Vietnam's real estate market saw significant activity in July 2025, especially in mergers and acquisitions (M&A), as a wave of new policies and administrative reforms paves the way for a more transparent and sustainable growth.

According to Ms. Nguyen Le Dung, Head of Investment Advisory Services at Savills Hanoi, domestic investors have recently dominated the deal count, thanks to their quick decision-making and in-depth market knowledge. However, foreign investors continue to lead in large-scale transactions, particularly in the high-end residential, urban development, and industrial real estate segments.

Recent deals include Capitaland (Sycamore)'s $553 million acquisition of a project in Binh Duong from Becamex IDC; and a partnership between Sumitomo Forestry, Kumagai Gumi, NTT Urban Development, and Kim Oanh Group to develop The One World project.

Another key transaction was Nishi Nippon Railroad's purchase of a 25% stake in the Paragon Dai Phuoc project from Nam Long. These transactions highlight the strong interest from Japanese, South Korean, and Singaporean investors, alongside the recent emergence of funds from the US and Europe.

Looking toward the end of 2025, Savills anticipates the M&A market will maintain its strong growth, driven by legal reforms, proactive economic diplomacy, and capital seeking sustainable value.

Notably, many investment funds now consider ESG (Environmental, Social, and Governance) criteria and long-term efficiency as prerequisites, fueling deals in green projects, industrial parks, and housing for experts.

Furthermore, flexible structures like joint ventures, phased acquisitions, and partial transfers remain popular to enhance flexibility and optimize capital flow.

Additionally, the ongoing reorganization and merger of provincial-level administrative units are expected to unlock new development opportunities and facilitate investment flows, including for real estate M&A.

Areas situated on former administrative boundaries, which possess strategic locations and high potential for urban growth, are poised to benefit first, particularly when these changes are coupled with comprehensive master planning, infrastructure investment, and enhanced regional connectivity.