Real estate investors in Vietnam, both individuals and organizations, are shifting their investments from city centers to suburban regions and neighboring provinces where land remains abundant and significant investments are being made in infrastructure, particularly in transportation.
Novaland’s Aqua City project in Dong Nai province, southern Vietnam. Photo courtesy of Novaland.
According to the Vietnam Association of Real Estate Brokers (VARS), the trend of moving away from city centers among real estate companies and individual investors reflects not only their search for new investment opportunities but also the influence of external factors such as urban planning policies, transportation infrastructure, and changes in buyer demand.
Firstly, property prices in central areas of major cities like Hanoi and Ho Chi Minh City have reached record levels, making investments more challenging as capital costs rise, while profit margins gradually decrease or become difficult to secure due to legal issues and long implementation timelines of projects in city centers.
This situation forces investors with limited financial resources to seek potential markets in the suburbs.
Secondly, the government and local authorities are intensifying the planning of satellite urban areas and expanding urban spaces to ease the pressure on population and infrastructure in city centers, making suburban districts and neighboring provinces attractive destinations for both individual investors and businesses.
Thirdly, investments in transportation infrastructure, including expressways, ring roads, and public transport systems like metro lines, shorten the travel time between satellite areas and city centers. This not only adds value to real estate but also attracts significant real estate demand.
Fourthly, the development of large-scale urban projects in suburban areas boosts infrastructure and commercial development while driving up property values in surrounding areas, drawing the attention of investors.
VARS stated that as prices in central areas rise sharply, individual investors are increasingly “accelerating” the flow of capital to areas where land prices are more affordable and growth potential is high. These investors typically focus on types such as land plots, commercial townhouses, or new urban projects with reasonable investment values.
Rather than focusing on short-term speculative trading, many investors are opting for a strategy of accumulating land in suburban areas, anticipating future development when infrastructure is completed.
In addition to residential properties, models like second homes, farmstays, or suburban resorts are attracting investor interest thanks to their rental potential, especially after the Covid-19 pandemic, which has fostered green living and remote working.
This trend also presents opportunities for real estate companies to develop projects of various scales. Many major developers have seized opportunities, developing large-scale urban areas in neighboring provinces.
Projects like Aqua City and Izumi City in the southern province of Dong Nai, Vinhomes Ocean Park in Hanoi, and Sun Urban City in the northern province of Ha Nam are proof of this shift.
An inevitable trend amid rising land costs
For medium and small-sized real estate companies, developing projects in suburban areas, satellite cities, or neighboring provinces has become not just an opportunity but almost a necessity.
This is particularly true as legal regulations on land, housing, and real estate business tighten, especially with rising land costs that make it difficult to compete and develop projects in city centers.
Recently, many firms have proactively sought and accumulated clean land in suburban areas to implement projects, taking advantage of lower land prices and high growth potential. This new supply is also a key factor driving the robust development of the suburban real estate market, meeting the growing demand for housing.
In addition to the housing segment, businesses are also increasing investments in industrial real estate due to rising demand from the global supply chain shift and support from planning schemes.
With the growing population in satellite urban areas, the demand for shopping centers, mixed-use complexes, and office spaces in suburban areas is also rising, creating opportunities for real estate companies to expand their investment portfolios.
VARS predicted that the trend of moving to areas outside city centers will become more defined. Property investment in central areas is now suitable mainly for financially strong investors with long-term asset accumulation needs.
Meanwhile, in some well-planned areas with developing infrastructure, property prices remain relatively “cheap” with substantial price increase potential in the future, especially as demand for housing in non-central areas continues to rise. Policies that encourage and incentivize the development of suburban urban areas will further motivate investors.
However, VARS advised investors to make thorough research and evaluations as legal issues related to planning, land use rights, and legal procedures may arise.
While the potential is significant, not all areas have enough appeal to ensure strong demand for real estate products, it said, adding some regions still lack public amenities, making it challenging to attract residents and investors.
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.
In an era where sustainability is not just a choice but a requirement, carbon labelling is emerging as a crucial factor for exporters.
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.
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.
