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The COVID-19 outbreak has taken the world by storm and forced countries into lockdowns and governments to close down schools, restaurants, bars, and other establishments.
Vietnam acted quickly and has seen a comparably low amount of COVID-19 cases, but it will inevitably affect the economy badly.
In this article, we explain how Vietnam’s real estate market has behaved in previous years and how it behaves due to this outbreak. We also write weekly updates about the current situation in the country.
Vietnam’s Ministry of Health’s tally of confirmed cases of COVID-19 remained at 324 as of May 21st. 264 of the patients have recovered and been discharged from hospitals.
The International Monetary Fund (IMF) has claimed that Vietnam’s growth may slow down to 2.7% in 2020, but may pick up to 7 percent in 2021.
Foreigners are still not able to enter Vietnam until further notice. Diplomats, officials, foreign investors, experts, and skilled workers are exempt.
Vietnam’s Ministry of Health’s tally of confirmed cases of COVID-19 remained at 288 as of May 14th. 252 of the patients have recovered and been discharged from hospitals.
Vietnam repatriates overseas Vietnamese that are stuck, working, or studying overseas. 24 persons that were repatriated from Moscow on 2020-05-14 tested positive for COVID-19 and were sent to quarantine on arrival.
29 days have passed since Vietnam recorded any new corona cases.
As of May 7th, the confirmed cases of COVID-19 remained at 271. 232 of the patients have recovered and been discharged from hospitals.
Public beaches in places like Da Nang, Nha Trang, Binh Dinh, Khanh Hoa, Quang Nam, Quang Ninh, Thanh Hoa, and Nghe An have reopened, yet with social distancing restrictions. Besides, tourism activities resumed in Ha Long Bay and Bai Tu Long Bay from May 1.
The International Monetary Fund (IMF) expects Vietnam’s economy to grow 2.7% this year, less than half the 7% rate in 2018 – 2019. Vietnam also suffers hard due to halted tourism, a sector that generates 10% of GDP.
Vietnam’s Property Market in the Past Years
Vietnam opened to foreign investors in 2015 and has grown with an impressive rate since. In 2019, the economy grew by around 7%, a number that will decrease in 2020 due to the SARS-Cov-2 crisis.
The market suffered from a housing bust in 2009, recovered in 2013, and grew much from 2015. Foreign investors see Vietnam as one of the most interesting markets in Asia due to the following reasons:
- It’s one of the fastest-growing economies in Asia
- Eased foreign ownership regulations since 2015
- Increased manufacturing and investments
- Booming tourism
- Preferable demographics and a growing population
- High yields
Worth mentioning is that the GDP per capita has increased almost sixfold since the 2000s, from around USD 390 to USD 2,264 until 2018.
Thanks to increased individual wealth among the Vietnamese and a greater interest among foreigners, numerous new property developments have popped up, boosting prices. Continue reading COVID-19’s Impact on Vietnam’s Real Estate Market