Monthly Real Estate News I Apr 2022

Vietnam Monthly Real Estate News April 2022

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Daily Real Estate News Highlights Top 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

In the first quarter of 2022, real estate continues to attract new registered FDI capital www.realtimes.vn In order for the market to develop healthily, Mr. David Jackson, CEO of Colliers Vietnam recommended that the authorities should continue to maintain the reform of the domestic investment environment appropriately, making it more attractive in the eyes of international investors. Accurately identifying major market problems and finding ways to solve them would clear the bottlenecks. Efforts to reform administrative procedures in the direction of shortening the processing time of dossiers and costs in investment and construction of real estate projects would also bring good results in attracting investment.

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

Hanoi builds $175 mln waste-to-energy plant www.vnexpress.net Hanoi on Wednesday began construction on a VND4 trillion ($175.1 million) waste-to-energy plant in Son Tay Town. The Seraphin waste-to-energy plant at the Xuan Son solid waste treatment facility, to be funded by multiple sources, will have a treatment capacity of 1,500-2,000 tons each day and have an electricity production capacity at 37 MW. Construction is expected to be completed in 20 months.

Illustration of the Seraphin waste-to-energy plant at the Xuan Son solid waste treatment facility in Hanoi's Son Tay Town.

Ministry proposes tough measures against firms canceling land contracts www.thesaigontimes.vn Following the recent controversial auction of land in the Thu Thiem New Urban Area in HCMC’s Thu Duc City, the Ministry of Natural Resources and Environment has proposed sanctions against firms winning land auctions but later canceling the deals. The ministry is consulting with the relevant agencies and organizations over a draft resolution amending and supplementing some decrees guiding the implementation of the Land Law. In particular, those participating in land auctions must be eligible for the land lease in line with the law, have capital that can fund at least 20% of the investment in projects covering less than 20 hectares of land and 15% of the investment in projects covering 20 hectares and above.

MayBank Kim Eng: Van Phu – Invest’s annual revenue is expected to hit US$109.3 million thanks to Vlasta Sam Son project in 2022 www.thesaigontimes.vn The Van Phu – Invest Investment Joint Stock Company (HoSE: VPI) anticipates a return of US$109.3 million in revenue from Vlasta Sam Son project, with the contribution of US$33.6 million from its three other ongoing projects, reported by Maybank Kim Eng Securities Limited (MBKE). colliers.com/en-vn

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Daily Real Estate News Highlights Top 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

COVID-hit rental property market starts to warm up www.vietnamnet.vn According to David Jackson, CEO of Colliers Vietnam, along with the economic recovery, the rental demand was increasing. Many landlords were still offering discounts averaging 10-15 per cent compared to pre-pandemic times, he said, stressing that it was good time to look for rental properties as rents were still relatively cheap and there were a number of choices now. If the pandemic continued to be under control and did not cause any considerable negative impacts, the rental market would bounce back to the pre-pandemic level in a few months, he said.

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

Hanoi’s import-export revenue rises 14.7 percent in first quarter www.nhandanonline.vn Hanoi’s import and export activities reported positive results in the first quarter of this year with total import and export revenue reaching 12.7 billion USD, up 14.7 percent over the same period in 2021, according to the Hanoi Department of Industry and Trade. The city’s export revenue was posted at 3.6 billion USD, up 6.1 percent, while import revenue reached 9.1 billion USD, up 18.5 percent over the same period last year.

Hanoi’s import and export activities report positive results in the first quarter of this year

VSIP becomes destination for multinational corporations www.vnexpress.vn VSIP Binh Duong industrial park has attracted several multinational corporations looking to establish headquarters and factories. In 1996, Vietnam - Singapore Industrial Park (VSIP) was established in Thuan An, Binh Duong Province. With a total foreign direct investment of $6.4 billion and an estimated export turnover of $8 billion, VSIP Binh Duong has attracted almost 600 investors, creating nearly 150,000 jobs. All VSIP Binh Duong's strategic partners are prominent companies and corporations from Vietnam and around the world.

Technology to help F&B recover www.bizhub.vn Technology applications have played an important role in helping the food and beverage (F&B) market in Viet Nam get back on track after two years of challenges due to the pandemic, experts have said. As one of the most promising markets with rapid growth in Asia, Viet Nam has always been an attractive destination for investors, especially in F&B. In today's rapidly evolving and transitioning digital age, technology is a prerequisite for the long-term and sustainable growth of businesses. colliers.com/en-vn

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Daily Real Estate News Highlights Top 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

Colliers Expert: "If Thu Duc City has apartments around VND 50 mil/m2, it is considered a rare commodity" www.cafef.vn Talking about the story of real estate prices in Thu Duc City (HCMC), Mr. David Jackson, CEO of Colliers Vietnam said that housing prices in this area were continuously "setting new peaks" in about 2 recent months. Currently, the supply of new real estate was mostly in the mid- and high-end segments. The average price of mid-range apartments was about VND 60-75 mil/m2. “Accordingly, if there is still a supply of apartments of around VND 50 mil/m2 in Thu Duc City at this time, it is a "rare commodity", capable of strongly attracting attention from people who have demand in living. People with real housing needs will understand that this is the remaining opportunity for them to find a place to live in Thu Duc City, meanwhile, investors will certainly have confidence in the great profit when assessing the potential for price increase of this area,” emphasized Colliers Vietnam expert.

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

Choosing the three safest markets in Southeast Asia for investors, Vietnam is highly appreciated www.vietnaminsider.vn Through interviews with analysts from Goldman Sachs and JPMorgan Asset Management about which markets in Southeast Asia are their top picks, the top three markets are Vietnam, Indonesia and Singapore.

JPMorgan Asset Management highly appreciates the Vietnamese market, as Mr. Desmond Loh, portfolio manager at JPMorgan Asset Management, considers Vietnam a “star in recent years” in terms of economic resilience and growth.

Choosing the three safest markets in Southeast Asia for investors, Vietnam is highly appreciated

IDICO to issue VND400 billion worth of bonds www.thesaigontimes.vn IDICO Corporation JSC (IDC), which is listed on the Hanoi Stock Exchange with the stock code IDC, has passed a plan to issue VND400 billion worth of bonds this year to raise funds for the development, operation, repair and maintenance of the Dak Mi 3 hydropower plant. The three-year bond is expected to be issued this month, with an annual coupon of 8%. IDICO plans to use shares of IDICO Infrastructure Development Investment JSC, IDICO Investment Construction Oil and Natural Gas JSC, IDICO Long An Investment Construction JSC, and term deposits as security for the debt.

colliers.com/en-vn

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Daily Real Estate News Highlights Top 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 untold story in the apartment market in the West of Saigon www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam said that the West area was absent from new projects if compared with the East and South areas. However, it was worth mentioning that the West area had the largest population in Ho Chi Minh City, the real demand was very large. "We know that the number of projects in the West area is quite rare recently, so there have not been many notable market movements. It can't be ignored that the potential of the West area has not been noticed yet. When the market has a shift, the potential of this area will be evaluated and paid more attention," said Colliers Vietnam expert.

The untold story in the apartment market in the West of Saigon

WB revises down Vietnam’s 2022 GDP growth forecast to 5.3% www.thesaigontimes.vn The World Bank has revised its forecast for Vietnam’s gross domestic product (GDP) growth this year to 5.3% from the 5.5% predicted early this year, based on Vietnam’s policies to cope with Covid-19, the manufacturing and processing sector’s performance and the domestic demand.

A view of the Haiphong Port in the northern city of Haiphong

Foreign arrivals to Vietnam surge in Q1 www.vietnamplus.vn The number of foreign arrivals to Vietnam in the first quarter of this year jumped 89.1 percent year-on-year to 91,000 as the country has fully reopened and many international flights have been restored, according to General Statistics Office (GSO).

Samsung hopes for favourable conditions to expand in Danang www.vir.com.vn Samsung Vietnam expressed its interest in increasing investments in the central region, particularly Danang, and is now hoping for favourable conditions to realise this endeavour. Choi Joo Ho, CEO of Samsung Vietnam, said in a meeting with the leadership of Danang People’s Committee on April 1 that the company expects to receive favourable conditions for implementing research and investment promotion activities in the city.

According to Ho, Samsung Vietnam is initially investing in the hotel sector, creating the basis for Samsung Vietnam and other member companies to expand their operation in the city.

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Daily Real Estate News Highlights Top 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

Construction costs push real estate prices up www.cafeland.vn According to Colliers, investors will be forced to increase selling prices because the price of materials, which account for about two-thirds of total construction costs, is increasing day by day. They will find it difficult to continue operating with low profit margins because they have suffered heavy losses during the pandemic.

According to Colliers, industrial, logistics and warehouse real estate developers in the Grade A segment can overcome the storm of price increases thanks to high customer demand. However, small establishment owners or in lower segments will have to consider the cooperation option depending on each project to balance the costs.

Construction costs push real estate prices up

Vietnam to lead recovery in Southeast Asia: ADB www.vnexpress.vn The Vietnam economy is expected to rebound to 6.5 percent this year and further expand to 6.7 percent in 2023, the highest in Southeast Asia. The regional average will be 4.9 percent in 2022 and 5.2 percent in the next year, according to a report released Wednesday by the Asian Development Bank.

Workers at An Ha Industrial Park, Ho Chi Minh City's, Binh Chanh Dist., 2021

RCEP benefiting Vietnam with actions taken www.nhandanonline.vn With great opportunities and challenges from the Regional Comprehensive Economic Partnership, which has been in place for over three months, Vietnam has been taking drastic actions to protect local businesses and help them materialise windfalls from the deal.

Retail sales of goods, services hit US$56.9 billion in first quarter www.vov.vn The first quarter of the year witnessed the nation’s total revenue from retail sales of goods and services reach US$56.9 billion, a year-on-year rise of 4.4%, according to the General Statistics Office (GSO). The opening quarter saw trade and service activities gradually recover, with the total retail sales of consumer goods and services throughout the reviewed period higher than that of the same period recorded in previous years.

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Daily Real Estate News Highlights Top 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

Digital transformation is the "race" for survival of real estate businesses? www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam affirmed that digital transformation was the survival race of enterprises in general and real estate in particular. This was the foundation to enhance the competitiveness of enterprises in the volatile market. This expert said that an important trend in the real estate field today was called Proptech (property technology) - the application of information technology and platform economics to the real estate sector. "The benefit of digital transformation is to contribute to making the market more transparent when both investors and buyers can easily find relevant information; connecting investors with potential customers more accurately and efficiently; making transactions faster and more convenient; helping investors who don't have a lot of capital to still find profits through new investment models", expert Colliers Viet Nam emphasized.

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

HCMC People’s Council approves VND24 trillion for Ring Road No. 3 project www.thesaigontimes.vn The HCMC People’s Council has passed a resolution to develop the Ring Road No. 3 project as proposed by the municipal government with an estimated cost of over VND75 trillion, including VND24 trillion to be sourced from HCMC’s budget.

A map shows the direction of Ring Road No. 3

Ho Chi Minh City spends 93 billion to connect buses with 11 elevated metro stations www.vietnaminsider.vn Project metro No. 1 Ben Thanh – Suoi Tien currently reaches more than 89% and is being prepared for trial operation from the end of this year, Ho Chi Minh City wants to soon invest in building synchronous technical infrastructure, serving people to access the most convenient stations.

Da Nang records positive economic recovery in Q1 www.nhandanonline.vn The central city of Da Nang posted a year-on-year growth of 0.89 percent in its Gross Regional Domestic Product (GRDP) in the first quarter of 2022. The locality recorded increases of 2.6 percent, 1.96 percent, and 0.80 percent in its agro-forestry-aquaculture, industry-construction, and services, respectively, in the reviewed period.

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Daily Real Estate News Highlights Top 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.

Strategic agreements signed to develop HCM City’s new downtown www.vir.com.vn Graham Stuart, the British Prime Minister’s Trade Envoy to Vietnam, Cambodia and Laos, witnessed a signing ceremony yesterday of strategic agreements between Masterise Homes with Foster+ Partners and Quimera Energy Efficiency (QEE) to develop The Global City, a new downtown project in HCM City.

The Global City, a new downtown project in HCM City.

$570-mln section of Vietnam’s longest expressway near completion www.vnexpress.vn An expressway connecting the Van Don Economic Zone and Mong Cai Town in northern Quang Ninh Province is expected to be completed in the second quarter this year. Van Don – Mong Cai Expressway, connecting to the 300-km Hanoi – Ha Long Expressway to become the longest expressway in the country, is receiving the final touch. It will run more than 80 kilometers (50 miles) and have four lanes to allow a maximum speed of 120 kph. Once completed, the section will shorten the time to travel from Van Don Economic Zone to Mong Cai Town that borders China to 50 minutes instead of two hours.

Van Don – Mong Cai Expressway, connecting to the 300-km Hanoi – Ha Long Expressway to become the longest expressway in the country, is receiving the final touch.

VN aims for higher sovereign ratings by 2030 www.bizhub.vn Viet Nam aims to raise its sovereign ratings by 2030, according to the Sovereign Rating Improvement Project recently approved by eputy Minister Le Minh Khai. Specifically, Viet Nam wants to achieve a credit rating of Baa3 (for Moody's) or BBB- (for S&P and Fitch) and above by 2030.

Hanoi enjoys positive economic growth in first quarter www.vov.com.vn The capital’s economic growth rate during the first quarter of the year showed signs of a remarkable improvement thanks to timely and effective solutions, demonstrating its resilience and development after suffering from the impact of the COVID-19 pandemic.

Da Nang deploys “Market 4.0” model www.vietnaminsider.vn According to Mr. Huynh Ngoc Thuong, Director of Viettel – Da Nang Branch, before launching Market 4.0, Viettel Da Nang has built deposit/withdrawal points (right in the market and around the market); equipped with VietQR code for more than 1,000 merchants at 03 big markets of Da Nang city: Con Market, Han Market and Dong Da Market, connected with 37 banks and e-wallets to create Viettel Money accounts to support for small businesses and customers to make transactions of transferring, depositing, withdrawing money and buying and selling online quickly, easily, anytime, anywhere at the aforementioned markets.

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Daily Real Estate News Highlights Top 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 move of this big man makes Vietnam's industrial real estate come to an "unstoppable" time www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam said that, from now to 2025, it was estimated that Vietnam would need about 350,000 m2 of new warehouses to meet the needs of this industry when the revenue reaches USD 25-27 bil. According to Colliers Vietnam expert, an important driver of industrial real estate in the coming years is the "unstoppable" growth of e-commerce.

The move of this big man makes Vietnam's industrial real estate come to an "unstoppable" time

HCM City calls for $12.4 billion of investment into suburban districts www.bizhub.vn

President Nguyen Xuan Phuc has urged the suburban districts of Cu Chi and Hoc Mon in HCM City to review all public investment projects, especially their feasibility, and improve the business climate to attract investment. Speaking at a conference to promote investment in Cu Chi and Hoc Mon on Tuesday, Phuc said the city should promote investment in the two suburban districts as part of the plan to develop the city further to the northwest, creating long-term livelihoods for residents and developing new sustainable urban areas.

President Nguyen Xuan Phuc (third from left) looks at the planning map of two suburban districts of Hoc Mon and Cu Chi.

A driving force to boost development of logistics services in Danang www.vir.com.vn Once put into operation, the Danang ITL Logistics Distribution Centre promises to bring vibrancy to the logistics sector of the central region. Overcoming supply chain disruptions during the pandemic, the logistics sector is expected to make a breakthrough in the coming time with ample opportunities from free trade agreements and the e-commerce boom during the reopening phase.

Tightening real estate loans can curb speculation, stabilize market: experts www.vnexpress.vn According to Mr. Huynh Ngoc Thuong, Director of Viettel – Da Nang Branch, before launching Market 4.0, Viettel Da Nang has built deposit/withdrawal points (right in the market and around the market); equipped with VietQR code for more than 1,000 merchants at 03 big markets of Da Nang city: Con Market, Han Market and Dong Da Market, connected with 37 banks and e-wallets to create Viettel Money accounts to support for small businesses and customers to make transactions of transferring, depositing, withdrawing money and buying and selling online quickly, easily, anytime, anywhere at the aforementioned markets.

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Daily Real Estate News Highlights Top 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 Giants race to buy, sell, and merge million-dollar projects www.plo.vn Representative of Colliers Vietnam said that M&A also helped to increase the supply and liquidity of real estate, contributing to creating more excitement for the market. In particular, real estate corporations also saved time in handling legal procedures, finding land with suitable locations in the context of rising real estate prices. According to the representative of Colliers Vietnam, M&A deals worth hundreds of millions of USD or more are still played by domestic corporations thank of advantages such as existing reputation, project development and effective sales experience.

Giants race to buy, sell, and merge million-dollar projects

VN trade forecast to set new record this year www.vietnamnews.vn Experts are optimistic about Việt Nam’s trade this year, driven by the enforcement of new-generation free trade agreements (FTAs), forecasting that total import-export revenue might hit a record US$700 billion. The first quarter saw positive results in exports and imports with a trade revenue of $176 billion, representing a rise of 14.4 per cent against the same period last year.

Tân Cảng Cái Mép International Terminal.

Reopening pressures space for ventures www.vir.com.vn Although many South Korean investors were overjoyed with the reopening of international borders, land plots are increasingly rare in Vietnam due to limited supply and slow land clearance, pushing prices up. “The pandemic caused many projects to be delayed or not implemented at all,” said Hong Sun, vice chairman of the Korean Chamber of Commerce in Vietnam. “Now, flights from South Korea to Vietnam are all full.”

About 9,500 South Korean companies have invested in Vietnam, while many others are promoting new plans. A large tech project is being negotiated, according to Sun, saying that if the government allows implementation, it “will be the number one investment in the digital sphere in Vietnam”.

Masan bets on mini malls to reach new revenue milestone www.vnexpress.net Private conglomerate Masan Group is eyeing a new revenue peak of VND100 trillion ($4.37 billion) this year by betting big on its "mini mall" strategy of satisfying every consumer’s need. The recently announced target, up 12.8 percent from last year, will include a 40 percent contribution from WinMart retail outlets, a key part of its "point of life" strategy. To achieve its goals, Masan plans to transform its current WinMart and WinMart+ outlets into "mini malls," streamlining a complete retail and service experience to consumers.

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Daily Real Estate News Highlights Top 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 Being stunned with the increase in apartment prices in Thu Duc City, constantly setting new peaks www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam shared, real estate prices in Thu Duc City was continuously setting new peaks in the last 2 months. Currently, the average price of apartments was about VND 60-75 mil/m2. “Many people with real housing needs flock to look for secondary projects with prices below VND 45 mil/m2 when they cannot find a source of this price range to settle down in Thu Duc City. Meanwhile, investors are also competing for the remaining apartments in the market with prices below VND 50 mil/m2 with the belief of large profits when assessing the potential for price growth of this area," Mr. David Jackson emphasized.

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

Vietnam’s economic recovery is likely to be stronger in Q2 www.vietnaminsidre.vn

Vietnam’s economic recovery is likely to be stronger at the end of the second quarter of 2022 when the domestic demand and the tourism sector recover, to Standard Chartered Bank said.

In its latest Vietnam-focused macro-economic research report, Standard Chartered forecasts Vietnam’s recovery will accelerate markedly in 2022, with GDP growing by 6.7 percent in the whole year when economic indicators are being recovered on a large scale.

Vietnam’s economic recovery is likely to be stronger in Q2

IZ advances to push growth of economy www.vietnaminsider.vn Vietnam targets nearly doubling the area for its industrial zones by 2030, offering overseas investors the necessary land as well as attractive policy incentives to entice them to establish production bases in the country. With German company Fuchs leasing land of two hectares in Phu My 3 Industrial Zone (PM3 IZ) in the southern province of Ba Ria-Vung Tau to build its newest factory, Vietnam further aims to become a more popular destination for industrial investors. Fuchs is the second European company to build a factory at PM3 IZ. “Partnering with a reputable enterprise like Fuchs promises to contribute to strengthening the trust of other western companies,” said Kazama Toshio, deputy general director of PM3 IZ, last month.

“Competitive prices, complete infrastructure, and modern seaports also help places like PM3 IZ in attracting many multinational tenants.”

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Daily Real Estate News Highlights Top 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 4 smart home trends take the throne www.kinhtethitruong.vn Mr. David Jackson, CEO of Colliers Vietnam, said that the application of smart solutions for housing was increasingly being accelerated in the world and right in Vietnam. According to Colliers Vietnam expert, after the severe outbreaks of the Covid-19 pandemic, the big trend in homebuyers' psychology was to pay attention to health-related factors. Currently, smart devices equipped in the home were capable of detecting some unusual changes in our health. Smart beds would record many sleep-related parameters, contributing to the detection and treatment of insomnia.

Mr. David Jackson CEO of Colliers Vietnam

European business confidence highest since fourth Covid wave in Vietnam www.vnexpress.net

The Business Climate Index (BCI) of European companies in Vietnam in Q1 reached its highest level, at 73 points, since the fourth coronavirus wave hit the country last April. The index increased by 12 points from the previous quarter and 58 points over the historic low of 15 in September last year as Vietnam imposed prolonged social distancing measures during the fourth coronavirus wave, according to a new report released this week by the European Chamber of Commerce (EuroCham).

Laborers work at an assembly line to produce ventilators at Vsmart factory of conglomerate Vingroup outside Hanoi, August 3, 2020

Dong Nai, BR-VT want to build ring road simultaneously www.thesaigontimes.vn Dong Nai Province and neighboring Ba Ria-Vung Tau Province have committed to building a ring road simultaneously to improve connectivity, Tuoi Tre newspaper reports. Chairman Cao Tien Dung of Dong Nai and Chairman Nguyen Van Tho of Ba Ria-Vung Tau yesterday, April 17, met to thrash out measures for implementing the 200-km Ring Road 4 project that links these two provinces with three other neighboring provinces: HCMC, Binh Duong and Long An.

Putting an end to land fever www.thesaigontimes.vn Some cities and provinces have suspended the division of agricultural land into smaller lots to prevent speculation which is blamed for the land fever. Despite skepticism on the part of authorities, property investors are still inclined to divide land into small lots for sale. Some solutions suggested to curb the land fever include tightening regulations on the land split, sanctions imposed on violators of these regulations, high taxes levied on transactions of real estate products conducted within one-two years after another transaction, etc. colliers.com/en-vn

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Daily Real Estate News Highlights Top 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 5 Southern highways are about to be implemented: Investors take advantage to pour capital, leading to many areas of land "increasing heat" www.thitruongvietnam.vn Mr. David Jackson, CEO of Colliers Vietnam affirmed that infrastructure development has always been an important growth driver for the real estate market. "Investors need to check information about infrastructure projects from official sources.

Next, investors also need to check information about real estate to buy such as project legality, investor, approved planning, legal terms in sales contracts or security deposits. It is also important to check information and carefully survey the location of the property" said Mr. David Jackson.

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

Vietnam’s economic growth driven by good recovery of sectors: WB www.nhandanonline.vn Vietnam’s economic growth in the first quarter of 2022 was consolidated thanks to the solid performance of export-oriented manufacturing and recovering service sector, according to the Vietnam Macro Monitoring report recently released by World Bank.

The country’s GDP grew by 5.0 percent year-on-year in Q1-2022, comparable to the growth rate in Q4-2021, yet still two percentage points below pre-pandemic rates.

Vietnam’s economic growth driven by good recovery of sectors: WB

HCM City should allow public access to detailed land data: conference www.bizhub.vn HCM City should consider offering the public greater access to detailed land information such as long-term urban plans, which are not easily available now, experts have said. At a conference between the administration and information and communication businesses, Lam Nguyen Hai Long, chairman of the HCM City Computer Association, said the city should allow non-state entities to utilise data just like State authorities.

Real estate market heads corporate bond issuance as enterprises lean on loans www.vir.com.vn The bond market continues to be seen as a positive capital mobilisation channel for businesses and the economy, with some industries faring better than others in this regard. “Real estate and construction have been the groups with the largest issuance proportion on the stock market in the first two months of this year,” said Le Hong Tam, deputy director of PSI’s Consulting Division.

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Daily Real Estate News Highlights Top 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: The supply of shophouse apartments is scarce www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam, estimated that in 2022, the number of new apartments in Ho Chi Minh City market would be about 20,000 units. Although there were signs of recovery, the shortage of apartment supply continued. In particular, the number of shophouse apartments usually only accounted for a very small percentage, usually no more than 5% of the total number of apartments in the project. “Because there are so many "ideal" elements of a real estate, the shophouse's high potential for price increase is very understandable. This has also been proven by the market reality when the value of shophouse apartments may increase 15-30% per year. Because it is both "precious" and "rare", the shophouse's liquidity is also very good, it is a "golden egg laying hen" sought by many real estate investors”, Colliers Vietnam expert emphasized.

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

Industry fears bumpy recovery path www.vnexpress.vn Industries are recovering after two years of Covid-19, but problems such as labor shortage and increased raw material and transportation costs are threatening to delay it. Japanese sewing machine manufacturer Juki Vietnam resumed full operations by the end of last month after almost three quarters of operating below capacity due to Covid-19.

Workers of Juki Vietnam are seen at the company's factory in Ho Chi Minh City.

Tax cuts help control inflation: Finance Ministry www.thesaigontimes.vn Tax and fee reductions have contributed to bringing inflation under control in Vietnam, according to Deputy Minister of Finance Vo Thanh Hung. Speaking at a press briefing on April 18, Deputy Minister Hung said the conflict between Russia and Ukraine had inflated the prices of goods, mainly food, foodstuff, fuels and materials, putting pressure on inflation.

Over VND50 trillion of public investment yet to be allocate www.thesaigontimes.vn As of the end of last quarter, more than VND50 trillion of public investment has yet to be allocated and 29 units have yet to disburse their allocated capital for public investment, according to the Ministry of Finance.

In a report sent to the prime minister, the ministry stated that more than VND61.5 trillion was disbursed in the first quarter of the year, representing 11% of the full-year target. colliers.com/en-vn

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Daily Real Estate News Highlights Top 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

Apartment transactions in Hanoi and Ho Chi Minh City simultaneously slowed down, prices continued to increase www.vietnammoi.vn Talking about the prospects in the three markets of Hanoi, Da Nang and Ho Chi Minh City, according to Colliers experts, in the next two years, new supply will recover, leading to an improved sales volume. Mr. Tin Nguyen, Head of Market Research, Colliers Vietnam said: “We expect to have more apartment supply in the next two years, but the selling price will be higher due to land price, compensation price, high construction costs, etc. Supply from the affordable segment will remain limited.”

Apartment transactions in Hanoi and Ho Chi Minh City simultaneously slowed down, prices continued to increase

Thai securities firm advocates increasing investment in Vietnam www.vietnamplus.vn The Asia Plus Securities (ASPS) of Thailand has recommended increasing investment in Vietnam, citing the country’s high growth prospects based on its ample local workforce, low minimum wage and steadily rising per capita income, according to the Bangkok Post.

An article on the newspaper wrote that the brokerage believed the Russia-Ukraine conflict and sanctions against Russian crude supplies have impacted both the bond market and stock market but the impact has been limited.

Manufacturing electronic components at Doosung Tech Vietnam Co., Ltd in Hoa Binh.

RoK provides Vietnam with 6.4 million USD to promote energy efficiency www.nhandanonline.vn The Government of the Republic of Korea (RoK) will provide 6.4 million USD in non-refundable aid to assist Vietnam in saving energy in the industrial sector and implementing its green growth plan. The information was announced at the conference on promoting energy efficiency investment market in the industrial sector and supporting the national green growth action plan of Vietnam which was held in Hanoi on April 20.

Retail market 2022: Waiting for a new supply explosion www.tinnhanhchungkhoan.vn The Hanoi retail market report in the first quarter of 2022 by Colliers shows that the average rent in the central area is from 92 USD/m2/month, the average vacancy rate is about 13%. Meanwhile, in the non-CBD area, the rent is about 21 USD/m2/month with an average vacancy rate of about 27%. According to Colliers, because retailers tend to be cautious when making space leasing transactions, rents still decreased compared to the previous quarter. colliers.com/en-vn

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Daily Real Estate News Highlights Top 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 Investors tend to look for industrial land in satellite provinces www.vietnambiz.vn According to a recent Colliers Vietnam report, the industrial real estate market in Ho Chi Minh City did not see any new supply in the first quarter of the year but remained stable with an occupancy rate of 90% and the average rental rate at USD 190/m2/term.

Due to limited land fund and expensive price, most new investors now tend to look for industrial land in satellite areas such as Binh Duong, Dong Nai and Long An. With an occupancy rate of 90% and an average rental rate of USD 142/m2/term, Hanoi is leading the industrial market in the North. However, Hanoi is also facing a shortage of land fund, causing new investors to move to neighboring provinces such as Bac Ninh, Hai Duong, Hung Yen and Hai Phong.

A corner of Thuan Dao Industrial Park in Long An.

Ownership certification proposed for condotels, officetels www.thesaigontimes.vn The Ministry of Natural Resources and Environment has proposed granting ownership certificates for condotels, officetels and other lodging properties built on commercial land. The proposal was included in a draft Government decree amending and supplementing some decrees guiding the execution of the Land Law which is being consulted with ministries, agencies and enterprises, the local media reported.

A view of Nha Trang beach. Nha Trang City on the central coast is home to a host of tourism properties

Vietnam’s economic growth in 2022 projected to be stronger than previously expected www.nhandanonline.vn Foreign investment funds have made optimistic projections about Vietnam’s economic recovery in 2022 and the steady growth of foreign investment inflow. Many expect to see Vietnam’s economy expand by 7.5% this year thanks to the strong recovery of domestic consumption, construction and inbound tourism, as well as the government’s 15 billion USD fiscal stimulus package.

More urban railways proposed in HCMC www.thesaigontimes.vn The HCMC Department of Transport has proposed developing more urban railways connecting to seaports and airports to meet the city’s development demand. The proposal, which has been sent to the municipal Department of Zoning and Architecture, is aimed at meeting huge commuter demand and boosting HCMC’s connectivity with the neighboring provinces of Dong Nai, Binh Duong and Long An, the local media reported. colliers.com/en-vn

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Daily Real Estate News Highlights Top 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 is the price of office space for rent in Ho Chi Minh City increased again? www.danviet.vn The office rental market in Ho Chi Minh City is gradually recovering after the epidemic. According to forecasts of market research units, office rents will increase by 15-20% by the end of 2023.

Why is the price of office space for rent in Ho Chi Minh City increased again?

IMF cautions Vietnam over rising inflation pressure www.vnexpress.vn Vietnam's economy is recovering, but the International Monetary Fund (IMF) warns that inflation and financial risks may also be increasing. In consultations held with top Vietnam officials recently, Era Dabla-Norris, Mission Chief to Vietnam and Division Chief in the IMF's Asia and Pacific Department, said the conflict in Ukraine was likely to have a moderate impact on the pace of recovery and inflation in Vietnam. Despite the rise in the prices of goods and raw materials, IMF believes that inflation is still under control, which also demonstrates that economic activity is still moderate.

Containers undergo sorting at Cai Lai Port in Ho Chi Minh City, December 2021.

Long An gets approval for 200-million-USD infrastructure development in industrial park www.nhandanonline.vn Deputy Prime Minister Le Van Thanh has signed a decision approving the building of infrastructure at Prodezi Industrial Park in the Mekong Delta province of Long An. The industrial park will cover 400 hectares in Luong Hoa and Tan Hoa communes in Ben Luc district and need more than 4.6 trillion VND (nearly 200 million USD) for infrastructure development. Long An Prodezi JSC is the investor of the project. The lifespan of the project will be 50 years, starting April 23, while the construction must be completed within 60 months after the land is handed over.

Work on social housing project begins in Ha Nam www.bizhub.vn The Housing and Urban Development Corporation has begun construction of a social housing project in the northern province of Ha Nam. Spanning 4.9ha in Duy Tien Town, the project comprises four blocks with 564 apartments and some low-rise houses.

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Daily Real Estate News Highlights Top 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 apartment found "bright door" www.cafef.vn According to a new report published by Colliers Vietnam, from Q3/2021 to Q1/2022, Ho Chi Minh City did not have any new supply of serviced apartments. The average offer price in Grade A was USD 31/m2 per month, while in Grade B it was USD 23/m2. The occupancy rates of Grade A and Grade B segments were 60% and 50% respectively. Forecasting the prospect of Vietnam's serviced apartment market, Colliers said that the strong flow of foreign direct investment capital in the past year would lead to an increase in the foreign expert community to Vietnam. This was an opportunity to help the serviced apartment market recover and grow dramatically, especially in the context that international flight routes have been almost completely restored.

Serviced apartment found "bright door"

Viet Nam strives for export growth of 5-6 per cent in 2021-30 www.bizhub.vn Viet Nam has set a goal of achieving an average export growth rate of 6-7 per cent in the 2021-30 period, following the Government's strategy on import and export released on Wednesday. Specifically, the country sets an annual average export growth goal of 8-9 per cent between 2021 and 2025 and 5-6 per cent in the subsequent five years.

Bananas being packed for export at MTV Kizuna Co in Ba Ria-Vung Tau Province.

Speculators win some, lose some in property bubble www.vnexpress.vn As prices rise and fall rapidly amid rumors of future development in a "fever" spreading across Vietnam, some people are becoming rich overnight and others are falling into debt. Hanoi real estate broker Hoang Hiep has been visiting the suburban district of Soc Son almost every day for the last three months as customers have been increasingly asking about property there.

Factories raise wages amid increasing cost of living www.vnexpress.vn Factories in HCMC and neighboring Binh Duong Province have raised workers’ wages to help them cope with the rising cost of living. It has come even when a proposal to raise minimum wages has yet to be approved by the government. More than 1,200 employees of construction materials manufacturer Dai Dung Company at the An Ha Industrial Park in HCMC's Binh Chanh District will receive a salary increase of 5-10 percent from May 1.

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Daily Real Estate News Highlights Top 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 Retail space rental rate in HCMC increased again www.zingnews.vn Overall assessment of the retail market, Colliers Vietnam said that the market in the first quarter recorded many great developments.

Domestic retail chains were expanding strongly. As for the space rental market, prime locations on major roads in the central area were always sought after by brands, and they were willing to pay reasonable investment costs to own, in order to anticipate post-pandemic growth shopping needs.

Retail space rental rate in HCMC increased again

VN to study property tax in comprehensive tax reform www.bizhub.vn Viet Nam will study the imposition of a tax on homeowners and increase taxes on land to prevent speculation and increase the land-use efficiency, as part of a comprehensive tax reform strategy for A tax on property assets will be put into 2030 which was approved on April 23. This tax was also mentioned in consideration as the Government aims the Finance Strategy to 2030, approved in March. The proposal about to prevent speculation and increase land use efficiency. the imposition of an asset tax on second homes emerged recently over worries that real estate speculation is causing the market to overheat. In response to this, the Ministry of Finance denied rumours that it was developing a draft law on property assets, as experts said that it was not the right time as it might hurt the property market and the COVID-hit economy.

Ministry of Transport announces 10 new ports www.vietnamplus.vn Ten new ports have been added to the list of Vietnamese seaports, bringing the total number nationwide to 296. The Ministry of Transport has just issued Decision No 552/QD-BGTVT announcing the list of ports belonging to Vietnamese seaports. The newly-added ports are Nosco port in Quang Ninh seaport; Long Son general port belongs to Nghi Son seaport; Hai Ha – Quang Tri petroleum port; Pacific Petro international petroleum port in Tien Giang province; Giao Long port in Ben Tre province; Duyen Hai 2 thermal power plant port in Tra Vinh province.

BB Group and Quantum to invest $5.5 billion in Quang Tri www.vir.com.vn BB Group, Quantum Group, and Quang Tri People’s Committee signed a cooperation agreement on April 25 to develop a natural gas and port complex in the Southeast Quang Tri Economic Zone. According to the agreement, BB Group and Quantum will implement surveys to develop the Hai Lang-Quang Tri gas plant, covering an area of 140 hectares and requiring a total investment capital of over $5 billion. colliers.com/en-vn

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Daily Real Estate News Highlights Top 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 High-end office rents skyrocketed www.vnexpress.vn In Q1/2022, high-end (grade A) office space recorded an increase in rents of 3.8-5.3%, recovering positively after a period of decline due to Covid-19. Report of Colliers Vietnam shows that the average rent of Grade A office buildings in the first three months of this year increased by 3.8%. The high-end office segment in Ho Chi Minh City had many improvements in the first quarter of the year and especially attracted customers from the technology industry.

High-end office rental market in the center of District 1, Ho Chi Minh City

Trung Luong-My Thuan Highway inaugurated www.vietnamplus.vn The Trung Luong-My Thuan Highway, an important route in the Mekong Delta, was inaugurated on April 27. The 51km long four-lane highway is built at a total cost of over 12.6 trillion VND (550 million USD at current exchange rate). Its construction was first started in 2009 but was then delayed for almost 10 years, with just 10 percent of the workload done by 2018. The project was then transferred to the Tien Giang People’s Committee and the Deo Ca group in March 2019.

An overview of Trung Luong-My Thuan Highway

FDI attraction continues to remain bullish www.vir.com.vn Additionally-registered and purchasing shares of FDI capital kept rising at 92.5 and 74.5 per cent on-year, respectively, while the total foreign investment (FDI) inflows in the first four months decreased by 11.7 per cent. According to the Ministry of Planning and Investment's Foreign Investment Agency, Vietnam counted FDI inflows of about $10.8 billion in the first four months, equivalent to a rise of 88.3 per cent on-year. Of this, $3.7 billion were poured into 454 newly-licensed projects, an increase of 0.7 per cent in the number of projects, but a sharp decrease of 56.3 per cent in value.

HCM City’s economy stages vigorous recovery www.vietnamnews.vn HCM City’s economy is rebounding strongly, raising confidence among people and businesses, heard a recent meeting on the local socio-economic situation. Speaking at the meeting on Tuesday, Director of the municipal Department of Planning and Investment Lê Thị Huỳnh Mai said the city’s Index of Industrial Production (IIP) in April expanded some 2 per cent from the previous month and 9.7 per cent year-on-year.

Its total retail sales of goods and services also jumped 3.2 per cent month-on-month and 6.2 per cent year-on-year. Lodging and catering services increased by more than 12 per cent and travel services grew over 18 per cent compared with March.

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Colliers Vietnam Ho Chi Minh Office

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