ROI in Vietnam vs Thailand – Numbers, Costs, and Real Property Returns

Introduction: Why ROI Must Be Calculated, Not 'Felt'

Property investment in Asia is often sold through narratives: "tourism boom," "expat haven," "emerging market," "the next Thailand." The problem is that ROI doesn't come from stories—it comes from a concrete equation.

ROI = (income – expenses) / capital invested

In this article, I compare Vietnam and Thailand purely on numbers:

– purchase prices

– rental income

– fixed costs

– taxes

– actual (not projected) occupancy rates

No opinions. No emotions.

Common Ground for Both Markets – What We're NOT Comparing

To make this comparison fair, we're excluding soft variables such as:

• lifestyle
• food
• culture
• "vibe of the place"

We're only interested in investor math.

Entry Price – Vietnam vs Thailand (Initial Capital)

Vietnam (Da Nang / Ho Chi Minh City / Hanoi)

Average prices for new apartments (2024–2025):

• Da Nang: $2,200–$3,200 per sqm
• Ho Chi Minh City: $3,000–$5,500 per sqm
• Hanoi: $2,800–$4,800 per sqm

Investment apartment 45–55 sqm:

• $110,000 – $180,000

Thailand (Bangkok / Phuket)

Average prices:

• Bangkok: $3,200–$6,000 per sqm
• Phuket: $4,500–$8,000 per sqm

Investment apartment 45–55 sqm:

• $180,000 – $350,000

Conclusion:

Vietnam requires 30–50% lower entry capital.

Transaction Costs – Hard Numbers

Vietnam

• Developer VAT: 10% (included in price)
• Notary + registration: 0.5–1%
• No transfer tax
• Agency commission: typically 0% (paid by seller)

Thailand

• Transfer fee: 2%
• Stamp duty: 0.5%
• Withholding tax: 1%
• Sinking fund: 500–1,000 THB per sqm
• Maintenance fee upfront: 40–80 THB per sqm/month

Conclusion:

Entry costs are lower in Vietnam percentage-wise, with a simpler structure.

Rental Income – What You Can Actually Earn

Vietnam – Long-term Rental (Dominant Model)

• Da Nang 1BR: $550–$900/month
• HCMC 1BR: $700–$1,200/month

Short-term rental:

• heavily regulated locally
• often suboptimal for ROI
• actual occupancy: 50–65%

Thailand – Short-term Rental

• Phuket 1BR: $60–$120/night
• Actual annual occupancy: 55–70%
• High seasonality

Long-term rental:

• Phuket: $700–$1,100/month
• Bangkok: $800–$1,300/month

Operating Costs – Where ROI 'Disappears'

Vietnam (average monthly)

• Maintenance: $0.5–$1 per sqm
• Property management: 5–8%
• Utilities: $80–$120
• Rental tax: 5–10%

Thailand

• Maintenance: $1.2–$2.5 per sqm
• Property management: 15–30% (short-term)
• Utilities + internet: $120–$180
• Rental tax: ~15% effective

Conclusion:

Thailand generates significantly higher ongoing costs, especially with short-term rentals.

Sample ROI – Numbers on the Table

Vietnam – Da Nang (Long-term)

• Purchase price: $140,000
• Annual income: $9,600
• Expenses: $2,400
• Net profit: $7,200

➡ Net ROI: ~5.1%

Thailand – Phuket (Short-term)

• Purchase price: $260,000
• Gross income: $17,000
• Expenses: $8,500
• Net profit: $8,500

➡ Net ROI: ~3.3%

What the Numbers Say (Without Interpretation)

• Vietnam = lower entry threshold
• Thailand = higher operating costs
• Net ROI in practice:
• Vietnam: 4.5–6%
• Thailand: 3–5%

Data Sources

• https://www.savills.com.vn
• https://www.knightfrank.com/research
• https://www.bangkokpost.com/property
• https://www.vietnam-briefing.com
• https://www.globalpropertyguide.com

Regulatory Risk – Where Laws Threaten ROI More

Vietnam – Regulatory Risk

Vietnam permits foreign ownership of condominiums, but with limitations. Key risks:

• 30% limit on foreign-owned units per building,
• time-limited ownership (typically 50 years with possible extension),
• local interpretations of short-term rental regulations.

Legal costs (notary + advisor):

• $500–$1,200 one-time

In practice, risk primarily concerns:

• projects "at the edge" of the 30% limit,
• illegal short-term rentals in residential buildings.

Thailand – Regulatory Risk

In Thailand, the law is more stable but more restrictive:

• 49% foreign quota limit in condos,
• short-term rentals formally prohibited in buildings without hotel licenses,
• real enforcement risk in popular locations (Bangkok, Phuket).

Legal costs:

• $800–$1,500

Conclusion:

Vietnam = more flexibility, but more local nuances.

Thailand = stable law, but riskier short-term operations.

Exit Liquidity – Where It's Easier to Sell

Vietnam

Secondary market:

• buyers: local clients + expats + regional investors,
• selling time: 3–9 months,
• moderate price pressure.

Typical discount for quick sale:

• 5–10%

Thailand

Secondary market:

• highly competitive,
• many identical units in same project,
• often price-driven competition.

Selling time:

• 6–18 months

Typical discount:

• 10–20%

Conclusion:

Thailand has a larger market, but lower liquidity for individual units.

Vietnam sells faster with reasonable pricing.

Capital Appreciation vs Cashflow – What Actually Drives ROI

Vietnam – Growth Model

• urbanization,
• infrastructure development,
• growing middle class,
• manufacturing relocation.

Average price growth (2018–2024):

• 6–10% annually in top cities.

Cashflow:

• moderate,
• stable,
• predictable.

Thailand – Income Model

• tourism,
• short-term rentals,
• seasonality.

Price growth:

• 2–5% annually (Bangkok),
• local stagnation (Phuket condo oversupply).

Cashflow:

• potentially high,
• but highly sensitive to:
• season,
• regulations,
• operating costs.

Decision Matrix – Vietnam vs Thailand

Initial Capital

Vietnam: lower

Thailand: higher

Fixed Costs

Vietnam: low

Thailand: high

Net ROI (Actual)

Vietnam: 4.5–6%

Thailand: 3–5%

Regulatory Risk

Vietnam: medium

Thailand: low (but short-term is risky)

Exit Liquidity

Vietnam: good

Thailand: average

Best For?

Vietnam: long-term investor

Thailand: operational investor

Most Common Investor Mistake

Buying Thailand "because tourism"

Buying Vietnam "because it's cheap"

ROI doesn't come from the country.

ROI comes from:

• rental model,
• operating costs,
• exit strategy.

When Vietnam Wins

• capital under $200,000,
• buy & hold strategy,
• focus on capital appreciation,
• long-term rental.

When Thailand Makes Sense

• capital $300,000+,
• willingness for operational management,
• legal short-term (hotel-licensed projects),
• acceptance of seasonality.

Summary – Numbers, Not Opinions

Vietnam more often delivers better net ROI with lower cost risk.

Thailand can generate higher gross income, but operations eat into it.

If you calculate ROI with a calculator, not Instagram —

Vietnam wins more often than people say.

Sources

• https://www.savills.com.vn
• https://www.knightfrank.com/research
• https://www.globalpropertyguide.com
• https://www.vietnam-briefing.com
• https://www.bangkokpost.com/property