Country profile: Vietnam

Vietnam, a one-party communist state, has one of south-east Asia's fastest-growing economies and has set its sights on becoming a developed nation by 2020.

It became a unified country in 1976 after the armed forces of the communist north had seized the south of the country in the previous year.

This followed three decades of bitter independence wars, which the communists fought first against the colonial power France, then against US-backed South Vietnam. In its latter stages, this conflict held the attention of the world.

Overview

The US had entered hostilities to stem the "domino effect" of successive nations falling to communism.

The jungle war produced heavy casualties on both sides, atrocities against civilians, and the indiscriminate destruction and contamination of much of the landscape.

A visit to Vietnam by US President Bill Clinton in November 2000 was presented as the culmination of American efforts to normalise relations with the former enemy.

Economic reform has challenged Communist Party ideology

Vietnam struggled to find its feet after unification and it tried at first to organise the agriculture-based economy along strict collectivist lines.

But elements of market forces and private enterprise were introduced from the late 1980s and a stock exchange opened in 2000.

Foreign investment has grown and the US is Vietnam's main trading partner. In the cities, the consumer market is fuelled by the appetite of a young, middle class for electronic and luxury goods. After 12 years of negotiations the country joined the World Trade Organization in January 2007.

But the disparity in wealth between urban and rural Vietnam is wide and some Communist Party leaders worry that too much economic liberalisation will weaken their power base and introduce "decadent" ideas into Vietnamese society.

Vietnam has been accused of suppressing political dissent and religious freedom. Rights groups have singled out Hanoi's treatment of ethnic minority hill tribe people, collectively known as Montagnards.

Facts

• Full name: Socialist Republic of Vietnam
• Population: 88.5 million (UN, 2008)
• Capital: Hanoi
• Largest city: Ho Chi Minh City
• Area: 329,247 sq km (127,123 sq miles)
• Major language: Vietnamese
• Major religion: Buddhism
• Life expectancy: 72 years (men), 76 years (women) (UN)
• Monetary unit: 1 dong = 100 xu
• Main exports: Petroleum, rice, coffee, clothing, fish
• GNI per capita: US $790 (World Bank, 2007)
• Internet domain: .vn
• International dialling code: +84

Leaders

President: Nguyen Minh Triet

Parliament confirmed Nguyen Minh Triet, the head of the Communist Party in Ho Chi Minh City, as president in June 2006. He has a reputation for fighting corruption and is seen as an economic reformer.

The former head of state, Tran Duc Luong, had submitted his resignation alongside the prime minister and the chairman of the National Assembly. The change of guard had been expected.

Secretary-general of the Communist Party: Nong Duc Manh

Nong Duc Manh aims to modernise Vietnam

The Communist Party holds the real power in Vietnam. It reappointed Nong Duc Manh as its secretary-general in April 2006.

Mr Manh, who is seen as a moderniser, urged Vietnam to speed up economic reforms and to tackle bureaucracy and deep-rooted corruption.

He says he wants to "lift people from poverty and hunger" and to turn Vietnam into a developed, industrialised country.

Mr Manh began his first term in 2001, becoming the first secretary-general with no direct experience of the struggle for independence. He oversaw five years of strong economic growth.

The Communist Party leadership recommends candidates for the posts of president and prime minister.

Media

The Communist Party has a strong grip on the media. The Ministry of Culture and Information controls the press and broadcasting.

The government has shut down several publications for violating the narrow limits on permissible reporting. Journalists face large fines for transgressions which include denying revolutionary achievements and spreading "harmful" information or "reactionary ideology".

There are hundreds of newspapers and magazines, but television is the dominant medium. Vietnam Television (VTV) broadcasts from Hanoi and is available via satellite to the wider region. There are many provincial stations. Some foreign channels are carried via cable.

State-run Voice of Vietnam (VoV) operates six radio networks, including the VoV 5 channel with programmes in English, French and Russian.

There were around 20 million internet users by June 2008 (InternetWorldStats). Internet providers face fines or closure for breaking the rules and "cyber dissidents" have been imprisoned.

The press

• Nhan Dan - Communist Party daily, English-language pages
• Vietnam Economic Times - English-language pages
• Le Courrier du Vietnam - French-language
• Vietnam News - English-language daily
• Quan Doi Nhan Dan - People's Army daily

Television

• VTV - Vietnam Television
• Radio
  
• Voice of Vietnam - operates national networks and an external service
• Dai Tieng Noi Nhan Dan - Ho Chi Minh City

News agency

• Vietnam News Agency

Source: http://news.bbc.co.uk

Vietnam Real Estate Investment Potential

Many believe that Vietnam will become the next Thailand in terms of its tourist and second home appeal. Currently Vietnam is around 20 years behind Thailand in terms of its development, the number of tourists it attracts and also the prices charged for real estate but the rate of development by which Vietnam is improving is incredibly rapid.

Vietnam shares great natural attraction and appeal with Thailand and yet currently it offers a real estate investor far greater and broader potential for profit and long term investment success. Therefore while one can compare Vietnam to Thailand in terms of its beauty and charm, one cannot tie Vietnam’s potential to that of Thailand’s because Vietnam is beginning to emerge as an incredibly attractive real estate investment hotspot on many unique levels.

Firstly the development of Vietnam as a holiday destination is rapidly taking hold. In 2004 for example tourism numbers shot up by almost 24% and this is a pattern that the Vietnamese are keen to see emerge. Foreign investors have already realized the potential of the tourism sector and a joint Vietnamese and American consortium has already committed one billion US dollars to the development of tourism and recreation facilities for example.

Currently in the planning stages or under construction are six championship golf courses, a five star hotel resort, a marina, a yacht club and substantial villa and apartment accommodation to let to holiday makers. This particular billion dollar investment is being centered upon the Uong Bi Township and Nha Trang City in Khanh Hoa Province but investment opportunities are not limited to any one particular area of the country when it comes to tourism in Vietnam and the Vietnamese government is actively and successfully encouraging tourism based investment.

Such is the appeal of the entire country that an investor can pick and choose from well established locations such as Nha Trang or emerging destinations where infrastructure has yet to improve but where land prices are incredibly cheap and the potential for the future is very strong.

There are opportunities for investors in Vietnam’s main cites as well because the Vietnamese economy is expanding at an impressive rate, FDI figures are up and the long term outlook for the country is for sustained and sustainable growth which means many new companies are being attracted to Vietnam and creating employment opportunities and pushing up domestic purchasing power. This means that there’s potential to target local residential real estate needs, the commercial property market with office and retail space or even the corporate let market with many executives requiring a short term base in Ho Chi Minh City and Hanoi for example.

The economic growth targets that the Vietnamese government have set themselves for 2010 are to increase GDP annually by between 7.5 and 8 percent to ensure GDP is 2.1 times larger than it was in 2000 and so far they are on target to achieve this. The reforms they have exacted to get their economy working have so far proved successful and this bodes well for the property investor who should consider that Vietnam’s fortunes may actually be following China‘s not Thailand‘s and the potential in the Vietnamese real estate market could be as impressive.

Source: amberlamb.com

Vietnam: Introduction for Real Estate Investors

Real estate investors can consider Vietnam to present them with the same opportunities as Thailand did some twenty years ago. It is a stunning country with a very young, well educated, hard working and literate population and it’s a destination of wide appeal to both holiday makers and those seeking a unique second home location.

Politically and economically speaking Vietnam is in transition and improving, developing and stabilizing. While land law is still evolving and certain domestic issues can cause problems for property developers in Vietnam, the real estate investor should have confidence about the long term profitability of any investment made into the property sector country wide.

From Hanoi in the north of Vietnam to Ho Chi Minh City in the south, Vietnam has towns, cities, islands and resorts offering an investor an unrivalled choice of residential and commercial opportunity at currently very attractive prices.

Beginning with Hanoi: the city may be Vietnam’s capital city but it is not the largest city in the country, nevertheless it is enjoying substantial inward investment into commerce and industry while at the same time managing to retain its unique laid back charm. The city is therefore becoming as popular with multinational companies and their expatriate employees as it is with overseas visitors and it is becoming both a budget and package tourist hotspot. Visitors are attracted to the contrasting modern skyscrapers and the timeless lakes, gardens and wide, shaded boulevards and the city is highly accessible with an international airport on its doorstep.

Hanoi has opportunities for the investor in the residential and commercial rental real estate market and it offers developers a chance to create anything from office and retail space to satellite towns to service Hanoi workers with affordable and desirable suburban properties. The latter opportunity also exists in Ho Chi Minh City in southern Vietnam which is such a vibrant and exciting city that has grown to become the largest in the entire country. Accommodation issues in Ho Chi Minh City are beginning to push rental prices up.

Ho Chi Minh City has become the business centre of Vietnam and has one of the fastest growing micro-economies in the world. As a result it is drawing substantial and sustained investment from overseas and its population is swelling. The Vietnamese government are considering proposals to develop satellite townships to house city residents and investment is being sought for the North-West New Township, Thu Thiem New City Centre and Nam Rach Chiec Residential Complex currently. When in the construction phase, these developments will offer investors a chance to buy off plan and either flip or rent properties for profit.

For the second homer or those wishing to tap into the growing tourist market along Vietnam’s 3,444 km of coastline or around its thousands of pretty islands in Halong Bay there are various already established resorts that are growing in popularity and sophistication. One of the best is Nha Trang with its excellent diving and stunning beach. It is also an area attracting some intense real estate interest and a part of Vietnam that has been compared to Thailand’s exciting resort of Pattaya Beach.

The stunning natural beauty of Vietnam with its palm fringed beaches, lush forests and impressive mountains coupled with the Vietnamese government‘s commitment to attract trade, commerce and to open the economy and the country up to external investment point to a prolonged period of fiscal improvement. And real estate investors should recognise Vietnam as having one of the most exciting emerging property sectors in the world - one offering such a broad range of opportunity at incredibly affordable prices that it deserves closer inspection.

Source: amberlamb.com

Foreign Investors Developing Property in Vietnam

Up until very recently Vietnam was possibly one of the most frustrating countries for foreign property investors who were all too well aware of the potential for real estate profits to be made in a country where there is a developing tourism market, a burgeoning FDI climate in business and a developing finance market too. But because foreign investors cannot own land and property directly or outright in Vietnam, their potential to profit was restricted.

However, the new housing law that came into effect in 2006 has clarified the rules and regulations as well as the restrictions that apply to foreign individual investors, foreign organisations and joint ventures between local Vietnamese individuals or organisations and foreign organisations involved in the real estate market, and it has opened up some new opportunities for overseas investors to profit from property in Vietnam – so much so that now foreign investors are developing property in Vietnam and benefiting substantially

The new Vietnam housing law has been heralded as a welcome clarification of the rights and obligations of all parties involved in property transactions in Vietnam. Prior to the law’s enactment in July 2006 there was a lot of confusion and contradiction attributed to the whole property market and property buying and ownership process, especially for foreign individuals wishing to invest in Vietnamese real estate.

Before we discuss how and why foreign investors are developing property in Vietnam, here are the most pertinent points of the law applicable to foreign activity in Vietnam’s housing market for foreigners hoping to understand how they can enter the property market: -

Ownership of Property – foreign investors cannot own property for their own personal use in Vietnam but they can invest in property development projects in Vietnam. They can develop houses for lease or for sale and they will be issued with an investment certificate that stipulates the duration of their permitted investment presence in a given project.

Once the investment certificate runs out any unsold or non-leased properties have to be transferred to the state without compensation.

Leasing of Property – foreign organisations and individuals interested in leasing property in Vietnam can do so as long as they have a valid visa or the right to remain in Vietnam for longer than three months.

Mortgages for Property – property owners can mortgage their property but they can only do so with one credit institution and that credit institution must have permission to operate in Vietnam.

The new law therefore clearly highlights two important facts – foreigners can invest in development projects and profit from the lease or resale of property units constructed, and local Vietnamese can benefit from a clarification of the mortgage law and the right to raise finance to buy in Vietnam. Now add to this the following facts and you will see why overseas interest in property development projects has suddenly peaked…

After twelve long years of waiting Vietnam joined the World Trade Organisation on the 11th of January 2007 – the significance of this event is great. For example WTO membership means Vietnam can participate in the global trading system on an equal footing with other WTO members and enjoy trade expansion and subsequent economic growth – in addition it makes Vietnam a more interesting and stable nation for overseas investment focus.

In 2006 along with a new housing law a new investment law was enacted in Vietnam that saw the government freeing up access to the financial market which will allow cash strapped property development projects in Vietnam access to the money they now need to continue.

Property markets in other nations in the southeast Asia region no longer offer the potential for profit and development that Vietnam’s still does meaning increasing focus is being placed on the Vietnamese property market by investors from the likes of Korea, Japan, Singapore and Malaysia.

Local property developers who were on the verge of bankruptcy following two years of a frozen property market in Vietnam are happy and hungry to enter into joint ventures with overseas investors who have the cash to carry their already started projects through to completion.

Vietnam is a nation in the process of rapid urbanization, and currently local demand for both residential real estate and offices space in the main population centres and areas of employment is outstripping supply.

All of these developments and changes have resulted in strong property speculation activity from overseas investors in Vietnam. Money is being poured into housing, infrastructure and commercial property development projects directly or though joint ventures and local property market opinion is that strong short to medium term profits will be derived.

Source: http://www.amberlamb.com

VIET NAM's GEOGRAPHY

05/02/2009

Vietnam is a long and narrow country, lying completely in the tropical zone. Its landmass forms the shape of the letter S on the east side of the Indochinese Peninsula in Southeast Asia. Vietnamese eastern border consists of more than 3,000 km of coastline, facing the East Sea and the Pacific Ocean. To the north, Vietnam shares its border with China, while to the west, with Cambodia and Laos.


Vietnam's S-shaped landmass widens in the north and in the south. Northern Vietnam has large plains lying in the river basins of the Red, Lo, and Chay Rivers, which flow in a northeast-to-southwest direction into Bac Bo Gulf. North and northwest of these plains are large hilly and mountainous areas. Northern Vietnam is influenced by a monsoon climate, with four distinct seasons and high humidity. In order to cultivate land and earn their living, inhabitants of the north built dikes over the centuries, resulting in today's system of dikes that are thousands of kilometers long along the river banks.
Southern Vietnam has the Mekong River, which originates in China, and flows through Laos and Cambodia before entering Vietnam. In Vietnam, the river splits into nine tributaries before flowing into the East Sea, which is the reason the Vietnamese call it the Cuu Long (Nine Dragons) River. The rich and fertile Mekong Delta region is the leading rice producer in the country. The south has only two seasons, the rainy season and the dry season.
Between these large delta regions in the north and south is the long and narrow Central Vietnam. In the west is the Truong Son mountain range. Short rivers running straight to the East Sea cross the region, creating small narrow plains along the coast. The climate of Central Vietnam is often harsh, and subject to natural calamities such as typhoons. In the southwestern part of Central Vietnam, there are large, high plateaus, 1,000 meters above sea level, with fertile basalt layers, appropriate for the cultivation of tropical and temperate cash crops, such as rubber, tea, coffee, and cacao.
Vietnamese long coastline has many beautiful beaches, and includes the famous Ha Long Bay, which has more than 3,000 small mountains on the sea and which was recognized by the United Nations Educational, Scientific, and Cultural Organization (UNESCO) as a world heritage. Vietnam has many primitive areas of forest with precious timber, rare fauna, and high mountains with temperate climates which are very attractive for tourists. A large number of lakes, rivers, streams, waterfalls, and grottoes complete the beauty spots of Vietnam.

Vietnamese natural resources include coal, iron, bauxite, and precious stones, which are mined in northern and central Vietnam, and large reserves of oil and gas in the coastal areas and on the continental shelf.