Companies
Young homebuyers to get a foot up
Published
2 weeks agoon
Prime Minister Pham Minh Chinh has requested the State Bank of Vietnam and commercial banks to offer credit packages of preferred interest for young customers aged 35 and under, as an opportunity for young people to quickly realise their dream of owning a home.
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Young homebuyers to get a foot up, photo Dung Minh |
The age group of 25-35 is considered a group with good income potential to buy property.
Vu Hoai, CEO of X Group, a real estate agency in Ho Chi Minh City, said that if there was a preferential credit package for both supply and demand for housing development for young people aged 35 and under, it would have a positive impact on the real estate market.
“When the supply is diverse and has many segments for buyers to choose from, the market will develop sustainably,” Hoai told VIR. “If there is a loan package with reasonable interest rates with borrowing for a long period of 10 years or more, it would be good for buyers.”
For businesses to develop commercial housing projects, if they can borrow capital with a stable interest rate for about 5–10 years, at 8 per cent per year, it will reduce production costs, thereby making the house selling price more suitable, he added.
As for young people aged 35 and under, when borrowing to buy a house, maximum incentives should be given. The interest rate can be equivalent to the interest rate for buying social housing, about 5-6 per cent is reasonable, Hoai added.
Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said that young people of working age still had a long time to do business and pay off debt, and usually after about 10-15 years their income would double or higher.
“This group has less risk for commercial banks when approaching for a loan. Meanwhile, with current income, most young people or people with average income can only afford to borrow to buy affordable housing projects, selling for $80,000-120,000 per unit,” Chau said.
According to Batdongsan.com.vn, in 2024, with an average GDP per capita of about $380 a month, those aged 25-40 need to work and save for over 25 years to have enough money to buy a 60sq.m apartment priced around $120,000, with a deposit interest rate starting from 4.5 per cent per year.
However, this segment is in short supply and receives little attention from investors, especially in Hanoi and Ho Chi Minh City. The reason is that to have available land qualified to build commercial houses for sale, investors have to go through many procedures, and land purchase prices are also high.
“Therefore, creating a favourable mechanism for young workers to buy affordable commercial housing will be a driving force to encourage real estate businesses to restructure their product baskets and shift to investing more in this segment,” Chau said.
The association also asked the central bank to consider building a mechanism for people aged 18-45 years old buying their first home to receive credit loans at reasonable commercial interest rates (about 6-7 per cent per year with the loan secured by that house) for a period of 10-15 years.
Besides interest rates, experts in finance and banking also recommend that home buyers pay attention to other issues such as repayment time, principal and interest payments in accordance with their financial capacity and flexibility of the loan package.
Currently, banks are lending at a loan rate of 70-80 per cent of the house value. With a large loan amount and a long term, home buyers need to consider overall needs, and periodic repayment plans consistent with income sources to ensure loan and interest payment when it dates due.
The issue of building affordable and cheap houses is not only a leading issue in Vietnam, but also in other markets in the region.
At a seminar on affordable housing held in mid-February on Phu Quoc Island, Doan Van Binh, vice chairman of the Vietnam Real Estate Association and chairman of CEO Group, said that for a real estate market to develop safely, healthily and sustainably, there needed to be a balance between housing segments, especially meeting the needs of the majority of people for affordable housing.
“In Vietnam, the residential real estate market is currently divided into luxury and high-end, mid-range housing, and affordable and low-cost housing,” Binh said. “However, while luxury and high-end housing dominate the supply, mid-range housing has a decreasing supply ratio over the years, and the low-cost housing segment has almost disappeared.”
In 2021-2024, the Vietnamese market recorded less supply in this segment.
“In fact, the demand for affordable housing is huge and has great potential, and this is the target customer group that needs to be targeted for a healthy and sustainable real estate market, but Vietnam seems to be missing out on this segment. We need so learn the experiences and lessons from other market to develop ourselves,” Binh added.
Jeffery Foo, co-founder of the Singapore Institute of Estate Agents, said that in Singapore, the Housing and Development Board is a specialised government agency responsible for the development and management of housing areas. To support people with low or average incomes, it offers two- or three-room rental apartments, at the lowest possible rent.
“In the long term, it encourages apartment renters to consider buying the apartment they rent in instalments, with preferential instalment terms. The goal of this policy is so that people do not have to rent houses forever, but can own their own home when they can afford it,” Foo said.
Pretcha Suphapetuporn, chairman of the Real Estate Sales and Marketing Association, said that the Thai government has implemented many support plans to build affordable housing for low-income people. These include a plan to provide affordable housing for families with incomes less than or equal to $1,000-1,200 per month.
At the same time, besides the government, private companies also participate in investing in low-cost housing to provide for Thai people.
“The government will support businesses through tax reduction policies. Accordingly, if a project has a house selling price of less than $45,000 per unit, the company implementing that venture will enjoy tax incentives for three years,” Suphapetuporn added.
Vo Hong Thang, vice general director DKRA Group
If this direction is widely disseminated and applied by banks, it will be a positive signal for the economy and the recovery of the real estate market in the near future. When widely applied effectively, it will partly solve the social security problem by helping young people have the opportunity to access housing and increase their living standards. This can also be considered an effective solution to stimulate demand for this type of real estate, especially the affordable housing segment to serve demand, which is high. In fact, the gap between supply and demand in this segment still exists due to the continuous lack of new supply and high primary selling prices caused by high input costs. Accordingly, buyers can consider choosing apartment projects that have been handed over and put into use for a period of 3-5 years, which already have land use and housing rights certificates and are conveniently located at the workplace or connected to the centres with more suitable prices. But above all, buyers need to carefully consider the bank loan rate, and build up a suitable loan and interest payment plan to avoid unnecessary risks that arise during the borrowing process. Now is a golden time for investors to establish their own financial plans for the medium and long-term. Specifically, businesses can proactively restructure capital sources, previously high-interest loans, arrange bond debts or encourage new loans, and boost development to quickly finish procedures to launch new products. Duong Tong, deputy head, Galaxy Group
Credit incentives with low interest rates are great opportunities for young people who have stable jobs. Preferential interest rates will help reduce the initial financial burden, allowing them to accumulate and invest in real estate sooner. This is a bold and positive step forward in supporting young people to access the real estate market, gradually build assets and stabilise their future. This move can be considered a solution to stimulate demand for the affordable housing segment. However, the problem of mismatch between supply and demand of affordable house is still a big challenge. The limited supply makes this solution unable to maximise its effectiveness. Therefore, there needs to be close coordination between banks and investors to ensure supply consistent with actual demand. Investors need to quickly seize this opportunity by encouraging the development of affordable housing projects, especially in areas with high demand but limited supply. At the same time, it is necessary to coordinate closely with banks to offer attractive financial packages that suit the conditions of buyers, creating the best conditions for them to access and own a home. Strengthening marketing is also a crucial factor in attracting potential customers, especially in today’s highly competitive market. |
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Companies
Hanoi to renovate Hoan Kiem Lake area for park development
Published
11 hours agoon
March 12, 2025The renovation project will involve extensive surveys to assess key architectural landmarks, historical sites, and cultural icons that warrant preservation.
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The commercial centre building, commonly known as the ‘Shark Jaw’ (Ham Ca Map) building, at Dong Kinh Nghia Thuc Square by Hoan Kiem Lake. (Photo: VNA) |
Hanoi – Vice Chairman of the Hanoi People’s Committee Duong Duc Tuan has requested a renovation plan for the eastern side of Hoan Kiem Lake, envisioning it as a special square and park zone.
The renovation project will involve extensive surveys to assess key architectural landmarks, historical sites, and cultural icons that warrant preservation. The aim is to propose new functions for the facilities to ensure they blend harmoniously with the area’s scenic landscape and historical significance.
On March 11, Tuan instructed the Department of Finance to swiftly establish a working group responsible for planning and revamping the Hoan Kiem Lake area, including the iconic Dong Kinh Nghia Thuc Square. It must draft a document on the investment policy for the special square and park zone and submit to the permanent members and the Standing Board of the municipal Party Committee by March 13, 2025.
To support the plan, the Department of Agriculture and Environment has been assigned to provide a detailed 1:500 scale topographic map of the area for the Hoan Kiem district People’s Committee and the Hanoi Urban Planning Institute. Additionally, the department will compile cadastral data to facilitate site clearance, compensation, and support mechanisms. Adjustments to land use plans should also be proposed to ensure seamless project implementation.
The project will also include a three-level underground space beneath the eastern side of Hoan Kiem Lake. This underground development will connect to the C9 station of the Nam Thang Long – Tran Hung Dao metro line. Measures will be taken to safeguard nearby heritage structures during the construction process, while functions for underground spaces will be proposed to optimise land use and meet public demand.
Tuan urged all departments to accelerate their proposals to execute the project. The development will unfold in two phases: the initial phase will involve the construction of the above-ground park and square using public investment, while the second phase will introduce underground facilities integrated with the C9 metro station following the Transit-Oriented Development (TOD) model.
To address the needs of displaced residents, the Department of Agriculture and Environment has been tasked with proposing maximum compensation policies. Eligible households will be offered resettlement land in the outlying district of Dong Anh. Meanwhile, resettlement housing will be sold to those not qualifying for land compensation.
In anticipation of resettlement demand, the city is fast-tracking a review of approximately 100ha of land in Dong Anh district to ensure sufficient space for resettlement efforts linked to this and other major development projects in Hanoi.
Companies
Zebra Technologies announces new strategy for 2025 in Vietnam
Published
14 hours agoon
March 12, 2025Zebra Technologies Corporation, a global leader in digitising and automating frontline workers, is looking to expand in Vietnam by anchoring on an extensive network of partners, continued investment, and a comprehensive portfolio of solutions.
The company announced its 2025 strategy for Vietnam with the three pillars at its Regional Partner Summit 2025 held in Danang on March 5, underscoring its commitment to empowering partners and customers in Southeast Asia.
Talking to VIR at the event, Christanto Suryadarma, sales vice president for Southeast Asia, South Korea, and Channel APJeC at Zebra Technologies, said, “We are seeing significant interest and opportunities for Vietnam to leapfrog in technology adoption. We are continuing to invest in enabling our customers in Vietnam to access the right solutions. That is our primary investment.”
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Christanto Suryadarma, sales vice president for Southeast Asia, South Korea, and Channel APJeC. Photo: PV |
“We are continuously investing in training local Vietnamese partners on how to help customers digitise and automate. This is an ongoing investment. We conduct training sessions, provide demo units, and run proof-of-concept projects,” he added.
With a comprehensive portfolio of solutions, including everything from simple scanning devices to mobile computers, tablets, RFID, and machine vision, Zebra offers tailored solutions to meet the diverse needs of businesses in Vietnam to excel in a digital era.
Suryadarma noted, “Overall, our investments focus on strengthening our presence, expanding our capabilities, and enabling knowledge transfer. We equip our team and partners with the expertise they need so that when they engage with customers, they can offer well-prepared solutions.”
Zebra now has strong partners across Vietnam, as well as Vietnamese companies operating internationally. The company also has a repair and maintenance depot in Vietnam, where it has invested in training local workers.
Zebra opened its first service centre in Ho Chi Minh City in 2021. In 2022, Zebra expanded the centre to meet rising demand for printers, adding support for desktop, mobile, label, and industrial printers. Collaborating with distributors like SMC and Elite Technology, Zebra has developed a diverse partner ecosystem in Vietnam.
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Christanto Suryadarma, sales vice president for Southeast Asia, South Korea, and Channel APJeC at Zebra Technologies. Photo: PV |
“Vietnam is a crucial market for Zebra. Our strong team and extensive certified partner network are dedicated to delivering industry-specific solutions to our customers,” said Suryadarma. “Leveraging our global expertise and innovative solutions, we aim to support all companies operating in Vietnam, across sectors like manufacturing, retail, transportation, logistics, and healthcare, to overcome challenges and achieve digital transformation.”
The 2025 strategy shows Zebra’s long-term commitments in Vietnam. According to Zebra Technologies, its strategy is deeply linked to megatrends – external factors that shape the tech industry. These include mobility and cloud, AI, digitalisation and the Internet of Things, e-commerce, and automation.
To continue offering a comprehensive portfolio of advanced solutions, innovation is at the heart of Zebra Technologies where it invests heavily in business development and research and development. Last year, the company’s revenue was approximately $5 billion, of which it allocated about 10 per cent towards innovation.
“Innovation allows us to continuously develop new technologies and solutions that address real-world challenges. By leveraging mobility, cloud computing, scanning, RFID, and other technologies, we can provide real-time tracking and insights to meet the growing business demands of optimising workflows, improving efficiency, and enhancing decision-making,” the Zebra representative noted. “Our goal is to seamlessly connect all these elements – assets, people, and activities – through enterprise mobile computing. The more we can connect frontline workers, the better we can enhance business operations.”
Commitment to innovation has positioned Zebra Technologies as the leader in rugged mobile computing. While consumer mobile computing – laptops and smartphones – is widely used, Zebra dominates the enterprise mobile computing space, particularly in rugged devices designed for business-critical operations.
Another area where the company is very strong is data capture. Today is the era of AI. But for AI to work effectively, it needs data—clean, accurate data. As the company specialises in data capture, it is in a strong position to align with AI-driven market trends.
Along with data capture, the company is also the leader in barcode printing. Many businesses need barcode labels. These labels are used in countless industries. In Vietnam, for example, it’s becoming common in restaurants where instead of taking orders manually, customers simply scan a barcode on the table to access the menu.
Another area where Zebra holds the number one position is mobile RFID. RFID stands for radio frequency identification. This is a fast-growing business, and today, the world consumes approximately 30 billion RFID tags annually.
Key industry trends for 2025
Manufacturing, transport and logistics, and retail are the areas where Zebra is deeply involved.
Suryadarma said that manufacturing is a major industry in Vietnam. Zebra’s machine vision and AI solutions can significantly enhance manufacturing operations. He sees a lot of potential in helping businesses improve efficiency and productivity through automation and smart technology.
“We recognise the trends in this sector. Now, we are seeing many economic uncertainties, trade discussions, and shifting policies that are prompting manufacturers to focus on incremental, scalable improvements rather than sweeping transformations. Manufacturers want to automate their processes, but they are looking for cost-effective modernisation strategies. This requires new approaches and scalable automation tools for success,” he admitted.
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Zebra Technologies’ 2025 Regional Partner Summit in Danang. Photo: PV |
In transport and logistics, companies are now balancing onshore and offshore solutions while also ensuring sustainability. They would rather not generate excessive waste; instead, they want to reduce carbon footprints and implement greener supply chain practices. This shift requires greater visibility and real-time insights.
In logistics, the market sees a growing interest in AI, RFID, real-time tracking, and new visibility technologies. These are becoming increasingly important. For example, Vietnamese company Nhat Tin Logistics has implemented Zebra’s scanning solutions, improving speed, efficiency, and productivity in scanning and delivery operations.
Moving on to retail, customer expectations and labour shortages are two major challenges in this industry. This is where technology is making an impact.
“With Vietnam’s large population, retail is booming. We’re seeing a lot of automation in retail. For example, many cafés now use digital solutions – customers scan a QR code, place orders, and receive their items seamlessly. Many retailers have already adopted RFID to enhance customer experience. While we cannot disclose specific names due to customer confidentiality, we can confirm that RFID adoption is happening in Vietnam,” he added.
An example is in warehouses. When people walk into a warehouse, they do not just see shelves of products, they see workers constantly moving, picking, sorting, and delivering items. These workers are the backbone of warehouse operations. Similarly, in hospitals, nurses and doctors are on the front line, caring for patients and ensuring smooth medical operations.
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Many regional partners joined the summit. Photo: PV |
Healthcare is another key area of growth. Similar to other countries, people in Vietnam increasingly expect better healthcare services, both from government and private hospitals. Digitalisation plays a crucial role in improving healthcare efficiency.
“With nearly 8 per cent GDP growth last year, the challenge now is how to push Vietnam’s growth even further. Maybe one day, Vietnam can reach 10 per cent or even higher. It is not impossible, but it comes down to the people, the partnerships, and strong leadership across all organisations,” he noted.
Vietnam is to work with the United States on ways to reach a trade balance and circumvent the latter’s heavy tariff imposition.
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Vietnam is improving local products and origin of goods information, photo Le Toan |
Later this week, Minister of Industry and Trade Nguyen Hong Dien will fly to the US to work with its Department of Commerce on further materialising the comprehensive strategic partnership forged in 2023.
“The main reason for the trade imbalance between the two countries comes from the complementary nature of the two economies, which is due to the export and foreign trade structure of the two countries,” said Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan at last week’s governmental press conference in Hanoi.
“Vietnamese exports to the US compete with those from third nations, not directly with US enterprises in the US market. Meanwhile, they even also create conditions for American consumers to use Vietnamese goods at cheap prices,” Tan added.
According to the Ministry of Industry and Trade (MoIT), Vietnam is an open economy which pursues a free trade policy. The tariff difference on US goods is not high and may decrease in the future because Vietnam will reduce most favoured nation tariffs on many types of goods.
“Therefore, a number of US products with high competitive advantages such as automobiles, agricultural products, liquefied natural gas, and ethanol will benefit from this policy,” Tan said. “At the same time, it will create positive import flows from the US, contributing to improving the trade balance between the two.”
In addition, there is an ongoing policy dialogue on trade and investment between the two countries under the Vietnam-US Trade and Investment Framework Agreement founded in 2007. Therefore, existing problems in bilateral trade and economy, if any, will be proactively discussed through the US-Vietnam Council on Trade and Investment.
This is a mechanism that has created a common vision, contributed to the long-term direction, and stabilised the development of bilateral economic and trade relations, the MoIT said.
In addition, the Vietnamese government has taken the initiative in assigning ministries and sectors to review obstacles to the US “on the basis of fair trade, reciprocity, in accordance with the law, harmoniously and satisfactorily meeting the interests of all parties”, the ministry added.
“Vietnam will also create better conditions for US investors to participate in the process of forming and developing key industries in Vietnam, especially key energy projects involving new energy, hydrogen, and nuclear power,” Tan explained. “This will create a premise to increase imports of liquefied natural gas, fuel, machinery and equipment, and technology from the US, thereby contributing to improving the trade balance between the two countries.”
Via the US Embassy to Vietnam and the country’s counterpart in the US, the MoIT has sent a message that Vietnam wishes to maintain and develop a harmonious and sustainable economic and trade relationship of mutual benefits with the US. At the same time, Vietnam reaffirmed that it has and will never create any policy that hurts labourers or the national security of the US.
Since returning to office in January, US President Donald Trump has launched a sweeping series of tariffs, marking a return to the aggressive trade policies of his first term. The measures reflect the administration’s broader effort to protect domestic industries and address what the president views as unfair trade practices.
According to Asia Briefing, a subsidiary of Dezan Shira & Associates, as a major supplier of goods to the US, the tariffs could significantly impact Vietnamese exporters.
“It is also possible that Vietnam will become the target of country-specific tariffs, as the country has a large trade surplus with the US and has previously been accused by the US administration of engaging in unfair trade practices,” Asia Briefing said. “However, Vietnam may be able to mitigate the impact by striking a deal with the US, especially if it agrees to increase imports of American goods or ease market access for businesses from the US.”
However, Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, told VIR that it was too early to gauge the impact of tariffs. In the past month, Vietnamese officials have repeatedly said they would seek compromises with the US on trade.
“This is likely to include promises of additional aeroplane purchases, boosting Vietnam’s imports from the US of liquefied natural gas, better market access for American agricultural products, and an adjustment of some regulations to make it easier for US companies to access the Vietnamese market,” Sitkoff said.
He suggested that Vietnam should take some necessary actions, including creation of more transparency in the origin of goods and increasing local content, and doing more to solve burdens and barriers faced by American companies and investors here.
Vietnam’s exports to the US reached $119.6 billion last year and $19 billion in the first two months of 2025.
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