Experts from Savills Vietnam have provided an analysis of capital flows from overseas Vietnamese into the Vietnamese real estate market.
Specifically, Mr. Troy Griffiths, Deputy Managing Director of Savills Vietnam, evaluates that in Land Law 2024, specifically Clause 3 and Clause 6 of Article 4 of Land Law 2024 regarding “Land users” (effective from 1-1-2025), the land use rights for Vietnamese residents abroad have been expanded. This is the new change that has attracted much attention.
According to him, this change will bring more investment opportunities for the group of buyers who are Vietnamese nationals residing abroad, creating great potential for the real estate market.
A real estate project in Binh Thuan
He also revealed that Savills has had opportunities to cooperate with many Vietnamese residents abroad and noticed that many of them are older in age. These may be people who have migrated abroad and, after many years of hard work, they have accumulated a certain amount of money and are considering reinvesting it in Vietnam, or even considering returning.
Especially, there are many Vietnamese people working abroad. This creates a huge potential source of investment for Vietnam’s real estate market.
Statistics from the State Commission for Overseas Vietnamese show that remittances to Vietnam from 1993 (the first year remittances were recorded) to the end of 2022 amounted to over 190 billion USD, nearly equal to the disbursed FDI capital in the same period. In particular, the record remittance of 19 billion USD in 2022 has put Vietnam in the top 10 countries receiving the largest remittances from abroad.
In this, the flow of remittances into the real estate sector is not a small number. According to statistics from the Central Institute for Economic Management, about 15-20% of the money from overseas Vietnamese sent back to the country is directly invested in real estate. If converted into products, this amount of money is equivalent to the value of 10,000 apartments each year.
From another perspective, this expert believes that this capital source has also been shifting from direct investment in real estate to investment in small and medium-sized enterprises.
