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Guide to real estate investment in Vietnam follows foreign investors

Urban land of HCMC will be planned to expand

The following article will address issues related to real estate investment in the eyes of foreign investors.

Favorable conditions for foreigners to invest in real estate in Vietnam

In recent years, the speed of economic development of Vietnam is quite fast. During the 1990s, the average annual GDP growth was 7%. While China’s densely populated country is implementing more protectionist policies for domestic companies, more and more foreign companies are investing in manufacturing in Vietnam.

Specifically, by 2015, the Vietnamese government has loosened regulations on property ownership for foreign investors. Anyone who has a tourist visa or a 3-month visa can buy property under a 50-year lease.

Along with the more favorable policies, there are other reasons to persuade foreigners to invest in the real estate market in Vietnam:

– Vietnam is the third most populous country in Southeast Asia, its population is young and continues to increase in the future. While neighboring countries such as China and Thailand are facing a decline, the population is projected to increase from about 95 million people to nearly 120 million by 2040. This promotes urbanization and societies. Real estate prices in all major cities will increase.

real estate market
Vietnam’s real estate market attracts many foreign investors

– Second, Vietnam is one of the fastest growing countries in the world. Vietnam’s economy has expanded by more than 6% in 2016. The government of Vietnam is also loosening policies to attract foreign investment.

– Buying property in Vietnam is quite safe. In Vietnam, the Government has enough land data and they keep track of the plots in all major cities (except for some rural areas). ). The problems come from the sellers, not the government.

Things foreigners need to know when investing in Vietnamese real estate

The form and quantity of foreign real estate are owned in Vietnam

Thus, foreigners can completely invest in real estate in Vietnam. But the Law on property ownership with foreigners stipulates that they are not allowed to own the land permanently but are only allowed 50 years. Whether you are Vietnamese or foreign, all plots are owned by the state.

Moreover, foreigners can own up to 30% of units in a project. And only up to 250 apartments in a project that allows foreigners to own.

How much property transfer tax in Vietnam?

When transferring real estate in Vietnam, the buyer must pay a fee, Including VAT of 5% plus registration fee of 0.05% of the value of the property.

If there is a return on investment, you will also have to pay a 0.15% income tax on that amount. If the rental amount is 20%.


One of the most unique aspects of the Vietnamese real estate market is the fact that transactions are usually made in gold rather than cash.

This is explained by trading habits. Moreover, the currency of Vietnam is relatively low value and inflation in a long time. And people are often wary of big deals. So they choose gold or dollars.

Select a reputable investor

As mentioned, real estate investment in Vietnam is quite safe. And any problem that can happen is from the sellers, not the government. So you need to find reputable investors when they intend to buy. It is important to do a thorough examination of property and documentation before making a decision.

If you choose small, less reputable companies you will be exposed to some risk such as: the project does not carry out the plan and in the worst case is not carried out construction.

Real estate broker in Vietnam

The Vietnamese people are mainly seeking to buy real estate through friends, family and colleagues. Real estate agents in Vietnam will make it easier for foreign buyers who are not fluent in Vietnamese to transact. But when working with them, remember that you have to pay commissions to them. So if you only need help during the transition, talk to your attorney.

Suggest some investment locations

Many investors choose real estate in Ho Chi Minh City (Saigon) or Hanoi. Most of the rest chose coastal cities and resorts such as Nha Trang or Da Nang.

Ho Chi Minh City: This is the largest urban and economic center of Vietnam and one of the fastest growing cities in Asia. This city is called Saigon byLocal people. Almost everything that matters in business in Vietnam must be located here.

Ho Chi Minh City officially has 19 urban districts and 4 suburban districts. The centers and most important are District 1 and District 3.

In addition, District 2 in the east is being strongly developed. The western and northern suburbs of the city center are continuing to expand.

HCMC real estate
Ho Chi Minh City is the focus of many high-end apartment projects

+ District 1: is the focal point of Vietnam in business, commerce and finance. It houses a lot of hotels, offices and skyscrapers. Accordingly, the price of real estate here is the highest, even higher than Kuala Lumpur.

+ District 2: Located on the other side of the river, 1 bridge. This place is also quite developed. There are many large projects that make up the place of the rich. District 2 is also home to hospitals, international schools and many restaurants, trade centers leading.

+ District 3: District 3 is considered the most senior residential area. Many foreigners prefer to live in District 3 because they are close to restaurants, bars, and other amenities of District 1. District 3 is like Bangkok’s Thong Lor. Real estate prices are high but still lower than District 1.

In addition, District 5 and District 10 are also interesting places to invest in Ho Chi Minh City.


It is a big city, but the capital of Hanoi is very different from Ho Chi Minh City. Hanoi property prices seem to be lower than Saigon. Because it is the political center of Vietnam and not the economic center. Many businessmen as well as foreigners or move from Hanoi to Saigon live. But not so foreigners should not invest in real estate in Hanoi. There are many embassies, NGOs and startups.

Some typical districts of Hanoi:

+ Tay Ho: Many senior leaders in politics and foreign ambassadors of Vietnam prefer to live here. Built around a large lake with the same name, Tay Ho district has a unique location. Moreover, it is only a short distance from the center of Hanoi and the political center of the country. Therefore, the price of real estate in Tay Ho is the most expensive in Hanoi.

+ Ba Dinh: This is where most of the embassies and government buildings of Vietnam are located. The price of real estate in Ba Dinh is also very high.

+ Hoan Kiem: known as Hanoi Old Quarter. This is also one of the most popular tourist sites in Vietnam. Real estate here is mainly owned by local people who have lived here for generations. And it is rarely sold.

+ Hai Ba Trung and Dong Da are also districts that foreigners may consider investing


This is the third largest city in Vietnam. Danang is one of the most favorite coastal cities in Vietnam. In this place you can find a lot of luxury hotels. And the international brands such as Sheraton, Hyatt are also here.

Hoi An

A small town about 25 km from Da Nang. However, in Hoi An, foreigners have less choice when buying real estate. It is aimed at more tourists to stay.

Nha Trang

A coastal city not far from Ho Chi Minh City. Nha Trang is similar to Pattaya in Thailand. This is a good place for those who want to own a second home and those looking for a weekend getaway.

Besides some advantages, investment in real estate in Vietnam is still limited. It is worth noting that the low value of the coin along with the still bureaucratic mechanism still exists. However, investing in real estate in Vietnam is not a bad idea and you may be profitable. While the opening policy is being implemented, the more opportunities will come to you.

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