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Buford town value is just 1/5 of a house in Hanoi   2012-04-11 - VnExpress, VTC

It could be a surprise to many people that Vietnamese people are rich enough to buy a whole town in the US. However, in fact, the value of the affair is really modest if compared with the value of a house in Vietnam.


The news that a Vietnamese citizen spent 900,000 dollars to buy the smallest town in the US has appeared on all Vietnamese newspapers these days. This has also become the hot topic of many foreign newspapers, especially in the US.

American people have made so many comments on online newspapers about the purchase by a Vietnamese, though many land areas in the US had been purchased by many foreigners before.

The buyer of the Buford town is Pham Dinh Nguyen, General Director of IDS, a distribution service company, headquartered in HCM City.

In the eyes of many Vietnamese people, the affair is a good thing which shows that Vietnamese people can afford foreign land. However, To Hoai Nam, Deputy Chair and Secretary General of the Vietnam Association of Small and Medium Enterprises, has expressed his worry that buying foreign land would be a new movement of Vietnamese businessmen.

“I am afraid that Vietnamese billionaires would flock to foreign countries to buy land like Nguyen did. What would happen, if this becomes a trend?” Nam said.

“Once the affairs are made, the name “Vietnam” would become more popular in the world. However, the reverse of the medal is that the domestic real estate market would lack investment capital,” he added.

Nguyen Minh Phong, Head of the Economic Development Research Division of the Hanoi Socio-Economic Research Institute, has commented that the purchase is just a normal affair, which does not deserve deep comments, because the sum of 900,000 dollars proves to make nothing if compared with the sum of 5 million dollars a “big guy” named Ha has spent to buy a house in Hanoi.

The house, according to Phong, is located near the Truc Bach Lake in Hanoi, and five times more expensive than the sum of money Pham Dinh Nguyen has paid for the Buford town.

“The affair is not big in value, but it has a very important significance. It’s really wonderful that a Vietnamese businessman now has a land plot of his own in a foreign country,” Phong said.

However, Phong has warned that while the land is not expensive in the US, it would be very costly to maintain the ownership of the land because of the high taxes. Therefore, Phong said, it is easy to buy the land, but it’s not clear about how much time Nguyen can possess the land.

“This would depend on the financial capability and the plan of Nguyen,” Phong said.

When asked if this was a bad buy as many American commented, since the price was as high as 900,000 dollars, Nam said that businessmen all have their own reasons when making decisions.

“I believe that the businessman made a wise move, even though he bought the town just to polish the image. The affair shows the skill and the spirit of Vietnamese businessmen on the international market,” Nam said.

Meanwhile, Dang Hung Vo, former Deputy Minister of Natural Resources and the Environment, who is considered the most experienced land expert in Vietnam, said that it’s difficult to say if this was a bad buy, because it’s necessary to consider many other factors, including the geographical positions, the history of the land, the land use value and the assets on the land.

In this case, Nguyen spent 900,000 dollars to buy four hectares of land, which means that every square meter of land here is valued at 22.5 dollars, or 450,000 Vietnam dong. As such, if comparing with Vietnam’s agricultural land which is priced at 500,000 dong per square meter, the land in the US is cheaper.

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