Vietnam - a fast growing market to invest?

[mikele]

Hi,

Anyone interested in Vietnam property? I am staying in Singapore and moving to Vietnam to find investment opportunities there. Vietnam's property has gone up tremendously year by year and there are a lot more to explore. Can you share some thoughts and advices on this interesting market?

Cheers
Mike

 

[AlexonVietnam]

Legally most foreigners are not allowed to buy property in Vietnam yet although
it is a great opportunity. If it was open the real estate market there would
probably see a huge boom. Investing there would be great since the property tax is
hardly any and maintenance is cheap and the CD interest rate is around 10% so
you can imagine the growth. Invest in land if you can at below market and you can
not go wrong. Just have to find right asset management co out there. It is like
China 20years ago. You can find land cost is up 100's of times in lot of cases. The
country is privatizing from state owned and it is the opportunity!

 

[Vinamal]

You can invest in Vietnam

I've lived in VN for over 10 years and work for a property developer and real estate management company.

The law only allows resident foreigners to invest in certain types of property for their own use for 50 years. Eligible foreigners may not legally lease out their property (i.e. use as an investment) and if leaving or losing the right to stay in Vietnam, foreigners have 12 months to either sell their property or give it back to the state.

That said, there are limited opportunities for foreigners living outside of VN to legally invest via a holding company (say in HK). This has been successfully done for a couple of beach front projects and the prices are quite OK. Tax breaks are available usually for the first few years in the onshore company and dividends are currently taxed at only 5%. In HK, tax is user friendly.

I have a Dutch friend who has a small resort project of only 100 units on 3 hectares (long frontage - most have ocean views) of prime beachfront land which he's selling from $120,000 (all in for a 1 bed, furnished apartment). It is approx 80% sold-out and is due for completion by early 2012. Some foreigners have invested and I believe it's a pretty safe bet if you are comfortable to put money outside of your home country. They anticipate 20%+ IRR but this might be a little ambitious with the number of resorts coming on line. 20 free nights per year come with the deal.

I hope this helps

Cheers,

Mal

 

[pencilpusher]

Is this still the case now this time in vietnam... been seeing lots on it on the tube
Maybe it just got somewhat more interesting... nice place great beaches :creep:

 

[condosukhumvit]

Legally most foreigners are not allowed to buy property in Vietnam yet although
it is a great opportunity. If it was open the real estate market there would
probably see a huge boom. Investing there would be great since the property tax is
hardly any and maintenance is cheap and the CD interest rate is around 10% so
you can imagine the growth. Invest in land if you can at below market and you can
not go wrong. Just have to find right asset management co out there. It is like
China 20years ago. You can find land cost is up 100's of times in lot of cases. The
country is privatizing from state owned and it is the opportunity!

wow never knew that it is so interesting !!!

 

[Ewan Park]

wow never knew that it is so interesting !!!

Opportunities are similar across asia - BUT - If you are considering purchasing, whether it be through a 'local' or a Company registered to that country - Stay in the country for some considerable time. Prices ALWAYS go down the longer you are there .
Make sure that the 'holiday' syndrome does not affect your judgement.
Introductions will always cost you - Get to know who owns the property you want without making it too obvious - THEN approach the owner direct.

Any price you get will be an opening price and can always be negotiated down.

Good luck and have fun !

 

[smart realestate investor]

In addition to Vietnam, emerging markets such as Malaysia, Indonesia and the Philippines are also great places to invest in.