Vietnam » Market Report

The market report of Vietnam is showing positive signs of improvement which is reflected in the fast GDP growth rate. During the time period of 2003 to 2006 Vietnam showed an average growth rate of 7%. The growth in the Real Estate Sector of Vietnam was withheld for a long time due to government’s policy regarding the land laws. The Vietnamese Government follows a communist agenda which does not allow possession of the land. The land could only be used for the construction purposes and all the rights of the land stays with the state.

During the last couple of years, Vietnam saw a mad Real Estate Boom in the country caused by various factors. Before the year 2003 foreigners could only rent a property for their residency period in the country. But now with the government’s support, some leading real estate agencies in Vietnam has introduced schemes where leases up to 50 years could be issued to the foreigners. This fifty years lease gives almost all the rights of possession of the land to the foreigners which also include the right to sub-lease the property.

Another factor contributing to Vietnam’s Developing and thriving Market is the inflow of the foreign direct investment. The expansion of Vietnam’s market is made possible by the radical economic reforms carried out by the Vietnamese government.  A decade ago a solely foreign owned company was not entertained in Vietnam. In order to open a business in Vietnam, the foreign investor had either to make a joint venture with a local partner or had to sign strictly regulated contracts by the government. In today’s Vietnam, foreign investors are given the privilege to run 100% foreign based businesses.
 
Vietnam’s Market is enjoying the privilege of attracting hoards of foreign investors because of various incentives by the government as well as the natural conditions which makes Vietnam an ideal place to invest. Vietnam is a place full of natural beauty and natural resources. The natural resources of Vietnam includes Phosphates, coal, manganese, bauxite, chromate, offshore oil and gas deposits, forests, hydropower. These resources are creating wonderful vistas for the foreign investors in the country. The mining industry is taking its roots in the country and these natural resources are also used for various industrial products.

Vietnam’s Market is also becoming an ideal market for the foreign investors because of the availability of a large number of young work-force, willing to work at much lower wages as compares to other Asian economies. According to a survey, a semi-skilled laborer in Vietnam only cost 73$ a month, while on the other hand, in Thailand it would cost 375$ to employ a worker for a month.