Monthly Real Estate News | June 2021 by Vietnam Realty

Vietnam Monthly Real Estate News June 2021

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

Colliers News

Looking for Win-Win-Win solutions for the real estate market www.nhipcaudautu.vn Mr. David Jackson, CEO of Colliers Vietnam, said that the secondary housing market had not really developed because most people had not wanted or did not want to sell their houses. Most apartments in Vietnam had just been built in the past few years and residents had not lived in these apartments for a long time, so they had not considered selling their apartments. The demand to buy houses to live in Vietnam was still too great compared to the demand to buy to make a profit, so people were also slow to sell their houses. This made the secondary market not really active.

Looking for Win-Win-Win solutions for the real estate market

Vietnam leaders stress equitable access to Covid-19 vaccines www.vnexpress.net Allowing benefactors of a Covid-19 vaccine fund to have their employees or nominees vaccinated first would be problematic, Health Minister Deputy Nguyen Thanh Long said Monday. Vietnam has recently approved the establishment of a Covid-19 vaccine fund to raise contributions from various sources, including cash and vaccine doses from benefactors all around the globe. Businesses and organizations can also lend a hand in this effort.

A medical worker holds a vial containing a Covid-19 vaccine dose by AstraZeneca in Hanoi's National Hospital for Tropical Diseases, March 8, 2021

Number of firms shut down rises 23 percent www.vietnamnews.vn As many as 59,800 companies closed down in the first five months of this year, a year-on-year increase of 23 percent, according to the General Statistics Office. Around 20,000 are completing procedures for dissolution while 8,000 are already dissolved.

Vietnam Airlines signs up for international vaccine passport program www.vnexpress.net Vietnam Airlines has signed an agreement with the International Air Transport Association to trial a vaccine passport next month. It will implement the IATA Travel Pass initiative that allows people to store verified Covid-19-test and vaccination certificates on a smartphone app. They must be issued by authorized facilities registered with IATA. Le Hong Ha, CEO of Vietnam Airlines, said: "The most important goal of the initiative is to revive people’s faith in air transport and ensure safe and smooth travel." Nick Careen, an IATA board member, said it is a solution for facilitating international travel during the pandemic.

colliers.com/en-vn

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

Colliers News

Mixed developments in the apartment market adjacent to Thu Duc City www.cafef.vn Ms. Nguyen Thi Hong Yen, Head of Colliers Vietnam Housing Real Estate Services, said that in Q1/2021, the supply of mid-range apartments in Ho Chi Minh City and surrounding areas was still limited, with no clear change compared to the previous quarter. In which, Binh Duong "surpassed" Ho Chi Minh City to become the bright spot of the apartment market. Specifically, the supply of apartments in Binh Duong accounted for about 54% of the total number of units for sale in HCMC and adjacent areas. In which, mid-range apartments were still the segment with the largest proportion of products with prices ranging from VND 35 to 60 mil/ m2. According to Ms. Yen, in general, the average price of mid-range apartments had increased slightly, but it was still suitable for the growing needs of Vietnamese people and the development speed of transport infrastructure. The price of apartments in the vicinity of cities like Binh Duong had shown signs of "heating" gradually, even many projects with beautiful locations in Di An and Thuan An had prices as high as the prices in the surrounding districts of Ho Chi Minh City.

Ms. Nguyen Hong Yen, Manager of Residential Services | Colliers Vietnam

JICA financed $25 million for wind power project in Quang Tri www.vir.com.vn The Japan International Cooperation Agency (JICA) in Vietnam has just signed a loan agreement of up to $25 million for an onshore wind power project in Quang Tri province. Accordingly, the Asian Development Bank (ADB), Export Finance of Australia (EFA), JICA, and members of Power Construction JSC No.1 (PCC1) have signed a $173 million green loan to develop wind power projects with a total capacity of 144MW in Huong Hoa district, Quang Tri province.

Quang Tri has great advantages for the development of green energy such as wind and solar power

LG Electronics to convert Haiphong smartphone production line to home appliances www.vir.com.vn LG Electronics Inc. is changing its overseas smartphone manufacturing lines into facilities that produce home appliances. The conversion will also take place at the group's Haiphong factory. The move follows LG's decision to withdraw from the mobile business in April, according to Yonhap newswire. colliers.com/en-vn

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

Colliers News

Real estate is still an attractive investment channel, where is the cash flow going into? www.cafef.vn According to Mr. David Jackson, CEO of Colliers Vietnam, over time, investors also gradually "matured", gradually gained more in-depth knowledge and were not easily affected by unofficial information. Along with that, legal regulations had been gradually improved to help authorities regulate and manage the market more effectively. It also meant that the part of brokers who wanted to create rumors and crowd effects for profit was gradually not as easy to "raise" as before. However, the risk of land fever was still there and response scenarios were still needed. This expert said that there was still a part of real estate investors who wanted to make profits from this segment. Especially, in localities that were just starting to develop, with a large land fund, land was still an attractive investment channel because of its good profit margin (compared to the apartment segment), affordable price, bringing investors a channel to regulate cash flow effectively.

Online trade exchange connects businesses with Thai retail group

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

Vietnamese

www.vov.vn An online trade exchange took place on June 2 as part of efforts to strengthen business connectivity between Thailand's Central Group and a group of roughly 20 Vietnamese enterprises involving in food, building materials, and furniture. The event was co-hosted by Vietnam’s Trade Office in Thailand, the Vietnam Trade Promotion Agency, and Thailand’s Central Group.

Online trade exchange connects Vietnamese businesses with Thai retail group

EU Ambassador willing to support Việt Nam access COVID-19 vaccine sources www.vietnaminsider.vn Ambassador Giorgio Aliberti, head of the European Union Delegation to Việt Nam, told President Nguyễn Xuân Phúc on Tuesday he is willing to help Việt Nam access COVID-19 vaccine sources and vaccine technology from Europe. The ambassador applauded Việt Nam’s efforts in the pandemic fight and expressed his hope the country will successfully complete its vaccine rollout.

colliers.com/en-vn

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

Colliers News

From Singapore's 'Home for Home' to 'Home for Home' in Vietnam www.thesaigontimes.vn According to Mr. David Jackson, CEO of Colliers Vietnam, the secondary housing market had not really developed because most people had not wanted or did not want to sell their houses. Most apartments in Vietnam had just been built in the past few years and residents had not lived in these apartments for a long time, so they had not considered selling their apartments. The demand to buy houses to live in Vietnam was still too great compared to the demand to buy to make a profit, so people were slow to sell their houses. This made the secondary market not really active, Mr. David Jackson explained.

From Singapore's 'Home for Home' to 'Home for Home' in Vietnam

Vietnam approves Sinopharm Covid vaccine for emergency use www.vnexpress.net Vietnam has approved the emergency use of a Covid-19 vaccine by China's Sinopharm, the Ministry of Health announced Friday. The vaccine, called Vero Cell, Inactivated, is produced at the Beijing Institute of Biological Products Co.Ltd under Sinopharm. The National Institute of Hygiene and Epidemiology suggested for the vaccine to be approved, and its approval was signed by deputy health minister Truong Quoc Cuong on Thursday. The National Institute of Hygiene and Epidemiology will be responsible for cooperating with vaccine manufacturers to ensure the production of this vaccine and its safety and quality.

A nurse holds a syringe containing a coronavirus vaccine made by the Beijing Institute of Biological Products, a unit of Sinopharm subsidiary China National Biotec Group (CNBG), at a vaccination center in Beijing, China, April 15, 2021

Vietnam’s hospitality market large on radar of foreign buyers www.vir.com.vn Vietnam’s hospitality market has become more vibrant following the Ministry of Construction’s proposal to seek the government’s approval for foreigners to buy hospitality projects in Vietnam. As of the end of 2019, around 800 foreign individuals and organisations have bought houses in Vietnam, a figure that makes little justice to the appeal of the Vietnamese real estate market.

Lotte Mart closes centre in Hanoi’s Mipec Tower

www.vir.com.vn Korean retail giant Lotte Mart is closing its centre in Mipec Tower in Hanoi starting from July 1, 2021 due to the restructuring of its system. According to a release Lotte Mart sent to VIR, the company has just sent an official notice to its tenants, partners, and customers on the closure of Lotte Mart Dong Da located in Mipec Tower at 229 Tay Son Street, Hanoi. colliers.com/en-vn

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

Colliers News

Industrial real estate cooled down www.baodautu.vn Mr. David Jackson, CEO of Colliers Vietnam, said that strict pandemic control measures and international travel restrictions had made foreign investors who were interested in industrial zones in Vietnam more cautious during this period. “They would not send employees to Vietnam to promote the establishment of new factories or seek investment opportunities. Difficulties in arranging tours, meetings and negotiations would hinder investments in Vietnam in the short term,” said David Jackson.

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

Things you should know about 100% foreign invested business in Vietnam www.vir.com.vn Creation of a company in Vietnam is slightly different to what an entrepreneur from another country might be used to. While the opportunities for companies based in Vietnam are compelling, the company registration process is more complex and bureaucratic than developed countries.

Things you should know about 100% foreign invested business in Vietnam

Vietnam grants priority clearance for flights with Covid vaccines www.vnexpress.net All flights carrying Covid-19 vaccines to and through Vietnam will receive priority landing rights towards ensuring product quality, authorities said Monday. The Civil Aviation Authority of Vietnam (CAAV) said airlines operating flights with the vaccines should clearly indicate what a flight is carrying and notify the air traffic authority for priority landing.

Novaland transacts a residential project valued at $1.7 billion

www.vir.com.vn Novaland is in the process of negotiating to sell a residential project in Ho Chi Minh City which will bring about approximately VND40 trillion ($1.74 billion) within this year, with disbursement slated for 2022. Novaland refused to release further details, but VIR was told that two domestic companies were involved in this big transaction deal. Novaland refused to release further details, but VIR was told that two domestic companies were involved in this big transaction deal. This project is expected to bring a profit of around VND8 trillion ($347.83 million) to pump additional finance into three 1,000-hectare projects which are underway at the same time, namely NovaWorld Phan Thiet (Binh Thuan), NovaWorld Ho Tram (Ba Ria-Vung Tau), and Aqua City (Dong Nai).

colliers.com/en-vn

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

Colliers News

Colliers Vietnam expert: Quick-witted investors will find ways to catch the waves and cash out as soon as possible in planned areas! www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam said, “Recently, the Standing Provincial Party Committee had agreed on the policy of building a project to establish Tan Uyen City and Ben Cat City (Binh Duong), With a slightly broader view, Binh Duong itself had been a potential and bustling real estate market for many years. The reasons could be mentioned as convenient location, well-invested and synchronous infrastructure, as well as the fact that Binh Duong was the convergence of many industrial parks among the largest ones in the country.

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

Apple’s partner increases $101 million to the investment in Vietnam. More and more FDI projects continue to enter the country www.vietnaminsider.vn The Taiwan Economy Ministry’s investment commission, which must approve overseas investments by Taiwanese companies, said the investment in Pegatron’s Vietnam subsidiary would be for the production and sales of computers and peripheral equipment, communication equipment and electronic components. It gave no further details and Pegatron did not immediately respond to a request for comment.

Apple’s partner increases $101 million to the investment in Vietnam. More and more FDI projects continue to enter the country

Forty-two firms resume operations in Covid-19 epicenter www.vnexpress.net A total of 42 businesses with 7,600 workers have reopened in the northern province of Bac Giang after downing shutters for three weeks to prevent Covid-19 transmission. The businesses are located in the province’s four industrial parks – Van Trung, Quang Chau, Dinh Tram and Song Khe-Noi Hoang. New Wing Interconnect Technology, electric components manufacturer for Taiwan’s Foxconn, has the highest number of employees among the reopened firms at 1,300. Enterprises that resume operation have to strictly observe all Covid-19 prevention measures. The workers are required to keep their distance while working in the factories and eating in the cafeterias. Some enterprises have provided workers with dormitories, while others have renovated their factories into accommodation units for the employees.

colliers.com/en-vn

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

Colliers News

During the pandemic season, which segment of investment is sure to win? www.cafef.vn According to Mr. David Jackson, CEO of Colliers Vietnam, except for localities with land fever phenomenon recently, in other areas, basic indicators of the real estate market such as supply, credit to support people buying a house, the actual volume of transactions were still quite optimistic. There was still a part of real estate investors who wanted to make a profit from this segment. Especially, in localities that were just starting to develop, with a large land fund, land was still an attractive investment channel because of its good profit margin (compared to the apartment segment), affordable price, helping investors have a channel to regulate cash flow effectively.

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

HCMC’s 2020 revenue from land use fees lowest since 2015 www.thesaigontimes.vn HCMC collected only VND7.6 trillion in revenue from land use fees in 2020, the lowest since 2015, according to a report by the HCMC Real Estate Association (HoREA). HoREA cited statistics from the HCMC Tax Department to state that the revenue from the land use fees was only higher than the VND6 trillion in 2014 and much lower than that of other years in the past decade, news site VnExpress reported.

A corner of HCMC. The city collected only VND7.6 trillion in revenue from the land use fees in 2020, the lowest since 2015

Quang Tri seeks to build VND7.7-trillion expy www.thesaigontimes.vn The Quang Tri government has proposed the prime minister and the ministries of Transport and Planning & Investment add the Cam Lo-Lao Bao expressway project to the country’s expressway development plan in the 2021-2025 period, with a vision toward 2030, at a cost of VND7.7 trillion. The expressway project connecting Cam Lo District with the Lao Bao international border gate in Huong Hoa District will be 70 kilometers long and 17 meters wide and have four lanes.

$43-million support package sought for Saigon Covid-hit laborers

www.vnexpress.net The HCMC labor department has suggested providing 310,000 workers hit financially by Covid-19 over VND1 trillion ($43.6 million). In a proposal the Department of Labor, Invalids and Social Affairs submitted to the city’s administration Tuesday, laborers that have lost their jobs or had no income in at least 30 consecutive days starting May 1 will be put on the funding list.

colliers.com/en-vn

Colliers News Hanoi's housing market is interested, real buyers have more opportunities to own houses www.saigondautu.com.vn Mr. Peter Dinning, Chairman of Colliers Vietnam added: “Many policies to regulate housing and real estate market growth had been completed and were consistent with the current legal system on investment, construction and business. The Construction Law 2020 had agreed with the Law on Housing, the Law on Real Estate Business and the Law on Environmental Protection in terms of approving investment proposals, approving investors or recognizing developers; thus it created a healthier and more transparent investment environment while minimizing speculation and manipulating real estate prices. With this pedestal, the apartment segment in 2021 continued to have positive prospects.”

Mr. Peter Dinning Chairman| Colliers Vietnam

Dat Xanh Group ready for breakthrough in 2020-2030 with issuance of 200 million shares www.vir.com.vn According to the document expected to be presented at the 2021 annual general meeting of shareholders, Dat Xanh Group JSC (HSX: DXG) will propose to issue shares for new shareholders and employees. According to the plan, Dat Xanh Group will issue 200 million shares (equivalent to 38.59 per cent of the current shares) reserved for domestic and foreign investors. The funds mobilised will be used to develop large-scale projects from hundreds of hectares.

The Board of Directors of Dat Xanh Group will submit the plan to issue shares at the 2021 Annual General Shareholders' Meeting on June 26

HSX to adopt new trading infrastructure from KRX from early August www.vir.com.vn Ho Chi Minh City Stock Exchange (HSX) will adopt a new trading infrastructure from the Korean Exchange (KRX). On June 9, Ho Chi Minh City Stock Exchange (HSX) notified securities companies on the upcoming implementation of a new infrastructure system for the entire stock market, imported from the Korean Exchange (KRX). HSX will send technical specifications to securities companies on June 11. From June 14 to July 23, the connection testing will take place. From July 26 to August 6, there will be functional testing. In the two testing phases mentioned above, securities companies will be connected to the HSX’s new system to gain experience. Testing time will happen from 8:30 am to 15:00 pm on weekdays.

colliers.com/en-vn

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

Colliers News After the land fever, many investors fell into the "dilemma" situation www.vir.com.vn Vietnam has less than half of the low-income houses it targeted for in 2020, according to data from the Ministry of Construction (MoC). According to the statistics, the total area of more than 5.1 million sq.m of built social housing accounted for only 41.4 percent of the target of 12.5 million sq.m of proposed housing in the National Housing Development Strategy by 2020.

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

Industrial real estate: 'Water still flows to the valley' www.nhadautu.vn The cooperation and investment deals of real estate giants such as Boustead Projects, ESR Cayman Limited, Vietnam Industrial Park Industry Joint Stock Company, all target seemingly "familiar" provinces like Bac Ninh, Bac Giang, Hai Phong, Hai Duong, Dong Nai and Long An. Dozens of new industrial parks that have been opened or are about to open have also experienced similar "water flowing in the lowlands" because these provinces have supporting ecosystems for production and business activities, easy access to logistics activities and suitable 'products' to investors.

Complex regulations on intellectual property rights

Vietnam's economy shows high resilience in fourth outbreak of coronavirus www.vir.com.vn Vietnam's economy appears to have performed relatively well during the fourth outbreak of coronavirus, according to the June 2021 Vietnam Macro Monitoring report by the World Bank. The fourth outbreak of coronavirus has led to the sharpest rise in the number of COVID-19 cases since the pandemic broke out in Vietnam last year, pushing the government to implement tougher mobility measures, including in main urban center and a few industrial zones.

Vietnam’s agro-products: Strategies for safeguarding intellectual property rights needed

www.thesaigontimes.vn Safeguarding intellectual property rights in agriculture is not a new issue in Vietnam. However, Vietnamese agricultural producers and exporters still do not have a good grasp of the necessity of ensuring these rights in the long run and how they can formulate a strategy for doing so. In the long run, specific strategies for intellectual property rights are beneficial. They fuel innovations across big, medium and small enterprises, which will thrive in a knowledge-based economy.

colliers.com/en-vn

Colliers News Retail increases "resistance" to Covid-19 www.baodautu.vn The second wave of pandemic appeared around the end of July 2020. However, the influence in this phase was greatly eliminated when both users and enterprises had great experience and confidence in pandemic prevention measures. Evaluation from Colliers Vietnam showed that the occupancy rate at commercial centers in Vietnam was still very high. Even a series of international brands such as Uniqlo, Fila or Haidilao Hot Pot were racing to expand their store system in 2020. The hottest spots were concentrated in the Vincom shopping center system.

Retail increases "resistance" to Covid-19

Vietnam to ink Pfizer/BioNTech deal for COVID-19 vaccine supply www.vir.com.vn Vietnam is set to purchase 31 million doses of the COVID-19 vaccine from manufacturer Pfizer/BioNtech of the United States under a deal to be signed shortly between the two sides, according to sources from the Ministry of Health (MoH). The vaccine will be delivered to Vietnam in the third and fourth quarters of ths year, said the sources.

Pfizer/BioNTech COVID-19 vaccine is expected to be delivered to Vietnam in quarters III & IV this year

Deo Ca Group seeks to develop expy linking Can Tho, Hau Giang www.thesaigontimes.vn Deo Ca Group has proposed investing in an expressway linking Can Tho City and Hau Giang Province in the Mekong Delta region under the public-private partnership format, at a total cost of VND8 trillion. Speaking at a recent meeting with the Hau Giang government, the Deo Ca Group presented two solutions to implement the Can Tho-Hau Giang expressway project, but selected the solution wherein the project will be 37 kilometers long, start at the intersection of National highway 91 and Nam Song Hau Street and end in Vi Thanh City in Hau Giang Province.

Retail increases "resistance" to Covid-19

www.baodautu.vn The second wave of pandemic appeared around the end of July 2020. However, the influence in this phase was greatly eliminated when both users and enterprises had great experience and confidence in pandemic prevention measures. Evaluation from Colliers Vietnam showed that the occupancy rate at commercial centers in Vietnam was still very high. Even a series of international brands such as Uniqlo, Fila or Haidilao Hot Pot were racing to expand their store system in 2020. The hottest spots were concentrated in the Vincom shopping center system.

colliers.com/en-vn

Colliers News Apartment for rent: 'The tax rate of 10% is quite high and needs a roadmap' www.vietnambiz.vn Mr. David Jackson, CEO of Colliers Vietnam, said that before the COVID-19 pandemic, apartment rental rates tended to increase quite steadily, especially in areas near the center of Ho Chi Minh City and Hanoi. However, Colliers statistics shows that the average apartment rental rate has decreased by 20-40% compared to the time before the outbreak. Apartments for rent with an area of 75 m2 in some districts far from the center of Ho Chi Minh City, currently the rental rate is only VND 9-10 mil/month compared to VND 12-13 mil/month as before. Mr. David said that the possibility of increasing rental rate in this segment in the context of the unpredictable epidemic was left open.

Apartment for rent: 'The tax rate of 10% is quite high and needs a roadmap'

Consortium led by Alibaba completes the injection of $400 million into Masan www.vietnamnews.vn Masan Group Corporation (HSX: MSN) today announced the completion of a private issuance of 5.5 per cent stake in The CrownX Corporation to a consortium led by Alibaba Group and Baring Private Equity Asia for a total cash consideration of $400 million. The CrownX is Masan’s integrated consumer retail arm that consolidates its interests in Masan Consumer Holdings and VinCommerce.

Alibaba completes the injection of $400 million into Masan

HCM City builds centre for digital transformation www.vietnamnews.vn DXCenter, a centre which provides consultation and support for individuals and businesses in digital transformation, is currently being built in downtown HCM City. Lâm Nguyễn Hải Long, CEO of Quang Trung Software City Development Co. Ltd. (QTSC), speaks to Sài Gòn Giải Phóng (Liberated Sài Gòn) newspaper about DXCenter’s role and its benefits for businesses, residents, and the city’s Digital Transformation Scheme.

Hà Nội approves housing development programme for 2021-2030

www.vietnamnews.vn The Hà Nội People’s Committee has approved the outline for the capital city’s housing development programme for 2021-2030, with vision to 2040. Accordingly, the authorities will conduct surveys and assessments regarding the current situation of commercial housing, social housing, resettlement housing, official residence and private housing in urban and rural areas. It will set goals for housing development and make forecasts on the demand for housing among social welfare beneficiaries.

colliers.com/en-vn

Colliers News Experts unexpectedly forecast the real estate market in the last 6 months of the year www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam shared, “Land continues to be the investment channel chosen by many people. The new supply is likely to increase compared to the previous quarter and will be concentrated mainly in the markets of the provinces adjacent to Ho Chi Minh City and there will not be many fluctuations including the price level”. In addition to the impact of the Covid-19 pandemic, real estate prices are also affected by the increase in input costs. "The price of construction materials such as steel is currently on an upward trend. Accordingly, in the short term, a decrease in real estate prices is unlikely," said Mr. David Jackson.

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

Investors pump billions into offshore wind power plants www.vir.com.vn Foreign and local investors have poured billions of dollars into developing offshore wind farms. Thang Long Wind, a $11.9-billion, 3.4 GW offshore plant, is being built in the central province of Binh Thuan. Installation of floats will be completed in July to gather oceanographic data related to waves, wind and currents. With a coastline of 3,260 km, low sea levels and high wind speeds (7-10 meters per second at a height of 100 meters), Vietnam is an emerging offshore wind power magnet in Southeast Asia.

Wind turbines in the province of Bac Lieu, southern Vietnam

‘Mega’ company eyes $1 bln revenues www.vnexpress.net The CEO of Auto Investment Group, a company dubbed “mega” for its outsized plans despite being impecunious, said it has a revenue target of $1 billion for 2022. The company, which seeks to raise capital of VND500 trillion ($21.8 billion), or 7 percent of Vietnam’s GDP, wants to become a tech company that "represents Vietnam in competing with global giants," Nguyen Vu Quoc Anh, 35, said at an online press briefing Tuesday

ACV asks to borrow US dollars for Long Thành airport project

www.vvietnamnews.vn The State-run Airports Corporation of Việt Nam (ACV) has said it wants to borrow US dollars from local banks for the country's largest airport project, Long Thành International Airport in Đồng Nai Province. ACV’s chairman, Lại Xuân Thanh, sent a report to the Economic Committee of the National Assembly, asking them to support the plan of borrowing and paying in US dollars in order to maximise benefits and efficiency. colliers.com/en-vn

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

Colliers News Apartment for rent is "struggled" because of the pandemic www.cafef.vn Previously, Mr. David Jackson, CEO of Colliers Vietnam, said that since the outbreak of the pandemic, the rate of vacant apartments in big cities had increased due to many foreigners returning to their country while the supply of apartments was still abundant. Also affected by the pandemic, many homeowners had sharply reduced prices to increase competition for apartments. Mr. David Jackson added that, before the pandemic, apartment rental rates increased steadily. However, apartment rental rates are currently down by 20-40% compared to before the pandemic. “This rates will not be able to recover as soon as expected when the Covid-19 pandemic is still unpredictable” - this expert raised concerns.

Apartment for rent is "struggled" because of the pandemic

Apple shores up Vietnam supply chain www.vir.com.vn Apple suppliers in Vietnam, already on the increase since the US-China trade war kicked off, are continuing to bulk up operations here with added funding and heightened relocation efforts. Pegatron, a major Apple manufacturer with facilities across the globe, last Monday got the nod from Taiwanese leaders to inject an additional $101 million into Vietnam.

Apple shores up Vietnam supply chain

Japanese investors secure foothold in leading Vietnamese brands through M&A www.vov.vn Japanese investors have poured billions of dollars to purchase stakes at Vietnamese businesses over the past decade. As of May 2021, Japan was the second-largest foreign investor in Vietnam with the total registered capital of US$63 billion. Japanese investors have also been actively contributing capital and share purchases to Vietnamese firms in various fields such as retail, food and beverage, pharmaceutical, real estate, and finance.

Nearly 12,000 billion is pouring into 32 traffic projects in Tuyen Quang, with Tuyen Quang - Phu Tho highway connecting Noi Bai - Lao Cai highway.

www.vietnambiz.vn 32 traffic projects are about to be implemented in Tuyen Quang with a total investment of nearly 12,000 billion VND, the poured capital in 2021 is 556.6 billion VND. Major projects are the Tuyen Quang - Phu Tho expressway connecting Noi Bai - Lao Cai highway, the central roads of Tuyen Quang city, 4 large bridges,...

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Colliers News Cash flow continues to pour into real estate, is there new risk of land fever? www.antt.vn Mr. David Jackson, CEO of Colliers Vietnam, said that the trend of investors moving cash flow into the real estate sector was increasing because this was an investment channel that was considered safe and housing prices tended to increase over time. Meanwhile, other investment channels such as securities and gold were unstable and difficult to grasp, especially for the F0 investors. At the same time, the savings deposit interest rate was still at a low interest rate of less than 6.5%/year, which was considered quite difficult to attract people's accumulated money. Sharing about the situation of the real estate segments, Mr. David Jackson said, the land plot segment was quite active. As the "clean" land fund in Ho Chi Minh City was increasingly scarce, the suburban land (Thu Duc City, Hoc Mon, Binh Chanh) continued to hold the main position after establishing a new price level from the past land "fever".

Cash flow continues to pour into real estate, is there new risk of land fever?

Offshore wind farms worth USD billions line up for approval www.vir.com.vn Numerous foreign investors are interested in developing offshore wind farms worth billions of dollars in total investment capital in Vietnam. In late May, La Gan Wind Power Development Corporation, the developer of the 3.5GW La Gan offshore wind farm project signed with Northern Regional Center for Marine Environmental and Natural Resources Planning and Investigation (CPIM) a contract for geophysical survey and a contract for geological research. The La Gan offshore wind power project is owned by Copenhagen Infrastructure Partners, Asiapetro, and Novasia.

Many offshore wind farms are waiting for approval to begin surveys or be added to the planning

HCM City receives more trains for Metro Line No 1 www.vietnamnews.vn HCM City now has five out of its planned 17 trains for Metro Line No 1, after six carriages for two trains arrived on Sunday from Japan. The train carriages from Japan arrived at Khánh Hội Port in District 4 on Sunday. On Monday morning, one three-carriage train was transported to Long Bình Depot in Thủ Đức City by road for assembly and testing. The other train will be transported to the site on Wednesday.

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Colliers News Investors are less interested in land near Ho Chi Minh City www.reatimes.vn According to Colliers, in May 2021, the amount of query information about land plots decreased by 15-20% compared to the previous month in some sub-districts upgraded to districts or cities directly under Ho Chi Minh City and neighboring provinces of Ho Chi Minh City such as Binh Duong, Dong Nai, Long An or Ba Ria - Vung Tau. In addition to the impact caused by the Covid-19 pandemic, many brokers took advantage of the planning information of airports and wharfs, etc. to create virtual waves, blowing up land prices too high during the recent land fever in Vietnam. Some localities also made investors more wary. Even if the Covid-19 pandemic was completely controlled, investors would not be too "rushed" and be more cautious before putting money down. According to Colliers, an important driving force that made the land plot segment so exciting was infrastructure. Currently, many resources were being focused on fighting the pandemic. A number of key infrastructure projects had to be suspended or construction did not meet the set schedule.

Investors are less interested in land near Ho Chi Minh City

Ho Chi Minh City proposes 3-month delay for seaport fees www.vir.com.vn Ho Chi Minh City Department of Transport has proposed delaying the collection of seaport infrastructure fees for three months to help businesses weather the COVID-19 storm. The department has just issued a document to business associations seeking comments on a draft amendment to the collection of seaport infrastructure fees in Ho Chi Minh City.

Ho Chi Minh City proposes delaying seaport infrastructure fee collection for three months

Vincom Retail to merge two real estate subsidiaries capitalised over $264 million www.vir.com.vn Vincom Retail JSC (HSX: VRE) has announced the merger of two wholly-owned subsidiaries in order to restructure the internal ownership of subsidiaries. After the merger, the charter capital of VCRMB is expected to increase to VND6.16 trillion ($267.83 million). VCRMB will inherit all assets, legal rights, and interests, as well as unpaid debts and other obligations of Ha Thanh.

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Colliers News CEO Colliers Vietnam: Land plot in the suburban areas of Ho Chi Minh City has cooled down www.vietnamfinance.vn According to Colliers Vietnam, for many years, land plots in the suburban areas of Ho Chi Minh City is always in the favorite list of investors. But like many other segments, this period, the land plots are also seriously affected by the Covid-19 pandemic and in the next 6 months, it will be difficult for this segment to return to the bustling as it once was. Mr. David Jackson said that in May 2021, Colliers Vietnam recorded that the amount of query information about land plots decreased by 15-20% compared to the previous month. “Just a few months ago, information about the possibility of upgrading some sub-districts to districts or city directly under Ho Chi Minh City also caused land plots in Hoc Mon, Binh Chanh, Can Gio or Nha Be to be searched strongly, then the query volume plummeted,” he said.

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

CapitaLand Ascott acquires new properties in Hanoi and Paris www.vir.com.vn The wholly-owned lodging business unit of CapitaLand, The Ascott Ltd. (Ascott), on June 21 entered into two agreements to acquire two properties in Paris, France and Hanoi, Vietnam for approximately $155 million. The acquisition of the two properties through the Ascott Serviced Residence Global Fund (ASRGF), Ascott’s private equity fund with Qatar Investment Authority, will boost Ascott’s total fund assets under management (FUM) to about S$8 billion ($5.94 billion).

CapitaLand's Somerset Metropolitan West Hanoi is the 364-unit project located in Hanoi’s new Central Business District and is expected to open in 2024

Double threshold for taxing housing rental incomes: HoREA www.vnexpress.net The Ho Chi Minh City Real Estate Association wants the threshold for the proposed rental income tax doubled to VND200 million ($8,700) a year. Referring to the government’s plan to slap a 10 percent tax on rental incomes of over VND100 million ($4,340), it said in a statement landlords are already taking decades to recoup their investment and the tax would only make the rental market less attractive.

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Colliers News Order and search of land plot reduce by 20% www.vnexpress.net Colliers Vietnam has just published a report on the development of the real estate market in Ho Chi Minh City and surrounding areas from the end of April to May, which fell during the peak of the pandemic outbreak with quite negative reactions from investors. In May, the market survey data of Colliers recorded that the amount of information querying (searching and ordering) land plots decreased by 15-20% compared to the previous month. Mr. David Jackson, CEO of Colliers Vietnam, said that the reason why the search and order volume for land plots cooled down quickly was because many investors had "broken" cash flow during the Covid-19 outbreak, typically buried capital. In particular, there were some cases where goods had to be sold at the same purchase price or sold below the expected price, even selling below cost due to financial pressure (using leverage). This heavily affected the liquidity of the land plot segment.

Order and search of land plot reduce by 20%

Vietnamese firms invest US$21.81 billion in overseas projects www.vov.vn Vietnamese investors poured a total of US$21.81 billion into 1,420 valid projects abroad during the opening five months of the year, according to the Ministry of Planning and Investment. Their numerous investment projects largely focus on mining and agro-forestry-fisheries sectors, with Laos, Cambodia, and Russia emerging as the top destinations for Vietnamese capital, making up the lion’s share with 23.7%, 13.1%, and 12.9%, respectively.

Việt Nam to issue more specific criteria in special investment incentives

www.vietnamnews.vn The Ministry of Planning and Investment (MPI) has announced plans to issue more specific criteria for special investment incentives to better attract foreign direct investment (FDI). The ministry is collecting opinions to finalise the draft of the Prime Minister's decision on special investment incentives, said Deputy Minister of Planning and Investment Nguyễn Thị Bích Ngọc.

How Vietnam transform traditional management into national population database?

www.vietnamnews.vn Until now, these two projects have been basically finished. The National Population Database has information of over 98 million Vietnamese citizens, and is updated daily from its local counterparts in 63 provinces and municipalities. It is available for connection to other databases of other ministries and localities in order to serve the administration reform process. colliers.com/en-vn

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

Colliers News New generation of industrial real estate www.reatimes.vn According to experts, the rapid development and expansion, and massive new investment in industrial real estate projects in localities have many potential risks because “eagles not only need nests” but also utilities. Therefore, the price stability at this time is an opportunity for industrial real estate investors to look back at the scale and mode of investment in industrial park development instead of just chasing prices. Mr. David Jackson - CEO of Colliers Vietnam said that the model played an important role in the sustainable development strategy, which was to help reduce resource exploitation, limit the impact on the environment while not affecting the productivity of enterprises. The linkage between industrial parks was also very important to develop the chain of goods production and logistics.

New generation of industrial real estate

KRX trading system to run officially at the end of this year www.vietnamnews.vn The stock trading system from the Republic of Korea, known as KRX, will be officially put into operation at the end of this year after a six-month trial run. The implementation of the KRX project, aiming to tackle system overloads which have troubled investors recently, was delayed last year due to the COVID-19 pandemic. HoSE would use all available resources to accelerate the implementation of the project this year, it said.

KRX trading system to run officially at the end of this year

Construction of major tourism site begins in Thanh Hóa www.vietnamnews.vn A ceremony to launch the construction of a tourism project worth more than VNĐ3.66 trillion (US$159.61 million) took place in Nghi Sơn Township of the north-central coastal province of Thanh Hóa on Wednesday. The project, covering 84.8 ha, is invested by the T&T Group. The site will have beachfront villas, a five-star hotel, a shopping area, a golf course, pedestrian zones and recreation facilities, among other amenities.

Bank and real estate giants team up

www.vir.com.vn Indochina Kajima Development Ltd., a joint venture from Indochina Capital and Kajima Corporation, last week signed a strategic partnership with VietinBank with the aim to provide the market with innovative real estate that addresses both current and future demands. With an investment commitment of $1 billion in Vietnam, Indochina Kajima aims to develop a portfolio of resorts, urban hotels, residential areas, offices, and industrial projects. colliers.com/en-vn

Colliers News The suburban retail market opportunities after Covid-19

and

growth

www.zingnews.vn According to Colliers Vietnam, under the impact of key infrastructure projects, typically the metro, the movement of investors and retailers to the suburbs will catch the growth wave. Experience in the world shows that the areas around metro stations are often rich in development potential. Busy commercial intersections in the world such as Ginza, Shibuya (Japan), Marina Bay Sands (Singapore), Times Square (New York) are all formed from the metro station area. Representative of Colliers Vietnam believes that the gap in diversity and service quality between the suburban area and the center will be shortened. This is also the driving force that makes many retail businesses flock to this area.

The suburban retail market and growth opportunities after Covid-19

Hanoi’s tourism performs well in the first haft of 2021, despite the pandemic www.vietnamisider.vn Despite the numerous difficulties due to the fourth outbreak of the COVID-19 epidemic, in the first half of 2021, Hanoi’s tourism sector performed a number of important tasks, with a focus on the restructuring of new tourism products and attracting domestic tourists. Total tourism revenue from domestic tourists was estimated at VND8.1 trillion, down 57% as compared to the same period last year.

Hanoi’s tourism performs well in the first haft of 2021, despite the pandemic

Malaysia's KAB ventures into Vietnam's renewable energy market www.vir.com.vn Malaysia-based mechanical and engineering organisation Kejuruteraan Asastera Bhd. (KAB) has inked a deal with Janakuasa Pte., Ltd. via its wholly-owned subsidiary KAB Energy Power Sdn., Bhd. to enter Vietnam’s renewable energy market. As reported by Focus Malaysia, KAB Energy Power and Janakuasa will form a special purpose vehicle to scoop up the majority stakes in three hydropower plant projects in the country with an aggregate installed capacity of 180MW.

M&As to return to property market: experts

www.vir.com.vn The property market is expected to recover and become more vibrant in 2021-22 when COVID-19 is controlled and many mergers and acquisitions are carried out. Many studies by research companies have indicated M&A activities will be back on track in 2021. Around 42 per cent of survey respondents predicted M&A to be worth US$3-4 billion this year. colliers.com/en-vn

Colliers News Tech giants enter the office market www.vnexpress.net Colliers Vietnam has just released the report Technology hubs in Asia are reshaping the region's real estate with the arrival of tech giants. Mr. David Jackson, General Director of Colliers Vietnam confirmed that Covid-19 caused difficulties for many industries, but for technology businesses, this is a period of peak development, so there are still plans to expand offices. This expert predicts that the landing of technology businesses in the office market in the Asia Pacific region is likely to continue throughout the epidemic season and may continue for the next half decade.

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

Danang calls for investors for three IZ projects www.vir.com.vn Danang People’s Committee is looking for the prime minister’s approval for the investment planning of three industrial zone projects representing a total investment capital sum of VND14 trillion ($608.7 million). These industrial zones (IZs) are three of the key projects that Danang wants to complete in the 2020-2025 period.

Danang to call investors for VND14 trillion for three IZ projects

Singapore tops the list of a total of 80 countries investing in Vietnam www.vietnamisider.vn Singapore tops the list of a total of 80 countries and territories investing in the nation this year with investment reaching US$5.64 billion, trailed by Japan at US$2.44 billion, and the Republic of Korea at US$2.05 billion, VOV reported. The MPI report indicates that foreign investors have poured US$5.27 billion of investment into the Southeast Asian nation this year, equivalent to 97.4% of the amount recorded during the same period from last year.

Vietnam offers best opportunities for European companies

www.vir.com.vn About 60 per cent of European companies working in ASEAN say Vietnam offers the best expansion opportunities in the region, according to a survey conducted by Standard Chartered Bank. “The ASEAN markets continue to offer huge opportunities for European companies, both for those looking to diversify and expand their investment and trade activities, and those who are well aware of the deep technological expertise and significant consumer base across the markets," Robert Newell, managing director for European Global Corporates at Standard Chartered. According to the survey, Vietnam, Malaysia, and Thailand feature as the most attractive markets in terms of sales or expansion opportunities for the majority of respondents.

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Colliers News Investors have “turned their back” on the real estate market because of the pandemic? www.reatimes.vn When being asked the pandemic lasted long with an increasing number of cases in Ho Chi Minh City, whether investors would “turn their back” on the real estate market, Mr. David-Jackson, CEO of Colliers Vietnam said that undeniably, at present, investors were much more cautious with their decisions. The fact that the market was “quiet” in May 2021 was a manifestation of this sentiment. “However, this does not mean that investors are “turning their back” on the real estate market, but more likely they are considering and re-evaluating many factors such as cash flow, investment portfolio and forecasts about the Covid-19 pandemic in the near future”, Colliers Vietnam expert emphasized.

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

Unit 1 of Vietnam Duyen Hai II Thermal Power Project 2x660MW was Officially Put Into Commercial Operation www.vietnaminsider.vn This project is located in the power generation industrial park of Economic Development Zone of Tra Vinh province, Vietnam, about 185 kilometers away from Ho Chi Minh City. The scale of construction is 2×660 MW supercritical coal-fired units, supporting docks and ash yards. The synchronous desulfurization and denitration system, smoke and dust, sulfur dioxide, and nitrogen oxide emissions are all superior to the local environment protection standards in Vietnam

Vietnamese economy expands at 5.61 per cent in H1 despite the pandemic

www.vietnamnews.vn The latest updates from the General Statistics Office (GSO) showed that the Vietnamese economy expanded by 5.64 per cent in the first half of this year, much higher than the growth rate of 1.82 per cent recorded in the same period of last year. Although the economic growth rate in the first half of this year was lower than the rate of 7.05 per cent and 6.77 per cent of the same periods of 2018 and 2019, respectively, before the COVID-19 pandemic, the macro-economy remained stable with recoveries in production and business, GSO’s Director Nguyễn Thị Hương said at a press conference on Tuesday in Hà Nội.

Construction of Long Thanh International Airport must be completed before Q2/2025

www.vir.com.vn The investors will have to complete the four component projects of Long Thanh International Airport before March 31, 2025 so that the airport can begin pilot operations in the second quarter. The deadline was set by Minister of Transport Nguyen Van The for the first phase of the Long Thanh International Airport project. Accordingly, the pilot operation is expected to start in the second quarter of 2025 and commercial operations would start in Q4 of the same year. colliers.com/en-vn

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