Breaking down Barriers to U.S. Investment in Vietnam\u27s Real Estate Market

Despite great progress in Vietnam’s general investment environment, barriers exist which impede U.S. investment in Vietnam’s real estate market. While Vietnam remains a socialist country, drastic liberalization of its market structure and investment laws have made Vietnam a more attractive environment for most U.S. investors. However, barriers remain for U.S. investors seeking to invest in Vietnam’s real estate, specifically property developers wishing to build tourism complexes. These barriers include weak transportation infrastructure, financial and humanitarian issues posed by site clearance, and lack of accountability in the real estate licensing system. To facilitate U.S. investment in Vietnam’s real estate, Vietnam should strategically target transportation infrastructure projects and improve infrastructure financing schemes; decrease the issues posed by site clearance through increased government participation; and increase accountability in its licensing system by reconciling the conflicting ideologies of the local and national governments and by reducing corruption. With implementation of such changes, Vietnam may attract greater U.S. investment in its real estate market