Vietnam - Overview

A quick snapshot ...
Economy |
GDP growth rate of 5.9%(2011) Inflation averaged 18.6% y-o-y with the peak reaching 23% in August (2011) Exchange Rate US$1 - VND 20,810 Implemented FDI US$10.5B (2011) |
Population |
Currently 87.61m as of 2011 59.7% (2010) under 35 years of age 90% literacy rate (2011) |
Workforce | 46.9m (2010) and estimated to grow 1.9m per year |
Urbanisation | 30.5% urban (2010) - estimated 50% by 2040 |
Tourism | International arrivals (2011) - 6m (increase of 19% y-o-y) |
Investing in Vietnam
- Vietnam is transforming from a centralized to a more market-orientated economy
- Banking sector reforms are underway with the merging of a number of local banks. More are expected in the near future
- Urbanization is rapid at 28.1% of the population, expected to increase to 35% by 2020
- An expanding middle class which is increasing personal wealth and consumer spending powers.
- GDP per capita in 2010 was $1,168 with GDP growth achieving 5.89% in 2011
Real Estate Market - Overview
Residential
- Underlying demographics and socio economic trends are driving the market
- Affordable housing has continued to achieve the strongest results in a market suffering from oversupply and mortgage lending issues
- The residential market has seen a shift in demand from speculators to owner occupiers with affordable housing and landed properties being the most sought after products
Office
- Relatively immature market with completion of individual projects capable of dramatically moving market prices
- Historic oversupply has reversed a trend of price setting by landlords
- Rising demand by tenants for international-quality finish, services and management
Retail
- Still in its infancy, with 2007 WTO ascendancy opening up opportunities for foreign participants
- Entrance of new to market players in the last 12 months shows a long term confidence in a market that is currently suffering due to high inflationary issues
- Positive long term prospects due to constrained supply and demand driven by increasingly prosperous middle class
Real Estate Market - Drivers
- Young population
- Rapid urbanisation
- Increasing personal wealth and consumer spending power
- Expanding middle class