The Real Estate Market in Vietnam’s Largest Province Post-Merger: What’s So Special About It?

The Newly Merged Lam Dong Province is Now the Largest in Vietnam

The National Assembly has recently approved a resolution to rearrange administrative units at the provincial level, resulting in a total of 34 provinces and cities nationwide. This resolution came into effect on June 12th. As a result, the three provinces of Lam Dong, Dak Nong, and Binh Thuan have been consolidated into the new Lam Dong Province, spanning a vast natural area of 24,233.1 km². This makes it the largest province in Vietnam, surpassing the previous record holder, Nghe An.

The population of this new province is approximately 3.32 million people, with Da Lat serving as its political and administrative center. The economic scale of the new province ranks among the top 10 localities with the highest GRDP in the country.

This merger presents a unique geographical advantage. The new province boasts a border with Cambodia (from Dak Nong), a coastline along the East Sea with beautiful beaches (from Binh Thuan), and the majestic Lam Vien Plateau (from Lam Dong). These diverse features position Lam Dong Province as a strategic hub for economic development, tourism, and industry, connecting the Central Highlands with the South Central Coast.

Notably, the economic development of the merged province will be anchored by a tripod model, comprising tourism, high-tech agriculture, and industry, leveraging the strengths of all three former provinces. In terms of tourism, Lam Dong Province offers a rich variety of experiences, ranging from luxury resorts in Da Lat (Lam Dong) and coastal getaways in Phan Thiet and Mui Ne (Binh Thuan) to ecological adventures and explorations at Ta Dung Lake and the Dak Nong Global Geopark, a UNESCO-recognized site.

In 2024, Lam Dong ranked 9th among the top 10 provinces with the highest tourism revenue in Vietnam, while Binh Thuan witnessed significant growth due to the newly constructed expressway connecting Ho Chi Minh City with the South Central Coast. Large-scale projects such as the National Tourism Area of Dankia – Suoi Vang (Lam Dong, spanning 40 km² with investments exceeding VND 30,300 billion) and coastal resorts in Binh Thuan, like Mui Ne, are driving the growth of the vacation property market.

When it comes to high-tech agriculture, Lam Dong and Dak Nong are key regions for industrial crops such as coffee, durian, and pepper, with a combined agricultural land area of over 1 million hectares (Lam Dong: 320,000 hectares, Dak Nong: 378,000 hectares, and Binh Thuan: 356,000 hectares). The merger is expected to boost the development of high-tech agriculture integrated with ecological tourism (as seen in farms in Lam Ha and Di Linh), adding value to rural real estate.

In terms of industry and renewable energy, Binh Thuan takes the lead with wind and solar power projects like the Tuy Phong wind farm, while Lam Dong and Dak Nong possess the country’s largest bauxite reserves and host two alumina refineries in Tan Rai (Lam Dong) and Nhan Co (Dak Nong). The merger presents an opportunity to establish a value chain, from bauxite mining to processing and exports through Ke Ga Port (Binh Thuan), fostering the growth of industrial and logistics real estate.

Experts agree that the merger of these three provinces creates a geographically and economically diverse province, benefiting the real estate sector across segments, including vacation properties, industrial parks, and eco-agricultural developments. “The merger will give rise to super-cities and vast urban development potential,” said Dr. Nguyen Van Khoi, Chairman of the Vietnam Real Estate Association (VNREA). “Real estate will benefit from concentrated resources and synchronized planning.”

Real Estate Market Booms in the Heart of Da Lat

The real estate market in the new Lam Dong Province, formed by the merger of Lam Dong, Dak Nong, and Binh Thuan, is expected to thrive due to its vast area, a tripod economic model (tourism, high-tech agriculture, and industry), and synchronized infrastructure development.

Specifically, the province benefits from well-planned transportation infrastructure, including key projects like the Dau Giay – Lien Khuong Expressway (connecting Ho Chi Minh City to Da Lat via Di Linh), the Dak Nong – Lam Dong – Binh Thuan Expressway, and the upgrading of National Highways 20 and 28, all of which enhance inter-regional connectivity.

Binh Thuan boasts the deep-water port of Vinh Tan and the Phan Thiet Airport (planned to be upgraded to a 4E standard), facilitating international trade and the development of logistics real estate.

In Da Lat, projects such as the upgrading of Phu Dong Thien Vuong Street (with an investment of VND 278.5 billion), Hoang Van Thu Street (VND 140 billion), and Bui Thi Xuan Street (VND 110 billion) have contributed to the appreciation of inner-city real estate values.

In terms of urban planning, the new Lam Dong Province is oriented towards developing satellite cities, with Da Lat as the central hub for high-end tourism and administration, complemented by industrial zones in Dak Nong and coastal tourism in Binh Thuan.

Di Linh, strategically located at the intersection of Lam Dong, Dak Nong, and Binh Thuan, is envisioned to become a new economic center, driving the growth of residential and commercial real estate. Additionally, eco-tourism resorts at Ta Dung Lake (Dak Nong) and urban land in Gia Nghia are attracting investors.

Commenting on the real estate market in Lam Dong, Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, noted that the news of the provincial merger, along with the announcement of new land price frameworks by several localities, which are significantly higher than the current ones, has triggered a fear of missing out among real estate investors. This has led to a notable increase in land prices, with some areas experiencing growth rates ranging from 5% to 30%.

“After the merger, areas like Da Lat, Di Linh, Phan Thiet, and Gia Nghia will become investment hotspots,” affirmed Mr. Dinh. “The core of Da Lat will continue to be a focal point due to its limited land supply.”

Indeed, post-merger, Da Lat’s role as the administrative, economic, and tourism center of the new Lam Dong Province has been solidified. It will be the most developed area among the three former provinces, leading the way and driving the growth of neighboring areas such as Dak Nong and Binh Thuan through interconnected infrastructure projects. Da Lat has already established itself as an international destination, especially for visitors from South Korea, Japan, and Europe.

The merger integrates coastal tourism offerings (from Binh Thuan) and specialty agricultural products (from Dak Nong), creating a diverse tourism value chain, thereby increasing the demand for tourism-related real estate. The combination of a global tourism brand, improved infrastructure, and the potential for development in peripheral areas positions Da Lat to attract significant investment capital.