The legal framework expands opportunities for overseas Vietnamese to invest in real estate in Vietnam.

It is projected that by the end of 2025, the total amount of remittances to Ho Chi Minh City will reach approximately 10.5 billion USD, equivalent to 267,000 billion VND. This will continue to be a significant financial resource for the city's economy in particular and Vietnam's economy in general.

Mr. Matthew Powell, Director of Savills Hanoi

The new regulations create opportunities for Vietnamese people living abroad.

According to Matthew Powell, Director of Savills Hanoi, the new regulations in the 2024 Land Law and the amended Real Estate Business Law have brought about significant changes for Vietnamese people living abroad .

"These adjustments help the market operate more transparently, while also allowing overseas Vietnamese to access and exercise real estate transaction rights equivalent to those of Vietnamese people living in Vietnam," Powell stated.

According to him, a clear legal framework is a key factor in increasing investor confidence, especially given that many overseas Vietnamese maintain family and economic ties and frequently travel between Vietnam and their host countries. These amendments contribute to providing investors with a clearer legal basis when making decisions.

Besides legal factors, Mr. Powell believes that political stability continues to be one of the important foundations for long-term confidence among Vietnamese investors abroad. At the same time, other drivers such as FDI inflows , adjustments in investment policies, and the acceleration of transportation infrastructure development , including roads, railways, and airport systems, are opening up many new development areas nationwide.

"It's not a single regulation that creates confidence in the market, but rather a combination of factors simultaneously improving the investment environment, with real estate playing a crucial role," Powell emphasized.

Apartment buildings are attracting investment capital from overseas Vietnamese.

According to recent studies, the majority of overseas Vietnamese who invest in real estate in Vietnam tend to prioritize the apartment segment. Explaining this trend, Mr. Powell suggests that flexible payment mechanisms are one of the key factors.

Apartments are often sold as off-plan properties, with flexible payment schedules spread across stages, making them more suitable than buying land or a house which requires a large lump-sum payment. In many cases, developers also offer financial support policies, helping to reduce cash flow pressure for investors.

Furthermore, many overseas Vietnamese investors have a certain level of familiarity with major developers, especially those with international affiliations, which builds confidence when entering the market. Apartments are often seen as a suitable initial step to "test the market" before making larger-scale investment decisions.

Regarding real estate selection criteria, according to Savills, overseas Vietnamese generally do not differ significantly from other investor groups. Factors considered include location, regional infrastructure, potential for capital appreciation, rental potential, and rental yield.

For investors not residing in Vietnam, real estate is typically aimed at investment or rental purposes. Therefore, the potential for exploitation, the attractiveness to tenants, and transparency in the investment process are particularly important factors. Besides major cities like Ho Chi Minh City and Hanoi, some stable and developing markets such as Da Nang are also considered suitable options for foreign investors, including overseas Vietnamese, to access the market, thanks to its relatively clear planning, integrated infrastructure, and product structure that allows for easy assessment of exploitation efficiency.

Furthermore, the amenities system, project quality , overall regional development, and clear legal frameworks continue to play a key role in long-term investment decision-making.

Communicated by An Huy Group

According to Vietnam Logistics Review Magazine