_Eyes on Vietnam: The Quiet Giant of Asian Real Estate Is Waking Up

Ho Chi Minh City, 19 June 2025 – Vietnam is emerging as one of Asia’s most compelling property investment stories, according to Knight Frank Vietnam’s newly released Vietnam Investment Guide. The report offers fresh insights into the country’s economic resilience, sector-specific real estate trends, and why Vietnam is fast becoming a magnet for global capital.

The Southeast Asian Secret Is Out

For years, Vietnam has flown just under the radar of many global investors. But with average GDP growth of 6% over the past two decades, a young and skilled workforce, rising urbanization, and massive infrastructure upgrades, the country is now in the spotlight. Projects like Long Thanh International Airport – under construction near Ho Chi Minh City with a planned capacity of 100 million passengers annually – signal Vietnam’s long-term ambition to become a regional logistics and investment hub.

Adding to the appeal, Vietnam’s exports are rapidly moving up the value chain: high-tech products now account for over 50% of total merchandise exports, a stunning leap from just 8% in 2010.

Strategic Property Sectors in Focus

Apartments: Ho Chi Minh City and Hanoi are leading Vietnam’s urban transformation. Since 1995, approximately 700,000 units have been added, but this still falls short for a combined population of over 20 million. The shortage of clear land banks and slow legal processes have pushed the market toward high-end products, with current launch absorption rates averaging 80% and primary prices reaching USD 3,000–4,000 per sqm.

Offices: There’s a clear “flight to quality” taking place in the commercial leasing space. Knight Frank reports growing demand for Grade A, green-certified buildings, especially in District 1 and Thu Thiem (HCMC) and Midtown and West Hanoi. The tech and financial sectors are driving significant leasing activity, with deals reaching up to 10,000 sqm.

Industrial: Vietnam’s industrial real estate is now a regional force. By 2024, the ready-built property market exceeded 15 million sqm, with modern warehousing making up nearly half. Electronics manufacturing leads investment activity, followed by equipment and third-party logistics (3PL) providers. The shift of global supply chains into Vietnam, particularly from China, continues to accelerate.

Confidence from the Ground Up

“Vietnam is no longer just a low-cost alternative — it’s a strategic, long-term play,” said Alex Crane, Managing Director of Knight Frank Vietnam. “The government’s reform agenda, especially under Resolution 68, is creating momentum by reducing red tape, supporting SMEs, and incentivizing innovation and technology. Despite global headwinds, the fundamentals here remain incredibly strong.”