Whilst Vietnam is still actively pursuing investments from overseas Vietnamese nationals, domestic Vietnamese-invested companies are investing abroad, notably in real estate.Vietnamese investments in the hotel and restaurant industries abroad is already worth US$1.03 billion, Lao Dong (Labour) newspaper reported earlier this month.
With the global financial crisis bringing with it opportunities to invest in cut-price real estate, buoyed by ‘Decree 22’ issued in 1999 that encouraged investment abroad, Vietnamese investors have followed the opportunities.
Last year total Vietnamese investments abroad exceeded $2.4 billion and in the first quarter of this year, 17,000 nationals travelled abroad for employment.
Vietnam’s Foreign Investment Office (FIO) revealed that USD15.3 million had been invested in six foreign property projects in the first half of 2010, with the US rising to third in the list of countries targeted.
Although limitations remain in place for investments overseas by state-owned firms, property remains relatively open from legislation, requiring approval only from the ministry of Planning and Investment, according to Viet Nam news. Most other industry investments require Prime Ministerial approval.
Vietnam ranked twelfth in countries attracting Foreign Direct investment in a recent survey conducted by A.T. Kearney and FDI could reach USD15 billion this year according to Standard Chartered Bank.