Monthly Real Estate News | April 2021 by Vietnam Realty

Vietnam Monthly Real Estate News April 2021

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Daily Real Estate News Highlights Top 5 - Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Information technology enterprises are "hunting" for offices www.cafebiz.vn According to Ms. Han Nguyen, Head of Office Service, Colliers Vietnam, recruitment demand in the information technology (IT) sector was recovering rapidly after Covid-19. Therefore, the demand for office space of enterprises in this field was still high at present. According to the representative of Colliers Vietnam, the Covid-19 pandemic caused many economic activities to be restricted, leading to many economic difficulties, falling into recession and crisis. The pandemic happened right in the middle of the 4.0 industrial revolution, but looking at the current situation, it could be seen that the IT industry has become a hot and focused industry. That was thanks to the available advantages by applying information technology achievements not only in work but also in life instead of face-to-face such as effective remote work, online meeting, online business.

Bright outlook for logistics real estate in Asia - Pacific in 2021

Sanctions and squabbles shift global trade balance www.vir.com.vn Experts and business representatives from both the United States and China at a major forum in Alaska on March 20 said they expected a better dialogue mechanism on bilateral trade – a sector where the world’s largest two economies share mutual interests despite their disputes on political issues. However, the tense nature of the event showed that hope does not yet exist.

Leaders hope that ASEAN members work closely together in order to mitigate US-China

Austrian $1.8 billion high-tech deal utilises EVFTA edge www.vir.com.vn More Austrian investors are expected to pour billions of US dollars in high-tech projects in Vietnam which they consider a new investment base with numerous opportunities from the EU-Vietnam Free Trade Agreement. In a meeting with Prime Minister Nguyen Xuan Phuc last week, Ingolf Schroeder, director of circuit board manufacturer AT&S, expressed a plan to establish its manufacturing base in Vietnam. The company intends to develop two factories with the total investment capital of nearly $1.8 billion in the first phase.

colliers.com/en-vn

Daily Real Estate News Highlights Top 5 -Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

New thinking is agricultural land

needed

when

converting

www.vtv.vn According to Colliers Vietnam, urbanization is a natural and inevitable process. HCMC’s governing party should have a strict land control plan, and the solution lies in the application of technology and data processing in urban governance. Mr. David Jackson, CEO of Colliers Vietnam said: “The city should apply new solutions to building or collecting land data to come up with new initiatives, as well as urban development methods that are suitable for localities ". Mr. David also suggested that the governing party could promote initiatives to force the apartments to have more green areas, more parking lots. They should need to discourage some investors from only focusing on profits.

Mr. David M. Jackson Chief Executive Officer | Colliers Vietnam

Vietnam exports to US surge www.vnexpress.vn Vietnam’s economy is returning to solid export-fueled growth that is likely to continue thanks to the U.S. fiscal stimulus, according to the Wall Street Journal. Its GDP grew at 4.48 percent year-on-year in the first quarter of 2021, according to the General Statistics Office of Vietnam. Vietnam’s exports in the first two months of 2021 jumped 23.7 percent year-on-year to $48.74 billion, of which 28.4 percent went to the U.S.

Tan Cang - Cai Mep International Terminal in the southern Ba Ria-Vung Tau Province.

Government frets over surging land prices across the country www.vnexpress.vn The government is seeking to contain the rise in land prices in many localities allegedly caused by speculators spreading rumors about development plans. The Ministry of Natural Resources and Environment has ordered the General Department of Land Administration with examining land management procedures, including the handing over and leasing of land, in 26 localities for misconducts.

Supporting industries receiving multinational boost

www.vir.com.vn The relocation of multinational corporations has accelerated the shift of foreign investment capital to Vietnam’s supporting industries to accommodate the lack of local suppliers. According to Ho Chi Minh City People’s Committee, more foreign businesses are developing projects at Saigon Hi-tech Park (SHTP) in District 9 to become suppliers for Samsung Electronics’ CE Complex (SEHC) in the city. As of February, four local companies and nine foreign-invested enterprises have been providing materials, spare parts, and accessories to SEHC. colliers.com/en-vn

Daily Real Estate News Highlights Top 5 -Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Three tips for F0 real estate www.tinnhanhchungkhoan.vn Mr. David Jackson, CEO of Colliers Vietnam counted that, by 2020, up to 70% of real estate transactions belonged to new investors, but if you wanted to stay in the market, there were 3 things that the F0s need to lie on. First, it was necessary to ensure financial capacity, this was not only money to buy real estate, but also an “accumulation” to prevent liquidity risks. Second, in the current difficult context, it was difficult to find and buy real estate as expected, but it was even more difficult to find customers to stay on. Third, a never-old rule was to always carefully study information about the investor, the project and the market before putting money.

Mr. David M. Jackson Chief Executive Officer | Colliers Vietnam

Vietnamese real estate goes global www.vir.com.vn On March 27 and 28, the Grand Marina, Saigon officially launched and received a positive reception from its Hong Kong investors at its exclusive project introduction organised by the Asia Bankers Club at the JW Marriott Hong Kong Hotel. The first branded apartments of Grand Marina were purchased by customers of the Asia Bankers Club with a starting price of $1 million, equivalent to a unit price of $18,000 per square metre.

Vietnamese real estate goes global

Thai retailer to invest additional US$1.1 billion into Vietnam market www.thesaigontimes.vn With a target to further expand its footprint in Vietnam as a high-potential market, Thailand’s Central Retail Corporation Public Company Limited (CRC) has come up with a five-year plan with an investment value of approximately THB35 billion (about US$1.1 billion) to cover 55 provinces nationwide.

Vietnam to prioritise key projects of the Mekong Delta

www.vir.com.vn The total state budget investment for the Mekong Delta is expected to be around VND388 trillion ($16.87 billion) during the period 2021-2025. The Standing Committee of the National Assembly issued Resolution No.973/2020/UBTVQH14 dated July 8, 2020, regulating the principles, criteria, and norms of allocating public investment using the state budget for 2021-2025, which stipulates the scoring criteria for the high Mekong Delta region than other regions in the country. According to Nguyen Chi Dung, Minister of Planning and Investment, the total allocated state budget for investment is about VND388 trillion ($16.87 billion) for the local projects in the period of 2021-2025.

colliers.com/en-vn

Daily Real Estate News Highlights Top 5 -Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Which 'gold mine' is being exploited for Vietnamese tourism in the 'new normal' period? www.vietnamplus.vn In the "new normal" period of the green economy, MICE tourism and Golf tourism are considered the top two types capable of meeting the needs of visitors after the damage caused by COVID. Ms. Kim Ngoc, Director, Valuation and Advisory Service, Colliers Vietnam, assessed that at this moment, Vietnam and the world have been showing signs of better control over the COVID-19 pandemic, so the tourism industry in general and MICE service providers in particular were quite optimistic about when tourism activities could be gradually restored to normal.

Which 'gold mine' is being exploited for Vietnamese tourism in the 'new normal' period?

Shares gain on bank and real estate stocks www.vietnamnews.vn The market closed higher on Monday as a series of banking and real estate stocks surged, propelling the indices. The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) rose 0.95 per cent, equivalent to 11.6 points, to 1,236.05 points.

Ho Chi Minh City issued the list of key programs and project for 2021-2025

www.vietnaminsider.vn Additionally, the city released supporting programs just for enterprises and industrial products with eight groups of duties for the 2020-2030 period. Moreover, a supporting program was launched to assist industrial automation firms and food processing companies to develop and the consumption of rubber-plastic products for the period of 2020-2030. Last but not least, the city also had a program to promote the development of food processing companies between 2020 and 2030. When it comes to supporting e-commerce development and export market, the city People’s Committee released an e-commerce development project citywide till 2025 with a vision to 2030 and an export promotion project in the city until 2025 with an orientation towards 2030.

colliers.com/en-vn

The Sun Avenue, a condo project developed by real estate company Novaland in HCM City's District 2. Novaland (NVL) rose 4.3 per cent on Monday

Ho Chi Minh City issued the list of key programs and project for 2021-2025

Daily Real Estate News Highlights Top 5 -Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

The wave of office hunting of technology enterprises has risen sharply www.vnexpress.net Ms. Han Nguyen, Head of Office Services of Colliers Vietnam also said that the pandemic brought two alternating bright and dark pictures to the office rental market. On the one hand, the pandemic has restricted many economic activities, leading to many industries facing hardship, falling into recession and crisis, and enterprises in these sectors were reducing their office space. On the other hand, Covid-19 happened at the right time when the 4.0 industrial revolution turned the information technology industry into a hot and focused industry, so the tenants of this industry increased.

The wave of office hunting of technology enterprises has risen sharply

New decree expected to boost social housing development www.vietnamnews.vn The Government has issued a new decree aiming to promote the development of social housing. The decree will amend Decree No 100/2015/NĐ-CP dated October 20, 2015, which was expected to remove bottlenecks for the development of social housing projects amid a serious shortage of affordable homes in the market.

There is a serious shortage of affordable homes in the market.

Van Phong to be developed into coastal EZ by 2025 www.vov.vn The central coastal province of Khanh Hoa will develop the Van Phong Economic Zone (EZ) into a coastal one that focuses on multi-sector development, turning it into an economic driving force of the province and the south central region. According to an action programme on the development of the Van Phong EZ for the 2021-2025 period, the economic zone is expected to draw at least VND150 trillion (US$6.5 billion) in investment, disburse at least VND75 trillion, and contribute about 30-40% to the local State budget.

Yusen Logistics opens new logistics centre in Binh Duong

www.vir.com.vn On April 5, 2021, Yusen Logistics (Vietnam) Co., Ltd. announced the grand opening of its new Yusen Tan Dong Hiep B Logistics Center in Di An city, Binh Duong province in Vietnam. Yusen Tan Dong Hiep B Logistics Center covers an area of 21,000 square metres of land with 10,000sq.m warehouse area, fully equipped with high selective racking system, 13 container docks, 5,000kg per sq.m floor load capacity, LED-lighting system, high security standards, and a high-end warehouse management system. Strategically located inside Tan Dong Hiep B Industrial Zone, Di An city, this new facility has great accessibility to Ho Chi Minh City centre, Tan Son Nhat International Airport, Cat Lai main port in Ho Chi Minh City, and the future Long Thanh International Airport in Dong Nai. colliers.com/en-vn

Daily Real Estate News Highlights Top 5 - Daily Updated Real Estate News Colliers Vietnam’s Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News

Ho Chi Minh City: Supply of apartments recovered www.enternews.vn According to Ms. Nguyen Thi Hong Yen – Residential Services Manager, Colliers Vietnam, in the first quarter of 2021, the supply of mid-range apartments in Ho Chi Minh City and surrounding areas was still limited, there has not been any significant change compared with the previous quarter. In which, Binh Duong "surpassed" Ho Chi Minh City to become a bright spot of the apartment market. “The real demand for mid-range apartments was still very large, thereby pushing the average price of this segment higher than that in the previous quarter. In fact, the speed of urbanization in Ho Chi Minh City and neighboring provinces like Binh Duong, Dong Nai, etc. was very fast, so the mechanical population growth was also very large. In addition, these areas were also the key economic centers of the South. Therefore, the economic development here also brought about a high demand for human resources and urban areas for this labor force”, Ms. Yen emphasized.

Ho Chi Minh City: Supply of apartments recovered

Forbes hails rising office rents, growth in VN housing market www.vov.vn US business magazine Forbes has recently published an article detailing real estate in Vietnam in which it starts out by stating: “Office rents rising in 2020? Positive GDP growth during a global health crisis? Seems unimaginable, unless you live in Vietnam.” The piece details numerousse achievements Vietnam has recorded over the past year, given the current health and economic hardships faced by nations across the world.

The price of apartments in Ho Chi Minh City has increased by 90% between 2017 and 2020

Proposals for Phu Quoc dream of a second Singapore www.vir.com.vn The island real estate market is awaiting another hot wave on Phu Quoc Island as the prime minister has issued Decision No.486/QD-TTg, approving the partial adjustment of the master plan of the top tourism destination in Kien Giang province until 2030. The new construction plan for Phu Quoc will adjust tens of hectares of its protective forest land to tourism land to strengthen the island’s eco-luxury and sea tourism, as well as resort and entertainment services, to become an international tourism hub in Asia. According to the decision, the total area of the adjusted plan is about 675 hectares, accounting for 1.14 per cent of the total area under the approved general planning. Of which, residential land increases by 168ha, resettlement land by 54ha, and land for transportation by 6.7ha, while protective forest land decreases by 71.9ha. colliers.com/en-vn

Daily Real Estate News Highlights Top 5 -Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News Investing "following" infrastructure: Long-term vision of the real estate giants www.vtv.vn A representative of Colliers Vietnam shared that the real estate market in Vietnam would have positive developments in the next few years when many new projects were implemented, meaning buyers had more choices. However, the current fact was that product designs of each project were similar, not making a difference. “There were many investors developing monotonous projects in terms of design as well as utility. In order to match the trend of sustainable development, the project needed to create long-term value over time. Both real estate investors and real estate buyers need to learn and study very carefully. If they created their own imprint on the architecture and design of their projects, the investors could sell better” Mr. David Jackson, CEO of Colliers Vietnam, said.

Mr. David M. Jackson Chief Executive Officer | Colliers Vietnam

How Vietnam builds up Phu Quoc island to be a second Singapore? www.vietnaminsider.vn The island real estate market is awaiting another hot wave on Phu Quoc Island as the prime minister has issued Decision No.486/QD-TTg, approving the partial adjustment of the master plan of the top tourism destination in Kien Giang province until 2030. The new construction plan for Phu Quoc will adjust tens of hectares of its protective forest land to tourism land to strengthen the island’s eco-luxury and sea tourism, as well as resort and entertainment services, to become an international tourism hub in Asia.

Vietnam's Phu Quoc is home to the world's longest sea cable car route

Pegasus inks agreement with Banyan Tree to manage Dhawa Quy Nhon Resort www.vir.com.vn Pegasus Investment and Consultancy JSC, part of KinderWorld Education Group, a flagship education institution from Singapore, and Banyan Tree Hotels & Resorts today signed a hotel management agreement to operate Dhawa Quy Nhon Vietnam upon the completion of the resort, expected in 2023. Aiming to create an international tourist destination with beautiful landscape and architectural design, Dhawa Quy Nhon Vietnam will be managed by highly-acclaimed and deeply experienced Singapore hotel operator - Banyan Tree Hotels & Resorts - under its Dhawa brand. With an estimated total investment value of S$100 million ($74.6 million), Dhawa Quy Nhon Vietnam is the second phase of Pegasus Education Tourism Development.

colliers.com/en-vn

Colliers News Real estate in 2021 is not for investors for "surfing" www.cafef.vn According to Mr. David Jackson, CEO of Colliers Vietnam, the high rate of urbanization in Ho Chi Minh City led to the rapid increase in demand for housing, but the supply here was gradually scarce, making house prices always "skyrocketing". Therefore, the suburbs of Ho Chi Minh City were gradually noticed by the development of infrastructure, making the connection between the city and these areas more convenient and faster. In particular, the real estate market in Binh Duong was considered to be the most attractive, especially Di An and Thuan An cities - which were only about 1 hour drive from the center of Ho Chi Minh City.

Mr. David M. Jackson Chief Executive Officer | Colliers Vietnam

Central city to develop an international finance centre www.bizhub.vn The central city’s people’s committee and the Import-Export Pan Pacific Group (IPPG) has signed a Memorandum of Understanding (MoU) on the development of an international and regional finance centre to attract investors in the future. Director of the city’s Investment Promotion Agency (IPA), Huynh Thi Lien Phuong said the MoU, which was signed late last month, aimed to build a trading centre, casino, high-end entertainment and luxury apartments in the coastal area.

Coastal area in Son Tra District of Da Nang will become an international finance centre project

VinGroup restarts $1.5 billion tourism entertainment project www.bizhub.vn Local tourism property developer, Vinpearl joint-stock company, a member of VinGroup, has restarted the Van Village project – a luxury entertainment and resort complex – at the foot of the Hai Van Pass after a 10-year hiatus. The Lang Van (Van Village) project, which covers 1,000ha in the former Van Village, will be built with total investment of VND35 trillion (US$1.5 billion) – 10 times as much as its initial approved plan of investment. The site, which is only accessible by boat and by foot, will be one of the largest entertainment and resort projects in Da Nang, and it would host five million tourists per year in the near future.

Branded residences elevate land potential in Vietnam’s metropolises

www.vir.com.vn After some time in hibernation, several golden land spaces in Vietnam’s major metropolises like Ho Chi Minh City and Hanoi are roaring back to life. One highlight of these land plots is their attachment to globally acclaimed brands such as Ritz-Carlton, JW Marriott, and Marriott – and are all developed by Masterise Homes, a member of Masterise Group, which pioneers in bringing world-class excellence to the development, operation, and management of real estate products and services in the Vietnamese market and beyond. colliers.com/en-vn

Daily Real Estate News Highlights Top 5 -Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News Vietnamese people don't just buy real estate to make a profit www.bds.tinnhanhchungkhoan.vn This comment was made by Mr. David Jackson, CEO of Colliers Vietnam when observing the recent market movements, especially after the land fever and the trend of "running to the suburbs" of investors. According to David Jackson, the nature of the investment wave shifting to many provinces might be to take advantage of land prices and some other incentives, but it also came from the actual demand.

Subdivision land plot is a product that is bought and sold a lot.

LG Electronics looking for buyer for smartphone plants www.vir.com.vn South Korean technology giant LG Electronics is shutting down all smartphone plants and is beginning to look for buyers. After announcing to withdraw from the smartphone business, LG Electronics is closing down production plants in Haiphong (Vietnam), Taubate (Brazil), and Qingdao (China) after failing to effect a breakthrough, according to Business Korea. Of these, the Haiphong plant, which is the largest among LG Electronics' smartphone plants with an annual capacity of about 10 million smartphones, equaling about half of LG's total smartphone output, has been announced to find a buyer at the selling price of KRW100 billion ($90 million). Realising the difficulties of finding a local buyer, which is going to manufacture almost 10 million

LG Electronics looking for buyer for smartphone plants

Toong opens 19th outlets despite COVID-19 pandemic www.vir.com.vn Despite being heavily impacted by the COVID-19 pandemic worldwide, Toong has recently opened its 19th outlet in the Indochina region named Toong Nguyen Binh Khiem Saigon, located at Wínk Hotel in District 1 of Ho Chi Minh City. Replacing the traditional business centre inside a hotel, Toong Nguyen Binh Khiem Saigon is inspired by the street, designed in a way that harmonises the shared working space and private studios. Individual customers can come to work 24/7. Enterprises can book long-term serviced offices in order to enjoy the unique design, become part of a community of bold and earnest individuals, and participate in thoughtfully curated art and cultural events. colliers.com/en-vn

Toong Nguyen Binh Khiem Saigon is the first professional work environment to be integrated in a next-gen hotel

Colliers News Industrial property rental rates rose hot, enterprises were confused and suggested by experts www.baoquocte.vn According to Colliers Vietnam, with an impressive economic growth figure, despite the Covid-19 pandemic, at present, the occupancy rate of industrial zones in Hanoi, Ho Chi Minh City and the surrounding areas of the two largest cities in the country were generally at a very high level, mostly at more than 80% or more. Recognizing this problem, responding to TG&VN, Mr. Vu Minh Chi, Industrial Manager, Colliers Vietnam said that with businesses, production activities were closely linked with other partner companies, they could calculate how to move to an area that was within a reasonable amount of time, perhaps 40 or 50 minutes, depending on the choice.

Mr. Chi Vu Industrial Manager Colliers Vietnam

Vingroup to officially launch the region's leading "Sleepless City" model www.bizhub.vn Vingroup Group will officially open the Phu Quoc United Center in the north of Pearl Island (Dao Ngoc) on April 21. With a scale of more than 1,000 hectares and thousands of entertainment items in addition to a 24/7 resort and shopping ecosystem, Phu Quoc United Center will be the first sleepless super complex in Viet Nam, making Phu Quoc a new international destination in Asia. With a total investment of more than VND66 trillion (US$2.8 billion), the Phu Quoc United Centre is developed under the "all-in-one" model. It includes a system of hotel brands from Mini Hotel to 5-star brands such as Vinpearl, VinOasis, VinHoliday and Radisson Blue, with more than 10,000 rooms.

A corner of the future sleepless city. Courtesy Photos of Vingroup

Good control of pandemic will accelerate credit growth: experts www.vietnamnews.vn Credit growth will expand significantly from the second quarter and exceed the State Bank of Vietnam (SBV)’s target of 12 per cent for the year as a whole if the pandemic is brought under control and the vaccination campaign proves effective, according to insiders. Regarding domestic recovery in its strategic investment report for 2021, the VNDirect Securities Corporation forecast that this year's credit growth would top 13 per cent and interest rates could fall 20-50 percentage points in the context of loose monetary policy and low inflationary pressure.

colliers.com/en-vn

Colliers News Experts gave warning of risks from the co-ownership of real estate www.vietnambiz.vn According to Kim Ngoc, Head of Valuation & Advisory Services, Colliers Vietnam, co-ownership of real estate over the past time has had a certain attraction to the market because of its attractive selling price, but also caused many risks. for buyers. Specifically, with this model, the complicated legal process would make the buying, selling, transferring and applying for the construction permit take longer. Real estate activities required the consent of all owners. Therefore, just one of the parties refused, the person wishing to transfer or construction must persuade the other parties to accept, which might lead to a dispute.

The real estate co-ownership model brings many legal risks

Binh Phuoc proposed to take charge of HCMC-Thu Dau Mot-Chon Thanh expy project www.english.thesaigontimes.vn The HCMC government has proposed the prime minister assign the Binh Phuoc government to take charge of executing the HCMC-Thu Dau Mot-Chon Thanh expressway project passing through HCMC and the Binh Duong and Binh Phuoc provinces, requiring an estimated investment of VND36 trillion, or roughly US$1.5 billion. The city has also suggested the Government allocate capital from the State budget for the 2021-2025 period for the project, news site Vietnamplus reported.

Vehicles travel on the HCMC-Long Thanh-Dau Giay expressway.

Da Nang allows foreigners to buy houses in 17 projects www.vir.com.vn The Construction Department of central Da Nang city has listed 17 commercial housing projects in which foreign organisations and individuals can buy units. The projects include Blooming Tower, Golden Square complex, Quang Nguyen Apartment complex, Thuy Tu urban area, Harmony Tower, and Da Nang FPT Technological Urban Area. The city also disallows foreigners from owning property in three projects, namely F-Home Apartment complex, Da Nang Diamond Tower, and IndoChina Riverside Tower. The department suggested the Department of Natural Resources and Environment and relevant agencies review the grant of licences to foreign organisations and individuals in projects that are off-limits to foreign buyers.

colliers.com/en-vn

Colliers News Investing in terraced houses is highly profitable www.laodong.vn Mr. David Jackson, CEO of Colliers Vietnam, said that the high urbanization rate in Ho Chi Minh City led to the rapid increase in demand for housing, but the supply here was gradually scarce, making house prices always “skyrocketing”. Therefore, the suburbs of Ho Chi Minh City were gradually noticed by the development of infrastructure, making the connection between the city and these areas increasingly convenient and faster. In particular, the real estate market in Binh Duong was considered to have the most attraction, especially Di An and Thuan An cities.

Mr. David M. Jackson Chief Executive Officer | Colliers Vietnam

FLC Group plans Bamboo Airways IPO in the U.S. www.english.vov.vn FLC Group, Vietnam’s multi-industrial conglomerates, is planning an initial public offering (IPO) of its airline, Bamboo Airways, in the United States that could raise about US$200 million, Reuters reported. Bamboo Airways is planning to sell 5-7% of its share in the IPO this Q3 and seeking a valuation of at least US$4 billion after the listing. “The IPO is a part of our efforts to expand services globally,” said FLC Group chairman Trinh Van Quyet. The airline has been working with an international auditing firm for the potential listing on the New York Stock Exchange. Bamboo Airways last month announced it will list its share on the Vietnam Stock Exchange in Q3, however, Quyet told Reuters that “it was a backup plan, depending on market conditions”. Bamboo Airways plans to increase its fleet from the current 30 to 40 by the end of this year, including two new Boeing 787-9 Dreamliners, Quyet added.

FLC Group plans Bamboo Airways IPO in the U.S.

IPCS launches investment promotion web portal www.english.thesaigontimes.vn The Investment Promotion Center-South Vietnam (IPCS), under the Ministry of Planning and Investment’s Foreign Investment Agency (FIA), rolled out its investment promotion web portal on https://ipcs.mpi.gov. vn/ this morning, April 15, in HCMC, which will function as an investment data center to serve 21 southern provinces and cities. The web portal will feature a source of Vietnam’s latest laws and investment regulations, investment procedures and the environment in southern localities, especially in Vietnam, investment portfolios by phase as well as investment promotion activities held by IPCS in coordination with organizations, units at home and abroad. Also, enterprises and investors can send their queries about investment issues on the platform. colliers.com/en-vn

Daily Real Estate News Highlights Top 5 -Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News Serviced apartments "are blocked" supply www.tinnhanhchungkhoan.vn Not only being lack of new supply, Covid-19 had a rather negative impact on the launch of new projects, possibly delaying the completion and commissioning of new projects. Colliers predicted that this year, Ho Chi Minh City market would launch two projects, Sonata Residence and The Berkley with the number of 250 and 85 serviced apartments, respectively, contributing to a cumulative supply of more than 6,500 apartments in HCMC. Meanwhile, the supply forecast of the Hanoi market in the coming years might increase by more than 700 apartments, coming from 6 projects.

Foreign investors dominate in providing quality serviced apartment products in the market.

Vingroup seeks to build auto plant in Ha Tinh www.vietnaminsider.vn Vingroup is seeking to build an auto and spare parts manufacturing complex, including port infrastructure in the central province of Ha Tinh. Vingroup’s real estate subsidiary Vinhomes recently sent the proposal on the project to provincial authorities. Under the recommendation, the complex would cover 2,000 hectares at Vung Ang Economic Zone, including a VinFast auto factory and facilities to make auto parts and hi-tech audio-visual equipment. The project will include the construction of a port and logistics infrastructure for serving the auto plant as well as a hotel and some tourism services. Of the total area of 2,000 hectares, around 500 hectares would be ocean water. The first phase of the project would be conducted in two parts after the construction license is issued. The second phase will be started after the first phase is put into operation for 3-5 years.

Vingroup seeks to build auto plant in Ha Tinh

Lotte Group to shut down restaurant business Lotteria in Vietnam? www.english.vov.vn Fast-food restaurant chain Lotteria – a subsidiary of the Republic of Korea's Lotte Group – could close its Vietnamese franchise due to tepid performance. Lotte Group's restaurant business unit (Lotte GRS) has been shutting down its Lotteria restaurant chain in Indonesia in 2020. Furthermore, the Republic of Korea (RoK) giant also implied that it would close down Lotte Group’s food material supplier in Vietnam, which was established in early 2020 to expand Lotte GRS' business in neighbouring Southeast Asian countries. According to Lotte GRS and Lotte Holdings, Lotteria hamburger chains overseas are being shut down due to the COVID-19 pandemic. Lotte GRS' overseas office in Indonesia is currently undergoing liquidation.

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Colliers News Positive signals in many real estate segments in the Q1/2021 www.baotainguyenmoitruong.vn Colliers Vietnam report showed that, in Q1 of this year, the office segment continued to record the recovery trend of the market in all three major cities. The average offered rental rate in Hanoi and Ho Chi Minh City both increased year on year. Meanwhile, the average occupancy rate in Da Nang increased by 6% q-o-q. Traditional offices would not be too challenged by new ways of working in the near future, while co-working spaces and virtual offices would likely have more demand. In the apartment segment, Hanoi market had 1,300 new apartments launched in Q1/2021 and mostly in the middle and high-end segment. It was forecasted that the supply of apartments for the Ho Chi Minh City market this year would be concentrated in Thu Duc City.

Positive signals in many real estate segments in the Q1/2021

HCM City strives to become top regional investment destination www.english.vov.vn Ho Chi Minh City has taken bold steps as part of efforts to establish itself as a leading destination in the region for investment, renovation, and science-technology by 2025, thereby creating a fair and safe business environment for both local businesses and investors. In line with a new plan recently issued by the municipal People’s Committee for the 2021 to 2025 period, the southern metropolis is set to continue improving the Provincial Competitiveness Index (PCI). This will be done while seeking measures aimed at improving the investment and business environment towards enjoying easier, more transparent, and fairer orientations.

Ho Chi Minh City has taken bold steps as part of efforts to establish itself as a leading destination in the region

High-tech success resting on investment www.vir.com.vn Vietnam is a fertile ground for high-tech development, for both domestic and international tech companies. The population is young, well-educated, and digitally-literate. Smartphone and internet penetration rates, for instance, outperform many other countries around the region and the wider world. For this reason, many European enterprises – including those in EuroCham’s active Digital Sector Committee – have decided to base their operations here to take advantage of Vietnam’s infrastructure, labour force, and future growth potential.

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Colliers News Apartment prices in Hanoi will increase more strongly than HCMC in 2021 www.tinnhanhchungkhoan.vn Forecasting the supply of apartments in two major cities, Hanoi and Ho Chi Minh City, Colliers said that in 2021, Hanoi might have about 25,000 more apartments, while in Ho Chi Minh City, this figure would be 40,000 units. According to Colliers, by the end of Q1/ 2021, apartment prices in Ho Chi Minh City increased by an average of nearly 3.5% over the same period last year. Even in a busy area like Thu Duc City, the offered price has increased by 7-9% in the past year. In Hanoi, it was forecasted that the average price of an apartment would also increase by about 7% this year. According to Colliers, the supply in the two major cities was expected to be more abundant as the legislation was gradually unleashed.

The supply of apartments in Hanoi will be about 25,000 units in 2021

Vietnam becoming an R&D hub for global tech giants www.vnexpress.net Samsung Electronics is building a $220-million R&D center in Hanoi, and U.S. chip company Qualcomm has set up its first R&D facility in Southeast Asia in Vietnam. The former is expected to be completed in 2022 and employ 3,000 engineers. The South Korean giant also has other R&D centers in Vietnam to research into mobile devices, household electrical appliances, artificial intelligence, and data analysis.

An artist's impression of Samsung Electronics' research and development center in Tay Ho

Exclusive PGA Ocean golf course opens at NovaWorld Phan Thiet www.bizhub.vn NovaWorld Phan Thiet last week opened a part of the exclusive PGA Ocean golf course. The opening was part of activities to mark the 46th Binh Thuan Province Liberation Day on April 19. PGA Ocean Golf Course is one of two 18-hole golf courses right inside the 1,000-hectare NovaWorld Phan Thiet complex in the south-central province. The two are also the only golf courses in Viet Nam to meet the international standards and have exclusive rights from the Professional Golfers’ Association (PGA) to organise the tournaments. PGA Ocean, built on an area of 88.4 hectares, has a coastal golf course style. It is one of the longest in Viet Nam with a length of 7,400 yards and a par 72.

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Colliers News Buying goods because of high prices - a strange phenomenon of real estate brands www.dantri.com.vn The selling price of USD 18,000 / m2 in the Hong Kong market of Grand Marina project, Saigon was very different from other apartment projects in the market. Many people were thinking that the price of the luxury apartment segment was so high that it was beyond Vietnamese people's ability to pay out of pocket. “We believed that the demand for branded homes in Vietnam would increase rapidly, even though the tourism industry was affected,” said David Short, Head of Sales and Leasing (North), Colliers Vietnam. The COVID-19 pandemic was badly affected, but the demand for luxury apartments would increase when visitors wanted to stay in a fully furnished house instead of a hotel room,” said David Short.

Mr. David Short Head of Sales and Leasing (North) Colliers Vietnam

Vietnam becomes fourth largest seafood supplier to Japan www.vir.com.vn The ministries of natural resources and environment along with construction, as well as local authorities, are setting up solutions to halt the ramped-up hikes in land price nationwide. One of the top proposals involves fines for circulating fake or inaccurate news in the market. There are currently regulations on forcing such fines on speculation activities in Article 196 of the 2015 Criminal Code, but a more detailed guideline must be mapped to help local authorities ensure better implementation, the ministries say.January 2020.

Ministries cook up solutions to curb wild land hikes

Six more metro trains to arrive in HCMC www.english.thesaigontimes.vn Two metro trains with three carriages each of HCMC’s first metro line project linking Ben Thanh Market in District 1 with Suoi Tien Theme Park will be transported to the city in early May, while four other trains with six cars each will arrive in the city two months later. The HCMC Management Authority for Urban Railways (MAUR), the investor of the project, made an announcement on April 22 after Japan’s Hitachi Group, the contractor of the metro line project, updated a detailed plan to ship six more trains to the city. The two three-car trains will be shipped from the Kasado Works plant in Japan on May 1 and arrive in HCMC nine days later. Three or four days later, the two trains will be transported to Long Binh Depot in Thu Duc City. Two six-car metro trains will arrive in the city in June, while two others will be shipped to HCMC in July.

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HCM City apartment market lacks new supply of affordable units www.vietnamnews.vn High- and mid-priced apartment projects continued to lead the HCM City market in terms of new supply in the first quarter, with affordable units remaining scarce, according to real estate consulting firms. With 4,900 units, primary stock was down 56 per cent quarter-on-quarter and 31 per cent year-on-year, according to Savills Vietnam’s quarterly report on the city property market.

Apartment buildings in HCM City

Q2 Thao Dien welcomes residents with outstanding facilities

www.english.thesaigontimes.vn Having started construction in 2018, Q2 Thao Dien, a luxury mixed use development, is at the final stage of completion. Developed by Frasers Property Vietnam in partnership with An Duong Thao Dien Real Estate Trade Joint Stock Company, the project will be ready for handover to residents by the end of April 2021. Q2 Thao Dien is developed under the unique “Live - Work - Enjoy” concept with a variety of products including apartments, villas, townhouses, commercial shops, and office space, offering a diverse range of options for residents and investors. With the dedication of an experienced international real estate developer, the investor has developed the project on schedule to the most rigorous standards.

Q2 Thao Dien welcomes residents with outstanding facilities

Bank and real estate giants team up www.vnexplorer.net Indochina Kajima Development Ltd., a joint venture from Indochina Capital and Kajima Corporation, last week signed a strategic partnership with VietinBank with the aim to provide the market with innovative real estate that addresses both current and future demands. With an investment commitment of $1 billion in Vietnam, Indochina Kajima aims to develop a portfolio of resorts, urban hotels, residential areas, offices, and industrial projects. It is committed to creating innovative real estate, enriching the communities in which it operates. The company’s first statement in Vietnam is Wink Hotels – a chic, fun, vibrant hotel brand born in Vietnam for Vietnam with a pipeline of over 20 hotels across the nation. Indochina Kajima last month celebrated the opening of Wink Hotel Saigon Centre in District 1, which was followed by a groundbreaking ceremony for a luxury resort project in Bai Nom, in the central province of Phu Yen.

Belgian enterprises eye business expansion in Vietnam

www.en.vietnamplus.vn Belgian enterprises expressed their interest in Vietnam’s economic prospects and business cooperation opportunities in the Southeast Asian country at a talk held in Brussels on April 22.

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Daily Real Estate News Highlights Top 5 -Daily Updated Real Estate News Colliers Vietnam's Real Estate Highlights is the daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Colliers News Why does land fever soon stop? www.doanhnhan.plus Mr. David Jackson, CEO of Colliers Vietnam, said that in Q1/2021, the rapid increase in land prices in certain areas came from information about the roadmap of infrastructure development, planning, the growth of FDI, the speed of urbanization and investment psychology of Vietnamese people in the Covid period. Information about the planning and development policy of certain areas was also a direct factor causing the land prices of these places to skyrocket in recent years. In 2021, the government accelerated the disbursement of public investment, causing a "wave" of new infrastructure projects to be approved along with a series of old projects to restart after the "hibernation" period. In addition, domestic capital, foreign direct investment (FDI) inflows into Vietnam's real estate market in Q1/2021 reached USD 597.7 mil, up 47.4% over the same period last year. The newly formed and expanded industrial parks also led to an increase in demand for other real estate segments such as residential, commercial and office buildings.

Mr. David M. Jackson Chief Executive Officer | Colliers Vietnam

An icon of luxury living in Thu Duc City www.tuoitrenews.vn Much like Ho Chi Minh City's broader planning, Thu Duc City comprises eight creative centers, including three main zones: Thu Thiem New Urban Area, the High-Tech Park, and the Vietnam National University-Ho Chi Minh City, which form the technological and financial center, the automated production center, and the information and technology education center, respectively. With structured, professional planning, Thu Duc City is fast becoming a beacon for business people and intellectuals looking for a new place to live and work.

Masteri Centre Point has a tranquil green area

VEPR: Vietnamese economy could grow by 6.3% in 2021 www.bizhub.vn In the first quarter, Viet Nam’s economic growth hit 4.48 per cent thanks to the Government’s drastic actions to control the pandemic from the early stages, along with the signing of the European Union – Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement.

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Colliers News The brand value brought apartment prices to millions of dollars www.tuoitre.vn The selling price of VND 423 mil / m² in the Hong Kong market of the Grand Marina, Saigon is very different from other apartment projects in the market. Many people are thinking that the price of the luxury apartment segment is so high that it is beyond Vietnamese people's ability to pay. Mr. David Short, Head of Sales and Leasing (North) of Colliers Vietnam said: “We believed that the demand for branded residences in Vietnam would increase rapidly. Although the tourism industry has been hit hard by the Covid-19 pandemic, the demand for luxury apartments would increase when visitors wanted to stay in a fully furnished house instead of a hotel room,” said David Short.

Mr. David Short Head of Sales and Leasing (North) Colliers Vietnam

FIEs pour over $2.5 billion into Dong Nai industrial zones in Q1 www.vir.com.vn Foreign-invested enterprises (FIEs) have poured more than $2.5 billion into Dong Nai industrial zones (IZs) in the first quarter, an increase of nearly $100 million over the same period last year. According to Dong Nai Industrial Zones Management Authority, FIEs use the capital to buy machinery and raw materials to increase the capacity of their factories, manufacturing products for local and foreign markets. Also, FIEs have achieved over $5.7 billion in total revenue, up 12 per year against the same period last year. Thanks to the positive results, FIEs continue to expand production and sales.

Foreign investors pour over $2.5 billion into Dong Nai's industrial zones in Q1

US group proposes US$15 billion LNG project in Soc Trang www.english.vov.vn Millennium Energy Vietnam Co., Ltd., a member of the US-based Millennium Group, has proposed to develop a liquefied natural gas (LNG) project in Soc Trang province. Once approved, it would be the largest LNG project in the Mekong Delta region. The project has a designed capacity of 9,600MW. The investor needs an area of 200 hectares to develop the project. The construction will be implemented in two phases.

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US group proposes US$15 billion LNG project in Soc Trang

Colliers News Will there be a cut loss, sell off land? www.soha.vn Mr. David Jackson, CEO of Colliers Vietnam said that in the coming time, the sale and cut loss of land plots may occur in some neighboring provinces of Ho Chi Minh City and Hanoi, because the land fever in these areas last time was not really healthy. Questioning with Colliers Vietnam expert, whether there would be a price cut or cut loss in the land plot segment in the coming time after an abnormal land fever, Mr. David Jackson said that, in early 2021, the land plot market recorded a strong growth in selling prices in certain regions. However, the sign of land fever has cooled down and the number of new transactions has also started to slow down in the recent period. This was due to the fact that the land plot market was saturated in selling price due to the lack of new factors. In general, the land plot segment in big cities would not have a massive price reduction or cut loss in 2021 because the real demand for this type of real estate was still very high.

Mr. David M. Jackson Chief Executive Officer | Colliers Vietnam

British group intends to develop rooftop solar projects in Dong Nai www.vir.com.vn British group Shire Oak International Ltd. has recently unveiled intentions to develop rooftop solar projects in the southern province of Dong Nai this year. The information was shared at a meeting with provincial authorities. Chris Hooun, global strategy director of Shire Oak International Ltd., said that the group wants to invest in the province by cooperating with enterprises, schools, hospitals, agencies,

Dong Nai province committed to offer the best conditions for Shire Oak International's rooftop solar projects

Southeast Asia’s largest LPG underground storage facility to soon operate www.english.vov.vn A US$1.35 billion underground storage facility for liquefied petroleum gas (LPG), the largest of its kind in Southeast Asia with a huge storage capacity of 240,000 tonnes, is expected to soon become operational in the Mekong Delta province of Ba Ria - Vung Tau. As part of a polypropylene plant project by the Korean-funded Hyosung Vina Chemicals company, the storage cavern has been built at a depth of between more than 100m to nearly 200m above sea level, with 95% of its workload completed. Engineer Pham Thi Hong, an operator of the facility, said the facility lies under a layer of hard rock and is designed in an egg-shaped form so that the pressure is distributed evenly. Meanwhile, its other technical factors will keep LPG from leaking out, she added. Wie Chol Ryang, chief operator of the underground construction, underscored its absolute safety against earthquakes, tsunamis, or volcanoes. colliers.com/en-vn

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