Vietnam real estate market shows recovery amid corporate tax complexities

Vietnam's resort real estate market is showing signs of recovery in the second quarter of 2026. Data indicates that nine projects received investment policy approval and four new construction permits were issued, covering approximately 1,807 tourist apartments and 942 villas, representing a 133.3% increase compared to the first quarter of 2026. The sector is attracting significant foreign direct investment (FDI) as tourism growth provides momentum for the segment.

However, challenges remain, including planning inadequacies that lead to supply-demand imbalances and inconsistent infrastructure regarding transport, electricity, and water. Additionally, businesses face difficulties accessing capital for long-term projects. Experts suggest that legal frameworks need synchronization and a focus on sustainable, green real estate to ensure long-term stability.

Separately, Phat Dat Real Estate Development Corporation (PDR) reported an unusually high effective tax rate of nearly 57% for the first half of 2026. While the company recorded a pre-tax profit of 505 billion VND, the after-tax profit was only 218 billion VND. This spike is attributed to the consolidated financial reporting structure, where losses from subsidiaries, specifically the Ben Thanh - Long Hai project, offset the group's total pre-tax profit without reducing the total tax liability paid by profitable subsidiaries like Binh Duong High-rise Investment and Development JSC.