Vietnam has managed to contain COVID-19, and one of the first in the region to lift social isolation measures and reopen the economy, allow businesses to resume. With Vietnam’s strong market fundamentals, along with its position in the US-China trade war, the economy is raring to go and poised to rebound impressively post COVID-19. Here are the top 3 reasons why you should invest in Vietnam.
The COVID-19 pandemic has slowed global trade and disrupted supply chains. Companies around the world will alter their supply chains to be less dependent on China in the wake of the coronavirus crisis. Manufacturers will diversify their supply chain to avoid similar struggles in the future.
Since the US-China trade war, companies are convinced to move manufacturing from China to Vietnam as they attempt to dodge President Trump’s tariffs. In 2019, Vietnam exported almost $47 billion more than it imported from the US. The pandemic is a good wake up call for businesses to diversity. Tech giants such as Apple, Google and Samsung have already been doing so with manufacturing facilities and production lines in Vietnam.
The government’s aid has also paid a big part in encouraging the shift, for example, Japan has set aside more than US$2 billion in its coronavirus recovery package to help firms shift production out of China. Some firms may surely pick Vietnam as a ready alternative.
In addition, apart from Vietnam’s participation in several free trade agreements, the upcoming EU-Vietnam FTA (EVFTA) will bring further opportunities for both sides to expand their economies. Vietnam’s domestic consumption is also a significant driver for investing in the country.
Vietnam is forecast to be one of the fastest-growing economies in Southeast Asia, despite the impact of COVID-19. According to the Asian Development Bank (ADB), Vietnam’s economy has shown strong growth in 2019, as a result of high domestic demand, a strong manufacturing and processing industry, and high Foreign Direct Investment (FDI).
According to the ADB’s Asian Development Outlook 2020 report published on April 3, 2020, Vietnam’s economic growth will decline sharply to 4.8 percent in 2020 but bounce back up to 6.8 percent in 2021, provided the pandemic is contained.
Infrastructure system plays an important role in the socio-economic development of any country, especially in a fast-growing economy like Vietnam.
Vietnam has a strong project pipeline in roads, rails, bridges, public service infrastructure, urban transportation such as MRT, and more importantly, the infrastructure for its ports and special economic zones. According to studies, between 2016 and 2020, Vietnam will need an investment of approximately $38 billion per annum for various socio-economic infrastructure projects.
Vietnamese government’s efforts to bolster infrastructure at key economic and industrial zones such as Ho Chi Minh City, Hanoi and the northern port city of Hai Phong has helped modernise the country and contribute to social mobility.
So you see the potential of Vietnam, and the question now is HOW to invest.
If you are new to Vietnam Property Investment, you may also have these questions in mind.
While you should not miss this golden opportunity, you should also be aware of the risks involved in bringing your money to an emerging economy. However, these risks can be minimized with a trusted partner.
Asia Bankers Club is one of the pioneers promoting Vietnam real estate since the market opening up in 2015. Over the years, we have built a reputation amongst investors, bankers, members and our private guests, expats from everywhere, especially those from Hong Kong and Singapore, who are looking to diversify their investment portfolio.
Asia Bankers Club works directly with reputable developers and is given exclusive foreign quota stocks for their projects.
We can assist you in all stages: before you invest, during your purchase and after, from pre-investment, maintenance and management, to exit strategy.
Asia Bankers Club has its own project management and leasing companies, providing services such as:
Our group has been doing business in Vietnam for a period of time, with an extensive network of contact and realistic knowledge of the local market ready to be shared with you. Our offices and representatives in Ho Chi Minh City and Hanoi enable us to be ready and be always up-to-date to the latest changes on regulations and policies.
For each project, we research thoroughly from the macro environment to the micro details of the properties, the area’s market updates to tenant and buyer behaviour, environment as well as its average income level, you name it. We are well-versed in the local region and are able to explain to you the know-how relating to foreign investments going into these regions.
We’ve organized iconic and sold-out events throughout the years:
We are recognized on media and our company representative is often interviewed for our views on Vietnam and overseas investment:
Prestigious topping out ceremony with Mr. Chen Lian Pang, Chief Executive Officer of CapitaLand Vietnam and Asia Bankers Club CEO, Kingston Lai
Vietnam press interviews our CEO, Kingston Lai
NowTV interviewed our Founder & CEO Kingston Lai on investing in Vietnam Real Estate
Founder & CEO Kingston Lai discussed with Vietnam Property Investment on the Standard
Hong Kong Commercial Daily Interviews our CEO, Kingston Lai, About Southeast Asia’s property rental yield.