Vietnam is Asia's second fastest growing economy after China; recording an 8.4 per cent growth in 2007.
Given Vietnam's booming real estate and property sector, Malaysian investors should tap into this growing market - which has been forecast to grow more than 50 per cent per year in the next 10 years.
According to Deloitte Vietnam senior tax manager, Kevin Lam, companies such as Berjaya Kawat Group Bhd and Gamuda Corp have already paved inroads into Vietnam last year. What's more, other Malaysian companies are already in Vietnam, to conduct feasibility studies on the country's property sector.
With prime land costing as much as US$15,000 (RM48,900) per sqm, demand for residential, office and urban development is on the increase. Speaking to reporters in Petaling Jaya at a seminar on tax strategies for overseas projects and investments, Lam went on to add that property appreciation could also easily double in a year's time.
As an incentive, foreigners investing in Vietnam can also look forward to a reduction in corporate tax in the next few years from the current 28 per cent to a possible 25 per cent. Other attractive factors to invest include political stability and a competitive labour force. Last year, Vietnam attracted US$71 billion (RM231 billion) in foreign direct investment, with Malaysia being one of the top 10 investors.
Excluding the US$10 billion and US$2 billion (RM32.6 billion and RM6.52 billion) investments committed by Berjaya and Gamuda respectively, there are now 232 projects by Malaysian companies in Vietnam valued at US$1.86 billion (RM6.06 billion).
Recent positive changes in regulations governing the real estate market - on top of the country's accession into the World Trade Organisation - have stimulated the boom. And nowhere is demand for quality developments greater than in large cities such as Hanoi, Ho Chi Minh City, Hue, Da nang and Hai Phong - which are the focus of foreign real estate investors.
Last but not least, Vietnam - with its open market policy, like China - allows 100 per cent foreign ownership, except for projects that are of national interest.
