Ho Chi Minh City and Hanoi Shine as Top Investment Destinations in the 2023 Asia-Pacific Survey

• 23 July 2023
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A recent Asia-Pacific Investor Interest Survey 2023 released by CBRE reveals some great news for Vietnam’s real estate sector. Based on the experience of 500 regional real estate investment experts, Ho Chi Minh City and Hanoi have been ranked as the top 10 most attractive destinations for cross-border investment in the Asia-Pacific region. Ho Chi Minh City has risen to third place, surpassing even some of Australia’s most prominent cities, while Hanoi ranks ninth above Korea’s Seoul.

The dynamic economic growth and favourable investment climate have made Vietnam a prime choice for foreign investors from Asian countries and territories, including Hong Kong, Singapore, China, the Republic of Korea, and Japan. The country’s urbanization rate, forecasted to reach 42% by 2025, indicates significant potential in the real estate market, driven by a rising middle-class population that is magnetizing real estate investments.

Singaporean firms have been actively exploring investment opportunities in Vietnam. Keppel Land, a renowned real estate developer, has entered into a partnership with Vietnam’s Khang Dien Group to embark on residential area building and sustainable urban development projects in Ho Chi Minh City. Keppel Land’s CEO, Louis Lim, emphasized the company’s commitment to strengthening its presence in Vietnam, recognizing the country’s long-term potential.

In another notable deal, Sembcorp Development partnered with Becamex IDC to develop five green, smart, and sustainable industrial parks in Vietnam, with a total investment of approximately 1 billion USD. These industrial parks will adopt cutting-edge technologies, reinforcing Vietnam’s reputation as an attractive investment destination.

The PropertyGuru Group’s report, “Vietnam Real Estate: Perspectives from China and Southeast Asian Countries,” highlights Vietnam’s open economic policy and integration into global supply chains as drivers of growth. The country’s resilience in its supply chain has significantly enhanced the appeal of its real estate market to foreign investors.

With a vision of expanding and completing transport infrastructure, including seaports, highways, high-speed railways, and airports, Vietnam aims to further enhance its attractiveness to foreign direct and indirect investment in the real estate sector. In 2022, the real estate sector accounted for 16.1% of the country’s total foreign direct investment, attracting more than 4.45 billion USD.

The recognition of Ho Chi Minh City and Hanoi as top investment destinations in the Asia-Pacific region reaffirms Vietnam’s status as an emerging powerhouse in the global real estate landscape. With a robust growth trajectory and an appealing business environment, Vietnam’s real estate sector remains poised for continued success and growth on the international stage.

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