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Vietnam real estate investment is a valid option for foreigners. While new government legislation will allow more options for foreigners, the current global economic downturn means Vietnam real estate investment will be vulnerable. Below are Healy Consultants' services along with information related to Vietnam real estate investment:

Apart from buying an apartment or house, foreign individuals are able to invest in Vietnam real estate by forming i) a joint venture company with a local partner ii) a wholly foreign-owned company iii) a Build, Operate and Transfer (BOT) company or one of its variants.

The Circular 13 law came into effect on 1 January 2009, meaning Vietnam real estate investment is an option for foreigners falling under the following categories, i) individuals who already invest directly into Vietnam ii) individuals who have received an award from the State President or Prime Minister iii) individuals with a university degree in a desired sector iv) individuals who are married to a Vietnamese person iii) via companies that are not real estate related. Restrictions are that the apartments must be in approved housing developments and have a lease period of 50 years.

In January 2009, Vietnam also officially allowed 100% foreign invested companies in the retail sector, which is part of the WTO commitments. Vietnam is seeing a trend for people preferring to shop at modern shopping malls, supermarkets, and self-service stores rather than at the more traditional markets. According to the Ministry of Industry and Trade, the retail turnover grew by 20.5% year-on-year to US$54.3 billion (975 trillion dong) in 2008.

Property developer Ireka Corp Bhd plans to aggressively grow its i-Zen brand for its overseas property development division and has a focus on Vietnam. Ireka sees the Vietnamese market as offering vast opportunities for their brand, as the country has a young and educated population, strong foreign direct investment and government initiative to promote liberalization. Ireka's property development in Vietnam is in association with Aseana Properties Ltd, which currently has seven projects in Malaysia and three in Vietnam.

Because of the diverse environments offered in Vietnam, including beautiful beaches and increasing number of golf resort developments, to the growing business districts, Vietnam is seen as having potential to rival Thailand as a prominent retirement and holiday destination. Vietnam Tourism figures for December indicated a 19.0% increase for tourist figures over the same period last year. Total international arrivals in 2010 reached 5.0 million; 35% higher than 2009. The strong appeal for Vietnam as a tourist destination will help Vietnam real estate investment.

Improving legal framework and greater transparency through a more mature foreign investment environment in the future will assist growth of Vietnamese real estate.

Whether buying property in Vietnam or selling property in Vietnam, Healy Consultants assist international entrepreneurs and investors to implement their Vietnam real estate investment objectives. These objectives can be in the i) residential real estate sector or ii) commercial real estate sector.

Healy Consultants provides professional tax and accounting advice for Vietnam real estate investment. Taxes include the value added tax (VAT), taxes for land use right, land rental, taxes for income derived from capital gain and withholding tax.

Obtaining appropriate property finance is an important step in securing a rewarding Vietnam real estate investment. The processes that Healy Consultants undertakes to assist clients obtain competitive property finance include:

Locating competitive, international mortgages to fund Vietnam real estate investment. In sourcing property finance, our firm works with leading international banks including ANZ Bank, DBS Bank and OCBC Bank.

Comparing the different Vietnam property finance options available and discussing the recommended options with our client. This allows them to make an informed decision on the most appropriate finance option.

Where necessary, preparing a business plans and cash flow projections to increase the probability of mortgage approval.

Negotiating banking terms and conditions on behalf of our client.

After securing a mortgage, assistance is provided to open personal and corporate bank accounts for receiving rental income and/or settling mortgage repayments for their Vietnam real estate investment.

Acting as intermediary between the bank and client for the entire process of obtaining property finance for their Vietnam real estate investment.

The comprehensive property management services provided by Healy Consultants are of valuable benefit to investors involved in the Vietnam real estate market.  Services including organizing property refurbishments, finding tenants, implementing property maintenance, arranging property insurance, organizing property valuations, and sourcing property security requirements are all activities which can be project managed and contribute to an efficient Vietnam real estate investment.

Healy Consultants will appoint and supervise a Vietnam lawyer to ensure all the legal matters associated with Vietnam real estate investment are undertaken correctly. Having an experienced lawyer is an important step to minimize the risk of problems occurring.

For clients migrating to Vietnam, Healy Consultants assists with all the requirements including immigration visas, organizing relocation services, and assisting with familiarization of Vietnam.

Contact Us

For further information on Vietnam real estate investment, please contact us at our Singapore office at (+65) 67350120 or email us at email@healyconsultants.com

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