A study on reit with its application and possibility in Vietnam real estate market
Abstract
As a young market, Vietnamese real estate market has been undergoing so
many transitions in response to integration process and globalization. Finding solutions to
build up domestic growth of the market and successfully attract foreign direct investment
has been a concern of the Government and authorities. Meanwhile, thanks to the open
period, knowledge and preference of both domestic and foreign investors have become
gradually diverse that raised the necessity of innovative kinds of real estate investment
and securitization. Real estate investment trust (REIT) is a combination of real estate
investment and securitization that has demonstrated its success all over the world,
especially in some Asian countries such as Japan, Singapore, Hong Kong and Thailand.
Fortunately, REIT vehicle has been suggested as a solution to various problems that
Vietnam real estate market has encountered. Nevertheless, as learned from common
experience, REITs effectiveness is maximized when there are developments of legal
framework, taxation, securitization, etc. Thus, besides the attractive aspects of REITs, its
application and possibility in Vietnam real estate market remains numerous things to be
considered. By studying the basic knowledge of REITs, taking some Asian countries
experience for reference and investigating the current situation of Vietnam’s real estate
market, this thesis finally aims to suggesting several primary implications that need to be
considered in order to properly adopt and develop REIT in Vietnam. This paper will be of
much use for those who would like to study or investigate further the REITs adoption in
Vietnam.