Việt Nam strengthens appeal to long-term investors

Việt Nam strengthens appeal to long-term investors

Việt Nam is emerging as an increasingly attractive destination for long-term investors in the Asia–Pacific region, supported by macroeconomic stability, expanding domestic demand, and sustained inflows of foreign investment, according to Savills’ Asia Pacific Outlook 2026 report.

As regional property markets enter 2026 on a more stable footing, Việt Nam continues to stand out as a market with solid long-term growth prospects.

Savills noted that the recovery of leasing demand, improving consumer activity, and more selective investment strategies are creating favourable conditions for economies with strong fundamentals.

Data from the General Statistics Office (GSO) show the country’s GDP growth reflecting resilience and steady recovery.

After expanding by around 8 per cent in 2022, growth moderated to approximately 5.1 per cent in 2023 amid global economic headwinds, before rebounding to about 7.1 per cent in 2024 and reaching 8.02 per cent in 2025.

Việt Nam remains among the region’s fastest-growing economies, reinforcing investor confidence in the country’s medium- and long-term outlook.

Economic quality indicators have also improved significantly.

GDP per capita rose from roughly US$3,700 in 2022 to nearly $5,026 by 2025.

Rising incomes and the rapid expansion of the middle class are underpinning domestic consumption while driving demand for infrastructure, logistics, urban development, and modern commercial services.

Savills said these factors are reshaping Việt Nam’s property market, with growth increasingly anchored in real demand.

Demand for Grade A office space across the Asia–Pacific region is expected to remain positive, particularly in emerging talent hubs such as Việt Nam.

Multinational corporations continue to expand their presence to access skilled labour at competitive costs.

In the retail segment, improving consumer spending, tourism recovery, and the return of international brands are contributing to a more optimistic outlook.

The country’s industrial and logistics property sector remains a key beneficiary of global supply chain restructuring, including “China plus one” strategies and production diversification.

Neil MacGregor, Managing Director of Savills Việt Nam, said the country is entering a new phase of investment dynamics.

“It has moved beyond a period where investment was driven primarily by cost advantages. Capital is now increasingly directed towards higher value-added sectors such as advanced manufacturing, electronics, and modern logistics,” he said.

Total registered foreign direct investment (FDI) in 2025 reached approximately $38–40 billion, while disbursed capital hit a record high, reflecting sustained confidence among foreign investors.

European investment flows are becoming more selective, focusing on technology, high-tech manufacturing, processing industries, and logistics.

The progressive implementation of the EU–Việt Nam Free Trade Agreement (EVFTA) is expected to further strengthen Việt Nam’s role in global supply chains.

Large-scale public investment in infrastructure is also emerging as a central growth driver. The acceleration of key transport and logistics projects is expected to improve regional connectivity and stimulate new growth corridors.

MacGregor emphasised that infrastructure development would be the most important catalyst for Việt Nam’s property market over the coming decade.

“Infrastructure will shape the next phase of growth. Markets supported by real demand, connectivity, and long-term planning will attract sustained investment,” he said. 

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