While the average price of apartments in Hanoi has reached new heights, with supply primarily concentrated in the premium and luxury segments, there are still no signs of a price slowdown.
According to HSBC, Vietnam is not immune to a notable global trade slowdown – in other words, “pay-back” time has arrived.
As Danang and Nha Trang has expericenced a slowdown in second-home supplies, non-traditional markets such as Binh Thuan and Ba Ria-Vung Tau are emerging as next hotspots.
Clinker and cement sales fell 0.5 per cent in the first four months through April as a result of slowdown in domestic market and exports.
The real estate market is undergoing a tightened credit and lack of supply.
If there are stricter visa regulations, the growth of Vietnam’s tourism would be slow down, according to deputy head of mission at the British embassy in Vietnam Steph Lysaght.
“Growth will need to rebound from October's slowdown over the rest of 2017 to help meet the GDP target of 6.7 per cent growth,” said Andrew Harker, associate director at IHS Markit.
Stronger export growth and a continued rise in investment suggest Viet Nam’s GDP growth will go back above 6.5 per cent in 2017, after a slowdown to 6.2 per cent in 2016.
Notwithstanding the question marks over Vietnam’s economic growth, private equity firms continue to remain bullish about the country’s investment landscape. For local and regional players, this is an opportunity to exit to global players looking to expand in the country.
