Monthly Real Estate News | January 2019

COLLIERS INTERNATIONAL

VIETNAM MONTHLY REAL ESTATE NEWS - January 2020 -

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

68

6

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

Vietnam cities

Quarterly

All marketsectors

On subscription

Development Recommendatio n

Vietnam cities

At request

All marketsectors

On subscription

For further information, please contact us:

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, Ben NgheHaus, Ward, Deutsches 3rd Floor District 1, HCMC, Vietnam 33 Le Duan Boulevard,

CAMBODIA CAMBODIA 93 SI Building, Preah Sihanouk, Sangkat Chaktomok, Khan Doun Penh, Gelex Tower, 9th Floor 93 SI Building Phnom Penh, Cambodia 52 Le Dai Hanh, Preah Sihanouk HA NOI

Ben Nghe Ward, District 1

Hai Ba TrungDistrict

Sangkat Chaktomok

HCMC, Vietnam

Hanoi, Vietnam

Khan Doun Penh

Tel: + 84 243 265 6969

Phnom Penh, Cambodia

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

KONGSBERG FACILITY Dong Xuyen IP, Ba Ria-Vung Tau Province

Summary Information • Land Area: 45,795.6 sq. m • Land Tenure: annual payment expiring on 09 Sep 2046 (27 years remaining) • Legal Status:

> Land Lease Contract signed directly with the park developer

> LURC and Investment License has been issued

• Land Rental: Annual fee of US$1.76/sq. m/year (Approx.

US$80,537 per year) • Sale Structure: Share transfer of the onshore holding company

Site Plan • Building: 12500 sq. m:

> Cutting, rolling & steel storage: 1850 sq. m with 2 overhead

cranes; Maximum lifting capacity 40 ton Welding: 3000 sq. m with 3 overhead cranes and 6 wall travelling

and 6 wall travelling cranes; Maximum lifting capacity 100 ton

> Machining: 250 sq. m with one overhead crane; Lifting > Machining area: 250 sq. m with one overhead crane; Lifting

capacity 15 ton

> Certified by ISO 9001 / ISO 14000 / OHSAS 18000

> Storage & kitting: 1600 sq. m

> Offices 1st. floor: 1200 sq. m

> Canteen, kitchen, reception & wardrobes: 1300 sq. m.

INVESTMENT

HIGHLIGHTS

• International private owner with local entity • Clean and clear company and ready for acquisition • Completed infrastructure • Reasonable price • In short supply from the industrial park developer colliers.com/vietnam

BIEN HOA HO CHI MINH – LONG THANH – DAU GIAY HIGH WAY TOLL STATION

MA I CHI THO STREET

NGUYEN THI DINH STREET. THU THIEM TUNNEL

capacity 15 ton

HCMC

PHU MY BRIDGE

1hr30 Drive

NH51

> Assembly & Testing: 4500 sq. m with 3 overhead cranes

NH51

BELT ROAD 2

cranes; Maximum lifting capacity 100 ton

VUNG TAU

All enquiries and requests in relation to this opportunity are to be directed to: Terry Alford Director Mobile +84 837 197 184 Main +848 3827 5665 Terence.Alford@colliers.com Meir Tlebalde Investment Manager Mobile +84 774 426 174 Main +848 3827 5665 Meir.Tlebalde@colliers.com

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

Daily Real Estate News Highlights Vietnam - 02 January 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 top 10 economic events in 2019 (P.1)

Hanoitimes It is no doubt that 2019 was another successful year for Vietnam’s economy, putting the country in a favorable condition to achieve all socio-economic targets set for the 2016 – 2020 period. Hanoitimes introduces the first part of Vietnam’s top 10 economic events in 2019.

Domestic property market to have enough capital next year

Signing of EVFTA and enforcement of CPTPP

Bizhub Vietnam’s real estate market will not be short of capital next year but will still face many challenges from policies and administrative procedures, experts said at the annual Vietnam Real Estate Forum. Can Van Luc, chief economist of the Bank for Investment and Development of Viet Nam (BIDV), told the forum in Ha Noi on Thursday that real estate capital with 60 per cent from banks and 40 per cent from other sources will be maintained next year.

A view of HCM City

Vietnam aims at high-income status by 2045

VnExpress Lower middle-income Vietnam will try to sustain high economic growth to become a high-income country by 2045, says PM Nguyen Xuan Phuc. The country’s Gross National Income (GNI) per capita this year is almost $2,800, which would be over $3,000 using a revised GDP measurement method, Phuc said at an online meeting with leaders of cities and provinces on Monday. This puts Vietnam in the lower-middle income economy classification, defined as economies with a GNI per capita between $1,026 and $3,995, according to the World Bank. Some other countries in this group are Cambodia, India, Indonesia, Myanmar and the Philippines.

Binh Duong makes economic breakthroughs in 2019

Nhan Dan The southern province of Binh Duong has emerged as a spotlight nationwide in economic and industrial development in 2019. The locality expects to record a 9.5% growth in its gross regional domestic product (GRDP) this year, while GRDP per capita income is estimated at VND146.9 million (over US$6,350 at current exchange rate). Thanks to efforts made by local authorities, Binh Duong comes third nationwide in foreign investment attraction in 2019, with total foreign investment exceeding US$3.07 billion, up 50% year-on-year, and 119.57% against the target set for 2019.

Vietnam’s credit growth slows down amid strong GDP expansion

The Voice of Vietnam During the year, the Vietnamese central bank eased its monetary policy by cutting its policy rates and lowering the cap on deposit rates at banks, thus bringing down lending rates, especially on loans provided for priority sectors. Meanwhile, the country’s GDP grew 7.02%, topping 7% for a second consecutive year, indicating that the economic growth has become less reliant on credit. Vietnam’s economic growth continues to be driven by the resilient foreign sector and robust domestic consumption, a World Bank economist said at a recent press meeting in response to Hanoitimes’ question. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 03 January 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.

Vietnam’s top 10 economic events in 2019 (P.2)

Hanoitimes This part reviews outstanding internal and external economic events of Vietnam in the past year. Following Part One, Hanoitimes continues with Part Two of Vietnam’s top 10 economic events in 2019. 6. Illegal transshipment due to US – China trade war puts Vietnam at stake.

Vietnam enters 2020 with confidence

Nhan Dan The year 2019 has just come to a close with a complex and unpredictable international situation. Global economic and trade growth slowed while strategic competition and trade tensions intensified between major powers. Against such a backdrop, Vietnam has comprehensively fulfilled all the socio-economic targets thanks to the solidarity and aggressive efforts of the entire Party, people and armed forces.

Shophouse rentals skyrocket in downtown HCMC VnExpress

Vietnam’s top 10 economic events in 2019

Vietnam enters 2020 with confidence

Rents for shophouses in downtown Ho Chi Minh City have increased by 35 percent in 2019, according to real estate portal batdongsan.com.vn. However, shophouse prices in central District 1 have only increased by 10 percent it said in a report based on statistics compiled from online property floors.

In District 10 there has been a 13 percent increase in prices but 20 percent increase in rents in the last 12 months. Phu Nhuan, Tan Binh and Binh Thanh districts also saw a similar trend with rents increasing by 12-15 percent.

South Korean investors poured $7.92bn into Vietnam in 2019 Vietnam Insider According to the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment, a total $38.02 billion in FDI, a ten-year high, had come to Vietnam this year as at December 20, of which the amount from South Korea accounted for more than one-fifth. The total represented a year-on-year increase of 7.2 per cent and included newly-registered capital, additional capital to existing projects, and share purchases by foreign investors. Hong Kong (China) ranked second with $7.87 billion and Singapore third with $4.5 billion, followed by Japan and China. Hanoi absorbed the largest share of FDI, with $8.45 billion or 22.2 per cent of the total, followed by Ho Chi Minh City with $8.3 billion. Disbursement of FDI capital also reached a record $20.38 billion in 2019.

Developer of $2.2 billion Happyland entertainment complex face a massive fine

Vietnam Investment Review The Long An Department of Construction is considering issuing a fine to Phu An JSC due to violations in arbitrarily transferring land in the Happyland entertainment complex. Nguyen Van Hung, director of the department, told Tuoitrenews that the developer arbitrarily transferred land plots in the Happyland complex as construction took place without a licence. Previously in March, Phu An was detected to transfer 1,655 land plots with the total area of 27.4 hectares for VND959.7 billion to RRP Vietnam JSC. Then, RRP Vietnam transferred the land use right over these land plots to Minh Phu Long An Co., Ltd., which in turn transferred them to Viet Hung Phat Investment JSC. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 06 January 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.

Home ownership a pipe dream for Hanoi’s young professionals

Tuoi Tre News As more and more young people move to Hanoi to begin their lives in the big city, the idea of home ownership in the Vietnamese capital seems to be little more than a pipe dream amidst skyrocketing prices. Most property experts estimate the value of a modern apartment suitable for a young couple to be in the VND1.6 billion (US$69,000) range, though ‘suitable’ takes on completely different meanings, depending on who the buyer asks.

An aerial view of apartment buildings in Hanoi

High GDP growth lays solid foundation for future

The Voice of Vietnam The GDP growth rate of 7.02 percent newly announced by the General Statistics Office of Vietnam (GSO) exceeds the National Assembly’s target of between 6.6 and 6.8 percent. Economists noted the impressive growth is attributable to the country’s great efforts to boost economic development amid unfavorable economic developments around the world, especially US-China trade frictions.

High GDP growth lays solid foundation for future

Hanoi approves 12 public investment projects worth US$167 million Hanoitimes

The Hanoi People’s Council has approved 12 public investment projects worth VND3.89 trillion (US$167.62 million). The Hanoi People’s Committee is expected to request departments and units to supervise the implementation process of projects, ensure efficiency in using state capital and prevent losses during the construction process. The committee is responsible for creating favorable conditions for project investors to complete projects that meet requirements in quality and respective schedule, focusing on allocating sufficient funds in line with the progress of projects.

Economy lift to Vietnam from the US-China trade war may ease in 2020 Vietnam Insider The lift to Vietnam’s economy from the US-China trade war may ease in 2020, economists have cautioned, although cushions to a growth slowdown are still in play. The manufacturing boost from supply-chain shifts into Vietnam could yet narrow on capacity limits, as well as concern over possible backlash from the United States, according to a flash note by Citi analysts Ang Kai Wei and Johanna Chua. For instance, Vietnam has been pressed to crack down on “made in Vietnam” labelling violations.

Deputy PM calls for acceleration of key transport projects in 2020

Nhan Dan Online Deputy PM Trinh Dinh Dung has asked the Ministry of Transport (MOT) to focus its efforts on expediting the progress of major national transport infrastructure projects in 2020. Specifically he requested the MOT to work with the city governments concerned with accelerating urban rail projects, especially the Cat Linh-Ha Dong line in Hanoi. The Deputy PM also asked for a quick selection of investors for the eastern section of the North-South Expressway as well as a faster and more efficient process in the upgrade of Tan Son Nhat Airport and construction of Long Thanh Airport.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 08 January 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.

Real estate remains attractive for foreign investors

Vietnam Insider Real estate drew in $3.88 billion of registered FDI capital in 2019, ranking second after processing and manufacturing and accounting for 10.2 per cent of the total. The Vietnam News Agency quoted the Ministry of Construction as reporting that the real estate market last year developed Real estate remains attractive for rather stably in terms of supply, transaction numbers, prices, outstanding foreign investors credit, and foreign investment.

Owners of Cocobay Da Nang condotels propose solution to profit problem

Bizhub Many owners of units at the Cocobay Da Nang condotel project have proposed to convert profits owed by Thanh Do Company into land or houses at Cocobay, according to a statement from Thanh Do. At the Many owners of products at the end of November, Cocobay Da Nang announced that the company had Cocobay Da Nang condotel project terminated the payment of committed profits of up to 12 per cent each have proposed to convert their units in lieu of profits year signed with customers due to cashflow difficulties.

Gov’t inspectors to announce boundaries of Thu Thiem urban project before Tet

The Saigon Times The Government Inspectorate will announce the revised zoning boundaries of five adjacent quarters affected by the controversial Thu Thiem New Urban Area project in District 2, HCMC, ahead of the upcoming Lunar New Year, or Tet, holiday. The chief of the HCMC People’s Committee Office, Ha Phuoc Thang, revealed the timeline at a press briefing on the city’s socioeconomic performance for 2019 and its tasks for 2020, held in the city today, January 6, reported the news website Enternews.

Former Saigon state-owned firm leaders arrested for land violations

VnExpress Tran Cong Thien and Nguyen Van Minh, ex-leaders of a firm under the HCMC Party Committee’s Office, were arrested Monday for land-related violations. Thien, 55, former general director of the Tan Thuan Investment and Construction Company, and Minh, 63, former chairman of the company, are facing charges of violating regulations on the management and use of state-owned property that led to “losses or squander.” They are the first two individuals to be arrested following the investigation into the illicit transfer of a 32 hectare (80 acre) plot of public land in Nha Be District by the state-owned company to private property firm Quoc Cuong Gia Lai in June 2017.

Shares correct as blue-chips lose ground

Vietnam Investment Review Shares ended Monday morning on a negative note as many blue-chips lost ground and put pressure on the overall market. The benchmark VN-Index on the Ho Chi Minh Stock Exchange lost 0.37 per cent to close the morning trade at 961.54 points. The index inched down 0.16 per cent last Friday to finish last week at 965.14 points. More than 92.3 million shares were traded on the southern bourse, worth VND1.6 trillion (US$69.3 million). Declining stocks outnumbered gainers by 204 to 94, while 46 stocks ended flat.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 09 January 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.

Vietnam real estate market is driven by companies migrating away from China

Vietnam Insider Ken Research suggested that the Real Estate Market in Vietnam is growing and carries major potential in each of its sub segments. The government’s policies favoring the real estate market such as the Housing Law and the Law on Real Estate Business coupled with the dynamics of global trade causing companies to migrate away from China to Vietnam driven

by Vietnam’s low cost land and labor forces, will elevate Vietnam’s Real Estate Market to greater heights.

Long-term infrastructure investment

goals

requiring

Real estate aarket is driven by companies migrating away from China

sustained

Vietnam Investment Review Prime Minister Nguyen Xuan Phuc told last week’s meeting between the government and localities that in 2020, the government will boost construction of many major infrastructure projects such as the North-South Expressway, the Long Thanh International Airport, many highways nationwide, and facilities in the power, water, traffic, and urban development sectors.

Long-term infrastructure goals requiring sustained investment

Boosting economic growth – Vietnam’s key task in 2020

The Voice of Vietnam Vietnam will work hard during the early days of 2020 to achieve this year’s socio-economic tasks and the targets set for the 2016-2020 period in the Party resolution. Vietnam aims to continue to strengthen its macro-economy, control inflation, and increase the productivity, quality, efficiency, self-reliance, and competitiveness of the national economy. Vietnam plans to boost reform, fine-tune institutions, mobilize more resources, and improve its investment environment.

Japan weighs new forms of investment in Vietnam

Vietnam Economic News The Japan International Cooperation Agency (JICA) is pledging continued aid to wide ranging infrastructure and other projects in Vietnam, but is also expressing concern about the slow disbursement of funds it has already committed to projects that are underway. According to JICA, many new ODA projects on technical cooperation and non-refundable aid packages carried out by JICA have been signed and implemented smoothly. However, there was a delay in some projects signed in 2018 and the slow disbursement of capital in projects underway.

SBV keeps preferential interest rate for social housing unchanged

Vietnam Investment Review The commercial banks’ preferential interest rates will be remaining unchanged at 5 per cent for social housing this year, according to a decision of the State Bank of Viet Nam (SBV). Beneficiaries are investors in social housing projects and people eligible for housing loans under the Government’s Resolution No.02/ NQ-CP of January 7, 2013, buying social houses with an area of less than 70sq.m and selling price of under VND15 million (US$645) per square metre. This decision came into effect since January 1, this year. colliers.com/vietnam

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

Summary Information • Address: No. 17 VSIP II-A, Street No. 29, Vietnam – Singapore • Industrial Park II-A, Vinh Tan Commune, Tan Uyen Town, Binh Duong Province • Land Area: 20,940 sq. m • Land Tenure: Leasehold land with upfront payment of infrastructure use, expiring on 19 March 2058 (39 years remaining) • Legal Status:

> Land Lease Contract signed directly with the park developer

> LURC and Investment License has been issued

> Pre-payment for the entire lease term has been paid until 19

1 hr 28 mins driving

Mar 2058 • Land Sale Structure: Share transfer

Site Plan • It is irregular shaped and general level topography. All infrastructures were in place with completed road systems, sewerage systems

HCMC

and telecommunication systems. The site is accessible via Street No. 29.

> Adjacent to Huang Chou International Co., Ltd on the right

> Adjacent to Taejin Vietnam Co. Ltd. on the left

> Across from URC Vietnam Co. Ltd

INVESTMENT

HIGHLIGHTS

• Local entity set up and held 100% by offshore by a International private owner.

• Clean and clear asset and ready for acquisition.

• All infrastructure were in place with completed road systems, sewerage systems and telecommunication systems.

• Pre-payment for the entire lease term has been paid for the term which has a good 39 years left until 19/03/2058.

• In short supply from the industrial park developer.

All enquiries and requests in relation to this opportunity are to be directed to: Terry Alford Meir Tlebalde Director Investment Manager Mobile +84 837 197 184 Mobile +84 774 426 174 Main +848 3827 5665 Main +848 3827 5665 Terence.Alford@colliers.com Meir.Tlebalde@colliers.com colliers.com/vietnam

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

Daily Real Estate News Highlights Vietnam - 10 January 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 needs a new filter for better foreign investment inflow

Hanoitime Vietnam has so far also outlined primary strategies to lure high quality foreign investment until 2030 under a Politburo resolution. Experts have called on the Vietnamese government to set new standards to sort out Vietnam will prioritize projects with investment projects so as to ensure that foreign capital inflow into the environmentally-friendly technology country is truly qualified and environmentally friendly.

PM approves IT park establishment in Danang

Saigontimes The Danang Department of Information and Communications on January 7 announced that Prime Minister Nguyen Xuan Phuc had approved the Danang IT Park (DITP) project, which is expected to be modelled after the United States’ Silicon Valley. Located in Hoa Lien Commune, Hoa Vang District, Danang City, its first phase will cover 131 hectares. Construction of the concentrated IT park’s first phase has been completed. Trung Nam Group has applied for the city to approve the execution of the second phase.

An artist’s impression of Danang IT Park

Vietnam most promising Asian investment destination in 2020: Japanese survey

The Voice of Vietnam Vietnam has been tapped by Japanese firms as the most promising place in Asia to invest in 2020, with India and Southeast Asian countries dominating other top spots, Kyodo News cited a survey as showing on January 8. In the survey, conducted online from November to December 2019 by NNA Japan Co., a Kyodo News group company, Vietnam received 42.1 percent of the 820 valid responses, based on factors such as its potential as a growing market and large supply of skilled, low-cost labor.

Property Insight - the only in-depth and research - based informational channel in Vietnam Vietnam Investment Review

The programme is a new gateway for the local property market that is lacking a trusted, professional, and multi-dimensional news channel. As a source of practical, multi-dimensional, and professional information provided by leading specialists, the “Property Insight” programme, the first of its kind in Vietnam, is a source of formal, valuable, and up-to-date statistics and research for foreign investors to make inroads into the local real estate market as well as for individual homebuyers to make better-informed investment decisions.

Vietnam’s GDP to ease slightly in 2020 Vietnamnet Vietnam’s GDP growth would reach 6.8 per cent from the 7.02 per cent posted in 2019, mainly due to a slowdown in the industrial sector, analysts from Fitch Solutions forecast. “Transport and logistical infrastructure and human capital bottlenecks will continue to weigh on the sector’s growth, which accounts for around 16.5 per cent of the Vietnamese economy,” Fitch said. The US-China trade war has accelerated a structural shift in low-end electronics and textiles manufacturing out of China and into ASEAN, with Vietnam being a major beneficiary. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 13 January 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.

No bubble but land prices might increase: ministry

Vietnam Investment Review While there are few signs of the real estate bubble bursting in 2020, the Ministry of Construction said that land prices could increase in some areas. Those areas included planned special economic zones and new urban areas with developed technical and social infrastructure. This was a normal market reaction, the ministry said.

Phuc Khang hands over more Diamond Lotus Riverside apartments

Land prices are forecast to increase in areas with developed technical and social infrastructure

Vietnam Investment Review Local developer the Phuc Khang Corporation has announced the handover of its first apartments to home buyers at Block C of the Diamond Lotus Riverside complex project in Ho Chi Minh City’s District 8, which has been developed by Phuc Khang Mitsubishi Corporation Holding (PKMC), a joint venture between Phuc Khang and the Mitsubishi Corporation.

Phuc Khang hands over more Diamond Lotus Riverside apartments

Strong growth in Vietnam to continue: Capital Economics The Voice of Vietnam Gareth Leather, a senior economist with the London-based independent economics research house, said in the latest Emerging Asia Economics report that Vietnam grew by a robust 7% in 2019, the second consecutive year of 7%-plus growth as he cited figures released by the General Statistics Office of Vietnam. Despite the weakness of global growth over the past year, Leather said Vietnam’s exports have continued to expand at a decent rate. “While low labor costs, political stability and its close integration into the supply chains of southern China explain some of Vietnam’s export success, the country has also emerged as one of the main beneficiaries of the U.S.-China trade war,” he stressed.

Vietnam prioritizes quality in foreign investment Vietnam Insider The message was delivered by Minister of Planning and Investment Nguyen Chi Dung at the Vietnam Business Forum (VBF) in Ha Noi on Friday. Appreciating the contributions made by foreign direct investment (FDI), he said: “FDI is again a bright spot. For the first time, disbursed capital of FDI projects reached US$20.4 billion in 2019.” He added last year the total registered capital reached more than $38 billion, the highest in the last 10 years. Dung told the forum: “Vietnam will continue to select quality FDI projects with high value-added content, high technology and innovation to help the country enter the global value chain faster.”

Mobile phone retailer Vien Thong A shuts up shop

VnExpress Vien Thong A, one of Vietnam’s earliest mobile phone retail chains, has shut down all outlets after two decades of operation. All its Ho Chi Minh City shops were closed as of Thursday, some featuring “property for lease” signs while others held nothing but empty shelves. Vien Thong A, established in November 1997, operated 240 outlets nationwide at its peak, some inside supermarkets like Big C, alongside 100 maintenance stations.

colliers.com/vietnam

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

Summary Information • Project Area: 4,354,888 sq. m • Land Tenure: New LURC on acquisition • Legal Status:

> Dong Nai Government’s approval on Project Proposal

> 1/5000 and 1/2000 Masterplan

> Land Lease Contract signed directly with Dong Nai

1 hr 33 mins driving

Government • Project Status: Vacant land for cultivation of perennial trees > No compensation for public land

> Crop compensation is required for the local residents &

organizations

Project Masterplan

All enquiries and requests in relation to this opportunity are to be directed to: Terry Alford Meir Tlebalde Director Investment Manager Mobile +84 837 197 184 Mobile +84 774 426 174 Main +848 3827 5665 Main +848 3827 5665 Terence.Alford@colliers.com Meir.Tlebalde@colliers.com colliers.com/vietnam

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

Daily Real Estate News Highlights Vietnam - 15 January 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.

Vietnamese thumbs-up

infrastructure

policy

earns

investors’

Hanoi Times Prime Minister Nguyen Xuan Phuc told a recent meeting between the government and localities that in 2020, the government will boost construction of many major infrastructure projects such as North-South Expressway, Long Thanh International Airport, a number of highways nationwide, and facilities in the power, water, traffic, and urban development sectors.

Vietnamese infrastructure policy earns investors’ thumbs-up

Foreign investors hope for consistent economic policies in Vietnam

Vietnam Investment Review Speaking on the sidelines of the annual Vietnam Business Forum in Hanoi on January 10, Amanda Rasmussen, Chairwoman of the American Foreign investors hope for consistChamber of Commerce (AmCham), said Vietnam has maintained its ent economic policies in Vietnam position as one of the fastest-growing import markets of the US, and vice versa.

A lot of pressure for inflation control in 2020

Bizhub Managing prices and inflation would be more complex and difficult this year, experts have said. The fluctuating price of pork last year had significant impacts on the market, as the price plummeted in the first half of the year then soared in the second half. Prices of pork products are currently very high with the live pig price ranging between VND80,000 - 90,000 per kilogramme and pork at VND160,000 - 180,000 per kilogramme.

The greening of Vietnam’s construction industry

Vietnam Economic News More than 50 Vietnamese firms were recently honored in Hanoi for innovative practices in the promotion of non-fired building materials (NFBMs), an important type of environmentally friendly and green building product.The event by the 2019 Building Material Forum (BMF2019) was designed to encourage best practices in changing awareness of the importance of producing and using non-fired building materials and contributing to Vietnam’s sustainable development and climate change targets.

Air pollution could rip 5 pct off Vietnam GDP

VnExpress Hazardous air quality may cause damages worth 5 percent to Vietnam’s GDP as foreign investors lower funding, heard the Vietnam Business Forum. “Prolonged air pollution will lower foreign companies’ investment in Vietnam,” Miura Nobufumi, chairman of Japanese Chamber of Commerce and Industry (JCCI) in Vietnam, told the forum on Friday. Lower investment would lead to slower economic growth in the country.

Water pollution is another major concern among overseas investors, with industrial and private discharge increasing river pollution beyond the national safety limit, he stressed. The Vietnamese government should standardize and tighten environmental regulations as a matter of urgency, with Japan willing to provide technical assistance, it was added. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 16 January 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.

Vietnam sets 5 priorities during its ASEAN Chairmanship

Hanoitimes January 1, 2020 marks Vietnam’s official assumption of its ASEAN Chairmanship 2020. As both the ASEAN Chair for 2020 and a non-permanent member of the United Nations Security Council for 2020 – 2021, Vietnam is standing before numerous opportunities to showcase Vietnam sets 5 priorities during its ASEAN Chairmanship its role in the region and the world. Deputy Prime Minister and Minister of Foreign Affairs Pham Binh Minh has listed five priorities to realize the Cohesive and Responsive theme during Vietnam’s ASEAN Chairmanship 2020.

Real estate credit under control

Saigontimes Outstanding loans for the real estate sector grew by 8.8% last year, below the banking sector’s credit growth of 13.7%, said Nguyen Quoc Hung, director of the Credit Department of the State Bank of Vietnam. Loans have been provided to appropriate projects. Banks did not hesitate to pour capital into projects that had been appraised carefully, Hung added.

Real estate credit under control

Former Da Nang chairmen jailed over violations in state asset, land management

Tuoitrenews Two former chairmen of the central Vietnamese city of Da Nang have been handed jail terms totalling 29 years for serious violations in the management of state-owned assets and land. The Hanoi People’s Court on Monday tried Tran Van Minh, Van Huu Chien, Phan Van Anh Vu, and 18 other defendants. According to the indictment, Vu took advantage of his close relationship with local leaders and officials, who were authorized to make decisions in the assignment and transfer of public real estate, to claim most of the properties without having to join a bidding process as per regulations.

Vietnam, Japan look to stronger investment links

The Voice of Vietnam The strategic partnership between Vietnam and Japan has been developing strongly in recent years with Japan currently being Vietnam’s largest ODA provider and the second largest foreign investor, said Deputy Prime Minister Vuong Dinh Hue at the Vietnam-Japan trade and investment promotion conference in the central city of Da Nang on January 13. The Deputy PM emphasised that Japan also represents the third largest tourism partner and fourth largest trade partner of Vietnam, noting that the nation is currently compiling a document to submit to the National Party Congresss in 2021 that focuses on the socio-economic development strategy between 2021 and 2030 with a vision for 2045.

Current policies still leave small and medium enterprises thirsting for capital

Vietnam Economic News According to the State Bank of Vietnam (SBV), as of October 4, credit grew 8.95 percent compared to the beginning of the year, reaching more than VND7,850 trillion. The banks continued pouring capital into priority areas, including small and medium enterprises (SMEs). Speaking at a recent SBV seminar on enhancing access to bank credit, Nguyen Quoc Hung, Director of the SBV’s Credit Department said that as of September 30, 2019, the credit balance for SMEs reached almost VND1,476 trillion, up 12.9 percent compared to the end of 2018, with 196,689 customers with outstanding loans. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 17 January 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.

Vietnam recorded a trade surplus of $11.12 billion in 2019

Vietnam Insider Vietnam recorded a trade surplus of $11.12 billion last year, widening from a surplus of $6.8 billion in 2018, customs data released on Monday showed, with smartphones, garments and electronic home appliances among the largest export earners.

Vingroup suspends airline project

Hanoitimes Vingroup’s investment in the aviation industry could lead to a surplus in supply, while the group needs to focus its resources on the industrial and technology businesses. Vietnam’s largest private conglomerate Vingroup on January 14 announced its decision to withdraw from the aviation market and suspend the project of setting up Vinpearl Air.

Tra Vinh draws over VND205 trillion worth of investment

Vietnam recorded a trade surplus of $11.12 billion in 2019

Vingroup suspends airline project

Nhan Dan Online Domestic and foreign investors have signed a memoranda of understanding on 19 investment projects worth over VND205 trillion (US$8.84 billion) in the Mekong Delta province of Tra Vinh at an investment promotion conference held by the province on January 15. At the event, the provincial People’s Committee also granted investment certificates for five projects worth more than VND5.3 trillion. Addressing the event, Prime Minister Nguyen Xuan Phuc said Tra Vinh has gained strong economic developments over recent years, especially in regards to calling for investment, which will inspire the Mekong Delta to develop high-tech agriculture.

Trade between Vietnam and China reaches new landmarks The Voice Of Vietnam

Import-export turnover between Vietnam and China continued to hit new heights in 2019 by reaching a milestone of approximately US$117 billion. According to statistics released by the General Department of Vietnam Customs, the country’s total import and export value last year underwent a surge of 7.6 per cent to US$517.26 billion in comparison to the figures from 2018. Of the total, the value of export commodities stood at an estimated US$264.19 billion, an increase of 8.4 per cent, while imports came to US$253.07 billion, up 6.8 per cent from 2018. With these figures, the nation’s import-export scale saw robust growth with US$36.69 billion, much lower than the level of US$52.44 billion achieved in 2018.

Masan Group to shutter hundreds of Vinmart stores Inside Retail Asia

Vietnam consumer-goods company Masan Group says it plans to shut down hundreds of VinMart and VinMart+ stores it purchased from VinGroup last year. The company said they will open 10-30 new Vinmart supermarkets and close 100-300 Vinmart+ stores this year to focus on improving profitability of existing locations instead of following the program of massive expansion followed by the previous owner. Masan will shift its focus to supermarkets of less than 1500 sqm that bring the best revenue, cut inefficient supermarkets in Hanoi, Ho Chi Minh City, Nha Trang and Can Tho and expand into tier 2 cities and within Vincom shopping centres.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 20 January 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.

Connectivity is key to Vietnam’s deeper integration

The Voice of Vietnam Developing quality connective infrastructure and logistics is crucial to lower trade costs and boost Vietnam’s further integration in both global and domestic markets. This will require a new approach to planning and additional investments in strategic connective assets, according to a new World Bank report.

Illustrative image

Starbucks, Coffee Bean, and Tea Leaf losing to Vietnamese chains

Vietnam Investment Review In Vietnam, the five biggest coffee chains account for 15.3 per cent of the market share, of which, Highlands Coffee holds 7.2 per cent, while Starbucks, the second in revenue according to Euromonitor, has less than 3 per cent, showing that foreign players are losing to Vietnamese chains.

Also, the market is a fierce battlefield for cafe chains.

Air-pollution costs Vietnam US$13.6 billion a year

Of all foreign players, only Starbucks managed to make it into the Top 5 in Vietnam

Hanoitimes Vietnam’s economic cost due to air pollution amounts to between $10.82 billion and $13.63 billion per year, VnExpress quoted a study by the National Economics University Hanoi as saying. At a conference on January 14, Associate Professor Dinh Duc Truong, head of the National Economics University’s Department of Environment, Climate Change and Urban Studies, said that the damage caused by air pollution to Vietnam equals to 4.45 – 5.64% of its GDP annually. Truong noted economic losses caused by air pollution could be quantified as tangible and intangible.

Phu Tho province to attract investment into new IPs Vietnam Economic News

The northern midland province of Phu Tho plans to build three more industrial park (IPs) with a total area of 750ha this year, according to the Phu Tho Industrial Parks Management Board. Phu Tho is now home to four operational IPs including Thuy Van, Trung Ha, Cam Khe and Phu Ha. Spanning a total area of nearly 2,000ha, the parks have to date attracted 175 foreign-invested projects, and 134 of them are already operational. The Trung Ha IP has reported full land occupancy with 14 foreign-invested projects capitalised at 162.6 million USD, while the Thuy Van IP has 96 percent land occupancy with 97 domestically and foreign-financed projects valued at 787 milllion USD. Flurry of activity upcoming in M&A The Voice of Vietnam

Driven by strong economic growth prospects and potential for state-owned enterprise equitisation, more Singaporean investment is expected to flow via mergers and acquisitions (M&A) in the months to come in Vietnam, focusing on finance, property, and fintech. According to a source from Ingrid International, which is active in Singapore, China, Vietnam, Japan, and Indonesia in design branding and investment, its Singaporean client is seeking to expand to Vietnam by acquiring a stake in a Vietnamese firm. “The client is looking for stake acquisition in wastewater, and is monitoring the situation,” said the representative. colliers.com/vietnam

BAU BANG DEVELOPMENT LAND Bau Bang IP, Binh Duong Province

Summary Information • Land Area: 130,894 sq. m • Land Tenure: Leasehold land with upfront payment of infrastructure use, expiring on 30 June 2057 (38 years remaining) • Legal Status:

> Land Lease Contract signed directly with the park developer

> LURC and Investment License has been issued

> Majority Pre-payment for the entire lease term has been

paid • Land Rental: An additional rental of US$0.2/sq. m/year will be paid annually. This portion will be reviewed every 5 years with the increase margin of no more than 20% of the previous 5-year period.

• Sale Structure: Share transfer 1hr 40 mins Drive

Site Plan • It is irregular shaped and general level topography. All infrastructures were in place with completed road systems, sewerage systems and telecommunication systems. The site has 3 street frontages and is accessible via Street N5 (25m widen), Internal street D5 (25m widen) and street D4 (25m widen).

> Approx. 470 meters on Street N5

> Approx. 397 meters on Street D5

> Approx. 200 meters on Street D4

INVESTMENT

HIGHLIGHTS

International private owner with local entity Clean and clear company and ready for acquisition Completed infrastructure Land Rental 100% paid up until 30/06/2057 Reasonable price In short supply from the industrial park developer $1.5M tax deductible through depreciation (over last 10 years) colliers.com/vietnam

HCMC All enquiries and requests in relation to this opportunity are to be directed to: Terry Alford Director Mobile +84 837 197 184 Main +848 3827 5665 Terence.Alford@colliers.com Meir Tlebalde Investment Manager Mobile +84 774 426 174 Main +848 3827 5665 Meir.Tlebalde@colliers.com

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

Daily Real Estate News Highlights Vietnam - 21 January 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.

New IHG hotels openings

Vietnam Economic News IHG (InterContinental Hotels Group) is expanding their luxury and boutique portfolio, including properties from InterContinental, Kimpton, Regent and Hotel Indigo, with exciting new openings in 2020. From Asia to Europe and the Americas, IHG will be extending its global footprint. Among 7 hotels IHG will open in Asia in 2020, there is Regent Phu Quoc Hotel (opening date: Q4 2020). Set by the waterfront, Regent Phu Quoc stands in Bai Truong’s Phu Quoc Marina (Vietnam), and will offer 400 hotel rooms and private residences, all with sea views.

Regent Phu Quoc Hotel

Vingroup shelves plans to launch Vinpearl Air

Vietnam Economic Times Vietnamese conglomerate Vingroup announced on January 14 that it will not proceed with its plans to launch Vinpearl Air. It has decided to withdraw from the aviation transport services sector and will focus instead on technology development and industrial production. Vinpearl Air was to launch this summer, with plans to grow to a fleet of 30 aircraft by 2024. According to plans submitted to authorities, the carrier was to have total investment of VND4.7 trillion ($203.6 million), of which equity was VND1.3 trillion ($56.3 million), and be based at Noi Bai International Airport in Hanoi.

Vingroup

US senators congratulate Vietnam on assuming ASEAN Chairmanship Vietnam Investment Review Some US senators on January 15 congratulated Vietnam on assuming the Chairmanship of the Association of Southeast Asian Nations (ASEAN), an important multilateral organisation for advancing a free and open Indo-Pacific. The senators comprise Jim Risch and Cory Gardner from the Republican Party, Bob Menendez from the Democratic Party, who is also Chairman and a ranking member of the Senate’s Foreign Relations Committee, and Ed Markey, also from the Democratic Party, Chairman and a ranking member of the Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy.

Vietnam’s Conglomerate Vingroup officially opens its university Vietnam Insider Vietnam’s Deputy Prime Minister Vu Duc Dam spoke at the ceremony that investment in science and education is a vision for every nation. Vietnam News Agency reports. “In recent years, all economic sectors are encouraged to invest in education and science. Private universities make up 25 per cent of the country’s total facilities. In particular, a number of successful businesses in the field of manufacturing and others have spent resources to invest in education, university training and scientific research, including Vingroup,” said Deputy Prime Minister. He also hoped that, Vietnam will have more and more organizations and individuals investing in education and science. It is not only good for us, or our own business, but also a social responsibility, the future of the country.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 31 January 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.

Barriers keep foreign investors away from Vietnam’s high-tech parks

Hanoi Times High-tech parks in Vietnam have remained less attractive to foreign tech firms as they are operating like industrial parks rather than sci-tech hubs while factory rental cost is much higher. He suggested local authorities enhance coordination with ministries and other localities in the Mekong Delta for further stronger growth.

Hoa Lac High-tech Park lured no foreign-invested project last year.

Vietnam is not like most investment destinations these days?

Vietnam Insider Most listed companies have a legal limit of 25% foreign ownership.

Non-Vietnamese can’t trade directly on the Ho Chi Minh City Stock Vietnam is not like most investment Exchange, so they have to pay fat commissions to local brokers. in a recent destinations these days? global science exam), and works for about a third of China’s wages.

World News in Brief: January 29

Nhan Dan Cambodia’s economy is projected to remain robust in 2020 despite stronger external headwinds, the Singapore-based ASEAN+3 Macroeconomic Research Office (AMRO) said in a press release on Wednesday (January 29). Real GDP (gross domestic product) growth is forecast to moderate to a more sustainable rate of 7.1 percent in 2019 and 2020, supported by robust construction activities, strong domestic credit growth, and buoyant domestic demand.

Fighting against nCoV like fighting against enemies: PM Vietnam News

In the face of complex developments of the acute respiratory disease caused by the novel coronavirus (nCoV), Prime Minister Nguyen Xuan Phuc chaired an urgent meeting with officials of relevant ministries and sectors in Ha Noi on January 27 to discuss countermeasures. The Government leader pointed out that Viet Nam faces high risks of being affected by this dangerous and rapidly spreading disease, against which there hasn’t been a vaccine, since it is a popular destination of Chinese tourists and shares a long borderline with China. “Fighting the nCoV-caused disease is like fighting enemies,” PM Phúc said, urging the political system across the 63 provincial-level localities to promptly take actions.

Ample opportunities for infrastructure investors The Voice Of Vietnam

In 2019, the Ministry of Transport (MoT) began construction on a number of important ventures after preparations were sped up and financial sources ensured. They include the two subprojects of the Eastern Cluster of the North-South Expressway using public investment during 2017-2020.

This year, the ministry plans to kick off 18 transport projects with the total investment capital of around VND92.38 trillion ($4 million). They will include the aforementioned expressway project, and railway schemes subject to VND15 trillion ($652 million) worth of 2016-2020 public investment, as well as Terminal 3 of Tan Son Nhat International Airport. colliers.com/vietnam

COLLIERS INTERNATIONAL

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

For market research reports, please visit our website at www.colliers.com This document has been prepared by Colliers International for advertising and general information only. Colliers International 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 International 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 International and/or its licensor(s). All material are sourced and collated in this document by Colliers is from the public domain. Š2019. All rights reserved. vietnam.media@colliers.com