Property Investment: Why Vietnam?
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. In fact, 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. Rex Vietnam does 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
Property investment prices in Ho Chi Minh City
District: D2, D9, Thu Duc, Binh Thanh
Price/sqm: $1,500 to $2,000
- D2, D9 and Binh Thanh are closed to the new metro line, ended in 2020
Medium to Top-end
District: Binh Thanh, D2, D7
Price/sqm: $2,500 to 5,000
- District 2 is geographically close to the city center and provides a high-standard of living.
- District 7 is a modern area. But as it is far from the center, streets feel almost suburban.
- Binh Thanh is also a warm district, where notably the development CityGarden.
District: D1, D3
Price/sqm: $7,000 to 9,000$
- D1 is an interesting mix of old world charm and modernity
- D3 is a brokerfor people who found D1 too noisy and overcrowded
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:
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.
Vietnam is the third largest population and one of the fastest-growing economies (7%) in Southeast Asia.
- Foreigners don’t undergo several major past restrictions on property ownership anymore.
- 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
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 will consider 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?
Our agency is 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. They may not considering your needs and criteria. Instead, Rex Vietnam will help you to find the most suitable unit for you in several steps:
- Selecting for you the best project: which is answering to your needs, wants and requirements
- Taking care of everything during the buying process, and we support you in this new project launch
- Managing all of the administrative tasks: Bank account opening, outward remittances, etc.
- Providing Legal and Tax all along the transactions to protect your investment
- Managing 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.