Considering whether to buy property in Vietnam? Look no further! Vietnam is an appealing destination for property market investment, offering attractive opportunities for foreign investors. With a thriving economy, a stable political environment, and investor-friendly policies, Vietnam property market has witnessed significant growth. In this article, we will provide you with a comprehensive guide on the benefits of investing in property in Vietnam and why it’s a wise choice for international buyers.
Why Vietnam is an Ideal Place to Invest?
- Economic Growth: Vietnam is rated as one of the economic regions with impressive growth in the last decade, according to the World Bank’s 2023 report. According to the World Bank, Vietnam’s average GDP growth is 5% and has reached the 8% mark in 2022. GDP growth is about more than just numbers, with this remarkable progress, Vietnam is becoming an attractive destination for international investors and businesses.
According to the report by the IMF, Vietnam’s economy is projected to achieve an impressive average growth rate of 29.85% over the next five years.
- Vietnam’s “Golden Population” Structure: Since 2007, when the dependency ratio (the ratio of the population aged 0-14 and over 65 to the population aged 15-64) fell below 50%, Vietnam officially entered the era of the “golden population” structure.
This demographic advantage presents Vietnam with an unparalleled growth opportunity. As the “golden population” era is projected to last until around 2038, the country can capitalize on this extended period to foster sustained economic development and social progress.
- The rapid urbanization process in Vietnam: In the recent years, there has been a significant increase in the number of people migrating to urban areas, averaging 27.7% growth. The majority of urban migration is concentrated in the southern region, with Ho Chi Minh City being the city that contribute the most to this growth. With rapid urbanization, the demand for housing and real estate has increased significantly.
Value for Money: Vietnam’s Real Estate Competitive.
Is real estate in Vietnam a good investment? Yes, it is!
Based on the statistical report by Dragon Capital in 2022, real estate is currently considered the best long-term profitable investment compared to other financial products. Over the past 15 years, it has shown an average growth rate of 12.5%, higher than stocks (1.7%) and bonds (3.4%). The net profit after deducting inflation in Vietnam’s real estate sector is over 9%, which is an attractive return compared to other countries in the region and the world.
- Competitive Property Prices: Compared to other Southeast Asian countries, Vietnam offers relatively affordable property prices, making it an enticing prospect for those seeking value for their investment. Whether you’re looking for residential, commercial, or industrial property, you’ll find various options at attractive prices.
- Strong Rental Market: Vietnam’s rental market is thriving, particularly in major cities like Ho Chi Minh City and Hanoi. The demand for rental properties has increased significantly, driven by an expanding expatriate community and a growing middle class. This presents an opportunity for investors to generate rental income.
- Tourism and Infrastructure Development: Vietnam has experienced a boom in tourism in recent years, attracting millions of visitors annually. The government has been investing heavily in infrastructure development, including airports, highways, and public transportation systems, further enhancing the appeal of the real estate market.
