Vietnam as of writing is going though, unprecedented growth for the last 5 years averaging 6.7% a year.
https://www.focus-economics.com/countries/vietnam
Even though, that as of mid-2020 has somewhat slowed down like the rest of the world, I still believe it will be one of the strongest Southeast Asian countries in terms of growth in 2020. Expected to grow at 5.2% down from a predicted 7% from the effect of the virus. It is still looking very positive for Vietnam.
The country, looks in strong position to recover, by Q4 2020 and get on track in 2021.
Vietnamese, people are living in a great shift seeing their country develop so rapidly before their eyes & new wealth is being created daily and people are getting better off and moving in the middle class, this is great to see.
The trade war has only escalated Vietnamese growth, with more factories, manufacturers preferring this (great) place to have regional hubs or production line factories to make use of lower labor costs, fewer tariffs, and a more open(ish) economy.
What Are The Investment Options For Vietnamese?
You have a great opportunity right now with most people fighting to get into both Saigon and Hanoi stock exchange and property although having restriction to the amount a foreigner can hold with property and stock limits for foreigner ownership.
This gives a way for you to access one of the worlds hottest market right now (lucky you)!
Property In Vietnam
The property, I have written an article on Vietnamese property and as a local would, advise to get in on the property market if possible.
With the growth in places like Saigon, Hanoi, Da Nang well past the national average growth of 7% and in double figures for these cities.
Property can still be affordable and under $2000 USD per meter in parts of Saigon when you look at cities in the region in and similar locations showing $3000 per meter for example in Bangkok and KL. That for me is why the place has growth potential.
Vietnam has a growing population rate that is not looking to decline till 2054. Double with the massive urbanization that comes with a developing economy.
This makes property in the top 5 cities Saigon, Hanoi, Hai Phong, Da Nang, and Can Tho. (The top two more so) a valuable commodity.
https://worldpopulationreview.com/countries/vietnam-population/
Property Overseas
I believe that being invested in an emerging market is great, but is not without risks, less regulation on developers, companies going bust, no completion of projects due to corruption, is unfortunately not rare.
Therefore a stable overseas property that also gives access to currency diversification (that not enough people utilize) is positive for investors.
All western, countries follow an 18 (or so) year property cycle (please read more about this) in short due to central banks’ movements of interest rates in the economy booming and bust with the correlation of housing prices.
I am more biased due to my origin, but I still believe the U.K as a stable developed property market (U.K Property Market) with current undervalued currency with steady growth and hopefully, Brexit is sorted.
Local Stock Market
Vietnam stock exchange is among the envy of the world with most westerns wanting to get in on such a hot commodity with growth expectations that far outstretch their western rivals.
I believe you should invest as a Vietnamese in your stock market. This for the potentially rapid growth and low correlation to western markets.
But should only compromise a proportion of your portfolio (around 20% as a local) as it is still a frontier market and still volatile. Therefor would not recommend keeping the entire portfolio in this market.
How to do this would be through the two largest exchanges HOSE, HSX. Vietnam HOSE, HSX, that has seen rapid growth since opening in 2000, HOSE has around 396 (mid-2019) and an average monthly turn over in 2019 of $2.34 Billion US. With a market cap of $128.34 billion U.S. While HSX the second-largest exchange, $7.58 U.S Billion market cap.
To invest in Vietnam the five biggest securities brokers are
- Saigon Securities Incorporation
- Ho Chi Minh City Securities Corporation
- Viet Capital Securities Joint Stock Company
- Vndirect Securities Corporation
- ACB Securities Company Ltd.
- Investing offshore in the overseas stock market
This can have potentially great legal tax benefits and be a stable investment in a secure location. When I bank in the U.K, the banks only protect a certain amount of my money (around 100,000 USD) this is the same in Vietnam, where the full amount of wealth is not protected and with Banking in Vietnam rank in the lowest quarter in the world, it would not be recommended to keep any surplus to your needs and living, of significant (over 10,000 USD) amount in Vietnam as can make use, and not get eroded by inflation in VND.
Investing offshore can give you access to safe banking, stability in the currency, and developed market stock exchanges without the high costs and tax efficiency. Read the full guide on a 10-minute investment guide and offshore investing.
Residency and citizenship for high net-worth
I am a big fan of double residency and citizen plans as can legally, reduce your tax to near 0, and enhance your travel and lifestyle options.
With the Vietnamese passport currently ranked 89th in the world with only 54 visa-free countries (Japan at the top has 191 visa-free countries) it can be a great way to enhance stress-free visa travel for the modern-day business person.
For the citizenship programs to help reduce tax starts at around $100,000 USD + fees one of payment or a $250,000 investment in property in a tax-efficient location. Read my full guide on citizenship.
While residency can come to a lot less depending on where you are looking at and can be a way to reduce tax on foreign income in certain circumstances. Read article on the easiest residency programs.
For more information on investing offshore as a Vietnamese or looking into certain residency and citizenship, programs feel free to email info@investmentsforexpats.com or talk to the chatbot.
