Monthly Real Estate News | December 2019 by Vietnam Realty

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VIETNAM MONTHLY REAL ESTATE NEWS - December 2019 -

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Daily Real Estate News Highlights Vietnam - 02 December 2019

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

80pct of condotel buyers in Danang come from Northern region

Cafeland In a new report released by Colliers International Vietnam, demand power on condotels in Danang mainly comes from Northern investors, especially Hanoi, who make up of 80pct of total number of condotel buyers in this 80pct of condotel buyers in Danang coastal city. However, investors are now more cautious with condotel come from Northern region projects that are committed to generate good profits by developers.

WeWork unveils its two upcoming locations in Ho Chi Minh City

Vietnam Investment Review WeWork has announced its upcoming second and third locations in Ho Chi Minh City, at Sonatus, opening in November 2019 and Lim Tower 3, opening in February 2020. WeWork has established a strong presence in Strengthening its presence in the Southeast Asia over the past two years, since opening its first location in city centre in District 1, WeWork will Singapore in 2017. Ho Chi Minh City has rapidly become a major business establish its second location at Sonatus and its third at Lim Tower 3 hub in Southeast Asia, creating strong demand for WeWork’s collaborative spaces.

Vietnam’s start-up landscape attractive to Korean investors

Nhan Dan According to the Korea Trade-Investment Promotion Agency, Vietnam, with a population of over 96 million, is an attractive market for Korean investors. As of November 2018, the RoK was the largest foreign investor in Vietnam. Economists said the RoK will further boost investment in Vietnam in coming years, including in apparel, leather and footwear, which will bring many opportunities to Vietnamese start-ups. The Vietnam Tech Investment Report by ESP Capital and Cento Ventures showed that Vietnam’s start-up ecological system has rising to the top three best among six surveyed ASEAN member states, behind only Indonesia and Singapore.

Lawmakers approve $4.8 billion first phase of Long Thanh airport

VnExpress Over 90 percent of lawmakers voted in approval of a government proposal to build the first phase of the Long Thanh International Airport in the southern province of Dong Nai, which includes one runway and one terminal with a capacity of 25 million passengers and 1.2 million tonnes of cargo a year. The approval means the government can pick an investor for the project. It has expressed its preference for using the state-owned Airports Corporation of Vietnam, which manages 21 airports, for this position.

Hyatt Hotels Corporation to open dual-brand property in Vietnam come 2023

Vietnam Insider Hyatt Hotels Corporation will introduce its first dual-branded Hyatt Place and Hyatt House project in South-east Asia, with the 300-key Hyatt Place Saigon, District 7 and 250-key Hyatt House Saigon, District 7 slated to open in Ho Chi Minh City come 2023. Hyatt House Saigon, District 7, which will predominantly cater to guests looking for longer-term accommodations, will consist of 250 rooms divided into studios and one-bedroom suites, a bar, a lobby lounge, a meeting room, an outdoor pool and fitness centre.

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Daily Real Estate News Highlights Vietnam - 03 December 2019

Top 5 - Daily Updated Real Estate News Colliers Internationalâ&#x20AC;&#x2122;s Residential Highlights is daily news summary which features the latest updates on the Residence, Serviced Apartment, Office, Retail, and Industry Real Estate market.

Condotel developer defaults on payment of returns to buyers

VnExpress The developer of condotel complex Cocobay Da Nang will stop paying 1,700 buyers the annual returns it had promised of 12 percent annuity from next year, due to financial difficulties. The company is offering some alternatives to owners. They could either pay 15 percent of their investment to turn their condotel into an apartment and live there or lease it out and sign a new contract with Empire to accept a return of 80 percent of profits from rentals.

Buildings under construction in Cocobay Da Nang

Noi Bai airport to be expanded for 100 million passengers per year

The Voice Of Vietnam The Hanoi-based Noi Bai International Airport will be expanded to serve 100 million passengers per year, becoming more suitable to the development space of Hanoi and minimising impacts on related planning schemes. The expanded airport will be consistent with the development space of Hanoi, protecting environment, national defence and security. The expansion of the Noi Bai Airport is needed as the volume of passengers has increased rapidly in recent years.

Noi Bai International Airport

What will the future of real estate in the West of Ho Chi Minh City be like? CafeF

In the context that other areas of Ho Chi Minh City have increasingly narrowed land, real estate products are becoming increasingly valuable as this area has a lot of potential for development. Accordingly, the Western Saigon area is one of the key areas in the 5-year development program from 2015 to 2020 of the city. In addition to the Metro, Ho Chi Minh City is also preparing to start the ring road 3 to help West Saigon traffic connect with urban districts and Binh Duong, Dong Nai and Long An more easily. At the same time, the city has also expanded the intersections to help traffic more open. The bridge spanning Luong Beo Canal (from 8 to 16m) and the overpass on Tran Van Giau Street have also been widened. In addition, more and more utilities such as supermarkets and cinemas appear to serve the needs of residents of Western Saigon. Vietnam Top 10 Most Profitable Companies in 2019: Who is who? Bizhub Vietnam Report has released its Vietnam Profit 500 with a number of categories like Top 10 Most Profitable Companies, Top 15 Most Profitable Private Companies and Top 10 Most Profitable Companies in Banking, and Finance and Securities. This yearâ&#x20AC;&#x2122;s Vietnam Profit 50 honours major groups and corporations, including Petrolimex, Samsung, Viettel, Vingroup, Vinamilk, and Vietjet. The Top 10 Most Profitable Banks includes Vietcombank, Vietinbank, Techcombank, VPBank, HDBank, MB, and ACB. According to the report, the inclusion and ranking of the companies in this list are objectively and independently based on the weighted score of several main indicators reflecting their profitability such as ROA, ROE, ROR, pre-tax profit and revenue. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 04 December 2019

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

Property developers disregard green space regulations

Vietnam Net Although real-estate development projects are required by law to incorporate parks and gardens in their area zoning, many investors in HCM City are blatantly disregarding this. The majority of urban projects in HCMC have failed to delivery this. Currently, there are less than 100 green Urban green spaces are a must for buildings that meet with international standards across all of Vietnam, real-estate projects according statistics from Vietnam Green Building Council.

Proptech – An inevitable trend in Vietnam’s real estate market?

Vietnam Insider Technological application in property product and service business is becoming an indispensable trend in Vietnam’s real estate market. The amalgamation of real estate and technology (Proptech) is increasingly flourishing in Vietnam in line with the growth of the country’s real estate How is Proptech changing the real estate market landscape? market in recent years and penetrating all types of property segment, from housing, office, hospitality or building management services…in Vietnam.

Five opportunities in Vietnam’s real estate market Vietnam Investment Review

The VNREA forecast numerous difficulties for the market and a decreasing trend. According to the Vietnam Association of Real Estate Brokers, in the third quarter of this year, the market is still on a downtrend, especially in Hanoi and Ho Chi Minh City. Based on this situation, the VNREA pointed out five opportunities in the market. First, the market is still stable, thanks to positive macroeconomic signals. Second, the demand for housing is still large. Third, there remains empty room for tourism real estate, resorts, and industrial real estate, which are considered a light spot of the market in the medium and long term. Overseas Vietnamese businesses mobilize to develop HCMC

Vietnam Economic Times The overseas Vietnamese business community is willing to help domestic enterprises find trade partners, expand markets and grasp investment opportunities in Vietnam. It also aims to bring Vietnamese products and services to the world market. In the first nine months of this year, remittance flows into Ho Chi Minh City via commercial banks and financial institutions were estimated at around US$3.8 billion, a year-on-year increase of seven percent.

Vietnam a new star in Southeast Asia region: Horasis forum

Vietnam News Viet Nam has emerged as a new economic star in the Southeast Asia region, with its southern province of Binh Duong poised to become a new centre for global dialogue in the near future, the chairman and founder of Horasis said yesterday at one of Asia’s largest economic forums. More than 400 top leaders from across Asia and 500 government officials and top executives from businesses in Viet Nam are participating in the 2019 Horasis Asia Meeting that opens in Binh Duong Province.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 05 December 2019

Ministry of Construction releases first quarterly real estate market report

Vietnam Investment Review The Ministry of Construction (MoC) on Thursday released its first quarterly report on the domestic real estate market. Nguyen Manh Khoi, deputy director of the ministry’s Housing and Real Estate Market Development An apartment block in Ha Noi. The Department, said the MoC wanted to disclose information to investors, MoC has released its first quarterly customers and managers, but the process of collecting and collating the property market report. information from provinces and cities had been slow.

Vietnam rises in global ranking

Vietnam Economic News The World Bank (WB) Group’s latest Doing Business 2020 study, issued last month, gave Vietnam 69.8 points, compared with 68.6 the previous year. While Vietnam secured the 70th spot among 190 economies in the ease of doing business ranking, dropping one spot from 69th place, it Vietnam has made significant proimproved its ranking in five of the 12 criteria examined. The five areas gress in improving its business climate were: starting a business, arranging for construction permits, getting electricity connections, getting credit and paying taxes.

Vietnam named second in ASEAN in fintech funding in 2019

Hanoi Times Vietnam came second in terms of funding attraction in ASEAN this year, accounting for 36% of the total, significantly up from just 0.4% in 2018, according to a report on Fintech. Singapore remains the top destination by attracting the lion’s share of global funding among ASEAN countries in ASEAN conducted by United Overseas Bank (UOB), PwC and the Singapore Fintech Association (SFA). In 2019, Vietnam saw a sharp increase in funding, attributable to two large deals namely US$300 million into VNPay.

Real estate in the Central Highlands increased attractiveness

Doi Song Tieu Dung With a positive economic growth, favorable infrastructure, and an improvement in people’s living standards, the Central Highlands has become an attractive land for real estate investors. In the wave of investment shifting into the Central Highlands, Gia Lai is considered as one of the potential destinations thanks to the region’s largest natural land fund and stable socio-economic development. Facing the increasing demand for accommodation and services, Gia Lai province has decided to focus on attracting resources for synchronous investment in urban infrastructure systems and development planning of residential and urban areas.

Hanoi proposes ODA funding of $1.32 bln for metro section

VnExpress Hanoi wants to borrow VND30.57 trillion ($1.32 billion) in official development assistance (ODA) to construct a downtown metro section. This means ODA would account for 85.6 percent of the total investment for the 11.5-kilometer section of Hanoi’s Metro Line 2, the municipal People’s Committee said in a proposal sent to the city People’s Council. Hanoi plans to build eight urban railway lines with a combined distance of 305 km, including three monorail segments, as per its development plan for 2030 with vision towards 2050.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 06 December 2019

Vinpearl Luxury Landmark 81 named World’s Leading Riverfront Hotel

Vietnam Investment Review On November 28, Vinpearl Luxury Landmark 81, a luxury hotel in the tallest building in Southeast Asia, was conferred the World’s Leading Riverfront Hotel Award in the World Travel Awards (WTA) Grand Final Gala Ceremony 2019. The event took place at the landmark Royal Opera House, Muscat, Oman, with the attendance of more than 300 leading global travel and hospitality businesses.

Vinpearl Luxury Landmark 81 named World’s Leading Riverfront Hotel

Vietnam Insider According to a report bay according Ministry of Planning and Investment, total foreign direct investment (FDI) disbursement in the eleven months of 2019 witnessed an on-year increase of 7.2 per cent, reaching $17.69 billion. Among the 117 nations and territories investing in Vietnam, Hong Kong (China) ranked first with $6.69 billion.

Hong Kong (China) ranked first among the 117 nations and territories investing in Vietnam

Condotel property market in urgent need of new regulations, standards

Vietnam News A legal framework covering condotel properties is urgently needed to protect the rights of both developers and buyers and to ensure sustainable development. The boom in condotel development began several years ago, yet the property concept is not mentioned in legal documents in Vietnam, causing potential conflict. More importantly, condotels are not entitled to a land-use right certificate unless they are considered a condominium under the current law, according to experts. In April, Prime Minister Nguyen Xuan Phuc ordered the Ministry of Construction to issue regulations on management and operation of condotels and officetels before the third quarter of this year.

VN-Index inches upwards in cautious session

VnExpress The VN-Index rose 0.36 points, or 0.04 percent, to close at 970.75 points Friday session, which registered the lowest liquidity of this month. 170 stocks gained and 139 stocks lost on the Ho Chi Minh City Exchange (HoSE), on which the VN-Index is based. The total value of order-matched transactions on Friday was just VND2.77 trillion ($119.35 million), far below the VND3.5 trillion ($150.8 million) average for November, and the lowest liquidity session since September 24.

Vietnam invests over 458 million USD abroad in 11 months

The Voice Of Vietnam Vietnamese businesses invested 458.8 million USD in 31 foreign markets in the first 11 months of 2019, reported the Foreign Investment Agency under the Ministry of Planning and Investment. In the reviewed period, 353.8 million USD was invested in 148 new projects, while 105 million USD was added to 29 underway ones. Australia drew the highest amount of capital from Vietnam at 141.3 million USD, accounting for 30.8 percent of the total, followed by the US, Spain and Cambodia.

colliers.com/vietnam

VSIP II-A DEVELOPMENT LAND VSIP II-A IP, Binh Duong Province

Daily Real Estate News Highlights Vietnam - 09 December 2019

Quang Binh Province develops southward with eye on investment

Vietnam Investment Review Improved infrastructure, incentive policies and natural advantages have made the central province of Quang Binh a new investment magnet. Besides improving infrastructure, province authorities also often meet Quang Binh Province is rapidly imwith investors to help resolve their difficulties while doing business in. proving its infrastructure to attract The province attracted over US$7.05 billion worth of investments last investors. year.

Luxstay signs investment cooperation agreement

Vietnam Economic Times Home-sharing platform Luxstay signed an investment cooperation agreement with the Intracom Group, CenGroup, and M-TP Entertainment on November 29 in Ho Chi Minh City, marking a new milestone in long-term investment to boost Vietnam’s tourism market. Launched in 2017, Luxstay is focusing on developing its customer base and integrating with partners in countries and territories whose citizens visit Vietnam in large numbers, such as South Korea and Japan.

Home-sharing platform signs deal with Intracom Group, CenGroup and M-TP Entertainment.

Vietnam’s biggest retail company will be formed by Vingroup, Masan

Vietnam Insider Vingroup said in a statement that the two companies were finalizing legal procedures to sign an official agreement for the merger between its retail and agriculture units and Masan Consumer, a subsidiary of Masan Group. “The merger will enable us to expand our consumer base and ensure a fair retail playing ground for Vietnamese manufacturers,” said Truong Cong Thang, chairman of Masan Consumer Holding, which produces Vietnamese must-buy consumer goods.

Viet Nam remains promising destination for investors

Bizhub A recent survey of the Japan Bank for International Cooperation (JBIC) has shown that 36.4 per cent of Japanese businesses operating overseas viewed Viet Nam as a promising investment destination in the middle and long terms, up 2.5 per cent from 2018. Viet Nam has risen to third in the JBIC rankings with 36.4 per cent of the vote, and also made the most impressive progress among the top 10 markets for Japanese businesses. He admitted that the biggest problem was that there was no legal corridor for this business model, adding that neither the Law on Tourism, Land Law nor Housing Law have identified this type of business

Vietnam’s economy stays positive amid global growth slowdown

Vietnam Plus Vietnam’s economy remains positive despite the slowdown in global economic growth, especially in Asia, over the last 11 months, Prime Minister Nguyen Xuan Phuc said while chairing the Government’s regular meeting for November on December 2. Macroeconomic stability has been maintained, Vietnam attracted 31.8 billion USD in foreign direct investment (FDI) in the period, up 3 percent year-on-year, and FDI disbursement reached 17.6 billion USD. Exports saw good growth, with a 9.2 billion USD trade surplus. Revenues from retail of goods and services also picked up 11.8 percent. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 10 December 2019

Da Nang to keep businesses at bay from urban planning

VnExpress Da Nang City will no longer allow businesses to intervene in its urban planning process, its Communist Party chief has asserted. Starting next year, the city will formulate plans on its own and call for investment later, the city’s party leader Truong Quang Nghia said at a Tuesday meeting The downtown of Da Nang City, Viwith almost 1,000 city residents. etnam’s central hub, August 2019.

Realty credit tightening to have no impact on low-income homebuyers

Saigon Times The State Bank of Vietnam’s recent move to tighten loans in the real estate sector is expected to have no impact on low-income earners who wish to purchase apartments worth less than VND1.5 billion (US$64,900). According to the circular, the risk coefficient of 50% applies to a personal loan worth less than VND1.5 billion for customers who wish to buy houses in the budget housing segment, under the Government’s support programs and projects.

A neighborhood with affordable apartments in Hanoi.

Ben Luc real estate: A “push” from the infrastructure Dan Tri The factor creating the attraction of Ben Luc real estate market in recent time is the synchronous and strongly developed infrastructure system. Not only focused on infrastructure investment, Ben Luc also has the advantage of being one of the districts with a large source of legal land that has been attracting many domestic and foreign investors. According to experts, in Q4/2019, Ben Luc Real Estate will increase due to the appearance of new projects such as The Pearl Riverside and Waterpoint. What do foreign investors worry about when investing in VN infrastructure projects?

Vietnam Net TThere are three problems which may make foreign investors shrink when considering investment in transport infrastructure projects in Vietnam, said Minister of Transport Nguyen Van The when speaking at the National Assembly session to discuss the Investment Law under the PPP mode on November 11. First, they want the government of Vietnam to ensure their revenue and share risks with them. As Vietnam’s development plans change regularly, they fear risks.

Asia Commercial Bank recognized as Vietnam’s Bank of the Year by The Banker

Vietnam Insider First time Asia Commercial Bank (ACB) recognized as Vietnam’s best this year by leading Financial Times publication, The Banker. ACB has undertaken a wide-ranging scheme to overhaul its internal banking processes to prepare for banking in the future. Primarily, the bank overhauled its operational efficiency through automation. To keep better controls on outstanding customer debts, ACB rolled out a debt management system project.

colliers.com/vietnam

INDUSTRIAL & RESIDENCE DEVELOPMENT LAND Phuoc Binh Commune, Long Thanh District, Dong Nai Province

Daily Real Estate News Highlights Vietnam - 11 Nobember 2019

Remittances to HCM City set to top $5 billion

Bizhub Remittances to HCM City from overseas in the first 11 months of 2019 exceed US$4 billion, and are expected to top $5 billion for the year, according to the State Bank of Viet Nam (SBV).The city had received $5 billion last year too, or more than 30 per cent of the total remittances sent Overseas remittances are invested in property in HCM City. to Vietnam. According to figures from the World Bank, Vietnam expects to receive $16.7 billion this year, making it the ninth largest beneficiary in the world.

Government okays two new multimillion dollar golf courses

VnExpress Two 18-hole golf course projects worth a total VND1.05 trillion ($45.2 million) have been approved by Deputy Prime Minister Trinh Dinh Dung. The first, Vinpearl Quang Nam, will be built by Vinpearl JSC, the resort arm of Vingroup, Vietnam’s largest private conglomerate, in central Quang Nam province over an area of 70.35 hectares.

A person playing at a golf course in northern Vietnam.

New-generation FTAs create opportunities, challenges for Vietnam’s economy

The Voice Of Vietnam Vietnam will be able to maintain its high GDP growth if it can negotiate effective trade agreements, especially new-generation free trade agreements. Under its 5-year socio-economic development plan until 2020, Vietnam has maintained an annual GDP growth rate of more than 6.8%. Last year’s growth was more than 7% and this year is expected to exceed 7%. Vietnam has achieved the GDP growth target set for the entire period. Inflation has been under control and the public debt ratio has been decreasing. But growth has been heavily dependent on capital.

Affordable homes still a dream for many Vietnamese workers

Vietnam News Only 28 per cent of industrial zone workers are provided with stable accommodation, while the rest have to rent houses with poor sanitation and infrastructure. According to a nationwide report, by 2020, some 1.7 million industrial parks workers will have a need for housing. However, the country has been only able to build 100 social housing projects with 41,000 apartments for 330,000 workers. The Government had tasked the Vietnam General Confederation of Labour with implementing Decision No.655/QĐ-TTg by the Prime Minister on building trade union institutions in industrial and export processing zones with a focus on improving living conditions for workers and employees.

Central coastal real estate is an interesting game for investors

Bao Xay Dung In the past 2 years, many middle-class families have the need to own a second home, most of them are looking into resort real estate with affordable prices. However, in famous tourism cities like Da Nang, Nha Trang and others, the supply is getting scarce and the price is extremely high. Meanwhile, in some provinces and cities in the Central region, coastal land products meet the needs of prices as well as profitability in the future. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 12 December 2019

A person playing at a golf course in northern Vietnam.

Vietnam News Thanh Thanh Cong Investment JSC is to buy more than 16 million shares of Sai Gon Thuong Tin Real Estate JSC (SCR), equivalent to 4.7 per cent of the company’s outstanding shares. Thanh Thanh Cong said the company is expected to spend VND100 billion (US$4.3 million) for the acquisition. Thanh Thanh Cong Investment to On the stock market, SCR shares price has plunged to the bottom of the buy 16 million shares of Sai Gon last three years since 2016. SCR closed Tuesday morning at VND5,710 Thuong Tin Real Estate per share, down 32 per cent compared to the same period last year.

HCM City to build 8 logistic centres

Tuoi Tre News Ho Thi Thu Hoa, head of the Vietnam Logistics Research and Development Institute (VLI), said researchers are looking for a project to develop the city’s logistics industry have carried out fact-finding tours of eight Cargo being loaded and unloaded at locations where the city’s logistics centres would come up. Cát Lái Port in HCM City’s District 2

JP Morgan is bullish on Vietnamese banks, says sector offers high growth and profitability

CNBC Vietnam’s banking sector is an attractive investment opportunity because it is generating a lot of capital and growing fast, according to a senior banker at J.P. Morgan. It is a rare combination where Vietnamese banks are growing fast and are quite profitable, Harsh Modi, co-head of Asia ex-Japan for financials research at the investment bank, told CNBC. As such, they are able to sustain high growth without needing too much capital for long periods of time.

South-East Asia’s GDP growth to remain at 4.5 percent in 2020

Vietnam Economic News Regional growth has slowed since 2018 and remained sluggish in Q3 2019, with GDP growth across the SEA region rising only 4.5% year-on-year from 4.4% in Q2 2019. The US-China trade conflict has been a key driver for this slowdown in growth, with trade uncertainty remaining a key drag on manufacturing, exports and investment. Export-oriented economies have been the most impacted by the ongoing trade tensions, with Singapore only narrowly avoiding a technical recession in Q3 2019. The exception has been Vietnam, which has benefited from some trade diversion effects caused by the trade war. Nonetheless, momentum in Vietnam is expected to ease to 6.6% in 2020, from 7% in 2019, given weaker Chinese import demand and increased trade protectionism.

Stock market eases after two days of gains

The Saigon Times After two days of rising, the VN-Index of the Ho Chi Minh Stock Exchange declined today, December 10, as a selloff came back on the southern bourse. With 130 stocks gaining and 204 others falling, the main index ended at 960.3 points, down 5.76 points, or 0.6%, against the day earlier. Trade volume tumbled 11% to 242.72 million shares but value increased a slight 2% to more than VND5 trillion. In block deals, nearly 72 million shares changed hands with a total value of over VND1.7 trillion.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 13 December 2019

How long will Vietnam stay in the top 20 in economic growth?

Vietnam Insider Vietnam is now considered a ‘rising star’ after the US-China trade war breakout. While other countries have to struggle with economic growth slowdown or the fluctuations of local currencies, Vietnam still keeps high economic growth rates and macro stability. Bloomberg cited a report of the International Monetary Fund (IMF) as showing that Vietnam is in the top 20 growth engines of the world in 2019. However, IMF also predicts that by 2024, Vietnam will leave the top 20.

How long will Vietnam stay in the top 20 in economic growth?

5-day Novaland Expo leaves prospective buyers excited

Bizhub The hottest event of HCM City’s real-estate market during the year end, the Novaland Expo, has wrapped up after attracting nearly 20,000 visitors over five days. Many Vietnamese and foreign investors and customers were impressed at the expo organised by the giant real-estate developer. Novaland had on display all the key property segments it is developing. Among the most impressive sights for visitors were miniature versions of Sakura Beach and Korea Garden in NovaWorld Ho Tram in Ba Ria-Vung Tau, Aqua City project in Dong Nai, and NovaWorld Phan Thiet.

Prospective buyers find many of the property projects at the expo attractive

HCMC seeks US$1.3 billion from central Gov’t to fund metro construction

The Saigon Times The HCMC authority is seeking approval from the municipal People’s Council to borrow a total of over US$1.3 billion from the on-lending fund of the central Government to construct the city’s second metro line. According to the proposal, the city government intends to borrow US$962.61 million and 300.72 million euros in the form of foreign loans from the central Government. The metro line will link Ben Thanh Market in District 1 with Tham Luong Depot in District 12. The project currently requires total funding of more than VND47.8 trillion (US$2.09 billion), compared with the original VND26 trillion. The revised capital requirement will come from over VND37.4 trillion worth of official development assistance loans and some VND10.4 trillion from Vietnam’s reciprocal capital.

Hanoi commits all possible support for Japanese investors The Voice Of Vietnam

Ho Chi Minh City has been named in the third position among locations that feature the best real Chairman of the Hanoi municipal People’s Committee Nguyen Duc Chung has affirmed that Hanoi always provides all possible support for foreign investors and those from Japan in particular. During a working session in Hanoi on December 10 with President and CEO of Japan’s Sumitomo Corporation Masayuki Hyodo, Chung lauded Sumitomo and the CEO himself for investing in major projects and introducing other firms to invest in the city. He said Hanoi always takes the lead nationwide in terms of foreign direct investment attraction with an estimated value of over 10 billion USD this year, raising the total investment it has attracted so far to 42 billion USD. The host said Sumitomo’s building of a smart city in the north of Hanoi will help ease pressure on the inner city. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 16 December 2019

Radisson Hotel Group signs three new hotels for Vietnam’s coastline

Vietnam Insider In Q2 2020, the Radisson Hotel Danang will bring the Radisson brand to the largest city on Vietnam’s central coast. The hotel is under construction in the city’s central Phuoc My Ward. “Vietnam is one of the world’s most attractive countries, with strong economic growth, a vibrant culture and spectacular scenery,” said Katerina Giannouka, president, Asia Pacific, Slated to open in 2023, the Radisson Blu Resort, Quy Nhon will be in Radisson Hotel Group the Binh Dinh province

Vietnam remains Laos third largest investor with US$4.22 billion to date

Hanoitimes Vietnamese enterprises remain Laos’ third largest investor with 413 projects worth US$4.22 billion to date, according to Prime Minister Nguyen Xuan Phuc. Vietnam agrees to purchase 1,200 megawatts of electricity from Laos in 2020, exceeding the original plan of 1,000 megawatts, and 5,000 megawatts until 2030.

Overview of the meeting

Merger may bring retail renaissance

Vietnam Investment Review Under the deal announced last week, Vingroup’s VinCommerce and VinEco arms will merge into Masan Consumer Holdings, the retail consumer business of Masan Group, to help establish a leading consumer retail group with a network of over 2,600 supermarkets and convenience stores in Vietnam, in which Masan will take control, while Vingroup will be a minor shareholder. The value of the deal has not been disclosed so far, but it may be the largest mergers and acquisitions (M&A) deal of 2019, igniting a competitive retail war.

Bank stocks push market up Bizhub

Shares managed to increase on Wednesday thanks to the growth of banking stocks. The VN-Index on the Ho Chi Minh Stock Exchange (HOSE) increased 0.15 per cent to end Wednesday at 961.78 points. Nearly 216.5 million shares worth almost VND4.4 trillion (US$188 million) were traded on the southern market. The benchmark index had lost 0.60 per cent to end Tuesday at 960.30 points. Market breadth was neutral with 161 shares gaining and 152 declining. The large-cap VN30-Index soared by 0.59 per cent to stand at 878.27 points. Chinese city turns into ghost town after Samsung shifts operation to India, Vietnam The Economic Times

Huizhou city on the north of China’s flourishing Pearl River Delta has turned into a ghost town after Samsung closed its three-decade old factory and shifted operations to India and Vietnam in October, in the first visible fallout of the ongoing trade war between China and the US. The bustling city turned a “ghost town” after Samsung closed its last smartphone factory in China. Samsung relocated production to Vietnam and India in large part as a response to the trade war between the world’s two largest economies, it said, adding that the industry insiders consider that it reflected China’s changing position in the global supply chain. colliers.com/vietnam

BAU BANG DEVELOPMENT LAND Bau Bang IP, Binh Duong Province

Daily Real Estate News Highlights Vietnam - 17 December 2019

Condotel segment faces struggle, study warns

VnExpress Condotel prices have dropped by 8 percent, and the struggle is likely to continue for the segment in 2020, a study says. The average price now is VND35 million ($1,520) per square meter, down from over VND38 million ($1,650) last year. Buyers are starting to lose trust in the segment after A hotel room in Cocobay Da Nang the developer of Cocobay Da Nang defaulted on its commitment to pay a fixed return, it said. So condotels are unlikely to perform well next year.

Vinh Phuc charms investors with pro-business environment

Vietnam Investment Review In the words of Deputy Minister of Planning and Investment Vu Dai Thang, with a strong presence of overseas investors, in the past years Vinh Phuc has succeeded in shaping out an enabling ecosystem for industrial development matching the requirements of investors and businesses Part of Khai Quang Industrial Zone in Vinh Yen city, Vinh Phuc provfrom Europe and the US.

ince Lands of riches Vietnam Economic Times Total overseas investment by Vietnamese enterprises reached $411.9 million in the first ten months of this year, according to a report from the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment (MPI) released in October. Real estate investment totaled $57.9 million, or 14.1 per cent. Offshore investment can bring many opportunities for local real estate developers, but it also comes with many risks. Ms. Minh said that when focusing on emerging markets in the region, the risk from legal systems and market trends can easily lead to failure if investors do not ensure long-term capital sources and have proper planning. Banks confident of meeting 2019 profit targets

Viet Nam News Thanks to high profits in the first three quarters of the year, many banks are close to reaching their yearly targets, while others are positive that the busy fourth quarter will be enough to get them over the finish line. Military Commercial Joint Stock Bank (MBBank) closed the first ten months of 2019 with pre-tax profit of more than VND8 trillion (US$347.82 million), completing 96 per cent of its annual target approved by shareholders in April. The Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) is also confident of completing its profit goal of VND20 trillion.

Zeitgeist metro city to add more green space

Vietnam Economic Times Zeitgeist, the largest metro city in Saigon South and developed by Vietnam GS Industry (VGSI) - a subsidiary of the prestigious GS E&C in South Korea - will add more green space in Nha Be district as per the company’s commitment to incorporating nature as the new standard of living. With a total area of 349 ha, divided into five development stages, and with an expected population of up to 68,000 citizens, Zeitgeist is one of the largest projects in the South Saigon area. Phase 1.1 of the project, called “Zeit River County 1”, will cover 17.9 ha and comprise 359 villas, townhouses, and shophouses. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 18 December 2019

Vietnam adds 800 kilometers of highways to national plan

VnExpress The Transport Ministry has added nearly 800 kilometers of new highways to the national plan, increasing their total length to 7,200 kilometers. The ministry has recently submitted to the Government a revised highway network plan for 2020, with a vision to 2030, which involves focusing on completion of the North-South (transnational) Expressway and building new routes to major seaports and business centers.

Aerial shot of a section on the northern Bac Giang - Lang Son expressway

Ba Ria-Vung Tau selective about investments, prioritises high-tech

Bizhub Ba Ria-Vung Tau Province, one of eight provinces and cities in the Southern Key Economic Zone, has for many years been an ideal destination for foreign investors thanks to its natural advantages and comprehensiveBa Ria-Vung Tau Province has for ly developed infrastructure in addition to attractive incentives. Investors many years been an ideal destination for foreign investors flocking to the province often invest in preferential sectors such as industry, ports and logistics, tourism and high-tech agriculture.

Vietbuild Home expo to be held in HCM City

Viet Nam News Vietbuild Home, an annual exhibition on real estate, interior exterior dĂŠcor and household appliances, opens in HCM City this week. There will be 2,300 booths displaying interior and exterior decorative items and household appliances like intelligent housing systems, wallpaper, carpets and rugs, electrical equipment, LED lighting, water purifiers, kitchen utensils and products serving smart urban and infrastructure, Nguyen Dinh Hung, chairman of Vietbuild Construction International Exhibition Organising Corp, the exhibition organiser, said. It will be held at the Sai Gon Exhibition and Convention Centre in District 7 from December 19 to 23.

The Southern area of Ho Chi Minh City has one more billion-dollar real estate complex

VnExpress Sunshine Diamond River, developed by Sunshine Group, has a total investment of $1.2 billion at Dao Tri Street, District 7, Ho Chi Minh City. The investor expects the project will become a leverage contributing to change the face of the Southern part of Ho Chi Minh City. Sunshine Diamond River is designed as a 6-star resort with more than 100 luxury amenities. The highlight of this resort is the green space, waterfalls, artificial river, tropical garden, and many other facilities offered to various types of clients, from young professionals, families and downsized retired couples.

Stock market may fluctuate next week: brokerage

The Saigon Times The local stock market is forecast to fluctuate as the maturity of futures contracts, or portfolio restructuring activities of exchange traded funds, among other activities, will take place next week, according to Bao Viet Securities. The broker predicted that the VN-Index on the Ho Chi Minh Stock Exchange would continue to fluctuate in the range of 955-971 points next week. The benchmark index still needs to surpass the resistance range of 970-971 points in order to enter the recovery span with higher confidence. However, colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 19 December 2019

Big real estate firms to join Hanoi’s old apartment building projects

Vietnam Insider Nineteen real estate companies have been selected for renovating and rebuilding 30 old apartment buildings in Hanoi. According to Hanoi People’s Committee, Sun Group will responsible for Kim Lien area which 42 apartment buildings, Thanh Xuan Bac with 61 buildings and Thanh Xuan Nam with 8 buildings.

Old apartment buildings in Hanoi

Novaland has chosen for itself a different way to mobilise Capital

Bizhub In recent times, while many other property developers in the country have mobilised capital by issuing bonds, Novaland has kept announcing loans worth hundreds of millions of dollars from international financial NovaWorld Phan Thiet 1,000 hectares developed by Novaland institutions.

FDI-and domestic consumption remain drivers of Vietnam’s growth: WB

Hanoitimes The foreign sector and domestic consumption remain the main drivers of Vietnam’s stellar economic expansion over the past years amid slower credit growth and sluggish disbursement of public investment, a senior World Bank (WB) economist has said. The combination of the foreign sector, whose exports have been growing 8-10%, and the domestic consumption, driven by an emerging middle class and growing wages, has driven Vietnam’s growth, Jacques Morisset, lead economist at the WB in Vietnam, said in response to Hanoitimes’ question at a press meeting on December 17.

Building alternatives to standard construction materials

Vietnam Economic News Speaking last month at the International Conference on Building Materials in Hanoi, Nguyen Tran Nam, Chairman of the Vietnam Real Estate Association, said that each year Vietnam’s population increases by about one million people. The dramatic development of the tourism industry also spawns construction of accommodations, resorts and related facilities. However, Dr. Le Trung Thanh, Director of the Vietnam Institute for Building Materials, said that given the increasing demand of the real estate market, the application of science and technology is vital to minimize the use of natural mineral resources and optimize that of industrial by-products, save energy, and protect the environment.

Ninh Binh removes constructions illegally built in the Trang An Scenic Landscape Complex

Vietnam Insider Pham Quang Ngoc, vice chairman of Ninh Binh Province, has asked Hoa Lu District People’s Committee to work with many departments to monitor and ensure that Doanh Sinh Tourism and Commercial Service Company will shut down all illegal constructions and fix the violations.The departments were asked to deal with the violations and propose solutions. A report by Hoa Lu District People’s Committee on December 5 stated that on November 19, Doanh Sinh Company was found violating regulations as their constructions were not in accordance with the approved building permit issued in 2016.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 20 December 2019

Two supporting industrial clusters to be set up in Bac Ninh province

Vietnam Investment Review Bac Ninh has set a target of building 24 modern industrial clusters (ICs) by 2020. According to the planning to 2020 with a vision to 2030 approved by the provincial People’s Committee, Bac Ninh will restructure 13 industrial clusters, keep 22 others unchanged and establish two new ones. In the 2020-2030 period, the province will build five more industrial clusters and shift six others into urban and service areas.

Two supporting industrial clusters to be set up in Bac Ninh province

HCM City plagued by serious shortage of social housing

Vietnam Insider There was not a single social housing project in HCM City this year, and with support funds for them being limited, there is a fear the situation could continue, experts said. The city has a population of around 13 million including about 3 million migrants, according to the HCM City Real Estate Association (HoREA).

HCM City plagued by serious shortage of social housing

Condotels: risky yet promising property segment

Bizhub Investment in condotels remains appealing despite defaults in profit commitments by property developers, but a clear legal framework is needed to protect investors’ rights, according to experts. Speaking at a seminar yesterday in HCM City, Luong Hoai Nam, member of the Tourism Advisory Council, said that condotel investment would continue to be attractive because of fast-paced development in tourism infrastructure. However, investment remains risky because of the “lack of a legal framework, limited ownership period (often 50 years), and lack of management capacity of the developers”, according to Nam.

Vietnam remains a top destination for cross-border investment Viet Nam News

A survey of business leaders in the Asia Pacific region has revealed Vietnam is a top destination for cross-border investment. More than 1,000 leaders were questioned by PwC as part of their survey “Doing business across borders in Asia Pacific 2019-2020”. Results have revealed companies in Vietnam are confident revenue will hit a five-year high, with almost half saying they are “very confident”. The survey showed businesses here are more optimistic than their Asia Pacific Economic Co-operation (APEC) counterparts, as only 34 per cent of businesses elsewhere are confident of reaching such highs. World Bank sees Vietnam’s economy grow 6.8% in 2019 Nhan Dan Online

In its latest bi-annual Taking Stock report on Vietnam, released on December 17, the WB stated that Vietnam’s economic growth has continued to be driven by strong exports, foreign investment and private consumption. Vietnam’s exports are expected to expand by 8% in 2019, nearly 4 times faster than the world average while the country has remained an attractive destination for foreign investors. According to the WB, Vietnam’s economic fundamentals appear robust and the government has built some fiscal space through its prudent fiscal policy. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 24 December 2019

Vietnam strengthens tax supervision of foreign-invested enterprises

Vietnam Insider Tax authorities are stepping up efforts to deal with possible tax avoidance or evasion by foreign-invested enterprises (FIEs) to ensure that they pay the tax due in Vietnam. Tax Departments of Hanoi and Ho Chi Minh City Vietnam strengthens tax supervihave recently revealed that thousands of FIEs are failing to comply with sion of foreign-invested enterpristax regulations and the tax authorities are investing the issue to publish es the list of violating enterprises.

X2 Hoi An Resort & Residence wins International Property Awards 2019

Vietnam Investment Review Following the success of the Asia-Pacific Property Awards 2019 in Bangkok earlier in the year, X2 Hoi An Resort & Residence was honoured to be nominated and awarded the Best Residential Development Asia-Pacific title at the International Property Awards, held in London in December 2019. The International Property Awards is the world’s leading, most prestigious, and most credible real estate awards.

X2 Hoi An Resort & Residence

Lao-Cai rejects investment projects causing environmental pollution Vietnam News The northern mountainous province of Lào Cai has recently rejected two investment projects that have high potential to cause negative impacts on the environment, especially in Bao Thang District’s Tang Loong Industrial Park. The two projects include building a thermal power plant by Duc Giang Chemical One Member Co., Ltd and the second phase of building an acid production plant of Nam Tien Joint Stock Company, Tin Tuc (News) newspaper reported. In order to treat solid waste, Lao Cai Province granted a licence to an enterprise for building a hazardous and industrial waste treatment plant. The province also installed an automatic emission monitoring station in Tang Loong Industrial Park and a system to receive automatic monitoring data from enterprises in the industrial park. Vinh Phuc IPs Attract 60 New FDI Projects in Jan-Nov Vietnam Business Forum From January to November, Vinh Phuc industrial parks attracted 60 new foreign direct investment (FDI) projects and witnessed 45 projects raising their investment value by US$740.17 million (US$333.22 million from fresh projects and US$406.95 million from existing projects), 2.6 times that of the same period of 2018 and equal to 274% of the yearly plan. Local industrial parks also had eight domestic direct investment (DDI) projects and saw five projects adding their investment value, totaling VND2,662.78 billion (VND2,585.8 billion from new projects and VND76.98 billion from existing projects), 6.2 times that of the same period a year ago and equal to 321% of the full-year plan.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 26 December 2019

Real Estate Market 2019: “Limited supply”

Dau Tu Bat Dong San 2019 witnessed a sharp decline in supply due to difficulties in licensing procedures for new projects. In addition, the supply of new housing tends to move away from the city centers. Nhu Khuong, Market Research Department of Colliers Vietnam mentioned that, after a period of rapid growth in the 2017 to 2018 period, from the beginning of 2019 until now, all segments have recorded a sharp decline in supply and demand, both in Hanoi and Ho Chi Minh City.

Real Estate Market 2019: “Limited supply”

State agency or company should manage apartments in Hanoi

The Voice Of Vietnam An enterprise or the State agency should be responsible for the management of apartment buildings and the building’s maintenance fund with the participation of representatives including residents, investors and local management agencies, said Dong Minh Son from Hanoi Construction Association. He said the capital city has been collecting opinions to issue its own regulations on apartment management, including management over maintenance funds.

Apartment buildings in Hanoi.

Vietnam’s stable macroeconomy in 2019 drives following years The Voice Of Vietnam In 2019, for the second year in a row Vietnam’s economy has exceeded all 12 socio-economic criteria set by the National Assembly. Macroeconomic stability has been sustained; major economic balances have been improved; annual GDP growth is expected to reach 6.8%; and inflation has been kept below 3%. Vu Hong Thanh, Chairman of the National Assembly’s Economic Committee, said, “The economy has been restructured. Labor productivity continues to improve. Vietnam’s major industries have seen stable growth and industrial production has been strong, particularly processing and manufacturing. Vietnam’s stable macroeconomy in 2019 drives following years Vietnam Economic News According to the Ministry of Planning and Investment’s Foreign Investment Agency, in the first 11 months of the year, the number of delegations coming to explore investment opportunities in Vietnam surged by about 30 percent compared to a year ago. Many of the visiting delegations sought opportunities to shift investment from China to Vietnam and were primarily from Japan, the Republic of Korea, China, Hong Kong (China), and Singapore. In the January-November period, Vietnam attracted US$31.8 billion in foreign direct investment (FDI), a year-on-year increase of 3.1 percent. As of November 20, as many as 3,478 new projects were granted licenses with total registered investment capital of US$14.68 billion, an increase of 28.2 percent in number of projects but a drop of seven percent in value compared to the same period last year

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