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VIETNAM: INVESTING IN REAL ESTATE SECTOR - Now or never!
• COUNTRY BACKGROUND – ATTRACTIVE REASONS
TO COME IN REAL ESTATE MARKET IN VIETNAM
WHAT IS HAPPENNING INSIDE VIETNAM?
VIETNAM’S INTEGRATION TO REGIONAL AND
• LAW ON RESIDENTIAL HOUSING – WHAT’S NEW?
• HOW TO TAKE THE BEST ADVANTAGE OF THE
Welcome to the most dynamic country on this
planet : Vietnam!
Vietnam’s super rich population is growing
faster than anywhere else….
… and is on track to continue leading
the growth in the next decade
Communist Vietnam Has More Millionaires
Than Capitalist Philippines
Rapid urbanization (cont.)
• By 2020, 50% of Vietnam’s
population (of 100 million)
will live in urban
• ~374,000 additional
housing units will be
needed in cities every year
to cope with rising demand
Source: World Bank
VIETNAM’S INTEGRATION TO
REGIONAL AND INTERNATIONAL
Without TPP – What’s next?
• Trade Facilitation Agreement
• ASEAN Economic Community (covering 620
million people of 10 ASEAN countries)
• EU – Vietnam Free Trade Agreement
• Regional Comprehensive Economic Partnership
(RCEP) (covering 3 billion people in 16 countries
and 28% of global trade)
• Bilateral trade agreement with the United States?
Key characteristics of AEC
Legal certainty in new generation of FTAs
• As a result of global integration, Vietnam has to develop legal
certainty to be member of international trade organizations.
• Once the EU-Vietnam Free Trade Agreement (EVFTA) are
ratified, Vietnam will have more legal certainty than even
• EVFTA implements investor-to-state dispute settlement
(ISDS) mechanisms – investors can claim in case that an investor
protection obligation has been breached
• Domestic courts cannot question the legal validity of the decisions
EVFTA secures a modern reformed investment dispute
More investment – More demand for space
More investment – More demand for space (cont.)
The manufacturing sector: primary beneficiary of FDI more
demand for industrial parks and logistics/distribution
More investment – More people coming:
Opportunity for residential housing sector
WHERE TO LIVE???
Who can buy property in Vietnam?
• Vietnamese organizations, households or individuals
• Overseas Vietnamese
• Foreign entities who invest in project-based housing
construction in Vietnam
• Foreign-invested enterprises, branches, representative
offices of foreign enterprises, foreign-invested funds and
branches of foreign banks operating in Vietnam
• Foreign individuals who are allowed to enter Vietnam
Who can buy property in Vietnam? (cont.)
• Get married to a Vietnamese
• and own a house on a freehold basis
WTO ANALYSIS OF LIBERALIZATION
OF MARKET ACCESS
• Typical restrictions: number of opened sectors, JV requirement,
limits on foreign-owned shares, permission requirement
Copyright Oliver Massmann - All rights reserved
Country Limitation of
Country Limitation of
Malaysia medium Myanmar high
Indonesia medium Cambodia medium
Philippines medium Laos medium
Singapore low India high
Thailand medium China medium
Brunei high Vietnam low
Invest in Vietnam’s real estate before 2018
• When the EVFTA is very much likely to be ratified
• Investors who take this opportunity to invest now are
one step ahead others before competition becomes
fierce for Vietnam’s real estate market.
Tips for making investment
• Due diligence well before making any investment
• Hiring international legal professionals because only
they can provide a liabilities insurance investors can
• Red book
DUANE MORRIS VIETNAM LLC
Thank you very much!
HANOI OFFICE HO CHI MINH CITY OFFICE
Pacific Place, Unit V1307/08, 13th Floor, Suite 1503/04, Saigon Tower
83B Ly Thuong Kiet, Hoan Kiem District 29 Le Duan Street, District 1
Hanoi, Vietnam Ho Chi Minh City, Vietnam
Tel.: +84 4 39462200 Tel.: +84 8 3824 0240
Fax: +84 4 3946 1311 Fax: +84 8 3824 0241
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