Vietnam has often been a conundrum for institutional real estate investors: the short-term macro indicators (currency, interest rate, inflation) are too volatile, markets are underdeveloped and relatively illiquid, and qualified operators on the ground are few and far between. Countering these challenges, promises of opportunity beckon. Few would argue Vietnam’s mid- to long-term prospects are anything less than bright: a continued strong growth rate benefits from factors such as a hungry, aspiring workforce; a young population; relatively low-cost workforce; rich natural resources; a rapidly growing, and urbanizing, middle class; and a history of resilience among the population.

How then should institutional investors approach Vietnam? What follows is a look at the context of Vietnam, the key decisions to be made by any prospective investor, and necessary implications resulting from a decision to enter the market.

THE CONTEXT

The tantalizing promi