Rationale for investing in Vietnam
 
 
 
 
Strong economic fundamentals: An 8.2% real GDP growth in 2006 and a growth of at least 7% annually during the period from 2002 to 2005. Nominal GDP growth for the years 2007 to 2010 is expected to continue to be strong at an annual growth rate of approximately 6%.

Structural reforms: With the stated aim of increasing their efficiency and competitiveness, more than 3,000 state owned enterprises have already been equitised (part-privatised), and a further 1,500 are due to be equitised by 2010.

Strengthening financial system: The Central Bank of Vietnam has created “Strengthen Credit Information Centre” project to assist the government’s reform agenda as the country moves from a centrally-planned economy to a market-oriented economy. The capital markets are developing in Vietnam. Several large firms with international experience wish to establish and manage investment funds to attract both institutional and retail investors.

Growing tourism industry: Viet Nam's tourism industry is set to enjoy an increase of 17% (year- on- year) in foreign arrivals to 2.5 million in 2008, and a 6% rise in domestic holiday-makers to 11 million.

Abundant human resources: With an estimated population of 86 millions in 2008 (median age of 26.4 years), Vietnam is ranked as the 13th most populous country in the world. The literacy rate of Vietnam’s population currently stands at 90%.

Economic stability: Vietnam has been one of the fastest growing economies in Asia over the last five years, averaging growth of 8% a year. The economic boom has lifted many Vietnamese out of poverty, with the official poverty rate in the country falling from 58% in 1993 to 20% in 2004. WTO membership has given Vietnam access to both foreign markets and capital, while making Vietnamese enterprises stronger through increased competition. Despite the current turbulence caused by the world’s financial crisis, Vietnam’s economy is still growing strongly at predicted 6%-7% growth for the period 2008-2009.

Benefits of globalisation: Vietnam became a member of the WTO on 11 January 2007. Vietnam’s export had increased by 174% from 2000 to 2006.

Continuing strong demand in the serviced apartment sectors: From 1996 to 2006, the number of serviced apartment units in Ho Chi Minh City had increased from less than 515 to 2,668. Despite this, occupancy rates continue to increase and are currently at approximately 95%.

Easing of investment restrictions to benefit retail property market: Due to Vietnam’s accession to the WTO and the accompanying lifting of certain foreign investment restrictions in 2009, a number of large retailers are preparing to enter the Vietnamese retail market. There is a large shortage of retail space supply in Ho Chi Minh City.

Effective perpetual land use rights are now achievable: Through the Land Law of 2003 and a number of subsequent laws and decrees (especially Decree 84), the government of Vietnam, in recent years, has moved to clarify and relax the rules regarding the ownership of land by foreign entities.

Infrastructure spending to stimulate property markets: Ho Chi Minh City, Hanoi, and other areas in Vietnam are making significant investments in their infrastructures.
     
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