Vietnam's real estate M&A market continued to attract foreign capital in the first half of 2026 despite persistent global economic uncertainties, but foreign investors are increasingly targeting assets with clear legal status, stable cash flow, and strong operational performance, with data centers emerging as a key growth segment.
According to property service provider Jones Lang LaSalle (JLL) Vietnam's latest report, foreign direct investment (FDI) remained robust during the first six months, providing a solid foundation for real estate M&A activity despite elevated global interest rates and ongoing geopolitical tensions.
Data from the National Statistics Office (NSO) showed that registered FDI reached $34.65 billion in the first half, up 61% year-on-year. Meanwhile, implemented FDI rose 11.2% to $13.03 billion, the highest level for the period in five years.
However, JLL noted that the composition of FDI is shifting significantly. Manufacturing and processing continued to dominate, accounting for 82.6% of total registered FDI, while real estate M&A represented only 7.4% of inflows. The trend suggests that foreign investors are prioritizing the expansion of manufacturing operations over acquisitions in the property sector.
Investors prioritize asset quality
According to JLL, rising energy costs, escalating construction expenses, and tighter financing conditions are prompting many developers to sell existing projects rather than launch new developments. This has fueled M&A activity, as buyers increasingly prefer completed assets to reduce implementation times and minimize risks.
Investor preferences have also become more selective. Capital is increasingly directed toward projects with transparent legal documentation, strategic locations, strong infrastructure connectivity, and reputable developers.
At the same time, due diligence processes have become more rigorous, as investment funds place greater emphasis on capital preservation rather than short-term speculative opportunities.
Ta My Bach, director of capital markets transactions at JLL Vietnam, said the market is undergoing a clear shift from appreciation-driven investment strategies toward those focused on asset quality and operational performance.
"In an environment where the cost of capital remains elevated, projects capable of generating stable cash flow, offering sustainable competitive advantages, and meeting environmental, social, and governance (ESG) standards will be best positioned to attract investment," he said.
He added that market liquidity is becoming increasingly concentrated in high-quality assets capable of withstanding macroeconomic volatility while maintaining long-term operating performance. In contrast, projects that rely heavily on price appreciation or are located in areas with limited end-user demand continue to face challenges in attracting investors.
Notable transactions
Residential developments remained the largest segment of Vietnam's real estate M&A market during the first half of the year.
Among the notable transactions, DIC Corp agreed to transfer four sub-projects within the Dai Phuoc Ecotourism Urban Area in the southern province of Dong Nai. Three of them covering around 30.7 hectares were sold for more than $97 million, while the other, spanning 14.3 hectares, is expected to be transferred for over $19 million.
Joint venture structures have also become increasingly common for large-scale developments. One prominent example is the Eco Smart City project in Ho Chi Minh City's Thu Thiem New Urban Area, after city authorities approved South Korean chaebol Lotte's plan to transfer up to 35% of its equity stake to strategic partners. Subsequently, Phat Dat Real Estate Development Corporation signed an MoU with Lotte Properties and paid a deposit of $34 million to participate in the project.
Other notable transactions included TT Capital and its Japanese partners acquiring a nearly 2-hectare site in HCMC’s Nha Be; OBC Holdings purchasing the Thuan An Xanh project in the former Binh Duong province (now part of HCMC); and Bcons Group acquiring the Thuan An 2 project, also in the former Binh Duong province, from Phat Dat.
In the commercial real estate segment, KinhBac City Development Holding Corporation (KBC) completed the acquisition of 3H Vietnam Co., Ltd. and A&E Logistics Co., Ltd., giving it indirect control over the developer of a 34-story office and commercial complex in Hanoi.
Meanwhile, the industrial property sector saw seaport operator Viconship acquire a 65% stake in Harbour City for $34.7 million, strengthening its presence in industrial real estate.
The hospitality sector also remained active. The founder of SC Capital Partners completed the acquisition of the owner of Fusion Hotel Group in Vietnam, expanding its managed portfolio to approximately 16,000 hotel rooms across four Asian markets.
The hospitality sector also continued to attract investor interest, with the founder of SC Capital Partners completing the acquisition of the owner of Fusion Hotel Group in Vietnam, expanding its managed portfolio to 16,000 hotel rooms across four Asian markets.
JLL expects Vietnam's real estate M&A market to remain resilient in the second half of 2026, with investment continuing to flow into projects that offer clear legal status, high-quality assets, attractive risk-adjusted returns, and strong governance. Residential developments, hotels and resorts, data centers, and selected commercial real estate assets are expected to remain the most attractive investment segments.
JLL expects Vietnam's real estate M&A market to remain stable in the second half of 2026, with investment continuing to favor projects that offer clear legal status, high-quality assets, and attractive risk-adjusted returns. Residential properties, hotels and resorts, data centers, and selected commercial real estate assets are expected to remain the most attractive segments for investors.
