A KAZE Perspective: 2019 Interior Design Trends in Vietnam

By: Katie Kinnon

Find out what it takes to be an interior design trendsetter in Vietnam

KAZE Interior Design Studio creates trends from District 2 of Ho Chi Minh City

The upcoming interior design trends for 2019 in Vietnam, according to KAZE

With any design industry, whether it’s fashion or interior design, people always want to know what the upcoming design trends are. Follow City Pass Guide as we speak with the team at KAZE Interior Design Studio in Saigon to understand some of the major interior design movements of 2019.

KAZE Interior Design Studio recently reached their 10-year milestone since the founding of this innovative firm. With over 100 high-profile projects across Vietnam and Cambodia completed during the last decade, KAZE is undoubtedly one of the top interior design studios in Vietnam.

KAZE Upcoming Design Trends

What It Takes to Be an Interior Design Trendsetter in Vietnam

While design trends come and go, such as the industrial style design we currently see everywhere in Saigon, Fong-Chan Paw Zeuthen, the owner of KAZE Interior Design Studio in Ho Chi Minh City’s District 2, explains that she doesn’t like being tied down to what’s popular.

“I hate to be a prostitute to anything trendy.” She has never wanted to be a fan of other people and even from a young age, she has always believed that people should be a fan of themselves.

She doesn’t consider herself to be trendy in any way; in fact, her husband is the trendier one of the two them, in her opinion. However, Fong-Chan does believe that her trends are born out of functionality first and then followed by unique design.

“Interior design in Ho Chi Minh City is vastly different to that in Europe and doesn’t always focus on function first. That’s where KAZE really stands out from the crowd because it targets what people want and need. But they don’t always know it until they experience it.”

KAZE Upcoming Design Trends

Creating Trends at KAZE Interior Design Studio in Saigon’s District 2

Fong-Chan believes that what she calls “positive” trends come from making a person feel good. In terms of KAZE Interior Design Studio’s measurement of success, if the intended users of a project like it and feel good when they walk into the room, then Fong-Chan and her team have done their job.

For KAZE’s larger projects with notable companies like Marriott, branding guidelines have to be adhered to, which can be rather restrictive. So, finding the balance of designing something innovative within certain limitations is often a challenge, but it’s one that can be inspiring.

KAZE Upcoming Design Trends

A great example of this is KAZE Interior Design Studio’s work for the MIA Resort in Mui Ne. Fong-Chan strives to tell a story in her projects, which can encompass everything from the ambiance of a space, to the way a person sits on a chair and how they feel when they do so. MIA Resort’s rooms and bungalows are at a high rate of occupancy on a year-round basis. Guests love the resort and come back because they like the way they feel when they stay there. Whether it be the casual beachside ambiance or the calming colours that reflect the ocean, every detail of a KAZE project’s story is carefully thought out and intricately placed into the interior design of a space.

KAZE Upcoming Design Trends

Walking around the KAZE Interior Design Studio office, based in Saigon’s trendy District 2, there are a lot of brightly coloured fabric samples scattered over the team’s desks. In the corner of the room, one person is watching a video on how to find the perfect lighting to create a specific ambiance. On the other side of the room, two team members are sat around a computer discussing how to improve the detailing of the furniture in a digital sketch. The decisions these people make have been influenced by their own interpretation of things they have seen, felt and experienced themselves.

Interior Design Trends in Vietnam 2019, according to KAZE

When asked, “What are the upcoming design trends for 2019?”, KAZE’s project designer Maria explains that nature will be a huge design theme for the year: “As people are focused more than ever on their environmental impact, so they will turn to nature for inspiration. Colours like moody hues of blue, forest green and cheery yellow will be introduced to our design palette, and calming earthy tones like mushroom grey will be used in materials. You may also see a lot of wood incorporated in our interior design projects this year.”

Designers and construction teams are also becoming more aware of their waste and construction trash production, and so they are finding new ways to be more sustainable and eco-friendly. KAZE Interior Design Studio is a leader in this sustainable movement. Fong-Chan explains that she has always pushed the company to be environmentally conscious and aims to use materials that are sustainable and long-lasting. However, she insists that there is more to be done and everyone can always improve.

KAZE Upcoming Design Trends

KAZE Interior Design Studio’s junior designer Duong believes that the upcoming designs trends in 2019 will include block colours and in particular, the shade ‘living coral’, which is a retro orangey-pink, as well as stylized graphics. More specifically, Duong explains that vhils are on the rise. Originally created by a Portuguese street artist, vhils are typically made by scratching the surface of building exteriors to create faces or skylines and make the exterior beautiful again. Duong expects to see more digital interpretations of vhils in 2019 with fresh, exciting patterns used in the background. He envisions seeing physical or digital versions of them in hotels as well as restaurants and cafes.

When a Trend is More than a Trend - Saigon’s KAZE and Sustainability

It’s clear to see that KAZE Interior Design Studio is one of the major style and design influencers in Vietnam. The choices they make in their large scale projects will likely filter down and inspire smaller design firms and individuals. Fong-Chan hopes that others will start to take into account that KAZE’s success is largely to do with the team’s ability to put their customers first and focus on functionality before aesthetics.

It is clear that a major design trend for 2019 is likely to be a strong emphasis on the colours in nature. But what does that mean on a deeper level? Fong-Chan tries to encourage her team to see beyond just the “Instagram appeal” and focus on what’s behind the pretty picture. For example, the emphasis on nature-inspired design can also be used as a turning point for many people in the design industry to reevaluate their environmental impact as an homage to the beauty of their surroundings. In this way, KAZE Interior Design Studio hopes to enhance the experiences of people in Saigon not just through trends of fantastic form and function, but also creating enduring positive effects through sustainability.

Image source: KAZE Interior Design Studio


Quality over Quantity: KAZE Confronts Cheap Construction

By: John Mark Harrell

Foreign and local developers often prioritise profits over future-proofing.

The next generation is pushing for a bright future.

One of the secret “perks” to living in Ho Chi Minh City is that, for most residents, an alarm clock isn’t necessary. Every morning at around 7:00 am, 7 days a week, construction crews diligently start their work, ostensibly eager to do as much possible before the sweltering heat of midday. The shrill shouting of workers and the rumbling of jackhammers drilling into concrete is the near-constant soundtrack of one of Southeast Asia’s most rapidly-developing urban hubs.

In the past decade, HCMC has seen some dramatic new developments radically transform the city’s skyline, from modern urban developments in the Phu My Hung ward of District 7, to the Vinhomes mega-complex and Landmark 81, which is currently Southeast Asia’s tallest skyscraper. Relatively loose zoning restrictions have allowed massive developments, for better or worse, to break ground just about anywhere that space allows in this growing metropolis.

KAZE

Elsewhere in Vietnam, huge new projects in major urban centers and tourist destinations like Nha Trang, Da Nang, Phu Quoc, Ha Long, and Hanoi have expanded rapidly to attract more tourists, provide more housing and office space, and lure foreign investors. Vietnam’s economy is one of the world’s fastest-growing, with steady increases in foreign investment, tourism, and GDP predicted well into the next decade.

Is Growth Outpacing Sustainability?

What does this rapid growth mean, practically, for locals and expats living and working in Vietnam? More foreign investment, as well as foreign development companies breaking ground on new projects in Vietnam, could introduce their expertise with more advanced and modern building techniques, including sustainable materials and future-proof designs, in a relatively young development market.

According to Danish architect Fong-Chan Paw Zeuthen, founder of KAZE Interior Design Studio in Ho Chi Minh City’s District 2, this is most often not the case. 

“Big investment buyers come to Vietnam to invest in a development project and flip them for a 20% yield,” she says. “So the local real estate market is getting watered down with cheap, quick projects that turn a high profit margin regardless of actual build quality.”

This attitude and mindset toward development makes it very difficult for interior design professionals at KAZE to take on new projects with the full extent of their expertise. “Consultants are used more as tools, not valued for their consultancy,” Fong-Chan says.

KAZE

In practice, this means developers most often seek the cheapest and most cost-effective solutions, rather than the smartest solutions that will save them and their end users from trouble further down the road. Interior design firms like KAZE, unfortunately, are often sought out merely to “rubber stamp” the process the developer has already determined in advance. With little to no thought given to environmental concerns and sustainability, this is a growing concern for many professionals who work with local developers.

Part of the problem stems from the young development market in Vietnam interacting with larger development conglomerates investing from afar. “Locals often don’t have lots of experience,” Fong-Chan says. “And [foreign developers] don’t have experience working with locals. Some developers have no idea what they’re doing—they’re first time developers.”

Newer technological advancements and sustainable building practices are eschewed in favour of more old-fashioned techniques that are cheaper and produce faster results. But those results aren’t always pretty; seeing cracks on the walls of brand new buildings in Vietnam is a common phenomenon, largely due to the construction materials, like bricks and mortar, not given enough time to dry out and “settle” before completing the construction process (as they dry, their composition and dimensions change). 

Building materials are most often chosen based on how cheap they are—not whether their production or use is environmentally-friendly. Not only can they be damaging to the environment, however, they can actually be hazardous to human health as well. White asbestos is still widely-used in construction projects throughout Vietnam, and it wasn’t until 2018 that the government unveiled a roadmap to eliminate its use entirely by 2023.

One only has to look to the development of other huge metropolises throughout Asia to see similar patterns from their earlier stages of development. The infamous high-rise apartments in Hong Kong, for example, are exemplary of cheap, quick construction methods with little concern for end users and low-quality materials that degrade quickly overtime and increase long-term costs. 

“In many cases we’re creating really bad living environments,” Fong-Chan says. “We’re not learning from mistakes that the other big cities have made.”

Beyond the developments themselves, these new high-rises often put a strain on local infrastructure. As the city eliminates green spaces due to the influx of traffic brought about by huge new housing developments, unseen problems are just beginning to come to light. In its current state, no water treatment or sewage system can support the number of new high rises being built at such a dizzying rate. For a city already struggling with pollution and increased flooding due to climate change, all these new developments could place even more pressure on an already overloaded system.

Hope for the Future

So what does this mean for the future of Vietnam? It’s a complex problem that developing countries all over the world struggle with as investors respond to market demands. 

“Ultimately, the demand for quality is missing,” Fong-Chan points out. “Developers are not saving the environment or costs for the end user. They’re just looking for a quick turnover.”

Because of inefficient building materials and lack of energy-saving methods, it is most often the end users who are footing a higher monthly bill as a result. If foreign investors are only fixated on short-term returns, many of these new developments will actually cost property owners and business owners more money further down the line.

KAZE

The challenge, therefore, is to increase consumer demand for buildings that are not just fashionable and functional now, but whose design and quality will stand the test of time. As the younger generation becomes more conscious of the environment and their own health, through growing global interconnectedness and education, there remains hope for the future.

Increasingly, we should be asking: should big foreign corporations not take some responsibility for the host country they are building in and making money off of? Shouldn’t we demand that they bring more innovative, advanced, sustainable solutions, instead of just exploiting the environment for a quick profit?

“KAZE is in the industry, questioning the direction we’re going as a community,” Fong-Chan says. “We are always pushing to create new sustainable communities with new developments.“

KAZE

New developments do create new communities that didn’t exist before. It is in these developments that the tremendous opportunity lies to build something that exists in harmony with the environment and promotes human health and happiness—not just for a quick return now, but for the benefit and economic well-being of Vietnam for generations to come.

Image source: KAZE Interior Design Studio


A Day in the Life of KAZE Interior Design Studio in Ho Chi Minh City

By: Katie Kinnon

What is Functional Beauty? Fong-Chan Paw Zeuthen from KAZE Interior Design Studio explains.

Time for Gelato! KAZE Interior Design Studio goes on location.

Collaboration makes it happen; KAZE’s style of brainstorming.

The word KAZE is Japanese for ‘wind’ it represents expansion, growth and freedom of movement. Danish architect Fong-Chan Paw Zeuthen chose this name for her boutique Vietnam based interior design studio when she launched it in 2009 as a reminder to never allow KAZE’s sense of style and knowledge stagnate. The goal of each KAZE designed projects is to have the same sense of movement, lightness, and power as a gust of wind.

KAZE Interior Design Studio

KAZE interior design studio, has been going strong for more than 10 years and it is one of the top interior design studios in Vietnam. The firm has taken on more than 100 high-profile projects across Vietnam and Cambodia. Specialists in development in the fields of Hospitality and F&B, the KAZE team has transformed the style and spirit of major projects such as Le Meridien Cam Ranh Resort & Spa by Marriot, Liberty Central Saigon Citypoint in Ho Chi Minh City and DIAMOND ISLAND PENTHOUSE & VILLAS by Kusto.

KAZE Interior Design Studio

KAZE Interior Design Studio’s Idea of Functional Beauty

Fong-Chan has an unwavering commitment to what she calls her “building for humans” philosophy. This means nothing goes into the space that will not be useful, comfortable, and aesthetically pleasing. It should be a usable space, not simply a pretty picture.

As Fong-Chan puts it, “you can tell a lot about how a person runs their company by the way the toilets are kept.” If management only cares about the aesthetics of a company and not the functionality something has gone wrong.

Far from the stark, harsh modernity that can be found in certain ill-designed spaces, KAZE Interior Design Studio’s projects are categorised by beauty, light, warmth and innovation.

But what happens between concept creation and the moment that someone walks into a fully realised KAZE designed space? City Pass Guide acts as interior designer for one day to learn more about the processes, inspirations and, at times, frustrations of being the leading interior design studio in Vietnam.

KAZE Interior Design Studio

Mornings in the Beehive; KAZE Interior Design Studio Gets Ready to Get Creative

When someone walks into KAZE interior design studio in Saigon’s District 2 it is clear to see that the office is a hive of energy where anything and everything can instigate inspiration. Fong-Chan has created a unique environment that is the right balance of easy going and innovative. Interior design books stacked on shelves range from tomes about types of marble used in 15th century Italy to glossy coffee table books filled with new design trends. The volumes propped open suggest the team study hard and the single-use plastic free ethos provides an insight into the environmental focus of KAZE’s design projects.

The open plan office is fairly minimalistic in terms of design with a mix of dark wooden desks and large glass windows that let in lots of natural light. While the monochrome colour scheme enables the raw materials that are scattered around the office to pop.

Desks are covered with brightly coloured fabric samples, varying sizes of intricately detailed tiles and project sketches. It is mind-boggling to imagine how all these snippets of inspiration can possibly turn into a finished project. The different textures, colours, patterns, and shapes are the starting point for the designers to focus their ideas and start putting a design idea into actuality.

KAZE Interior Design Studio

Individuality is the Key to Creativity

Each designer has a different style of working. A junior designer named Duong loves following new trends and finds ways to incorporate them into his work. Maria, a project designer is detail oriented. Part of her morning is typically spent researching ways to use historical styles while maintaining modernity. Other teams members contribute their individual senses of style and focus to create an environment that is always in “creation-mode”. KAZE is a boutique company of only 28-30 employees, this enables Fong-Chan to get to know her team on a personal level and get a sense of their likes, dislikes and work style.

KAZE Interior Design Studio

When Fong-Chan walks into the office she immediately commands the room. Despite having a cute dog following her around, she is a no-nonsense woman. She knows what every single person in the office is working on and exactly what they will be doing next. Like any great mentor, Fong-Chan looks after her team and ensures to regularly spend time with each and every member, going through what they are working on the moment, challenges they are facing and provide guidance on how they can improve. She takes pride in teaching every single member individually and she will push and challenge them until they unlock their potential.

As we walk through the office and take time to speak to the team members, one thing is clear, Fong-Chan’s team finds her to be an inspired leader.

Diving into the Project’s; an Afternoon at KAZE Interior Design Studio

All of KAZE’s projects are created from a story, they are what gives a project meaning. These stories are inspired by the brief from the clients, the space and location of the project as well as real-world experiences the designers have had. Fong-Chan organises annual design trips for the team to experience new things around the world and find new inspiration. Some of their most recent trips include Bangkok, Taiwan, and Milan. Without these trips, designers find inspiration from pictures on a computer and can’t really understand the emotions certain places can evoke or how they can awaken new senses, for example, the sense of achievement earned from reaching a mountain peak or tasting real gelato in Italy for the first time.

KAZE Interior Design Studio

Back in the interior design studio in Ho Chi Minh City, these experiences enable designers to create incredible projects together. In a small company like KAZE, the office feels like a symphony masterpiece, everyone is playing their own instrument but when put together it makes a beautiful finished product. In one corner, the junior designer is sketching out multiple designs to work out the best places for the lighting fixtures to create the right ambiance for the project. On the other side of the room, the project designer is using miniature furniture models to understand the way people would naturally enter a room and where they would want to sit down. Down the small hallway, a headphone clad designer is testing out the acoustics—he is listening to how the noise of ocean waves resonate against wooden walls versus concrete walls. The whole process is fascinating to watch and Fong-Chan is the perfect conductor.

Fong-Chan explains to us that KAZE has a “design language” and everyone needs to be able to speak it. This helps the KAZE team effectively communicate, brainstorm and develop ideas with each other as well as to understand all the ideas going on in Fong-Chan ’s head. For those who don’t speak the ‘language’ Fong-Chan spends her time managing their expectations, sometimes this can be with clients who don’t really know what they want and sometimes this can be with her own team who haven’t quite come to grips with their part of the project story.

Collaboration, Creation and Coffee in Saigon’s District 2

Every Tuesday and Thursday the KAZE team gather for a coffee break to socialise and discuss their ideas. Fong-Chan explains that there is a real buzz in the office during these meetings. Everyone suddenly goes from working quietly at their desks to talking loudly in groups, getting excited about project ideas and working out how their concepts can be developed. This collaborative effort helps to solve problems and generate new ideas.

KAZE’s Friday afternoon workshops are a fascinating way to experience the ins and outs of what happens during a design process. Each member picks a designer or design topic and delivers a presentation on it, detailing the history, inspiration, and work behind it. The workshops encourage the team to learn new things, try new ideas in their work and delve into a new world of design they may never have realised existed.

KAZE Interior Design Studio

Hometime

Burning the midnight oil is not a strange concept at KAZE, although it may not quite be midnight, many of the team stay after hours to develop their design knowledge and experience to improve their work. They work hard to ensure their part of the project is just right. They all dedicated and strive for perfection. A passion for design is the beating heart of KAZE, as one of the top interior design studios in Vietnam, it is clear to see that only those who work hard and are passionate about their ideas achieve success in this demanding profession.

KAZE Interior Design Studio

Image source: KAZE Interior Design Studio


Gateway Thao Dien: Raising the Bar for Luxury

By: Aleksandr Smechov

Gateway Thao Dien is Ho Chi Minh City’s answer to high-end, exclusive living

Investors may be surprised by the level of commitment Gateway Thao Dien has shown. It seems delays and misinformation are common complaints for anyone investing in property in Ho Chi Minh City. Luckily, Gateway Thao Dien has delivered on its word, and even provided added value for its investors - something rarely seen in the local real estate market. There are four ways Gateway Thao Dien has kept its commitment to its demanding home buyers.

On Point and On Time

To date, Gateway Thao Dien has reached all of its milestones on time. Construction has been carried out in a timely manner. From the beginning of October, the status of the project has been going along smoothly: Tower A (The Aspen) and Tower B (The Madison) are expected to complete level 20 and 22, respectively, this November. This means the projects is on track for its expected completion of date of the last quarter of 2017.

World-Class Partners

Backing Gateway Thao Dien are a number of highly reputable contractors and suppliers. These companies all have outstanding track records, and were carefully chosen for their professionalism. Gateway Thao Dien put much effort into acquiring the support of these partners - and buyers can clearly see the results in the quality of the residential complexes, the timely execution, and the customer support given throughout.

Cofico: Since 1975, Cofico has been renowned as one of the leading contractors for both civil and industrial projects in Vietnam. Honored to be appointed as the main contractor for Gateway Thao Dien, the team at Cofico is making every endeavor to satisfy the developer’s requirements for progress, quality and safety. The company’s brand name will act as a guarantor for the construction quality of the project.

Mace: In charge of construction management and supervision of the Gateway Thao Dien project, the Mace Group is a global consulting and construction firm employing 4,600 people across 70 countries. Their management and supervisory team are actively ensuring that the high quality products selected by Gateway Thao Dien are given the proper level of treatment during installation.

Searefico: This company is responsible for providing Gateway Thao Dien with integrated mechanical and electric solutions, as well as equipping the project with modern, high quality products and utilities. Lifts have been installed from world-renowned Swiss elevator company, Schneider; Daikin air-conditioners and Mitsubishi generators have also been added to ensure quality airflow and uninterrupted power. Using Building Information Modeling (BIM), SEAREFICO helps minimise problems in the construction process, ensuring quality installation and quicker progress.

Arup: Known for their intelligent, sustainable structural design, among other high-quality services, Arup is an international firm with 13,000 staff across 42 countries. They have been responsible for some of the world’s most famous structures. They have assisted Gateway Thao Dien with the tower blocks’ structural design, as well as the project’s penthouse floors. Gateway Thao Dien is one of the tallest residential buildings in HCMC, and Arup ensures all the buyers this will be one of the safest places to stay, in terms of structure.

Eurowindow: High-end windows are supplied by Eurowindow. The high-tempered glass is soundproofed up to 40bB, with powder-coated aluminum frames. Complying with AAMA2604 standards, Eurowindow will offer a 20 year warranty for all of its products.

A Surprise Upgrade

Buyers will be delighted to know Gateway Thao Dien’s developers have upgraded many of the appliances that were initially agreed upon. In particular, most bathroom appliances from Kohler and Toto have been promoted to Duravit and Hansgrohe. Teka kitchen appliances have been upgraded to the German Bosch brand. Digital door locks have been changed from Samsung/Yale to Häfele from Germany. Entrance and internal doors will be provided by Sunwood, with the same specifications as for their Marina One project, one of the most luxurious multi-purpose high-rises being built in Singapore.

Steep Rise in Property Value

Metro Line 1 (Ben Thanh to Suoi Tien) is the first metro line in HCMC, with a total span 19.7km and a budget of US$2.49 billion. After the development of Line 1’s master plan, numerous projects began to spring up in the vicinity of the train line. As Line 1’s construction nears completion, property values will rise for anything in the line’s vicinity - that includes Gateway Thao Dien, which is right by the metro.

Contact information:

Website: www.gatewaythaodien.com.vn

Hotline: +84 9 3205 7979

Addresss: Gateway Thao Dien Sales Gallery, 53 - 55 Nguyen Dinh Chieu, D3


The Foreign Investor Guide to Real Estate in HCMC

By: Eric Le Dreau

Are you a foreign investor and want to know about real estate laws in HCMC? Confused by the new Property Law? Indochina Legal clears up the confusion:

One of the most notable changes introduced by Vietnam’s new 2014 property law and its regulations is the revision of the right for overseas Vietnamese, foreign individuals and organisations to own residential houses, as follows:

Overseas Vietnamese (or Viet Kieus) can now own residential houses in the same way as Vietnamese citizens without further residency requirements or any limitations on the type or quantity of houses, or the terms of ownership. They must hold a valid passport with an entry verification stamp marked by the Vietnamese Immigration Department (VID) and a document evidencing their Vietnamese origin.

Foreign individuals have the right to own residential houses, subject to certain restrictions as compared to Vietnamese citizens and Viet Kieus. In order to own houses, a foreigner is required to have a valid passport with an entry verification stamp marked by the VID and cannot fall under diplomatic or consulate preferences and immunities. Requirements of residency, investment in Vietnam, work permit, social contribution and/or marriage to a local Vietnamese is not necessary for residential housing ownership. However, as to ownership duration, foreigners married to Vietnamese citizens or to Viet Kieus are entitled to an indefinite term, whereas foreigners who are not can only own residential housing for a period of 50 years. This can be extended for another 50 years, subject to approval by the provincial People’s Committee where the house is located. Unlike other foreigners, those who are married to Vietnamese citizens are also exempt from notifying the housing administration authority at the district level prior to leasing their houses to others. Apart from that, the new legal framework grants foreigners the same rights of Vietnamese in the cases of subleases, mortgages, etc. of residential housing.

real estate in hcmc

Photo by: Manh Hai

Foreign organisations are allowed to own houses provided that (i) ownership term shall not exceed the period stated in their investment certificates issued by Vietnamese competent authorities, including any extensions; (ii) use of the houses is for residential purposes only, for their personnel; and (iii) lease-out of the houses is not permitted.

It is worth noting that foreign organisations and individuals shall not collectively own more than 30% of the total number of apartments in an apartment building or not more than 250 separate houses in an area where population is equivalent to that of a ward. In addition, house ownership beyond real estate projects (e.g. a villa built by individuals) is not allowed. For national defense and public security purposes, foreign individuals and organisations cannot own houses in certain areas. With respect to these limitations, the local Department of Construction will publish on their official website the projects where foreigners cannot own houses, detailed numbers of apartments or separate houses eligible for foreign ownership, and the number of houses where foreign ownership has been recorded. To our understanding, the database is not yet completely developed for all cities and provinces in Vietnam. Meanwhile, payment for purchase or lease of residential houses shall be made via credit institutions operated in Vietnam. So far there has been no specific instruction on foreign exchange control for relevant inbound and outbound foreign funding of residential housing.

Despite certain remaining limitations, the NHL has provided a more open approach to ownership of residential housing for foreigners. The hope is that these changes will ultimately defreeze the real estate market and create a new wave of foreign investment in Vietnam.

Website: www.indochinalegal.com


Buying Property in Vietnam

By: City Pass Guide

Vietnam property ownership for expats is a dilemma that has been here as long as the expats themselves. You come to Vietnam, fall in love with the country and settle down. But where will you live? Is it going to be rental property forever? You don’t intend on leaving so why not buy? It may surprise quite a few to realise that it is not as fraught with danger as you may think. It is certainly easier than in Thailand, and there is a lot less chance of you losing your hard earned money.

Vietnam Property Law Changes

The government changed the rules in July 2015, enabling foreigners to buy their dream home here, provided they match a few criteria. Anyone buying property here now has a lease of 50 years, with the ability to sell-on and transfer the lease.

Conic Residental Building in Binh Chanh (Photo by Đức-Huy)

According to the new law, foreigners and foreign entities will only be allowed to buy or take ownership of apartments and houses in commercial projects. They will still not be allowed to buy in areas that limit or ban foreigners. A maximum of 30% of apartments within a given block and 250 houses in a given ward will be available to expats. The 50 year lease will be able to be extended in the future, although details of exactly how this will be done will change over time.

People may think that not being able to buy the land and only the building upon it is unfair, but this is the same for the local population. The government maintains ownership of the land here. Since the announcement, a property market that was already heating up has really opened up and enabled foreigners to join the Vietnam property ladder. The country already had a strong economy and a very strong and vibrant middle class.

These new rules also apply to long term Vietnamese who, living abroad, have kept up their Vietnamese citizenship. With 4.2 million Vietnamese living overseas and about 30,000 high earning foreign executives working and living here (CNBC), the potential for local real estate companies is huge.

Big Changes for Ho Chi Minh City

The drive to modernise the city has meant that developments are springing up everywhere. The new prestigious tower being built in District 1 by Vinhomes is seen as a symbol of the future. At 461 metres, the Landmark 81 tower will be the tallest building in Southeast Asia.

Photo by Vinhomes 

Vietnam’s economy has a steady growth rate of over 5-7% per year. Almost 42,000 apartments were launched in 2015 with a record 36,000 of them being sold (Vietnambreakingnews.com). Vietnam does certainly look like a great place in which to invest. In Ho Chi Minh City, The top end properties are priced at $3,000 to $5,000 per square metre. This is way below the $9,375 per square metre you would have to cough up in Bangkok (Financial Times). And yet, rental yields here are 1.5-2.5% higher than those in Bangkok, Hong Kong and even Singapore, according to VinaCapital.


Tags

IS THERE A STORY OR TIP

YOU WOULD LIKE TO SHARE WITH US?

GET IN TOUCH