The existing inflationary pressure in Vietnam is due to cost-push factors, mainly energy prices, analysts have said. With oil prices now heading downwards and standing at their lowest level for six months, Vietnam will be able to control inflation at less than 4 per cent for the year. Inflation in the first seven months was just 3.1 per cent, which is low compared to many other economies around the world.

Real estate prices in Vietnam as well as the US, Hong Kong (China), South Korea, Switzerland, China, and elsewhere are increasing at an unprecedented rate in the face of inflationary pressure. Vietnam’s real estate market is also sensitive and volatile due to economic and infrastructure issues.