Vietnam as of writing is going though, unprecedented growth for the last 5 years averaging 6.7% a year.
Investing in Vietnam
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 and stress that Vietnam’s economic system is transparent, understandable, and logical, but while you are in the status of an observer. But we are working to make everything simple for you and suggest different options for transferring money, which will be definitely useful.
Getting Money Out of Vietnam
The need to transfer money to or from Vietnam can arise for various reasons:
- Purchase of residential real estate by a foreigner
- Remote work and salary
- Financial assistance (in both directions)
- Millions of purposes
Each tourist has his own horror story on the topic “How I transferred money to Vietnam”. But even worse is its reverse version. Let’s learn the most popular and guaranteed ways with Vietnamese stories.
Money transfers – what are the most convenient ways?
Previously, to transfer money, you had to go to the post office and fill out a receipt. In this case, the recipient had to wait parcels from 3 days to several weeks.
Today, thanks to electronic payment systems, a money transfer operation will take a few minutes. At the same time, funds can be transferred to the recipient’s account very quickly: from several minutes to several hours.
The sender can use different methods to transfer money:
- you can transfer money via mail
- you can contact the bank
- you can also use the help of Internet banking.
- or there are some popular international money transfer companies
All these methods transfer your money to the addressee at different speeds and at different rates. Your choice will depend on such parameters as the amount of the transfer, the destination and the time during which you want to send money. You can choose the payment system that suits you best.
Money transfers through banks
- Express transfers
There is no need to open an account for this. Such transfers can only be made by individuals. The procedure is simplified and created to send money only within Vietnam.
- International transfers – SWIFT
In translation, the abbreviation SWIFT means “Society for Worldwide Interbank Financial Telecommunications” and its main purpose is to transfer information and make payments in an international format.
This method can be used when sending any amount of money to any country in the world. The main thing is that the receiving bank is connected to the SWIFT system.
- Transfers will take from 1 to 3 banking days
- To transfer funds, both the sender and the recipient need to have active bank accounts
- The sender must have an identity document with him, as well as the recipient’s details
In addition, it is imperative to indicate the purpose of sending money. Such transfers are convenient if you need to urgently send money to another country – for example, pay for tuition.
- Transfers from card to card within one payment system (for example VISA to VISA)
The advantage of this method of transferring money is that it is available at any time of the day, even on weekends, when banks are closed.
For this transfer, you will need an ATM or internet bank access. The card can be of both a Vietnam and a foreign bank, it is important that this card belongs to a certain payment system (for example, VISA), and you know the card number, name and surname of the recipient.
In this case, the funds will be received within 3 hours if they are VISA cards of the same bank and during the day if they are cards of different banks. But more often than not, money is received in a matter of minutes. Prices for this type of money transfer may be different, depending on the conditions of the bank.
- Transfers by code
Individual bank cardholders can transfer money through an ATM or Internet Banking portal. The recipient does not need a bank card; he simply uses the code that the sender tells him, enters it into the appropriate field in the ATM and can withdraw money.
After all these methods connected to banks, below you can find some of the best working international money transfer companies, which are both convenient to send money from and to Vietnam and help you transfer your money in a few minutes without additional information such as SWIFT code, requisites, etc.
MoneyGram
MoneyGram is the world’s second largest money transfer provider and has an anticipated network of 350,000 points of sale and kiosks in over 200 countries.
It also has a full range of financing and receiving options, including cash delivery and phone reloads in a few markets. And transfers are fast: cash is usually available within minutes, while bank transfers take a few hours to many popular destinations.
But all of these features come at a price. MoneyGram was one of the most expensive transfer providers.
Also MoneyGram has a minimum transfer amount of £ 1. The maximum transfer amount is £ 5,000, so the service is most suitable for relatively small amounts.
Besides the transaction limit, there is also a cumulative limit of £ 5,000 per month. For any amounts in excess of this, you will need to contact one of MoneyGram’s retail agents and arrange for a personal transfer.
Now let’s see what transferring options MoneyGram offers to its customers from Vietnam:
- Send money in person
- Send to a bank account
- Send to mobile wallet
When you want to send money from Vietnam’s MoneyGram agent location, you have to first of all find a location near you, prepare for you argent visit and here you need to have with you the following information and documents:
- Your ID where applicable
- Your recipient’s full name matching their I.D. and their location
- The amount you wish to send, plus fees
Next two steps include completing your transaction and notifying the recipient that you have sent the money.
Where applicable, complete a send form. Give the agent the completed form with applicable funds (including transaction fees). Save your receipt and share the 8-digit reference number with your recipient for pick-up.
If you prefer transferring money to a bank account then you have to provide the following information:
- Your ID
- Your recipient’s full name matching their ID, bank name and account number
- Your recipient’s location
- The amount you wish to send, plus fees
Share the 8-digit reference number with your recipient and the funds will be deposited directly into their account.
If you chose the third option, which is transferring money to online wallet, you have to provide Your ID, your recipient’s full name matching their ID, and their mobile number with international dial code, also the amount you wish to send, plus fees. The rest is the same, the funds will be deposited directly to the recipient’s mobile wallet.
To receive money you need:
- find the nearest MoneyGram branch
- fill out the form in the form for receiving money, where you will need to indicate the number from the sender’s receipt
- submit a form and an identity document to the department employee.
Western Union
Western Union is the world’s largest provider of money transfers with over 500,000 locations in over 200 countries and territories. Unlike many providers, Western Union offers both domestic and international transfers; the ability to send and receive cash abroad quickly is his specialty.
But Western Union has a complex pricing structure and the FAQ lacks guidance for some key customer situations, such as canceling a transfer before delivery. In addition, the company has failed to protect consumers in the past.
Transfers using the international system Western Union are provided with a money transfer control number, which allows you to quickly find the transfer and check its status. Money can be received in a few minutes after sending in more than 200 countries.
There are 2 options for transferring funds:
- Personal visit to a Western Union branch or partner bank
- Online transfer – with this method, you do not need to visit bank branches, instead you can do this through a computer or mobile phone with Internet access
You do not need to have a bank account to transfer money using Western Union. The maximum amount of transfers in bank branches is $ 7400 or the equivalent amount in the needed currency. The only drawback of the system may be that the dollar rate will be greatly overvalued, which will affect the transfer of money abroad.
After you have transferred the funds, the bank issues a receipt with a 10-digit control number. It, as well as the amount, country and city of the transfer, must be named to the recipient.
The transfer fee is paid only by the sender. In exceptional cases, fees may be charged to the recipient, for example, when the transfer is made to a legal entity.
TransferWise
This is an Estonian company that allows you to make transfers to other countries, paying only the difference in exchange rates and a low commission. This is a great alternative to bank transfers, as the money goes to the recipient’s bank card, but at the same time, you do not lose money on interest.
For transferring you need:
- Register on the company’s website (for the sender only). You get a real IBAN account, which you can also use to receive money from other countries
- Select the amount you want to send
- Add recipient bank details
- Confirm the person (ID photo)
- Pay for the transfer
- You can track your transfer
Money transfer startup TransferWise offers cheap ways to send money from the US to over 70 countries. The exchange rates are some of the best you will find.
You can fund the transfer in various ways, for example using a bank account or card, but the recipient must have a bank account. Highly rated mobile apps and website provide useful cost calculators and other information to make translations convenient.
The company offers low fees. The fixed cost for many countries is a combination of a fixed amount of about $ 1 and a percentage of just under 1% of the transfer amount.
Credit card fees are higher. Using an ACH transfer from your bank account or debit card is generally cheaper. If you pay by bank transfer with TransferWise, your bank will likely charge you a fee.
But this international money transfer is not always the best deal for large transfers. Some providers charge no fees and offer competitive markups, which can make some transfers cheaper than TransferWise.
PayPal
PayPal is not only a popular platform for paying for online purchases, but also allows you to send money to friends and family in seconds. In this article, you will learn how to use your PayPal account to send money from your computer, phone, or tablet.
This site has existed since 1998 and has already proven its reliability and safety. In order to send or receive money from both parties, a profile on PayPal must be created. When creating a profile, you will need to not only indicate your name and passport information, but also attach your bank card, from which money will be debited during the transfer, and to which you can receive money.
When registering, you will also be asked to confirm that you are not a robot; you will need to scan the invoice to your address and your name and attach it as confirmation to your account.
After registering attach your bank card and click the ‘Send’ button. It’s a blue cash icon with an arrow located in the lower left corner of the PayPal app. If you are using the application for the first time to make a payment, click on the blue button ‘Let’s get started!’ at the bottom of the screen when it appears.
Select or enter a contact. If the person you want to send money to is in your contacts, scroll down and select that person’s email address or phone number. Otherwise, enter your desired email address or mobile phone number in the field located at the top of the screen, and then tap on it to create a payment.
Before sending money, please confirm that the email address or phone number provided is correct so that you don’t send money to another person by mistake.
If you would like to send money to someone in another country, click on Send to Friends or Family Abroad and then follow the onscreen instructions to make a payment using Xoom.
Enter the amount you want to send. Use the numeric keypad to enter the amount you want to send. If the currency below is selected incorrectly, change it to the type of currency you need.
Select a payment method, after that, all the payment methods connected to your account will appear.
When paying through a linked bank account or PayPal balance, no commission is charged. When paying with a bank card, the payment will be charged. The payment is displayed below the payment type.
If your PayPal balance is less than the payment amount, then PayPal will use the funds from the account, and the remaining amount will be deducted from the default bank account or card.
This is all you have to do, it’s simple, fast and practical. Despite the fact that all these actions seem quite exhausting, once you register, you know that you are protected from fraud. Transfers in the same currency are completely free. PayPal is best suited for those who regularly make international transfers. So yes, have in mind that PayPal, which you were using only for shopping, can also help you with money transfers.
WorldRemit
WorldRemit is an online money transfer service that allows people around the world to send money to their friends and family abroad.
The company was founded in 2010 by Somali migrant Ismail Ahmed while studying at a university in London, who found an opportunity to make money transfers cheaper and make sending money easier.
Payment methods vary greatly as well, but include (depending on the country) wire transfers, debit and credit cards, SOFORT, Apple and Android Pay, Poli, Interac, ACH, and Trustly. In the United States, WorldRemit offers money transfer services from all 50 states and, according to TechCrunch, “they are currently looking to expand further in Asia.”
WorldRemit is a low-cost alternative to traditional money transfer services, and the fact that you can transfer money anytime, anywhere using the WorldRemit website or mobile app makes it a very convenient service. There is no need to go to the agent, stand in line and wait. Everything happens online, which means that WorldRemit’s fees are more affordable than many of its competitors, and its customers save on costs.
How WorldRemit works:
- Open an account. Go to the WorldRemit website and open an account for free
- Enter your recipient details. Tell WorldRemit where and to whom you need to send money
- Customize your translation through WorldRemit. Enter the transfer amount and how you want to pay for the transfer
- Pay for your transfer. Transfer funds from a local bank account or pay with a debit or credit card
- Let WorldRemit do the rest. WorldRemit will convert your money to the recipient’s currency and send it to him through the selected payout option.
Here is another option to safely transfer your money. If you are in Vietnam and you want to urgently send money to someone overseas, you have a very wide range of possible options to choose. Now let’s see what every sender have to consider while transferring money.
General tips for international money transfers
1. Compare the cost of a transfer from several providers
There are two types of costs: down payment and exchange rate markup. Find a provider that offers the cheapest combination of low fees and the best exchange rate you can get. Usually, non-bank online providers offer cheaper transfers than banks.
2. Know how exchange rates work (and how to find the best one)
The exchange rate is the price of one currency in relation to another currency. For example, if you want to convert US dollars to Euros, you should check how much one US dollar is worth in Euros. Most translation providers won’t give you the exchange rate you find on a currency exchange platform like Bloomberg.com (or when you exchange rates on Google), but a currency platform can be a useful starting point to find out what the best rate looks like in this minute. When checking the exchange rate for an international transfer using services such as Western Union, focus on the amount in foreign currency. The higher it is, the more money your recipient will receive.
3. Avoid paying by credit card
This is an option for some providers, but there may be a higher down payment and your credit card issuer may be responsible for costs such as interest and cash advance. If you need fast money delivery, use a debit card. A transfer paid directly from a bank account is usually much slower.
