Vietnam appealing to foreign investors

Vietnam is becoming more appealing to foreign investors and was recently ranked fourth in the world of emerging global real estate markets by the Association of Foreign Investors in Real Estate. This influential group collectively holds more than $627 billion of property throughout the world. While Brazil, China and India were still in the top three places Vietnam was a surprise fourth having previously been unranked in 2010.

Much of the increased appeal is thought to be due to the rapid growth of the property market and Vietnams open door policy to foreign investors. The second largest tower in Asia is due to be built this year in the capital of Hanoi and will cost $1.2 billion, and new construction is beginning to take place throughout the country. Vietnam has enjoyed strong economic growth and aims to become an industrialised country within the next 10 years.

However the governing Communist Party realises the need to restructure the economy and to speed up the growth which started some 25 years ago. Some of these state owned enterprises have grown too fast and are suffering from poor infrastructure and an unskilled workforce which is something that has been recognised by the governing party and which they are determined to address.

These factors look unlikely to deter foreign investors who view the economy as having recovered well from the global recession. Urban centres are likely to increase and to attract overseas companies which will aid the current rapid growth of middle-class citizens who are most likely to want to spend their new found wealth on new homes.