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Real estate FDI consolidates improvement

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A turning point could be ahead for Vietnam’s real estate market, driven by solid economic fundamentals, legislative changes, supportive urban planning policies, and infrastructure improvements.

Foreign direct investment (FDI) in the real estate sector for 2024 reached $3.72 billion in total, making up 18.8 per cent of the total for the year, second only to manufacturing, according to the General Statistics Office.

Real estate FDI consolidates improvement
Large developers such as Hung Thinh, Novaland, Phat Dat, and TTC Land are negotiating with foreign enterprises and will soon announce deals. Photo: Le Toan

A report from Avison Young Vietnam released in January points out that foreign investor confidence in the Vietnamese market is still positive, and capital is being poured into ventures that have been approved and licensed here.

David Jackson, general director of Avison Young Vietnam, said that strong FDI proved the attractiveness of Vietnam’s real estate market.

“Not only do they positively evaluate policy conditions, investment environment, population or urbanisation in Vietnam, investors also see a demand exceeding supply in most key segments such as industry, residential, office, retail and logistics. Efforts to improve the real estate legal framework and infrastructure development are contributing to making the market more attractive to international investors,” said Jackson.

He pointed out that the huge changes in 2024 in policies, investment trends and business were the basis for maintaining an optimistic vision of the real estate market. “When positive signals appear more clearly, it is time for investors to restart capital flow into transactions and be ready to catch the wave of cyclical development,” he added.

Vo Hong Thang, deputy general director of DKRA Group said that the year ahead was expected to be prosperous, with the market being on the recovery path from 2024.

“These positive signals are driven by factors in policy, supply, infrastructure and investment trends promise to create a new growth cycle,” said Thang. “One of the bright spots of the market was the removal of supply bottlenecks, especially projects that have been delayed for years. Supply in 2025 is expected to improve compared to 2024 with more than 15,000 products.”

Lee Leong Seng, head of property development at Keppel Vietnam, expects 2025 to see a significant increase in mergers and acquisitions, with new investment opportunities in the real estate sector.

“Amid global trend changes, Keppel is expanding its investment into diverse real estate sectors such as residential, hospitality, and emerging models like senior living and data centres. The company is also closely connected with global businesses to track and seize market trends, while observing that international funds are increasingly focusing on environmental, social, and governance criteria,” said Leong Seng.

“With its strong-growing economy and golden population, Vietnam is a promising destination for many international investment funds.”

He believes the combination of international investment capital and local market expertise will lead to success.

“Moving into 2025, with new policies, we expect macroeconomic changes to be translated into concrete action, contributing to the sustainable development of Vietnam’s real estate sector,” he added.

“We are particularly excited about the positive changes in the investment environment in Vietnam. These improvements boost confidence and open up many growth opportunities for both traditional and new industries.”

The expert opinions followed a flurry of activity towards the end of last year. With an estimated investment capital of approximately $797 million, CapitaLand is developing the Sycamore, its first large-scale residential undertaking in Vietnam with more than 460 low-rise villas and about 3,300 apartments, with a total construction area of about 593,000 sq.m.

CapitaLand also developed a luxury apartment venture called Lumi Hanoi, with a total investment of $760 million, providing about 4,000 units across nine towers.

Meanwhile, Consmos Initia from Japan poured $150 million in a cooperation with TT Capital Investment JSC to develop a 2,000 high-end apartment projects, called TT Avio located in Di An city of Binh Duong province.

Japanese developers Sumitomo Forestry, Kumagai Gumi, NTT, and AEON Vietnam have joined with Kim Oanh Group to invest in a 50-hectare scheme in Binh Duong called The One World, costing more than $1 billion.

AEON Mall also continued its expansion plan with the opening of AEON Mall Hue in September. The retailer also acquired a 10.5 hectare land area in Thanh Hoa province to become the largest commercial centre in the central region. In addition, it approved the detailed master plan for an AEON Mall in Dong Nai province.

Pham Hoang Ha, a property consultant in Ho Chi Minh City, said that 2025 would see foreign investors pouring capital into southern real estate.

“Large developers such as Hung Thinh, Novaland, Phat Dat, and TTC Land are negotiating with foreign enterprises and will soon announce deals,” Ha said.

Shifting investment out of the central areas where inner-city land has become increasingly scarce and development costs increased, and finding opportunities in surrounding areas is now a strategic choice for investors. In addition to the improvement in supply, market liquidity has also seen positive changes in 2025, with home loan interest rates remaining low and investor confidence gradually improving.

“Projects implemented by reputable investors with guaranteed construction progress, clear legal regulations and infrastructure facilities are the top priority of investors,” Ha added.

Keisuke Muraoka, representative of Cosmos Initia, a member of Japan’s Daiwa House, said foreign investors in Vietnam must be careful with factors such as, legality, demand, location, and facilities.

“In addition to ensuring legal progress, we pay special attention to the potential to draw in end-users of projects, who buy products for living. For partners, we look for those with extensive experience in housing development and a strong reputation in the market,” said Muraoka.

Ada Choi – Head of Research, CBRE Asia-Pacific

Real estate FDI consolidates improvement
Ada Choi, Head of Research, CBRE Asia-Pacific

I would like to highlight the increasing investment appetite in Asia-Pacific, with Vietnam a top destination due to its economic confidence and strategic role in manufacturing and supply chain diversification.

Singapore remains the largest investor in Vietnam, with a significant portion of investments coming from manufacturing. Meanwhile, the Japanese are diversifying their operations and Hong Kong is a channel for Chinese capital.

For 2025, international investors are expected to focus on development projects rather than income-generating properties, particularly in the residential and industrial sectors, as opportunities in these areas are more prominent in Vietnam compared to other regions. Other potential segments would be retail, residential and hospitality. International investors may need to differentiate their strategies in Vietnam, possible through partnerships with locals, if they cannot invest directly into income-generating properties.

International investors also need to figure out how to gain exposure to the Vietnamese market, considering the different investment strategies required compared to other regions.

Nguyen Le Dung – Head of Investment Services, Savills Hanoi

Real estate FDI consolidates improvement
Nguyen Le Dung – Head of Investment Services, Savills Hanoi

Investors from Singapore, Japan, and South Korea are all active. Besides that, the US and Europe are also increasingly interested in the Vietnamese market. Among them, the segments that receive the most attention from investors include residential real estate, industrial, and commercial property.

The residential real estate segment continues to draw in a lot of attention due to urbanisation and rising housing demand in major cities in Vietnam, while the supply of new projects is recorded at a low level due to legal restrictions.

The strong development of the manufacturing industry in Vietnam has made industrial real estate an attractive segment, driven by the presence of many foreign investment funds and investors, focusing on Grade A warehouse and workshop projects that meet high standards and quality in the market.

The commercial real estate segment also received great attention, thanks to the development of the retail and service markets. This reflects the increase in demand growth in parallel with urban real estate types and is supported by factors such as the transformation of people’s consumption habits, with more customers prioritising experience shopping at commercial centres and closed multi-functional service spaces.

Investors today tend to prioritise cooperation with private enterprises, thanks to their flexibility and ability to quickly adapt to operations. The scale and total investment of investors is diverse and will change depending on each development segment. However, investors pay special attention to projects that can develop sustainably and meet current market needs to increase product quality and consumer experience.

In addition, legal issues will be given priority due to their direct impact on implementation progress, transaction structure, and investors’ financial plans.

Source: https://vir.com.vn/real-estate-fdi-consolidates-improvement-122211.html

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Billionaire Trần Bá Dương’s VND 2,000 Billion, 200-Hectare Industrial Park in Thái Bình Could Begin Operations This Year

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The Thaco – Thái Bình Industrial Park, covering more than 194 hectares with an investment of over VND 2,100 billion, is expected to become operational within this year, according to the development plan.

Recently, provincial leaders of Thái Bình conducted an on-site inspection of land clearance efforts and infrastructure construction progress at the Thaco – Thái Bình Industrial Park located in Quỳnh Phụ District.

To date, Quỳnh Phụ District has completed compensation and land clearance for nearly 192 hectares of agricultural land, involving the land recovery of 1,067 households to hand over to the investor for project implementation.

Currently, the district is focusing on clearing the remaining land, involving 94 households in Lương Cầu Hamlet, An Cầu Commune. At the same time, it is coordinating with the electricity sector to relocate a 220kV high-voltage power line.

On the investor’s side, groundwork construction is underway, including roadbeds, internal roads, stormwater and wastewater drainage systems, and communication infrastructure within the industrial park.

The Thaco – Thái Bình Industrial Park is a specialized high-tech agricultural industrial park proposed by THACO Group (chaired by billionaire Trần Bá Dương) since 2017, originally planned to cover 250 hectares. By July 2017, the provincial authorities agreed to incorporate the project into Thái Bình’s industrial development master plan.

In August 2020, THACO officially broke ground on the industrial park’s infrastructure. A year later, in August 2021, the project’s investment certificate was revised, confirming a total investment of over VND 2,100 billion and a land area of more than 194 hectares. The project is being developed across An Thái, An Ninh, and An Cầu communes in Quỳnh Phụ District.

According to the roadmap, the investor is determined to complete and officially launch the project in 2025.

The Thaco – Thái Bình Industrial Park is designed as a dedicated high-tech agricultural zone, featuring various functional subdivisions including an administration center, agro-food processing zone, high-tech agricultural training center, experimental farms, agricultural materials production area, and a cargo transport port.

This project is considered one of the key developments in Thái Bình Province, playing a crucial role in the region’s socio-economic growth strategy.

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Carbon labels: a gateway to high-value global markets

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In an era where sustainability is not just a choice but a requirement, carbon labelling is emerging as a crucial factor for exporters.

Carbon labels: a gateway to high-value global markets
Vu Trung Kien, director Climate Change Resilience Centre

Countries like the US and the European Union are implementing stringent carbon regulations, such as the EU’s Carbon Border Adjustment Mechanism and increasing scrutiny on supply chain emissions.

Vietnamese businesses that fail to adopt carbon labelling risk losing access to lucrative markets. However, those that proactively integrate carbon footprint transparency into their products can gain a competitive advantage, enhance brand reputation, and secure long-term profitability.

Across the world, forward-thinking countries have embraced carbon labelling as a strategic tool for trade success. These efforts have not only helped businesses comply with regulations but have also opened doors to new investment and consumer markets.

Japan has implemented a government-backed carbon labelling programme that allows companies to display detailed carbon footprint information on their products. This has strengthened consumer trust and made Japanese goods more attractive in environmentally conscious markets such as the EU and North America.

The South Korean government incentivises businesses to adopt carbon labelling through tax benefits and green export support schemes. Companies that participate gain access to new trading partners, particularly in Europe, where sustainable supply chains are becoming the norm. Thailand, a key competitor to Vietnam, has integrated carbon labelling across industries such as food processing, textiles, and electronics. Thai exporters, particularly in agriculture, now benefit from preferential treatment in European supermarkets and trade agreements.

These case studies highlight an important lesson: carbon labelling is not just about compliance – it is a business strategy that enhances market access, builds consumer confidence, and future-proofs exports.

For businesses in Vietnam, waiting until carbon labelling becomes a legal requirement would be a mistake. Many international corporations have already set ambitious sustainability targets, requiring suppliers to provide verifiable carbon footprint data. Voluntary carbon labelling can position Vietnamese enterprises as reliable, future-ready partners.

It works by companies conducting a life cycle assessment to measure emissions from production to disposal. Products are labelled with a carbon footprint score, helping consumers and businesses make informed choices. Labels are often verified by third-party certifiers to ensure credibility and compliance with global standards.

The benefits include a boost for green supply chains. Companies like Nestlé and Unilever prioritise suppliers that provide carbon footprint transparency. Vietnamese food and beverage exporters can gain an edge by aligning with such demands.

Businesses with carbon-reduction strategies attract funding from international banks and investors that focus on increasing environmental, social, and governance (ESG) investment.

It also leads to improved consumer trust and higher sales. Studies indicate that climate-conscious consumers prefer labelled products. In markets like the EU, organic rice, seafood, and textiles from carbon-labelled brands command higher prices.

For Vietnamese companies looking to integrate carbon labelling into their strategy, a step-by-step approach can make the transition smooth and effective.

Pilot carbon labelling programmes in key sectors are critical, with a focus on industries where carbon labelling is already gaining momentum, such as textiles, seafood, agriculture, and furniture.

The process must start with one or two high-export products and conduct a carbon footprint analysis to understand emissions sources. Industry associations must also work with international partners to ensure the label aligns with EU and US standards.

Collaboration with certification bodies is also key, and partnering with recognised organisations such as the Carbon Trust (UK), TÜV Rheinland (Germany), or SGS (Switzerland) for certification is advised, as is engaging with Vietnamese regulatory bodies to advocate for government incentives similar to South Korea’s model.

Another vital part of the process is to leverage green financing and government incentives to access ESG-linked loans and grants that support supply chain improvements. Alongside this, there needs to be a move to propose carbon labelling incentive programmes through the Vietnam Chamber of Commerce and Industry or the Ministry of Industry and Trade.

The future of Vietnam’s export competitiveness is green. The world is moving towards sustainable trade, and carbon-labelling is no longer optional for businesses that want to thrive in international markets. By learning from successful global initiatives, Vietnamese companies can turn carbon transparency into an economic advantage rather than a compliance burden.

The time to act is now. Companies that lead in carbon labelling will not only future-proof their businesses but also shape Vietnam’s reputation as a responsible trade leader.

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Industrial parks in Binh Duong increase FDI attraction by 232%

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In the first quarter of 2025, an additional 588 million USD in foreign direct investment (FDI) poured into Binh Duong Province’s industrial parks, marking a 232% increase compared to the same period in 2024 and reaching 53.43% of the 2025 annual plan, as reported by the provincial Management Board of Industrial Parks on March 26.

Of the 588 million in FDI USD invested in industrial parks during the first quarter, there were 25 new investment projects with a total registered capital of more than 60.2 million USD and 26 projects with additional capital adjustments, contributing nearly 528 million USD in increased capital.

With this positive investment attraction in the first quarter, industrial parks in Binh Duong have so far attracted 3,252 active projects, including 2,561 FDI projects with total registered capital of 31.57 billion USD and 691 domestic investment projects with total registered capital of 93.664 trillion VND.

According to the Management Board of Industrial Parks in Binh Duong, 10 new projects have become operational in the first quarter. Currently, the province’s industrial parks have 2,706 active business and production projects, including 507 domestic projects and 2,199 FDI projects.

With effective operations, the estimated business and production targets for the first quarter of 2025 in the province’s industrial parks exceeded 11 billion USD, increasing by 7.72% compared to the same period last year and reaching 31.49% of the annual plan. Export turnover surpassed 6.34 billion USD, up 9.22% year on year, achieving 25.36% of the annual plan. Taxes and budget contributions reached nearly 175.4 million USD, increasing by 10.23% year on year and fulfilling 25% of the annual target.

Binh Duong currently has 29 industrial parks with a total planned area of 12,746 hectares. Of which, 28 industrial parks are already operational, covering a total of 12,046 hectares.

According to the Binh Duong Provincial Master Plan for 2021-2030, with a vision to 2050, which was approved by the prime minister, the province is planned to develop 48 to 50 industrial parks with a total planned area of 25,000 hectares.

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