Vietnam

Market Overview

Population:
85.4 million
Capital :
Hanoi
Area :
331,690 km
Official Language :
Vietnamese
Religion :
Buddhism
Life Expectancy :
70.8 years
Main Exports :
Rice, coffee, tea, rubber, and fishery products
GDP Per Capita :
USD 1,052

Economic Insight

  • Became the WTO's 150th member on January 11th 2007
  • Economic reforms initiated in the late 1980s have stabilized the economy and created high levels of income growth
  • Commodities and goods are freely imported and exported
  • According to the General Statistics Office (GSO), the first 9 months of 2010 GDP growth rate expanded by 6.8% y-o-y, higher than the target of 6.5% y-o-y
  • Inflation surged by 9.2% y-o-y in 2010

Property Market

Vietnam's real estate prices have risen this past year, but a number of factors have recently brought uncertainty to the market. Factors include the falling US dollar reserves and the weakening Vietnamese Dong (VND), due to high inflation, these changes are likely to have a direct effect on the Vietnam's housing market. There are as many as 79 projects that are under construction that remain un-launched in the major cities, as the developers patiently await the return of buyer confidence since the global economic crisis.

However, In Hanoi and there is an increasing amount of demand for serviced apartments from expats relocating to Hanoi for employment, forcing apartment prices up by 9% in Q3 2010. New regulations meaning more transparency for developers and buyers will have a positive effect on the housing market. 2011 will be a year of uncertainty, Hanoi is expected to maintain its growth whereas the rest of the country maybe much more volatile to the weakening of Vietnamese Dong. The serviced apartment market in Hanoi is likely to grow the most throughout 2011 as more expats migrate to the capital.