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One of the fastest growing world economies
After China, economists predict that Vietnam will lead GDP growth in the Asian region. According to the ‘Foresight 2020’ report released by the Economist Intelligence Unit (an independent provider of economic data analysis), Vietnam should maintain a high GDP growth rate in 2006-2020 at 5.4% on the average and 7% average p.a. for the next 4 years. Also, in ADB’s, “Asian Development Outlook 2006 Report”, forecasts that Vietnam is expected to record GDP growth at 7.8 per cent and 8 per cent for 2006 and 2007, and experience an inflation rate of 6 and 5 per cent respectively.
The impetus for the country’s higher growth trajectory comes from a steady transition to a market-based system and closer integration with the global economy according to the report.
(www.adb.org/Documents/Books/ADO/2006/vie.asp)
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Growing young & well educated population with rising income
Vietnam is a nation excepted to grow to 90 million people by 2010, of which the highest proportion of the population is under 40 years of age.
Education is mandatory as is English language schooling. Present average incomes are approx US$600/month per capita, although in reality, incomes are far greater. A recent survey by the National Economics University places income at around US$880/month, taking into account secret commissions, bonuses/incentives and side businesses.
Spending on luxury consumables is on the rise with the younger demographic absorbed by the consumer bug and being eager to “keep up appearances” |
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Laws conforming to international standards – high growth expected after WTO
The ADB report (mentioned above) basis its growth projections on Vietnam achieving WTO accession and opening up the laws to allow foreign competition.
During 2006 there have been several new laws introduced, notably the Investment Law and Law on Enterprise. In summary, these allow equitable ownership rights for foreign interests in Vietnamese companies and a level playing field for imports and trade. |
Low penetration of foreign competitors – opportunity remains for “the early bird”
The number of international property developers and investors in Vietnam is still extremely limited, compared to cities like Bangkok and Beijing. Yet the ingredients are similar and the opportunity is arguably greater.
It is still not straight-forward to develop property in Vietnam due to changing regulations and uncertainty, however the rewards outweigh the risk if you know what you are doing. |
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One of the best coastlines in the world
Simply glance at the country map - it is not hard to work this one out. Vietnam enjoys a 3300 kilometre long coastline, much of which comprises untouched sandy beaches and forest hinterlands. Tourism is ripe for the country, however is held back by infrastructure limitations and Visa restrictions, making the destination arguably less competitive than neighbouring countries such as Thailand or Malaysia at this time.
Notwithstanding, the natural beauty of the scenery can not be denied and land remains a finite resource. The problems are being attended to and the situiation is improving on all fronts.
Property prices have compounded again and again over recent years, with some prime real estate in the major cities more expensive per m2 than in central London.
Opportunity remains to secure prime land at very reasonable prices, if you know where and how to prospect. |
Personal treats
Whilst Hanoi has been rated as the second most expensive city for expatriates in Asia, they forgot to mention that:
Specifically for the guys-
- $0.30 beers and Gold Label JW is less than $30
- international buffets start from $10 including wine & seafood
- 30 minute head massage is only US$2.00
- 1 hour foot massage is only US$3.50
- Easy-rider lifestyle is available (if you want it)
Specifically for the gals:-
- $10 for 2 hour spa treatment
- $10 for 1 hour body massage
- big brand name clothes from $3.00
- European leather shoe exports from $10
- Champagne is cheaper here than in France
- Sashumi is less than $5.00
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