal procedures for an additional 400 hectares while continuing to expand its clean land bank.

Nam Long (HoSE: NLG), which owns approximately 681 hectares of land across Hai Phong, Tay Ninh, Dong Nai, HCMC, and Can Tho, said it would pursue a cautious expansion strategy while seeking selective acquisition opportunities through mergers and acquisitions.

The changing strategies suggest Vietnam’s real estate sector is entering a more mature phase, with developers increasingly focused on execution, cash flow generation, and returns on invested capital rather than simply expanding project pipelines.