Vietnam Property: Buying property in Phu Quoc

Phu Quoc

Phu Quoc’s property market is something of an anomaly in Vietnam Property market as the Vietnamese government recently announced that it was to allow permanent foreign residents and overseas Vietnamese to purchase houses there. The move was included in a recent prime ministerial decision on the region’s operation statute, which was issued as part of a bigger plan to build the largely undeveloped area into a world-class tourist destination. The Vietnam government’s decision allows permanent foreign residents to take out long-term leases on land and overseas Vietnamese to purchase houses with attached land use rights. However, the government is yet to confirm the duration the land leases being made available to foreigners will be for.

The Phu Quoc island is divided into 13 big tourist areas and five urban areas. 894 hectares are saved for developing the Phu Quoc international airport, about 10 kilometres from the South of Saigon Phu Quoc beach resort and spa. At present about 150 domestic and oversea investors have registered in tourist development in Phu Quoc and 46 projects invested in 2000 hectares of the area have been approved.

Phu Quoc is the archetypal up-and-coming region with development guaranteed to pick up rapidly over the coming years. It is still however, very much early days and although a flood of options are about to be made available there is not a huge amount of built options up for grabs at present. The options on the horizon however, are promising.

There are some big corporations such as Saigontourist with Casino-Golf-Resort to be developed in an area of 209 hectares in the North of the island. Especially, Saigon Phu Quoc stock company with Sai Gon Phu Quoc ecological tourist resort the second with 18 hectares wide, 5-star standard beach resort and spa in Bai Sao (Sao beach), the most beautiful place of the island.

IThe purpose of Phu Quoc is to become a tourist and commercial island in Asia. The government is offering good breaks to developers and investment projects will enjoy corporate income tax of 10 per cent throughout duration of implementation, instead of the usual 28 per cent. Personal income taxes will be reduced by 50 per cent for Vietnamese and expatriates on the island.

A key area for investment on the island will be around Truong Beach and the authorities are managing the development in such a way that there will be little by way of surprises for those who opt to buy into the stunning 1,100 hectare locale. Sao Beach and Khem Beach are also being masterplaned and are expected to be reserved for developing five-star standard facilities.