REAL ESTATE SECTOR SEES STRONG FOREIGN CAPITAL INFLOWS

A riverside real estate project in HCMC, with residential blocks overlooking the Saigon River - PHOTO: LE VU

HCMC – The real estate market has heated up since early 2025, with major mergers and acquisitions (M&A) driven by investors from Japan, South Korea, and Singapore, alongside rising capital inflows from the U.S. and Europe.

Specifically, CapitaLand spent US$553 million acquiring a project in the former province of Binh Duong (now HCMC) from Becamex IDC, according to the Vietnam News Agency.

A consortium of Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development has partnered with Kim Oanh Group to develop The One World project, while Nishi Nippon Railroad acquired a 25% stake in the Paragon Dai Phuoc project from Nam Long.

These deals highlight the strong interest of investors from Japan, South Korea, and Singapore, while also signaling the growing presence of capital from the U.S and Europe.

Industrial real estate continues to attract investment thanks to cost and location advantages.

Becamex IDC has planned to develop two industrial parks in the former Binh Duong Province area with a total area of 1,080 hectares, while VSIP is set to break ground on a 180-hectare industrial park in the former Nam Dinh Province (now Ninh Binh) in the third quarter.

In the housing segment, several large projects are being developed in suburban areas, including Vinhomes Green Paradise Can Gio, Sun Blanca City in Vung Tau, and Masteri Rivera in Danang.

The retail sector is also making strides, with AEON Mall expanding into Long An and Can Tho.

Foreign direct investment (FDI) inflows into Vietnam continue to grow. According to the Ministry of Finance, registered FDI reached over US$24 billion in the first seven months of 2025, up 27.3% year-on-year.

Matthew Powell, director of Savills Hanoi, said stable FDI inflows and infrastructure development form the foundation for long-term growth.

Source: The Saigon Times