The shift of international investment capital into the Vietnamese real estate market.

As global capital undergoes a major restructuring, Vietnam is strengthening its position as a stable market, attracting international investors moving from high-risk markets to economies with solid growth. Compared to other ASEAN countries, Vietnam stands out in three key factors: growth, stability, and development potential.

From “riding the wave” to “ecosystem”

“Vietnam is building a clear competitive advantage over economies like Thailand, Indonesia, or Malaysia,” said a director from the Institute for Informatics and Applied Economics Research. “If this trend continues, the development gap between Vietnam and other countries in the region could narrow faster than previous forecasts.”

The biggest difference between Vietnam and competitors like Malaysia is its stable political foundation and aggressive infrastructure investment. The Vietnamese government currently commits about 7% of GDP to infrastructure development—one of the highest rates in the region, creating a “safe corridor” for foreign capital inflows.

With an estimated market capitalization of about $1.5 trillion—three times GDP—the Vietnamese real estate market has become a “safe haven” and “effective profit channel” for international investors. Foreign capital flowing into Vietnam is no longer short-term speculative, as in the 2010-2012 cycle, but has shifted to direct investment in assets with stricter criteria.

According to a CEO from FIDT Investment Consulting and Asset Management Company, this capital can be classified into four main groups. The Northeast Asian group (Japan, South Korea) focuses on operational models, often “following the supply chain” of manufacturing and logistics. The Singapore group has a long-term vision, willing to “go big” into projects with transparent roadmaps. The “Alpha” strategic group seeks superior profits through joint ventures and asset restructuring. The opportunity fund group takes advantage of market correction phases to accumulate high-quality assets. For European and American investors, they are ready to participate in highly complex projects, including restructuring or developing assets with value-added potential.

Unlike the 2013-2014 period, when foreign capital focused on acquiring cheap assets, the current trend is long-term, selective investment tied to urban development. “Foreign capital today is not just looking for assets, but also for ecosystems to develop,” the CEO emphasized. Investors are not simply buying a building. They are participating in building megacities, smart industrial parks, and data centers.

A director from the Leasing Department at Cushman & Wakefield Vietnam noted that Vietnam has a competitive advantage in attracting Global Capability Centers (GCCs). Vietnam also has a more competitive initial investment cost compared to India and the Philippines. According to a Cushman & Wakefield report, the average initial office investment cost can be up to $1,033/m² in Manila or $785/m² in Mumbai and New Delhi, while in Ho Chi Minh City, this cost is only about $656/m².

Foreign capital changes its taste

In the race to attract capital, ESG (Environmental, Social, and Governance) standards are no longer an “option” but have become a prerequisite for accessing international capital. Reports show that projects meeting ESG standards in Vietnam can see price increases 25-30% higher than surrounding areas.

“Over the past ten years, we have observed that the real estate selection standards of multinational corporations, especially high-tech FDI, have changed significantly. Previously, the first factors considered were usually location, infrastructure connectivity, and cost. Now, the evaluation weight has clearly shifted to project quality. Among these, green criteria and ESG requirements have almost become core measures to confirm the suitability of an industrial park or office building,” the director said.

A director of Capital Markets at Cushman & Wakefield Japan noted that investors from developed economies are increasingly prioritizing sustainable projects to ensure long-term operational performance. They are no longer accepting yields of 5-6% in developed markets but expect returns of 10%

Institute for Informatics and Applied Economics Research

The Institute for Informatics and Applied Economics Research is a specialized academic and research center focused on the intersection of computer science, data analysis, and economic modeling. It typically originated from the need to apply computational methods to solve complex economic problems, often established within a university or national research framework to support policy-making and industry innovation. Its history reflects the growing importance of digital tools in economic research since the late 20th century.

FIDT Investment Consulting and Asset Management Company

FIDT Investment Consulting and Asset Management Company is a financial services firm based in Vietnam, specializing in investment consulting and asset management. The company has established itself as a key player in the Vietnamese financial market, offering tailored solutions to both individual and institutional clients. Its history reflects the growth of Vietnam’s financial sector, though specific founding details are limited.

Cushman & Wakefield Vietnam

Cushman & Wakefield Vietnam is the local division of the global commercial real estate services firm Cushman & Wakefield, which was founded in the United States in 1917. The Vietnam branch was established in the 1990s as the country opened its economy, providing services such as property leasing, investment sales, and valuation. It has since become a key player in Vietnam’s rapidly growing real estate market, supporting both local and international clients.

Ho Chi Minh City

Ho Chi Minh City, formerly known as Saigon, is the largest city in Vietnam and a major economic hub. Its history dates back to the 17th century, but it became internationally known as the capital of French Indochina and later the capital of South Vietnam during the Vietnam War. The city was renamed in 1976 after the war’s end, honoring revolutionary leader Ho Chi Minh, and today blends modern skyscrapers with historic French colonial architecture.

Manila

Manila, the capital of the Philippines, is a bustling metropolis with a rich history shaped by Spanish, American, and indigenous influences. Founded in 1571 by Spanish conquistadors, it served as a major trading hub in Asia and the seat of colonial power for over 300 years. The city was heavily devastated during World War II but has since rebuilt, blending historic sites like Intramuros with modern urban development.

Mumbai

Mumbai, formerly known as Bombay, is a bustling coastal city and the financial capital of India. Originally a collection of seven islands inhabited by fishing communities, it was ceded to the British East India Company in 1661 and later grew into a major colonial port and trading hub. Today, it is a vibrant, multicultural metropolis known for its iconic landmarks, Bollywood film industry, and dynamic economy.

New Delhi

New Delhi is the capital of India, established in 1911 when the British colonial government decided to move the capital from Calcutta. Designed by British architects Edwin Lutyens and Herbert Baker, the city was officially inaugurated in 1931 and features grand boulevards, government buildings, and landmarks like India Gate. Today, it stands as a vibrant metropolis blending colonial heritage with modern Indian culture.

Cushman & Wakefield Japan

Cushman & Wakefield Japan is the Tokyo-based branch of the global commercial real estate services firm Cushman & Wakefield. The company has operated in Japan for several decades, providing brokerage, valuation, and property management services to a wide range of clients. Its presence in Japan reflects the firm’s expansion into key Asian markets following its founding in the United States in 1917.