Vietnam’s emergence as one of the fastest-growing economies in Asia over the last two decades has been widely hailed. This has been attributed to a series of reforms known as – Doi Moi, which started in the latter part of the 1980s. Reforms began primarily in the agricultural sector, which, at the time, accounted for close to 40 per cent of gross GDP and 70 per cent of total employment.
Vietnam reached its highest GDP growth in 8 years with a record of 6.98% y-o-y in Q3 of 2018. Moreover, its Foreign Direct Investment (FDI) has surged a 6% y-o-y. On the other hand, its Industrial Production Index increased 10.6% y-oy, the highest since 2012. Furthermore, as one of Asia’s rapidly rising countries, Vietnam faces a bright future in the real estate market.
Let’s check out which areas are considered the most lucrative places for buying houses and land property!
Ho Chi Minh City is the largest city in Vietnam and is praised as Vietnam’s top-performing financial hub. For the third quarter of the year, Ho Chi Minh’s GDP reached 7.89% y-o-y while leading the country’s FDI investments. This shows that Ho Chi Minh City is foreign investment-friendly and a place where you could expect a return of investment. It is home to Tan Son Nhat International Airport, the largest airport in the country and Saigon Port, the busiest port in the city. This city has 11 industrial zones and a well-established Hi-tech Park containing international brands such as Samsung and Intel. With good economic growth, Ho Chi Minh City provides great property investment opportunity as well as returns.
What makes Ho Chi Minh’s location even more attractive is its proximity to other thriving ASEN nations. Within its radius of 3,500 km, other areas such as Cambodia, China, India, and Thailand. You can experience an upbeat living in Ho Chi Minh, especially with great food, shopping centres, and nightlife aside from financial buildings. So, expect it to be full of people, especially at District-One. However, there are many other Districts apart from HCMC’s District One to explore. Scattered in the area are lots of condos to buy or rent.
Within the north side of the country sits Hanoi, the political centre and the capital of Vietnam. According to CBRE Vietnam, Hanoi’s GDP reached 7.17% the previous year, as for the third quarter of 2018. Hanoi presents favourable property investment opportunities as well due to its highly functional and efficient transport system. Due to the government’s conscious effort to improve the city’s transport infrastructure, Hanoi is known for being the transport hub of the Red River Delta. Inside Hanoi, you can find Noi Bai International Airport, the second-largest airport in the country, and a broad network of waterways, railways, and highways effectively connecting the region.
Boasting its deep cultural heritage, Hanoi is home to vast Vietnam history, culture, and a thriving art scene. Expats who plan to live here will be thrilled to uniquely see Vietnam architecture, trading practices, and tradition. Such cultural sites include Turtle Tower, One-Pillar Pagoda, Hanoi’s Opera House, the Temple of Literature, and many more.
In Q3, new property launches in the area are mostly focused on the city's West and South. With that, Hanoi’s property market seems to experience a decentralization trend because of the new project launched in Thanh Tri and Hoai Duc Districts. For some, Tay Ho poses as the most desirable residential area. This place is dotted with properties of Vietnam’s political elites. The special thing about Tay Ho is serene riverside living. However, Tay Ho’s prices are among the most expensive in Hanoi, so be wary. You can also find more property for sale in Hanoi’s Cau Giay District, Long Bien District, Bac Tu Liem, and Hoang Mai District.
Da Nang, known as the city of bridges and festivals, presents a vibrant yet serene coastal living. This, plus its 70km stretch of awe-striking coastal line and white sand, has even earned it a place in TripAdvisor’s Top 10 destinations on the rise for 2015 and Asia’s leading festival and event destination by World Travel Awards Asia in 2016.
Da Nang sits in a strategic location because of its proximity to neighbouring big cities such as Hanoi and HCMC, and other Asian countries. Further connecting it to other neighbouring countries is the East-West Economic Corridor, linking Da Nang’s port to Laos, Cambodia, Thailand, and Myanmar. Hence, Da Nang serves as an entry and exit points for goods and people in the area.
Despite being a small city, Da Nang’s infrastructure passes international standards. But unlike the two aforementioned cities, Da Nang exudes calmness. The expatriate community is ever-growing along this area, reaching 5,000 people in 2017 alone. This area is also replete with property for sale, especially luxury ones near the coast. There is an ample supply of luxury villa and homes and even condominiums if you want to invest in those properties.
Dong Nai is a province in southeastern Vietnam, located east and northeast of Ho Chi Minh City (Saigon). Located in Vietnam’s southern key economic region in Vietnam, Dong Nai has emerged as a hub for foreign direct investments in supporting industries and place of high-tech manufacturing. The province offers efficient logistics networks and connectivity to Ho Chi Minh City in addition to a wide array of targeted investment incentives. In the first nine months of 2020, Dong Nai’s GDP was excellent.
The mega airport in Dong Nai’s Long Thanh will be located 40 km east of Ho Chi Minh City. Once completed, this airport will considerably shorten travel time between the province and major urban centres in Vietnam. By 2025, the expected capacity of the airport is 25 million passengers and 1.2 million tonnes of cargo per annum. The province is also well served by waterway routes and seaports. In 2019, Dong Nai attracted the seventh-largest portion of Foreign Direct Investment (FDI) in Vietnam. FDI in the province is concentrated in electronic component manufacturing, textile and garment production, and tech-intensive industrial goods manufacturing. South Korea, Japan, China, Singapore, and Thailand are major investors in the province.
That’s why the demand for both living and commercial spaces are rising in Dong Nai. Along with that, the demand of detached house and flats are increasing day by day.
Another promising province in Vietnam include Bac Ninh, and an agricultural turf turned into one of the major industrial hubs in the Northern Key Economic Zone. Currently, this province is attracting a lot of FDI from Vietnam. Major international companies such as Canon (Japan), Samsung (South Korea), Nokia (Finland), and ABB (Sweden) have established their presence in Bac Ninh. With more companies to international companies to come, it will definitely attract more people. And, with more people comes a higher demand for more homes. Be on the lookout for property investment opportunities in this area!
Vietnam is an amazing developing country, and thus, expenses here are still low. The country may not be as attractive as the major areas of China or Singapore, but Vietnam seems to be very perspective shortly. Therefore, if you have a vision for the long-term future, you should invest soon from now. But before making any important property investment decisions, you will need to consider the market and additional factors very carefully.
Seeking to invest in Vietnam, a developing country with amazing untapped potential?
Have a chat with our esteemed members of Juwai IQI to find the perfect home in Vietnam.