The 2024 Land Law and the revised Real Estate Business Law are expanding market access space, increasing trust and creating a clearer legal basis for overseas Vietnamese when investing in real estate in Vietnam.
According to Mr. Matthew Powell, Director of Savills Hanoi, the new regulations in the 2024 Land Law and the revised Real Estate Business Law have brought important changes to overseas Vietnamese. These adjustments help the market operate more transparently, while allowing overseas Vietnamese to access and exercise real estate transaction rights equivalent to those of Vietnamese people living in the country.
Mr. Powell said that a clear legal framework is a key factor in helping to increase investor confidence, especially in the context that many Vietnamese people abroad still maintain family, economic and frequent travel connections between Vietnam and the host country. Having a transparent legal basis helps investors feel more confident when making long-term decisions, while limiting risks in the transaction process.
Besides legal factors, political stability continues to be considered an important foundation for building sustainable confidence for Vietnamese investors abroad. Along with that, FDI capital flows are maintained positively, adjustments in investment policies and the promotion of transport infrastructure development, from roads and railways to airport systems, are opening up more new development areas nationwide.
According to Mr. Powell, it is not a single regulation that creates confidence for the market, but a combination of many factors that are simultaneously improving the investment environment, in which real estate plays an important role.
Savills experts analyze that when investing in real estate in Vietnam, most Vietnamese people abroad tend to prioritize the apartment segment. Explaining this trend, Mr. Powell said that flexible payment mechanisms are a major factor.
Apartments are often sold in the form of forming in the future, with payment schedules extended in stages, more suitable than buying real estate requiring one-time payment with a large value. In many cases, investors also offer financial support policies, helping to reduce cash flow pressure for investors.
In addition, many overseas Vietnamese investors are somewhat familiar with large investors, especially businesses with international elements, thereby creating more confidence when participating in the market. Apartments are therefore often considered a suitable initial approach for investors to "test the market" before expanding investment scale to other segments.
According to Savills' assessment, the criteria for choosing real estate for Vietnamese people abroad are generally not much different from other investor groups. Factors considered include project location, regional infrastructure, potential cost increase, rental capacity and exploitation yield.
For investors who do not live in Vietnam, real estate is often associated with the goal of investment or leasing, so operational capacity, level of attracting tenants and transparency in the entire investment process are put first.
In addition to major cities such as Ho Chi Minh City and Hanoi, some stable developed markets such as Da Nang are also being assessed as suitable destinations for foreign investors, including overseas Vietnamese. These localities benefit from relatively clear planning, synchronous infrastructure and product structure that is easy to assess exploitation efficiency.
