July 09, 2026 | 06:40

Property M&A: foreign capital favors yield-generating assets in H1

Thảo Anh

While the processing and manufacturing sector accounted for the vast majority of total registered FDI at 82.6%, real estate M&A transactions represented only about 7.4%.

Property M&A: foreign capital favors yield-generating assets in H1
Illustrative photo.

The Vietnamese real estate Mergers and Acquisitions (M&A) market is entering a repositioning phase as foreign investor appetite shifts noticeably from seeking profit through asset appreciation to focusing on asset quality and actual operational efficiency.

According to JLL Vietnam’s market overview for the first half of 2026, Vietnam continues to maintain its appeal to international capital despite a challenging global macroeconomic environment.

Data from the National Statistics Office shows that total registered FDI in the first six months reached $34.65 billion, a 61% increase compared to the same period last year. Notably, implemented FDI was estimated at $13.03 billion—an 11.2% increase and the highest disbursement level for the first half in the last five years.

However, JLL noted that the structure of capital has changed significantly as global interest rates remain high and foreign investment funds become more cautious in re-evaluating asset values in Vietnam.

While the processing and manufacturing sector accounted for the vast majority of total registered FDI at 82.6%, real estate M&A transactions represented only about 7.4%. JLL suggests this reflects a trend where investors prioritize expanding production operations over increasing property holdings while global interest rates remain elevated.

The report also highlights that many developers are choosing to divest projects rather than continue implementation due to rising energy prices, escalating construction costs, and tightening credit conditions. This has driven a trend where investors seek established assets instead of developing projects from scratch in order to shorten investment cycles and minimize risks.

Furthermore, the due diligence process has become considerably more stringent. While price appreciation was once the primary draw for investors, asset quality, cash-flow generation, and long-term operational efficiency have now become the decisive criteria.

Consequently, projects with transparent legal status, strategic locations, strong infrastructure connectivity, and those backed by reputable developers are gaining an edge in attracting capital.

Director of Capital Markets at JLL Vietnam, Mr. Ta My Bach, noted that the market is seeing a clear transition from strategies based on price growth expectations to those based on asset quality and performance.

"In a high-cost capital environment, investors are increasingly prioritizing projects capable of generating stable cash flow, possessing long-term competitive advantages, and meeting sustainable development standards, as these will be the key factors in attracting capital in the coming period," said Mr. Bach.

Attention
The original article is written and published on VnEconomy in Vietnamese, then translated into English by Askonomy – an AI platform developed by Vietnam Economic Times/VnEconomy – and published on En-VnEconomy. To read the full article, please use the Google Translate tool below to translate the content into your preferred language.
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