Chinese investors pour into Vietnam's property market Vietnam's property market has attracted a large number of Chinese investments over the past few years. According to the Ho Chi Minh City Bureau, in 2019, the total investment of individual investors from China in Vietnam's real estate market reached nearly US$3.5 billion. However, recently, due to the impact of the global epidemic and other complex factors, Vietnam's property market has undergone a significant adjustment, which is serious.
The large-scale entry of Chinese investment has caused Vietnam's real estate market to overboom in a short period of time. However, this boom is not based on economic fundamentals and real demand, but more like a bubble fueled by speculation. Once the bubble bursts, there will be a sharp correction in house prices.
With the outbreak of the COVID-19 pandemic, the global economy has been hit like never before. Vietnam, an important part of the global manufacturing industry, has also been hit hard. As a result, many Chinese investors who had planned to buy a home were unable to continue paying for their homes because of a broken capital chain.
In recent years, in order to control the overheating of the real estate market, Vietnam** has begun to adopt a series of regulatory policies, including restricting foreign investors from buying real estate and raising real estate taxes. The introduction of these policies has undoubtedly increased the investment risk for Chinese investors who have already invested a lot of money in Vietnam's real estate market.
For these reasons, when Vietnam's property market crashes, the people who suffer the most are Chinese investors who have invested heavily in Vietnam's real estate market. According to statistics, more than 80% of Chinese investors have suffered losses in this property market storm.
The collapse of Vietnam's property market has sounded the alarm for all investors. Whether it is domestic or overseas investment, it is necessary to be cautious, rationally analyze the market situation and risks, and avoid blindly following the trend and opportunism. At the same time, it is also necessary to pay attention to policy changes in the target countries to deal with possible risks.