Executive Summary
- Vietnam’s Real Estate Activities sector (VSIC 68) remains a central pillar of the country’s urbanization-driven and asset-intensive economy, supported by long-term demographic expansion, infrastructure development, and sustained demand for residential, commercial, and industrial property assets.
- Between 2022 and 2024, the sector recorded strong revenue expansion, with total industry Revenue reaching USD 49.40B in 2024, corresponding to Revenue CAGR +8.2% (2022-2024). The topline growth trajectory reflects continued market depth and structural demand for property-related activities despite cyclical adjustments in financing and transaction dynamics.
- Cost structures, however, expanded at a faster pace. Cost of Goods Sold (COGS) increased materially (COGS CAGR +13.3%), highlighting rising development costs, construction inputs, financing burdens, and project-related expenditures typical of real estate industries.
- Profitability indicators reveal a more nuanced picture. Operating Profit declined (CAGR -2.8%), while Net Profit contracted (CAGR -7.5%), signaling margin compression effects driven by cost pressures and normalization of earnings conditions following prior market expansion cycles.
- Overall, sector performance reflects revenue growth alongside profitability moderation, rather than broad-based earnings expansion.
Industry Snapshot 2024
Vietnam’s VSIC 68 sector encompasses enterprises engaged in property development, leasing, brokerage, management, and related real estate services forming the backbone of the country’s property market ecosystem.
In 2024, companies operating within VSIC 68 generated total industry Revenue of approximately USD 49.40B, underscoring the sector’s scale and its importance within Vietnam’s broader economic structure. Revenue performance over recent years reflects continued transaction activity and asset turnover across multiple property segments.
Over the same period, Cost of Goods Sold reached approximately USD 35.02B, illustrating significant cost intensity. Real estate cost structures are inherently influenced by land acquisition, construction materials, project financing, regulatory compliance, and development cycles, which collectively shape profitability dynamics.
Despite strong revenue growth, the sector recorded Operating Profit of approximately USD 6.11B, reflecting moderation relative to revenue expansion. Profitability variability in real estate industries often arises from cost inflation, financing conditions, project timelines, and market liquidity dynamics.
At the bottom line, Net Profit reached approximately USD 5.29B, indicating continued earnings generation but at compressed margins compared with earlier periods. This pattern highlights the sector’s sensitivity to cost structures and capital cycle conditions.
As of 2024, 5,739 companies were active under VSIC 68, illustrating the sector’s substantial scale and competitive breadth within Vietnam’s economy.
Industry Characteristics & Operating Landscape
Where do companies typically operate?
Real estate activities in Vietnam are heavily concentrated in major urban and economic centers, where population density, commercial activity, and infrastructure investment drive property demand.
Key concentration hubs include:
- Ho Chi Minh City – Largest commercial and residential market
- Hanoi – Political, administrative, and corporate center
- Binh Duong / Dong Nai – Industrial and logistics-driven expansion zones
- Da Nang – Emerging tourism and lifestyle property market
Geographic patterns are therefore shaped by urbanization, industrialization corridors, and investment flows, rather than uniform national distribution.
What drives demand in this sector?
Demand within VSIC 68 is fundamentally influenced by demographic trends, investment cycles, and capital market conditions.
Core drivers include:
- Urban population growth and housing demand
- Infrastructure and industrial development
- Foreign direct investment (FDI)
- Commercial and office space absorption
- Credit availability and financing conditions
Real estate demand is therefore inherently cyclical and capital-sensitive.
What defines the operational model?
Real estate industries operate under a capital-intensive, project-driven economic structure, characterized by:
- High upfront investment and long development cycles
- Sensitivity to financing costs and interest rates
- Exposure to construction and material cost dynamics
- Earnings variability linked to project completion and sales cycles
- Strong dependence on market liquidity
Profitability dynamics are therefore shaped by cost control, capital structure, and project timing efficiency.
Interpreting 2022-2024 Performance
The observed Revenue CAGR +8.2% signals continued sector expansion and transaction activity. However, revenue growth alone does not guarantee earnings expansion in capital-intensive industries.
The faster COGS CAGR +13.3% indicates significant cost pressures, likely linked to construction inputs, financing conditions, and development expenditures. This divergence between revenue and cost growth explains the moderation observed in profitability metrics.
The decline in Operating Profit (CAGR -2.8%) and Net Profit (CAGR -7.5%) highlights margin compression effects typical of real estate cycles during periods of rising costs or tightening capital conditions.
Overall, sector performance reflects topline resilience alongside earnings normalization pressures.
What This Means for Investors
- For investors, Vietnam’s VSIC 68 sector provides exposure to a structurally important but inherently cyclical industry, where performance dynamics are closely tied to capital flows, financing environments, and cost structures.
- Key considerations include:
- Cost inflation and development economics
- Credit cycles and financing conditions
- Urbanization and demographic support
- Market liquidity and absorption rates
- Policy and regulatory factors
- Value creation within real estate industries is typically associated with project selection discipline, capital structure management, cost control, and timing efficiency, rather than linear demand growth.
- Vietnam’s property sector therefore reflects the economics of a growth-supported yet margin-sensitive industry, where revenue expansion may coexist with profitability volatility.
About Datagent
Datagent is the trusted intelligence partner for company data and insights across Southeast Asia and beyond. We combine firmographics, financials, macro and micro economics into one integrated dataset — helping organizations uncover opportunities, assess markets, and make smarter, data-backed decisions across 11 dynamic economies.
Datagent provides a total of 61 firmographic data fields, comprising 22 non-financial, and 39 financial indicators with coverage spanning 2022–2024.
This report is for informational purposes only and does not constitute financial advice or an invitation to invest. Decisions should be based on independent research and professional consultation to avoid any unintended liabilities.