Experts from Savills Vietnam have recently provided analysis on the flow of capital from Vietnamese people living abroad into the Vietnamese real estate market.
In particular, Mr. Troy Griffiths, Deputy Managing Director of Savills Vietnam, assessed that in the Land Law 2024, specifically Clause 3 and Clause 6 of Article 4 of the Land Law 2024 on “Land Users” (effective from 1-1-2025), the land use rights for returning Vietnamese citizens have been expanded. This is the key change that has received a lot of attention.
According to him, this change will bring more investment opportunities for the group of buyers who are overseas Vietnamese, creating great potential for the real estate market.
A real estate project in Binh Thuan |
He also mentioned that Savills has had opportunities to collaborate with many Vietnamese people abroad and noticed that a significant portion of them are elderly. These may be people who have emigrated abroad, after many years of hard work, they have accumulated a certain amount of wealth and are considering reinvesting in Vietnam, and even considering returning.
Especially, there are many Vietnamese people working abroad. This creates a huge potential investor pool for the Vietnamese real estate market.
Statistics from the State Committee for Overseas Vietnamese show that the remittances to Vietnam from 1993 (the first year of remittance statistics) to 2022 reached over 190 billion USD, nearly equal to the disbursed FDI capital in the same period. The record remittance of 19 billion USD in 2022 has placed Vietnam in the top 10 countries receiving the largest remittances from abroad.
Among them, the flow of remittances into the real estate sector is not insignificant. According to statistics from the Central Economic Management Research Institute, about 15-20% of the money remitted by overseas Vietnamese is directly invested in real estate. If converted into products, this amount of money is equivalent to the value of 10,000 apartments per year.
From another perspective, this expert believes that this capital source has also shifted from direct investment in real estate to investment in small and medium-sized enterprises.
Son Nhung
