Ho Chi Minh City

ECONOMIC HIGHLIGHTS

Ho Chi Minh City is the economic centre of Vietnam with a 7.5% GDP growth rate and a total FDI of US$2.8 billion in the first half of 2017. In 2016, Ho Chi Minh City’s GDP per capita reached US$5,428, over two times higher than the country’s average. The government aims to raise GRDP per capita to US$9,800 in 2020.

The manufacturing sector is seeing increasing investment into new factories, particularly from companies relocating from China where labour costs have risen to three times the average wage of Vietnam. Many multi-national corporations are locating or expanding their manufacturing plants in Vietnam. Among them are Samsung, Intel and Taiwanese mobile phone supplier Foxconn. The various industrial parks and economic zones around this metropolis of over ten million people account for around 25% of Vietnam’s industrial production. That attracts a sizeable expat population, be it either managerial staff in the factories, multi-national companies (MNCs) or international firms located here.  

The city’s business scene is very dynamic and fascinating with a young workforce with a median age of 30.1 years. There are over a million of young people coming into the labour market every year. This education-oriented and energetic generation is an important factor contributing to a unique start-up culture and a solid entrepreneur community. It is the combination of cultural vibe, flourishing start-up environment, and the concentration of cutting-edge firms and technology that draw talented people to Ho Chi Minh City. 

REAL ESTATE

Real Estate in Ho Chi Minh City has seen incredible growth in the past years, especially since the new housing law came into effect in July 2015. Increasing demand for quality homes from the vastly increasing middle and upper class as well as the influx of foreign investors have driven the property market, particularly in the high-end and luxury segment.

As a relatively young property market, Ho Chi Minh City lacks supply in the luxury segment, particularly in inner-city locations which are most sought-after by foreign investors due to the high potential for capital appreciation as well as excellent rental yield expectations. Foreign Direct Investment (FDI) is driving the influx of expats working for multi-national corporations or business start-ups which, in turn, continue to drive demand in the leasing sector, both for office space as well as quality rental accommodation.

Most foreigners are investing into properties for sale along the new metro line that leads from District 1 (CBD) along Binh Thanh and District 2 to District 9 where the Saigon Hi-Tech Park is located. District 1 and District 3 are the key business districts and home to Ho Chi Minh City’s most luxurious residences with square metre starting from US$4,500 and expected to increase rapidly over the coming years as developers are looking to launch boutique developments in city-centre location. Prices can be expected to hit US$6,000-10,000 per square metre in CBD locations, accounting for high land acquisition costs, top construction quality as well as the convenience factors.

District 2 is the most vibrant residential drive to. Especially Thao Dien and Thu Thiem are favoured by foreign property buyers and the former is popular with wealthy Vietnamese and Western expats, offering the best international schools, fantastic restaurant and shopping amenities as well as convenient access to the city centre. Thu Thiem is slated to become the new CBD with a variety of residential and commercial development starting to take off. The proximity to District 1 makes it the ideal choice for those with a long-term investment perspective.

Binh Thanh District is only five minutes from the CBD of Ho Chi Minh City. With the rising demand for accommodation in central areas, properties in Binh Thanh enjoy attractive rental return and capital appreciation and are in great demand. The area will see further transformation as inner-city land is becoming more and more scarce and the CBD is set to further expand over the coming years.

PEOPLE

Ho Chi Minh City is the most populated city of around 10 million people, with annual population growth rate at over 2 percent in 2015, one of the highest in the country. In 2015, the city’a GDP per capita is set at $5,000, twice as much as Vietnam’s average of $2,100. Migration is an important component of the city’s population, influenced by rapid economic growth, with an influx of foreigners and expatriates moving to the city during the past years. Currently, there are around 60,000 foreigners in the metropolitan area of Ho Chi Minh City, which created a huge demand for quality apartments and properties in the area. 

CUISINE

From fine-dining restaurants to cheap eats, Ho Chi Minh City has everything to offer. Food culture here is influenced by the inflow of immigrants from other provinces and countries, offering a wide range of cuisines. While authentic Vietnamese food can be found everywhere, some districts in Ho Chi Minh City are more famous for different cuisines. For example, Le Thanh Ton Street in District 1 is home to Japanese food, while Thao Dien is best known amongst expat community with its hip Western-style bistros and cafes. 

ATTRACTIONS

Ho Chi Minh City is famous for many historical monuments, iconic colonial buildings and war relics, right in the heart of the city centre. Within only one or two hours drive to the southwest from Ho Chi Minh City is the beautiful Mekong Delta – the “rice bowl” area of Vietnam with its renowned floating markets, villages and green fields. Alternatively, Vung Tau beach and Phan Thiet beach are also nearby, perfect for a weekend getaway from the busy city life.

ACTIVITIES

Ho Chi Minh City is also known as the city that never sleeps, with extensive activities going on 24/7. Being Vietnam’s definitive party city, its citizens have hundreds of rooftop bars, pubs and nightclubs to choose from for a proper night out. Many big concerts, shows and sports tournaments are also hosted here. Those who prefer more relaxed activities usually enjoy spending time with friends and family at cool coffee shops and restaurants by the river in Thao Dien, District 2.