Menas Zone Vỹ Dạ, which has introduced Việt Nam’s first 'Festival Mall' model, has turned festivals into a continuous cultural and business income stream. Photos courtesy of the firm

HUẾ — From being selected by the National Assembly as a pilot city for special mechanisms and policies under Resolution 38, to officially becoming a centrally run city in 2025, Huế is entering a new growth cycle that is drawing strong investment inflows.

National Assembly Resolution 38/2021/QH15 on piloting several special mechanisms and policies for financial management, the State budget and the heritage conservation fund is considered a breakthrough for Huế’s urban development. With more flexible financial tools and a dedicated conservation fund, the resolution has enabled the city to better mobilise resources for urban infrastructure, heritage preservation and sustainable socio-economic growth.

Between 2021 and 2024, Huế attracted nearly VNĐ119 trillion in total social investment capital, with annual growth ranging from 9.6 to 16.9 per cent. In just the first half of 2025, Huế recorded a GRDP growth rate of 9.39 per cent, its highest ever, with total social investment capital reaching VNĐ20 trillion, up 39 per cent year-on-year. The city attracted more than VNĐ27 trillion in investment with 19 new projects, while 461 newly established enterprises contributed to a strong increase in both quantity and registered capital.

The services sector alone generated nearly VNĐ6.4 trillion, accounting for 51 per cent of the economic structure. Huế also successfully boosted tourism demand by hosting the 'National Tourism Year – Huế Festival 2025', with nearly 160 national and provincial events staged from the beginning of the year.

Huế’s long-term development strategy positions it as Việt Nam’s signature heritage city by 2030, and a leading Southeast Asian centre for culture, tourism and specialised healthcare. A key highlight of the master plan is a multi-centre development approach, expanding urban space to the south of the Hương River and linking it with night-time economic activities and year-round cultural festivals.

Investment capital

Preserving urban morphology while developing satellite cities are among the five key solutions that Huế’s People’s Committee is implementing to both safeguard UNESCO heritage values and ensure comprehensive socio-economic development as a centrally run city.

In his article 'Managing and Developing Huế on the Basis of Preserving and Promoting Heritage Values' in the Journal of Construction, Deputy Chairman of Thừa Thiên-Huế Province People’s Committee Hoàng Hải Minh explained that Huế’s urban spatial structure is defined by “one integrated heritage system, two ecological landscapes, three economic corridors, three urban growth poles, and four development management zones.”

Satellite development will focus on transport corridors, ring roads, bridges and riverside areas, creating clusters of commercial, cultural and entertainment hubs. Key infrastructure projects now under way include Terminal T2 at Phú Bài International Airport, the expansion of Phạm Văn Đồng Street, the Thuận An sea-crossing bridge and the Nguyễn Hoàng Bridge.

With investment capital directed towards transport, commerce and cultural infrastructure, Huế is laying the foundation for service complexes and riverside commercial real estate. A well-developed infrastructure backbone is expected to increase revenue from tourism, hospitality and trade, while also enhancing real estate values. Already, the local property market has seen the emergence of cultural-commercial centres integrated with F&B, retail and boutique hotel ecosystems.

The Festival Mall model has emerged as a new cultural and entertainment hub for the Huế community.

This shift is exemplified by Menas Zone Vỹ Dạ, which has introduced Việt Nam’s first 'Festival Mall' model. The high-end project has turned festivals into a continuous cultural and business income stream. Praised by international experts for its design language blending world heritage with modern lifestyles, it offers a vivid portrait of Huế as a living heritage city.

The model harmonises Huế’s traditional cultural essence with international commercial functions, aligning with the city’s spatial planning goals of heritage, ecological landscapes and urban development. With projects like Menas Zone Vỹ Dạ, Huế is gradually shaping vibrant new Western-style streets that help elevate its global tourism profile as a dynamic yet deeply cultural heritage city.

Premium real estate 

Supportive macroeconomic policies, higher-than-average public investment disbursement and infrastructure development under public-private partnerships are expected to provide a solid foundation for sustainable growth in Huế’s property sector.

Unlike industrial and port-driven growth centres elsewhere in the region, Huế’s unique strength lies in its heritage, culture and services advantage. This differentiator is shaping demand for dual-purpose assets that combine ownership and investment value with commercial and hospitality potential, catering to tourism and event-driven needs.

New price benchmarks

High-end projects are expected to set new price benchmarks in Huế’s real estate market.

However, while demand is rising, supply remains limited. According to Huế’s Department of Construction, in Q2 2025 the market only recorded four ongoing projects and six eligible for future housing sales, with no new commercial housing projects licensed.

As central and riverside land becomes increasingly scarce, this supply gap is projected to set new benchmarks, especially for premium projects capitalising on the heritage, culture and services advantage, such as Menas Zone Vỹ Dạ.

Following a cautious period, investors are now showing preference for assets that generate existing revenue and feature flexible operational models. Rather than relying on speculative price hikes, the focus has shifted toward floor space efficiency and low operational risks.

For long-term investors, Huế’s current market offers favourable conditions. Heritage Shophouses and riverside villas at Menas Zone Vỹ Dạ are being seen as sustainable investment channels, especially as Huế steadily strengthens its position as Việt Nam’s newest centrally run city. — VNS