Vietnam is a densely populated country located in South-East Asia, on the border with China, Cambodia and Laos. Although the country's name has been popularised in the West because of the infamous Vietnam War, it is not only known for that.
Vietnam has a lot of potential, which makes it a very attractive investment destination for foreigners. Some statistics and factual representations here will highlight and emphasise this point to give you a better idea of where the country is and its position in the global market.
Why does Vietnam have huge growth potential?
Vietnam is known as a socialist-oriented market economy, which is also multi-sectoral. After all, it is up to the public sector to decide how economic development will take place. Vietnam is considered a fairly densely populated country with a population of over 97 million. The birth rate is 16.3 and the death rate is about 6.3.
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However, what is really interesting from an economic point of view is that foreign direct investment reached USD 161 billion in 2019 alone.
What are the best cities for investment in Vietnam?
Ho Chi Minh City is an ideal city for investment in Vietnam. It is at the epicentre of most economic activity in the country, as you would be stunned to see countless offices, banks and shops thriving. Ho Chi Minh City accounts for 20% of Vietnam's GDP, so real estate here is very popular for investment.
What are the best neighbourhoods in Ho Chi Minh City?
District 1 of Ho Chi Minh City is known as one of the best districts in Vietnam. This district has some of the largest buildings and administrative buildings in the city. It is considered a financial centre. Another ideal neighbourhood here is District 3, which is in demand as it is considered one of the most attractive sectors.
Average prices per square metre
If you're looking to buy property in District 1, you won't find a better or more expensive place in the country. On average, this area costs between $6,000 and $9,000 per square metre, making it one of the most luxurious places to buy land. With amazing developments pending, such as the Vinhomes Golden River complex, the prices in this area are justified.
District 7, on the other hand, costs an average of $2,000 to $3,000 per square metre, making it a much cheaper but livelier alternative for those on a smaller budget.
District 2, with prices averaging between $4,000 and $5,000, is an intermediate option for those looking to buy a property at a more affordable price compared to District 1.
Minimum recommended capital for investment
Unsurprisingly, you are likely to get fairly low prices if you deal with local developers. In order to make their projects more popular, these developers tend to have low rates to attract attention. This tends to work for a lot of people who don't care that projects are not at their peak as long as they can invest less. However, if your priority is to choose a decent project, it should cost you between $150,000 and $200,000, which is probably worth every penny.
Taxes and the buying process for foreigners
Having reliable information about the tax structure is very important if you want to invest, develop your business or even consider staying in Vietnam.
The very first thing you should look out for is the lack of capital gains tax here. This may appeal to investors as they do not have to pay any amount if the value of their assets increases at the time of sale. The purchase tax is 0.5%, whereas the personal sales tax is 2%. Non-residents who are foreigners must pay income tax here if part of their income is derived from the country.
Vietnam has already experienced significant economic growth and even more growth is expected in the future. As many sectors continue to grow, such as agriculture, energy, mining and manufacturing, as well as tourism, it is bound to flourish. This has also ensured that new development projects have emerged to keep it economically stable, which could provide good opportunities for foreign investors.
This will not only benefit the country itself by further improving its GDP, but will also benefit those investors who will be able to make a solid profit after selling their assets at a higher price than what they bought them for. This is highly likely given how far Vietnam is expected to go.
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