Thursday, 7 April 2016

Particular Risks in Vietnam Property Market

1) Currency Risk:
Vietnam currency (VN Dong) has a history of high inflation due to the fact that the country development is at the early stage and it depends a lot on export. Fortunate for foreign investors is that US Dollars (USD) are widely excepted in Vietnam. We would recommend foreigner to convert their proceeds (sale, rental, etc) to USD to hedge the inflation and exchange rate fluctuation

2) Developer Risk:
It is not rare in Vietnam that the developer cannot finish project in time. In worst cases, developers filed for bankruptcy and left the property uncompleted. It is suggested that foreign investors only deals with reputable developers with good track record of project completion. If you are not sure a developer is good, please contact for a check.

3) Infrastructure Risk:
Infrastructure in Vietnam are still under extensive development. There are many areas in the city where the infrastructure in poor condition and needs major rejuvenation. This poses the risk that your project are poorly served and therefore undermine the value of project. In some cases, the dwelling unit cannot be rented out for a long time. It is good to study carefully on the infrastructure and facilities surrounding your development to ensure it is in a good living condition.  

(VNM2)

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