The presence of both Vietnamese megacities in the global top tier of Savills’ latest Growth Hubs Index reflects the country’s strong growth potential and its growing role in regional value chains.
The index, which evaluates 245 cities worldwide through 2035 to identify the world’s fastest-growing “growth hubs,” highlights Asia as the primary engine of global urban growth over the next decade, supported by fundamentals such as a young population, rapid urbanization and ongoing shifts in global manufacturing.
Ho Chi Minh City’s central business district. Photo by VnExpress/Quynh Tran |
Chris Marriott, CEO of Savills Southeast Asia, noted that a young demographic is providing a powerful impetus for regional economies. A strong labor force, rising consumption and accelerated urbanization are driving demand across various real estate segments, ranging from industrial and logistics to residential and mixed-use developments.
Furthermore, the “China + 1” strategy continues to accelerate the wave of manufacturing relocation to emerging markets, with Vietnam emerging as a premier destination.
The steady influx of foreign direct investment is not only bolstering the manufacturing base but also creating a spillover effect on the real estate market, particularly in HCMC and Hanoi, which serve as the country’s primary hubs for infrastructure, labor and consumer demand.
Neil MacGregor, CEO of Savills Vietnam, remarked that Vietnam possesses all the drivers to maintain high growth, from infrastructure and foreign investment to domestic demand.
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High-rise buildings in Hanoi. Photo by VnExpress/Giang Huy |
However, Savills cautioned that rapid growth alone does not guarantee long-term appeal. Resilience is an increasingly practical benchmark for evaluating a city. This encompasses economic foundations, technology ecosystems, Environmental, Social, Governance standards, and the quality of the living environment. The execution of development strategies is also emerging as a key factor.
Established global leaders such as New York, Tokyo, London and Seoul tend to be able to balance economic expansion with quality of life while continuously investing to enhance their overall competitiveness.
For Vietnam, infrastructure is seen as a foundational factor enabling it to transform its growth potential into sustainable development capacity.
A large-scale wave of public investment is gradually reshaping the market structure. Vietnam has around 234 infrastructure projects underway, representing an estimated total investment of about VND3.4 quadrillion (US$129 billion).
Major works such as Long Thanh International Airport, metro systems in Hanoi and HCMC, and more than 380 kilometers of newly operational sections of the North–South expressway are creating new economic development corridors.
Apart from improving connectivity, infrastructure is also reshaping urban space and investment flows. Areas surrounding Hanoi and HCMC are gradually emerging as new growth poles, while industrial real estate is directly benefiting from the development of integrated manufacturing and logistics ecosystems.
Factors such as quality of life, the environment, education and healthcare, often regarded as “soft infrastructure,” are also increasingly influencing decisions by businesses and high-skilled labor forces. These elements are also becoming core components of a city’s long-term competitiveness.
As the global growth center continues to shift toward Asia, Vietnam is targeting double-digit economic growth, anchored by infrastructure investment and FDI inflows.
However, as experts note, the decisive factor lies not only in the scale of investment but also in implementation efficiency, ranging from project timelines and the legal framework to the financial environment.
In the long term, with a stable economic foundation, sustained positive FDI inflows and rapid urbanization, the market outlook remains highly positive.
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