莱坊-越南投资指南2025（英）-2025_24页_4mb

Summary of The Vietnam Investment Guide (Q2 2025)

Core Content

Vietnam is emerging as a strategic investment destination in Southeast Asia, with strong economic growth, favorable business environment, and significant infrastructure development. The country attracts more than USD 30 billion in foreign direct investment (FDI) annually, supported by transparent investment laws, tax incentives, and a stable political climate. With a growing middle class and a strategic location between China and ASEAN, Vietnam offers a unique opportunity for investors across various real estate sectors, including apartments, offices, and industrial properties.

Main Points

• Strategic Location: Vietnam is positioned between China's manufacturing belt and ASEAN's consumer markets, with access to over 60 markets via 20 free trade agreements.
• Competitive Operating Costs: Statutory minimum wage is USD 197 per month, and industrial land rents are lower than in neighboring countries.
• Infrastructure Development: Over 1,000 km of expressways have been built in the past five years, and major ports like Hai Phong and Cai Mep are expanding. Long Thanh International Airport is under construction and will serve 100 million passengers annually.
• Economic Growth: Vietnam's real GDP has grown at an average of 6% per year over the past 20 years, with a forecast of 7% annual growth until 2030.
• Key Economic Regions: Vietnam is divided into three key economic regions:
  • Northern Key Economic Region (NKER): Hanoi, Hai Phong, Bac Ninh, Hung Yen, Hai Duong, Quang Ninh, Vinh Phuc
  • Central Key Economic Region (CKER): Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh
  • Southern Key Economic Region (SKER): Ho Chi Minh City, Dong Nai, Binh Duong, Long An, Ba Ria - Vung Tau, Tay Ninh, Binh Phuoc, Tien Giang

Apartment Market

• Market Trends: The apartment market has seen sustained growth, especially in Hanoi and Ho Chi Minh City (HCMC), with limited supply and high absorption rates (around 80%).
• Buyer Trends: Most foreign buyers are concentrated in Hanoi and HCMC, while villa, townhouse, and shophouse transactions remain limited due to unclear legal frameworks.
• Ownership: Vietnamese citizens have freehold ownership, while foreigners are limited to 50 years (renewable) in commercial housing projects.
• Rental Yields & Capital Gains:
  • Core Cities: Hanoi (3-3.5%) and HCMC (3-3.5%)
  • Satellite Areas: Binh Duong (4-4.5%), Long An (4-4.5%), etc.
  • Capital Gains: Major urban areas (10-15%), satellite areas (8-12%)
• Prices & Units:
  • Hanoi: USD 3,083/sqm, 45-100 sqm, USD 130k-310k/unit
  • HCMC: USD 3,648/sqm, 45-100 sqm, USD 160k-360k/unit
  • Satellite Areas: Binh Duong (USD 1,500/sqm), Long An (USD 1,100/sqm), etc.
• Market Practices:
  • Payment Terms: Typically 2-2.5 years, divided into four milestones.
  • Bank Support: LTV ratio of 50-70%, available after SPC (Sales Permit Certificate).
  • Transaction Fees:
    • Buyer: VAT (10%), maintenance fee (2%), LURC (0.5%)
    • Developer: Corporate income tax (20%)

Office Market

• Market Segments: Hanoi and HCMC are the main hubs for office development, with a total supply of 3.7 million sqm.
  • Grade A: 27% of total supply, with asking rents of USD 36-59/sqm/month and occupancy rates of 80-91%
  • Grade B: 73% of total supply, with asking rents of USD 19.5-33/sqm/month and occupancy rates of 84-88%
• Ownership: Office buildings can be owned by both domestic and foreign investors, with options for long-term leasehold or through Vietnamese entities.
• Market Practices:
  • Lease Terms: Typically 3-5 years, with some extending to 6-10 years.
  • Agency Fees: 1 month of gross rent.
  • Fit-out Periods: Rent-free periods range from 1-3 months.
  • Operating Costs:
    • Electricity: USD 0.1-0.2 per kWh
    • Water: USD 0.9-1.2 per m³
    • Minimum Wage: USD 197 per month
    • Fit-out Cost: USD 400-1,200 per sqm
  • VAT: 10% on both domestic and foreign office leases.

Industrial Market

• Market Growth: The ready-built property market has seen a CAGR of 15% from 2018 to 2024, reaching over 15 million sqm.
• Key Sectors: Electronics (40%), equipment, and 3PLs (third-party logistics) dominate major transactions.
• Ownership & Development:
  • Local Developers: Account for 56% of the market, with notable names like Kinh Bac City, Sonadezi, TTC Dang Huynh, and KCN.
  • Foreign Developers: Include BWID, SLP, Mapletree, Frasers, Cainiao, Mitsubishi, and WHA.
• Infrastructure: Major industrial zones are supported by large land banks and ongoing improvements in transportation and logistics.

Conclusion

Vietnam offers a diverse and dynamic investment landscape with strong growth potential in all major real estate sectors. The country's strategic location, competitive costs, and improving infrastructure make it an attractive destination for both domestic and international investors. However, legal complexities and supply constraints in core cities have led to a shift towards satellite areas, offering more affordable options and growth opportunities.