Monthly Real Estate News | February 2021 by Vietnam Realty

COLLIERS VIETNAM

VIETNAM MONTHLY REAL ESTATE NEWS - February 2021 -

COLLIERS INTERNATIONAL &CONTACT

ABOUT COLLIERS INTERNATIONAL Colliers International is a leader in global real estate services, defined by our spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, we integrate the resources of real estate specialists worldwide to accelerate the success of our partners. We connect through a shared set of values that shape a collaborative environment throughout our organization that is unsurpassed in the industry. With more than 100 professionals in 3 offices in Vietnam, the team is market driven and has proven and successful track record with both international and localexperience. From Hanoi, Danang to Ho Chi Minh City, we provide a full range of real estate services The foundation of our services is the strength and depth of our experience.

396

offices

countries

continents

$2.60

15,000

158 million

billion in annual revenue

square meter under management

professionals and staff

Publication

Coverage

Frequency

Content

Availability

Knowledge Report/ Market Insights

Vietnam

Quarterly

All marketsectors

Publicly available

Knowledge Report/ Market Insights

Ho Chi Minh City

Quarterly

All marketsectors

Publicly available

Knowledge Report/ Market Insights

Hanoi

Quarterly

All marketsectors

Publicly available

Knowledge Report/ Market Insights

Danang

Quarterly

All marketsectors

Publicly available

Asia PacificOffice Report

Asia Pacific includingVietnam

Quarterly

Office market

Publicly available

VietnamProperty Market Report

Vietnamcities

Quarterly

All marketsectors

On subscription

Development Recommendatio n

Vietnamcities

At request

All marketsectors

On subscription

For further information, please contact us:

DAVIDJACKSON DAVIDCEO JACKSON CEO david.jackson@colliers.com

david.jackson@colliers.com +84 28 3827 5665

HUAN NGUYEN Research Manager huan.nguyen@colliers.com

OFFICE

COLLIERS INTERNATIONAL|VIETNAM

HO CHI MINH CITY HO CHI MINHCITY Deutsches Haus, 3rd floor 33 Le Duan Blvd, Deutsches Ben Nghe Ward, Haus, 3rd Floor District 1, HCMC, 33 Vietnam Le Duan Boulevard, Ben Nghe Ward, District 1

HCMC, Vietnam HANOI Toong IPH, 2nd floor Tel: + 84 28 38275665 241 Xuan Thuy, Cau Giay District, Hanoi

CAMBODIA HA NOI CAMBODIA 93 SI Building, Preah Sihanouk, Sangkat Chaktomok, Khan Gelex Tower, 9th Floor 93 SIDoun BuildingPenh, Phnom 52 Le DaiPenh, Hanh, CambodiaPreah Sihanouk Hai Ba TrungDistrict

Sangkat Chaktomok

Hanoi, Vietnam

Khan Doun Penh

Tel: + 84 243 265 6969

Phnom Penh, Cambodia

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

Colliers News Why is office rental rates in HCMC 40% more expensive than Hanoi?

www.vtv.vn Data from Colliers Vietnam showed that in 2020, office rental rate in Ho Chi Minh City were 40% more expensive than Hanoi. Specifically, in Ho Chi Minh City, the average rental rates of Class A office in 2020 fluctuated in the range of VND 11 mil / m2 / month. Class B offices priced at about VND 7.1 mil - 7.35 mil / m2 / month. Meanwhile, in Hanoi, the rental rates of Class A office in 2020 was about VND 7.13 - 7.36 mil / m2 / month; Class B office rental rates was VND 5.3 mi / m2 / month. According to Colliers's expert, the reason that office rental rates in Ho Chi Minh City were much more expensive than Hanoi because office buildings in the capital were relatively old and less comfortable.

Vietnam outperformed China top-performing economy

become

Shaping the “players” who drive the housing market

Asia’s

www.vietnaminsider.vn Vietnam outperformed its regional peers, including China, to become the top performing economy in Asia in 2020, according to CNBC. Though some economies have not yet reported fourth quarter numbers, estimates compiled by the U.S. broadcaster from official sources and multilateral institutions like the International Monetary Fund found Vietnam was one of only three economies in Asia to achieve growth last year along with Taiwan and mainland China.

Vietnam attracts over US$2billion in FDI in January

Vietnam outperformed China to become Asia's top-performing economy

www.nhandan.org.vn Vietnam attracted more than US$2billion in FDI in January, 37.8 percent higher than in the same period in 2020, as announced by the Ministry of Planning and Investment, on January 28. Total registered capital decreased sharply over the same period in 2020, as Bac Lieu liquefied natural gas (LNG) power project with its size of US$4 billion was granted the investment registration certificate. If this project was not included, total registered investment capital in January 2021 would have increased 51.7 percent over the same period last year. Of which, registered capital of new projects reached more than US$1.3 billion; while additional adjusted capital reached more than US$ 472 million. In addition, capital contributions and shares purchases by foreign investors stood at US$ 220.8 million.

colliers.com/vietnam

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

Colliers News Thu Duc City Real Estate: "Virtual" price, many transactions failed at the minute of 89

www.dantri.com.vn Mr. David Jackson - Representative of Colliers Vietnam - said, due to the effect from the establishment of Thu Duc City, rapid increasing of housing prices here was understandable. According to Colliers' research, 50m2 of ground land in a deep alley or far away from a major road in District 9 was also priced from VND 2.5 - 3 bil. "The ground land close to major roads such as Nguyen Duy Trinh, Nguyen Xien (District 9) ranged from VND 70 mil/ m2, even some places reached a “record” of about VND 100 mil / m2. In Truong Tho ward, Thu Duc district, land prices were at the same level, while the average land price in District 2 was only about VND 60 mil / m2” - Mr. David Jackson said. According to Mr. David Jackson, at present, it was very difficult to find a project priced under VND 40 mil / m2 in Thu Duc new city.

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

Foreign companies boost investment in Vietnam

www.vir.com.vn Foreign enterprises poured a considerable amount of capital into manufacturing and processing projects in the first half of January, according to the head of the investment office at the Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza), Tran Viet Ha. Notable among them was a 34 million USD project sprawling over 7ha at the Le Minh Xuan Industrial Park, operating in services and logistics. During the first days of 2021, authorities in southern Dong Nai province presented investment licences to three foreign-invested enterprises working in support industries, two of which are long-time South Korean suppliers to Samsung.

Vietnam’s manufacturing growth in Jan weaker www.thesaigontimes.vn

Although business conditions in the Vietnamese manufacturing sector improved at the start of 2021, the growth was weaker than at the end of 2020, according to a report released by IHS Markit on February 1. Production, employment and purchasing activity remained broadly unchanged in January, while new orders increased at a slower rate. Meanwhile, a lack of shipping containers and raw material shortages caused a disruption in the supply chain, which in turn contributed to the fastest rise in input costs since June 2018. Output prices increased for the fifth successive month, but at a modest pace that was much weaker than that seen for input costs.

colliers.com/vietnam

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

Colliers News Office rents rates in Ho Chi Minh City are still on the rise www.cafef.vn According to Colliers Vietnam, although the occupancy rate decreased, the rental rate still increased. Due to the Covid-19 pandemic, many enterprises' business performance was severely affected. Companies have been more cautious about their relocation, innovation and expansion plans. Although vacancy rate was on the rise, developers still kept the rental rates. The representative of Colliers Vietnam said that tenants with good financial capacity, not affected by the pandemic, were moving their workplace to Class A buildings, but the number of transactions was much lower than that of last quarter. In contrast, tenants struggling during the Covid-19 period mostly chose to reduce their leased area or even switch to a lower segment building. Class A supply remained stable. In spite of being slightly lower than the same period last year, the occupancy rate in Q4 was still over 90%.

Office rents rates in Ho Chi Minh City are still on the rise

Vietnam – Hungary trade hits record of US$1 billion

www.vov.vn Bilateral trade between Vietnam and Hungary hit a historic record of more than US$1 billion in 2020, reflecting the enhanced relationship between the two countries in recent years. According to the Vietnamese Embassy in Hungary, it was the first time in history two-way trade reached US$1.297 billion, a rise of 73.88% over 2019. Of the figure, Vietnam’s exports to Hungary were worth US$925 million, an increase of 126.69%. The historic record trade demonstrated that the relationship between the two countries was growing stronger than ever, especially since the two countries upgraded relations to a comprehensive partnership in 2018.

Taiwan investors in Vietnam enhancing COVID-19 prevention efforts

www.vietnaminsider.vn Taiwan’s electronics firms with manufacturing operations in northern Vietnam have all strengthened anti-virus measures following recent Covid-19 infections in two provinces, Hai Duong and Quang Ninh, so as to prevent their production from being disrupted, according to industry sources. This is despite the fact that almost all Taiwanese investors in northern Vietnam do not operate plants in the two provinces, with the exception of acoustic components maker Poyun Enterprise, which runs assembly lines in Hai Duong, the sources said. Compal said its plant in Vinh Phuc is a 2-hour drive off Hai Duong and even farther off Quang Ninh and are running normally, but stressed it is enforcing stricter pandemic control and prevention measures than before.

colliers.com/vietnam

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

Colliers News Despite the pandemic, office rental rates are still on the rise www.plo.vn According to Colliers Vietnam, although the occupancy rate decreased, the rental rate still increased. Due to the Covid-19 pandemic, many enterprises' business performance was severely affected. Companies have been more cautious about their relocation, innovation and expansion plans. Although vacancy rate was on the rise, developers still kept the rental rates. In Ho Chi Minh City, the average rental rate of Class A office in 2020 was about VND 11 mil / m2 / month, Class B office fluctuated from VND 7.1 to 7.35 mil/ m2 / month. In Hanoi, the price is lower, Class A office rental rate was VND 7.13-7.36 million VND / m2 / month and Class B office rent rate was about VND 5.3 mil / m2 / month. It was forecasted that in 2021, office rental rates in Hanoi and Ho Chi Minh City would increase slightly, about VND 25,000-50,000 / m2 / month. At the same time, there would be a relocation of headquarters to other office buildings with lower prices or narrowing of office space to reduce costs and restructure the business.

Despite the pandemic, office rental rates are still on the rise

US becomes largest export market for Vietnamese goods in January

www.vov.vn The United States was the nation’s largest export market in January with a turnover of US$7.5 billion, representing an annual increase of 57.4%, according to statistics released by the General Statistics Office (GSO). China ranked second among the country’s biggest export markets with US$5.8 billion, a huge increase of 111.6% from the same period last year, followed by the EU, ASEAN, Japan, and the Republic of Korea. January saw the import turnover of goods enjoy a strong surge of 41% to US$26.4 billion compared to the last year’s corresponding period.

Authorities give long-awaited nod to huge property projects

www.vir.com.vn Two long-delayed property ventures in the south and south-central regions of Vietnam have finally been given the go-ahead by authorities. Lotte Group – the developer of the $900 million eco-smart city in Thu Thiem New Urban Area of Ho Chi Minh City – was approved by the government to continue the project after more than three years of delay. Meanwhile, ITC Spectrum last week also received the green light from Binh Dinh People’s Committee to continue its $250 million Vinh Hoi Hotel and Resort Complex, which initially received approval to be built back in 2006.

colliers.com/vietnam

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

Colliers News Ho Chi Minh City: The lowest price to buy an apartment is VND 23.7 mil / m2 www.congluan.vn Recently, in the Vietnam real estate market report, a representative of Colliers Vietnam revealed that in 2021, the HCMC market was expected to receive nearly 41,000 new apartments offered for sale, up 40% compared to 2020. Out of 41,000 upcoming apartments, 75.68% were in the middle and high-end segment, priced at over USD 1,500 / m2 (about VND 34.5 mil / m2). Most of them were located in “huge” projects in the Thu Duc new city. According to Colliers Vietnam, although apartment prices in HCMC were the most expensive in the country, the project absorption rate was always maintained at a high level.

Ho Chi Minh City: The lowest price to buy an apartment is VND 23.7 mil/m2

Logistics industry in Vietnam forecasted to grow significantly this year

www.vietnaminsider.vn SSI Securities Company expects the revenue of the seaport and logistics industry would expand by 10 per cent this year. Despite being affected by the Covid-19 pandemic last year, the industry was fuelled by expectations about Vietnam’s trade growth thanks to positive impacts of free trade agreements (FTAs) which were signed recently, including the European Union – Vietnam FTA (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP) as well as expectations about an increase in investment inflow triggered by the global production shift out of China.

Logistic industry in Vietnam forecasted to grow significantly this year

Samsung’ smartphone export from Vietnam accounts for over 50% global mobile phone supply

www.vietnaminsider.vn Vietnam’s mobile phone exports decreased for the first time in 11 years last year. The ratio of Vietnam’s mobile phone and mobile phone component exports to its total exports continued to increase for years and reached as high as 30 percent in 2019 to account for the largest portion for the 11th consecutive year. However, the mobile phone and mobile phone component exports decreased 0.4 percent to US$51.18 billion in 2020. In fact, Samsung Electronics’ mobile phone exports constitute almost 100 percent of Vietnam’s mobile phone exports. In Vietnam, the company is running mobile phone manufacturing plants in Bac Ninh and Ho Chi Minh City.

colliers.com/vietnam

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

Colliers News Ho Chi Minh City: Forecast of medium and high-end apartments "on demand" in 2021 www.meongsean.vn In quarter 4/2020, the number of new apartments offered for sale in Ho Chi Minh City was more than 3,600 units, down 26% from the same period last quarter. New launches mainly come from the mid-end and high-end segments. Meanwhile, the affordable segment still lacks supply despite the high demand for this segment. “The group of customers with financial capacity to own middle and high-end apartments is increasingly“ rejuvenated ”- Colliers International in Vietnam said.

Ho Chi Minh City: Forecast of medium and high-end apartments "on demand" in 2021

Kido, Vinamilk pour $17.5 mln into new beverage venture

www.e.vnexpress.net Packaged food producer Kido and dairy giant Vinamilk will invest VND400 billion ($17.49 million) in a new beverage company that targets an increased domestic market share. The nation’s largest dairy company in Vietnam, Vinamilk will have a 51 percent share in Vibev, the new company, and Kido, a producer of ice-cream and cooking oil, will own the rest. Vibev will focus on producing healthy non-carbonated drinks and ice-cream, with the first products to be launched in April.

Kido, Vinamilk pour $17.5 mln into new beverage venture

$800 million Tan Phu-Dong Nai Expressway to be built in 2021-2025 under PPP model

www.vir.com.vn On February 4, the Government Office issued Notice No.24/TB-VPCP announcing the conclusion of Prime Minister Nguyen Xuan Phuc on the implementation of the Tan Phu-Bao Loc Expressway project. The project will feature a roadway with the length of about 67km, and four lanes belonging to Dau Giay-Lien Khuong Expressway. Accordingly, the PM agreed to assign the People's Committee of Lam Dong province to be the competent agency organising the implementation of the expressway project in 2021-2025 under the PPP model.

Hanoi faces shortage of affordable housing

www.vnexpress.vn Hanoi’s new housing supply last year was just 28,800 units, its Department of Construction reported to the Ministry of Construction. Of them, 24,164 were apartments and the remaining 4,636 were low-rise houses. Around 16,350 apartments were in new projects, down 27.4 percent, while the rest were from the previous year. Only 10,000 apartments and 3,800 houses were sold.

colliers.com/vietnam

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

LG Display Vietnam adding US$750 million in investment to Hai Phong’s project

www.vietnaminsider.vn Vietnam has awarded a license to South Korea’s LG Display Co. to raise its investment in the country’s northern port city of Haiphong by US$750 million to US$3.25 billion, local media reported on Monday. The additional investment will help to expand production capacity in the city and would be completed by May and see 5,000 new jobs created, Vietnam News Agency reported. LG did not immediately respond to the email seeking comment from reporter.

LG Display Vietnam adding US$750 million in investment to Hai Phong's project

January auto imports surge 85 pct

www.vnexpress.net Auto imports in January rose to 8,343 completely built units worth $212.5 million, up 84.7 percent and 76.2 percent year-on-year, respectively. Most of car imports are from Thailand and Indonesia, at an average price range of VND350 million ($15,000) to VND 1.2 billion. Experts have said that the scale of manufacturing, tax exemptions and affordable auto models are elements that have allowed these nations to acquire large market shares in Vietnam.

January auto imports surge 85 pct

Thailand’s second-largest lender plans to open its branch in Vietnam

www.vietnaminsider.net Kasikornbank, the second-largest lender by assets, said on Monday it plans to open a branch in Vietnam’s commercial hub of Ho Chi Minh City in the third quarter of this year to tap into the country’s growth, Reuters reported. “Attention is now focused on Vietnam as a regional investment hub that has attracted the world’s leading companies – including those from Thailand – thanks to its strong economy,” said executive vice-president Pattarapong Kanhasuwan, noting its recovery should be helped by the country’s success containing Covid-19.

HCMC closes 'non-essential' businesses after Covid-19 surge

www.vnexpress.vn The HCMC administration has shut down bars, karaoke parlors, cinemas and discotheques, and banned religious events starting Tuesday. Chairman Nguyen Thanh Phong made the announcement Monday afternoon after the city’s Covid-19 community transmission cases rose to 31 in eight districts since the country's latest outbreak began Jan. 28. Twenty five of these were confirmed Monday evening. Phong said all cultural, sports and entertainment activities, beauty salons, massage parlors, internet cafes, wedding centers, theaters, gyms and pool table services will also be suspended from noon Tuesday until further notice. Religious events with gatherings of more than 20 people are prohibited.

colliers.com/vietnam

Colliers News Industrial real estate 'lives' enduringly despite the epidemic

www.diendandatdai.com According to Colliers International Real Estate Consulting Company in Vietnam, a vibrant sign is evident in the industrial zone real estate segment in 2020. The average industrial park rental rate in Ho Chi Minh City is the highest in the country, at 3, VND 8 million / m2 / rental cycle. In the southern provinces, Long An is an impressive FDI attraction, including 1,079 projects and a capital of 6.6 billion USD (December 2020 data) and is emerging as a “competitor. ”Of Ho Chi Minh City in the industrial real estate segment.

Industrial real estate "lives" enduringly despite the pandemic

FTAs have positive impact on Vietnam’s economic recovery

www.vnexplorer.net Free Trade Agreements (FTAs) which were signed and implemented have been opening favorable future prospects for Vietnam when it joins an economic unit with GDP accounting for 60% of global GDP. International integration is an important highlight of Vietnam in 2020. Within one year, Vietnam joined 3 FTAs, including the EU-Vietnam FTAs, the Regional Comprehensive Economic Partnership (RCEP) Agreement and the Vietnam-UK FTA; bringing the total number of signed and implemented FTAs to 15.

FTAs have positive impact on Vietnam's economic recovery

Vietnam's GDP growth rate may expand at 5.8 per cent

www.vir.com.vn The Vietnam Institute for Economic and Policy Research (VEPR) estimated the country's GDP growth at 5.6-5.8 per cent – or 1.8-2 per cent if the worst comes to pass. The most recent resurgence of COVID-19 has been brought under control in short order, with no new breakout expected for the best part of this year. Thanks to that, domestic economic activities will continue to recover and comply with the new normal of the global economy, where sporadic, small-scale resurgences are expected by the VEPR.

Prime Minister requests purchasing COVID-19 vaccine in February

www.vir.com.vn Prime Minister Nguyen Xuan Phuc has ordered the health sector to conduct all necessary measures to make COVID-19 vaccines available in Vietnam this month either through purchasing or from UN organisations. Prime Minister Nguyen Xuan Phuc has ordered the health sector to conduct all necessary measures to make COVID-19 vaccines available in Vietnam this month either through purchasing or from UN organisations.

colliers.com/vietnam

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

Colliers News Two bright and dark areas of real estate picture 2021

www.vnexress.net Mr. David Jackson, General Director of Colliers International Vietnam shared with VnExpress about the prospect of the real estate market in Tan Suu year with two opposite bright and dark areas. According to this expert, the contrasting brightness and dark gray areas of the 2021 real estate picture are evidence of the unpredictable impact of Covid-19 on the real estate industry. With the boom in e-commerce increasing demand for warehouse rentals, the trend of moving production out of China and the Vietnam-European Union Free Trade Agreement (EVFTA) drive demand. Demand for industrial land, factories and logistics services will continue to increase in 2021.

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

Vietnam to receive first batch of COVID-19 vaccine shots at end of month

www.tuoitrenews.vn The first batch of COVID-19 vaccine shots is expected to arrive in Vietnam at the end of this month, including the doses the country has purchased and free doses provided by COVAX. Meanwhile, the exact number of doses purchased by the country remains unknown. In related news, the Vietnam Military Medical University will begin the second phase of the human trial of locally-made COVID-19 vaccine Nanocovax, developed by Ho Chi Minh City-based Nanogen

Vietnam to receive first batch of COVID-19 vaccine shots at end of month

South Korean investors remain upbeat on Vietnam potentials

www.vnexpress.net Vietnam will continue to be a promising investment destination for South Korean companies, given its manufacturing potential, says a Korean Chamber of Commerce official. Many South Korean companies are considering expanding their investments in Vietnam because they are optimistic about the country’s prospects after its success in handling the Covid-19 pandemic, said Sun Hong, secretary general of the Korea Chamber of Commerce in Vietnam (Korcham). Since Samsung entered Vietnam in 2008, the number of South Korean suppliers has been rising and now stands at over 1,000, according to Korcham data. South Korea was the second largest foreign investor in Vietnam last year with a total registered capital of over $3.95 billion, behind Singapore, according to the Ministry of Planning and Investment.

Colliers News The real estate market adds growth leverage

www.feed24h.net In addition to policies to help remove difficulties and restore the real estate market, the Prime Minister recently approved the Project of Economic Security in the housing and real estate market to ensure social security. , helping the market have more leverage for growth. According to the latest report of Colliers International Vietnam, it is expected that in 2021, Ho Chi Minh City will welcome a supply of more than 4,000 townhouses. In particular, the Northeast market will get hotter with the introduction of the city. Thu Duc. Colliers data shows that there are 6 projects from Thu Duc, Binh Chanh and Nha Be areas that will bring supply to Ho Chi Minh City in the near future.

The real estate market adds growth leverage

Vietnam listed among the countries with biggest prospects for online banking in APAC: Study

www.vietnaminsider.vn According to a study by UnaFinancial, these countries have a huge potential in APAC for neobank growth and are promising for new companies, which are planning to enter the market. The study considered 12 countries of Asia-Pacific region. The group analyzed VIetnam listed among the countries with biggest prospect for two main parameters to build the matrix: the country’s attractiveness online banking in APAC: Study for online banking and the competitiveness of neobanks in the banking segment. The market attractiveness was evaluated based on consumer factors (potential target audience, unsatisfied demand), market factors (potential volume of the sector, market regulation) and market tendencies (increase in digital financial services use, possible changes in consumer behavior etc.)

Production resumes after Tet holiday

www.en.nhandan.com.vn Business and production activities resumed right after the week-long Lunar New Year (Tet) festival ended on February 16. On the morning of the sixth day of the lunar year (February 17), Vicem Hoang Thach Cement Company exported the first batch of clinker and launched their production activities for the new year. During Tet, the company continues to assign a workforce to work three consecutive shifts a day, while also maintaining production stability in all functional departments. In 2020, the Hai Duong Province-based company completed their planned targets, in which total cement and clinker consumption exceeded the assigned plan, with profit reaching VND267 billion. In the new year, the company strives to grow by about 5% compared to 2020.

colliers.com/vietnam

Colliers News Vietnam continues to be an investment destination

www.baodautu.vn Mr. David Jackson, CEO of Colliers Vietnam shared: “I hope Vietnam would continue to control Covid-19 effectively as it has been in the past year. From a business perspective, along with control of Covid-19 and soon provision of vaccines to the people, Vietnam would continue its economic growth momentum. Besides giving many incentives to foreign enterprises, Vietnam also needed policies to strongly and more suitably support domestic enterprises. This would help domestic enterprises increase their competitiveness, contributing to helping Vietnam gradually improve its position in the global supply chain.”

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

Domestic real estate market sees recovery: Ministry

www.vietnaminsider.vn The Ministry of Construction (MoC) believes the domestic real estate market has overcome the most difficult period due to positive developments in the market as well as the whole economy in the fourth quarter of 2020. The industrial property segment can be considered a bright spot of the domestic market for many reasons such as the European Union – Vietnam Free Trade Agreement (EVFTA) coming into effect and plans for the relocation of many multinational corporations to Viet Nam, according to the ministry. Meanwhile, Viet Nam’s successful disease control is also an important factor to attract more foreign investment.

Northern highlands province joins the airport queue

Domestic real estate market sees recovery: Ministry

www.vnexpress.net The northern mountainous province of Ha Giang is the latest among several provinces wanting an airport included in national aviation development plans. The province has proposed that a military cum civilian airport be built in Bac Quang District on an area of 388 hectares, 260 kilometers to the north of Hanoi. Of the total area, 70 hectares, or 18 percent, would be dedicated for military use, the province says in its proposal to the Ministry of Transport. It wants this new airport to be included in the national 2021-2030 airport development plan with vision until 2050. The province expects the airport to deliver a "breakthrough in socio-economic development." The northern province of Son La has proposed that its Na San Airport be upgraded for both military and civilian use.

colliers.com/vietnam

Colliers News Legal move supports realty market development in 2021

www.vcci.com.vn The latest report by Colliers International Vietnam forecast that more than 4,000 shop houses would be released in the Ho Chi Minh City market in 2021. The birth of Thu Duc City would fuel the development in the city’s northeast. Colliers data also show that products from six projects in Thu Duc, Binh Chanh, and Nha Be districts will enrich supply in the upcoming time.

Legal move supports realty market development in 2021

Viglacera's $124 million industrial park in Bac Ninh approved www.vir.com.vn

Thuan Thanh I Industrial Park will be built in Bac Ninh province with a total investment of $123.8 million with Viglacera Corporation as the main investor. The prime minister has authorised Viglacera Corporation – Vietnam's leading construction materials provider – to invest in Thuan Thanh I Industrial Park (IP). Thuan Thanh I IP covers over 249 hectares across three communes: Ninh Xa, Tram Lo, and Nghia Dao in Thuan Thanh district, Bac Ninh province. The total initial investment of the project is VND2.8478 trillion ($123.8 million), of which the contributed capital of Viglacera is more than VND859.7 billion ($37.4 million).

Vigiacera's $124 million industrial park in Bac Ninh approved

COVID-19 is speeding up Vietnam’s digital transformation. Here’s how! www.vietnaminsider.vn

Amid this looming crisis, more and more Vietnamese turned to e-commerce platforms and digital financial services for Tet preparation. Tiki, one of the four largest online shopping platforms in Vietnam, reported that its transaction volume in January surged 50 per cent compared to the same period last year.

Hanoi to operate 10 electric bus routes in Q2 www.english.thesaigontimes.vn

The capital city of Hanoi will introduce 10 new bus routes using electric vehicles in the second quarter of this year, aimed at diversifying the modes of public transport and protecting the environment. These bus routes will connect densely populated new urban areas, where there is a high demand for public transport, according to the Hanoi Public Passenger Transport Management and Operation Center, under the Hanoi Department of Transport.

colliers.com/vietnam

Colliers News Colliers: Real estate logistics has become a core sector in the Asia-Pacific region

www.cafeland.vn According to Colliers, most enterprises in the Asia-Pacific region currently preferred the expansion of warehouse space. Rental rates in major cities in China in 2021 were expected to increase, with the highest growth rate of 3% in Shanghai. Meanwhile, the demand was maintained at a stable level, rental rates in two major cities of Australia, Sydney and Melbourne, were likely to increase from 1 - 2.5%. Colliers experts assessed Singapore as the most developed logistics real estate market in Southeast Asia at the moment. However, the fact that many enterprises chose Vietnam as a potential destination outside of China could change the logistics real estate market in Southeast Asia in the near future. The growth of the logistics sector has also boosted demand for cold chain growth. In the future, Colliers experts predicted that this form of supply would become more popular in the Asia-Pacific market.

Colliers: Real estate logistics has become a core sector in the Asia - Pacific region

Thai conglomerate joints ventures with largest plastic manufacturer in Vietnam

www.vietnaminsider.net Thai conglomerate Siam Cement Group started off in Vietnam with joint ventures and tie-ups, but for expansion subsequently it resorted to mergers and acquisitions. SCG Packaging Public Company Ltd (SCGP), its subsidiary, recently signed an agreement to buy 70 percent of Duy Tan Plastics, the largest manufacturer of rigid plastic packaging products in Vietnam. The parent, SCG, now owns eight Vietnamese packaging companies. Aside from the newly acquired Duy Tan Plastics, the total revenue of SCG’s packaging companies in 2019 was over VND10 trillion ($434.7 million).

Apple’s contract manufacturer is recruiting over 1,000 employees in Vietnam www.english.thesaigontimes.vn

Taiwan’s Hon Hai Technology Group (Foxconn), which is Apple’s major contract manufacturer, is recruiting 1,000 electronic assembly workers for its plants in the northern Vietnamese provinces of Bac Giang and Bac Ninh. According to the recruitment announcement posted on the Foxconn Vietnam website, the Taiwanese electronics contract manufacturer offers a salary of VND4.9 million for the post of electronic assembly worker, in addition to allowances for meal, accommodation (if they do not stay in the company’s dorms), travel, and attendance.

colliers.com/vietnam

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

Colliers News Will the hotel recover in 2023?

www.cafef.vn According to a representative of Colliers International, the global economy was likely to improve in the Q2/2021 and it would take 3 more years for the tourism industry to recover to pre-pandemic levels. According to this firm, the hotel segment in Asia could recover to a V-shape and was expected to return to the level of growth from 2023 to 2019. A number of possible short-term positive impacts such as border reopening as well as action plans to re-start tourism have been actively promoted by many governments.

Will the hotel recover in 2023?

New industrial park approved in Bắc Ninh Province

www.vietnamnews.vn Prime Minister Nguyen Xuân Phuc has decided to give in-principle approval to a project to build the infrastructure of Yên Phong II-A Industrial Park (IP) in the northern province of Bac Ninh. Invested by Western Pacific Infrastructure JSC, the IP will cover 151.27 ha in Tam Giang and Hoa Tien communes in Yên Phong District. It is expected to cost VNĐ1.83 trillion (more than US$79.5 million). The PM has asked the provincial People's Committee to be responsible for ensuring the accuracy of information and data reported, as well as issues related to assessments in line with legal regulations.

New industrial par approved in Bac Ninh Province

GE in deal to build first wind farm in Lam Dong

www.english.thesaigontimes.vn GE Renewable Energy has been awarded a contract by Ocean Renewable Energy JSC to supply 15 GE 4 MW-137 wind turbines to support the construction of the Cau Dat Wind Farm, the first wind farm in the Central Highlands province of Lam Dong. The turbines, which have a hub height of 111.5 meters and a rotor diameter of 137 meters, are ideally suited to exploit the wind conditions in the mountainous range of Lam Dong Province.

Da Nang grants licences to six investment projects

www.vir.com.vn The central city of Da Nang on February 23 granted investment licences to six investment projects in local Hi-Tech Park and industrial parks, including three foreign-invested projects. The three FDI projects are funded by Japanese and US investors. They are a 110-million-USD semiconductor factory, a 35-million-USD Fujikin Da Nang research-development-production centre, and a 300,000-USD packaging factory. The three domestically-invested projects have a total capital of 73.4 billion VND.

colliers.com/vietnam

Colliers News Remove obstacles for the development of the real estate market

www.nhandan.com.vn Ms. Kim Ngoc, Head of Valuation and Advisory Services, Colliers Vietnam, commented that the changes and updates in the Investment Law, Securities Law and Enterprise Law could help mergers and acquisitions activities (collectively referred to as M&A) become more active after many inappropriate regulations were abolished. Combined with Vietnam's good implementation of the "dual goal" in 2020, we could be confident that M&A activities would recover quickly. Areas that may attract more M&A were real estate, retail, or consumer goods.

Remove obstacles for the development of the real estate market

PM approves construction of three IPs

www.vir.com.vn Prime Minister Nguyen Xuan Phuc has approved projects on the construction and infrastructure development of three industrial parks (IPs). One of them is the Co Chien IP in Dai Phuoc commune in Cang Long district of the Mekong Delta province of Tra Vinh. The IP, covering nearly 200 ha, will be built at a cost of 748.98 billion VND (nearly 32.47 million USD), of which 112.35 billion VND comes from the investor. Another is the 300-ha Tan Duc IP in Ham Tan district of the southern coastal province of Binh Thuan, invested by Sonadezi Binh Thuan JSC with an investment worth 1.2 trillion VND. PM Phuc also okayed the investment at Song Lo II IP in Vinh Phuc province in the north. It will be constructed on an area spanning about 165.66 ha with a budget of 1.52 billion VND.

PM approves construction of three IPs

Demand rises for affordable office space in HCMC as companies cut costs

www.vnexpress.net Office space outside downtown HCMC costing $15-16 per square meter per month has seen an increase in demand in 2021, a VnExpress survey has found. VNO Development and Investment Corporation, a company that transforms houses into office space for rent, said for instance that the number of businesses renting its offices for three to six months increased by 20 – 25 percent from last quarter. Its offices with rentals of VND368,000 ($16) per square meter are attracting small local businesses, especially in the construction, land survey, market research, and online selling sectors, which are recovering after a year of suffering due to the pandemic.

colliers.com/vietnam

INVESTMENT PROJECT RESIDENTAIL DVELOPMENT SITE IN NHA BE Phuoc Kien Ward, Nha Be District, HCMC

Summary Information • Location: Nguyen Huu Tho Street, Phuoc Kien Ward, Nha Be District, HCMC, VN • Land Area: 9,954.8 sq.m • Land Tenure: Freehold • Legal Status: Vacant land • LandUse Purpose: Residential (Low-rise) • Transaction Type: Asset Transfer or Project Transfer

Site Plan

All enquiries and requests in relation to this opportunity are to be directed to:

Terence Alford Director | Capital Markets Main: +84 8 3827 5665 MB: +84 837 197 184 Email: Terence.Alford@colliers.com

• Residential › Next to Galleria - a low rise existing residences › 1km to Dragon Hill Apartment Building › Opposite to Metro City Project • Commercial & Facillites › Under 2km to Area 20 Park, local school, administration and hospital › Under 6km to other shopping mall such as Cresent Mall, SC Vivo City, Lotte Mart D7

COLLIERS VIETNAM Level 3, Deutsches Haus 33 Le Duan, District 1 HCMC | Vietnam www.colliers.com/vietnam

• Accessibility › Facade of the project is on Nguyen Huu Tho Street, connect directly and easily to access to other districts › Approximately 10km away from the CBD

INVESTMENT

HIGHLIGHTS

• Prime locaation Phuoc Kien Ward, Nha Be District, which conveniently, easilly access to other districts. • Clean and clear legal document, ready for acquisition. • Surrounding by residental projetcs/ existing residences - an added advantage for commercial development.

Him Lam Urban Area Trung Son Residences Him Lam Residences Nguyen Van Linh Blvd.

Kim Son Residences

Phu My Hung Urban Area

6B Intresco Residences T30 Residences

Dragon Hill Apt Building

• Advantage from future Metro Line No.4 on Nguyen Huu Tho Street • Flexible design and adjustable development framework

Galleria

SC Metro City Project

The Site

Accelerating success.

INVESTMENT PROJECT 15HA BONDED LOGISTIC HUB DINH VU DEEP C I INDUSTRIAL ZONE

Accessibility and Transportation

The Property is strategically in Dinh Vu Deep C I Industrial Zone, which has been developed and operating since 1997, within the Dinh Vu – Cat Hai. Dinh Vu Industrial Zone is in the Dinh Vu peninsula – on the lower river from Haiphong to the sea, on the continental shelf of the Gulf of Tonkin. One of the advantages of the IZ is adjacent to the new Haiphong International Gateway Port (Lach Huyen Deep Sea Port), Cat Bi International Airport, and North Vietnam Coastal Expressway, etc.

INVESTMENT

HIGHLIGHTS

• Clean and clear legal documents, ready for acquisition • Surrounding by fully developed infrastructure and amenties • Modern, well constructed, clean and secure warehouse system for any kind of products, especially heavy product • Strategic location within Dinh Vu – Cat Hai Economic • Zone with many investment incentives (tax, land use fee, etc.) • Local entity set up and held 100% offshore by a International private owner

Terence Alford Director | Capital Markets Main: +84 8 3827 5665 MB: +84 837 197 184 Email: Terence.Alford@colliers.com

Thuy Nguyen Analyst | Capital Markets Main: +84 8 3827 5665 MB: +84 961 524 757 Email: Thuy.Nguyen@colliers.com

Accelerating success.

COLLIERS VIETNAM

HO CHI MINH OFFICE Deutsches Haus HCMC, 33 Le Duan, 3rd Floor HCMC, Vietnam Tel +84 (28) 3827 5665 Fax +84 (28) 3827 5667

HANOI OFFICE Floor 2, Toong IPH, 241 Xuan Thuy, Cau Giay District, Hanoi, Vietnam Tel +84 (24) 6294 3393 CAMBODIA OFFICE 93 SI Building , Preah Sihanouk, Sangkat Chaktomok, Khan Doun Penh, Phnom Penh, Cambodia

For market research reports, please visit our website at www.colliers.com/en-vn This document has been prepared by Colliers Vietnam for advertising and general information only. Colliers Vietnam makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers Vietnam excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers Vietnam and/or its licensor(s). All material are sourced and collated in this document by Colliers is from the public domain. ©2019. All rights reserved. contact@colliers.vn