Area Guide – Vietnam

Vietnam

Vietnam’s booming economy has guaranteed a lucrative growth in the country, which in turn, tremendously boosted the property market in its cities, including its capital Hanoi, Ho Chi Minh City (HCMC) and Hai Phong. The cities have implemented a number of strategic infrastructure and developmental projects to power its economic trajectory, coupled with the new residential housing law implemented which allows foreigners to buy properties in the country for a 50-year leasehold, stimulating an active growth in Vietnam’s property market.

Da Nang

The peaceful Coastal Life – Da Nang is one of the largest cities in Vietnam, it is a thriving tourist destination showcasing both its traditional beauty and modern culture. Boasting a vibrant city center, stunning coastal beaches with 96km of coastline, and impressive cultural heritage, Da Nang offers an extensive array of sightseeing opportunities and exciting activities for all types of travelers. Exuding a calm atmosphere, it is one of the top ten rising tourist destination and so attracts many foreigners to live here.

Hanoi

The Cultural Boom – Hanoi is Vietnam’s Capital, it has implemented numerous strategic infrastructure and developmental projects to further increase its comparative advantages including a major metro system to be completed soon, the expansion of Noi Bai International Airport, and transforming Nam Từ Liêm into the new CBD. These factors are predicted to stimulate an active growth in Hanoi’s property market. With the farseeing scarce supply of housing, a rising middle class population and income, the demand for housing will continue to increase, which may promise a high investment yield.

Ho Chi Minh City

The Financial Hub – Formerly known as Saigon, Ho Chi Minh is a thriving metropolis and Vietnam’s center of commerce. As the most populous city, it accounts for over 20% of GDP of Vietnam, playing a vital role in economy, culture and education. Its comprehensive plan for socio-economic development includes the new airport terminal by Year 2025 and the completed Metro Lines (MRT) in November 2021 has successfully nurtured the promising city to bloom to greater heights.

Hai Phong

Favorable geographic conditions – As Vietnam’s 3rd largest city, Hai Phong is the growing middle-class and rising international interest, resulted in a fledging real estate market with an extremely tight supply. Hai Phong has a strategic location to serve as a deep-sea out port for Northern Vietnam and southwestern China. The China-Vietnam “Two Corridor, One Belt” initiative places Hai Phong as the spearhead of economic modernization in Northern Vietnam to foster connectivity across Eurasia.

PROPERTIES IN VIETNAM

Top Investment cities in Vietnam – Hanoi & Ho Chi Minh city properties

 

From Jul, 2015, Vietnam Government has release a more friendly policy for foreign investors to invest on Vietnam properties. Any people who owns a valid visa will be able to purchase Vietnam properties on a renewable lease. Investors all around the world are targeting to purchase properties in Vietnam on its most valuable cities given the return rate could be very attractive.

Real estate market have been saturated in many of the developed cities. Hong Kong is one of the best example as a developed city, meeting a saturated situation in real estate. There is no wonder why lots of Hong Kong people try to invest in surrounding South-Asia cities. But there are still some points worth your attention before you try to purchase a Vietnam property:

 

 

Q: Can Hong Kong people purchase Vietnam porticoes

A: It’s a definitely yes! As mentioned above, any people who possess a valid Vietnam Visa will be able to purchase Vietnam properties. But there are some point you need to know, according to Vietnam Property Law, foreign investors will not own any Vietnam properties for lifetime, instead foreign investor can only own a renewable right of usage of the property. But if you have a Vietnamese spouse, you would be able to fully own the property for lifetime.

 

Q: Requirements of loan service for a Vietnam property

A: Vietnam does not provide any loan service regarding property for foreigners, except for:

  1. Foreign investors have a Vietnamese spouse
  2. Foreign investors have an Overseas Chinese Identity in Vietnam or Identities that equals this level.
  3. Foreign investors owns a resident card in Vietnam.

 

Q: Top Investment cities for Vietnam properties

A: The two most popular city attracting thousands of investors to purchase Vietnam properties are Hanoi and Ho Chi Minh City.

  1. Ho Chi Minh City

Many people choose to purchase Ho Chi Minh City as it is the core district of economy of Vietnam. Besides that, Ho Chi Minh is also one of the most vital cities around globe. Adequate infrastructure facilities have been set up in Ho Chi Minh City and well-developed traffic system makes it greatly convenient for residence’s daily life. In the recent years, numerous international companies try to set up their manufacturing centers in Vietnam, resulting in a surging demand of housing need in Ho Chi Minh City. Vietnam Government is also planning to expand the airport to increase the capacity, which again means that the housing demand will still keep going up in Ho Chi Minh City in recent years.

There are 19 regions in Ho Chi Minh City, the most popular for living should be region 2 as the infrastructures there have already been fully developed, including mega shopping malls, international schools and well-developed traffic system. The other regions that may bring investors satisfying return should be region 4, a newly developed region. According to the previous data, purchasing properties in Ho Chi Minh City can reach a return of 4-5% yearly.

 

  1. Hanoi

Hanoi is not only the capital of Vietnam, it is also the political and cultural centre of Vietnam. During the most recent year, Vietnam Government almost place every bit of effort to develop Hanoi’s infrastructure facilities. As a matter of fact, airport in Hanoi is also planning to be expanded, the metro system is going to help to solve the traffic difficulties for the rising demand of visitors and local resident’s daily life. As mentioned above, many international brands are building up their manufacturing centre in Hanoi, the demand of housing still go up, the property marketing is facing a prosperity period.

Similar with Ho Chi Minh City, Hanoi also have some newly developed regions. They also have a huge potential return rate in the near future. When compared with Ho Chi Minh City, Hanoi is currently having a higher return rate given Hanoi is a less developed city. Once all the infrastructure facilitates are done, your investment will be more valuable.