7 Reasons Why Investing in Vietnam Property

[Compass Real Estate Platform] Vietnam's beaches, rivers, Buddhistic pagodas and busy cities in 2020 were commonly known. This high-speed development in South East Asia was a premium choice on the market for investors from all over the world interested in investing in Vietnam's property. It is arguable that the majority of the Asian countries will come to Vietnam in the next few years, as the country's average GDP (GDP) performances are good, which is 7 percent each year. Why, then, is a foreign investor supposed to invest in Vietnam in 2020? Below, let's find out.

1. Prosperity in the economy

Vietnamese economy is one of the world's fastest growing economies, as the World Bank's report reveals, with an average GDP growth rate of 6.46 percent since2000. Vietnam thus ranked third as Southeast Asia's biggest economy. It is also expected that this rate will remain in the future. More industries and more business opportunities flourish. Meanwhile. It is thus also presumed that a structural change from agriculture to industry will occur soon in the economy of this country.

2. Easing the regulations on foreign ownership

The Vietnamese government has been welcoming foreign investment since 2015. In order to promote foreign investment in their countries, they are constantly trying to improve their regulations. For foreigners it was difficult to survive in the real estate market of Vietnam by 2015, because the regulations only allow foreigners to buy one condo unit for themselves.However, in 2015, the new Residential Housing Act (LRH) made purchasing property easier for foreign investors in Vietnam. Today, only a tourist visa is sufficient to have as many condo units as you like. The criteria are that Vietnamese citizens should own 70% of the building. You can also buy property today.

3. Situation strategically extraordinary

Because of its location, Vietnam is one of the favorite foreign investment hotspots. It is in the center of the ASEAN countries, close to many important export and import shipping routes.

4. Commend trade agreements trade agreements

Vietnam's participation in several trade agreements with many countries, in particular with its Asian neighborhood, is another commendable effort for making the real estate market more liberalised. The World Trading Organization (WTO), ASEAN and ASEAN Free Trade Area memberships (AFTA), and a Bilateral Trade Agreement (BTA) with the United States, are a part of its trade agreements and membership. The country is also strengthening its relations with Europe and China. This improved relationship includes the signature of the EU-Vietnam Free Trade Agreement with Europe. All these treaties show that Vietnam is keen to welcome and trade with foreign investors worldwide.

5. Cross-border growth

The people of Vietnam are more than any country in Europe. The country is the 14th largest country in the world this year, with 96.5 million people in 2020. This huge population is the dream of any local or international investor, since the growing population of a country also increases demand for produced goods. Moreover, Vietnam offers an alternative to low-cost employment in contradiction with China. This country also invested in its education sector in order to transform its population growth into quality skills.

6. Infrastructure planned

In recent years, Vietnam's government has invested in new ports, roads and hospitals. The old ones also have been upgraded. This has changed the infrastructure of the country dramatically, resulting in uncomfortable movement in the country. Property purchases in which future infrastructure, whether it be metro lines or new ports, is planned can lead to great productions. 

7. Advantageous demographics

As shown in the statistics, from around 95 million to 120 million people, Vietnam belongs to countries where the population will grow from now until 2040. Where the population is greater, the demand for property is naturally high, especially in the large cities such as Hanoi and Ho Chi Minh City. 50% of its population is under the age of 30 and that young demographic is high investors' potential. This is clearly the reason why investors from all around the world flock to Vietnam for investing in their real estate, given these amazing properties.

Author ៖ Samnang, Editor-in-Chief ៖ Sunnie, Editor-in-Chief / Producer ៖ Nicole

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