Vietnam’s two major cities, Ha Noi and Ho Chi Minh city, have contributed to the country’s higher rank in the 2020 Global Real Estate Transparency Index (GRETI).
Steady advances of the two metropolises have helped Vietnam reach the 56th place in this year’s ranking released by market researcher Jones Lang LaSalle (JLL). The country has become a “semi-transparent” real estate market for the first time. It is also named among top global improvers, alongside regional peers – Thailand, the Philippines and Indonesia.
Over the past 10 years, Vietnam has become a top destination for manufacturing in Southeast Asia and attracted significant foreign investment, said Stephen Wyatt, Country Head of JLL Vietnam. “Vietnam will need to continue improving the rankings if it wants to attract more foreign investment.”
Following on from steady advances over the last two surveys, Ho Chi Minh city has made further progress on regulatory enforcement to enter the “Transparent” tier, according to JLL.
“Vietnam has made further progress on the regulatory front with government bodies tightening their oversight to ensure rules and regulations are being adhered to in areas such as land-use planning and lending standards,” the firm said in its GRETI.
“The country’s strong economic prospects have drawn significant interest from both occupiers and investors, and this has led to increased competition and service offerings from property management companies.”
“These changes have helped to push Vietnam into the ‘Semi-Transparent’ tier,” it added.
The 2020 Index is launched at a time of massive economic and societal disruption where the need for transparent processes, accurate and timely data and high ethical standards are in closer focus.
The backdrop of COVID-19 is also ensuring that transparency within Asia Pacific’s real estate legal and regulatory systems is more important than ever to global investors, as they look to deploy approximately 40 billion USD in dry powder capital into the region.