The strong recovery of the international tourist market is providing significant momentum for the revival of Vietnam’s hospitality industry.

Vietnam’s industrial property market is heating up as foreign investors pour billions of dollars into factories, warehouses and ready-built facilities, driven by accelerating supply chain shifts and a new surge of global capital.

Vietnam’s real estate market has seen heightened mergers and acquisitions (M&A) since the start of the year, with a wave of large-scale deals driven by foreign investors, according to Savills Vietnam.

Apartment prices in central HCM City have reached record highs of up to VND600 million (US$23,500) per square metre, fuelling concerns over housing affordability and a widening gap between the property market and average household incomes.

Foreign direct investment (FDI) in the real estate sector for 2024 reached US$3.72 billion, making up 18.8% of the total FDI that Vietnam attracted in the year, second only to the manufacturing sector, reported the General Statistics Office (GSO).

Steady annual growth in FDI is a key driver of industrial real estate in Vietnam, according to Savills’ Asia Pacific Investment Quarterly report for the third quarter of the year.

Matthew Powell, head of the Hanoi and Da Nang offices of Savills Vietnam, has noted that the capital city’s hotel market still holds significant short-term recovery potential.

The real estate market in Ho Chi Minh City has witnessed positive changes over the past nine months.

A survey conducted by the real estate agency Savills Vietnam reveals that the country now has more than 400 eco-industrial zones, with the demand for this segment expected to grow in the future.

According to a socio-economic report recently published by the General Statistics Office, retail revenue for the first eight months of the year is estimated at nearly VND3.3 quadrillion (US$130.3 billion), a 7.3% increase year-on-year.