Vietnam’s strong economic performance, tourism recovery, urban expansion and resilient domestic demand are emerging as key factors strengthening investor confidence in the country, according to Savills Vietnam.
The real estate consultancy said global investors are becoming increasingly selective amid heightened uncertainty, with greater focus being placed on markets supported by sustainable growth, strong fundamentals and long-term demand drivers.
Vietnam’s economy expanded by 7.83% year-on-year in the first quarter of 2026, based on data from the General Statistics Office (GSO). Growth was supported by multiple sectors including manufacturing, exports, services and domestic consumption.
Savills said the broad-based nature of growth reflects healthy economic activity across different parts of the economy.
The services sector expanded 8.18% in Q1 2026, contributing more than half of overall GDP growth. Wholesale and retail trade grew 9.62%, transportation and logistics increased 8.95%, while accommodation and food services expanded 7.49%.
Beyond GDP figures, domestic consumption and tourism indicators have also shown improving momentum.
Retail sales and consumer service revenue reached approximately VND1.9 quadrillion during the first quarter, representing a 10.9% year-on-year increase.
International visitor arrivals also reached 6.76 million, marking the strongest first-quarter performance on record.
Tourism Recovery Supports Real Estate Demand
Tourism continues to be one of Vietnam’s strongest economic recovery drivers, with the country recording 10.6 million international visitors in the first five months of 2026.
The figure represents nearly 15% growth compared with the same period last year and the highest number recorded for the January-May period.
Savills noted that the tourism recovery is supporting demand for real estate linked to hospitality, lifestyle and service experiences.
Developers are increasingly introducing products targeting both domestic and international buyers, including accommodation, resort developments and second homes.
One segment seeing strong growth is branded residences, which combine residential ownership with professionally managed hospitality services under international brands.
According to Savills’ Branded Residences Report, Vietnam currently has more than 50 branded residential projects involving 34 international brands, placing it among the world’s four largest branded residence markets.
Major hotel operators including Marriott International, IHG Hotels & Resorts and Accor account for around 40% of total supply.
Savills Vietnam said interest in branded residences continues to grow, particularly within mixed-use developments and high-end residential projects.
Urbanisation Drives Long-Term Investment Potential
Apart from economic and tourism growth, urbanisation and infrastructure development remain important considerations for investors.
Savills highlighted that strategic planning initiatives in major cities such as Hanoi and Ho Chi Minh City, as well as other provinces, are expanding urban capacity and improving connectivity.
These developments are expected to support population growth, business activity and future capital deployment.
Nguyen Le Dung, Head of Investment Advisory at Savills Hanoi, said investors are looking beyond short-term growth rates and increasingly evaluating whether a market can sustain growth over the long term.
Factors such as infrastructure, urban quality, planning frameworks and genuine end-user demand are becoming increasingly important in investment decisions.
Strong Foundations Support Vietnam’s Outlook
Savills said long-term planning has improved market predictability, which has become increasingly valuable as global economic uncertainty remains elevated.
For Vietnam, confidence is being supported by a combination of economic expansion, growing services activity, tourism recovery, urban development and resilient domestic demand.
“These factors together provide a solid foundation for Vietnam’s long-term investment outlook,” Savills said.
