Vietnam’s ambitious GDP growth target of 8.3–8.5 per cent  in 2025 is expected to generate strong momentum for emerging sectors such as the green economy, digital economy, and digital transformation, including mergers and acquisitions (M&A).

Rapid economic expansion typically accelerates corporate investment, diversification, and market consolidation. As domestic firms look to scale operations and foreign investors seek faster market entry, M&A becomes a natural channel to achieve growth.

In real estate market, the “Emerging Real Estate Trends in Vietnam 2025” report recently released by Indochina Strategic – the real estate advisory arm of Indochina Capital (ICC) – highlights 10 emerging trends shaping Vietnam’s real estate M&A market.

First is lower rates, higher dealflow. By August 2025, Vietnam’s real estate credit showed signs of recovery, supported by improved market conditions and government measures, though challenges remained with large bond maturities and high developer costs. 

Over the past two years, most new credit disbursement has flowed to project developers, signaling potential new supply ahead. This channel has been critical for funding acquisitions of distressed projects, portfolio restructuring, or project rollouts following M&A. For buyers, stronger access to credit enables them to target land banks with clear legal status but limited capital or to acquire equity stakes in existing projects. Conversely, many developers unable to secure financing—often due to legal bottlenecks—have turned to M&A as an indirect capital-raising solution.

Regionally, transaction volumes remain pressured by global financing conditions. Since mid-2022, the Fed’s aggressive hiking cycle—lifting rates to a peak of 5.5 per cent—has made underwriting deals more difficult, as sellers resisted lowering prices. Against this backdrop, Vietnam’s relative macro stability, credit growth, and improving access to capital stand out as supportive drivers for renewed M&A activity.

Second, banks promotes asset repricing as downward pressure on rates narrows margins. While global financing conditions remain tight following the Fed’s sustained rate hikes that pushed U.S. interest rates to 5.5 per cent, Vietnam has maintained an accommodative stance since mid-2023. The combination of accommodative credit growth, lower domestic lending rates, and structural banking reforms is creating both the pressure and the opportunity for repricing, consolidation, and renewed momentum in Vietnam’s real estate M&A market.

Third, industry leads the market, while real estate and technology maintain strong positions. In August alone, the four sectors leading total M&A transaction value in Vietnam are: (i) Industrials – 78 deals, (ii) Technology – 11 deals, (iii) Real Estate, and (iv) Financials – 10 deals. It is evident that Vietnam’s industrial real estate market continues to demonstrate strong appeal for FDI inflows. The strong inflow of foreign capital into industrial real estate has become a clear trend, fueling rental growth and driving M&A activity in the segment.

Fourth is strong resilience of Vietnam’s hospitality market. The markets showing the most positive growth are those increasingly favored by investors for their sustainable development potential, backed by robust transport infrastructure and clear local development strategies.

Fifth is social housing and residential. In particular, social housing has a positive impact on the real estate market by increasing supply, reducing price pressures, and stabilizing the market by meeting the housing demand of a large segment of low- and middle-income households. Social housing also stimulates construction activity, helps resolve real estate inventory, and serves as a lever to ease difficulties in the market. This, in turn, contributes to achieving the country’s strategic development goals, ensuring housing for citizens, improving labor productivity, and attracting investment.

Sixth is high return expectations across investor groups. The data indicates that while global capital continues to seek outgrowth potential in markets like Vietnam, regional players and developers remain cautious yet opportunistic, whereas Japanese institutions adhere to their risk-averse strategies.

Seventh, capital continues to shift into alternative assets across the Asia-Pacific region, following the initial boom that began in 2023. This trend reflects investors’ appetite for high-growth opportunities, leveraging long-term drivers from social and technological transformation. Overall, the Vietnamese market is demonstrating two parallel growth trajectories: digital infrastructure, particularly data centers, and rental real estate serving residential demand. Both represent substantial opportunities for domestic and international investors, while reflecting the dual growth drivers of the economy—urban development and digital transformation.

Eighth, in Vietnam, construction costs have remained relatively stable compared with regional peers. With labor and material costs showing limited growth, developers still have multiple options in the tendering process, allowing them to manage budgets more effectively. This stability provides Vietnam with a competitive edge, making it an attractive destination for foreign investors looking to deploy capital in a region otherwise constrained by rising development costs.

Ninth, artificial Intelligence (AI) is transforming how the real estate sector develops and manages projects, helping businesses move beyond traditional models that rely heavily on subjective judgment. Notably, AI also helps shorten the time needed to complete real estate M&A deals worldwide, with statistics showing that transactions can be finalized in less than seven months. This opens up significant potential for Vietnam to enhance advisory services and deal execution.

However, for AI to maximize its value, Vietnam needs a clear legal framework on data privacy and protection. At the same time, the technological shift poses challenges for the real estate workforce, requiring continuous upskilling to adapt to an increasingly digitalized environment.

Finally, sustainability has now become a central focus in investment decisions. Green certifications, energy efficiency, and retrofitting existing buildings to meet ESG standards are top priorities. In Vietnam, this trend is aligned with a wave of ESG-driven capital, which is increasingly directed toward green projects, industrial parks, and professional housing. Flexible models such as phased development partnerships or partial project transfers are gaining popularity as developers seek to optimize capital and manage risks.

At the same time, administrative boundary mergers and infrastructure upgrades are unlocking new development spaces, particularly in Hai Phong, Hai Duong, and peri-urban areas surrounding Hanoi and Ho Chi Minh City. However, challenges remain, including valuation gaps, regulatory complexities, and post-merger integration risks. To unlock Vietnam’s full potential, M&A should be approached as a long-term partnership strategy, emphasizing synergy, sustainability, and future-proof development.