|
|
Filed under: Asia:- Vietnam Property Guides » Vietnam Real
Estate Investment Potential
Investment Potential for Real Estate in Vietnam
Many believe that Vietnam will become the next Thailand in terms of
its tourist and second home appeal. Currently Vietnam is around 20
years behind Thailand in terms of its development, the number of
tourists it attracts and also the prices charged for real estate but
the rate of development by which Vietnam is improving is incredibly
rapid.
Vietnam shares great natural attraction and appeal with Thailand and
yet currently it offers a real estate investor far greater and
broader potential for profit and long term investment success.
Therefore while one can compare Vietnam to Thailand in terms of its
beauty and charm, one cannottie Vietnam’s potential to that of
Thailand’s because Vietnam is beginning to emerge as an incredibly
attractive real estate investment hotspot on many unique levels.
Firstly the development of Vietnam as a holiday destination is
rapidly taking hold. In 2004 for example tourism numbers shot up by
almost 24% and this is a pattern that the Vietnamese are keen to see
emerge. Foreign investors have already realized the potential of the
tourism sector and a joint Vietnamese and American consortium has
already committed one billion US dollars to the development of
tourism and recreation facilities for example.
Currently in the planning stages or under construction are six
championship golf courses, a five star hotel resort, a marina, a
yacht club and substantial villa and apartment accommodation to let
to holiday makers. This particular billion dollar investment is
being centered upon the Uong Bi Township and Nha Trang City in Khanh
Hoa Province but investment opportunities are not limited to any one
particular area of the country when it comes to tourism in Vietnam
and the Vietnamese government is actively and successfully
encouraging tourism based investment.
Such is the appeal of the entire country that an investor can pick
and choose from well established locations such as Nha Trang or
emerging destinations where infrastructure has yet to improve but
where land prices are incredibly cheap and the potential for the
future is very strong.
There are opportunities for investors in Vietnam’s main cites as
well because the Vietnamese economy is expanding at an impressive
rate, FDI figures are up and the long term outlook for the country
is for sustained and sustainable growth which means many new
companies are being attracted to Vietnam and creating employment
opportunities and pushing up domestic purchasing power. This means
that there’s potential to target local residential real estate needs,
the commercial property market with office and retail space or even
the corporate let market with many executives requiring a short term
base in Ho Chi Minh City and Hanoi for example.
The economic growth targets that the Vietnamese government have set
themselves for 2010 are to increase GDP annually by between 7.5 and
8 percent to ensure GDP is 2.1 times larger than it was in 2000 and
so far they are on target to achieve this. The reforms they have
exacted to get their economy working have so far proved successful
and this bodes well for the property investor who should consider
that Vietnam’s fortunes may actually be following China‘s not
Thailand‘s and the potential in the Vietnamese real estate market
could be as impressive.
|
|
