As one of the fastest-growing economies in Southeast Asia, Vietnam now has a large community of international investors and expatriates living and working in the country. Multinational corporations such as Nike, Lego, and Samsung, for example, have relocated their operations from China to Vietnam over the past few years. The trend is likely a result of China’s rising manufacturing costs, the trade war with the US, and the zero-COVID policy. Additionally, Vietnam also boasts strong governance, political stability, encouraged and transparent business activities, as well as an impressive GDP forecast of 7.5% for 2022.
Investing in Vietnam?See Our Market-entry Services for Foreign Investors
Vietnam’s growth can also be supported by trade figures, indicating a stunning 435% increase in Vietnam’s overall exports to the US between 2010 and 2020. According to Cushman & Wakefield, the real estate market has also responded to rising manufacturing demand, with industrial rents in Ho Chi Minh City growing by 9.0% in 2019 and 10.6% in 2020. Due to increasing demand from overseas investors, apartment prices have grown by an astounding 90% between 2017 and 2020.
Seeing these numbers, the biggest questions on foreign investors’ mind is probably, “can foreigners buy property in Vietnam?” The rest of the article will answer that in detail, but to be blunt, the answer is yes.
A common misperception is that foreigners and foreign organizations cannot own property in Vietnam. However, that’s the exact opposite of the truth. Even without local residency/nationality, you are fully capable of obtaining real estate. However, there are certain things you should know before buying property in Vietnam, such as the property market, ownership restrictions, real estate foreign ownership certificates, and taxes.
Can foreign investors buy property in Vietnam?
According to the Vietnamese Law on Housing 2014, foreign investors or citizens with adequate finances can buy properties across the country as long as they meet Vietnam’s entry requirements.
There are a few key aspects of the Law on Housing dictating property ownership for international citizens, listed below:
Even if you only have a tourist visa, you can still purchase property.
There is no limit to the number of real estate units you can buy.
However, within a single ward, you can’t own more than 250 residences.
Similarly, within an apartment building, you can only own up to 30% of its units, and up to 10% of a housing development.
Foreigners can own up to 30% of the units in condo buildings but no more than 10% of the properties in a landed property.
You are entitled to a leasehold of 50 years on the land of your property; however, it is renewable.
Foreigners who marry a Vietnamese can get freehold ownership.
Can foreigners buy land in Vietnam?
We’ve just mentioned the leasing of the land your property is built on. Foreigners are not permitted to buy or possess land in the nation, as they are in most other Southeast Asian countries. The land is a communal property of the Vietnamese people, according to the country’s constitution, and is controlled by the state.
Instead, the law enables foreign individuals and businesses to use the land on a lease of up to 50 years. In specific cases, however, it might be valid for 70 or even 99 years. With the possibility of unannounced and often unprecedented changes in regulations, it is critical that you remain vigilant. Lease periods, for example, depend greatly on the current political and social conditions, as well as your own eligibility.
Real estate ownership for expats in Vietnam
A property ownership certificate is an essential first step in acquiring real estate in Vietnam. This document, known colloquially as the Pink Book, expresses your entire ownership of real estate, which can include land and/or properties in Vietnam. The Pink Book is issued by the Ministry of Construction, and you can apply for it via an agent.
Furthermore, under Vietnamese housing legislation, foreigners are only permitted to own up to 30% of a project’s apartments. Regions designated for national defense and security are naturally not available for sale as well. To learn more about the regions designated for national defense and security, contact your local construction authorities.
Traditional Mortgages for foreigners in Vietnam
It’s generally well-known that getting a mortgage in Vietnam as a foreigner is not easy. However, if you want to secure a property loan quickly, you should contact a bank like HSBC, OCB, UOB, or Standard Chartered. If a foreigner has a Vietnamese spouse, they can secure a 15-year loan from OCB for up to 80% of the property value. However, in order to obtain a mortgage, they must also offer collateral. It’s always good advice to check the interest rates, amortization criteria, and repayment period carefully before making a decision to guarantee the best offer for your investment.
Flexible Alternative to Mortgages: Proptech Solutions
Homebase is a Singaporean proptech company that offers rent-to-own real estate financing to Southeast Asian buyers – the region’s only alternative to rigid mortgages. This service essentially provides more innovative, compelling, and empathetic solutions for homebuyers who don’t want to deal with the beauracratic hassles of buying property in Vietnam.
See the Buy with installment program from Homebase, specifically designed for foreigners:
Homebase essentially serves as a co-investor, buying the property with clients who contribute at least a 20% down payment. Then, clients either pay a fixed amount to Homebase each month or choose to buy out the entire company’s share. They can also opt-out of the deal and cash out their savings. Clients have full access to the home and can live in it or rent it out. Contract lengths range from one to ten years.
Suggested Areas to Invest in Property in Vietnam
With over 95 million people, Vietnam is Southeast Asia’s third most populous country, generally, its divided into three areas: north, central, and south:
In the north, you have Hanoi, the beautiful old capital city, in central Vietnam you have Da Nang, the most important economic hub of the central part of the country. And we have the financial engine of the entire country in the south, Ho Chi Minh City, where most large firms establish their headquarters for operations in the country.
Below is a short guide to each city:
Ho Chi Minh City
Formerly known as Saigon, HCMC is now the largest city in Vietnam. As well as being the economic engine of the country, contributing up to 23% of GDP, HCMC is one of the fastest-growing cities in the country, contributing to a real estate boom that should not go unnoticed.
According to the latest data reported by Tuoi Tre News,12,000 completed apartments have been put up for sale in Vietnam in 2022.
The latest prices (2022) are divided into two areas, as reported by Numbeo:
Price per square meter in the city center: 4,639 USD
Price per square meter outside of the city center: 1,958 USD
Hanoi
Hanoi is the cultural and political capital of Vietnam, and attracts a lot of immigration from neighboring provinces, contributing to rapid growth, similar to Ho Chi Minh City. The capital has a population of about 5 Million people, it’s divided into 12 urban areas, 1 district town, and 17 rural areas.
Hanoi is also the city with thehighest human development indexamong Vietnamese cities.According to PwC,from 2008 to 2025, Hanoi will become one of the world’s fastest-growing cities.
In 2022, the average pr
The latest (2022) prices are divided into two areas, as reported by Numbeo:
Price per square meter in the city center: 2,231USD
Price per square meter outside of the city center: 1,271USD
Nha Trang
Located in Khanh Hoa province in the coastal area of central Vietnam, Nha Trang is one of the most important beach resort cities in the country.It’s white-sand beaches and luxury resorts attract large quantities of tourists, especially from Russia and Korea.
The economy of Nha Trang depends heavily ontourism with a strong demand for home purchases from wealthy residents hailing from Hanoi and Ho Chi Minh City. However, due to the economic slump the city witnessed as a result of the pandemic, the prices of property has been lower than pre-pandemic levels.
The latest (2022) prices are divided into two areas, as reported by Numbeo:
Price per square meter in the city center: 1,622USD
Price per square meter outside of the city center: 925USD
Da Nang
Da Nang is thefourth largestcity in Vietnam, and the most important urban center in the center of the country.
In May 2017, a newinternational terminalwas built at Da Nang Airport which is expected to receive 6 million passengers per year.The high-end beachfront hotels and resorts in Da Nang have become the preferred destination for foreign tourists to spend their holidays and leisure.Therefore, the resort property in Da Nang is especially popular among investors.
The latest (2022) prices are divided into two areas, as reported by Numbeo:
Price per square meter in the city center: 1,775USD Price per square meter outside of the city center: 1,109USD
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Two groups of foreign buyers can buy and own properties in Vietnam. First are legal entities, such as foreign investment funds and banks, branches and representative offices of overseas companies established in Vietnam. The second group includes foreigners or overseas nationals with an appropriate entry visa.
One of the most significant risks associated with a property purchase in Vietnam is the financial obligations. These financial obligations can be related to certain fees, land use rights, and change of legislation.
On average, you'll pay just over $2,000 per square meter for a standard apartment in the city. Buying a luxury condo in Ho Chi Minh City often costs upwards of $5,000 per square meter though. Naturally, prices vary based on your condo's location.
In Vietnam, a 50m2 downtown house costs at least around $500,000, sometimes even higher. However, the average income of Vietnamese is just over $3,000 a year. Thus, it will take us more than 160 years-worth of income to purchase a house.
Vietnam is one of the countries with great potential in the real estate industry in Southeast Asia. This is evidenced by the outstanding growth of the real estate market in Vietnam in recent years. This is also the market that is attracting many investors to seek business opportunities.
Unfortunately, foreigners cannot own land in Vietnam. However, you can still purchase other landed properties. It's possible to seek financing outside the country, but the process will take a longer time compared to local services. Not every company provides foreign financial support, either.
Vietnam's property tax is lower than many countries. The country collects only VND1. 7 trillion in taxing non-agriculture land annually. Tax collection from both agriculture land and non-agriculture land accounts for only 0.24% of total tax or 0.03% of GDP, which is "too low," the government said.
You are entitled to a leasehold of 50 years on the land of your property; however, it is renewable. Foreigners who marry a Vietnamese can get freehold ownership.
Cost of Living in Vietnam: $700 to $1,400 per month
How much does it cost to live in Vietnam? $700 on the low end of the range, up to $1,400 for mid-range expats. This averages living costs across many months—you may spend more getting set up, but many expats average $1,000 per month.
A family of four estimated monthly costs are 1,712.4$ (40,216,329.6₫) without rent.A single person estimated monthly costs are 483.3$ (11,351,462.1₫) without rent. Cost of living in Vietnam is, on average, 51.7% lower than in United States. Rent in Vietnam is, on average, 76.0% lower than in United States.
Despite its rather strict regulations, foreigners can buy property in Vietnamese towns and cities that range all different sizes. Many foreign investors choose buying property in Ho Chi Minh City (Saigon) or Hanoi. Most of the rest purchase in beachfront cities and resorts like Nha Trang, Hoi An, and Da Nang.
If you plan to fund your retirement on only Social Security or a small pension, your monthly budget will go far here. Many expats live comfortably in Vietnam on less than $1200 per month. Regardless if your tastes are modest or luxury, your living costs are less than what you would spend in a MCOL city in the US.
While Thailand is still affordable, it tends to be slightly more expensive than Vietnam, with higher prices for accommodation, food, and transportation.
The bottom line is that Vietnam is a very cheap place to live, compared to Western countries. Better still, as an expat in Vietnam, you can expect to earn a high salary if you work in the country's emerging technology and services scene. The average expat salary in Vietnam is around US$78,000/£55,000.
Vietnam jumped 39 steps to become the 62nd best country worldwide for quality of life in 2021, according to a report released by CEOWORLD – the world's leading business and trade magazine.
There is no time limit for how long U.S. citizens may stay overseas. The validity of your Vietnamese visa, which allows you to legally stay in Vietnam, is determined by the Vietnamese government. Lawful Permanent Residents risk losing their status if they are outside the United States for over one year.
While Vietnam does not have a retirement visa, there are several options for individuals who want to retire in Vietnam. Americans can apply for a visa to Vietnam through any Vietnamese embassy and will be approved for either six months or one year but can only stay in the country for three months at a time.
Overseas Vietnamese and Vietnamese in the US can have Dual Citizenship. However, this person must register dual citizenship following the procedure of Vietnamese Law.
Yes, expats pay tax in Vietnam. Individuals working in Vietnam (including foreigners) have to pay personal income tax (PIT) based on their tax residency.
Vietnam banks require you to set up open an personal account and wire transfers by going into the bank. If you buy a property remotely, this option is not for you. If you are in Vietnam, you need to open a personal account in any bank.
Private ownership of land is not permitted in Vietnam and the people hold all ownership rights with the State as the administrator. However, the laws of Vietnam allow ownership of a right to use land. This right is called the Land Use Right (“LUR”).
A permanent residence card (PRC) is a paper granted by immigration authorities to foreigners who are allowed to permanently reside in Vietnam and have validity longer than a Visa. Conditions and dossiers for the application of permanent residence cards for foreigners in Vietnam are flexible depend cases.
A tourist visa is normally valid for one entry of up to 30 days, although it is also possible to apply for a 90-day multiple-entry visa for Vietnam. Citizens from visa-waivered countries are able to stay in Vietnam visa-free for between 14 days and one month, depending on the country.
How to qualify for property loans in Vietnam? Foreign buyers are allowed to own homes in Vietnam, but the lending requirements are significantly tougher than for local buyers: You must be a Vietnamese, Viet Kieu, or a foreigner married to a Vietnamese. You must be under the age of 65 at the end of the loan period.
The average wealth of people in the top 5% of the richest population in 2021 is 316,658 USD (equivalent to 7.8 billion VND), top 10% richest is 181,132 USD (equivalent to 4.1 billion VND). Meanwhile, the average wealth of the poorest 50% of the population is only 3,429 USD (nearly 78 million VND).
In the northern city of Hanoi, you can find many teachers. There are also American expats who fought in the war sprinkled all over the country. There are an estimated 100,000 expats living overseas in Vietnam.
The average salary in Vietnam is 17.2 million Vietnamese Dong (VND) per month or 733 USD/month (according to the exchange rates in May 2023) — which is significantly lower than the average salaries in countries like the USA or UK.
The price range for hatchbacks is 120,000 – 500,000, mid-size sedans range from 600,000 – 12,00,000 and luxury sedans range from 14,00,000 – 45,00,000.
Most expats live in the major cities of Hanoi and Ho Chi Minh City, which was known as Saigon when it was the South Vietnamese capital before post-war reunification. They are also found in major centres such as Danang, Da Lat, Nha Trang and Vung Tau.
A farmhouse-style house can be easily recognized through the color, light, rustic look of the furniture, and often has a long, wide hallway and eaves in front of the house. Currently, in Vietnam, the farmhouse style is chosen by many people to decorate the house and interior.
Since January 1, 2021, the retirement age of employees under ordinary working conditions are 60 years 3 months for male employees and 55 years 4 months for female employees; and the age increases by 3 months for male employees each successive year until he reaches 62 in 2028 and increases by 4 months for female ...
Prefer a beach holiday: Thailand has better beaches than Vietnam and offers various choices. Plan to celebrate a honeymoon or anniversary: Thailand is more suitable for a romantic vibe and provides more opportunities for some special experiences like a dinner cruise, couples spa, etc.
Of course, being in Southeast Asia, Vietnam is an affordable country to visit, in comparison to countries in North America and Europe, so your Dong will take you far. Yep, that's the name of the currency here: the Vietnamese Dong, and you'll find yourself with plenty of opportunity to make jokes about it.
Budget. Like in most Asian countries, spending around USD180-250 per day per person (including hotels) is enough for a wonderful experience including a private car and guide in Vietnam. The price of traveling in Cambodia is higher than Vietnam by USD5-20 per day.
Avoid hugging, holding hands, and especially kissing in public. Even touching a member of the opposite sex is looked down upon. Modesty: It is important to keep your body covered. Avoid overly short shorts and revealing shirts.
'” Ask any American at one of the many expat bars in Ho Chi Minh City, and the answer will be simple: more jobs, cheap living and a once-in-a-lifetime adventure overseas.
The primary social issues in Vietnam are rural and child poverty. Vietnam scores 37.6 in the Gini coefficient index, with the top 10% accounting for 30.2% of the nation's income and the bottom 10% receiving 3.2%.
Vietnam's culture demands that you observe certain rules, although the Vietnamese are generally forgiving of unintentional faux pas and very welcoming to foreign visitors. Generally, Vietnamese people are very appreciative if they see you knowing and trying to abide by the customs.
Vietnam is now considered to be a potential ally of the United States, especially in the geopolitical context of the territorial disputes in the South China Sea and in the containment of Chinese expansionism.
See our first time guide to Vietnam for more guides and tips. Overall, Vietnam is considered a safe country for tourists. While it is always important to be cautious and aware of your surroundings, Vietnam is a wonderful destination that offers a wealth of cultural, scenic, and culinary experiences.
At present, it ranks 160th out of 191 countries on the World Health Organization's list of the most efficient healthcare systems. The Lancet is more optimistic, awarding Vietnam's healthcare system 60 points out of 100.
Vietnam's real estate sector had been through the ringer and there was no sign it would abate anytime soon. In the first two months of 2023, a total of 235 real estate firms went out of business, an increase of over 20 percent compared to the first two months of 2022, according to the General Statistics Office.
In general, Vietnam is a safe country. Violent crimes and terrorist threats are rather rare. However, foreigners are often the victim of pick pocketing and other petty crimes.
Complicated legal procedures, expensive costs, and general lack of management, supply, or infrastructure, make many domestic and foreign investors feel 'afraid' when doing business in Vietnam.
Pursuant to the report on national risk assessment on money laundering and terrorism financing conducted by the Vietnamese authority for the period of 2012-2017, the risk of money laundering in Vietnam is assessed at “medium high” (trung bình cao).
Many retirees choose to live in beach towns such as Nha Trang or Da Nang. It's important to note that whether you choose to live in one of these cities or a larger city like Hanoi, your cost of living and housing costs will vary.
Changing money elsewhere is illegal and while higher rate may be on offer you may risk losing your money. Credit cards are widely accepted but, in rural areas particularly, you should carry cash as a back-up. It may be difficult to cash travellers' cheques. ATMs are widely available in major cities and tourist areas.
The list of the six richest persons in Vietnam includes Pham Nhat Vuong with 7.5 billion USD, followed by Tran Dinh Long 3.1 billion USD, Ha Hung Anh 2.6 billion USD, Nguyen Thi Phuong Thao 2.5 billion USD, Nguyen Dang Quang 2.2 billion USD, and Tran Ba Duong 1.6 billion USD.
Minimum Registered Capital: There are no requirements on foreign investment in Vietnam amount and registered capital in Vietnam. But registered capital can not less than 30% of the total investment amount. The registered capital of encouraged / large investment project can be reduced to 20%.
Corruption in Vietnam is pervasive and widespread, due to weak legal infrastructure, financial unpredictability, and conflicting and negative bureaucratic decision-making.
Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.
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