The Growth of Vietnam’s Real Estate M&A Market in 2025

Vietnam’s real estate mergers and acquisitions (M&A) market is experiencing a transformative wave in 2025, marked by significant growth after enduring a prolonged downturn. This revitalization is primarily driven by the residential real estate sector, which leads M&A activity, accounting for over 70% of transaction volume.

Key Segments of the M&A Market

While the residential sector dominates, other segments are making notable contributions. Commercial real estate constitutes approximately 17.7% of M&A transactions, followed by the resort real estate sector at 5.3%. A noteworthy newcomer is the data center segment, which has carved out a niche, contributing 3.3% to the overall M&A activity.

Industry experts, including JLL, report that cumulative M&A transactions reached around $2.4 billion in the first 11 months of 2025, a clear indicator of market revival.

Factors Behind the Market Resurgence

A positive shift is evident this year, transitioning away from past difficulties linked to administrative barriers. The resolution of legal bottlenecks and greater clarity in urban planning has paved the way for increased supply in the market, encouraging collaboration among industry stakeholders. Amidst tight financial conditions, many companies are leveraging M&A as a key strategy to sustain growth.

Notable domestic players like Novaland Group and Phat Dat Group are actively engaging in M&A deals, reshaping their real estate portfolios. This expansion is partly due to a concerted focus on projects with high legal transparency, including commercial land funds with clear construction roadmaps and land use rights.

Investor Dynamics

The M&A landscape showcases a distinct stratification among investor groups. Local investors tend to engage in more frequent, smaller transactions, whereas foreign partners are eyeing larger deals, particularly in high-end residential developments and integrated urban projects. Recent policy changes allow for agreements on non-residential land use rights for commercial housing development, unlocking further potential for M&A activity, particularly in housing segments that are currently experiencing shortages.

Sector-Specific Insights

The market’s dynamics vary significantly across different segments. For instance, HCM City is grappling with a severe supply shortage in office spaces, resulting in high occupancy rates and robust rental growth. In contrast, Hà Nội is witnessing a healthy influx of foreign direct investment (FDI). In the hotel sector, anticipated investment yields hover around 8-9%, with M&A transaction volumes expected to reach $125 million this year.

In the industrial real estate domain, cumulative M&A volumes have hit approximately $74 million. Investors are increasingly preferring to acquire existing industrial parks rather than simply leasing land, a shift that minimizes legal risks and ensures infrastructure quality.

Diverse Investment Opportunities

The rise of various investment products, including industrial land funds, ready-built factories, and specialized segments like cold storage and data centers, is generating abundant M&A opportunities.

JLL attributes the development of this vibrant market to several key factors:

1. Legal Policy Reforms

The issuance of Resolution 171/2024/QH15 in April 2025 fundamentally reshapes the market landscape. The new rules allow for the flexible conversion of non-agricultural land into commercial housing projects, bolstering investor confidence. This is complemented by Resolution 68, which fosters private sector growth and encourages the government to enhance its legal frameworks.

2. Corporate Restructuring

The need for corporate restructuring has never been more critical. Many domestic firms are grappling with liquidity issues and bad debts accumulated during the booming years of 2020-2022. M&A offers a pathway for these companies to reorganize their finances and solidify project legacies.

3. Stable Monetary Policy

With an average lending rate of 7-9%, capital accessibility has improved significantly, enabling a healthier competitive environment between domestic and international investors. This stability encourages long-term investments in the real estate sector.

Attracting Investment: Best Practices

To successfully attract investors, JLL recommends that Vietnamese companies focus on several crucial aspects:

1. Legal Compliance: Ensuring complete legal compliance, particularly regarding land use rights and permits, is essential. A detailed legal due diligence report can bolster investor confidence.

2. Professional Valuation: Conducting regular professional valuations according to international standards is key. Accurate market reflections foster smoother negotiations, enhancing the appeal of assets.

3. Transaction Flexibility: Companies should maintain flexibility in their transaction structures, being open to various forms of cooperation—from joint ventures to outright asset transfers.

4. Transparent Financial Systems: Building a transparent financial system that includes internationally audited reports and robust corporate governance practices will improve the likelihood of successful M&A deals.

As Vietnam’s real estate M&A market continues to evolve in 2025, the convergence of favorable policies, market demand, and strategic investor behavior sets the stage for a promising future in this sector.