Giant global investors are beating a multibillion dollar path to Vietnam in search of supercharged returns, and Hong Kong's small property investors could profit from going along for the ride, according to fund manager Horst Geicke.
Now was a great time for Hong Kong retail investors to buy an apartment or home in Vietnam, said Mr Geicke, executive chairman of VinaCapital, a fund specifically set up to invest in the country's real estate market.
'Vietnam is starting to have a very organised and promising domestic economy,' he said, and this was largely due to the process of market liberalisation and the privatisation of state-owned enterprises.
Other commentators urged caution, however, warning that shopping unaided for property in a marketplace that was not yet fully transparent could be a trap for the unwary.
At the big end of town, however, no such concerns are evident and attracted by the opportunities on offer and Vietnam's progress towards joining the World Trade Organisation, investors poured more than US$10.2 billion into the country last year and will invest another US$15 billion this year.
Foreign direct investments this year into a country with a population of just 85 million will match flows into India, with 1.1 billion people.
Fuelled by these massive investment inflows, Vietnam's economy has expanded at an average annual rate of 7.5 per cent over the past decade, the second highest growth rate in Asia after the 9 per cent expansion recorded on the mainland.