Viet Nam Residential H1/2021

ECONOMY

The positive economic outlook suggests bright prospects for branded residences. Against other major Asian economies in 2020, Viet Nam led with GDP growth of nearly 3%. This strong performance during the pandemic is complemented by growth forecasts of 7% per annum over the next five years, according to the Ministry of Planning & Investment.In 2020, remittances of US$15.7 billion ranked Viet Nam as the ninth largest globally. Over the last five years between 16% and 20% of these were invested in real estate. 

Branded residence investment became more appealing after moves to ease mortgage rates, raising the prospects of higher capital flows into real estate.

(GRs) of up to 18% per annum for a threeyear period and GRs of 9% to 10% per annum for a ten-year period. GRs are slowly being phased out by the market, however, as they require subsidies from the operation which may be burdensome. Recent projects such as Wyndham Skylake, Fusion Resort & Villas Da Nang, Meliá Ho Tram Phase 2 - The Hamptons, Sun Premier Village The Eden Bay do not offer GR schemes.