Vietnam is a highly populated country located in Southeast Asia, on the border with China, Cambodia and Laos. Though the country’s name has been popularized in the West because of the infamous Vietnamese War, it is known for more than just that.
Vietnam has a great deal of potential which makes it a very appealing place to invest for foreigners. Some statistics and factual representations here will highlight and emphasize that point to give you a better idea of just where the country and its stand in the global market.
Why Does Vietnam Have A Huge Potential Of Growth ?
Vietnam is known as a socialist-oriented market economy which also happens to be multi-sectorial. At the end of the day, it is the state sector that gets to decide on how economic development takes place. Vietnam is considered to be a fairly populous country with a population of over 97 million. The birth rate stands at 16.3 while the death rate is about 6.3.
However, what’s really interesting from an economic perspective is that foreign direct investment reached $161 billion USD in 2019 alone.
Movetoasia agency, the creator of this video clip, is a foreign company that you can reach out to if you want to learn about real estate opportunities in Vietnam.
The country has received a high amount of investment, holding a good position in Asia.
What you might consider interesting is the business opportunity in Vietnam. As foreign companies are allowed to expand and integrate into the Vietnamese market, they can take quite an advantage.
What Are The Best Cities To Invest In Vietnam ?
Ho Chi Minh is an ideal city to invest in when it comes to Vietnam. It lies in the midst of most of the economic activities in the country, as you would be overwhelmed to see countless offices, banks, and stores thriving with life. Ho Chi Minh itself accounts for 20% of Vietnamese GDP and so the properties there are highly popular to invest in.
Da Nang is another one of the major and most economically sustainable cities in Vietnam.
Investors have been turning their interests to the Central Region there, highlighting just how much potential it has. Being the capital of the country, it comes as no surprise that Hanoi also makes it on the list. If you are wondering about finance or banking or even agriculture, this city has it all, and its economy continues to grow by the day.
In Ho Chi Minh City, What Are The Best Districts?
District 1 of the Ho Chi Minh City is known to be one of the best districts in Vietnam. Some of the city’s largest buildings and administrative offices can be found in this district. It is considered to be the financial center. Another ideal district here is District 3 that is sought out as it is thought to be one of the most appealing sectors there.
The amazing French villas and elaborate offices like the Royal Thai Consulate lend it some advantage, as well as the aesthetics of the Crescent Lake, Ho Ban Nguyet Park, and expansive malls. District 7 is bursting with activity. If you want to be entertained, this is the place to go to in Vietnam.
Average Per Square Meter Prices
If you want to acquire property in District 1, there is no better and pricier place in the country. Ranging from $6000 to 9000 per square meter on average, this district is one of the poshest places to buy land in. With amazing developments like Vinhomes Golden River complex to be expected, this district’s prices are justified.
District 7, on the other hand, averages around $2000 to 3000 per square meter making it a much cheaper yet livelier alternative for those who have a smaller budget.
District 2 with its prices averaging around $4000 to 5000, is an in-between option for those who high value property at a more affordable price compared to District 1.
Minimum Suggested Capital To Invest
It comes as no surprise that you are likely to get fairly cheap prices if you deal with local developers. In order for their projects to become more popular, these developers aim to have low rates to attract attention. It tends to work out for a lot of people who do not care that the projects are not at their peak as long as they can invest less. However, if your priority lies in selecting a worthy project, it should cost you about $150,000 to $200,000 that is likely worth every penny.
Taxes And The Buying Process For Foreigners
Having solid information about the tax structure is highly important if you want to invest, grow your business, or even consider staying in Vietnam.
The very first thing you should take notice of is the lack of tax on capital gains here. This may appeal to investors, as they don’t have to pay any amount if the value of their asset drives up at the point of sale. The tax on purchase stands at 0.5% whereas the personal tax on the sale is 2%. Non-residents being foreigners are required to pay the personal income tax here if some of their income is derived from the country.
Vietnam has already seen significant economic growth with more growth expected in the future. With so many sectors continuing to develop, such as agriculture, energy, mining, manufacturing as well as tourism, it is inevitably blooming. This has also ensured new development projects keep popping up to keep it economically stable — which could present good opportunities for foreign investors.
Not only would it benefit the country itself by further improving its GDP, but it would also benefit these investors who could get a handsome amount of profit after selling their assets at a greater value than what they purchased it at. This is highly likely considering just how far Vietnam is expected to go.
You may be interested in: Investing in the Age of the Coronavirus Pandemic