Monthly Real Estate News | February 2020 by Vietnam Realty

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VIETNAM MONTHLY REAL ESTATE NEWS - February 2020 -

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Daily Real Estate News Highlights Vietnam - 03 February 2020

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.

Vietnam’s digital economy is the fastest growing in the region

Vietnam Insider “Over the last four years, approximately 1 billion USD in funding has poured into Vietnam’s e-commerce sector, reaching a record high in 2019,” the Singapore-based news outlet said. The last two years has seen the emergence of Vietnamese e-commerce players, such as Tiki, Thegioididong and Sendo, which are among the most successful e-commerce platforms in the region, it said.

Vietnam’s digital economy is the fastest growing in the region

Japanese firms teams up with Vingroup in smart urban building

Vietnam Investment Review Japan’s Mitsubishi Corp. and Nomura Real Estate Development will join hands with Vietnamese conglomerate Vingroup on a smart urban development project in Ho Chi Minh City, according to Nihon Keizai daily business newspaper. He suggested local authorities enhance coordination with ministries and other localities in the Mekong Delta for further stronger growth.

Ho Chi Minh City’s urban development project that Mitsubishi and Nomura intend to make into a smart city

Coronavirus fears spur sales of face masks

VnExpress Face masks have been flying off shop shelves following detection of the deadly new acute pneumonia virus in Vietnam. Several supermarkets and convenience stores staying open during Tet, the Lunar New Year festival, have seen an unusual surge in people buying medical and antibacterial masks, staff at these outlets said. The Aeon Mall supermarket chain in Hanoi has attracted large numbers of visitors and shoppers during the holiday that lasts until January 29. Of these, many people visited the face mask stall located at the entrance of the outlets.

World Bank issues first green loan to Vietnam

Hanoi Times Green project financing has become a global trend in the banking and finance industry and it opens another channel for Vietnam to pursue green growth. The World Bank has just announced its first “green loan” to Vietnam which will be used for businesses dealing with environmental problems in the country that has one of the world’s highest emissions rates relative to its economy. The loan package of US$212.5 million to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) was announced this month under the Green Loan Principles, a voluntary set of international guidelines to make loans for eco-friendly projects, such as to promote solar power or biodiversity, according to VOA.

Vietnamese businesses struggle to protect their brands

Inside Retail Asia Many Vietnamese famous brands have fallen into foreign hands or disappeared from the market. Meanwhile, others are struggling with big foreign rivals to survive. The sale of Sabeco to Thai investors some years ago added one more name to the list of Vietnamese famous brands falling into foreigners’ hands. Sabeco, more than 100 years old, was the pride of Vietnamese, as the brewery, together with Habeco and Huda, successfully dislodged Chinese beer brands out of the Vietnamese market tens of years ago. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 05 February 2020

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.

HCM City targets completion of many transport projects in 2020

Vietnam News HCM City authorities are planning to complete or start key transport infrastructure projects this year in an aim to reduce traffic congestion and develop connections between the city and neighbouring provinces. Luong Many transport projects in HCM Minh Phuc, director of the city’s Management Board for Traffic Works City that will be completed or will start construction this year are Construction and Investment, said the city is expected to complete 29 traffic projects and start construction for 27 new traffic projects this year. expected to ease traffic congestion

Local property market to recover this year

and contribute to the development of the city

Vietnam Investment Review Local property experts have forecast that the domestic real estate market will recover this year. Market demand and prices would likely to rise, according to economist Le Xuan Nghia. Nghia said more finances would be made available by the banking system, thanks to stable development over the past three years. Loans were an important financial source for the domestic real estate market, ensuring stable development of both the The local property market will be banking system and the real estate market, he said. Nguyen Tran Nam, a bit quiet from now until this year end chairman of the Viet Nam Real Estate Association, was quoted by dantri. com.vn as saying that Viet Nam’s real estate market was in a good place to grow this year and beyond thanks to the strong development of the macro-economy.

Coronavirus to hurt Vietnam’s economy The Saigon Times

The novel Wuhan coronavirus is likely to significantly affect local economic growth, with the tourism, aviation and trade sectors facing the heaviest losses, according to a report by VNDirect Securities Corporation. Accordingly, Asian countries, including Vietnam, will face an economic slowdown in the first quarter of this year as they have close economic ties with China, Thanh Nien Online newspaper reported. The Civil Aviation Authority of Vietnam has suspended all flights to and from mainland China and tours bringing Chinese tourists to Vietnam have also been cancelled, causing losses for the tourism and aviation sectors. VN stocks keep sliding, but positive signals up

Bizhub Vietnamese shares continued sliding on Tuesday morning, but showed positive signals as investors calmed down after the coronavirus damaged the market over the previous three days. The benchmark VN-Index on the Ho Chi Minh Stock Exchange edged down 0.28 per cent to end at 925.53 points. The VN-Index had lost a total of 6.38 per cent in the previous three trading days. More than 105 million shares were traded on the southern bourse, worth VND1.95 trillion (US$83.8 million). The VN-Index performed better on Tuesday morning than the previous days as investors turned positive from the fear that the coronavirus would bring severe damage to the economy.

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Daily Real Estate News Highlights Vietnam - 06 February 2020

Ba Ria-Vung Tau targets place among top 3 FDI destinations in Viet Nam

Vietnam News BA RIA-VUNG TAU – The southern province of Ba Ria-Vung Tau has announced measures that could help achieve its target of becoming one of the three provinces to attract the highest foreign direct investment (FDI) this year. They include drafting a socio-economic development plan for 2016-25 under which logistics services will be developed along National Highway No 51 and the Thi Vai River.

Ba Ria-Vung Tau targets place among top 3 FDI destinations in Viet Nam

Daewoo E&C to invest $388 million in Star Lake City in Hanoi

Vietnam Investment Review Daewoo Engineering and Construction (Daewoo E&C) is planning to co-operate with Korean financial institutions to invest $388 million in the Star Lake City project in Hanoi. On January 20, Daewoo E&C signed an Daewoo E&C to invest $388 million in Star Lake City in Hanoi investment development agreement with Korean financial institutions to promote a property development project in Star Lake City, Hanoi, according to newswire businesskorea.co.kr.

Coronavirus updates: Death toll has reached 492 Vietnam Insider

The increase marked yet another daily record for deaths in the region as front-line medical workers work around the clock to treat patients and fight to contain the spread of the virus. Cases of the novel coronavirus, also known as 2019-nCoV, rose by 3,156 – also a daily record – to 16,678, according to the figures, which are current as of midnight on Tuesday. Almost 2,000 of those new cases were confirmed in Hubei’s capital of Wuhan, where the virus is believed to have originated at a seafood and meat market. Vietnam seeks ways to boost exports Vietnam Insider General Director of the Foreign Trade Agency under the Ministry of Industry and Trade Phan Van Chinh said at a meeting on February 4 that Vietnam shipped over 41 billion USD worth of products to China in 2019, of which the agro-forestry-fishery sector contributed 7 billion USD. Vietnam News Agency reports. Around 100 containers of dragon fruit are stuck in Lao Cai province after China suspended imports of Vietnamese goods via the Lao Cai border gate on January 30.

Investors still keen on SOEs despite land issues

Bizhub Institutional investors are seeking opportunities to buy shares in large-cap State-owned enterprises when they launch IPOs in 2020. Companies that are expecting to equitise this year include telecommunications groups MobiFone and VNPT, Saigon Jewellery Co (SJC), and tourism firm Hanoitourist. They are among 93 companies that must complete the equitisation process by the end of 2020 under Decision 26/2019/ QĐ-TTg issued by the Prime Minister in August 2019.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 07 February 2020

Capitaland recognised as one of world’s most sustainable corporations

Vietnam Investment Review CapitaLand has been recognised as one of the world’s most sustainable corporations for the third consecutive year. CapitaLand was ranked 63th in the 2020 Global 100 Most Sustainable Corporations in The World index In June 2019, CapitaLand’s two resby Corporate Knights Inc. This is the eighth time CapitaLand was included idential projects in Vietnam – Seain the prestigious index. sons Avenue and Vista Verde.

After Cocobay incident, will the resort real estate be “struggling” with the corona pandemic in 2020?

Vietnam FDI Tourism develops only when the economy develops, Coronavirus is considered to have a heavy effect on the economies of many large countries. Therefore, when the pandemic ends, it will take more time for the economy to recover, after the economy is rebuilt, people begin to Will the resort real estate be “strugconsider traveling again. Therefore, the resort real estate industry is being gling” with the corona pandemic in 2020 affected for much longer than the coronavirus outbreak.

Land plots are dominating

Cung Cau High demand is the motivation for businesses to pour capital into the coastal provinces. However, coastal land is limited, so the supply is not much, causing strong price increases at quite a lot of land plots at many coastal projects. From the beginning of the year until now, some areas such as Quy Nhon, Nhon Hoi and Nhon Ly of Binh Dinh Province have attracted many investors to develop projects. Up to now, Nhon Hoi has attracted many big enterprises such as FLC, Phat Dat and Danh Khoi Real Estate Company. Nhon Hoi New City project is invested by Phat Dat Company and the strategic distribution company Danh Khoi (DKR).

Vietnam’s business registration capital reaches four-year record

Vietnam Insider According to Vietnam Government Portal, in January, 8,276 enterprises were founded with a total registered capital of VND 267.2 trillion. These enterprises generated 84,500 jobs. Due to Tet holidays in January, the number of newly-founded enterprises experienced a year-on-year decline of 17.9%. However, the amount of registered capital increased by 76.8% in comparison with the same period last year. Average registered capital of an enterprise was VND 32.3 billion, representing a year-on-year growth of 115.3%. Meanwhile, 3,652 enterprises expanded operation by investing VND 234.2 trillion.

Southern Key Economic Zone: An investment magnet

Vietnam Economic News The Southern Key Economic Zone (SKEZ) has become Vietnam’s hottest investment destination, accounting for 43 percent of all foreign direct investment (FDI) pledged. The SKEZ has made greater efforts to improve the investment environment, cut red tape and remove bottlenecks in order to enhance further the effectiveness of its FDI attraction. Lead in FDI attraction. Consisting of Ho Chi Minh City and nearby Dong Nai, Binh Duong, Ba Ria-Vung Tau, Binh Phuoc, Tay Ninh, Long An, and Tien Giang provinces, the SKEZ has made the largest contribution to Vietnam’s economic development, accounting for 45.4 percent of the country’s gross domestic product (GDP) and 42.6 percent of total budget revenues. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 25 February 2020

Wading through current condotel entanglements

Vietnam Net The condotel market has been stagnant for the last two years and many developers are falling on hard times. Kevin B. Hawkins, co-executive partner from Zico Law Vietnam, offers suggestions to help developers in the country cope. Over the past couple of years, we have witnessed the identification and attempts to solve the condotel issue in Vietnam with limited success. There has been confusion over the term “condotel” and what it really means in practice.

Wading through current condotel entanglements

Shopping malls flounder in wake of coronavirus outbreak

The Voice Of Vietnam An unexpected complication throwing off the forecasts of real estate consultants, shopping malls have been dragged down by the coronavirus epidemic. The coronavirus outbreak has had a marked negative effect on high-performing shopping malls like Vincom Center, Lotte Mart (Hanoi capital), Giga Mall, Saigon Center, or Pearl Plaza (Ho Chi Minh City). In Ho Chi Minh City, Giga Mall has reported a similar drop in performance in the past days.

Usually bustling shopping malls stand almost deserted since the coronavirus outbreak

Real estate businesses ask Government to remove difficulties

Vietnam Insider The Vietnam Real Estate Association (VNREA) will next month propose solutions to Prime Minister Nguyen Xuan Phuc to remove difficulties in administrative procedures, capital and cut loan interest for real estate businesses. VNREA Chairman Nguyen Tran Nam made the announcement at a conference held by VNREA in Hanoi on February 18, which was attended by leaders of the Construction Ministry and representatives of large property developers including Vinhomes, Sun Group, FLC, Novaland, BRG and Phuc Khang.

Construction of resettlement of Long Thanh airport to start in April

Vietnam Investment Review Starting the construction of one of the two resettlement areas of Long Thanh International Airport will take the project closer to being implemented on time. The construction of the Loc An-Binh Son area, one of the two resettlement areas of Long Thanh International Airport, will be kicked off in April. Dong Nai People’s Committee has asked the managing board of Long Thanh International Airport to prepare to implement the construction of social and technical infrastructure for the first resettlement area.

Provinces call for investment in real estate projects

Bizhub A number of provinces across the country are calling for investment in key real estate projects, attracting the attention of real estate businesses with strong capacity. Mai Trung Hung, deputy director of Ba Ria-Vung Tau Province’s Department of Construction, said that 37 key projects, including 16 public investment projects, are seeking investment. The department has been assigned by the provincial People’s Committee to invite bids for the South Vung Tau New Urban Area Project.

colliers.com/vietnam

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

Daily Real Estate News Highlights Vietnam - 26 February 2020

Apartment rents in Hong Kong plummeted

Dien Dan Dat Dai According to data from Spacious, a square meter of apartments in Hong Kong is being advertised at a record low price since March 2018. Leitizia Casalino, head of residential services at Colliers International Inc, commented that “Those whose families, or wives, or husbands do not work, or have children who are not attending school are moving away from Hong Kong. In some cases, landlords are willing to offer tenants a discount of 12% over the current rate.”

Apartment rents in Hong Kong plummeted

VN real estate investors advised to ‘put eggs in many baskets’

Vietnam Net To minimize risks as the real estate market has decelerated, investors have been told not to pour all their money into one project. Nguyen Loc Hanh, CEO of Ngoc Chau A Real Estate Investment, predicted a volatile 2020 for VN real estate investors advised to ‘put eggs in many baskets’ the real estate market, saying that there are big challenges related to the legal framework, changes in investment tastes and the covid-19 epidemic. The problems related to legal procedures have affected the supply of real estate products, pushing the house prices up.

ACV expects 2020 profit down by 6 trillion VND due to COVID-19

The Voice Of Vietnam The Airports Corporation of Vietnam (ACV) expects profit this year will reach just 1.7 trillion VND (73.4 million USD), a decrease of more than 6 trillion VND compared to the year’s forecast, due to the effect of COVID-19. The epidemic and its impacts could result in a total reduction of 35 million passengers in the entire port network this year, said ACV. Last year, the corporation achieved a net revenue of 18.3 trillion VND and an after-tax profit of 8.3 trillion VND, record results thanks to the growth of both passenger volume and air cargo.

Dong Nai becoming housing hot spot as neighbouring HCM City runs out of land

Bizhub Eleven major real estate projects will be developed in Dong Nai this year, according to the province People’s Committee. Novaland Group is working on Aqua City in Bien Hoa city’s Long Khanh Commune. Being built on more than 600 hectares, it will have villas, street houses, shop houses, and public utilities such as a school, shopping centre, children’s playground, marina, and others. Hung Thinh Corporation has announced plans for the second phase of its Bien Hoa New City in Bien Hoa city.

South Korea raises disease alert to top level as virus cases soar

Vietnam Insider South Korea raised its infectious disease alert level to its highest for the first time since 2009 on Sunday as confirmed coronavirus cases jumped to 602 and the death toll rose to five. More than half the new cases are linked to a church in the southeastern city of Daegu after a 61-year-old woman known as “Patient 31” who attended services there tested positive for the virus last week. The woman had no recent record of overseas travel. l in a bid to contain a surge in new cases.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 27 February 2020

Property firms complain about HCMC’s procedures

The Saigon Times Many enterprises have complained about the complicated six-step process for real estate projects, noting that it will raise their costs. On February 22, the HCMC government held a meeting with the representatives of local real estate enterprises to remove obstacle facing these firms, the local media reported. Specifically, the city announced a process for enterprises to conduct real estate projects.

Property firms complain about HCMC’s procedures

Viet Nam records trade deficit in first half of February

Bizhub Viet Nam recorded a trade deficit of US$30 million in the first half of February, according to the General Department of Customs. The nation’s total trade value in the first half of this month was $19.23 billion, an increase of 32 per cent compared to the second half of January and 3.3 per cent year on year, the general department reported. Of which, the export value rose by 30 per cent year on year to $9.6 billion, including $6.78 million from foreign direct investment (FDI) enterprises. Therefore, Viet Nam saw total export value increase by 5.4 per cent year on year to $27.86 billion for the period from January 1 to February 15. Of which, the export value of FDI enterprises was $18.5 billion.

Viet Nam records trade deficit in first half of February

100,000 apartments were abandoned in the Thai capital due to the Covid-19 epidemic Bizlive The apartment market in Bangkok (Thailand) - one of the markets favored by Chinese investors became extremely gloomy during the corona virus outbreak. Chinese buyers were once the main customers of this market, however, the outbreak in Wuhan (China) has hindered tourism - trade activities between China and Thailand. Bank of Thailand has loosened the rules of lending - mortgage to encourage domestic buyers. However, real estate developers are still bewildered. Flights cancelled between South Korea and Vietnam

Vietnam Net Airlines are issuing a moratorium on flights between Vietnam and South Korea, cancelling and reducing the number of flights at least until the end of March. Bamboo Airways announced cancelling all flights from Nha Trang and Danang to Incheon (in Seoul, South Korea). The routes have seven two-way flights a week. The cancellation lasts from February 26 until the time the COVID-19 outbreak is brought under control. Passengers who have already booked tickets to these flights will be eligible for a refund. According to Vietnam Airlines, flights VN414 and VN415 between Incheon and Noi Bai International Airport on February 26, 28, and in the entirety of March will be cancelled. A representative of the airline said that the flight schedules were modified to comply with the directions of authorities on epidemic prevention.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 28 February 2020

Vietnam is still one of favourite countries in terms of growth prospects

Vietnam Insider They are pointing to valuations that have not been this low since 2017, and an economy that has been growing 5 per cent or more each year for two decades. The nation’s benchmark gauge has almost completely erased its 2019 returns and now trades at about 12 times estimated earnings over the next year. Concerns about trade and supply-chain disruptions due to the novel coronavirus have already wiped off more than 6 per cent from the VN Index this year.

Vietnam is still one of favourite countries in terms of growth prospects

Fund managers are placing bets on the Vietnam growth story Deal Street Asia Vietnamese stocks are some of the world’s most battered this year, and market watchers are backing a turnaround. They’re pointing to valuations that haven’t been this cheap since 2017 and an economy that’s been growing 5% or more each year for two decades. The nation’s benchmark

Fund managers are placing bets on the Vietnam growth story

Quang Ninh: 108 million USD for infrastructure development in Ha Long city

Vietnam Plus Ha Long city in the northern coastal province of Quang Ninh has planned to spend 2.5 trillion VND (nearly 108 million USD) on 57 public works, especially transport infrastructure projects, in 2020. Ha Long city in the northern coastal province of Quang Ninh has planned to spend 2.5 trillion VND (nearly 108 million USD) on 57 public works, especially transport infrastructure projects, in 2020. Accordingly, the construction of Tran Quoc Nghien coastal ring-road was re-started after the Lunar New Year Festival and is expected to be completed in April this year, creating a new tourism space in the city.

Businesses maintain stable production amid impact of COVID-19 epidemic

The Voice Of Vietnam The production activities of firms in several localities nationwide have been greatly affected by the novel coronavirus (COVID-19) epidemic as enterprises with partners in China and throughout Asia have had numerous orders cancelled. Whilst simultaneously promoting an image of being a safe travel destination, the central province of Quang Nam along with Da Nang city have been focusing on maintaining stable production activities. At present, Quang Nam province is home to over 100 industrial garment enterprises that employ more than 30,000 labourers.

HoREA points out deficiency in new legal framework for condotel

Vietnam Investment Review The Ho Chi Minh City Real Estate Association (HoREA) has lauded the Ministry of Natural Resource and Environment in bringing a measure of clarity to condotel and tourist villa regulations but pointed out that certain property types have been left out of the scope of the new framework. Recently, the Ministry of Natural Resource and Environment (MoNRE) has issued documents guiding the handling of certificates of land use rights for tourist apartments and tourist villas (condotels).

colliers.com/vietnam

BAU BANG DEVELOPMENT LAND Bau Bang IP, Binh Duong Province

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