Against a backdrop of uneven recovery across Asia-Pacific real estate investment markets, M&A activity in Viet Nam continues to attract sustained interest from foreign investors. While announced transaction values appear muted, they do not fully capture the true scale of capital commitments, as investor focus shifts toward development-led opportunities and long-term strategic partnerships. 

According to Savills research, the Asia-Pacific real estate investment market demonstrated varied performance in Q3/2025, but is on track for a period of strong recovery. Investment value across the region increased 18% QoQ to US$35 billion, primarily driven by cross-border transactions in core markets, including Japan, Australia, and Singapore. Conversely, China continues to face weak sentiment and a sharp decline in transaction volume. In this context, Viet Nam has emerged as an increasingly preferred destination, supported by stable macroeconomics, positive FDI inflows, and legal reforms that are beginning to yield results. 

This trend stands out in Viet Nam’s real estate M&A activity. Despite vibrant deal-making and strong participation from foreign investors throughout 2025, the announced values of many transactions are modest. Experts suggest this is not a sign of market weakness but rather a consequence of shifts in investment structure and strategy. 

Neil MacGregor, Managing Director of Savills Vietnam, notes that M&A activity has gained momentum in the past two years as the market adapts to the new Land Law, along with the amended Housing and Real Estate Business Law, which provides a clearer legal framework for investors. MacGregor observes, “The supply of operating assets currently remains very limited. Consequently, the majority of M&A activity is focused on development projects rather than yield-producing assets.” 

M&A Focus on Development 

According to Savills, the concentration of M&A transactions in development projects, particularly residential and large-scale townships, accurately reflects the current market context. In Q3/2025, Viet Nam saw several major infrastructure projects, with total public investment reaching VND 1.28 quadrillion, creating a foundation for urban expansion and the development of satellite areas.  A good example is the upcoming completion of ring road 3 in HCMC, that will open up numerous areas for suburban development. 

MacGregor analyses that, “While investment commitments for these projects are often long-term, initial capital outlays can be relatively small compared to acquiring a large-scale operating asset, providing an explanation why announced deal values appear modest, despite the significant scale of the projects and the strong reputation of the participating developers."  

This quarter, market reality highlighted a clear shift of capital from core cities to satellite areas, where infrastructure is improving, and land banks offer more development potential, aligning with many investors' long-term land accumulation strategies. 

Joint Ventures and Minority Stakes Become Common Strategies 

Another notable feature is the increase in joint ventures or minority stake acquisitions. According to MacGregor, this is a cautious yet calculated approach, particularly popular among Japanese investors. 

He states, “Many investors wish to enter Viet Nam but are not yet ready to lead a development project or commit large sums of capital from the outset. Holding a minority stake allows them to explore the market, gain experience, and build trust before scaling up their investment over time.”  

The improved legal framework also allows for greater trust in more flexible deal structures, ranging from majority control, active minority participation, or strictly financial investments, helping Viet Nam to become a dynamic real estate M&A market attracting a range of investment capital. 

Positive Market Fundamentals 

In the first eight months of 2025, Viet Nam attracted US$26.1 billion in FDI, a 27.3% increase YoY, with disbursed capital reaching US$15.4 billion, the highest in five years. Additionally, the completion of the national cadastral database and the merger of provincial administrative units are contributing to enhanced transparency and market accessibility for investors. 

According to Savills, real estate remains a vital component of Viet Nam’s total M&A value, driven by fundamental factors such as high housing demand, ongoing urbanisation, and improved infrastructure. While demand for acquiring operating assets like offices, hotels, or shopping centres remains high, it is rare for such assets to reach the open market.  As a result, the recent focus has been on residential and industrial development projects. 

MacGregor concludes, “The market needs more time for policy changes to be fully reflected in larger, more liquid, transaction volumes. However, in the medium term, we expect a more transparent M&A market with better liquidity and a more diverse range of capital sources.  Over the longer term, we foresee Vietnam beginning to attract meaningful volumes of institutional capital.”