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


  • 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


  • 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


  • 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