Before diving deeper, ensure you’ve read my previous blogs to fully grasp the context:
After my latest three-week visit to Vietnam in March 2025, here are critical updates every foreign investor must know:
1. Vietnamese Dong Depreciation Impact on Real Estate Prices
Vietnam’s Prime Minister has openly prioritized economic growth (targeting 8% by 2025), even at the risk of higher inflation and depreciation of the Vietnamese Dong (VND) according to Thuong Gia News. This monetary easing policy is pushing Vietnamese citizens to seek safer investments, primarily in gold and real estate, causing sharp price increases.
- Real Estate Price Surge Examples:
- A plot in Ho Chi Minh City, priced at 9 billion VND ($352,147) in 2024, surged by approximately 22% to 11 billion VND ($430,402) in 2025.
- Land prices in suburban Hanoi have increased by around 20% within just a few months, with central districts seeing even steeper rises.
3. Vietnam Airbnb Regulations 2025: Short-Term Rental Restrictions
Ho Chi Minh City has banned Airbnb and short-term rentals in residential apartment buildings (Vietnam News). Only designated mixed-use buildings for tourism purposes are permitted. Hanoi, currently more lenient, may soon follow this regulatory path.
- Implications for Investors:
- Reduced potential for high-yield rental income.
- Increased focus on legal compliance, obtaining necessary permits, and tax obligations
Personal Insights from My Recent Trip
During my recent three-week stay, extensive consultations with real estate agents and project visits reaffirmed the reality:
- With a budget of around $100,000, options are severely limited to rural or small-town properties.
- Urban investment opportunities in cities like Hanoi or Ho Chi Minh require a minimum of $200,000.
- Long-term rental yields are unattractive, averaging around 3% or lower, though capital appreciation due to urbanization might offer long-term benefits.
My Initial Motivations vs. Current Realities
Initially, Vietnam was appealing due to:
- Unclear legal and tax structures enabling creative investment optimization.
- Significant opportunities to multiply investments (3-5X returns).
However, with tightened regulations, inflated market prices, and intense competition from local investors who have deep local knowledge and networks, the entry barriers are higher than ever.
Should You Invest in Vietnam Real Estate in 2025? My Final Verdict
Considering these market dynamics and regulatory complexities, I’ve decided against investing in Vietnamese real estate for now. The risks currently outweigh potential rewards, especially compared to alternative global markets.
Perhaps if major global events—such as unexpected geopolitical shifts—significantly impact real estate prices, revisiting Vietnam’s market might make sense again.
Until then, Vietnam’s real estate remains a challenging market for foreign investors without deep local insights and connections.
P.S. Trump Tariffs – April 2025 Update*
(This blog was written in March, but published mid-April)
Just weeks after wrapping this up, Trump-era trade drama made a comeback: the U.S. has announced a 46% reciprocal tariff on Vietnamese imports, citing trade imbalances and non-tariff barriers. While enforcement is paused for 90 days during negotiations, the threat alone injects serious uncertainty into Vietnam’s export-reliant economy.
If U.S. orders dry up, expect a domino effect: slower manufacturing, job losses, weaker consumer spending, and delayed foreign investment. That directly impacts industrial zones and mid-range housing tied to Vietnam’s workforce. It also shakes consumer confidence—leading to more cash hoarding and a liquidity crunch.
Long-term fundamentals are still solid, but in the short term, it’s worth proceeding with more caution—and keeping a close eye on the trade chessboard.
