Hanoi (VNA) 🌺– Vietnam’s property mergers and acquisitions (M&A) market is moving away from takeover battles driven by financial clout, as experts point to a new phase shaped by partnerships, legal expertise, risk management and long-term vision.

This year, the market is undergoing a clear shift in investor composition. Once dominated by domestic firms leveraging land reserves and capital strength, it is now witnessing the rise of foreign investors who are stepping up in both scale and strategy. The result is a more selective playing field, where efficiency and shared value take precedence over “big fish eats small fish” dynamics.

Foreign investors speed up as domestic players hold back

According to CBRE Vietnam, foreign investment in the real estate sector made up 24% of total foreign direct investment (FDI) in the past two quarters, underscoring foreign investors' robust interest. Notably, Singapore’s CapitaLand recently poured hundreds of millions of USD into Hai Dang subdivision of Vinhomes Ocean Park 3 in Hung Yen, and has outlined plans to expand its portfolio in Vietnam by 5–7 billion USD in the coming years. Foreign capital is also targeting industrial real estate. A Swedish investor has announced a 1 billion USD manufacturing plant in Gia Lai province, integrating industrial production with logistics real estate, while Kinh Bac City Development Holding Corporation (KBC) has teamed up with the Trump Organisation to develop a luxury golf course in Hung Yen, a deal combining brand value, implementation capability and international standards. Meanwhile, domestic enterprises are treading cautiously. CBRE data shows 60% have yet to engage in M&A, 39% are delaying investment plans, and 21% have frozen disbursements to preserve financial stability. The slowdown is linked to limited new supply, subdued demand and lingering financial pressures. In Ho Chi Minh City, only about 1,000 apartments and 74 low-rise houses were launched in Q2 2025, the lowest level in a decade, despite aggressive incentives such as a 16% discount, interest rate support and premium furniture packages.

Big fish no longer easily swallowing small fish

Some domestic-led deals still stand out. In one, Phat Dat Corporation transferred an 80% stake in Thuan An 1–2 project to a long-established foreign investor, combining local land and legal advantages with foreign capital, technology and development standards. According to Cushman & Wakefield Vietnam, foreign players face hurdles in accessing “clean” land and navigating legal procedures - areas where domestic firms hold a distinct edge. This local leverage enables Vietnamese developers to seek capital on favourable terms. Analysts said the market is entering a filtering phase, with M&A becoming more selective and focused on synergies in finance, brand, technology and delivery capacity. Vo Huynh Tuan Kiet, Director, National Head of Residential Project Marketing at CBRE Vietnam, noted that the field now favours investors with strategic visions and operational capability, marking a shift from opportunistic to strategic M&A. Jones Lang Lasalle (JLL) Vietnam highlighted a move away from land banking towards maximising land use efficiency through joint ventures and multi-layered cooperation. The 2024–2026 period is expected to be a peak for both deal volume and value, with success hinging on sustained collaboration as much as financial strength. If domestic firms can combine their market knowledge, land reserves and local networks with foreign partners’ capital and technology, M&A could serve not merely as an exit but as a springboard for expansion. The real estate market in 2025 is no longer a matter of “eating or being eaten” but one of strategic cooperation to grow together, experts stressed./.