Vietnam remains a country thoroughly unexplored when it comes to the true extent of its market opportunities. People often seem to underestimate it simply because they think it does not have much to offer.
That is exactly where they are wrong. The way that it has progressed on an economic level has truly been a sight not only to see but also to delve into by getting a piece of the action going on there. This is further highlighted by the statistics presented in their official report. It clearly states that in 2019, they were able to have a foreign direct investment of about USD 161 billion that does not seem too shabby. Inflows have steadily been focused on tourism as well as real estate and industry, showing a blatant shift.
Despite such a huge population currently standing at around 97 million and a history of a bloody war that gave the country a tough time, it has managed to rise up out of the ashes. The rebuilding process may not have been easy but they have been on it steadfastly. One of the reasons why they have been able to do so is allowing foreigners to play their part in contributing to its GDP. Foreign companies may take their shot at the market in Vietnam, as it remains open to them. Investors also see a chance for considerable growth that definitely should not be ignored.
In a study from The Financial Times, Vietnam is set to overtake 17 countries by 2023 including Belgium and Switzerland.
European Foreign investors starting to invest in Vietnam
During the last 5 years, Asians mainly from Korea, Taiwan, Singapore, Hong Kong have already massively bought properties in Vietnam. Then, investors from the United States started to pay attention to it and for some time now, it is Europeans to take an interest in this new potential market.
The reasons may be different: diversify their capital, exposure to a growing market while Europe is stagnating, anticipation of a global recession where frontier markets such as Vietnam will have less impact. Check out this updated guide how foreigners can invest in the Vietnamese real estate market.
What Are The Best Cities To Invest In Vietnam ?
Though quite a few of the cities in Vietnam have been on the rise when it comes to elevating their economic level, Ho Chi Minh City has left them in the dust. Popular as the financial center, this city has yet to disappoint after presenting countless opportunities to those that try to shoot their shot here. Hanoi, also known as the capital city of this esteemed country, has also managed to be included in the list.
Hanoi has several business opportunities that one truly cannot resist once they start looking into them deeply. It could certainly end up with a profitable return for them if they do so. Another city to find its way on the list is Da Nang. This city though may not be one you immediately think about when you ponder on the market in Vietnam, it does come with its own benefits. The biggest one is the fact that it houses the Central Region that has lately been luring in investors more and more by the day. That makes it worth taking an in-depth look at.
In Ho Chi Minh City, What Are The Best Districts ?
Ho Chi Minh City is certainly famous for having prosperous business opportunities and certain districts also play their part well enough to contribute to it. One of them happens to be District 1 that is a rather posh place with soaring prices. Those prices are completely justifiable as it has seen its fair share of economic progress and new developmental projects are also on the way.
District 2 is another location that attracts people. The charming villas there are not the only things to win people over. They also have a variety of significant buildings. District 7 is more focused on maintaining a pleasant yet natural environment while providing tons of entertainment. That is why it makes it a place to visit for sure as it comes with its fair share of sizeable malls and fun activities to take part in.
Average Per Square Meters in TP Ho Chi Minh
If it is a high investment you are looking to make in order to acquire a worthy property, District 1 is definitely the one to go for. Expect to get it at prices somewhere around $6000 to $9000 per square meter though. If you want to spend less but still find a property in an area that has successfully managed to increase its opportunities, District 2 will surely not disappoint. The price there varies from $4000 to $5000 per square meter.
People who are not interested in spending a large portion of their money simply to get property and are more careful with their money can simply set their sights on District 7. As it stands at $2000 to $3000 per square meter, it will save quite a lot of their money while still allowing them to reside in a lovely place.
What Is The Minimal Suggested Capital To Invest
When it comes to investing money, it all comes down to your budget and the kind of projects you are looking into. If it is a high budget and you want to explore a project that it is noticeable, it just may cost you about $150,000 to $200,000.
This does not go for everyone, as those with a smaller budget to boast should definitely turn to local developers instead. They can ensure a reasonable price.
What About Taxes And The Process For Foreigners ?
No matter where you consider investing your money or think about making it your place of residence, it is a must to have complete knowledge about how their tax system functions. This also goes for foreigners who derive some amount of their income from such countries.
When it comes to Vietnam, basic facts to know pertaining to this include that their tax on purchase is 0.5% and in contrast, the personal tax on sale amounts to 2%. However, they are not required to spend any additional money on the capital gains they have a chance of acquiring.
Why Keep An Eye On This Market ?
Vietnam is a country that though may have been knocked down time and time again, continues to outdo itself. That is also why foreign investors have their eyes set on the market that they deem to be more than worthy and why its growth does not seem to be stopping anytime soon.
It is worth a shot for you to see whether it could work out for you too as the reward just might be endless profits.