Main Capital: Hanoi
Largest City: Ho Chi Minh City
Currency: Dong (VND) (US$1 : VND 22,760)
Population: The current population of Viet Nam is 95,854,294 (October, 2017)
Ho Chi Minh City’s potential
Ho Chi Minh City is growing up very fast and expending mostly toward the west with many new buildings on the horizon. It largely has been the result of the social economic factors but also thanks to the impact of tourism and a strong industrial activity.
Infrastructures’ investment as a support for real estate market development
The first line of Ho Chi Minh City’s metro is scheduled for completion by 2020. We do recommend our clients to buy apartments in projects along the line going from District 1 to District 9 where the chances will be also high to rent out fast and at a good price.
30% total units of any development
10% of landed villa and/or housing project stock
- Here is an idea of the price you may expect for your property investment in Ho Chi Minh City
|Middle Range||D2, D9, Thu Duc, Binh Thanh||$1,500 to $2,000||D2, D9 and Binh Thanh are closed to the new metro line, ended in 2020.|
|Medium to Top-end||Binh Thanh, D2, D7||$2,500 to 5,000||District 2 is geographically close to the city center and provides a high-standard of living.
The main area to consider for investing are Thao Dien, followed by An Phu.
The best international schools are also in District 2.
Binh Thanh is also a warm district, where notably the development CityGarden will be handed over soon.
|Top-end||D1, D3||$7,000 to $9,000|
Vietnam is the third largest population and one of the fastest-growing economies (7%) in Southeast Asia.
Concerning the property investment, the new changes in law in July 2015 stimulated the fast growth of the real estate market. Before 2015, foreigners had just a few options to invest in Vietnam.
The newly reformed Vietnamese Law on Residential Housing (LRH) officially started in 1st July 2015 (No. 65/2014/QH13).The Vietnamese government relaxed property ownership rules for foreign investors:
- Several major past restrictions on property ownership have been removed for foreigners.
- Home prices in the two largest cities of the country, Ho Chi Minh City and Hanoi, have already seen considerable growth in recent years.
- Anyone with either a 3-month tourist or residence visa may now own a property.
Taxes in Vietnam
|Value Added Tax||10% VAT|
|Registration tax for Ownership||0,5% on the apartment value for obtaining the “pink book” ownership certificate|
|Personal Income Tax (for resale)||If personal income is earned through the assignment or resale of apartments or houses, a 2% personal income tax has to be paid on the transacted value.|
|Personal Income Tax (for rental income)||If personal income is earned through rental of house/apartment, 5% VAT and 5% PIT has to be paid on revenue|
|Business license tax||1,000,000 VND ($45) have to be paid for rental income exceeding 1,500,000 VND/month|
Opening a bank account
The Vietnamese Ordinance on Foreign Exchange dated 13 December 2005 (the Ordinance) provides in principle that all transactions in Vietnam must be quoted and settled in VND. Therefore, to ensure more smooth transfer for local property purchases, foreign investors are advised to set up a local bank account. There are many international banks in Vietnam such as: ANZ, Citi Bank, HSBC and Standard Chartered where English-speaking bankers can support foreign clients with various types of banking transactions.
How can we help you?
We are providing three services: buying, renting, selling in managing everything.
Our approach is different from the developers who will try to sell you whatever they have in their stacking plans with not considering your needs and criteria. Instead, Rex Vietnam will help you to find the most suitable unit for you in several steps:
- We select for you the best project: which is answering to your needs, wants and requirements
- We take care of everything during the buying process, and we support you in this new project launch
- We manage all of the administrative tasks: Bank account opening, outward remittances, etc..
- We provide Legal and Tax all along the transactions to make sure your investment is protected
- We manage the property even after the buying process.
- As we are also investors in Ho Chi Minh City, we know a lot about the market in here and we are the most able to advise you which make a huge difference between us and other agents.