Update: 09:27:51 04-09-2018Date Submitted : 11:32:10 13-07-2018
Major projects in Vietnam's pipeline have positioned the country as a global leader in real estate and foreign direct investment, with profitable investments and developments mushrooming in several destinations across the nation.
These promising conditions began in 2015 with the revision of Vietnam's foreign ownership laws, which allowed foreign investors access to the purchase of Vietnam's real estate.
In addition to Ho Chi Minh City, Hanoi and Danang also offer attractive investment opportunities and developments. Both cities are also in the process of developing an MRT system to assist with the growing CBD hub areas while also creating a welcoming environment for international developers to establish business in Vietnam.
Vietnam growth factors:
To cope with market demand Ho Chi Minh City must add approximately 400,000 housing units year on year, as real estate forecasts suggest around 50% of the Vietnamese population (current population 96.5 million approximately) will be living in major urban hubs. The pressure on supply and demand will keep the city busy with new projects and developments in all of Vietnam's 23 districts.
Since Vietnam's foreign ownership laws were revised in 2015, international buyers cannot buy landed properties aside from previously approved apartments, with the option to rent them. Nowadays, a very insignificant number of foreigners own units, in comparison to the dominant Vietnamese market (including domestic and Vietnamese living overseas called Viet Kieus.) Of note, there is also the arrival of players from nearby countries, such as Taiwan, Singapore, China and South Korea are raising interest on those market improvements.
Somewhat less developed is Vietnam's environment and sustainability policies, which is something worth worrying about in the 21st century. There are currently several UNESCO projects offering integrated developments (Ha Long Bay in the north, Vam Sat ecological tourist zone in the south). Other issues include the garbage disposal and the lack of a recycling culture, which has been an issue of key concern in Vietnam for a number of years.
To ensure its achievement as a growing investment hub, Ho Chi Minh City must continue this path sustainably. Authorities at a national and local level must ensure nationwide plans are implemented effectively and transparently, to maximise growth and eliminate corrupt operating.
It is a great time to be in Ho Chi Minh City, to be in Vietnam during all these mostly positive changes, but the city must change its ways if it wants to become ASEAN's new leader.
(By Miquel Àngel - Oakwood Worldwide)
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