As Singapore’s property market begins to slow, many Singaporean property investors are beginning to cast their eyes over to Vietnam as the next likely boom market.
Ha Noi Opera House
Vietnam’s political issues seem to be well in the past now and the country has experienced steady, stable growth for the past few years. Recent statistics suggest demand heavily outstrips supply at present, as the Vietnamese standard of living is rising, whereas the property supply is low. Apartment and office rentals are experiencing an average of 95% occupancy, suggesting room for expansion.
CB Richard Ellis’ recent report states that Hanoi has only 4,934 hotel rooms rated at three to five stars, which is extremely low when compared to Bangkok at over 20,000.
Singapore currently ranks second amongst foreign investors in Viet Nam and Dang Dung, Vice President of Young Entrepreneurs, said that almost all Singaporean projects are invested in multi-national groups. Smaller businesses have yet to make the move into Viet Nam, but are expected to enter the market soon. Vietnam is becoming a major foreign investors’ destination and attracted a record foreign direct investment (FDI) of more than US$20.3 billion, a year-on-year increase of about 70 percent.
In 2007, Vietnam achieved an economic growth rate of 8.48%, the highest rate of the past 10 years, with GPD per capita standing at US$833.
Besides, pledged official development assistance (ODA) from foreign donors hit US$5.4 billion in 2007, 20% higher than 2006. 2007 marked the first time Vietnam’s ODA disbursement surpassed its plan of US$ 2 billion. It is certain foreign investors’ trust in Vietnam’s investment climate is rising.