Monthly Real Estate News I July 2022 by Vietnam Realty

Vietnam Monthly Real Estate News July 2022

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

Colliers News Effectively exploit the land bank around the belts in Hanoi and Ho Chi Minh City www.baodautu.vn According to Mr. David Jackson, CEO of Colliers Vietnam, in order to maximize the economic and social benefits from developing ring road projects, specific taxes can be applied in areas where real estate prices are high to financially support ring road projects, support further infrastructure development along these roads, or compensate people in affected areas. Incentives can also be used to encourage investment in public infrastructure development on new sites. But infrastructure development is not only the construction of roads, but also telecommunications, freight railways, energy projects and associated pipelines, to ensure a systematic and comprehensive and sustainable development.

Tan Van intersection belongs to Ring Road 3 project, Ho Chi Minh City is located in the Thu Duc city.

Implement fiscal policies to support economic recovery and development www.diendandoanhnghiep.vn

The Ministry of Finance has actively expedited the implementation of Resolution 43/2022/QH15 on fiscal and monetary policies to support the economic recovery and development program. The solutions related to revenue policies have contributed to supporting and removing difficulties for people and businesses.

Fiscal policies have actively supported enterprises.

Ho Chi Minh City wants to build a 6 billion USD seaport in Can Gio www.vnexpress.net A 6 billion USD project of international transshipment port with a throughput capacity of nearly three times higher than existing Cat Lai port is proposed to be built in Can Gio district.

Ho Chi Minh City calls for EU investment in nearly 200 projects www.vietnamnet.vn Ho Chi Minh City is calling for investment into 197 projects in ten key areas, an official told the Vietnam-Europe Business Forum in the southern largest economic hub on June 30.

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Colliers News

Real estate market is expected to prosper in the last 6 months of the year www.kinhtechungkhoan.vn According to Mr David Jackson, CEO of Colliers Vietnam, one of the main reasons why the real estate market has slowed down recently was that people's incomes have been greatly affected by the COVID-19 pandemic. Not only that, the apartment market has lost a large number of customers because apartment prices were rising too high compared to people's incomes.

Mr. David M. Jackson Chief Executive Officer Colliers Vietnam

The world is impressed with Vietnam's economic growth www.laodong.vn The press and some international organizations such as Bloomberg, Jordan Times, Lianhe Zaobao had many articles expressing their impression of Vietnam's economic growth in the second-quarter of 2022.

Vietnam's import and export increased sharply in the second quarter of 2022.

Ho Chi Minh City’s Ring Road 3 will start construction on June 2023, complete in 2026 www.thesaigontimes.vn By the end of 2022, the ground of the ring road 3 in Ho Chi Minh City will be handed over at least 70% according to the plan. The project will be started in June 2023, fully completed in 2026.

The Ministry of Construction will publish information on housing and real estate market quarterly www.thesaigontimes.vn Deputy Prime Minister Le Van Thanh has just signed and promulgated Decree No. 44/2022/ND-CP on building, managing and using a unified information system on housing and real estate market nationwide. According to this decree, the Ministry of Construction will publish information on housing and real estate market quarterly and annually. Accordingly, the information system on housing and real estate market includes a database on housing and real estate market; information technology infrastructure for housing and real estate market; software system for management, operation and exploitation of information about housing and real estate market.

colliers.com/en-vn

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

Colliers News

Lack of luxury apartments in the new financial commercial center of the capital www.baophapluat.vn The western area of Hanoi has experienced remarkable development in both infrastructure and social security for many years. Especially, Ha Dong district is becoming the new financial - economic center of the capital. Data from a market research firm shows that the western area of Hanoi continuously occupies a position compared to the eastern and northeastern regions. Colliers Vietnam's 2021 report notes that "buyers in the western area of Hanoi are paying special attention to high-end apartment projects".

Mr. David M. Jackson Chief Executive Officer Colliers Vietnam

Tan Son Nhat to be part of airport urban development project www.vietnamnet.vn Considered as one of the most important locations in Ho Chi Minh city, Tan Son Nhat Airport is aimed to develop into an urban area with commercial and service streets associated with transportation. According to the development plan to 2030, the airport will still be the main traffic hub of Vietnam and will welcome 50 million passengers per year.

Tan Son Nhat International Airport in Ho Chi Minh City, Vietnam.

Binh Dinh attracts over VND10 trillion in new investments in Jan-June www.thesaigontimes.vn The central coastal province of Binh Dinh attracted over VND10.5 trillion in new investments between January and June, according to the provincial Department of Planning and Investment. Some VND8.1 trillion was pledged to 38 new projects, while eight operational projects revised up their capital by over VND2.4 trillion. Among the new projects, 29 will be developed in the economic and industrial zones, focusing on the industrial, commercial, service, tourism and real estate fields.

The increasing capital of old FDI investors is beyond that of new business www.thesaigontimes.vn According to information from the Foreign Investment Agency, the total newly registered capital in the first six months of this year was 4.94 billion USD, while the total capital invested by enterprises was nearly 6.82 billion USD. In general, the total newly registered capital, adjusted and contributed capital to buy shares, buy capital contributions from foreign investors reached over 14.03 billion USD, down 8.9% over the same period.

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Colliers News Owning an apartment with a term: It needs to balance interests for long-term goals www.thoibaonganhang.vn Mr. David Jackson - CEO of Colliers in Vietnam shared "The application of the apartment ownership term also helps to solve difficulties in urban management and development. Like other types of housing, the quality of the apartment building's construction gradually decreases as it nears the end of its useful life, which is determined by the design life and actual age, affecting the safety of life and property of the occupants. The application of the apartment ownership term means there will be more opportunities for redevelopment or change of land use purpose when the term ends, thereby it better serves future social needs. This also creates opportunities to access to housing for the next generation, as land is a finite resource and its use is not only for economic development but also for improving human well-being.”

Mr. David M. Jackson Chief Executive Officer Colliers Vietnam

Electronics giants leading foreign investment bounce www.vir.com.vn

VEIA reported that Apple has moved 11 factories from Chinese businesses in the supply chain to Vietnam, while Foxconn, Luxshare, Pegatron, and Wistron are ramping up production capacity in Vietnam. With billions of US dollars worth of high-quality investment committed, Vietnam is set to elevate itself to value chains, becoming a key manufacturing hub in the region.

FDI flows in the first half during 2017 - 2022

The Ministry of Finance explains why insurance companies are not allowed to invest in real estate www.zingnews.vn According to the Ministry of Finance, the real estate business is a high-risk field. Hence, the ban on insurance businesses investing in it is to ensure the ability to pay benefits for policyholders. This is the sharing of Deputy Finance Minister Nguyen Duc Chi at the meeting to announce the Laws passed by the National Assembly at the 3rd session, including the Law on Insurance Business (amended).

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Colliers News The retail space is "hot" again, the price is silently increasing www.tapchitaichinh.vn The ambition to dominate the market of the "big guys", along with the entry of a series of new international brands are blowing heat into the Vietnamese retail space market. Experts said that this was the right time for businesses to "put money" for new lease before the "price storm" hits. Similarly, according to Colliers Vietnam, retail chains are expanding strongly. Prime locations on major roads in the central area of Hanoi and business, store transfer are always sought by brands who are willing to pay reasonable investment costs to own, in order to anticipate the increasing demand on shopping after the pandemic.

The retail space is "hot" again, the price is silently increasing

The bridge connecting Ba Ria - Vung Tau with Dong Nai started construction in September www.vnexpress.net

Phuoc An Bridge across the Thi Vai River, connecting Ba Ria - Vung Tau and Dong Nai will start construction in September, costing more than 4,879 billion VND, expected to be completed after 5 years. The project has a total length of more than 4.3 km with 6 lanes and roads and roads connecting to Phuoc An port. Funding for the construction of the bridge from the budget capital of Ba Ria - Vung Tau province is 2,879 billion VND and the central support is about 2,000 billion VND, approved by the Prime Minister for capital allocation.

Expected location to build Phuoc An bridge

HCMC wants to build the Cat Lai bridge across District 7 www.thanhnien.vn Cutting Nguyen Luong Bang and Huynh Tan Phat roads, crossing the river to connect with Dong Nai province is the most suitable choice among 5 options for building a bridge to replace the Cat Lai ferry.

HCMC needs nearly 957,000 billion VND for housing development by 2030 www.plo.vn Ho Chi Minh City Department of Construction has submitted a report to the City People's Committee about the Draft Housing Development Program in HCMC for the period of 2021 - 2030. According to the draft, the expected capital for housing development in Ho Chi Minh City by 2025 is nearly 567 trillion VND.

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Xiaomi plans to move production to Vietnam www.vietnaminsider.vn

GlobalTimes reported that Chinese smartphone maker Xiaomi recently delivered the first batch of products made in Vietnam. This is a clear attempt to increase delivery efficiency in Southeast Asian markets and reduce logistics costs, the company said. Xiaomi handsets made in Vietnam will be distributed domestically as well as to other Southeast Asian countries, including Malaysia and Thailand. Citing domestic media sources, Xiaomi is working with Chinese electronics manufacturer DBG Technology, which operates a 200,000-square-meter factory in Thai Nguyen, Vietnam.

Xiaomi plans to move production to Vietnam

Proceed to cancel the winning result of Thu Thiem land auction www.thanhnien.vn

The authorities have proposed that the People's Committee of Ho Chi Minh City cancel the winning results of the Thu Thiem land auction of the two businesses for not paying within 180 days.

Proceed to cancel the winning result of Thu Thiem land auction

Hanoi 'finalizes' not to build ten 50-floor buildings on 'golden land' www.vietnamnet.vn Vice-Chairman of Hanoi People's Committee finalizes not to build ten 50-storey buildings in Giang Vo land (Ba Dinh Dist.) but adjust the function of the land as a commercial center, hotel, office. “According to the assessment of the City People's Committee, the adjustment of ten 50-storey buildings to function as commercial centers, hotels, offices ... is very appropriate. On that basis, the city will speed up the project, avoid legal problems to delay the project, waste land fund "- Mr. Tuan emphasized.

Real estate market 'contemplates' until the end of this year www.thesaigontimes.vn The real estate market in the first 6 months of 2022 was recorded with low liquidity and very limited supply. Looking to the last 6 months of the year, the continuous adjustment of tax and credit policies in this field caused the market to fall into a state of "hesitancy". But regardless of the above factors, the housing and apartment price index still maintains a strong upward momentum, according to market research reports. It can be seen that the actual movements from the beginning of the year plus the new moves of policies towards controlling real estate finance make the market's acceleration momentum not much. Research units have released semi-annual reports for this market but the general situation is still afraid of changes and has not given any clear trend other than that the price will continue to increase.

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Colliers News Commercial leasing in industrial zones increased sharply www.thuonghieucongluan.vn According to Colliers Vietnam, in Q1, industrial land rental rate in Ho Chi Minh City alone reached an average of USD 190 per m2 for the whole cycle, the occupancy rate reached 90%. The annual rental growth rate of the industrial capitals in the South has always reached 8-9% per year in the past few years. Ho Chi Minh City has many industrial parks that are running out of land for lease, which also promotes industrial capitals as satellite areas such as Binh Duong, Long An, and Dong Nai to become hot spots to attract investors. According to Colliers, industrial real estate groups including factories, warehouses, and logistics all have high growth potential in 2022 thanks to fast-growing e-commerce in big cities.

The occupancy rate of industrial parks across the country in the past half year has increased sharply.

Removing obstructions on the "backbone" North-South Expressway www.thanhnien.vn To operate the project in 2025, VN Government approved many specific mechanisms, helping Ministry of Transport and localities speed up processes and be able to start construction by the end of 2022. It is expected that by the end of 2025, the North - South backbone circuit by highway will be connected along the length of the country, from Lang Son to Cape Ca Mau.

Trung Luong - My Thuan Expressway (Tien Giang) belongs to the North - South expressway project

Hau Giang: Approve the investor of a new urban area project costing more than 1 trillion VND www.laodong.vn The Provincial People's Committee has just approved the investor to implement the Nga Bay 3 New Urban Area Project, with a total investment of more than 1 trillion VND. Specifically, Vice Chairman of Hau Giang Province - Nguyen Van Hoa signed on behalf of the Provincial President Decision No. 1257/QD-UBND on approving investors to implement the Nga Bay 3 New Urban Area Project (Nga Bay city), invested by Cat Tuong Real Estate Group Joint Stock Company.

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Thailand’s Central Retail keen on $830mn investment in Vietnam in five years www.tuoitre.vn Thai retailer Central Retail Corporation has reiterated a five-year plan to invest 30 billion baht (US$830.4 million) in expanding its business in Vietnam. From now to 2026, Central Retail Vietnam will use the fund to develop its omnichannel platform in the food sector and build more shopping centers in Vietnam, with a target to achieve 100 billion baht ($2.77 billion) in revenue. With the fresh capital, revenue contribution by the omnichannel platform to the total is expected to double to 15 percent.

People shop at a Central Retail supermarket in Ho Chi Minh City

HCMC to start 3 infrastructure projects to reduce traffic jams at the gateway to Tan Son Nhat airport www.laodong.vn These are a branch of Tran Quoc Hoan-Cong Hoa intersecting T3 Terminal, an expansion of Hoang Hoa Tham St. and a renovation of Cong Hoa St. All projects are started in October and November this year.

Hoang Hoa Tham street (Tan Binh district)

Authorize districts to grant construction permits for social housing www.thanhnien.vn HCMC Department of Construction suggested authorizing construction permits to districts - one of the efforts to tackle the challenge of social housing development. Expected authorization to carry out procedures including: Compensation for site clearance, approval of investment policy, construction permit... In addition, the city also reformed administrative procedures, making it transparent and clear in the process of handling social housing project documents at departments and agencies and minimizing the time to carry out the procedures in construction investment projects.

HSBC: Vietnam is in the top fastest-growing in the region this year www.zingnews.vn HSBC Global Research believes that Vietnam is on a steady recovery, looking to the prospect that the second half of this year Vietnam will have a leading growth rate in the region. Among them, one of the most important drivers is the increasing level of FDI attraction in Vietnam. Up to now, Vietnam is one of the two most prominent members in ASEAN in terms of FDI to GDP ratio. On the other hand, the full reopening from mid-March also plays an important role in the recovery of the service industry.

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Colliers News The market fluctuates, which products still attract customers? www.reatimes.vn Mr. David Jackson - CEO of Colliers Vietnam also assessed that the important driving force of the real estate market at the moment was the development of the infrastructure system. In the long term, it was expected that nearly VND 114,000 bil of the economic stimulus package would be invested in infrastructure projects that would be an important driving force for all real estate segments with additional conditions. favorable for development. In big cities, the completion of typical projects such as Thu Thiem 2 bridge in Ho Chi Minh City would have great significance in connecting, promoting real estate potential and creating new vitality in the process of economic recovery. Currently, many projects of highways, ring roads, etc. continued to be developed, which was a vivid manifestation of the process of economic activities gaining more and more dynamic recovery momentum as well as an important pillar for the real estate segment.

Mr. David M. Jackson Chief Executive Officer Colliers Vietnam

Real estate industry covered 26% of bond market in H1 2022 www.vnexpress.net

According to Vietnam Bond Association (VBMA), real estate companies issued the second most bonds on stock market in H1 2022, valuing 42,600 billion VND. This amount decreased 31% y-o-y due to slowdown in real estate activities.

Total value of real estate corporate bonds (from 2021 to present)

Nha Trang: 78 villa land plots are intended for auction www.vietnamnet.vn Nha Trang reported to Khanh Hoa People's Committee on organizing a land auction of 78 plots in Hon Ro 2 to obtain state budget. The city also proposed starting price and auction arrangement as package or singular.

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Colliers News The price of Hanoi apartments has increased rapidly, real buyers are confused www.reatimes.vn According to Mr. David Jackson, CEO of Colliers Vietnam, the shortage of supply while the demand was high was one of the main reasons why apartment prices in Hanoi had increased rapidly in recent years. In particular, the representative of Colliers emphasized that the "unusual" phenomenon in the Hanoi market was that the suburban apartments were as high as, even higher than the apartments near the center, and explained that: "Suburban areas, beside the demand is large, there is also 'support' from infrastructure development. More affordable land and wider area also make investors develop many projects with good impressions in terms of aesthetics, convenience, full utilities, green space, etc. These factors, thereby, contribute to part of increasing the value of suburban apartments”.

Mr. David M. Jackson Chief Executive Officer Colliers Vietnam

Korean contractor will build Nhon Trach bridge, costing more than 1,800 billion VND www.thesaigontimes.vn The contract for the construction of Nhon Trach bridge and 1A sideroad (the road under the Ring Road 3 project) in Ho Chi Minh City with a cost of more than 1,800 billion VND has just been signed between My Thuan Project Management Board and Kumho Engineering & Construction Company.

Design of Nhon Trach bridge

Panasonic ramps up expansion in Vietnam www.vir.com.vn Panasonic Electric Works Vietnam Co., Ltd. (Electric Works Company) will accelerate the expansion of its electrical construction material business to grow sales by approximately 3.5 times in FY2030 from FY2021, equivalent to a $365 million increase.

Google plans to produce Smart phones in Vietnam www.vietnaminsider.vn DigiTimes quoted a supply chain source as saying that Google is considering transferring orders for new generation smartphones to Vietnam. The report said that Google’s new smartphone production line in Vietnam will be established after 2023. This factory will be responsible for manufacturing new generation models.

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Colliers News Serviced apartment market is in short of new supply www.vietnammoi.vn According to a new report released by Colliers, in Q2/2022, neither Hanoi nor Ho Chi Minh City recorded new supply of serviced apartments. In both major cities, markets are slowly returning to pre-pandemic normal. However, the average rental rate of serviced apartment projects remained at a stable level compared to the previous quarter and did not fluctuate strongly. In Ho Chi Minh City, a few projects have slightly increased rental rates compared to Q1/2022. The average rental rate of Grade A segment was at USD 31/m2, Grade B was USD 23/m2 per month. The occupancy rate recorded positive numbers for Grade A and Grade B segments at 76% and 70% respectively. In Hanoi, the average offer price in Grade A segment was USD 30/m2 and Grade B was USD 17/m2 per month. The occupancy rate has changed positively, Grade A segment was 80% and Grade B segment was 71%.

Serviced apartment market is in short of new supply

A series of measures will be applied to keep land prices from soaring www.thesaigontimes.vn On July 14, representative of Ministry of Construction said to propose amending regulations on land auction. The bureu also asked other authorities to complete and publish the mass data of real estate market.

The auction of land plots in Thu Thiem (HCMC)

Ba Ria - Vung Tau wants to start work on Ho Tram airport project soon www.thesaigontimes.vn The provincial People's Committee urged related authorities to speed up and report on Ho Tram airport. As planned, the Ho Tram airport project will cover an area of some 244 hectares and require VND4.25 trillion in investment. The airport is set to handle Airbus and Boeing aircraft, the local media reported.

More than 154,000 billion VND poured into real estate bonds www.thesaigontimes.vn On the afternoon of July 14, the Government held a conference on developing a safe, healthy and sustainable real estate market chaired by Prime Minister Pham Minh Chinh. At the conference, State Bank Governor Nguyen Thi Hong informed that by the end of May, the investment balance of real estate corporate bonds was VND 154,050 billion, accounting for 49.8% of the total business bond investment of the whole system and increased by 18.7% compared to the end of December 2021. colliers.com/en-vn

Colliers News The real estate segment is "sure of success" despite the uncertainty of market www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam also said that the development of new infrastructure and industrial zones has opened up a lot of opportunities for the local socio-economic leading to the development of the real estate market in such area. Mr. David Jackson said that real estates based on industrial zones become a new investment direction. The big guys poured money into industrial real estate, leading to plants, factories, and workers to come to work. Demand for residential and business real estate near industrial parks has increased sharply. Accordingly, the wave of real estate investment near industrial zones would become a trend and develop strongly in the coming time.

The real estate segment is "sure of success" despite the uncertainty of market

Two components of Can Tho-Ca Mau expressway approved www.thesaigontimes.vn The Ministry of Transport has approved two components of an expressway connecting Can Tho City and Ca Mau Province in the Mekong Delta. The first component is a 37.6-km section between Can Tho and Hau Giang Province with a total cost of VND10.4 trillion and the other component worth VND17.15 trillion is a 73.2-km section between Hau Giang and Ca Mau. The Can Tho-Ca Mau expressway will begin construction some time this year, be basically completed in 2025 and be opened to traffic a year after that.

A map shows the direction of the Can Tho - Ca Mau expressway

Domestic suppliers backing up foreign manufacturers www.vir.com.vn Becoming a magnet for global tech groups will help Vietnam woo more industrial manufacturers to expand operations in the country. Duong Nguyen Binh, vice president of the Vietnam Automation Association, said that investors from Europe, the United States, and Japan such as Arevo, Fujikura Fiber Optics, Mabuchi Motor, Premo, and Lixil are looking for feedstocks and intermediate goods in Vietnam to reduce costs and minimise risks as the pandemic continues to disrupt global supply chains. “Foreign technology groups have sought more than 400 types of components from local suppliers for industries such as electricity, electronics, mechanical engineering, precision mechanics, 3D printing, robotics, and automation, among others,” Binh said.

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Colliers News Townhouses are still a money-keeping channel for investors amid inflation? www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam pointed out 3 reasons why townhouses and detached villas were of great interest, as a stable money-keeping channel for investors. Firstly, townhouses were always very convenient for business and brought stable and sustainable income for owners. Secondly, in the context that the supply of land-attached real estate in Ho Chi Minh City continued to be scarce despite the high demand and absorption rate, this segment was becoming "hotter" in neighboring provinces such as Long An, Binh Duong or Dong Nai. Thirdly, from an investment perspective, many investors considered this segment to be a "safe haven", helping to preserve assets so that they could feel more secure in thinking about the next strategies.

Mr. David M. Jackson Chief Executive Officer Colliers Vietnam

Ho Chi Minh City downtown will expand pedestrian streets in 22 routes www.tuoitre.vn Ho Chi Minh City Department of Transport has just sent the City People's Committee a proposal for a pedestrian street project in the downtown area. The scheme also develops criteria for the management agency to consider and approve the policy when there is a proposal to open a pedestrian street. Accordingly, the project to build a roadmap to open pedestrian streets in the city center on weekends from 2022 to 2025.

Nguyen Hue Walking Street (District 1, HCMC)

New happenings of retail market www.nhipcaudautu.vn Domestic retailers are having to restructure and improve operational efficiency against the domination of foreign competitors. When the market recovered, the attempts to expand market share in the retail industry also gradually became clearer, promising to change the competitive balance between domestic and foreign retail brands. The emergence of a middle class with an average GDP of $5,000/person/year and rapid urbanization has spurred a strong shift in Vietnamese consumption trends. As a result, retailers from all over Asia have landed in Vietnam as restrictions on foreign companies are eased, increasing competition in the retail industry.

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Colliers News Compared to Southeast Asian countries, Vietnam's real estate market is a bright star www.reatimes.vn Assessing the real estate market in the last quarter, Mr. David Jackson, CEO of Colliers Vietnam said: “Vietnam's economy is recovering strongly and many business activities are expected to achieve growth rates as the rate before the Covid-19 pandemic later this year. Vietnam's real estate market is said to be a bright star, there is still a lot of room for development compared to other Southeast Asian countries. In Q2/2022, the domestic real estate market witnessed changes in socio-economic trends such as new decisions on infrastructure, finance, as well as laws and regulations. These systemic changes represent the Government's efforts to stabilize the market, thereby it promotes sustainable growth in the long term.

Vietnam's real estate market shows great yield and attractive potential compared to other markets

Many large US groups want to come to Ho Chi Minh City to cooperate and invest www.phunuonline.com.vn

On July 18 (US time), the high-ranking delegation of Ho Chi Minh City, led by Mr. Phan Van Mai, member of the Party Central Committee, Standing Deputy Secretary of the City Party Committee, Chairman of the Ho Chi Minh City People's Committee, began the visit and work in the United States. One of the US groups is Bank of America, will open a branch in HCMC, while institutional investors and consulting firms are warmly welcomed in doing business in Vietnam.

Bank of America is applying to open a branch in Ho Chi Minh City with an expected investment capital of 150 million USD

Hau Giang calls for investment in 76 projects worth VND50 trillion www.thesaigontimes.vn The Mekong Delta province of Hau Giang is calling for investment into 76 projects valued at VND50.08 trillion, according to information released at an investment promotion event held in the province last weekend. Specifically, nine industrial park projects and seven industrial cluster projects are in need of investments worth VND30.55 trillion. In the agricultural sector, the province is seeking VND5.69 trillion for 21 projects in organic rice farming, high-quality rice processing and preserving, and aquaculture combined with tourism, among others. Besides, 31 urban projects valued at VND13.1 trillion and eight tourism ones worth VND761 billion are awaiting investors.

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Colliers News Real estate near industrial zones attracts investors www.baotainguyenmoitruong.vn Mr. David Jackson - CEO of Colliers Vietnam analyzed that the development of new infrastructure and industrial zones has opened up a lot of opportunities for local socio-economics, thereby it led to the development of the real estate market in such area. Many keen investors often took the lead in areas with new industrial zone development orientations, which were in the early stages of development, and even had investment profit margins that could be many times higher than those in saturated industrial zones. This was also a trend that investors took advantage of to safely drop cash flow in the context of volatility.

The growth of industrial real estate is the driving force that helps the surrounding area's housing prices increase

Coca-Cola Vietnam marks third restructure following deal with Swire www.vir.com.vn Swire Coca-Cola Ltd. – a wholly-owned subsidiary of Swire Pacific Ltd. – has announced it has reached a definitive agreement to acquire Coca-Cola subsidiaries with bottling businesses in Vietnam and Cambodia. The deal marks the third restructuring effort of Coca-Cola Vietnam.

Coca-Cola Vietnam marks third restructure following deal with Swire

Proposal to expand Ho Chi Minh City - Trung Luong expressway to 8 lanes www.thesaigontimes.vn The Department of Transport of Ho Chi Minh City proposed that the People's Committee of Ho Chi Minh City report to the Prime Minister the investment plan to expand the Ho Chi Minh City - Trung Luong Expressway in the form of PPP and assign it to a locality where the expressway passes to act as a competent agency to implement.

85% of businesses are optimistic about upcoming business situations www.nhipcaudautu.vn According to a recent survey by the General Statistics Office, 85% of businesses believe that business in the third quarter will be better than before and GDP will grow by 11%.

colliers.com/en-vn

Colliers News

There are 3 confusing psychological states of real estate investors www.cafef.vn According to Mr. David Jackson, CEO of Colliers Vietnam, the macroeconomic situation and major fluctuations in the world naturally have a certain influence on the psychology of investors. On a global scale, many economies are struggling due to rising fuel prices and supply chain disruptions. As of Q2/2022, global inflation was at 7.8%, the highest level since 2008. "From these data combined with market observations, we believe that many investors continue to believe that real estate is a "shelter" to help them preserve their assets. As for investors with the capacity, capital and long-term vision, this will be an opportunity to accumulate their real estate and wait for a favorable time to earn profits in the future," said Colliers Vietnam expert.

Mr. David M. Jackson Chief Executive Officer Colliers Vietnam

ADB: Vietnam's economy goes upstream in the region www.zingnews.vn In the latest report, the Asian Development Bank (ADB) kept its economic growth forecast for Vietnam unchanged at 6.5% in 2022 and 6.7% in 2023. Meanwhile, developing Asia has downgraded its growth forecast to 4.6% and raised its inflation forecast to 4.2%. Growth was driven by continued expansion of trade, a faster-than-expected recovery in manufacturing, domestic travel, and disbursement of public investment, according to ADB.

Housing projects in HCMC’s Thủ Đức City

HCMC removes obstacles and fastens on the issuance of apartments' ownership certificates www.tuoitre.vn From the beginning of the year until now, Ho Chi Minh City has about 16,000 houses in housing development projects that have been granted certificates. It is expected that by December 31, an additional 5,757 units would be submitted for issuance of certificates. By February 2023, the city strives to grant all 15,664 houses that are eligible for the license.

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Colliers News Growth potential of real estate in financial centers www.vnexpress.net With the orientation to become a regional financial center, Ho Chi Minh City's economy is experiencing many positive changes, in which, real estate in the central areas is also expected to develop. According to the Q2 report of Colliers Vietnam, the selling price of primary apartments in Ho Chi Minh City increased by about 5% compared to Q1. In District 1, due to the great support of the central location, the strong influence in terms of economy, lifestyle and infrastructure system, real estate projects here are always interested by many investors.

Mr. David M. Jackson Chief Executive Officer Colliers Vietnam

Foreign capital races for the real estate M&A www.thesaigontimes.vn The real estate market began to restructure after the pandemic. This is considered an ideal state for foreign businesses to find opportunities for mergers and acquisitions with the domestic sector. On the other hand, domestic enterprises are also more open to receiving investment to relieve pressure on controlled capital flows. The gradual recovery of the economy creates a driving force for foreign investment in Vietnam to continuously grow in the first 6 months of 2022.

Foreign capital is accelerating in the market of mergers and acquisitions of real estate projects in Vietnam

Transport ministry approves North-South Expressway sub-projects in 2021-2025 www.vietnamplus.vn The Ministry of Transport (MoT) has approved 12 sub-projects of a mega project to build the eastern section of the North-South Expressway in the 2021-2025 period. These sub-projects will cover a total length of 723.7km, including sections of Ha Tinh – Quang Tri (260.9km), Quang Ngai – Nha Trang (352.06km), and Can Tho – Ca Mau (110.9km). Their total investment is estimated at about 147 trillion VND (6.27 billion USD).

Can Tho: Submitted a 900-hectare industrial park project invested by VSIP to the Government for approval www.thesaigontimes.vn Can Tho City has submitted to the Government for approval the 900-hectare industrial park project invested by Vietnam-Singapore Industrial Park Limited Company (VSIP). At the meeting of press agencies in the second quarter of 2022 of the Can Tho City People's Committee taking place on July 22, Mr. Duong Tan Hien, Vice Chairman of Can Tho City People's Committee, said that the industrial park project invested by VSIP in the city of Can Tho. Vinh Thanh district has completed the procedures and submitted to the Government for approval. "It is possible that this July, the Government Office will sign an investment approval for the VSIP industrial park project," he said. colliers.com/en-vn

Colliers News HoREA sent a petition to the Prime Minister not to regulate apartment ownership with a term of 50-70 years www.cafef.vn Having had a view on this, Mr. David Jackson, CEO of Colliers Vietnam said, the new law and policy, in general, could be interpreted in many different ways; therefore, it might cause many people confused and unsecured. This was quite common in many places, not only Vietnam. The attention of the public and business community in the past time was actually an opportunity for the competent authorities to explain this issue more clearly and develop a reasonable implementation roadmap. At the same time, it was necessary to discuss options for apartment owners to choose when the ownership period was almost over. For example, they might pay an additional fee to extend the term of ownership, or enter into a collective sale to a third party for adequate compensation.

HoREA sent a petition to the Prime Minister not to regulate apartment ownership with a term of 50-70 years

Gov’t okays over-200-hectare IP project in Hoa Binh www.thesaigontimes.vn Deputy Prime Minister Le Van Thanh has approved a plan to develop the Binh Phu industrial park project covering some 215 hectares of land in the northern province of Hoa Binh. The project, located in Mong Hoa Commune in Hoa Binh City, will be invested by Phu My Group JSC, the local media reported. Work on the industrial park will be executed within 36 months after the site is handed over to the investor and will operate for 50 years.

A view of an industrial park in Vietnam

Ministry of Construction requires publicity of real estate information www.diendandoanhnghiep.vn The Ministry of Construction requested ministries, sectors, People's Committees of provinces and centrally run cities to implement Decree 44/2022 on construction, management and use of information systems on housing and real estate market. The Ministry of Construction proposed the local People's Committees to check the assurance of the housing information technology infrastructure and the real estate market (servers, workstations), ensure the operation of the system providing information and data on housing and real estate market.

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Hong Kong Investment Fund to build a ready-built factory in Nam Dinh Vu Industrial Park www.vneconomy.vn

After the project in Thai Nguyen, Gaw NP Capital (Hong Kong) continues to expand its operations in Vietnam with a ready-built factory and a warehouse project in Nam Dinh Vu Industrial Park (Hai Phong). With the current scale of nearly 50 hectares of ready-built factory (RBF) and ready-built warehouse (RBW) for lease, Gaw NP Industrial (belonging to Gaw NP Capital) aims to expand its land bank in Vietnam to 100 hectares in 2022. The investment amount is expected to be from 200-500 million USD, lasting from 12-18 months.

Nam Dinh Vu Industrial Park (Hai Phong)

Hanoi to auction many suburban land plots worth hundreds of billion VND www.vietnamnet.vn

According to the Me Linh District Land Fund Development Center (Hanoi), the unit advising the District People's Committee to complete the procedures to put up for auction 106 land plots in 4 projects in Me Linh and Dong Anh in July and August, 2022. Accordingly, the total area of the auction land fund is about more than 11,000m2, the amount is expected to collect more than 503 billion VND. All 4 auction sites this time have potential, because of the complete infrastructure, near Quang Minh industrial park, administrative offices, schools and located on the arterial traffic axis.

A proposed port is expected to be able to serve ships up to 150,000 DWT in Binh Thuan province

New port planned for south-central province of Binh Thuan www.vir.com.vn A new general port with capacity to receive ships of up to 150,000 DWT will be built in the south-central coastal province of Binh Thuan. The Vietnam Maritime Administration has written a statement asking the Ministry of Transport for approval of Son My Industrial Park Infrastructure Investment and Construction Company Limited’s proposal to invest in building the general port with the aim of serving Son My 1 Industrial Park. The proposed port will be located in Son My commune in the province’s Ham Tan district, covering an area of more than 160 hectares. It will have a port harbor with three general wharfs and three specialised wharfs. General wharfs can handle ships of 30,000-50,000 tonnes and specialised wharfs can receive ships of 50,000-150,000 tonnes. Construction of the port is divided into two phases and is expected to be completed by 2026.

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Colliers News The recovery of the tourism industry creates momentum for the growth of resort real estate www.dantri.com.vn Colliers has made a statement "More attention can be paid to resort real estate". In particular, Mr. David Jackson - CEO of Colliers Vietnam - assessed that the resort real estate segment was gradually "warming", and there were many factors for investors to believe that a new growth cycle of the resort real estate was opening.

The recovery of the tourism industry creates momentum for the growth of resort real estate

Hai Duong calls for investment in a series of housing projects www.diendandoanhnghiep.vn In addition to large-scale projects, Hai Duong province has a series of residential and urban areas expected to develop and call for investment. According to the Hai Duong Housing Development Program for the period of 2022 - 2030, with a vision to 2045, Hai Duong province has identified 24 dynamic urban area projects with a scale of more than 10,000 hectares. The projects are concentrated in Hai Duong city, Cam Giang city, Chi Linh city and Thanh Mien district.

A corner of Hai Duong urban area

7 new points in the draft revised Land Law www.diendandoanhnghiep.vn According to the plan, the Land Law (amended) project will be presented to the National Assembly for comments at the meeting held in October 2022 and May 2023; expected to be approved at the meeting in October 2023.

National spatial master plan to lay ground for high economic growth www.vietnamnews.vn An appropriate master plan on the use of the country's land would lay the foundations for Việt Nam to achieve high economic growth and become a modern industrialised country by 2030 and a developed country by 2050.

Lien Chieu Port receiving attention from investors www.vir.com.vn Many joint ventures between domestic, Indian, and Japanese investors have been proposed to develop the Lien Chieu Port project, one of the three deep-water seaports in Vietnam. The Danang People's Committee approved a project to adjust the planning of Lien Chieu port and the coastal route connecting to it last week. The Lien Chieu port area will cover nearly 470 hectares, including eight 2.75km container berths for vessels of up to 200,000 deadweight tonnage.

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Colliers News

House prices increase with inflation, which reasonable segment in Ho Chi Minh City to invest? www.tienphong.vn Not only apartments for living, the serviced apartment segment has also been active since the beginning of the year until now. According to Colliers, the average rental price of Grade A segment in Ho Chi Minh City is reaching USD 31 per m2 per month, and as for Grade B, it reaches about USD 23 per m2 per month. At the same time, the occupancy rate of projects recorded positive numbers for Grade A and Grade B segments reaching 76% and 70% respectively thanks to easy entry and travel policies between countries.

House prices increase with inflation, which reasonable segment in Ho Chi Minh City to invest?

Why do leading smartphone companies choose Vietnam? www.vnbusiness.vn Up to this point, there have been 2 smartphone brands in the Top 5 in the world (Samsung, Apple, Xaomi, OPPO and Vivo) choosing Vietnam as a "base" for manufacturing and assembling phones, namely Samsung and Xiaomi. This shows that the Vietnamese smartphone market is very attractive to foreign businesses.

Vietnam is Samsung's largest phone producer

Foreign investors pledge over US$1.5b in Quang Ninh www.thesaigontimes.vn Foreign investors have signed agreements to inject over US$1.5 billion into the northern province of Quang Ninh, it was announced at an investment promotion conference held in the province on July 26. At the conference, Stavian Quang Yen Petrochemical JSC clinched a deal to invest US$1.5 billion in developing the Polypropylene resin manufacturing project in the Bac Tien Phong industrial zone.

Da Nang regains growth momentum, reaching out to the region www.plo.vn Da Nang is one of three Vietnamese cities to attend the 2022 Asia-Pacific Cities Summit. In two days, July 27 and 28, Da Nang and two other Vietnamese cities, Hai Phong and Can Tho Attending the Asia-Pacific Cities Summit (APCS) 2022.

Hanoi meets full-year visitor attraction target www.thesaigontimes.vn Hanoi City received an estimated 10.62 million visitors between January and July, a year-on-year increase of 3.6-fold, fulfilling its target for the entire year, according to the municipal Department of Tourism. The city had earlier targeted to receive 9-10 million tourists this year, with 1.2-2 million of them international travelers, and earn VND27.8-35.8 trillion from tourism. colliers.com/en-vn

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