Ultimate guide to invest in Ho Chi Minh City, Vietnam
In the past few decades, most of the people from the different parts of the world start investing in the Vietnam properties. Thus, Vietnam had the average over 7 percent annual GDP growth throughout 90s. As one of the Asia’s most promising market for the foreign investment, Vietnam property is one and only the best way to gain more profits. In the field of manufacturing, Vietnam has become most competitive for all other countries. As compared to some other countries, most of the international investors now would like to make their investment in the Vietnam properties with this reason.
Since the Vietnam is 3rd most populous and fast growing country in the Southeast Asia, many foreign investors are now looking towards it. In the earlier days, there were only the fewer options when you are investing in the Vietnam. But after 2015, the growth of the foreign investment in this nation is rapidly increasing from all countries of the world. In order to make everything convenient for the investors, the Vietnamese government relaxed a property ownership rules for them. Any person with the residence visa or 3 month tourist in Vietnam can own a land on the 50 years lease or renewable.
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Why investing in Ho Chi Minh City?
Even though there are so many numbers of cities available in the Vietnam country to make your investment from any foreign country, it is highly crucial to consider investing in the Ho Chi Minh properties. This is one of the largest cities in this country and also fastest growing city in Asia. There are some of the significant reasons why all the foreign investors are choosing to invest in Vietnam. The following are some of the important factors of considering Vietnam for the property investments. They include,
First of all, demographic is a favourite of the Vietnam country. Due to this, the prices of the real estate properties in the centre of all the major cities can be utilized by the urbanization.
Next important thing is that it is one of the fast growing countries in the world. The economy of the Vietnam already expanded by over 6 % in the year 2016. Thus, investing on the Vietnam properties has now become the new trend among the several numbers of people. If you are living in Singapore, it is really great to invest in the Ho Chi Minh properties in Vietnam.
While investing in the Vietnam properties, everyone should have to read out the foreign property ownership laws of this country. It will be great to find a right type of property based on your requirements and also avoid unnecessary inconvenience. If you are a beginner and first time to buy a Vietnam property, you will be only allowed to lease a land there. It is the same rule for both the foreigners and local from the same country. When the lease period has expired, there is a possible to extend the lease time if you prefer.
There are some other two restrictions for the foreign buyers that you can only own up to 30 % of the single condominium building units and also only up to 250 houses in any of the single administrative ward. But these two rules are not applicable for the overseas Vietnamese.
Step by step guide to invest in Vietnam property:
If you are investing in the Vietnam properties or starting a new business there, it will surely give you more money earnings. Before you are going to invest in the properties of Ho Chi Minh City in Vietnam, first of all you should have to understand the key regulations for the foreign investments. They include,
- The foreign investors can able to buy the Vietnam properties by only possessing your tourist visa.
- There is not necessary to give the cap to the amount of the properties you are going to buy.
- The foreign investors can’t able to own a land. Instead, it can be owned by the Vietnamese people but governed by their living state.
- They are highly restricted to purchase a maximum of 30 % of the condominium units and can’t own more than 10 % of the existing properties in the landed project.
- They can only purchase 250 of the houses in the given division or ward.
The landed property in the Vietnam country can be terraced houses, semi detached houses, detached houses or strata landed houses. All these restrictions are not applicable for the foreigners to own a land and you should have to set up the leasehold agreement.
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Reasons to invest in Ho Chi Minh City:
Most of the people from Singapore would often like to invest their money on the property purchases. If you are a lover of foreign investment, it is better investing on the Ho Chi Minh City properties in Vietnam. Though there are so many countries, states and cities available in the world, there are huge specific reasons available for this investment. The following are such reasons why most of the people from Singapore would often like to invest their money on the land and other real estate properties in Ho Chi Minh City. They include,
Strategic location – Ho Chi Minh City has now become a heart of all types of the economic activities in the country. For the people coming there for the first time, the non-stop traffic, different city life, abundances of banks, offices, shopping centres, stores and people can easily make you feel exciting and also young. It is the main strategic location and fastest growing city in the world. In the investment market of the Vietnam, there are actually more than 600 million people available not only from the Singapore but from the different parts of the world. Those who are all from Singapore and would like to invest in the Vietnam properties, everyone should have to look at the property investment specifically in the Ho Chi Minh City.
An economic hub – Ho Chi Minh City is called as the economic hub and it only makes more than 50 % of the national economic capacity. This city alone contributes 20 % of the GDP of Vietnam country. With all these reasons, most of the foreigners would often like to invest on the Vietnam properties. The biggest international investors in this city usually come from the Singapore, Hong Kong, Japan, China and B.V.I. Those who are all investing in such properties can able to earn extensive amounts of return on investment.
History of great economic activities – Whenever the new investors are looking back to the economic history of the Ho Chi Minh City back to the centuries ago, it has always been booming with all the foreign trading activities. A lot of local residents and also foreigners from Singapore and all other popular countries would often like to make their foreign investment on this city only. Similarly, doing business in this city is completely straightforward and everyone can able to earn more profits with it.
Thriving local market – Ho Chi Minh City has over 8 million people population and it is more than 10 % of the total Vietnamese population. Thus, it has the huge local market which is absolutely potential to make any type of business investment or real estate property investment a profitable one. This city is as well as the main entry point of the several numbers of the international brands. Most of the Vietnam based international brands are only from the foreign investors and they got huge success due to its thriving local market. If you are starting a new business or making investment in the Vietnam properties, you can surely be successful to earn huge profits.
Well qualified human resources – For all kinds of business investments, you can find the well qualified and hard working human resources from this nation. The foreign investors can find more than 70 % of the trained labours there to hire for your commercial regions. Ho Chi Minh city in Vietnam has the most comprehensive and modern educational system with the hundreds of primary schools, kindergartens, secondary schools and high schools which can able to accommodate up to 1.3 million children. Along with the school education, they are also giving the proper and regular training towards the business factors. Thus, nearly 70 to 80 % of the Vietnamese are trained labours who can able to do any kind of work for our companies.
Friendly investment environment in Ho Chi Minh:
Ho Chi Minh City in fact has a unique business start up culture with the greatest investment environment along with the strong business community. This city is always suitable for your foreign investment within only a minimum amount of capital investment. By this way, there is the fastest growth in the number of businesses started every year in this city. The government of this town has implanted different investment programs in order to facilitate the various investment processes. ISO 9000 standards are actually applied to the public administrative procedures. Most of the procedures such as customs declaration, business registration and also clearance can be currently done on the web platform.
The government as well as holds the regular dialogues with the foreign and domestic investors in order to answer the inquiry and help all of them to solve these problems. There is an Investment and Trade Promotion Center (ITPC) and also the Department of Planning and Investment which are the contact points for all the foreign investors from Singapore or anywhere to setup your business in Ho Chi Minh City. Modern infrastructure is another main reason why most of the people consider investing on the Ho Chi Minh Vietnam properties. All the foreign investors can able to gain more benefits from this highly modern and comprehensive infrastructure system in Vietnam including the telecommunication and transportation systems.
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Important things to consider while investing in the Ho Chi Minh City:
Property taxes in Vietnam:
When the Vietnam properties are transferring from the actual Vietnamese hand to the foreigner’s hand, there will be the payable fees by the buyers. These fees are known as taxes and there is actually 6 % Value Added Tax (VAT) in addition to the property registration fee which is worth about 0.05 % of the original property value.
If you want to perfectly calculate the property tax in Vietnam, you can make use of the following formula such as 10% + (10% of 10%) [VAT] = 11% every 6 months until 50% reached. The remaining 50% tax for the property will be calculated by the 50% + (10% of 50%) [VAT] = 55% to get its real value. For the six months, the following will be the tax amount for your Vietnam property such as,
1st Month 6 – 11%
2nd Month 12 – 11%
3rd Month 18 – 11%
4th Month 24 – 11%
5th Month 30 – 11%
6th Month 36 – 11%
The amount of tax will be 55% for 6 months and total – 100% + 10% Tax for your property.
When it comes to the sinking fund, it will be one time payment of 2 % for the buyers. Instead of buying the property, you can also rent it but you have to pay tax even for the renting Vietnam property. The rental tax will be about 10 % for the property owners.
If any profit or income is made by the Vietnamese, there is also the smaller amount of capital gains tax of about 0.15 % on that specific amount or profit. When it comes to the rental income which is paid at the normal flat income tax rate of the Vietnam is about 20 %. If you own a land, there will also be the land tax to be paid about 0.03 % to 0.15 % of the actual value of your property. But all these kinds of taxes are also rarely paid by any person in practice.
Is buying a property in Ho Chi Minh, Vietnam safe?
Vietnam country usually has the well documented land registry and also its government keeps a very good track record of the plots in all the fast growing and major cities like Ho Chi Minh. Whether you are willing to buy a property or land in the rural area or the main city area, there are no problems and everything will be safe for you. The issues coming from the sellers or government are only lesser than some other countries.
Before making a right decision on the purchase of your Vietnam property, first of all everyone should have to check out the originality and reputation of the seller. At the same time, it is your responsibility to find the previous history of your land or property through the registration check before buying it. There are so many numbers of the well established companies available to offer you a list of projects which are lands or the properties under construction to buy in the Vietnam. If you are looking at the online platform now, you can able to find a variety of the properties in the Ho Chi Minh City region at the various prices.
Process of property purchase in the current Vietnam market:
Before you have made a decision to invest in the Vietnam country, first of all you should have to understand the essential process of the property purchase and also the current market value in the Vietnam. Any buyer doesn’t need to give any unknown fees during the Vietnam property purchases. First of all, it is better looking at the list of properties in the initial process and gives payment for your property. In the Ho Chi Minh City, Vietnam, the local buyers are giving the payment with the real gold because of the volatility in VND (Vietnamese Dong).
But the foreign investors are not allowed to use the gold for your property payments and you should only give the real Vietnamese money when you are going to purchase any land or other residential property there. You can buy any property and there are some of the special properties available for the foreigners. Everyone can look at the different types of properties which are especially available for the properties and choose the best one among them. At the same time, you can buy one or more properties as per your requirements without risk.
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Rules for the foreigners to buy a property in Vietnam:
Ownership of housing in Vietnam country for the foreigners usually remains greatly possible and you will have the long term lease structure at the beginning. According to the Vietnamese housing law, there are some restrictions to buy a property in Vietnam cities. If you are willing to purchase any land or housing property, there are some of the areas in centre of the city especially allotted for the foreign investments. Such areas are really very sensitive to the public security and national defence. The investors from Singapore or some other countries should have to be very careful in choosing a right property by understanding the rules of the Vietnam. There is a possibility to buy a land, housing or commercial property of the country. But if you are a first time buyer of the Vietnamese properties, you should have to understand the following rules.
- For the beginners, the land property can only be leased in Ho Chi Minh city, Vietnam. It is not for this city only but this rule is applicable for the entire country. There is a 50 years long term lease basis for both the houses and other commercial structure too.
- If you require, there is also an option to extend your lease after it gets expired.
- There are two restrictions for the foreign buyers and based on them you can only purchase up to 30 % of the units in the single condo or condominium building. The next one is that only up to 250 houses in a specific administrative ward might be owned by the foreigners. But these limits are not applicable for the foreign Vietnamese.
Before buying a property in Ho Chi Minh City, you should be very careful in noticing the current property laws, rules and restrictions for picking a right one for you.
If you are looking for buying the new property in Ho Chi Minh City, there is a new property or apartment for sale launched at the district 4. It is basically the prime condo for sale. The following are the essential property details.
- Location – 01, Ton That Thuyet Road in District 4, Ho Chi Minh City in Vietnam.
- Tenure – It is the freehold property for the local Vietnamese and the foreigners can get the 50 years long term lease whether you are from anywhere of the world.
- Developer – Viet Hung Phu real estate commercial investment joint stock Company that owned 100 % subsidiary of this CapitaLand limited.
- Number of units – In this apartment, totally there are 482 units available to purchase.
- Land area – It is totally estimated about 1.4 ha or 14,470 sqm.
- Number of towers –
- Number of floors – 23
CapitaLand is the reputable Singapore developer invested in the De La Sol Vietnam. If you would like to buy any unit from this apartment, first of all you should give a request to the developer through the call or SMS or Whatsapp to the given toll free number. There is also one email id to send your request for booking a specific unit in this apartment. In the initial stage, you can register for the showroom visit first and then you can go for the purchase. CapitaLand property has now become the heartbeat of the Ho Chi Minh City and many foreigners especially from the Singapore are willing to book the units from this apartment. It is the luxurious residential development area which has full of modern amenities for everyone. According to the energy, vibrancy and also dynamic qualities of the music, this place is a very good and suitable one to live in with all the active facilities and also the Instagram worthy surroundings.
Everyone who wants to buy a property in this apartment can surely able to get the young and vibrant lifestyle. De La Sol is known for the summer residences and it introduces the dual key apartments for the very first time in the Ho Chi Minh City. It is really great to have the vibrant and young rental market especially in the District 4 and also impress so many numbers of the potential investors from the different parts of the world. It is considered to be the first luxury condominium developed by the leading Singapore developer known as CapitaLand in HCMC. This De La Sol is also the 11th residential development apartment of the CapitaLand in Vietnam. It is providing the extraordinary service by the most efficient network of the public transport including bus interchange and the Metro Ben Thanh Suoi Tien is the upcoming feature for the greater convenient lifestyle of the future residents.
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