Monthly Real Estate News I June 2022 by Vietnam Realty

Vietnam Monthly Real Estate News June 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.

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Real estate investment in Ho Chi Minh City: What opportunities are there in Cu Chi, Hoc Mon? www.vietnamfinance.vn From another perspective, because of not yet fully developed, Hoc Mon and Cu Chi are considered the remaining "low-lying areas" of the real estate market in Ho Chi Minh City, there is still a lot of potential for development, worthy of attention from investors. According to Colliers Vietnam, real estate in Cu Chi and Hoc Mon have a lot of potential for price increase in the future. That is because the land fund in these two localities is still abundant and the price level is still low compared to other areas of HCMC. The infrastructure here is being invested and developed with many large-scale projects, capable of connecting inter-regional and with the Cambodian market.

Northwest of the city with Hoc Mon and Cu Chi districts will be the development direction that HCMC focuses on the future.

Foreign capital poured into Vietnam's real estate nearly tripled in 5 months www.thesaigontimes.vn Despite the scarce of new property supply, foreign investment inflows into Vietnam real estate in the first 5 months of 2022 nearly tripled compared to the same period last year. According to the latest updated data of the Ministry of Planning and Investment, in the first 5 months of this year, foreign investors have invested in 18 sectors out of a total of 21 national economic sectors. In which, the processing and manufacturing industry leads the way with a total investment of over 6.8 billion USD, accounting for 58.2% of the total registered investment capital.

Foreign capital poured into Vietnam's real estate nearly tripled in five months.

Da Nang will announce 34 large land areas to call for investment promotion www.laodong.vn On the morning of May 31, Da Nang City People's Committee held a press conference to provide information about the event "Da Nang Investment Forum 2022". On this occasion, the city's Department of Natural Resources and Environment said that, Da Nang will announce 34 land plots to call for investment promotion. The city will also take advantage of attracting domestic and foreign investment resources, especially foreign direct investment (FDI), especially in the context of opening the economy after a long time impacted by the COVID-19 pandemic.

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Tired of looking for an affordable apartment in Hanoi www.vtc.vn Affordable commercial apartments priced at less than VND 30 mil/m2 are gradually "disappearing" in the Hanoi market while the demand for "affordable" housing is still high. A representative of Colliers Vietnam said that most of the current supply was concentrated in the mid- and high-end segments. Affordable housing for low-income people completely "disappeared". This was very worrying because the real demand in this segment was still very large in the market.

Currently, the supply of affordable apartments in Hanoi has reached the lowest level in the past 5 years, pushing apartment prices up 13 consecutive quarters.

Some 268 mln USD to develop three northern IPs www.vir.com.vn The Government has given in-principle approval to developing three industrial parks (IPs) in Hai Phong, Bac Giang and Ha Nam, whose combined investment totals of around 268.62 million USD. They include the 410-ha Tien Thanh IP in Hai Phong’s Tien Lang district which costs nearly 4.6 trillion VND; the 85-ha expansion of Hoa Phu IP in Bac Giang’s Hiep Hoa district worth over 1.09 trillion VND; and the 49-ha expansion of Dong Van I IP in Ha Nam.

Illustrative photo.

HCMC develops housing along metro lines www.laodong.vn HCMC plans to develop housing along key public transport connections such as metro No. 1 (Ben Thanh Suoi Tien), metro No. 2 (Ben Thanh - Tham Luong), metro No. 3A (Ben Thanh - Tan Kien). Accordingly, from now to 2025, Ho Chi Minh City sets a target that the average residential area of the whole city will reach 23.5 m2/person. The total additional housing area in this period reached 50 million m2 of floor space, equivalent to 367 houses. In particular, Ho Chi Minh City prioritizes the development of high-rise apartments along metro lines. Currently, Ho Chi Minh City is planning 10 urban areas around metro stations No. 1. The planning scope is in 11 wards of Thu Duc City, with a total area of more than 577 hectares, 14.8 km long.

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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.

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Real estate enterprises launch a series of tricks to "stimulate" the demand to buy houses www.cafef.vn According to Mr. David Jackson, CEO of Colliers Vietnam, in the context of volatile market, investors have also clearly shown their willingness to share difficulties with customers. For customers with not too much initial accumulation, the incentives on price policy, payment extension or loan interest support will help them "breathe". "However, some of the "classic" principles that I have mentioned many times are objectively assessing one's own financial situation, deciding to use financial leverage appropriately, and assessing creditworthiness of the investor and considering the overall factors of the project such as location, traffic connection or the development potential of the surrounding area," advised Vietnam Colliers expert.

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

Boeing seeks new cooperation opportunities in Vietnam www.vir.com.vn A business mission led by Malcom An, senior managing director at Boeing, on June 1 worked with the Vietnam Air Traffic Management Corporation (VATM), seeking new business cooperation opportunities. The Boeing representative said that the company will strengthen comprehensive cooperation with Vietnam in the aviation industry.

Representatives of Boeing and VATM at the meeting on June 1

4 rural districts in Ho Chi Minh City to be upgraded to municipal-city, except Nha Be to be urban district www.laodong.vn The districts of Cu Chi, Hoc Mon, Binh Chanh and Can Gio are oriented to develop into the municipal-city of Ho Chi Minh City. Particularly, Nha Be district is oriented to become a satellite urban district. On June 2, the People's Committee of Ho Chi Minh City held a conference to deploy scientific projects (detailed outlines of branch projects) under the project of investment and construction of rural districts to urban districts or municipal-city of Ho Chi Minh City in the 2021-2030 period. Branch projects, including: urban economy; urban culture; urban infrastructure; urban people; state management. At the conference, the leaders of 5 districts also informed about the future planning and urban development orientation after transforming the rural district into an urban district or municipal-city of Ho Chi Minh City. Accordingly, the districts oriented to the municipal-city of Ho Chi Minh City include: Cu Chi, Hoc Mon, Binh Chanh, and Can Gio. These proposals are still under discussion.

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The global supply chain may make Vietnam a new logistics hub www.thuonghieuvaphapluat.vn In Vietnam, the demand for warehousing is also increasing due to the shortage of containers and ships because the supply chain crisis has created a strong impact on international freight transport, increasing the demand for storage. Besides, according to Mr. David Jackson - CEO of Colliers Vietnam, the development of the supply chain is likely to continue its strong growth momentum due to many favorable objective conditions, including the dynamism of e-commerce. In fact, people's consumption behavior has changed more drastically after the outbreaks of the Covid-19 pandemic, making online shopping even more popular and the need for warehousing and logistics also increased sharply.

The global supply chain may make Vietnam a new logistics hub

Proposal: payments of real estate transactions via bank www.vnexpress.net The Ministry of Finance recommends to fulfill regulations on real estate transactions. Therefore, all payments should be conducted via bank transfer to manage tax collection better. The implementation of transactions via banks, according to the Ministry of Finance, helps to transparently control transactions of industries, serving asset transaction management, real estate and tax management in particular. In addition to adding regulations on payment via banks, the Ministry of Finance also proposes to review regulations on real estate transfer for amendments in order to be consistent and synchronous.

Proposal: payments of real estate transactions via bank

Indian firms intend to further expand in Vietnam www.thesaigontimes.vn One-fifth of Indian companies that have operations in Southeast Asia or expect to do so have plans to expand their businesses in Vietnam in the next two years. These are some of the key findings from HSBC Navigator: SEA in Focus that surveyed more than 1,500 companies from six of the largest economies in the world, comprising China, France, Germany, India, UK and US, all of which have operations in Southeast Asia or have plans to do so in the future. The survey gauges the sentiment of companies on doing business in Southeast Asia, with a particular focus on trade, digitization and sustainability. The survey also shows that 26% of Chinese corporates in Vietnam are looking to prioritize growth here over the next two years.

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Optimism about the real estate market www.thitruongtaichinhtiente.vn Mr. David Jackson - CEO of Colliers Vietnam said that, in terms of policy, how the authorities made the next specific decisions with strict control of real estate credit would have an important impact on developments in the apartment, townhouse and resort real estate segments. Policies to regulate capital "flow" more into the manufacturing industries and towards people with real housing needs to help them get a place to live were very important and necessary.

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

Construction of $103mn domestic terminal proposed for airport in northern Vietnam www.tuoitrenews.vn The Ministry of Planning and Investment has proposed Prime Minister Pham Minh Chinh approve a VND2.4 trillion (US$103.4 million) fund for the construction of Terminal 2 at Cat Bi International Airport in the northern Vietnamese city of Hai Phong. The Airports Corporation of Vietnam (ACV) will take charge of the funding, according to the planning ministry’s proposal. Terminal 2 would have a designed capacity of five million passengers per year and a duration of 50 years.

Cat Bi International Airport in Hai Phong City, Vietnam.

HCMC ring road to get funding priority: parliament chairman www.vnexpress.net HCMC will be allocated funds soon to build and complete Ring Road No.3 connecting it with neighboring industrial hubs in 2025, says National Assembly Chairman Vuong Dinh Hue. The "urgency" of the project has occasioned funding priority for it, Hue said at an NA meeting Monday. The project will be allocated with enough capital for completion in 2025 so that it could become operational in 2026, he said. All stakeholder localities have agreed that completing the road is an urgent task for tackling chronic gridlock in several areas and creating a driving force for economic and social development in the Southern Key Economic Region, which comprises HCMC, the industrial hubs of Dong Nai and Binh Duong, and the provinces of Ba Ria-Vung Tau, Tay Ninh, Binh Phuoc, along with Mekong Delta provinces Long An and Tien Giang.

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Vietnam to build 5,000 kilometers of highway by 2030 www.vietnamnet.vn Since April 2021, Prime Minister Pham Minh Chinh has had working sessions with the Ministry of Transport (MOT) to discuss the plan on building highways in 2021-2025, with a vision towards 2030. The Prime Minister stressed that building 5,000 kilometers of highways in the next 10 years is an important political task. The development of highways in 2001-2020 in Vietnam and the experiences from other countries in the region and the world shows that this creates an important driving force for socio-economic development of localities, regions and the country, improves national competitiveness and ensures the national defense and security.

Vietnam to build 5,000 kilometers of highway by 2030

HCMC drives transport infrastructure to speed economy recovery www.vietnamplus.vn Ho Chi Minh City is implementing a programme that seeks to restore capital resources for investment in transport infrastructure to drive socio-economic recovery and growth for 2022 – 2025. The fourth wave of COVID-19 came as a severe blow to the southern economic hub. Reopening has meant that work has sped up on a host of projects which had been worked on slowly or postponed throughout the pandemic. In addition, many programmes for regional connectivity have gone ahead. HCM City is sparing no effort to secure resources to fund transport development; and the southern key economic region is waiting for ‘a push’ from traffic projects, mostly driven by the city, to pave the way for its socio-economic recovery and growth in years to come.

The Thu Thiem 2 bridge in downtown HCM City

VN central bank reports VND2.2 quadrillion worth of real estate loans, points out risks www.vietnamnet.vn The State Bank of Vietnam (SBV) has submitted to National Assembly’s deputies a report on issues raised at the third session of the 15th National Assembly, noting risks in real estate, securities and corporate bond lending. SBV reported that as of the end of April 2022, the total outstanding loans to the real estate sector had reached VND2,288,278 billion, an increase of 10.19 percent over the end of 2021, accounting for 20.44 percent of total outstanding loans of the entire economy, while the bad debt ratio was 1.62 percent. SBV says real estate is one of the risky sectors for banking operations and needs strict control.

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Colliers News Rental rate increases, townhouse owners find it difficult to find customers www.thanhnienviet.vn Assessing the type of commercial leasing in the near future, Mr. David Jackson, CEO of Colliers Vietnam said that, along with the recovery of economic activities, the demand for business premises would also gradually increase again. Currently, due to the difficult market, many homeowners still applied an average discount of about 10-15% compared to before the pandemic. This was a pretty good time to look for space when prices were still relatively soft and there were many options for tenants. If the Covid-19 pandemic continued to be effectively controlled and did not cause many negative impacts, in a few months, rental premises would have the same price as the pre-pandemic period.

Mr. David Jackson CEO of Colliers Vietnam

German-invested firm plans three wind power plants in Lang Son www.vietnamplus.vn

Chairman of the Lang Son Provincial People’s Committee Ho Tien Thieu held a meeting with BayWa r.e. Wind Projects Vietnam Co. Ltd. on June 8 to discuss investment in wind power projects in the northern mountainous province. Daniel Gaefke, Director of Projects for the Asia-Pacific region at the Germany-based BayWa r.e., said after nearly two years of surveying, his company is planning to invest in three wind power plants in the districts of Van Quan, Cao Loc and Loc Binh.

Daniel Gaefke, Director of Projects for the Asia-Pacific region at BayWa r.e., speaks at the working session with Lang Son officials on June 8.

Japanese firm opens 3.9-trillion VND resort in Da Nang www.vietnamnet.vn The Mikazuki Hotel Group opened the 13ha Mikazuki Japanese Resort & Spa in Lien Chieu District, Da Nang on June 8. Costing 3.9 trillion VND (168.16 million USD), the project is located in Lien Chieu district, offering locals and tourists new Japanese-standard tourism services. It features a 22-storey hotel with 294 rooms and an indoor water park, the biggest of its kind in the central region. Odaka Yoshimune, chairman of the group, said Mikazuki will invest in a series of new projects in Da Nang, including a footbridge and a night street in Lien Chieu. Related procedures will be completed for these projects to begin in 2023 in celebration of the 50th anniversary of Vietnam-Japan diplomatic relations, he said.

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Colliers News CEO Colliers Vietnam: Learning from Singapore to develop social housing www.vnexpress.net Mr. David Jackson, CEO Colliers in Vietnam confirmed, although Singapore's social housing development model was not completely suitable for Vietnam, there were still lessons that could be learned. Firstly, social housing in this country was considered as a social asset, the goal of which was to ensure equal access to housing and limit economic and social distortions associated with property ownership. Second, because it was considered as a social asset, HDB housing clusters were developed mainly based on the approach of creating a place to live, that was, building a community and living environment, not just focusing on the number of units and selling price. Another issue of concern was to ensure affordable social housing for people with real needs.

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

Why more European firms are choosing Vietnam over China www.vnexpress.net

A combination of geopolitical tensions and higher costs are pushing large firms to look for alternative production sites. Vietnam's strong economic performance in recent years has drawn the attention of European firms. Vietnam was one of the few Asian countries that did not experience an economic contraction during the coronavirus pandemic in 2020 and 2021. This year,Vietnam's GDP is expected to grow by around 5.5 percent, according to the World Bank.

While China will remain an essential production site, Vietnam offers an attractive alternative.

Vietnam: ideal destination for global tech giants www.vir.com.vn Vietnam is again in the spotlight after Apple’s move to shift production activities to this Southeast Asian country, according to TRT World page of Turkish Radio and Television Corporation. This move showed that Vietnam has emerged as a preferred manufacturing destination for global tech giants. Even before the COVID-related supply chain disruptions, rising tension between US and China had prompted tech companies to shift production to other countries, notably to Vietnam. All of this has helped Vietnam, a country of 100 million people, become one of the fastest-growing economies in the world.

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Colliers News Workers' housing: Light and dark colors (Lesson 5): A plan from practice www.tinnhanhchungkhoan.vn Mr. David Jackson, CEO of Colliers Vietnam: As for Vietnam, many models have been proposed to develop social housing for low-income population groups, including workers in industrial zones. With the motto of focusing on people and learning from Singapore's experience, the more social housing projects are built in a sustainable and inclusive way, the more people in need have access to affordable housing which is close to workplace. To accelerate this process, meet the urgent need for social housing, perhaps, Vietnam needs the handshake of the public, private and non-profit sectors.

Becamex's social housing area in Binh Duong sells for workers only 100-150 million VND/unit

FDI attraction exceeds 11.71 billion USD in first 5 months of 2022 www.vietnamplus.vn As of May 20, 2022, total newly registered and adjusted capital together with capital contributions and share purchases by foreign investors surpassed 11.71 billion USD in the first five months of this year, equivalent to 83.7 percent of the same period last year.

Source: Ministry of Planning and Investment; data as of May 20, 2022

More highway projects to be funded with state money www.vietnamnet.vn Although many people think there is no regulation about toll collections used for expressways invested by the state, the Government says there is a legal basis for this. The ongoing National Assembly is planning to consider several large transport projects. Transport projects awaiting the National Assembly’s approval alone have huge total investment capital of VND245 trillion and most of them are developed with state money.

Banks told to control lending for real estate projects www.vietnamnet.vn National Assembly deputies propose that there should be reasonable monetary policies to ensure the healthy development of the real estate market. The central bank requests credit institutions to keep cautious when granting loans and regularly re-assess mortgaged assets to identify risks. Real estate outstanding loans by the end of 2020 reached VND2.2 quadrillion. Regarding the housing supply for low-income earners, Vietnam is applying many policies. Decree 100 regulates the lending via the Vietnam Bank for Social Policies, while the 2% interest rate subsidy package comprises of the capital for social housing development, housing for workers and upgrade of old apartments. colliers.com/en-vn

Vietnam’s economic recovery remains strong despite global uncertainties: World Bank www.nhandanonline.vn The World Bank (WB) released the June edition of its monthly Vietnam Macro Monitoring on June 13, highlighting that the economic recovery remained strong despite heightened global uncertainties. According to WB's monthly Vietnam Macro Monitoring, Vietnam's economy showed a strong recovery in industrial production, retail sale, and tourism. However, CPI Inflation rose 0.3% from April to May.

At Cat Lai ICD in Ho Chi Minh City.

Ten more property firms cry for help www.thesaigontimes.vn After 95 real estate enterprises in HCMC proposed removing obstacles to 102 housing projects, ten others have made the same petition as their 11 projects are having difficulty with procedure. HCMC Chairman Phan Van Mai later directed the Department of Construction to coordinate with the Departments of Natural Resources-Environment, Planning-Investment, Finance, Planning-Architecture and Justice, the municipal inspectorate, the Department of Tax and other relevant agencies to weigh the proposals of enterprises. They were also asked to work with the investors of the projects. If the removal of difficulties is beyond their jurisdiction, they should report to the city government.

An apartment building in HCMC

Vietnam to improve institutions to attract foreign investment www.vir.com.vn In view of the important contributions of investment capital to the local economy, Vietnam needs immediate solutions to attract more FDI and strengthen its sources, according to experts. According to data, after 35 years of implementing the open-door policy to attract FDI, up to now, Vietnam has received investment from 140 countries and territories around the world. Foreign capital flows have been present in most localities in the country with projects invested by big global names such as Intel, Microsoft, Foxconn, Samsung, Sanyo, Sony, Fujitsu, Toshiba, and Panasonic.

Over VND8.7 trillion proposed for Yen Bai-Lao Cai Expressway expansion www.thesaigontimes.vn The Vietnam Expressway Corporation (VEC) has proposed expanding the Yen Bai-Lao Cai Expressway, part of the Noi Bai-Lao Cao Expressway, from two to four lanes. The project requires an estimated VND8.74 trillion (US$377.2 million).

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Colliers News Commercial and serviced apartment - The "Golden eggs laying hen" is sought after by investors www.reatimes.vn Mr. David Jackson, CEO of Colliers Vietnam also assessed that the profit from leasing commercial products could reach 12%/year. In addition, owners of commercial and serviced apartments, depending on their needs, could consider living or using them for business purposes, which was very flexible. “This type of property has always been one of the most powerful and sustainable properties in the market. This has also been proven by the market reality when the value of commercial apartments can increase by 15-30% per year”, commented CEO of Colliers Vietnam.

Mr. David Jackson CEO of Colliers Vietnam

Hanoi pushes investment into industrial zones in 2022 www.vir.com.vn

Hanoi Industrial and Export Processing Zones Management Authority (HIZA) aims to complete one new industrial zone (IZ) and finalise investment procedures for two or three other industrial and hi-tech areas this year. The message was delivered in a meeting held during the week of June 6 to sign cooperative minutes between HIZA and the the people’s committees of Hanoi’s different districts on bolstering state management efficiency for the zones’ operation.

Hanoi aims to shape five new IZs during the 2021-2025 period

The US$1 billion Lego project and the FDI "filter" www.vietnamnet.vn The issuance of an investment certificate to Lego's ‘green’ project may open a new chapter in attracting foreign investment in Vietnam. The US$1 billion project of Lego Group (Denmark) was officially awarded an investment registration certificate last week. Also, there must be a "filter" right from the start, so that Vietnam can decide on whether to choose a project. When summarizing 30 years of Vietnam’s FDI attraction, this issue was discussed. When the Politburo issued Resolution No. 50/NQ-TW on orientations to perfect institutions and policies, and improve the quality and efficiency of foreign investment cooperation, this issue became more significant.

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Colliers News Laimian An Suong shophouse: Outstanding values to anticipate investment trends www.sggp.org.vn Commenting on this market, Mr. David Jackson, CEO of Colliers Vietnam shared, shophouses occupied the most favorable locations for doing business in buildings, so they were very suitable to rent out for shops, language centers or headquarters, offices of enterprises. Even in difficult times such as during severe outbreaks of the Covid-19 pandemic, owners of shophouses could still earn revenue through conversions, such as subleasing to online operating enterprises, providing online learning services, or technology enterprises, online fashion enterprises.

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

RoK firms expand investment in research and development in Vietnam www.vir.com.vn Leading enterprises from the Republic of Korea (RoK) including Samsung Electronics, Naver and Revu Corporation have further promoted investment in research and development (R&D) centres in Vietnam to fully tap high-quality and low-cost human resources.

Samsung Electronics Vietnam plant in Bac Ninh

Social housing is bustling again www.thanhnien.vn The social housing segment is showing many signs of revival, even a boom, creating opportunities for the poor to buy houses. Vingroup is about to launch about 500,000 social housing units under the Happy Home brand nationwide with the selling price of each apartment from 300 to 950 million VND. Previously, Hung Thinh Group announced to invest in about 100,000 social housing units with prices from 20 million VND/ m2. Thang Loi Group also participates in the market with about 10,000 units, priced at less than 1 billion VND/unit. These projects not only help realize the dream of owning a home for workers, but also provide them with a modern and civilized living environment, and at the same time contribute to promoting social and economic security in localities.

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Colliers News Real estate market after the pandemic, when will the compressed spring back? www.tapchitaichinh.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, with nearly VND 114,000 bil of the economic stimulus package expected to be invested in infrastructure projects, it would be an important driving force for all real estate segments to have additional favorable conditions for development.

Real estate market after the pandemic, when will the compressed spring back?

Apple suppliers eye further expansion in Vietnam www.vir.com.vn More Apple suppliers are keen on expanding their manufacturing operation in Vietnam as part of their relocation plan to mitigate supply chain headwinds. Taiwanese contract manufacturer Pegatron is the latest Apple supplier to announce its plan to expand its manufacturing site in Vietnam. Pegatron has made an earlier announcement to invest up to $1 billion into Vietnam.

Apple suppliers eye further expansion in Vietnam

Housing prices continue to rise in 8 provinces and cities www.phunuonline.vn The Ministry of Construction has just conducted a survey, collected data, and determined the volatility of transaction prices of some types of real estate in March 2022 and the first quarter of 2022 in eight provinces and cities including: Hanoi, HCMC, Da Nang, Hai Phong, Binh Duong, Dong Nai, Khanh Hoa and Ba Ria - Vung Tau. The results show that in March 2022, housing prices in these eight provinces and cities all increased.

Vietnam to ban insurance companies from real estate investment www.vnexpress.net Insurance companies will not be allowed to invest in real estate starting Jan. 1, according to the latest changes in the insurance law that legislators have voted on. These companies can, however, buy real estate for the purpose of establishing headquarters or offices to operate, or to rent the unused parts of their real estate, said the modified law that nearly 92.5 percent of National Assembly delegates voted in favor of Thursday morning.

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Colliers News What properties should investors put their money into when the market fluctuates? www.doanhnhan.vn Due to many advantages and limited supply, the price of shophouse apartments has continuously increased in recent times, currently at an average of about VND 150 mil/m2. Despite the high price, this is still the preferred type of investor. According to Mr. David Jackson, CEO of Colliers Vietnam, this is a type of helping owners find diverse sources of income. Shophouses occupy the most favorable locations for doing business in buildings, suitable for lease as shops, foreign language centers or headquarters and offices of enterprises.

What properties should investors put their money into when the market fluctuates?

FDI lifts Vietnam up global value chain www.vir.com.vn Vietnam, like many other East and Southeast Asian countries, is further climbing up the global value chain (GVC) thanks to the positive effect of the utilisation of foreign direct investment (FDI), according to the latest report by Hinrich Foundation. The opportunities are plentiful for countries to move up the global value chain, said Riccardo Crescenzi, Professor of Economic Geography at London School of Economics, at a press conference announcing the report “Climbing up global value chains: Leveraging FDI for economic development” this week.

Footwear are made at Victory International Co in the southern province of Long An.

Vietnam real estate has the most development momentum in Asia www.zingnews.vn Vietnam real estate market is forecasted to have a very positive outlook in the next 20 years because the level of urbanization remains low and is taking place strongly. "In the context of the Asian real estate market with many uncertainties, Vietnam still maintains its relative competitiveness in terms of prices and resources compared to other countries in the region. Real estate prices in our country continuously increase ", Mr. Truong Tri Vinh, Standing Deputy General Secretary of the Vietnam Real Estate Brokers Association said at the seminar "Real estate market in the trend of digital transformation" taking place in Da Nang on June 17. Dr. Can Van Luc, senior economist, said that the real estate market is playing the role of a bridge connecting industries and markets in the real estate value chain. There are 35 professions and fields related to the real estate market. In which, 4 big industries are most related to real estate, including construction; tourism; accommodation; finance - banking.

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Colliers News How to choose an apartment to become an asset without being "liabilities"? www.dantri.com.vn Representative of Colliers Vietnam - a member of Colliers International, a leading unit in the field of real estate services, said that home buyers, especially those who bought luxury apartments for the purpose of enjoying life, understood that quality or architecture was not enough to ensure that they had a comfortable living experience, but the operation management process played the role of "soul" in creating the best living conditions for them.

The location of the lifeline will help the apartment constantly increase in value

PM issues action plan on Mekong Delta development www.vir.com.vn The Mekong Delta region is expected to develop agricultural centres in association with specialised farming zones and urban areas. The plans were laid out in Politburo Resolution No. 13 on developing the region until 2030. Under the resolution, an expressway system connecting the southeastern region will be completed by 2030 together with a system of seaports and international border gates. Focus will also be placed on developing digital infrastructure to build the e-government and digital economy.

Rice is harvested in the Mekong Delta's Vinh Long province.

Ho Chi Minh City calls for investments in nearly 200 projects www.vietnamplus.vn The Ho Chi Minh City People’s Committee has approved a list of 197 projects worth 43 billion USD calling for investments in 2022, as proposed by the municipal Department of Planning and Investment. The projects include the HCM City-Moc Bai expressway with total investment capital of 15.9 trillion VND (684.31 million USD), two elevated roads with combined investment of 32.9 trillion VND, and 12 urban railway projects valued at more than 427.37 trillion VND. There are also environment projects, water and waste treatment, and flooding handling ones worth 40 trillion VND, along with others on urban development and housing with combined investment of some 52 trillion VND.

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Colliers News Real estate enterprises "think of a plan" to stimulate liquidity www.baodautu.vn According to Mr. David Jackson, CEO of Colliers Vietnam, the preferential policies applied are the result of careful analysis of macroeconomics, demand, liquidity as well as market sentiment by investors. Incentive programs applied by many investors during this period show that they are willing to share profits and accept small profits. "People with real housing needs should take advantage of supportive policies from investors to buy products at a reasonable price, which is not easy to get in a normal market period," adviced David Jackson.

To stimulate demand, the preferential policies offered by investors are now more practical, reducing part of the costs for customers to investment.

Danang Hi-Tech Park courts $59 million project from US investor www.vir.com.vn

Danang Hi-Tech Park and Industrial Zones Management Authority released a decision on June 20 giving the nod to an investment proposal of US investor Vector Fabrication Inc which wants to land a project valued at around $59.4 million in the park. The project engages in manufacturing printed circuit boards and micro electro mechanical systems with a high level of automation and specialisation and covers 40,000sq.m of space.

Danang Hi-Tech Park is home to many foreign investors

Vietnam seaport logistics prospered, supporting exports www.nhipcaudautu.vn Tan Cang - Cai Mep international port has just entered the top 11 most efficient container ports in the world, announced by the World Bank and the financial news agency S&P Global Market Intelligence. According to the DHL Global Connectivity Index 2021 Report, Vietnam is rated as one of the few countries with impressive results in terms of improving global connectivity. In 2021, despite the great impact of the COVID-19 epidemic, the volume of international transport import-export goods of Vietnam's shipping fleet achieved a rare growth, increasing by 54% compared to 2020.

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Colliers News Tan Uyen is upgraded to the city in 2023, how is the real estate market going? www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam, said that areas with the policy of upgrading to cities or districts, in the early stages, the real estate price threshold was still relatively soft, but when the infrastructure was completed, the price level would fluctuate greatly. Along with 3 existing cities, Tan Uyen was the following name that was expected to make a great step forward in future development. "Planning information is the most important "catalyst" that makes the real estate market in the relevant area explode. Once there is official information and a clear roadmap, investors will be confident to promote projects while individual investors also have a mentality to "race" to hold real estate as soon as possible", expert Colliers Vietnam emphasized.

Tan Uyen is upgraded to the city in 2023, how is the real estate market going?

Industrial and export processing zones urged to upgrade to attract FDI www.vir.com.vn According to Chairman of the Vietnam International Arbitration Centre (VIAC) Vu Tien Loc, as Vietnam moves towards industrialisation and modernisation, IPs and EPs have played an important role in attracting investment in manufacturing and contributing to the State budget. Vietnam's industrial parks and economic and export processing zones need to overcome weaknesses to attract further high-quality foreign direct investment, experts have said.

A part of the Pho Noi A Industrial Park in Hung Yen province.

State Bank of Vietnam wants to tighten loans to buy expensive houses www.zingnews.vn The State Bank is expected to make stricter regulations (processes, conditions, procedures ...) for loans to serve life needs to buy houses or buy land to build houses with large amounts of money. This is one of the amendments and supplements that the State Bank is making in the draft Circular amending Circular 39/2016 regulating lending activities of credit institutions, foreign bank branches towards customers.

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Over VND17 trillion proposed for two North-South expy sections www.thesaigontimes.vn The Bai Vot-Ham Nghi and Ham Nghi-Vung Ang expressways, which are part of the big-ticket North-South expressway project, are estimated to cost over VND17 trillion, according to the Thang Long Project Management Board. The project management board has sent the pre-feasibility study of the two subprojects to the Ministry of Transport for consideration and approval, Lao Dong newspaper reported.

A view of the HCMC-Long Thanh-Dau Giay expressway, which is part of the North-South Expressway

Logistics chances get off ground in Danang www.vir.com.vn Alluring new development thanks to its sustainable investment attraction, Danang is cementing its position as a large logistics centre for the central coast and Central Highlands. As a business that provides services connected to warehousing, land, and transportation with more than 200 trucks serving the inner city network and outside major cities, MTV ITL Logistics Danang held a groundbreaking ceremony in March for the building of the ITL Logistics Danang Centre.

Logistics chances get off ground in Danang

Pulling private capital to Ho Chi Minh City www.thanhnien.vn With a list of nearly 200 projects, capital needs to mobilize up to nearly 43 billion USD, Ho Chi Minh City needs to change mechanisms, policies and procedures to attract private investors to participate. In contact with businesses, Mr. Phan Van Mai, Chairman of the City People's Committee, said that Ho Chi Minh City always opens its doors to welcome investors. In the coming period, the city will have to do more to improve the business investment environment and digital transformation to create a more transparent investment environment. The city is also proposing and interested in forming a specific mechanism to attract strategic investors to develop railways and waterways connecting the region between the city and 7 neighboring provinces and cities to promote urban development of the city region.

HCMC: Real estate market has many prosperities www.laodong.vn The socio-economic situation has had many positive changes thanks to the Government's support, recovery and development policies, which has led to the recovery and growth of the real estate market in Ho Chi Minh City during the first months of 2022. In the first quarter of 2022, the supply of new housing in Ho Chi Minh City continues to be replenished from projects that have been implemented and launched for sale in the next phases. In the secondary market, the supply of apartments increased slightly by 3.1%, while the supply of villas and townhouses increased sharply by 38.9% compared to the previous quarter. The demand for buying houses and other types of real estate tends to increase. However, the number of house transactions in the first months of the year was still mainly mid- and high-class apartments. colliers.com/en-vn

Colliers News What is the plan when the apartment expires after 50-70 years? www.tapchitaichinh.vn “Applying the term of apartment ownership also helps to solve difficulties in urban management and development. Like other types of housing, the quality of apartment buildings decreases as they get closer to the end of the useful life (determined by design life and actual age), affecting the safety of life and property of residents. Applying the term of apartment ownership means there will be many opportunities for redevelopment or change of land use purpose when the term ends, thereby it better serves social needs in the future. This will also help create 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 Jackson, CEO of Colliers Vietnam emphasized.

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

High taxes will be imposed on people who have lots of real estate www.nld.com.vn Regarding the improvement of financial mechanisms and policies on land, Resolution 18 requires the review of policies and laws on tax on agricultural and non-agricultural land use, development of policies and laws on land use tax in accordance with international practices, appropriate to the level of development, specific conditions and appropriate roadmap. "Specify a higher tax rate for people with large land holdings, multiple properties, land speulation, slow land use, and abandoned land" - Resolution 18 stated.

Delegates attending the 5th Central Conference

Da Nang invites investment in seaports, financial centers, creative spaces www.tuoitre.vn Speaking to potential investors at the Danang Investment Forum 2022, Mr. Le Trung Chinh, Chairman of Da Nang City People's Committee, said that the city will publicize the planning information of functional subdivisions according to the Da Nang General Planning Adjustment Project until the end of 2030, vision to 2045. Simultaneously inform investors of land fund and key projects calling for investment. Introducing key projects that need to attract investment, Mr. Ho Ky Minh, vice chairman of Da Nang City People's Committee, said the city is focusing on attracting investment in Lien Chieu port project; complex project of financial, commercial, entertainment, casino and high-class apartment buildings; Danang Creative Space project; international trade center project; international hospital project; nursing home project; international school project. colliers.com/en-vn

Local authorities warned of easy discipline when receiving FDI www.vietnamnet.vn Experts have pointed out that many localities accept small-scale foreign-invested projects which don’t have much significance to the localities, and allocate too much land to these projects. Some localities just pay attention to immediate benefits, and they don’t have long-term strategies. They just strive to attract as many investors as possible, and they don’t pay attention to the quality of investments, thereby affecting the general balance of the national economy.

Local authorities warned of easy discipline when receiving FDI

Enterprises entitled to tax and fee incentives when investing in hi-tech parks www.thesaigontimes.vn In the period of 2022-2025, Ho Chi Minh City Hi-Tech Park focuses on calling for investment in projects such as logistics, services, and smart factories for lease serving 4.0 technology industries with preferential policies on business income tax, import and export tax and land rent price. These are the notable contents at the conference on investment promotion in high-tech zones organized by the Management Board of Ho Chi Minh City Hi-Tech Park this morning (June 27). "Criteria for selecting investors are based on the company's capacity of experience, finance, technology and socio-economic efficiency and environmental protection" - according to Ms. Le Bich Loan, Deputy Head of the Zone Management Board of High-tech Parks Ho Chi Minh City

Table of results of investment attraction of the hi-tech park.

Binh Duong - attractive destination for green industries: EuroCham official www.vietnamplus.vn Secretary General of the European Chamber of Commerce (EuroCham) Erwin Debarea has said the southern province of Binh Duong has potential to attract investors in green industries such as high technology, digital transformation, climate change mitigation and environmental protection towards green growth and sustainable development - areas of European investors' interest and priority. At a meeting with provincial leaders on June 27, Debarea, who was leading an EuroCham delegation to explore the investment environment in the southern industrial hub, highlighted the attractiveness of Binh Duong. He pointed out two major reasons making Binh Duong a good choice for European investors: transparency and effective support for investors. Debarea expressed hope that leaders of Binh Duong will continue to assist European firms in expanding their operations in the locality, thus contributing to promoting the strategic partnership between Vietnam and Europe and EuroCham members.

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Colliers News The calculation of trillions of An Cuong Wood www.nhipcaudautu.vn Mr. David Jackson, CEO of Colliers Vietnam, believes that investment in real estate by manufacturing enterprises can be their multi-industry strategy after having analyzed the possibility that the main business industry will step into the saturation phase. With high real estate demand and strong growth momentum of the Vietnamese economy, real estate will still be a potential and profitable field for businesses with appropriate strategies.

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

Vietnam attracts more than 14 billion USD of FDI in H1 www.vnexpress.net

Foreign investors poured more than 14 billion USD into Vietnam as of June 20, down nearly 9% over the same period last year. Foreign investors have invested in 18 out of 21 economic sectors. In which, the processing and manufacturing industry continued to lead with a total capital of nearly 8.84 billion USD, accounting for nearly 63% of the total registered investment capital. The real estate business ranked second with more than 3.15 billion USD, accounting for 22.5%.

Wind power propellers in Huong Hoa district, Quang Tri.

Tay Ninh: Announced detailed planning of logistics center, ICD inland port 259 hectares wide www.thanhnien.vn On June 28, Tay Ninh Provincial People's Committee announced that it had announced the detailed construction planning project of 1/500 scale project of the Logistics Center, ICD inland port and Tay Ninh General Port in Hung Thuan commune, Trang Bang town, Tay Ninh province. The project of Logistics Center, ICD and Tay Ninh General Port with an area of 259 hectares plays an important role in the development of waterway and road transport between Tay Ninh and the southern key economic region, especially Ho Chi Minh City. According to Tay Ninh Provincial People's Committee, the investment in a Logistics Center, ICD inland port and Tay Ninh General Port will make the inland waterway route on the Saigon River become the main inland waterway for transporting goods connected to the key economic regions in the South. Accordingly, goods from Cambodia will go through international border gates in Tay Ninh and Binh Phuoc areas to Cat Lai port, Saigon port and other ports in Ho Chi Minh City, Ba Ria - Vung Tau, opening big opportunities on water transport for Tay Ninh.

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Colliers News Effectively exploit the land bank around the cities in Hanoi and Ho Chi Minh City www.baodautu.vn According to Mr. David Jackson - CEO of Colliers in Vietnam "In order to maximize the economic and social benefits from developing ring road projects, specific taxes can be imposed in areas with high property prices to financially support the ring road projects, supporting the development of additional infrastructure along these roads, or compensating 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 development and sustainable".

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

Vietnam continues to be one of the top FDI receivers in ASEAN www.vir.com.vn Vietnam continues to be a magnet to foreign direct investment (FDI) in ASEAN as it is transforming into a production base for tech giants. Thinking of FDI-driven economic success stories, Vietnam naturally stands out. The country has turned itself into a rising star in global supply chains, gaining a substantial global market share in many sectors including textiles, footwear, and consumer electronics.

Vietnam continues to be one of the top FDI receivers in ASEAN

Korean enterprises want to invest in energy and logistics projects in Hai Duong www.vietnamfinance.vn In a row, two enterprises in Korea came to investment research in Hai Duong, in which Hanwaha Energy Corporation Co., Ltd. wants to invest in energy and logistics projects and Hi-Tech Farm Co., Ltd. wants to invest in the high-tech agricultural project in this locality. Hai Duong is completing the provincial planning, integrating many locations that can be exploited for energy production and logistics investment. The zoning plan can also be adjusted to suit the project scale desired by the business. At the meeting, Secretary of Hai Duong Provincial Party Committee Mr. Pham Xuan Thang said that one of Hai Duong's development strategies is to become the energy and logistics center of the North, so the province welcomes businesses to come to study and investment research.

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