Vietnam Emerges as ASEAN's Bright Spot for FDI in Real Estate, Surpassing Thailand and Malaysia

Global uncertainty persists, but Vietnam is still emerging as a bright spot for foreign direct investment (FDI) inflows into the real estate sector, according to Dr. Dinh The Hien.

Global volatility and Vietnam’s relative position

Dr. Dinh The Hien said the global economic outlook is shaped by both short-term and longer-term volatility. In the short term, shocks such as regional conflicts in the Gulf, high oil prices, and a lack of signs of cooling are adding variables that many economies and firms have not fully anticipated.

More importantly, he pointed to longer-term volatility as the global economy continues to restructure. While this can be seen through tariffs, trade, and supply-chain shifts, he emphasized that the deeper change is the recalibration of how economies connect—moving from traditional globalization toward a model based on unilateral and multilateral relations built on cooperative interests.

Trade performance and FDI-related strengths and weaknesses

Against this backdrop, Vietnam benefits from integration and globalization over many years. Dr. Dinh The Hien noted that exports in 2025 exceeded $425 billion, and Vietnam maintained a persistent surplus for several years.

However, he also highlighted weaknesses in the growth structure, including a relatively heavy reliance on the FDI sector and concerns that the quality of FDI has not yet been high.

Even so, he said Vietnam remains a bright spot compared with the region. Under cautious scenarios amid global volatility, Vietnam’s growth is still assessed as higher than the regional average. In scenarios around 8%, Vietnam is expected to outperform economies such as Thailand, Malaysia, and Indonesia.

Why Vietnam stands out versus regional peers

Dr. Dinh The Hien attributed Vietnam’s relative performance to advantages that are less common in the region. He cited Vietnam’s proximity to China, deeper participation in supply-chain restructuring, a relatively strong labor force, and still substantial room for growth.

He contrasted this with other countries’ challenges: Thailand’s need to move into higher-level creative sectors to make a new leap; Malaysia facing pressure from higher labor costs; and Indonesia benefiting from market scale but dealing with infrastructure and connectivity constraints.

Three tests for attracting sustainable foreign capital to real estate

To attract sustainable foreign capital, Dr. Dinh The Hien said Vietnam’s real estate sector must pass three major tests.

• Urbanization linked to real-economy development: Infrastructure investment is increasingly focused on key corridors and regional linkages, especially in the South, creating new growth poles and expanding the scope for new urban areas.
• Overcoming legal bottlenecks: Although the legal system has improved, practical steps—such as project handover, land-use payments, changes in land use, or valuation—remain slow. This reduces confidence for both domestic and foreign investors, who often prefer M&A or capital injections into projects with completed legal status and clear potential.
• Building long-term capital market stability: He noted that if domestic capital is not durable, foreign investors are likely to be even more cautious about funding long-term projects.

Which projects can attract foreign capital in the new cycle

Dr. Dinh The Hien said the key question in the new cycle is not only whether capital can be attracted, but which projects can become magnets for foreign money. He pointed to large projects such as VinHomes Green Paradise sea megacity as examples that must meet three conditions.

• Stable national-level planning legality
• Consistent government involvement in infrastructure development
• Implementation synchronized and on schedule

Ho Chi Minh City’s role in regional economic space

Dr. Dinh The Hien also highlighted Ho Chi Minh City’s connectivity across the region, describing it as a large economic space linking Binh Duong to Ho Tram. He said authorities can plan key zones and develop them, while the city continues to pursue new economic zones and new urban areas to open additional space for growth.

With legal, planning, and construction activity progressing strongly, he said these foundations can help reassure that the regional economy will succeed, supported by the resources, will, and readiness of Ho Chi Minh City authorities.

Forum to discuss foreign capital inflows into Vietnam’s real estate opportunities

The CaféF-organized forum “Foreign capital inflows - Vietnam's real estate opportunities” will be held on 06/04/2026. The program will bring together experts and business representatives, including Masterise Homes, to analyze trends in international capital movement.

With two in-depth sessions, the forum aims to clarify the market picture and identify potential segments in the new growth cycle. The event is positioned as a platform to help investors understand strategies to capture the foreign exchange wave entering Vietnam.

For more information and registration: https://s.biz.vn/pbv2fwC