Vietnam property market gains momentum amidst public investment boom

The country amassed USD26 billion in foreign direct investment in YTD August.

In a recent report, Savills noted that at the beginning of Q3/2025, the announcement of the US - Vietnam trade agreement eased investor concerns in the property market. To support exports, the State Bank is expected to keep interest rates low. The government is targeting 8.3% GDP growth in 2025 through fiscal expansion and more efficient tax policy implementation amidst nationwide digitalization.

“With provincial mergers effective from July 2025, cadastral databases are being completed across all 34 provinces and cities, enhancing market transparency and reinforcing Vietnam’s FDI appeal,” the report added.

Here’s more from Savills:

In 8M/2025, Vietnam attracted US$26.1 billion in FDI, up 27.3% YoY, with disbursements hitting US$15.4 billion – the highest in five years. Adjusted capital surged 85.9%, while new registrations fell 8.1%, showing new entrants are cautious amidst global uncertainty.

A highlight of public investments in Q3/2025 was the groundbreaking and inauguration of 250 projects nationwide, with total capital of VND1.28 quadrillion, including VND478 trillion from the State’s budget. Key infrastructure projects launched included 750 km of the North–South expressway linking Hanoi to Da Nang, Phuoc Loc Bridge, a 9 km section of HCMC’s Ring Road 3 to Dong Nai, Nhon Trach Bridge, and Rach Mieu 2 Bridge.

The residential market continued to see capital shifting from metropolises to satellite cities. In July, SP Setia broke ground on Setia Gardens Residences in Northeast HCMC, an US$81 million project. In September, Dat Xanh Group announced plans for a 2.3-hectare riverside high-rise complex along the Saigon River worth VND7 trillion. In the North, Central Point Hai Phong broke ground on a 4.7-hectare site, bringing 1,500 apartments along with hotel, office, and retail space. In Central Vietnam, BRG Group unveiled Capital Square Da Nang, a 6.14-hectare project featuring 3,391 premium apartments.

The hospitality sector continued its rebound in the quarter, driven by nearly 14 million international arrivals in 8M/2025, up 21.7% YoY, with China and South Korea contributing nearly 50% of total inbound traffic. The quarter also saw the launch of major luxury projects, including BIM Land’s Marina Bayfront District in Ha Long, Flamingo Holdings’ Maison 108 Ho Nui Coc in Thai Nguyen, Sun Group’s integrated resort and casino in Quang Ninh, and Saigontourist Group’s groundbreaking of a five-star hotel in Da Nang.

Vietnam’s industrial real estate is shifting toward next-generation green and smart models. In August, two industrial parks broke ground including Thu Thua Industrial Park in Tay Ninh and Nam Binh Xuyen Green Park in Phu Tho. Further, in September, Huawei and IMG signed an MoU to develop a green industrial park in Can Duoc.

The office market remained robust in Q3/2025, with occupancy rates above 90% in HCMC. In retail, Hanoi became the destination for large-scale projects, with Westlake Square breaking ground in August to mark Takashimaya’s first presence in the capital, while Thaco Group started construction of Thiso Mall Tay Ho Tay in July.