Legal issues, bureaucracy biggest challenges in Vietnam

The Southeast Asian nation’s poor infrastructure is also a factor affecting the country’s property market.

“Legal uncertainly” and “red tape” are the key challenges to investing in Vietnam, according to property investors in the region.

More than 40 percent of delegates attending the Cityscape Asia conference in Singapore, said legal and political issues were an issue when it came to investing in Vietnam's real estate markets. The next challenge facing investment in the country is its “poor infrastructure”, according to 34 percent of those polled.

The most promising property sector in Vietnam is residential, getting 38 percent of the vote from delegates, followed by retail and office with 25 percent, city hotels with 18 percent and coastal resorts with 13 percent.

The commercial office sector in Asia has been the worst hit by the economic downturn, according to almost two-thirds of those present.