Despite a war-torn and troubled history, Vietnam is now a vibrant country with beautiful beaches, Buddhist temples, monuments to past leaders, and sprawling cities. In short, there are plenty of things to do and see in Vietnam, and the boom in the local property market and a relaxation of foreign property ownership laws has seen unprecedented economic and social growth.
Vietnam had been experiencing an economic slump until a new law came into effect in July 2015. This law liberalized foreign property ownership, and now effectively permits any Vietnamese visa holder to buy residential property without restriction. This policy applies equally to houses of all types and all sizes including condominiums, villas, and townhouses, among others.
The policy also means that foreign property owners can even legally sub-lease these homes and pass them down to future generations. By liberalizing property ownership laws, the Vietnamese government has effectively opened their economy overnight to major foreign investment and has ensured that Vietnam itself can become a major multi-cultural society in the future.
Open for Business
The implications of these new property laws are indeed significant. Given that our understanding of all modern and prosperous economies is based upon stable property ownership, Vietnam is effectively open for business and has signaled this to the rest of the world. Clearly, the intention is to grow the Vietnamese economy as rapidly as possible in the new century and to develop partnerships with other nations in the region and in the rest of the world.
As of the end of 2015, analysts predicted the property in Vietnam was beginning to attract major international attention from savvy investors and even from those simply seeking a sea change or to increase their rental property portfolios. The benefits of this new economic activity to Vietnam and Vietnamese people include:
- Investment: Greater foreign investment translates to a flourishing national economy. When money is funneled into an economy in this way, the opportunities for the locals increase, including employment.
- Upward mobility: When a national economy grows, aspiration also increases. This results in the creation of a middle class and subsequent increased spending domestically.
- Projects: When borders are opened to foreign investment and trade, money pours into the economy and ideas are exchanged more freely. The result of this is that building projects are announced and funded, tourism receives a boost, and new social policies are implemented.
There has never been a better time to invest in Vietnamese property. The economic growth of the country is predicted to continue, making it a rich market for Asia Pacific nations in particular. As the housing boom continues to develop in Vietnam, the social benefits are multi-fold and include improved social mobility, building and construction projects, improved tourism, the free exchange of ideas, a rapidly growing economy, a booming retail sector, and cultural impacts through the addition of property that can now be inherited by those who were formerly disallowed from entering the real estate market.