Published on 25 February 2006 at 12:46 pm
Filed under: Asia:- Vietnam Property Guides » Vietnam Real Estate Buying Guide
The laws relating to the direct foreign ownership of property in Vietnam are currently under review by the Vietnamese government – the law as it stands does not permit foreign ownership of real estate anywhere in Vietnam.
A new draft law was submitted to the National Assembly in 2005 and it is due to be ratified sometime in 2006; under the terms of the draft law the real estate market will become more accessible to foreign investors.
The real estate buying process in Vietnam for foreigners currently does not therefore exist! All expatriates living in Vietnam rent accommodation and foreign investors are restricted to the development of housing and commercial real estate.
Foreign direct investment is being targeted but the Vietnamese government are incredibly determined to remain in tight control of their country and therefore all those who wish to invest in the real estate construction and development industry have to deal with a maze of laws, rules and regulations before they are permitted to invest in the fast growing property market in Vietnam.
There’s no denying the fact that the government’s determination to remain so restrictive is holding back the potential in the real estate market in Vietnam. There is a massive requirement for residential accommodation that is not being met at the current construction rates - and furthermore there is strong demand for residential property from expatriates, investors, Vietnamese living outside of Vietnam and those seeking an exciting second home destination.
This ever increasing demand for investment property in Vietnam coupled with the fact that the Vietnamese government is slowly adapting laws to allow for the foreign ownership of real estate means that Vietnam is one to watch. It is a country where there is a property boom waiting to happen and those who remain ready and watchful and who will be able to move when restrictions are lifted will likely profit the most.
Because of the nature of the country and its government, potential investors determined to enter the real estate market in Vietnam when the time is right should be aware that it is likely that short term gains will be an unachievable prospect because it is likely the government will restrict speculative property investment.
Instead the best returns will be made by targeting the tourism and expatriate rental markets. Those who wish to profit from property in Vietnam today should consider investing in development and construction projects. For more information about the new draft property law in Vietnam click here.
Asia:- Vietnam Property Reports
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