Positive macro economy - an opportunity for the real estate market to flourish
In the first 8 months of 2025, Vietnam's macro economy continued to record positive growth momentum. According to data from the Statistics Office (Ministry of Finance), total foreign direct investment (FDI) in Vietnam in the first 8 months of this year increased by 27.3% over the same period last year, estimated at 26.14 billion USD. Total realized FDI capital is estimated at 15.4 billion USD, up 8.8% over the same period last year. The number of international visitors to Vietnam during this period is estimated at 13.9 million, an increase of 21.7% over the same period in 2024. Total retail sales of consumer goods and services increased by 9.4%, estimated at VND 4,579 billion.
In the context of the macro economy maintaining a positive rhythm, the real estate market also showed bright spots. In the first 8 months of the year, the whole country recorded 3,543 new real estate businesses, an increase of 12% over the same period last year.
Notably, the number of enterprises returning to operation is 3,372 - an impressive growth rate, up to 811% over the same period last year, partly reflecting the confidence of enterprises in market prospects. The previous difficult period caused many businesses to temporarily suspend operations and leave the market. The return of businesses to operation shows that the "clean" trend may be over, the remaining businesses have better capacity and adaptability, or have successfully restructured.
Sharing with Lao Dong, Dr. Tran Xuan Luong - Deputy Director of the Vietnam Institute for Real Estate Market Research and Evaluation - said that the Vietnamese economy in general and the real estate market in particular are facing a crossroads with great opportunities from the context of macroeconomics and geopolitics. According to him, an economy that wants sustainable development needs to rely on four pillars: People, land - resources, capital and technology. Vietnam is currently in the golden population period, creating development advantages when the labor force is abundant and the demand for housing is increasing. Regarding land, a series of new policies from the amended Land Law to the two-level government model, along with large-scale land consolidation and re-planning, are opening up room for effective exploitation, creating resources for production and infrastructure. Regarding capital sources, when land problems and procedures are resolved, combined with the advantage of a golden population, FDI capital flows and accumulated capital among the people will be strongly activated.
In terms of technology, the comprehensive digitalization process in both enterprises and state agencies is helping to increase labor productivity, reduce transaction costs, and improve investment efficiency. If Vietnam knows how to make good use of these four pillars along with the implementation of Resolution 68 and the strong instructions of the Party, it will have the opportunity to rise to the level of developed economies in the region.
According to Dr. Luong, the three main driving forces driving the current real estate market include: institutional breakthrough with the Land Law, Housing Law, revised tax and financial policies in a more transparent direction, bringing land to the right users; changes in supply and demand when the supply of social housing increases, contributing to bringing commercial housing prices back to a reasonable level; and public investment focusing on transport infrastructure, energy, education, healthcare, creating a spillover effect and opening up new development space.
He also emphasized that real estate businesses need to proactively transform. Accordingly, businesses need to actively research and adapt to new policies; re- positionalize products, prioritize the "real estate" segment such as affordable apartments, houses associated with industrial parks and residential areas with synchronous planning; accompany the Government in implementing Resolution 68, taking advantage of opportunities to access land, infrastructure and support policies for small and medium-sized enterprises.
Proposing solutions and removing difficulties for the real estate market
Ms. Pham Thi Mien - Deputy Head of the Market Research and Investment Promotion and Consulting Department of the Vietnam Real Estate Brokers Association - commented that besides opportunities, the real estate market still has many difficulties and challenges. Accordingly, the time for project approval and licensing is still long; businesses are heavily dependent on credit capital; supply and demand are seriously unbalanced; real estate prices continue to increase abnormally and lack regulating tools. In addition, the market is also at risk from global economic fluctuations, interest rates, and exchange rates. For the Vietnamese real estate market to develop in a safe, healthy and sustainable direction, Ms. Mien said that many solutions need to be implemented synchronously.
On the management side, it is necessary to continue to improve the legal framework and administrative procedures in the spirit of openness to the law, listening to the comments of businesses and people. At the same time, promote the capacity of local management teams, avoid the phenomenon of fear of responsibility when implementing policies that causes projects to encounter difficulties and cannot be implemented. In addition, it is necessary to promote the completion of the market data information system, moving towards issuing policy tools to regulate the market.
In addition, it is necessary to continue researching and developing preferential policies and land funds for the development of the social housing segment. Encourage businesses to participate in developing social housing and affordable commercial housing. In addition, it is necessary to continue to promote investment, especially key transport infrastructure projects, expand development space, promote regional and inter-regional connectivity.
On the business side, it is necessary to proactively restructure operations, diversify capital sources, and at the same time promote the application of digital transformation to optimize governance and improve efficiency. Along with that, integrating social factors into business strategies is also an important requirement, helping businesses develop sustainably and in line with current trends.
