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Vietnam real estate 2024: a year in review

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As positive signals become more evident, now is the time to restart capital flows into real estate transactions in Vietnam and embrace the new growth cycle, write Avison Young Vietnam analysts.

A corner of Nha Be district, Ho Chi Minh City, southern Vietnam. Photo courtesy of Thanh Nien (Young People) newspaper.

A corner of Nha Be district, Ho Chi Minh City, southern Vietnam. Photo courtesy of Thanh Nien (Young People) newspaper.

Globally, 2024 marks a year of significant changes: over 50 countries held elections, Fed cut rates, and Donald Trump won the presidency the second time.

In Vietnam, August 1 became a landmark date as three real estate-related laws took effect, four months earlier than planned. While market activity seemed sluggish, the underway shifts in macro-economy and geo-politics would have a profound impact on the real estate market in the coming time.

Below are five key trends shaping the Vietnam’s real estate market in 2024.

Residential segment on recovery track amid supply imbalances

In 2024, the housing market performed better than last year, driven by new apartment supply in the second half of the year, mainly high-end properties.

In Ho Chi Minh City, most new developments were from high-end segment onwards, prices reached VND72-142 million ($2,830-5,590) per square meters. Property prices of re-launched projects also went up.

In Hanoi, housing prices surged in early 2024 and continued rising throughout the year. Units priced at VND70 million/sqm became more common in Q3, and primary prices rose by 2-4% quarter-on-quarter in Q4.

Some projects introduced and open for sales in HCMC and Hanoi at year-end.

Some projects introduced and open for sales in HCMC and Hanoi at year-end.

Supply in the mid-range segment continued to be limited in both HCMC and Hanoi. Apartments at affordable prices of below VND38 million ($1,500)/sqm nearly disappeared.

As prices kept going up, the housing market moved further away from intrinsic value and posed liquidity risks. The gap between market offerings and homebuyers’ needs and affordability was widening.

Meanwhile, obstacles remained in developing reasonable-priced housing. Policies and credit incentives for social housing were insufficient, while investment, leasing and purchasing processes remained complex.

Yet, there are opportunities for a more balanced market. Building more budget-friendly commercial projects and social housing in suburban or new urban areas with ample undeveloped land banks and lower development costs offers a solution to sustainable growth. Following this trend, some affordable projects have been launched recently in HCMC’s Binh Chanh district, Binh Duong province, and Dong Nai province.

New land banks for residential development will soon be available as HCMC aims to build 11 TOD compact urban areas and auction 22 land plots around metro stations. For developers, rising capital costs create a new “puzzle” where securing the land plots and balancing costs, prices, and product segmentation are critical to ensuring liquidity and operational efficiency.

New opportunities arising in industrial real estate

The industrial real estate segment remained the market’s top performer in 2024, with rising rents, growing supply, and high occupancy rates. This growth was primarily driven by FDI in manufacturing, fueled by supply chain diversification and the China+1 strategy.

In major and tier-1 markets, industrial land rents increased by 2-5% per quarter. New supply was expected to increase as numerous industrial park projects received licenses or began construction nationwide. Industrial and logistics (I&L) properties continued to attract significant interest from foreign investors, leading real estate transactions in Vietnam throughout 2024.

In the short term, the economic, trade, and geopolitical fluctuations associated with Donald Trump’s new policies may temporarily affect foreign investment and exports. However, due to its strategic location, relative political stability, competitive costs, and improving investment environments, Vietnam still has potential to become the next global manufacturing hub if seizing this opportunity.

Demand is expected to grow in these types of industrial property:

More completed legal framework in real estate, strengthened market sentiment

2024 marked a turning point for Vietnam’s legal system with the implementation of the 2024 Land Law, the 2023 Housing Law, and the 2023 Real Estate Business Law. These changes and adjustments were widely praised for their transparency, clarity, and fairness, encouraging professionalism in brokerage and transactions, and laying a sound foundation for a more sustainable real estate market.

The new laws addressed four key matters:

1. Transactions covering various real estate types and products, including completed works and off-the-plan projects.

2. Requirements on incorporation, financial capabilities and the obtainment of Land Use Rights Certificate for various investors and developers.

3. Requirements on contract and planning in the purchase and sale of Land Use Rights.

4. Eligibility and conditions for transferring real estate projects.

Some notable new points include:

However, businesses, investors, and people are looking for more detailed guidance on implementing these laws to fully realize the law’s potential.

Irreversible sustainability trend, ESG criteria shaping new projects

Over the past few years, most new office buildings in HCMC and Hanoi aimed for green certifications. Not only increasing in quantity, green offices were also expanding geographically. In HCMC, green offices are expected to develop in adjacent, vibrant and fast-growing areas such as District 4, District 7, Tan Binh district and Thu Duc city.

New office buildings with green certifications in HCMC and Hanoi in the past 2 years.

New office buildings with green certifications in HCMC and Hanoi in the past 2 years.

Industrial real estate has also been embracing sustainability. Notable green-certified projects recently included Hitachi Energy’s transformers factory in Bac Ninh (achieved LEED Gold), Mitsubishi Estate Group’s Logicross Hai Phong ready-buit warehouse (aiming for EDGE Advanced certified) and the Lego Vietnam factory in Binh Duong (aiming for LEED Gold for the manufacturing plant, and LEED platinum for the office).

Developers such as BW Industrial, Fraser Property, KCN Vietnam and most recently Sembcorp are pursuing modern, sustainable industrial park infrastructure.

Rising market demand drives investment decisions in green buildings in Vietnam. For investors, projects resilient to environmental and climate risks and contributing positively to society hold higher value and better asset valuations. Green-certified or ESG-compliant properties are also more appealing for partnerships and capital investments, becoming key consideration in M&A transactions.

Sharp rise in foreign investment in real estate sector despite global slowdown

In 2024, global FDI slowed, and Vietnam followed suit, with registered FDI capital reaching $31.38 billion by November – up just 1% year-on-year.

This modest growth reflected the same trend as Vietnam had economic openess and global FDI flows had declined for two consecutive years (2022-2023) due to macroeconomic instability and geopolitical tensions.

Despite this, foreign investor confidence in Vietnam remained strong, and they continued to implement licensed or approved projects. Realized FDI reached $21.68 billion in the first 11 months of 2024, a 7.1% increase year-on-year. With continued disbursements, total committed FDI for 2024 is projected to surpass last year’s figures, potentially setting a record for the 2019-2024 period.

While global manufacturing activities has not yet recovered (registered FDI to Vietnam’s manufacturing sector down 8.7% compared to the same period last year) and the world’s major real estate markets remained sluggish, the Vietnam’s real estate sector saw impressive growth in FDI. Accumulated registered FDI in real estate surged 89.1% year-on-year, reaching $5.63 billion by November.

This robust FDI inflow highlights Vietnam’s increasing appeal to foreign investors. Not only are they driven by favorable policies, investment environment, a growing population, rapid urbanization, investors also see demand outpacing supply across sectors such as industrial and logistics (I&L), housing, offices, and retail. Improvements in legal frameworks and infrastructure development in 2024 have further enhanced the real estate market’s attractiveness.

David Jackson, principal and CEO, Avison Young Vietnam. Photo courtesy of the company.

David Jackson, principal and CEO, Avison Young Vietnam. Photo courtesy of the company.

Looking at the five real estate trends above, David Jackson – principal and CEO, Avison Young Vietnam said: “Significant changes in 2024 in terms of policies, investment trends, and the business landscape give us many reasons to stay optimistic for the Vietnam’s real estate market. As positive signals become more evident, now is the time to restart capital flows into real estate transactions in Vietnam and embrace the new growth cycle.”

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Bac Giang International Logistics Centre launched

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Bac Giang International Logistics Centre was launched on April 22 with an investment of $168 million, and is expected to become a crucial link in the global supply chain.

Bac Giang International Logistics Centre launched
Bac Giang International Logistics Centre launch

Being invested by CNCTech Group, Dolphin Sea Air Services Corporation and Thien An Investment JSC, the logistics centre is located on National Highway 1A, which boasts first-class warehouse supply to meet the growing demand in the northern Vietnamese market.

Its strategic position within the golden economic triangle of Hanoi – Haiphong – Quang Ninh provides convenient connectivity to industrial zones and key logistics centres via national highways No.1A and No.37.

The centre is designed to meet growing demand for logistics infrastructure from businesses in Bac Giang and neighbouring provinces, positioning the area as a new node in northern Vietnam’s logistics network.

The project is a strategic product as a key component of the logistics spearhead in CNCTech Group’s industrial and logistics infrastructure ecosystem. It has been approved by the prime minister as a national level-II logistics centre, covering a planned area of 67 hectares.

At the launch ceremony, Chairman of Bac Giang People’s Committee Nguyen Viet Oanh said, “In recent years, the province’s socioeconomic development has made remarkable strides. Transportation, urban, industrial, and social infrastructure have been synchronously invested in and have yielded high efficiency. However, the province’s logistics service sector has not yet matched its potential, advantages, and socioeconomic development level. The logistics system remains fragmented, transportation costs are high, and trade delivery times are prolonged.”

Recognising this bottleneck, the local authorities have focused on directing the robust development of the logistics system, incorporating it into the provincial plan. This includes developing eight comprehensive logistics centres covering nearly 500ha, three inland container depots, and 33 inland waterway ports.

“Bac Giang, with its strategic location between Hanoi and border provinces, has long been known as a dynamic industrial hub. The remarkable development of the province’s industrial parks has created a solid foundation for the establishment of Bac Giang International Logistics Centre. This centre is not only located on vital transportation routes such as Hanoi-Lang Son Expressway but also directly connects to major border gates, optimising the transport of goods from Bac Giang to the world,” said Oanh.

Bac Giang International Logistics Centre launched
A model of the logistics centre

The project is not merely a warehousing facility, but also a symbol of the integration of modern infrastructure and advanced technology. The centre includes multifunctional warehouse areas, customs-controlled warehouses, non-tariff warehouses, and automated warehouses, meeting the needs of various industries. Notably, it integrates end-to-end logistics solutions, supporting businesses in optimising transportation costs and enhancing production efficiency.

With a long-term vision, the centre aims not only to optimise domestic supply chains but also to become a key connection point in the global logistics network.

Nguyen Van Hung, chairman of the Board of Members of CNC Tech Group, shared, “The establishment of this centre is a strategic step in developing Vietnam’s logistics infrastructure. We are committed to long-term and robust investment in this sector, as logistics is not just infrastructure but an indispensable part of enhancing the competitiveness of Vietnamese businesses on the international stage.”

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Green engagement rides high in Vietnam

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Vietnam has taken strong action to promote green development among businesses, amid the country facing challenges in finance and technology.

Vietnamese Party General Secretary To Lam told the fourth Summit of the Partnering for Green Growth and the Global Goals 2030 (P4G), organised last week in Hanoi, that Vietnam is focused on strategic breakthroughs to prepare for a national development process that is fast, inclusive, and sustainable.

Green engagement rides high in Vietnam
The summit in Hanoi covered areas from finance and banking to agriculture and technology Photo: Dung Minh

“We will strongly transform political commitments into practical actions, creating motivation for businesses and the whole society to participate in sustainable economic development, in which green institutions are the decisive foundation,” General Secretary Lam stressed at a hall attended by government leaders, UN representatives, diplomats, experts, and entrepreneurs.

General Secretary Lam also stressed that when it comes to green transformation, despite being a developing country with a transitional economy and limited resources, Vietnam has achieved some important results.

Besides making a 2050 net-zero commitment in 2021, Vietnam also endorsed six global initiatives at the time, on forest and land use, methane, clean power transition, sustainable food and agriculture, and more.

“Vietnam is now a leading country in supplying renewable energy in ASEAN, with wind and solar power capacity accounting for two-thirds of ASEAN’s total capacity,” he said.

“Additionally, Vietnam is also a good example of encouraging sustainable agriculture. The initiative to develop one million hectares of high-quality and low-emission specialised rice is a pioneering model that many partners and international organisations are interested in.”

A greener future

Vietnam is an active and responsible member of all multilateral mechanisms and major initiatives on green growth and energy transition such as the Paris Agreement on climate change, the Just Energy Transition Partnership, and the P4G.

“However, as a developing country with a transitional economy, we also face many challenges in terms of financial resources, technology, personnel, and resilience to the impacts of climate change and geopolitical fluctuations globally,” said General Secretary Lam.

The summit adopted the Hanoi Declaration, strongly affirming commitments to sustainable growth with people at the centre, and a determination to collaborate responsibly in addressing current global challenges. Vietnam is expected to enjoy continued support from the international community in its journey to a green economy including energy transition.

According to the World Bank, to ensure sufficient funding for responding to climate change, mobilising domestic finance is possible, but external support is needed.

Overall, Vietnam’s total incremental financing needs for the resilient and decarbonising pathways could reach $368 billion over 2022–2040, or approximately 6.8 per cent of GDP per year.

The resilient pathway alone will account for about two-thirds of this amount, as substantial financing will be required to protect the country’s assets and infrastructure as well as vulnerable people.

The cost of the decarbonising pathway will mainly arise from the energy sector – investments in renewables and managing the transition away from coal might cost around $64 billion between 2022 and 2040. All the figures are in net present value terms at a discount rate of 6 per cent.

This $368 billion in financing needs will include $184 billion from private investments or about 3.4 per cent of GDP annually, $130 billion or about 2.4 per cent of GDP annually from the state budget; and $54 billion or about 1 per cent of GDP per year from external sources.

Choi Youngsam, South Korean Ambassador to Vietnam, said that within the P4G framework, South Korea and Vietnam have completed or are currently implementing joint projects in areas such as food and agriculture, energy, water, and urban development.

“Looking ahead, both sides are expected to broaden and deepen their partnership under the P4G framework,” he said.

At the P4G Summit held in Seoul in May 2021, the two governments signed the Framework Agreement on Cooperation in Response to Climate Change, laying a solid policy foundation for the implementation of international emissions reduction ventures.

“On this basis, I hope that South Korea will leverage its technological expertise and financial resources to carry out greenhouse gas emission reduction projects in Vietnam, with both countries mutually recognising the results,” Ambassador Youngsam said.

“This would contribute to establishing a win-win model of emissions reduction cooperation. At the same time, I look forward to seeing active engagement from South Korean enterprises possessing green technologies, in close collaboration with the Vietnamese government.”

Encouraging developments

Deputy Minister of Science and Technology Hoang Minh said at a policy dialogue on the sidelines of the P4G 2025 that the active participation and strong cooperation from stakeholders – from the public and private sectors to international organisations – can help materialise Vietnam’s aspiration of an efficient and sustainable innovative startup ecosystem.

“Innovation, creative entrepreneurship and collaboration are key to solving environmental problems, while encouraging the development of a circular economy,” he said.

Vietnam currently has over 4,000 innovative startups, including two unicorns valued at over $1 billion, 11 companies valued at over $100 million, more than 1,400 startup support organisations, 202 co-working spaces, 208 investment funds, and 35 business promotion organisations. Among these, it is estimated that around 200–300 companies focus on green transition, covering areas such as renewable energy, environmental technology, sustainable agriculture, and the circular economy.

According to the Vietnamese Ministry of Foreign Affairs, hosting the fourth P4G Conference is of great significance to Vietnam. It is aimed to boost its role as a good friend, a reliable partner, and a responsible member of P4G and the international community. Moreover, it is also aimed to reaffirm its commitment to sustainable development, energy transition, and the goal of carbon neutrality by 2050. Besides that, it is aimed at contributing to raising awareness of international cooperation and encouraging the role and voice of developing countries in the sector of green growth and sustainable development.

Pham Minh Chinh, Prime Minister

For Vietnam, together with digital transformation, we identify green transition as an objective necessity, a key factor, and a breakthrough driving force to promote rapid growth and sustainable development. This aligns with the strategic goal of becoming a developing country with modern industry and upper-middle income by 2030, and a developed, high-income country by 2045, while also contributing to the gradual realisation of Vietnam’s commitment at COP26 to achieve net-zero emissions by 2050.

From practical experience with initial positive results, especially in renewable energy, green agricultural development, and participation in multilateral mechanisms and initiatives on green transformation, as the host of the fourth P4G Summit, Vietnam has three suggestions for discussions which pave the way for further cooperation in the coming time.

First is to perfect green mindset, with a focus placed on the development of science and technology, innovation, and digital transformation linked to green growth. This includes recognising that green resources stem from green thinking, green growth is driven by green transition, and green resources arises from the green awareness of people and businesses in nations and regions throughout the world.

Second is to build a responsible green community, in which, the government plays a guiding role, encouraging, and ensuring a stable and favourable institutional environment for green growth. The private sector functions as a core investor into technological development and the dissemination of green standards. The scientific community take the lead in developing green technologies and training green human resources. Meanwhile, citizens continuously enhance their green awareness, truly becoming beneficiaries of the outcomes of green transformation.

Thirdly, it is necessary to promote international cooperation and robust multilateral green cooperation models, particularly public-private partnerships, South-South cooperation, North-South cooperation, and multilateral cooperation frameworks. This is aimed at removing institutional barriers, enhancing access, and speeding up the flow of green capital, green technology, and green governance.

Developed countries should take the lead in fulfilling commitments to provide financial, technological, and institutional reform support. Meanwhile, developing countries would need to leverage their internal strengths and effectively utilise external resources.

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Public-private partnerships a lever for greener innovation

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Public-private partnerships are no longer a supporting mechanism, but a strategic pillar in the global pursuit of the green transition.

The high-level dialogue between government leaders and businesses at the 2025 P4G Vietnam Summit last week, chaired by Prime Minister Pham Minh Chinh, brought together senior officials, global experts, international organisations, and private sector leaders.

They recognised that the climate crisis, digital transformation, and resource depletion are converging in ways that demand not only innovation, but deep and long-term collaboration between the public and private sectors.

UN Deputy Secretary-General Amina J. Mohammed acknowledged Vietnam’s leadership in renewable energy, noting its potential to attract trillions in sustainable investment.

“Emerging economies must accelerate the adoption of new investment models, particularly those that align private capital with green infrastructure priorities. Governments must work with the private sector to expand ambition, strengthen accountability, and deliver real impact,” she said.

From Italy, Prime Minister’s Climate Envoy Francesco Corvaro stressed that public-private partnerships (PPPs) are indispensable in addressing climate finance gaps. Drawing from Italy’s experience, he underscored the importance of public investment as a risk mitigator, enabling private sector participation in clean energy and smart infrastructure projects.

“Public investment can unlock private capital, but local authorities must lead with clear priorities and long-term vision,” Corvaro noted. “You can’t talk about renewables, AI, or digital infrastructure without modern, resilient grids, and that requires strong public-private alignment.” he said

Alejandro Dorado, Spain’s High Commissioner for Circular Economy, argued that the case for stronger PPPs lies at the intersection of two accelerating forces: the environmental-climate crisis and a wave of disruptive technologies.

“In a world where AI, green technologies, and digitalisation are reshaping the global economy, the clock is ticking. According to the Intergovernmental Panel on Climate Change, we have less than a decade to prevent irreversible climate disaster. Meanwhile, the World Economic Forum has identified biodiversity loss as one of the most severe economic risks,” he said.

Public-private partnerships a lever for greener innovation

Dorado added that while multilateralism is being questioned or weakened in some quarters, the need for cooperation has never been more urgent – both to solve environmental challenges and to harness the transformative potential of innovation.

“No government or business can tackle these crises alone. Public authorities must provide the regulatory frameworks, fiscal incentives, and infrastructure deployment needed at scale to safeguard the common good,” he stressed.

From the business side, Stuart Livesey, country representative of Copenhagen Infrastructure Partners (CIP), provided a frank but optimistic outlook. Livesey stated CIP’s commitment to supporting Vietnam’s transition, but emphasised the need for enabling conditions.

“What we seek are clear, bankable projects underpinned by stable regulatory frameworks, collaborating with strong local partnerships. This is where public-private cooperation becomes not just helpful, but essential,” Livesey noted. “Over the next 10-15 years, the offshore wind sector and green energy consumers will trigger massive demand for new technologies, digital solutions, and skilled labour.”

To meet this demand, CIP is investing not only in infrastructure, but also in capacity building, research and development, and local supply chain development through partnerships with Vietnamese universities.

Still, he acknowledged barriers. “Technological application and innovation in green projects face challenges, from long-term financing constraints and skilled labour shortages to fragmented policy signals. These are not unique to Vietnam, but they require proactive, tailored local solutions,” he said. “Addressing issues such as grid availability, regulatory clarity, and inter-ministerial coordination will be critical.”

Tim Evans, CEO of HSBC Vietnam, stated that the banking sector is ready to facilitate green finance, particularly in sectors aligned with national climate targets.

“We see ourselves as a bridge between global capital and local sustainability goals. The clearer the pipeline of bankable, climate-aligned projects, the faster we can move capital,” he noted. “What’s crucial now is consistency in policy and coordination among stakeholders to ensure these projects reach maturity.”

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