Avison Young Vietnam analysts offer an insight into the developments in Vietnam’s key real estate segments in Q4/2024 and forecast for 2025.
An undeveloped project site in Ho Chi Minh City. Photo courtesy of Thanh Nien (Young People) newspaper.
An undeveloped project site in Ho Chi Minh City. Photo courtesy of Thanh Nien (Young People) newspaper.
Easing global interest rates have encouraged investors in the quest for real estate investment opportunities, leveraging the robust economic foundation in the Asia-Pacific region.
In Vietnam, the year of 2024 witnessed an influx of FDI into strategic assets such as development sites, industrial and logistics properties, residential real estate, and office spaces.
“The surge in foreign capital inflows into Vietnam’s real estate market highlights its resilience and considerable growth potential. Changes in investment preferences which were observed in the final quarter of 2024, whether for development, leasing, or acquiring properties, reflect emerging trends and prospects for certain sub markets, segments, and real estate products in the near future,” said David Jackson, principal and CEO, Avison Young Vietnam.
Purpose of leasing transactions reflects office segment shifts
In Q4/2024, the office markets in Ho Chi Minh City and Hanoi remained stable, with rental rates and occupancy levels sustaining positive trends. While the new supply in 2024 did not reach the level of the previous year, market activities demonstrated a tendency toward optimizing workspaces and rental costs.
In HCMC, most transactions involved renewals, lease extensions, office relocations within the same district or from District 1 to the new Thu Thiem urban area. Grade A and Grade B rental rates stood at $54/sqm/month and $31/sqm/month on average, respectively, with an overall market occupancy rate of 88%.
Over the next two years, new supply will primarily concentrate in fringe areas such as District 3, District 7, Tan Binh district, Binh Thanh district, and Thu Duc city, with notable projects including The Beacon, Yteco Tower, and Daikin Tower.
In Q4/2024, Hanoi welcomed the Grade B Gems Empire Tower in Thanh Xuan district. The EDGE-certified project achieved a 90% occupancy rate at launch. Market-wide, rental rates and occupancy levels remained unchanged, with leasing activity concentrated in areas with robust transportation infrastructure such as Cau Giay, Thanh Xuan, and Nam Tu Liem. Between 2025 and 2027, new supply is projected to reach 300,000 sqm, with prominent projects including Tien Bo Plaza and B3CC1.
Reflecting on leasing activity throughout 2024, a growing diversification of office demand is anticipated in the time to come. Central office spaces with stable or slightly rising rental rates continue to attract large international clients in the technology, finance industries, and professional services providers.
Meanwhile, new projects in non-CBD areas are enhancing supply to cater to diverse office needs. Whether businesses choose to relocate or stay, there is a clear focus on modern, high-quality workspaces with reasonable rental costs to ensure effective financial management and an improved working environment.
Retail space in shopping malls expands in terms of quantity and quality
In 2024, HCMC witnessed a surge in modern retail space supply, with three new projects: Vincom Mega Mall Grand Park, Parc Mall, and Central Premium Mall. Additional supply, coupled with competitive rental rates, large-scale projects which meet international standards and with integrated amenities, provided retailers with strong incentives to enter and expand in the market.
For instance, Parc Mall and Central Premium Mall achieved occupancy rates of 100% and 60%, respectively, shortly after opening, boosting the non-central occupancy rate by 7% to 82% in Q4/2024. On January 10, 2025, the city will welcome Central Mall Vo Van Kiet by Satra, further enriching the shopping and entertainment options for residents in the southwestern area.
In Hanoi, Aeon Mall Xuan Thuy is set to open on January 10, 2025. New supply of shopping centers in Hanoi in 2024 accounts for only 20% of the previous year’s volume. Across the market, rental rates and occupancy levels rose in Q4, reaching $37-140/sqm/month in central areas (up 3%) and $20-88/sqm/month in non-central areas (up 5% compared to Q4/2023).
Over the next two years, Hanoi expects to welcome two new projects – Hanoi Centre within the Tien Bo Plaza complex, operated by Keppel, and Tonshin-Starlake under Takashimaya. As a result, the retail real estate segment is expected to remain vibrant and competitive, attracting more retailers in the coming years.
Mid-range and high-end apartments continue to grow in major cities, infrastructure accelerates suburban development
Several new condominium projects were launched in Q4/2024, including The Opus One, Kiều by Kita, and King Crown Infinity in Ho Chi Minh City, and Imperia Co Loa, The Senique Hanoi, and Luminere Springbay in Hanoi.
In HCMC, the high-end segment experienced the strongest growth in price in 2024, with primary price at Lancaster Legacy, The Metropole, and The River Thu Thiem exceeding $8,000/sqm.
Although supply has improved, high prices have driven demand toward Binh Duong, Dong Nai, and Long An, where infrastructure is being developed, and prices are more affordable ($1,100-1,500/sqm in areas like Thuan An and Di An, Binh Duong).
In 2025, Ho Chi Minh city plans to launch 50,000 units from 17 projects, including The Global City, Diamond Valley Van Phuc, and Eco Smart City, with 11 out of 17 projects are in Thu Duc city.
In Hanoi, primary prices increased by 5% quarter-on-quarter, averaging $2,600-3,600/sqm. After a heated first half of 2024, price growth is expected to stabilize moving forward. The overall market absorption rate reached 80-85%, higher than HCMC’s 70-75%. In 2025, 10 new projects with over 13,500 units, including Central Residence, Vinhomes Co Loa, and Bac Hanoi Smart City, will be launched.
Rising input costs (land taxes, construction, and design expenses) and product positioning will push the average apartment prices higher in major cities. Suburban development is expected to continue, driven by investments in urban railways, forming satellite urban hubs with extensive condominium projects. Recently, HCMC proposed a four-lane elevated road on National Highway 13 through Thu Duc city, accelerating development towards Binh Duong.
Rising demand for ready-built factories and ready-built warehouses driven by e-commerce growth and FDI
In Q4/2024, industrial land rental rates and occupancy levels in Hanoi and HCMC remained unchanged from the previous quarter and showed little variation from the same period last year. These key markets continue to play a central role in promoting industrial development in the surrounding areas.
In the south, Binh Duong and Long An led industrial real estate transactions in 2024, accounting for nearly 40% of active industrial parks in the southern economic zone. In the north, Bac Ninh and Quang Ninh stood out with notable transactions, including Weifang Goer Group’s acquisition of Goertek’s project in Bac Ninh and Coremax’s purchase of a plot in DeepC Industrial Park, Quang Ninh.
Industrial real estate M&A activities remained positive in 2024, driven largely by foreign investors. This segment represented 78% of total real estate transactions in Vietnam in 2024, focusing on land acquisitions for industrial development and asset trading.
The growth of e-commerce and FDI in manufacturing continues to fuel demand for ready-built factories and warehouses.
Chi Vu, senior manager, industrial services of Avison Young Vietnam commented: “Donald Trump’s re-election as U.S. President is expected to accelerate the shift of production to other countries, with Vietnam positioned as a strategic destination due to its advantages. This creates significant opportunities for developers and industrial real estate firms. Ready-built warehouses and factories are expected to grow in both supply and variety as market demand rises.”
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.
