The Vietnam real estate market continues to attract growing interest from international investors, driven by the country’s strong economic fundamentals, rapid urbanization, and expanding industrial base. However, infrastructure constraints and land-use policies remain key concerns for foreign investors evaluating long-term opportunities in Vietnam.
These topics were at the center of discussions during the NAI Vietnam Asia Pacific Regional Meeting 2025, held in Ho Chi Minh City on May 22, where industry leaders and professionals in real estate market shared their perspectives on the opportunities and challenges shaping the future of real estate investment in Vietnam.
Integrated Township Development Emerges as a Key Growth Trend
During a panel discussion, Lucas Ignatius Loh Jen Yuh, CEO of Nam Long Group, reflected on the company’s transformation over the past three decades from a construction contractor into one of leading Vietnam real estate market developers.
Nam Long has increasingly focused on integrated township development, delivering large-scale urban communities across Long An, Dong Nai, and Ho Chi Minh City. These projects combine residential, commercial, retail, and community facilities to create sustainable living environments that support long-term economic growth.
“Integrated urban area development requires close supervision, particularly in retail, office, and hospitality segments. We are also working with partners to deliver complete, sustainable projects,” Yuh said.
He noted that the suburbanisation trend is creating new opportunities for real estate investment in Vietnam as residents and businesses gradually expand beyond traditional city centers. Satellite cities surrounding Ho Chi Minh City are expected to play an increasingly important role in accommodating future population and economic growth.
However, Yuh emphasized that transportation infrastructure remains a critical factor in determining the success of these developments.
“It cannot take three to four hours to commute just 50 kilometers to downtown. Without stronger infrastructure, suburbanisation will remain difficult,” he said.
Infrastructure Development Remains a Critical Challenge
Infrastructure was consistently identified as one of the most significant barriers to the continued growth of the Vietnam real estate market.
Paul Tonkes, Deputy Director of Indochina Kajima, explained that Vietnam currently faces different infrastructure challenges across its major urban centers and emerging industrial regions.
Tier-1 cities such as Ho Chi Minh City benefit from well-established economic ecosystems but continue to struggle with congestion and aging infrastructure. Meanwhile, Tier-2 provinces are experiencing rapid industrial expansion, yet logistics networks often lack the capacity needed to efficiently connect factories, ports, and transportation corridors.
These inefficiencies can increase operating costs, reduce productivity, and ultimately affect investment returns for both domestic and international investors.
As Vietnam continues to attract manufacturing investment and supply chain diversification, industry experts believe that strategic infrastructure development will be essential to maintaining the country’s competitive position in the global economy.
Land-Use Policies Create Financing Challenges for Foreign Investors
In addition to infrastructure concerns, foreign investors highlighted land-use regulations as another challenge affecting real estate investment in Vietnam.
Unlike countries such as New Zealand, where freehold land ownership provides greater flexibility for financing and capital raising, Vietnam’s land-lease framework can make access to funding more complex.
Andrew Bruce, Owner and Principal of NAI Harcourts North Shore in New Zealand, noted that leased land structures often create difficulties when seeking financing from lenders.
Alex Waddey, President and CEO of NAI Global, identified land lease arrangements as a significant consideration for international investors evaluating opportunities in Vietnam.
Bjarne Bauer, Managing Partner of NAI Sofia Group Shanghai, added that land-lease contracts frequently involve additional fees and administrative requirements that can impact investment costs and project feasibility.
While these policies are designed to support long-term land management objectives, investors believe further regulatory refinement could improve market accessibility and encourage additional foreign investment.
Long-Term Outlook for the Vietnam Real Estate Market Remains Positive
Despite the challenges surrounding infrastructure and land-use regulations, industry leaders remain optimistic about the long-term prospects of the Vietnam real estate market.
Experts agreed that ongoing infrastructure investment, regulatory improvements, and urban planning initiatives demonstrate the government’s commitment to sustainable economic development and real estate growth.
Tam Nguyen, Principal of NAI Vietnam, emphasized that Vietnam continues to offer compelling opportunities for international investors willing to adopt a long-term perspective.
“Vietnam continues to show great promise. International firms that strategize meticulously and embrace long-term visions are exceptionally well-positioned for success here,” he said.
As infrastructure networks expand and regulatory frameworks continue to evolve, Vietnam is expected to strengthen its position as one of Asia Pacific’s most attractive destinations for real estate investment. For foreign investors seeking long-term growth opportunities, the country’s expanding urban centers, industrial hubs, and integrated township developments continue to present significant potential.
