return icon Vietnamnet.vn

Developers can ride funding waves

Competitive prices, along with advantages in climate and natural resources, are helping Vietnamese second home and holiday properties become one of the hottest investment channels in the country.

developers can ride funding waves hinh 0
A raft of major developers are resuming wide-ranging activities as the country gets back up to speed. Photo: Le Toan

The Vietnamese tourism industry is attempting to push ahead with operations as demand from domestic tourists begins to increase exponentially.

The Ministry of Culture, Sports and Tourism has issued a “Stay At Home with Vietnam” programme to promote domestic tourism with many promotions and incentive packages by both the hospitality and airlines sectors.

It has been just over a month since business restrictions were lifted in the country, and since then there have been a raft of promotion packages available, combining accommodation, food and beverages, and airline tickets within Vietnam at discounts of around 30 to 50%. These could remain in place for another month at least.

After positive signs, the tourism industry is now actively preparing for the second phase of returning to normal when it begins to welcome international visitors from safe markets.

Second home kickstart

As tourists return and demand increases, second home and holiday developers can resume their sales activities as well.

Moreover, the industry has been galvanised with the introduction of many incentives and policies issued to encourage developers to invest in the market, including stimulus financial packages and the recent decision to expand deadlines for tax submissions.

Back in February, the Ministry of Natural Resource and the Environment issued a guideline to grant ownership for tourism properties including condotels and second home villas and officetels valid for 50 years and eligible to extend to 70 years.

These guidelines had already started to encourage developers, investors, and buyers that their tourism property would be granted ownership like other accommodations.

Many developers have resumed their sales campaign. Among those CEO, Vingroup, Sun Group, and Novaland are leading the market with a range of projects to woo buyers. Real estate developers are now recruiting hundreds of salesmen to cover such ventures.

According to experts, in order to increase the liquidity of the market, the government should consider permitting foreign buyers to buy second homes and holiday property in Vietnam.

They say that Vietnam has all the conditions to become a “golden destination” for second homes for foreign buyers, however, it remains behind many other destinations in the region such as Phuket in Thailand or Bali in Indonesia.

Figures from the Ministry of Construction revealed that Vietnam has around 66,000 units of tourism accommodation, compared to 120,000 in Phuket alone.

According to Doan Van Binh, chairman of CEO Group, investment from foreign buyers would make the liquidity of the market increase and attract further international tourists to the country.

“The participation of experienced foreign investors into tourism real estate will set new requirements, diversifying and improving product quality in the market,” Binh said. “Experience from other countries and the open policy of foreign real estate ownership is a key factor to attract such investment into real estate, and into tourism real estate in particular.

Vietnam should, Binh said, mimic a programme from the Malaysian government, to set up a so-called “Vietnam My Second Home” policy to attract foreign buyers into the market, which can offer residence visas alongside the valid time of ownership.

“Allowing foreigners to buy tourism real estate will attract a large capital source into this segment but can still be managed by the current regulations on conditions and procedures for foreigners to buy homes in Vietnam,” Binh added.

“We hope that the open mechanisms and policies on foreigners owning real estate will soon be applied as an urgent solution to help the market recover quickly after the pandemic. At the same time, this is also a long-term solution for Vietnam to become a holiday destination and entice retirement and real estate investment, increasing competitive advantages with other countries in the region.”

Real estate expert Dang Hung Vo suggested that permitting foreigners to buy second homes in Vietnam is a good way to develop the whole tourism sector of the country.

“Vietnam is a wealthy potential country on tourism but has not been professional at all in developing the sector. We must change our mindset on tourism development and find out a better approach to help the market thrive. I think the opening for foreigners to buy a second home in Vietnam would be able to create remarkable change for the whole sector,” Vo said.

Lessons from regional countries

Many countries around the world have allowed non-nationals to invest and own properties. The openness of real estate ownership policies, which has created favourable conditions for investors in the market, has helped the second home segment in many countries develop strongly.

In Singapore, foreigners are allowed to buy almost all residential real estate products except social houses and some other specific limited products. In particular, Singapore allows them to buy villas attached to land at Sentosa Cove with a short-term ownership.

Malaysia’s aforementioned second home initiative allows foreigners with their families (spouses and children under 21 years of age) to live there with visas of 10 years or more when they meet set financial ability conditions.

The policy has thus far has created great attraction, with more than 42,000 non-nationals purchasing homes in Malaysia between 2002 and 2018.

Countries and territories which have more open policies for foreigners such as Japan, Singapore, Malaysia, and Hong Kong (China) currently boast the strongest and most sustainable real estate markets.

Meanwhile, in Thailand, there has been a new wave over the past five years of people owning a second home for “elderly relaxing” after the government issued a so-called retirement visa for foreigners over 50 years of age.

Those who fit the bill, along with meeting other certain conditions, are permitted to buy second homes in famous tourism destinations such as Phuket, Hua Hin, and Pattaya.

These regional schemes could give Vietnam further food for thought as the government ponders its next moves in the restructuring of the economy post-pandemic. VIR

Khanh Hoa warns about illegal sale of tourism property to foreigners

Khanh Hoa warns about illegal sale of tourism property to foreigners

 The Khanh Hoa Province Department of Construction has warned over the illegal sale of tourism properties to foreigners, asking project developers to comply with the established laws.  

Hotels become cheap enough to buy during COVID-19

Hotels become cheap enough to buy during COVID-19

Though receiving some guests during the April holiday, hotels are still not doing well. Some have had to close and others are operating at a moderate level.

MORE NEWS

Carbon market to help achieve net zero emissions

Greenhouse gas emissions in Vietnam increased rapidly over the past three decades in direct proportion to the economy’s growth.

VIETNAM NEWS HEADLINES SEPTEMBER 29

Buckwheat Flower Festival returns to Ha Giang in November

Vietnam welcomes 1.87 million foreign visitors in nine months

Vietnam welcomed about 1.87 million international arrivals in the first nine months of this year, 16.4 times higher than the same period last year but much lower than that in the same time in 2019 before COVID-19 broke out.

Close to 123,000 sea turtles released back to sea

The Con Dao National Park in the southern province of Ba Ria-Vung Tau released 122,867 baby turtles into the ocean between January and September.

Vietnamese, Danish friendship blossoms over the years

Many foreigners have enjoyed diverse landscapes, authentic local food, endless love, eternal friendship, and a favourable investment environment in Vietnam.

China imports less glutinous rice from Vietnam

The proportion of glutinous rice in total rice exports to China has fallen from 74 percent to 48 percent.

Vietnamese artists to appear in Norwegian play

Several talented local artists from the Vietnam Youth Theater have been invited to perform in 'Hedda Gabler', a classic play which is considered to be one of the outstanding works of Norwegian writer Henrik Ibsen.

Minor improvements seen in the transparency of provincial budgets

The average ranking of budget transparency for localities in 2021 was 69.53 points out of 100, a rise of just 0.44 points compared to 2020.

Pianist Nguyen Dang Quang returns home for concert of classical music

Piano player Nguyen Dang Quang, son of composer Quoc Trung and renowned artist Thanh Lam, is a fresh and promising presence at the event.

VN central bank acts to tighten the Vietnamese dong liquidity

A recent money market report of Saigon Securities Incorporation (SSI) showed the SBV last week net withdrew a total of VND34.6 trillion through the OMO channel.

Vietnam needs to improve human resources in digital age: World Bank

To reach the goal of becoming a high-income country by 2045, Vietnam needs to quickly improve the quality and quantity of its human resources.

Vietnam’s GDP rises by 13.67% in third quarter: statistics office

Vietnam’s gross domestic product (GDP) grew by 13.67% in the third quarter, according to the General Statistics Office (GSO).

Ministry of Culture demands strict supervision of beauty contests

Culture, Sports, and Tourism Minister Nguyen Van Hung has signed a directive strengthening state supervision of a variety of cultural and artistic activities, including beauty pageants and modelling contests.

VIETNAM BUSINESS NEWS SEPTEMBER 29

Vietnam to become “new Asian tiger”: Italian journal

Vietnam to become the worlds chip production center

In the first eight months of this year, phones and electronic components have the most prominent export turnover in our country, reaching nearly 40 billion USD.
back_to_top