The Vietnamese real estate market is undergoing a meaningful change. Formerly opaque, it is indeed evolving into a obvious trading environment driven by systematic data. This shift enables domestic companies entering Vietnam to access real estate details more efficiently through professional consultants, eliminating the need to rely on disparate channels.

This change is underpinned by extensive data collection efforts. With over 50,000 commercial real estate data points established in Ho Chi Minh City, Hanoi, and Da Nang, Al Squadia Vietnam, led by President Shin Ji-min, is playing a pivotal role. The company, experiencing an average annual growth of 60%, is assisting Korean companies navigating the Vietnamese real estate landscape.

“The Vietnamese office rental market has turned into a tenant advantage market due to the increase in supply.”

Shin Ji-min notes that the Vietnamese office rental market has shifted in favor of tenants due to increased supply. Since the second half of 2023, the rise in new office spaces in major cities like Hanoi and Ho Chi Minh City has allowed companies to secure office space under more favorable conditions.

Conversely, the property trading market remains favorable for sellers, largely due to legal constraints surrounding property ownership and development for foreign investment companies (FDI). Shin Ji-min explains that most offices available in Vietnam are owned by local companies.

Manufacturing investment is increasingly concentrated in the northern region.Unlike the industrial complexes near Ho Chi Minh city, the northern part of the country is attracting significant attention. The influx of high-tech manufacturers in sectors like electronics, batteries, and automobiles is driving rapid growth in industrial real estate demand.

Major global corporations such as Foxconn and Samsung Electronics operate large factories in the north. Areas like Park Ninseong are emerging as key semiconductor production hubs. shin ji-min emphasizes that despite recent political changes, economic cooperation between Korea and Vietnam continues to expand.

Shin advises domestic companies considering entering Vietnam to exercise caution.he warns against relying solely on optimistic outlooks and stresses the importance of understanding local consumer preferences. Traditional marketing strategies like discount promotions often fail to overcome the preference for local products and services. Vietnamese consumers tend to revert to local services shortly after foreign companies’ promotional events.

He also recommends conservative time and cost planning.”In Vietnam, business is not fast, and the cost is more than expected,” he cautions.

Complete solutions are becoming more prevalent in the Vietnamese real estate service market. The previous need to engage separately with real estate brokers, interior companies, and law firms is being streamlined, with services now encompassing corporation establishment, office leasing, and interior construction.

Services targeting Chinese companies are also on the rise. Companies seeking to relocate production bases from China are demanding comprehensive services ranging from real estate to corporation establishment, accounting, and taxation. Related companies are strengthening their alliances with local banks to meet this demand.

The most notable improvement is the enhanced accessibility of information. Previously, even public data such as land ledgers and registered copies were not systematically managed, forcing companies to rely on local brokers. this environment is rapidly changing.

“We can systematically provide detailed information from the delegation performance to rent,parking number,and 24-hour open through professional consultants,” Shin states.

Shin, who first entered the Vietnamese market in 2018, initially faced significant challenges in collecting lease space and building information due to limited information access. “At the time, the Vietnamese office market was not as systematic as Korea,” he recalls. “Our team has been looking for a building for several months and gathering information.”

A thorough localization strategy has also been crucial to success. Of the 60 employees in the Vietnamese branch, less than 10% are Korean. “Industries that have not had a big technology gap can be easily catched up with local companies,” he said.

These efforts have fueled significant growth for Al Squadia Vietnam. Last year, the company recorded a 60% year-on-year sales increase. This year, Daewoo E & C entered the first large construction project by receiving orders for commercial facility interior construction in Star Lake City.

Last year,Samsung Electronics signed a strategic partnership with Vietnam to provide integrated solutions for real estate for local commercial real estate. So far, more than 200 corporate customers have been secured, and many of the Vietnamese factories and office lease contracts of global companies such as Taiwan, Germany, and india, as well as large Korean companies such as SK Energy, POSCO Group, and Shinhan Life Insurance, have been made.

Shin Ji-min concludes, “We will continue to target the Southeast Asian market, which is lacking informatization, and become a real estate company.” The Vietnamese commercial real estate market, once plagued by information scarcity, is now transforming into a transparent transaction environment based on systematic data. This improved information infrastructure is facilitating more informed and accurate decisions for Korean companies entering Vietnam.