“Vietnam’s strong FDI inflows, strategic location, competitive costs, e-commerce growth, trade openness and role in the global supply chains will be essential to the long-term supply and performance of its warehousing segment,” said John Campbell, Director and Head of Industrial Services at Savills Vietnam, a property consultancy firm.

A production line at Hana Kovi Inc Company in Bac Giang province, with 100% investment from the Republic of Korea.

According to the expert, Vietnam's economy is projected to grow by 6.1% in 2024, with inflation expected to reach 4.5%. FDI increased by 7% year-on-year, supporting the industrial real estate sector, while international tourism and retail sectors show promising recovery signs.

High-value industries in the first nine months of this year included electronics, automotive components, semiconductors, and green technology. Investment from countries like the Republic of Korea (RoK), Singapore, and Japan, have highlighted a shift towards high-tech, high-value manufacturing. Manufacturing accounted for approximately 63% of FDI, indicating Vietnam's appeal beyond traditional low-cost production hub.

To sustain the new wave of investment, Vietnam is heavily investing in infrastructure with priority given projects such as the North-South Expressway, Long Thanh International Airport, and deep-water ports like Cai Mep in Ba Ria-Vung Tau, which will enable direct connectivity with Europe, the Americas, and Southeast Asia. The northern economic zones benefit from synchronised infrastructure development.

In addition to transport, Vietnam is advancing its digital connectivity with expanded 5G networks and development of data centres, supporting the growth of e-commerce and logistics.

According to the assessment of the Vietnam Association of Real Estate Brokers (VARS), the real estate market continues to face many challenges but also many opportunities, reflecting the fluctuations of the global economy and domestic regulatory policies. Industrial real estate remains a bright spot as FDI inflows increase, while residential real estate is also emerging as a potential segment, attracting investors around the world.

Prominent corporations such as Kusto Home (Singapore), Gamuda Land (Malaysia), CapitaLand (Singapore), Keppel Land (Singapore), Tokyu Corporation (Japan), Lotte Land (RoK), and Central Trading & Development Group (Taiwan) have already invested billions of dollars into residential, urban, and industrial projects across Vietnam.

Trang Bui, General Director of Cushman & Wakefield Vietnam, forecast substantial foreign investment into Vietnam's real estate market by 2026. Residential real estate currently offers a profit rate of 8–10% annually, significantly higher than the 2–3% seen in other regional markets.

Additionally, the 2024 Housing Law, which can grant an additional 50 years of ownership for foreigners, is expected to boost the market, particularly in the premium segment. The domestic real estate market is anticipated to attract billions of dollars from foreign buyers, especially from Singapore, Hong Kong and Taiwan (China), who remain optimistic about Vietnam's market growth.

In the short term, Vietnam’s real estate market is expected to remain stable, with strong growth, especially in industrial and residential real estate in highly urbanised areas, she said.

Real estate segments benefit from surging FDI inflow in production

Despite a modest influx of foreign direct investment (FDI) in the real estate sector since early 2024, Savills Vietnam sees a silver lining in the surge of FDI into high-tech manufacturing.

Vietnam’s FDI expected to hit $39 - 40B this year

Vietnam expects to attract US$39-40 billion in foreign direct investment (FDI), according to forecasts to the end of the year.

Bac Ninh leads nation in FDI attraction in nine months

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Garment - textile industry pins high hopes on FDI inflows

Vietnam has so far attracted 3,500 foreign direct investment (FDI) projects in the garment - textile industry with a combined value of 37 billion USD, according to the Vietnam Textile and Apparel Association (VITAS).

Disbursed FDI in Jan-Aug hits five-year high

About 14.15 billion USD worth of foreign direct investment (FDI) was disbursed in the first eight months of this year, up 8% year-on-year, marking the highest for an eight-month period over the past five years, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

China leads in number of FDI projects in Vietnam in seven months

Foreign direct investment (FDI) from China has continued to flow into Vietnam, according to the Ministry of Planning and Investment.