In Vietnam, green real estate M&A deals attract capital flows

According to a six-month overview of the real estate M&A market in 2026 by global commercial real estate and investment management firm JLL, energy-efficient assets emerged as the new focus of investors.

The shift has been driven primarily by tenants’ growing demand for solutions to control rising operating costs, which have been pressured by higher energy prices and geopolitical uncertainties.

JLL’s analysis showed that the majority of foreign direct investment continued to flow into manufacturing and processing industries, accounting for 82.6 percent of total registered capital in the first half of the year.

This indicated that foreign investors are prioritising capital allocation toward actual production activities at factories and logistics facilities rather than real estate M&A transactions, which accounted for only around 7.4 percent of total investment flows.

However, experts noted that projects meeting sustainable development standards are gaining a clear competitive advantage.

Ta My Bach, capital markets director at JLL Vietnam, said this transition was inevitable.

In an environment of high capital costs, projects with long-term competitive advantages and compliance with green standards will be decisive factors in attracting investment in the next phase of the market.

JLL experts also highlighted that investors’ preferences have become significantly more selective and cautious.

Capital is increasingly being directed toward projects with strong transparency, strategic locations, good infrastructure connectivity, and reputable developers.

Between January and June, the residential segment continued to lead Vietnam’s real estate M&A market.

The strength of the M&A market during the period was reflected in a series of notable deals.

In Ho Chi Minh City, the Lotte Eco Smart City Thu Thiem mega-project received a strong commitment from Phat Dat, which placed a $34 million deposit to participate in a joint venture with Lotte.

In the southern area of the city, TT Capital and Japanese partners including Cosmos Initia, Koterasu, and Hinokiya completed the acquisition of a 1.9-hectare development site on Dao Su Tich Street, with the deal value estimated at around $30 million.

Ho Chi Minh City real estate market bounces back

The Ho Chi Minh City Department of Construction said the local real estate market has continued to recover strongly after the challenging period from 2022 to 2024.

Improving liquidity, along with positive economic and property market indicators, has signalled a clear recovery trend.

Specifically, real estate revenue in the first five months of 2026 exceeded VND126 trillion ($4.8 billion).

Property credit in the city continued to expand positively, with outstanding loans for real estate activities reaching more than VND1.5 quadrillion ($57 billion).

Total investment and business activities in the sector surpassed VND538 trillion ($20.5 billion).

The city currently has five projects receiving disbursements under the VND145 trillion (US$5.5 billion) credit package, with cumulative disbursements reaching nearly VND597 billion ($22.7 million) and outstanding loans standing at VND499.5 billion ($19 million).

Under the government’s Resolution No. 33/2023, the government approved a VND120 trillion ($4.6 billion) preferential credit package, which was later expanded to VND145 trillion ($5.5 billion) for social housing.

The program is currently being implemented by nine commercial banks: Agribank, VietinBank, BIDV, Vietcombank, TPBank, VPBank, MBBank, Techcombank, and HDBank.

The municipal department forecasts that the market will continue improving in the second half of 2026, with liquidity expected to strengthen compared with the first half of the year.

Selling prices are also projected to continue rising, but projects with favorable locations and clear legal status will become more attractive.