Real estate makes up almost 17% of newly-registered foreign investment capital

Foreign direct investment (FDI) in Vietnam’s real estate sector in the first two months of 2025 reached 371.5 million USD, reaffirming the country’s attractiveness to international investors and representing nearly 17% of total newly registered FDI. This surge in investment reflects Vietnam’s growing appeal to foreign investors seeking opportunities in the real estate market.
Experts have noted a rising trend in mergers and acquisitions (M&A) within the real estate sector, with many investors actively pursuing project acquisitions. This uptick in M&A activity has not only attracted foreign investors but has also motivated domestic investors to partake in the competition, leading to predictions of significant transactions across various regions and market segments in 2025.
Vietnam’s recent regulatory changes, including the enactment of new Land Law, Housing Law, and Real Estate Business Law, are anticipated to facilitate smoother M&A transactions. These legal amendments aim to eliminate previous obstacles for both buyers and sellers, streamlining the real estate market and promoting more efficient transactions.
The Vice Chairman of the Vietnam National Real Estate Association (VNREA), Nguyen Van Dinh, believes that these regulatory reforms will transform Vietnam’s real estate market into a competitive landscape, allowing capable investors to thrive while phasing out weaker developers. This transformative process is expected to lead to a dynamic M&A environment in the coming years, offering high-quality real estate products to consumers.
Deputy General Director of KPMG Vietnam, Nguyen Cong Ai, foresees a booming M&A market in 2025, with key sectors such as real estate, manufacturing, information technology, and consumer goods showing strong growth potential. The government’s policies and investment trends towards technology-driven industries, particularly in artificial intelligence and tech-enabled services, are expected to drive a significant share of M&A deals in the foreseeable future.
In 2024, Vietnam’s real estate M&A market saw 13 major transactions totaling over 1.8 billion USD, involving prominent companies like Vingroup, Becamex IDC, and Novaland. Foreign investors continue to dominate the M&A market in Vietnam, attracted by the country’s long-term growth prospects and development opportunities.
Experts highlight that foreign investors’ expertise in managing and operating real estate projects contributes to bolstering market confidence, thereby enhancing project value and efficiency. Industrial real estate is expected to be a key segment in 2025, followed by resort real estate and premium residential properties, which are likely to witness increased M&A activity, particularly from foreign investors.