WHAT IS BELT AND ROAD INITIATIVE?
China’s Belt and Road Initiative (BRI) is an ambitious and multifaceted strategy aimed at boosting the flow of trade, capital and services between China and the rest of the word, this involves over 65 countries, which together account for 29% of global GDP and 63% of the world’s population.
The “Belt” part of “Belt and Road” refers to the historic overland Silk Road trading routes that connected China, via central Asia, to Europe and the Middle East. The “Road” refers to the maritime route to the south, linking China, South East Asia, India and Africa.
HOW DOES ONE BELT ONE ROAD BENEFIT VIETNAM?
China’s foray into South-east Asia through its “One Road” thrust bodes well for property developer’s businesses in the region.
Vietnam, considered a key part of the maritime component of China’s ambitious Belt and Road Initiative, is a land full of opportunity. In particular, there has been a focus on Northern Vietnam’s Haiphong Port, with plans to complete a major facilities upgrade by the end of 2017.
Overall, Haiphong is a key nexus along two of the proposed trade corridors. One is along a route connecting Nam Ninh, Lang Son, Hanoi and Haiphong, while the second connects Kunming, Lao Cai, Hanoi and Haiphong. These proposals would see Vietnam playing an enhanced role in transporting goods produced in the Chinese mainland, while opening the local consumer market to external suppliers. Improved links are also expected to help develop Vietnam’s own industrial base.
WHY VIETNAM, WHY NOW?
Vietnam has strong demographics and is opening up to the outside world. As it is the key destination for foreign direct investment across Asia, the property market of Vietnam is now considered promising for investors.
The list of Vietnam’s positives is really quite impressive:
Property investment is one way for individuals to participate in the bright future of Vietnam and the Southeast Asian economic windfall that will be brought from Belt and Road investment. Vietnam is already a world class holiday destination for people from all over the world. Vietnam offers a warm climate, world-famous food, a unique culture and friendly people. It has a variety of geographies from the famous limestone mountains of Halong Bay, the bustling and modern cities of Hanoi and Ho Chi Min, the long-stretching beaches of central Vietnam, as well as hills and mountains in the north and central highlands. With all its success as a holiday destination, it’s no surprise that more and more people are now choosing Vietnam as a second home destination. Adding to the attraction, is that cost of living and property prices are still a fraction of what they are in global metropolitan cities and more long-standing popular second-home destinations. Prices for luxury, new developments in Central Vietnam, for example, can still be purchased for around HKD 2,000 per sqft (USD 260). Similar homes in nearby Cities like Hong Kong, Shanghai, Tokyo, and Sydney are typically priced more than 10x this level according to Spacious.hk research.
One of the areas attracting this international attention in Vietnam is Laguna Lăng Cô. Laguna Lăng Cô is home to Vietnam’s first and largest fully-integrated resort, comprising Banyan Tree and Angsana hotels and spas, resort residences, championship golf course designed by Sir Nick Faldo, convention facilities, and an array of recreational offerings. The 280-hectage community is framed by a three-kilometre beach in an area renowned for its pristine coastline, natural scenery, and proximity to UNESCO World Heritage Sites.