Vietnam - An attractive destination of investment
Beside signature cities in Asian markets such as Hong Kong, Korea, Singapore, Japan; Vietnam remains an attractive destination for US investors in the Indo-Pacific. Heard a webinar recently held by The Asia Group indicated Vietnam is a developing country's real estate investment well performance in 21st century.
Country of stable GDP growth The averaged statistic 6.5% every year since 2000. Vietnam's economy still showed growth in 2020, at about 3% despite the pandemic.
Government encourages foreign investment by making processes easier in Vietnam investors can expect further improvements in doing business.
Law: Since 2015, Vietnamese Housing law has been updated to welcome more foreign investors, which makes it easier to buy and own properties.
Tax: Foreign direct investment (FDI) s is allowed by most industries includes property investment. The government also made changes and also put incentives in place to encourage foreign investment. The process to pay taxes via IT much faster than before.
Becoming easier and easier to do business: Vietnam score of 69.8, was ranked 70th out of 190 economies by The World Bank in its Doing Business 2020 report. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across economies.
Infrastructure development speeds up real estate background
Infrastructure has been a central factor of Vietnam’s fast-paced economic development. The demand for transportation is expected to grow by about 10 percent per year until 2030. Road and rail network investment will be key to drive infrastructure investment across other sectors in Vietnam, especially real estate, increasing urbanization and improving connectivity.
Population emerging middle class create living houses/ apartments and leasing's demand
According to the 2019 Population Census Report, 55.5 percent of the population is under 35 years of age, with a life expectancy of 76 years, the highest among countries in the region at similar income levels. Significantly, the middle class accounting for 13 percent of the population, is expected to reach 26 percent by 2026.
SUM UP
Since Vietnam offers a lot of potential for foreign investors, especially for those who are looking to venture into Southeast Asia. On the way of development, Vietnam property market is rushing plenty of opportunities to earn money. These chances would be appealed to foreign investors in a general sense.