Vietnam’s commercial real estate market is at a crossroads, marked by rapid development yet uneven growth across sectors. While key cities like Ho Chi Minh City and Hanoi have witnessed a boom in premium office spaces and retail complexes, the market faces challenges from oversupply in some areas and limited transparency. Industrial real estate, however, remains a bright spot, fuelled by Vietnam’s emergence as a global manufacturing hub, supported by trade agreements and a competitive labour market.
The retail sector is undergoing a transformation, with traditional shopping formats adapting to the rise of e-commerce. Developers are focusing on integrated spaces that blend shopping, dining, and entertainment to meet evolving consumer demands. Office demand, while recovering post-pandemic, is increasingly shifting towards flexible workspaces and decentralised locations. International brands and multinational corporations are actively seeking space but remain cautious due to fluctuating regulatory frameworks.
Despite these complexities, Vietnam’s commercial real estate sector holds significant potential. Continued urbanisation, coupled with infrastructure investments like metro systems and highways, is expected to unlock new growth corridors. However, long-term sustainability will require improved governance, better urban planning, and strategies to attract high-quality tenants while addressing the challenges of affordability and infrastructure gaps.
Commercial real estate in Vietnam in numbers
Vietnam’s commercial real estate market is projected to reach a market value of US$49 billion in 2024 and is expected to grow at a compound annual growth rate of 2.34 percent, reaching US$55 billion by the end of 2029, according to Statista.
HCMC, commercial rents per US$/m², Q3 2024, VND millions
| VNDmns | US$ | |||
| Development | Min | Max | Min | Max |
| Marina Central Tower | 70 | 80 | 2,757 | 3,150 |
| The Hallmark Building | 41 | 48 | 1,615 | 1,890 |
| L’Mak 68 Phan Dang Luu | 19 | 25 | 748 | 984 |
| Average | 43 | 51 | 1,706 | 2,008 |
Hanoi, commercial rents per US$/m², Q3 2024, VND millions
| VNDmns | US$ | |||
| Development | Min | Max | Min | Max |
| Capital Place | 32 | 40 | 1,260 | 1,575 |
| Lotte Mall West Lake | 31 | 32 | 1,221 | 1,260 |
| Vinacomin Tower | 17 | 19 | 669 | 748 |
| Lancaster Luminaire | 25 | 27 | 984 | 1,063 |
| Average | 26 | 30 | 1,034 | 1,162 |
Source: Ministry of Construction
Foreign FDI in Vietnam’s real estate industry
In October 2024, Vietnam’s real estate sector recorded a significant increase in foreign direct invested projects, with nine new projects compared to just two in September, according to Ministry of Planning and Investment data. However, the sector’s registered capital in October saw a decline of 16.91 percent from the previous month, totalling US$846.43 million compared to September’s US$1.02 billion.
Year-to-date, the real estate industry has attracted 64 projects, with cumulative capital reaching approximately US$5.23 billion, reflecting strong interest from foreign investors despite fluctuations in monthly capital inflows.
Domestic commercial real estate firms in Vietnam
Vietnam’s commercial real estate sector is not only shaped by international investors but also by several leading domestic firms that play a vital role in the country’s urbanisation and economic growth. These companies are driving the development of office spaces, residential areas, industrial zones, and retail centres, catering to the growing demand for modern infrastructure. Below are some of the most prominent domestic commercial real estate firms in Vietnam:
Vinhomes
As a subsidiary of Vingroup, Vinhomes is Vietnam’s largest commercial real estate developer, managing projects in over 40 cities and owning 16,000 hectares of land. Iconic developments include Landmark 81, Vietnam’s tallest building.
Hung Thinh Land
Founded in 2002, Hung Thinh Land is a key player in Vietnam’s real estate market, holding a 4 percent residential market share between 2016 and 2020. Its land bank spans approximately 4,500 hectares across Ho Chi Minh City and nearby provinces.
Khai Hoan Land
Since its establishment in 2009, Khai Hoan Land has gained prominence in southern Vietnam’s real estate market. Known for its robust property distribution network, the company also integrates social initiatives, such as fostering a corporate reading culture.
Becamex IDC
Becamex IDC, a state-owned enterprise founded in 1976, specialises in industrial and urban area development, particularly in Bình Dương Province. Its diverse operations also extend to finance and telecommunications, solidifying its role as a multi-sector leader.
Foreign commercial real estate firms in Vietnam
Vietnam’s commercial real estate market has attracted significant interest from foreign firms, contributing to the country’s rapid urban development and economic growth. Notable international companies operating in Vietnam include:
CBRE Vietnam
A subsidiary of CBRE Group, a global leader in commercial real estate services, CBRE Vietnam offers comprehensive advisory and transaction services, property management, and research. Their extensive market insights assist both local and international clients in navigating Vietnam’s dynamic real estate landscape.
Knight Frank Vietnam
Operating in one of Asia’s fastest-growing markets, Knight Frank Vietnam provides a full spectrum of commercial advisory services. They support owners, occupiers, investors, and developers across various aspects of commercial real estate, focusing primarily on Ho Chi Minh City and Hanoi.
Cushman & Wakefield Vietnam
As a global real estate services firm, Cushman & Wakefield offers expertise in property management, facilities services, and investment management. Their presence in Vietnam underscores the country’s growing importance in the regional real estate market.
These foreign firms, among others, play a crucial role in enhancing Vietnam’s commercial real estate sector by introducing international standards and practices, thereby contributing to the country’s ongoing urbanisation and economic development.
Commercial real estate regulations in Vietnam
Vietnam’s commercial real estate sector is governed by a comprehensive legal framework designed to regulate market activities and ensure transparency. The primary legislation includes the Law on Real Estate Business, the Law on Land, and the Law on Housing, each addressing specific aspects of real estate transactions and ownership.
Law on Real Estate Business 2023
Enacted on 28 November 2023 and effective from 1 January 2025, this law introduces significant reforms to enhance market transparency and investor confidence. It delineates the scope of permissible activities for both domestic and foreign-invested enterprises, specifying conditions under which they can engage in real estate transactions. Notably, it allows certain foreign-invested companies to operate on par with domestic firms in specific scenarios, provided they meet stipulated conditions.
Foreign Ownership and Participation
Foreign individuals and entities are permitted to lease land in Vietnam, with leasehold periods typically up to 50 years, extendable under certain conditions. Direct land ownership by foreigners is generally prohibited; however, they can own residential properties, such as apartments and houses, within designated projects, subject to specific quotas and regulations. The 2023 law further clarifies the rights and obligations of foreign-invested enterprises, categorising them based on ownership percentages and compliance with investment procedures.
Regulatory Developments
To support the implementation of the Law on Real Estate Business, the Vietnamese government has issued decrees providing detailed guidance on various aspects, including capital requirements, transaction procedures, and brokerage activities. For instance, Decree No. 96/2024/ND-CP, effective from 1 August 2024, sets transaction limits for small-scale real estate businesses and mandates certification for brokers, aiming to curb speculation and enhance market transparency.
These regulations collectively aim to foster a stable and transparent commercial real estate environment in Vietnam, balancing the interests of domestic stakeholders and foreign investors.
What’s next?
Vietnam’s commercial real estate market has been evolving, shaped by urbanisation, economic changes, and foreign investment. Key cities such as Ho Chi Minh City and Hanoi dominate the market, with office spaces and industrial parks in high demand due to the influx of multinational corporations and the country’s growing role in global supply chains. Retail spaces are transitioning to meet shifting consumer preferences, focusing more on integrated facilities that blend shopping, dining, and entertainment.
All of that said, Vietnam’s commercial real estate market can be dynamic and change quickly. With this in mind, to keep up with the latest developments in Vietnam’s commercial real estate space, foreign firms should make sure to subscribe to the-shiv.