Vietnam’s real estate landscape is undergoing a significant transformation, with major players like Novaland and Flamingo Holdings at the forefront of both innovation and challenge. As the country’s resort property sector pivots toward sustainability and operational excellence, new business models and employee incentives are shaping the market’s future, even as financial headwinds persist.
Novaland, officially known as No Va Real Estate Investment Group Joint Stock Company (NVL), has recently announced an ambitious plan to issue nearly 97.5 million shares as part of a dual initiative: rewarding employees and offering them preferential stock purchases. According to CafeF, the company will distribute almost 48.8 million bonus shares, representing about 2.5% of its outstanding shares, sourced from retained earnings as audited in 2024. Simultaneously, another 48.8 million shares will be offered to employees at a steeply discounted price of 10,000 VND per share—almost 60% below the recent market price of 17,300 VND. In total, this issuance accounts for 5% of Novaland’s outstanding shares and will take place between September 5 and September 30, 2025.
The structure of these incentives is designed with both immediate and long-term benefits in mind. For regular employees, bonus shares come with a one-year transfer restriction, while key personnel face a staggered lock-up: 100% for the first year, 70% for the second, and 40% for the third, before free trading is permitted from the fourth year. The estimated windfall for employees is substantial—around 844 billion VND from bonus shares and more than 385 billion VND from the preferential purchase program. However, as CafeF notes, the actual profit realized will depend on NVL’s stock price movements during the lock-up period.
This move comes at a time of both opportunity and challenge for Novaland. The company’s consolidated revenue for the first half of 2025 reached 3,715 billion VND, marking a 62.5% increase compared to the same period in 2024. The sales segment, buoyed by key project handovers such as NovaWorld Phan Thiết, NovaWorld Hồ Tràm, Aqua City, Sunrise Riverside, and Palm City, contributed nearly 3,423 billion VND—an impressive 81% jump. The service sector added another 291 billion VND. Despite these gains, Novaland still posted a post-tax loss of 666 billion VND, primarily due to exchange rate fluctuations and other financial items. Yet, this loss is a stark improvement over the 7,327 billion VND deficit recorded in the same period last year.
Financial pressures remain acute. As of the end of the second quarter of 2025, Novaland’s total financial debt stood at 61,831 billion VND, with bonds accounting for nearly half—about 30,290 billion VND. Recent months have seen the company mobilize 315 billion VND in bonds (as reported by CafeF on September 6, 2025), and auditors have flagged concerns about continuous operation, prompting Novaland to sell seven assets and raise over 13,500 billion VND. The broader market context is also challenging, with more than 94,309 billion VND in bonds maturing in the remainder of 2025 and significant debt loads being shouldered by other major players like Becamex IDC and Vạn Thịnh Phát.
While Novaland’s strategy focuses on internal incentives and asset management, the Vietnamese resort real estate sector as a whole is in the midst of a broader restructuring. According to Dân trí, experts emphasize that sustainable development and long-term value creation require a shift from relying solely on asset appreciation to prioritizing operational excellence. Hoàng Quế Linh, Director of the Real Estate Business Division at Flamingo Holdings, outlined the new operational trends that could become the key to long-term growth.
“There are three main drivers,” Linh explained. “First, the tourism sector is experiencing a remarkable rebound. In just the first seven months of the year, Vietnam welcomed nearly 93 million domestic visitors and 12.2 million international visitors, a dramatic increase compared to the same period last year.” The government’s decision to extend visa-free entry to 24 countries and increase the allowable stay from 15 to 45 days has also played a crucial role. Hotel occupancy rates in key tourism markets now range from 70% to 90%, sometimes even reaching full capacity during holidays and events, with room revenues climbing 20-30% year-over-year.
Infrastructure improvements are another pillar of the sector’s resurgence. For instance, travel time from Hanoi to Thanh Hóa has been cut from over three hours to about two, making tourist destinations more accessible. But perhaps most transformative is the evolving mindset of tourists themselves. “Visitors are no longer just looking for a place to stay—they’re seeking real experiences: festivals, cuisine, therapy, and especially the night and party economy,” Linh noted.
For investors, the focus is shifting from waiting for asset prices to rise to maximizing operational income. Linh identified three core factors for stable cash flow in resort real estate: maximizing asset utilization (minimizing idle time), boosting average customer spending through an attractive ecosystem, and maintaining high operational quality—from service and staff to management technology. Projects that develop robust entertainment and service ecosystems, both day and night, stand to benefit the most.
Innovative business models are emerging as game changers. “If you only rely on selling products, resort real estate falls into a short-term cycle. But if you can operate a ‘two seasons of the sea, two seasons of festivals’ model—combining leisure, entertainment, and wellness—every square meter can generate multiple streams of revenue,” Linh said. He pointed to projects like Flamingo Ibiza Hải Tiến, which has introduced Vietnam’s first 24/7 sea entertainment tourism model in the Hải Tiến area. The Ibiza Neon Zone and Ibiza Vacation Villas, along with Mini Hotels, are designed for flexible use: they can serve as private retreats or be rented out for business, events, food and beverage, or spa services. This approach aims to generate year-round cash flow and reduce dependence on peak tourist seasons.
The results are already apparent. In the first six months of 2025, visitor numbers to Hải Tiến surged compared to the same period last year, driven by these new-generation entertainment offerings. As Linh put it, “We believe that sustainable resort real estate must create year-round cash flow. Villas are not just for accommodation—they can be leveraged for F&B, spa, and events. This increases revenue streams and helps investors avoid being tied to seasonal peaks.”
As Vietnam’s real estate sector continues to evolve, the interplay between innovative incentive structures, operational excellence, and financial discipline will determine which companies thrive. With Novaland’s ambitious share issuance and Flamingo Holdings’ pioneering operational models, the stage is set for a new era in Vietnamese resort real estate—one where sustainability, creativity, and adaptability are the keys to enduring success.
