llustrative image. (Source: VNA)

According to the National Statistics Office (NSO) under the Ministry of Finance, total registered FDI in Vietnam has reached nearly 6.9 billion USD in the January-February period, marking a 35.5% year-on-year increase.

Along with Vietnam’s continued appeal to foreign investors, experts have observed a growing trend in mergers and acquisitions (M&A) in the real estate sector, with numerous investors actively seeking project acquisitions. This surge in M&A activity has also spurred domestic investors to enter the competition, leading analysts to forecast a wave of major transactions across various regions and market segments in 2025.

Vice Chairman of the Vietnam National Real Estate Association (VNREA) Nguyen Van Dinh stated that the newly enacted Land Law, Housing Law, and Real Estate Business Law will create more favourable conditions for M&A transactions. These regulatory changes are expected to eliminate previous hurdles for both buyers and sellers, ensuring smoother transactions.

Dinh also noted that these laws will transform Vietnam’s real estate market into a competitive arena for capable investors, phasing out weaker developers through a natural selection process. As a result, the 2025–2026 period is expected to witness a dynamic and diverse M&A landscape, offering higher-quality real estate products.

Nguyen Cong Ai, Deputy General Director of KPMG Vietnam, predicted that Vietnam’s M&A market will boom in 2025, with impressive figures. Key sectors such as real estate, manufacturing, information technology, and consumer goods continue to exhibit strong growth potential, attracting interest from strategic investors.

This positive outlook is bolstered by the government's policies and shifting investment trends toward technology-driven industries, including artificial intelligence (AI) and tech-enabled services. These sectors are expected to account for a significant share of M&A deals from 2025 onward.

Foreign investors' dominance

In 2024, Vietnam’s real estate M&A market recorded 13 major deals worth over 1.8 billion USD, featuring the participation of leading enterprises such as Vingroup, Becamex IDC, and Novaland. The largest transaction of the year, valued at 982 million USD, involved Vingroup transferring a 55% stake in SDI Investment and Development Co., Ltd. to several buyers, including Thien Phuc Investment and Development, Falcon Investment and Development, Emerald Investment and Development, and NP Investment JSC.

Experts emphasised that foreign investors continue to dominate Vietnam’s M&A market. Despite rising property prices, Vietnam remains an attractive investment destination due to its long-term growth potential and strong development prospects compared to other global markets.

Associate Professor Dr. Dinh Trong Thinh highlighted that foreign investors’ extensive experience in managing and operating real estate projects enhances market confidence, improving project value and efficiency. He forecast that industrial real estate will be the most attractive segment in 2025, as it remains one of the hottest markets in Vietnam.

Additionally, resort real estate is expected to gain traction, driven by economic growth and a surge in tourism. Meanwhile, premium residential properties are also anticipated to witness increased M&A activity in 2025, particularly from foreign investors, Thinh added./.