Viet Nam sees improvement in property investment in early 2025

Accordingly, the Vietnamese market reported encouraging performance in the industrial and residential sectors, while retail and hospitality continued to recover, supported by the return of international visitors.

Demand for industrial and logistics investment in Viet Nam remained stable. However, experts note that further policy enhancements and infrastructure development are necessary to generate additional momentum for investment in the country.

Delving deeper, experts believe that 2025 marks a transformative year for Viet Nam’s infrastructure, with a range of key projects being accelerated in terms of construction progress, and several expected to become operational within the year.

Noteworthy among these are the North–South Expressway, the Bien Hoa–Vung Tau Expressway, the expansion of the Ho Chi Minh City–Long Thanh–Dau Giay Expressway, and Ho Chi Minh City’s Ring Road 3. These projects not only contribute to the completion of the inter-regional transport network but also lay the groundwork for enhancing the competitiveness of the national economy in a new development phase. In addition, the Long Thanh International Airport project—on track with its implementation plan and achieving key progress milestones—is expected to become a strategic aviation hub for Southeast Asia by 2026.

Troy Griffiths, Deputy Managing Director of Savills Viet Nam, commented: “Viet Nam is undergoing a geopolitical balancing; the narratives are contrasted starkly.  With tariff issues tempered, the domestic economy could be expected to be primed through continued policy improvement and infrastructure investment.”

The project to expand Noi Bai Airport’s Terminal T2 is accelerating towards completion. (Photo: PV)

On the ground, positive signals from infrastructure developments have strongly bolstered foreign investor confidence. According to the General Statistics Office, total registered FDI capital in the first three months of 2025 reached 10.98 billion USD, a 34.7% increase compared to the same period in 2024. Singapore led the pack, investing 1.32 billion USD and accounting for over 30% of newly registered capital.

Infrastructure progress is also shifting the property investment landscape towards secondary markets. In the southern region, Long An has emerged as a highlight with several large-scale developments. Phase 1 of the 220-hectare Eco Retreat Long An project, developed by Ecopark, was launched in March. Simultaneously, Vingroup broke ground on the Vinhomes Green City project, with total capital exceeding 1 billion USD, expanding development westward from Ho Chi Minh City.

Meanwhile, the tourism sector is experiencing a robust post-pandemic recovery. In the first two months of 2025, Viet Nam welcomed over 3.96 million international visitors, a 30% increase from the same period in 2024. China and the Republic of Korea are currently vying for the top spot in terms of visitor numbers. International carriers such as Emirates are actively expanding routes to Viet Nam, notably with plans to operate four weekly flights to Da Nang, reinforcing the city’s role as a regional tourism and logistics hub.

The industrial sector has retained its appeal, with a slew of new projects. Earlier this year, the 200-hectare Nam Trang Cat Industrial Park (Hai Phong), invested in by Vinhomes, received approval and is expected to create fresh momentum for industrial infrastructure and manufacturing capacity in northern Viet Nam.

In retail, the expansion trend continues strongly. In the first quarter, Aeon Viet Nam acquired the Hai Duong Shopping Mall project from a domestic developer and rebranded it as Aeon Mall Hai Duong, with total investment of approximately 46 million USD.

The proposal to impose price ceilings on social housing is sparking controversy. (Photo: HNV)

The office segment maintained high occupancy rates and stable rental prices, with a growing trend of tenants relocating outside central districts. At the same time, occupiers are increasingly prioritising premium-grade buildings with green certifications.

The proposal to introduce price ceilings for social housing is generating widespread public debate. Experts warn that such a policy could result in investor losses, ultimately harming the public. They argue that the effectiveness of any policy should be assessed not only on its stated objectives but also on its practical feasibility.

Link to the original article