If you are looking to invest into emerging South East Asia property market, these few countries will be likely your investment destination target: Myanmar, Cambodia, and Vietnam property. As Myanmar condominium law for foreigner has not fully established yet thus Cambodia and Vietnam property will be your top investment destination.
Cambodia and Vietnam Property become investors’ favourite because both of countries offer
- Strong economic growth
- Affordable – low investment amount therefore it provides high potential of return
- High rental yield
- Allow foreign ownership
If you consider investing in either of this country, the question is which country offers a better return of investment? Let’s look at the economic data as well as the tax policy of both countries.
| Vietnam | Cambodia |
Average Past Economic Growth | 6.3% | 8.2% |
Forecast Future Economic Growth | 6.3% | 7% |
Property Tenure (Foreigner) | 50 Years | Freehold |
Currency Transaction | Vietnam Dong | US Dollar |
Employment Rate | 76.2% | 82.8% |
Gross Rental Yield (Hanoi and Ho Chi Minh Vs Phnom Penh) | 7% | 10% |
Property Price Growth in 2016 | 7.4% | 7.4% |
Property Price In Prime Location (in USD) | From 1xxK | From 1xxK |
Taxes | Vietnam | Cambodia |
Rental Income Tax | 20% | 14% |
Capital Gain Tax | 0.1% | 0% for individual, 20% for company |
Inheritance | 10% if property above VND 10 Million | 0% |
Source: Global Property Guide: Taxes, Property Price Growth; World Bank: Average Past Economic Growth; Asian Development Bank: Forecast Future Economic Growth, Employment Rate
Looking at the data above, Cambodia is offering higher rental yield as well as lower risk because it allows freehold ownership as well as US Dollar real estate transaction so investors are protected from the volatility of local currency value.
In term of taxes, unless you are buying the property under company which has 20% of capital gain tax, Cambodia tax policy is also lower if buying under individual name compare to Vietnam.
Best Collection Of Cambodia Property By Singapore Public Listed Developer
Freehold
Phnom Penh Most Prime Location
The Only Grade A Office Below Shangri-La Hotel
Developed By Singapore Public Listed Developer
Very Affordable, Only From USD1xxK
Freehold
Phnom Penh Most Prime Shopping District
First and Only Shop/Restaurant Available For Investment
Developed By Singapore Public Listed Developer
Very Affordable, Only From USD1xxK
Freehold
Phnom Penh Most Prime Location
The Only Luxurious Apartment Integrated With Shangri-La
Developed By Singapore Public Listed Developer
Very Affordable, Only From USD1xxK
D1mension @ Ho Chi Minh With Rental Guarantee 7-8% Per Annum
- Developed By Reputable Singapore Developer, Capitaland
- The First Branded Residence available for private ownership, located in the center of Ho Chi Minh City
- Property management and round-the-clock concierge services provided by award winning The Ascott Limited
- Coveted location in Ho Chi Minh City’s prime District 1
- Rental guarantee 7-8% per annum