Close

How do you invest in Vietnam real estate?

Sure one can invest in Vietnam. But to do so in many ways depends on what country you are from. If your from Vietnam then your choices become more limited and far more risk. Yes, one can invest in the stocks of Vietnamese companies, but the transparency is weak at best, GAAP is not followed here, and enforcement weak. If, however you are from America you can invest in funds that have boots on the ground in VN to due the due diligence on the publicly owned companies. Indeed, a foreigner can invest in real estate in the USA. But not in the way an American can. An American can right off the income off of real estate, because of the favorable tax status of RE. However, a non-US citizen must pay taxes of 30% off the top
Bonds, sure one can buy bonds. But again it depends on which country you are a citizen of if it is the best thing for you. If you are Vietnamese then your choices are limited and you would need to buy bonds with an underlying inflation risk. Whereas if you could invest in US bonds, and the stable currency your currency risk would be less.
  I get the feeling that Violetta maybe recruiting. At any rate one needs to be aware of what they are doing when they invest. I wish I could count the number of Americans that move their money here to invest in the HIGH PAYING bonds of Vietnam at 6 or 7% yield. But the true yield is inline with true yield in America or any other country. It is inflation that is the equalizer. When you have 5% inflation true yield become 2%

I think people are saying be careful, not too many saying you cant buy here, you can.

I couldn't have summarized it any better colinoscapee   :top:

I think that goes w/o saying. If course, one can, in some ways invest here. But the wisdom maybe flawed. I am not even addressing the gegakuty of investing in VN. Most countries have prohibitions against some forms of investment. And here in VN it seems even the legality changes with the wind. This is why so many multinationals do not want to invest here directly. To invest where there is little or no transparency is a huge risk in and of itself. Couple that with the cheat anybody mentality and you might want to rethink things. As I say in all situation here "guard your money".

And here in VN it seems even the legality changes with the wind.

This seems the norm in some (or most) asian countries!  :/

As I say in all situation here "guard your money".

:top:  :top:

It maybe the norm in Asia, and I do not disagree. But this is precisely why investing in countries that do not have a sound legal foundation make such an investment quite risky. Yes, you can buy mutual funds tatcinvest in such countries. But they have their own people go into these companies and investigate their account IAW GAPP accounting standards ( in the case if publicly held companies". Tge young lady he posted to this thread was asserting the fact that one should never let anyone convince you you CAN'T.  I certainly am not trying to say you can't.  If it blows your skirt up and you get a cool feeling, then go for it. In this forum Aline there seem to be many who have made millions investing in VN.

If it blows your skirt up and you get a cool feeling, then go for it.

:lol:  :lol:

In this forum Aline there seem to be many who have made millions investing in VN.

Yep - I agree with you on this -  I saw for my self how wealthy some Districts are, the type of luxury cars that are driven out there. More over, the high end shops there i thought were only visible in Europe... So it gave me a clue as to how some took these opportunities and made it.   :)   :one

Well I was not really speaking of those areas of town. I was referring to the forum members who have made millions here. Indeed, those that got in in the ground floor of the transition to capitalizim made a killing. I know many locals who have done very well. I am happy for them. But I am quite dubious how well I would do as a Westerner taking my complaint to the People's Comittee in a dispute with a local over a business contract. There are THEM and ther are US. Two very different distinction in any country when it comes to investing. Even in my country.
   I know a very wealthy man that got his start in the drug trade here and switched that over to a very lucrative thing with his fingers in a little bit of everything. Me I do not know how to operate well in the "coffee money " arena where you pay to play. I would probably end up playing in a VNese prison yard or be 6 foot under.

Business is not my forte so I have nothing intelligent to contribute to the conversation, but these are what I see in my extended family:

A shirttail relative has her fingers in several pies in Vietnam -- stocks and bonds, two residential/rental buildings, a gold business (not jewelry store), and a license to run the lotto (with managers and employees working for her.)  She's a Vietnamese-American who has been splitting the year between two countries for more than two decades.  None of the businesses is under her name.  She deals with the day-to-day and makes all decisions concerning the properties and businesses, but has a business partner-on-paper for whenever the occasion arises.

My niece owns 2 rental properties in Vung Tau, one huge combination of gentleman farm and private homes in Long Thanh, and a commercial service in Saigon.  Again, nothing is under her name (they're in her sibling's name) even though she deals with the local officials face-to-face and they all know the business and real estate are hers.  She's a Vietnamese-German who has been living full time in the country for the last 10+ years.

OTOH, all of the dozen or more relatives who are Vietnamese (no hyphenate) have their real estate and businesses in their own names.

What does that mean?  I'm not certain, though I have a vague feeling that it's more problematic for people who are not "true" Vietnamese (foreigners who married Vietnamese, Overseas Vietnamese, and Vietnamese with hyphenate) to invest in the economy in concrete methods.

Sometimes it's more luck than judgement. My girlfriend's sister is one of those women with 4 cars and 4 properties. She started a company a few years ago supplying refrigeration gas in small bottles just as the locals were starting to buy refrigerators and air conditioning and people were a bit clumsy moving them around, installing them and maintaining them. Obviously things have gone ballistic since then.

I think there are different category of family type here!  We are from UK moving from one country to another for the last 15 years, buying properties in UEA, HK, UK and here now.  There has not problem so far, touchwood.  as long as you do it properly even how negative one paints of the picture of Vietnam.  We have worked hard as anyone do as expatriates.  We now owned a condominium in District 2 next to future Metro line.  All of our neighbours are Vietnamese and expat middle class (if I offend people, do apologise in advance, I know UK people do feel offend by addressing them in .. class, to me, I fin it is compliment).  These group of people work hard and play hard.  They are business people opening factories, banking, fund management, engineer .. There is no difference from other people where I live (starting Mauritius, Romania ...  to N Cyprus and now here).   We all have no problem of having our property in our name (no need to join own with Vietnamese) with the Sales Purchase Agreement in hand (SPA).  If we have problem, we can deal directly but we have face no problem so far.  I know friend who is dealing with local government daily as she work in a big Fund Management  to invest land and what institutional fund do.  I understand that most of the time you need to do extra thing in order to deal with business properly.  You are working at the frontier market, so it has pro and cons.  It happens in every country when one is in infantry , same as US, UK when it was in that stage of development.  If you respect culture, do things as you are followed , use your common sense where you educated by your own country, I do not see a big problem which will get you into trouble.  It is my personal comment.  C

@ Charlottesc,
   Report back in 10 years and let us know how your dream investment went in Vietnam. Perhaps you would enjoy the recent thread " I am going to tell you something you may not want to know" or something to that affect. Have you calculated the return on your investment? What would the cap rate be if you moved and rented out your condo?

Dearest Diazo
I looked back my property 10 years from where we bought our Dubai property, no regret.  You know how Emarati treated us no matter you are white (educated, expetise in field), yellow and any favourite color you could think of !!)you lived and invested there. 
I do not think of getting money back in very short term, we do not flip property in a very short term, we do not speak ill of people when there was not a whole picture of one country you suppose to respect and suppose  learn to tolerate. (that is your modern education where you got from suppose to teach you)
You do not think of getting out the money from the country where you think you just thought of getting their money as it is quick and it is not your own country. 
Vietnam government is still doing thing to help; please give some patience,  Samsung is here to produce Galaxy phone, many big company do help to train a big group of Vietnames IT qualified young student who face sexist issue to get into IT industry or even get into university to study IT.  US friend who helps to get another group of female Vietnamese IT potential students and coordinate with RMIT to get train them and send to study in US for one year and bring them to Vietnam to contribute to this great potential city (be patient) 

I know GDP here is slowing down around 5% and other figures if you are interested to know more. 
C xxx

@ Charlottesc
   The thread is about INVESTING in Vietnam. Not patience, understanding, enapathy etc. You are correct on the latter. Perhaps comments for another thread. But the things you say have Littleton do with investing. Perhaps in time investing here can offer some modicum of legal protection and transparency and the rule of Common Law. They are not yet there yet so this IS a treacherous place to INVEST.

Well respected  I will meet with my friend to dig out more data, procedure of .. she works for fund management where the company listed in UK Stock Exchange. Get to work now. Good day. C

New topic

Expatriate health insurance in Saigon

Free advice and quotation service to choose an expat health insurance in Saigon

Moving to Saigon

Find tips from professionals about moving to Saigon

Travel insurance in Saigon

Enjoy stress-free travel to Saigon

Flights to Saigon

Find the best prices for your flight tickets to Saigon

2 million members!

Watch later