Vietnam’s open policy for foreign investment in property, particularly real estate, since 2015 has helped the country achieve tremendous economic growth. This lucrative market attracts buyers and investors from all over the world such as China, Hong Kong, Korea, and Singapore. These buyers have expressed a strong desire to invest in this booming country especially Hanoi and Ho Chi Minh.
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This real estate buying and investing trend will not slow down in four or five years. Instead, it will continue to grow steadily, presenting a profitable opportunity for foreigners. The economy in Vietnam is one of the fastest-growing globally, with 7.1% and 6.8% growth recorded in 2018 and 2019 respectively.
Hence, growth has a significant effect on the real market. Also, the surge of middle and high-income groups has made housing and property affordable to many Vietnamese and foreigners. Every year, 1.5 million Vietnamese people out of the 95 million population join the middle-class. This is why more and more foreigners come to set up a business in different industries. Real estate industry is one of them.
But can foreign investors set up a real estate company in Vietnam? Yes, foreigners can do that with a 100% foreign-owned company.
How to Set up a Real Estate Company
The minimum legal capital to set up a 100% foreign-owned real estate company for your Vietnam property investment is VND 20 billion. The company setup process takes approximately 20 to 30 business days.
Here are the general steps for setting up a real estate company in Vietnam:
- Apply for an investment registration certificate.
- Obtain a business registration certificate.
- Register the company stamp.
- Open a bank account for the company.
- Make payment for license tax and carry out the beginning tax and accounting procedures
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Real Estate Business Types
The most common type of legal entity for foreigners is the foreign-owned real estate company. Based on the type of the real estate business activities, a foreign-owned real estate company can be categorized into the following:
Real estate brokerage service
To offer real estate brokerage service and must have a minimum of two people with a real estate brokerage certificate.
Real estate business
To perform real estate trading such as house and building rental for sublease, house and building construction on the land, involvement in part or total of real estate projects from investors, and others.
Real estate management and consultancy services
To provide real estate management and consultancy in compliance with the Vietnamese Law.
Real estate trading floor service
To give real estate trading floor services and is required to have at least two people who possess a real estate brokerage certificate. One of the two people must be the trading floor manager.
How Cekindo Can Assist with Property Investment in Vietnam
The first step to Vietnam property investment is doing market research and understanding the real estate sector in Vietnam. A great place to start is to connect with professionals in the Vietnamese property industry who can provide you with insightful feedback and ideas. With Cekindo, you can obtain a lot of insider information regarding Vietnam property investment and how to set up a real estate company.
We are your trusted consultant who has in-depth knowledge and can give you a realistic perspective on starting and running your business in this dynamic economy. Talk to one of our experts at Cekindo and we will give you advice on the most profitable and efficient way to set up your business in Vietnam. Fill in the form below.