HCM CITY — Vinhomes, Việt Nam's largest listed property developer, will stop acquiring land in the domestic market after years of aggressive expansion, saying its existing land bank is large enough to support development for at least the next five to seven years.

The decision, announced by its chairman Phạm Thiếu Hoa at a recent meeting, follows a directive from Vingroup Chairman Phạm Nhật Vượng and signals a strategic shift from building land reserves to executing projects already in the pipeline.

"We do not seek to dominate the market," Hoa said. "Our existing land bank is sufficient, and our priority now is to maximise the value of the projects we already have."

The move marks a departure for Vinhomes, which spent years assembling one of the country's largest land banks as Việt Nam's property market expanded.

Rather than pursuing additional sites, the company will concentrate its financial and management resources on construction, sales and operations at existing developments, he said.

The company also plans to diversify beyond its traditional focus on high-end housing by expanding into social housing, rental housing and mid-market residential projects, while continuing to explore overseas investment opportunities, he added.

Analysts said the decision reflected a change in capital allocation rather than a weakening outlook for the business.

Huỳnh Anh Huy, head of sector research at Kafi Securities, said: "Vinhomes already has the largest land bank among Vietnamese property developers, enough to sustain development for the next five to seven years."

"The company's focus is now on maximising the value of the land it already owns rather than continuing to accumulate new sites," he added.

Huy said the strategy also reflected changing financing conditions. As Vingroup and companies within its ecosystem invest in large-scale infrastructure projects, maintaining an aggressive pace of land acquisitions would require substantial capital at a time when funding for property developers has become more selective.

He added that the strategy was consistent with a broader trend across Việt Nam's real estate sector, where major developers are increasingly prioritising project execution over expanding land holdings.

Hồ Hữu Tuấn Hiếu, head of investment strategy at SSI Research, said investors should not view the move as a sign that Vinhomes was slowing its expansion.

"Over the past two years, Vinhomes has continued to secure several very large projects across the country," he said.

"Its existing land reserves provide ample room for development over the next decade, so this should be seen as a shift in strategic priorities rather than a contraction," he added.

While the announcement could weigh on sentiment toward property stocks in the near term, Hiếu said it was unlikely to alter Vinhomes' long-term growth prospects given the scale of its development pipeline.

The strategy comes as Việt Nam's property market gradually recovers from a prolonged downturn, with developers focusing on completing projects after years of legal bottlenecks and tighter financing conditions.

Recent regulatory reforms aimed at streamlining project approvals are expected to support new investment, while improving cash flow has become a priority across the sector.

In an April letter to shareholders, Vinhomes said it owned a land bank of about 29,500 hectares at the end of 2025, while nearly 20 additional projects covering more than 20,000 hectares were undergoing investment approval procedures or being prepared for approval.

Founded in 2008, Vinhomes has developed around 30 urban townships and large-scale residential projects across Việt Nam.

It has set a target of VNĐ285 trillion (US$10.8 billion) in revenue and VNĐ60 trillion ($2.3 billion) in after-tax profit this year under its shareholder-approved business plan. — VNS