Monthly Real Estate News | June 2019 by Vietnam Realty

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Daily Real Estate News Highlights Vietnam - 03 June 2019

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

HCM City solicits investment in transport infrastructure Vietnam Plus Ho Chi Minh City requires huge investment in infrastructure, and authorities have solicited investment of some 42 billion USD in the five-year period until 2020. Nguyen Thanh Phong, Chairman of the municipal People’s Committee, said challenges like traffic problems and flooding have been acting as road blocks to economic HCM City’s metro line No 1 is being built between Ben Thanh Market development and competitiveness. in District 1 and Suoi Tien Tourist Hanoi seeks cooperation chances with Norway in urban Park in District 9 development VOV Chairman of the Hanoi People’s Committee Nguyen Duc Chung has had a working session with the Innovation Norway and seven other leading groups and organisations of Norway, seeking cooperation chances with them in urban development and management. The session was held on May 24 as Chung was accompanying Prime Minister Nguyen Xuan Phuc in an official visit to the North European Hanoi seeks cooperation chances with Norway in urban development country. 5 Key Skills Every Property Investor Should Have Vietnam Insider Buying and selling properties for profit is a fantastic way to drive personal income (not to mention the rental returns you generate along the way). But before you become a millionaire master investor, you’ll need to develop a few crucial abilities. These skills are pretty much universal, and apply whether you are investing in an apartment in thriving Vietnam’s Da Nang, or looking for a property for sale in Dubai.In this industry, preparation is everything. Tightening credit for luxury home purchases might rock realty market: experts Vietnam Investment Review If credit policies for luxury home puchases were tightened, it could be a shock for the property market, experts have warned. The State Bank of Viet Nam plans to apply a credit risk ratio of 150 per cent for loans to purchase home worth from VND3 billion (US$126,000) – three times higher than the current ratio, according to a draft circular about limits and safety ratio for banks’ operation recently made public. Vingroup targets post-tax profit of 6.5 trillion VND in 2019 Vietnam Plus Leading real estate and retail conglomerate Vingroup plans to earn 140 trillion VND (6 billion USD) in net revenue and 6.5 trillion VND (278.5 million USD) in post-tax profit in 2019. The information was released during the group’s 2019 annual general meeting of shareholders on in Hanoi this week. In 2018, the company’s net revenue reached nearly 122 trillion VND (5.23 billion USD), up by 36 percent compared to 2017 due to the increase in revenue of all sectors. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 04 June 2019

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

FDI pledged to Vietnam hit a four-year high of US$16.74 billion in the first five months of 2019 Vietnam Insider The FDI inflow also represented a yearly increase of 69 per cent, the report said, adding that FDI disbursement jumped to $7.3 billion in the period, up 8 per cent year-on-year. More than 1,360 new Foreign direct investment (FDI) projects were licensed with total registered capital of $6.46 billion pledged to Vietnam in the first five in January – May, surging 38 per cent against the same period last months of this year hit a four-year year, while 505 existing projects were injected an additional $2.63 billion, up 6 per cent year-on-year. Lawmakers debate funding regulations for public works Vietnam News On Tuesday, the seventh session of the 14th National Assembly (NA) received split opinions on whether the NA or the Government should A bird’s-eye view of the Ben have the authority to set the amount of capital allocated to each Thanh-Suoi Tien metro line in HCM State budget-invested project in the mid-term plan. The current City. Law on Public Investment, which took effect in 2014. Real estate market in Dong Hoi heats up, authorities promote monitoring activities Dau Tu Bat Dong San Real estate in Dong Hoi City (Quang Binh province) is witnessing increasing heat with many investment from inside and outside of the province. At the end of 2018, it reported big supply of residential land in Dong Hoi. In fact, according to the latest news, there are only 6 projects which still have land for sale in Dong Hoi city. The rest of them were sold out. In addition, shophouse projects are also hot and facing large demand with 3 biggest projects such as: Truong Thinh Shophouse (Truong Thinh group and First Real), Eco Garden (Hana Land and Dat Xanh in Central Region) and Diamond Riverside (Dat Xanh in North of Central Region). Foreign investors race for Vietnam’s smart city solutions providers VOV As Vietnam’s cities and provinces are stepping up plans to realize the smart city dream, foreign tech giants are rushing with new ambitious business plans to seize the opportunities. ABB Group is among many foreign investors who are showing their ambitions to pursue many smart city projects in Hanoi, Ho Chi Minh City, Danang and other localities in Vietnam. Bright signals at adjacent markets Dau Tu Chung Khoan Nam Long Group (NLG) expects to achieve a profit increase of 20pct year-on-year, from the sales of Akari products in HCMC and the 165-hectare project Waterpoint – Phase One. Nam Long Group’s Director of Business Development and Marketing Nguyen Minh Quang said that the company will develop projects following direct sales model, as well as call for secondary investors to join the project’s development progress.

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Daily Real Estate News Highlights Vietnam - 05 June 2019

Foreign hotel management brands flock to Vietnam VOV More luxury hotels have arisen in anticipation of a tourism boom, and their owners are spending big money to hire foreign managers. Indochina Capital and Kajima Corporation have kicked off construction of Wink Hotels in district 1, HCM City. In the near future, another Wink Hotel will be developed by the joint venture in Da Nang. Vietnam Indochina Capital and Kajima Corporation have kicked off is listed among the fastest growing tourism markets in the world. construction of Wink Hotels in Real estate sector advised to reduce dependence on bank district 1, HCM City. credit VOV The real estate market has slowed in the first months of 2019, which experts attributed to limited bank credit sources for the market. According to President of the Vietnam National Real Estate Association (VNREA) Nguyen Tran Nam, credit for the real estate sector has been tightened and is getting tighter. Credit growth in the sector has reduced from 18 percent in 2016 to only 5 percent Real estate sector advised to reduce dependence on bank in 2018. Jubilee Capital invests in Vietnam-based online travel startup Vntrip Deal Streat Asia Vietnam-based online travel firm Vntrip has raised an undisclosed amount from Singapore- and China-based Jubilee Capital Management, according to the company’s announcement. The funding is part of a pre-Series C round as the company targets a Series C capital infusion later this year. In March, Vntrip CEO Le Dac Lam told DEALSTREETASIA that his company raised a top-up funding from existing investor Hendale Capital. The Hong Kong-based venture capital firm initially invested $10 million in Vntrip in 2017, following a $3 million Series A funding Vntrip secured a year earlier. HCMC calls for investment in public projects Ha Noi Moi Due to rapid development and urbanization process, HCMC is facing with many challenges including heavy traffic jams, environment pollution, hospital overload, school and playground shortage, etc. and the only solution for these problems is capital. HCMC has announced investment calling for 210 public projects in many fields such as: Transportation, infrastructure, agriculture, education, healthcare, culture, sport, tourism, and entertainment, etc. HCM City to submit new plan for Metro Line No1 in July Vietnam News The council for appraisal and adjustment of the Metro line No 1 and No 2 project of Metro Line No 1 project plans to submit a newly adjusted plan for the metro projects to the City People’s Committee for approval in July. Tran Vinh Tuyen, deputy chairman of the city’s People Committee, has directed the council to speed up the process of the appraisal procedure and make adjustments to the project. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 06 June 2019

Vietnam ranked 13th most influential in Asia Pacific VnExpress Vietnam’s level of influence in the Asia-Pacific region remained unchanged from last year, ahead of several Southeast Asian peers. The country stood 13th in terms of their capability to influence regional events, according to the 2019 Asia Power Index, released Vietnam ranked 13th most influential in on Tuesday by Australian think tank Lowy Institute. Asia Pacific. Strong demand for high-end property Vietnam Investment Review With robust economic growth in Vietnam for the past several years, foreign buyers are diving into the real estate market as is evident by the pent-up demand from those looking to buy. Bich Ngoc reports on the most attractive segments so far for overseas buyers. Since 2015 when Vietnam legalised foreign property ownership, the market has Vietnam is particularly appealing to been receiving increasing interest from foreign buyers, specifically Asian investors and homebuyers. for high-end propAsian investors taking advantage of the bargain price compared to Strong demanderty. the rest of the continent. Vietnam’s economy to overtake Singapore’s in next decade: DBS Bank Vietnam Plus If Vietnam’s economy grows by 6.5 percent each year over the next 10 years, it will exceed Singapore in size by 2029, according to the Nikkei Asia Review’s quoting of a DBS Bank report. DBS senior economist Irvin Seah was quoted as saying on May 28 that fundamentals, including improvements in productivity and infrastructure amid the escalating US-China trade war, have made Vietnam a top destination for foreign direct investment, with the trend looking likely to continue. The Vietnamese economy has the potential to keep growing at a rate between 6-6.5 percent in the mid-term, with 5.5 percent coming from productivity growth and another 1 percent in the short-term from growth in the working-age population. South Korean SK Group a major Vingroup shareholder VnExpress SK Group has spent nearly $1 billion on a 6.15 percent stake in Vingroup, Vietnam’s biggest private conglomerate. The Ho Chi Minh City Stock Exchange (HoSE) announced Tuesday afternoon that 205.7 million VIC shares of Vingroup were bought by SK Investment Vina II – a subsidiary of the SK Group, on May 21. With a 6.15 percent stake in Vingroup, SK Group has become a major shareholder under Vietnamese law, a status conferred on a shareholder directly or indirectly owning at least 5 percent of voting shares. The transaction happened five days after Vingroup and SK Group signed a strategic cooperation agreement.

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Daily Real Estate News Highlights Vietnam - 07 June 2019

Long Thanh Airport construction to start by end-2020 Vietnam Insider The Ministry of Transport has said the construction of the Long Thanh International Airport will be started at the end of 2020. Minister of Transport Nguyen Van The announced the date during the National Assembly meeting session. The said they had asked the Airports Corporation of Vietnam to quickly work with their Long Thanh Airport construction to international consultants to complete the feasibility study for the start by end-2020 first phase of the project. Central city to build new terminal Vietnam News Da Nang will build a new terminal, T3, at its international airport with total investment of VNĐ9 trillion (US$391 million), increasing the airport’s capacity to 28 million passengers and 200,000 tonnes of cargo by 2030. Deputy general director of the Airports Corporation Vingroup’s Vincom Center Landmark 81 in HCM City. Vingroup of Viet Nam (ACV), the new terminal was designed to handle 18 has recently sold US$1 billion worth of shares to the South million tourists per year and 100,000 tonnes cargo. Korean SK Group

Vietnam’s Vinalines acquires 75% stake in Quy Nhon seaport Deal Street Asia Vietnam National Shipping Lines (Vinalines) has acquired a 75 per cent stake in Quy Nhon seaport for VND 415 billion ($17.8 million), local media reported. HNX-listed Vinalines bought back the stake in the seaport that had earlier had been sold to Hop Thanh Investment & Mineral JSC. In 2013, Quy Nhon port was transformed into a joint stock company with a charter capital of more than VND 404 billion ($17.3 million). Vinalines owned more than 75 per cent stake of the port while the remaining shareholders held 24.9 per cent. Kien Giang home to 49 FDI projects VOV The Mekong Delta province of Kien Giang has so far attracted 49 foreign direct investment (FDI) projects with a combined registered capital of over 2.75 billion USD. Investors operating in Kien Giang come from 19 countries and territories worldwide, including the US, Switzerland, Sweden, France, Russia, China, Australia, Japan, the Republic of Korea (RoK) and Thailand. Unicorns from small Nhip Cau Dau Tu Damian Harrington, Research Head of property consulting firm Colliers International, said that many software startups have appeared in smaller cities, towns, allowing them to expand and scale at lower costs. “Most of the startup decisions are made regardless of locations. Opportunities or ideas can be deployed everywhere, as long as it is a good idea, with strong determination toward success, and necessary source of capital to support startups. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 10 June 2019

Two CapitaLand Vietnam projects receive green certification Vietnam Insider Singaporean developer also targets 100% green certifications for enlarged global portfolio with Ascendas-Singbridge by 2030. CapitaLand Vietnam announced on June 4 it has received green certification from Singapore’s Building & Construction Authority for Two CapitaLand Vietnam projects its two residential projects Seasons Avenue and Vista Verde. receive green certification Altara Residences – Quy Nhon’s first luxury residence Vietnam Investment Review The Quy Nhon Altara Residences project invested by Quy Nhon Foodinco JSC was launched yesterday in Hanoi, proving the strong development of the central city of Quy Nhon. Located at 76 Tran Hung Dao Street, Hai Cang ward, Quy Nhon city, Altara Residences is highly recommended by real estate experts because of its prime Altara Residences will be an outlocation, modern design, various facilities, and especially for it being standing real estate project offering unparalleled quality in Quy Nhon the very first luxury apartment project in Quy Nhon operated by an city of the central province of Binh Dinh international operator. Special policy needed for new urban areas, residential complexes Vietnam Plus Property experts have urged Ho Chi Minh City to issue a special policy on new urban residential complexes to prevent the rampant and unsustainable development of residential projects. The policy should address site clearance and the issuance of construction licences, they said. More than 20 years ago, Phu My Hung became the first model of a New Urban Zone in the city. Forecast of Vietnamese GDP and CPI in 2019 Vietnam Insider According to VEPR, in a feasible scenario, GDP growth in 2019 would be 6.81%, meeting the target of the National Assembly. This scenario is likely to happen thanks to the dynamic growth of 2018 and the efforts of the Government to improve competitiveness and productivity which reflected with relatively high growth of major industries including industry and services. Besides, VEPR pointed out that domestic enterprises are trying to improve themselves in the field of international trade. Saigon real estate expands to suburban Cafe Land As HCMC real estate market is gloomy, many property firms have changed strategy and expanded toward suburban areas and neighboring provinces like Binh Duong, Dong Nai to seek for investment opportunities. For example, Nam Long Group has silently invested in Long An and Dong Nai. Aside from Waterpoint project in Long An, in recent months, NLG had conducted two M&A transactions with some projects with large-scale land funds, including 170-hectare Nam Long Waterfront in Bien Hoa District, and 45-hectare Nam Long Dai Phuoc in Son Trach District. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 11 June 2019

Saigon, Hanoi premium office rents rise on low supply VnExpress The HCMC and Hanoi premium office markets continue to be undersupplied with no new buildings coming online in the first quarter. In HCMC, the average asking rent for grade A office space has edged up to $52.2 per square meter per month from below $50 With no new building came onin the fourth quarter of last year, according to a report by real estate line in Q1 2019, HCMC sees rising firm Colliers International Vietnam. occupancy rate and rent. HCM City absorbs 2.77 billion USD in FDI capital in five months The Voice Of Vietnam Ho Chi Minh City attracted 2.77 billion USD in foreign investment in the first five months of this year, with 46.7 percent of the capital poured into real estate. The figure was reported by Director of the city’s Department of Planning and Investment Le Thi Huynh Mai Ho Chi Minh City attracted 2.77 USD in foreign investment in at a conference of the municipal People’s Committee on June 4 to billion the first five months of 2019 review socio-economic performance in the January-May period. HCMC to auction nine land lots in Thu Thiem The Saigon Times HCMC is calling on investors to attend an auction for the rights to use nine land lots, part of the Thu Thiem New Urban Area project in District 2. The auction of the land lots is expected to take place in the third quarter of 2019. This is one of the 210 projects prioritized by the city for investment in 2019. The project covers the land sites at Functional Section No. 1 for commercial and multifunctional services, which are managed by the Thu Thiem New Urban Area Management Board. Functional Section No. 1 is located in the heart of the new urban area. FLC Group to invest in three projects in Bac Kan Bizhub The FLC Group seeks to invest in three big projects in the northern province of Bac Kan, with total area of more than 2,600 hectares.The projects include a resort, an entertainment and eco-urban area on Ba Be Lake on over 1,400ha with eco-houses, adventure parks, river tourism, a five-star resort and an 18-hole golf course. The second project would be the Quang Khe resort and entertainment complex with 500ha, while the third is the North Cau River 690ha resort and eco urban area in Bac Kan City. Lawmakers urge greater investment in Mekong Delta transport VnExpress Legislators have called for greater transport connectivity between Mekong Delta provinces and localities like HCMC. Nguyen Quoc Han, a National Assembly delegate from the southernmost province of Ca Mau, said Monday that there was a lack of expressways connecting his province with Ho Chi Minh City and other provinces in the region.

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Daily Real Estate News Highlights Vietnam - 12 June 2019

Ho Chi Minh City ramps up real estate Vietnam Net In an effort to become more attractive to investors and feature more modern infrastructure, Ho Chi Minh City is intensifying development of its urban real estate market. Ho Chi Minh City is offering a list of major projects which desire investment, with some already attracting Projects from high-rise apartinterest from foreign investors. Thu Thiem Financial Centre, located ments to a safari park are on in Thu Thiem New Urban Area of District 2, estimated at VND5 the lookout for funding trillion ($217.4 million) of investment capital, is one of the most attractive projects. Housing projects to see more inspections Vietnam Investment Review The Ministry of Construction and localities must conduct inspections on urban areas that may have violated their approved plans and issue strict punishments if violations are found, Deputy Prime Minister A view of HH Linh Dam Urban Area, which violated its apTrinh Dinh Dung said at a National Assembly (NA) question and proved plans by adding extra answer session on Wednesday. He said NA deputies and the public floors, Ha Noi’s Hoang Mai District had expressed concern about urban plans being arbitrarily adjusted to suit investors. Introduce shophouses at Uni Mall Center project in Thuan An Cafef Investors and businesspeople are seeking potential space for commercial opportunities in Thuan An Commune, Binh Duong province, and Uni Mall Center is a project worthy enough to pay attention on. In recent time, property giants like SP Setia, Guocoland, Vingroup, Dat Xanh, Phu Dong, Nam Long, DRH Holdings… have invested in property projects in this area, but the supply is still insufficient. Vietnam could emerge as developed economy: expert Vietnam Plus The prolonging trade war between the US and China makes it easier for Vietnam to continue its upward trajectory toward becoming a developed economy, Bennett Murray recently wrote on the ‘Foreign Policy’ paper. He cited the Vietnamese Ministry of Planning and Investment’s report as saying that the flow of foreign direct investment (FDI) into Vietnam surged by nearly 70 percent year on year in the first five months of 2019, which was a record since 2015. Vietnam’s property ceremony nears Vietnam Investment Review The annual Vietnam Property Awards, the country’s largest and most reputable real estate awards platform, is back for a fifth consecutive year. More real estate investors are beginning to notice Vietnam as a popular destination. With a thriving economy, and recent legislation making it easier for property investors to conduct business, the Vietnamese market has emerged as a hotspot for property investment. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 13 June 2019

HCM City property market to become hotter in 2nd half Bizhub There will be both opportunities and challenges this year in the HCM City property market, which will see a number of new projects being introduced, experts have said. Insiders said the market saw a downtrend in the early partof this year. They attributed it to the tight HCM City property market to become supervision by city authorities, which included an appraisal of the hotter in 2nd half - The Grand Manhattan Project is being developed in Dislegal status of many projects. trict 1 of HCM City Construction Minister says rules for condotels, officetels coming this year Vietnam Net Minister of Construction Pham Hong Ha said at the meeting of the National Assembly early this week that his ministry and the Ministry of Natural Resources would complete regulations relating to condotel and officetel this year. In response to delegate Ly Construction Minister says rules Thiet Hanh, Minister Ha said the Ministry of Construction (MoC) for condotels, officetels coming this year was responsible for revising standards and regulations relating to condotels and officetels and also promulgating management. Quality office space vital in retaining talent Vietnam Investment Review In addition to an attractive salary and welfare benefits, working environment and space play a key role in attracting talent as well as improving work efficiency. The two factors seem unrelated at first, but they are causing a headache for many business owners amid the growing scarcity of high-end office space in big cities such as Hanoi and Ho Chi Minh City. Policy key to boosting Vietnam’s digital economy The Voice Of Vietnam Along with e-commerce, Hung said that the digital economy is both a challenge and opportunity for Vietnam to resolve major issues in economic development, including the issuance and revision of policies to make Vietnam more competitive globally. According to a report from the MoIT’s Vietnam e-Commerce and Digital Economy Agency, Vietnam’s digital economy has been developing in terms of infrastructure and markets in the last decade. There are currently 64 million internet users in the country, accounting for 57 percent of the population. Bidding for North-South Expressway scheduled in August VnExpress Bidding for eight PPP components of the North-South Expressway will be held in August, Minister of Transport Nguyen Van The says. “We then can report to the National Assembly about the bids in September,” he told lawmakers at a house session on Wednesday. The said 34 firms - 24 Vietnamese and 10 foreign, six Chinese, two Japanese, and one French and one South Korean have collected bid documents. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 14 June 2019

Five metro line projects report a cost overrun of $3.47 billion Vietnam Investment Review The total investment capital of the five metro line projects in Hanoi and Ho Chi Minh City increased by VND80 trillion ($3.47 billion) against initial expectations due to delays in land clearance, arranging capital, and irresponsible investors. In the framework of the seventh session of the 14th National Assembly (NA). Vietnam’s five metro line projects Cement company wants to sell $60 mln office tower to shore up are all running behind schedule, finances with significant cost overruns VnExpress The state-owned Vietnam Cement Industry Corporation wants to sell a long-delayed office tower it is building in Hanoi as it seeks to privatize. VICEM has requested permission from the Ministry of Construction to sell the VND1.43 trillion ($61.4 million) building to recover its investment without spelling out if it plans to sell any One of VICEM’s cement proother asset. cessing factories located in Hai Steady foundations Phong Vietnam Economic Times VET recently asked for the opinions of local and foreign industry players on Vietnam’s property market. According to Mr. Nguyen Tri Huan, Manager, Research & Advisory Services of Colliers International in Vietnam, said that real estate sectors are expected to be lucrative for investors, while industrial real estate will likely receive the most attention thanks to the relocation of factories from China and Vietnam’s recent signing of multinational trade agreements. Developing bond market can help satisfy demand for capital Bizhub Vietnamese enterprises are in dire need of capital to expand production and business, but the current development of the capital market cannot meet this demand. While the stock market and government bonds are gradually helping raise capital, the corporate bond channel has not developed as expected. Do Ngoc Quynh, general secretary of the Viet Nam Bond Market Association, spoke with the Vietnam News Agency about the mechanism’s inadequacies, credit ratings and information disclosure on the capital market. Property inventories higher than MoC’s statistics: HoREA Vietnam News Recently released statistics on real estate inventories from the Ministry of Construction (MoC) were incorrect, according to the HCM City Real Estate Association (HoREA). The ministry reported the total property inventory value at more than VNĐ22.8 trillion (US$976.2 million) as of December 20, 2018, falling by over VNĐ105.7 trillion (82.24 per cent) against the first quarter of 2013. However, HoREA chairman Le Hoang Chau in a document sent to the ministry on June 10th said the report has not taken into account all of inventories at property firms, especially those with high inventories. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 17 June 2019

Da Nang leads the national ICT Index The Voice Of Vietnam Da Nang city has outstripped other localities to lead the Vietnam Information and Communication Technology (ICT) Index for 10 consecutive years. Da Nang’s Information and Communications Department said the ICT sector earned more than 1.2 billion USD last year and contributed 5.5% of Da Nang’s GRDP. The city has The Golden Bridge in Ba Na Hills, Da Nang city identified ICT development one of its 3 strategic breakthroughs. VinaCapital inks partnership with Mirae Asset-Naver Asia Growth Fund Deal Street Asia VinaCapital Ventures, a $100-million venture capital arm of asset management firm VinaCapital, has established a strategic partnership with Mirae Asset-Naver Asia Growth Fund, a $1 billion joint fund by VinaCapital inks partnership with Korea’s leading financial group Mirae Asset and internet company Mirae Asset-Naver Asia Growth Fund Naver. As part of the partnership, Mirae Asset, that has over $375 billion in assets under management, will invest an undisclosed amount in VinaCapital Ventures. Investors pledge $425 million at Vietnam Venture Summit 2019 VnExpress Eighteen venture capital funds Monday committed a combined $425 million for Vietnamese startups over the next three years. The investment pledges were made by both domestic and foreign investors at the ventures forum in Hanoi. Some notable deals struck included South Korea’s DT&I Investment Fund agreeing to invest $1.4 million in Propzy, a startup app that allows users to find, and rent or buy properties, in the second quarter of this year. Vietnam’s Economy Expected to Grow Fastest in Southeast Asia Bizlive According to Jakarta Post, the Vietnamese economy is expected to grow at around 6.7 percent this year, the fastest rate in Southeast Asia, according to the Institute of Chartered Accountants in England and Wales’ recent Economic Insight: South East Asia report. According to the report, Southeast Asian economies except Vietnam have seen exports drop in the second quarter of this year compared to the same period last year while Vietnam’s exports grew albeit slower than in 2018. Overseas Vietnamese entrepreneurs join forces to do business in Vietnam Cafe Land The first Overseas Vietnamese Economic Forum has presented a huge opportunity for both local and foreign businesses to collaborate and introduce products to the world, seek further investment opportunities, and utilize advanced technologies. Overseas entrepreneurs desire to make contribution to the homeland. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 18 June 2019

Ho Chi Minh City Calls for Investment to Build $210 Million Financial Hub Bizlive The complex will spread over nearly 14,500 square meters and be built between 2019 and 2021, according to its Department of Planning and Investment. It will require two land parcels in Thu Ho Chi Minh City Calls for InvestThiem, in District 2 east of the Saigon River, for two towers of ment to Build $210 Million Finan20-50 floors. Compensation payments for the land have been made, cial Hub the department said. Navis Capital invests in Vietnamese private education platform Deal Street Asia Kuala Lumpur-headquartered private equity firm Navis Capital Partners has completed an investment in Vietnamese private education platform Thanh Thanh Cong Education (TTCE) JSC, it Navis Capital invests in Vietnamese private education platform said in an announcement on May 30. No financial details of the deal were disclosed. VNtobe-among world’s most dynamic markets by 2030 The Voice Of Vietnam With an emerging market economy and continued strong growth, Viet Nam is set to become one of the most dynamic markets in the world by 2030, according to Euromonitor International, a global market research company. A Hodgson, Euromonitor International’s income and expenditure research manager, said the company’s research database showed that urbanization, with the associated concentration of income, wealth and population, would propel Viet Nam’s commercial success by 2030. Van Don Economic Zone needs 358.2 million USD for infrastructure Vietnam News The People’s Committee of northeastern Quang Ninh Province has released a plan to implement Prime Minister Nguyen Xuan Phuc’s conclusion on the development of Van Don Economic Zone (EZ) that would require more than 8.35 trillion VND (358.2 million USD) to expand its infrastructure by 2030. The plan aims to make Van Don an economic hub of Vietnam and get the city listed as one of the best places to live in the Asia-Pacific region. The provincial budget will allocate 2.4 trillion VND in the 2019-2025 period for investment into infrastructure. Time for Phu Quoc to rise Thoi Bao Kinh Te Vietnam Phu Quoc island has reached 4M visitors in 2018, 30% increase compared to that of 2017. In Q1/ 2019, total visitors was 1.3M, 94.1% increase over the same period in 2018. This island is now having many big tourism projects such as Vinpearl Land, Vinpearl Safari, An Thoi - Hon Thom Telepheric cable, JW Marriott Phu Quoc Emerald Bay, Casino Phu Quoc and many other projects

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Daily Real Estate News Highlights Vietnam - 19 June 2019

Condotel legal framework imminent Vietnam Investment Review Condotel developers and buyers will breathe easier later in the year when the legal framework for the new type of property in Vietnam is to be released. At the discussions of the National Assembly held last week, Minister of Construction Pham Hong Ha said the standards A huge increase in the condotel and regulations on management and operation of condotels and segment over the last five years officetels would be issued within 2019, to avoid any negative impacts has hastened the implementaon the new segment. tion of new regulations New credit to develop critical urban infrastructure in Vietnam The Voice Of Vietnam The World Bank Board of Executive Directors on June 11 approved a US$194.36 million credit to help four secondary cities in Vietnam build critically-needed municipal infrastructure and strengthen urban planning. The Dynamic Cities Integrated Development Project aims New credit to develop critical to increase access to improved urban services in four urban centers urban infrastructure in Vietnam of Ky Anh (Ha Tinh Province), Tinh Gia (Thanh Hoa Province), Hai Duong (Hai Duong Province), and Yen Bai (Yen Bai Province). Vietnamese architect laments lack of greenery in cities VnExpress The People’s Committee of the central city of Da Nang is pushing ahead with efforts to implement key tasks and solutions in building an e-government. One of the central tasks is to build and implement a plan to carry out Resolution 43-NQ/TW of the Politburo on the development of Da Nang to 2030 with a vision to 2045. Under the plan, the city defines five spearhead sectors, one of which is to develop information technology, electronics, and telecommunications in combination as part of the digital economy. Da Nang pushes ahead with e-Government building Vietnam Plus The prolonging trade war between the US and China makes it easier for Vietnam to continue its upward trajectory toward becoming a developed economy, Bennett Murray recently wrote on the ‘Foreign Policy’ paper. He cited the Vietnamese Ministry of Planning and Investment’s report as saying that the flow of foreign direct investment (FDI) into Vietnam surged by nearly 70 percent year on year in the first five months of 2019, which was a record since 2015. Southern provinces set to suffer power shortage Vietnam Insider Delays in many electricity projects threaten the south of Vietnam with power shortages next year, the industry ministry says. The Ministry of Industry and Trade said in a report that 47 of 62 approved power plants are behind schedule by a few months to as long as five years. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 20 June 2019

Ministry issues guidelines for smart city building The Voice Of Vietnam The ICT (information and communication technology) reference framework for the development of smart cities (version 1.0) has been issued by the Ministry of Information and Communications as a basis for localities and businesses to develop smart city projects. Ministry issues guidelines for smart city The ICT reference framework is a set of functions to link smart building regions, applications, and urban services to ensure consistency and synchronization in smart city development, according to Decision 829/QD-BTTTT on the ICT reference framework issued on May 31 by the Ministry of Information and Communication. Thai Nguyen province on cusp of funding progress Vietnam Investment Review Driven by strong administrative reform and growing interest among investors, the northern province of Thai Nguyen is emerging as Masan’s Nui Phao complex is among one of the most attractive investment destinations in 2019, with a the biggest investment projects in Thai Nguyen series of promising projects in the pipeline. Earlier this month, Nhu Van Tam, Deputy Chairman of the Thai Nguyen People’s Committee, made a fact-finding trip to the construction site of Song Cong II Industrial Zone (IZ). New policies push foreign investors’ interest in Vietnamese road sector Vietnam Net The country plans to need about US$480 billion for infrastructure investment by 2020, with additional projects in the pipeline including about 1,380 km of highway and around eleven power plants. Transport projects in Vietnam will be more attractive to foreign investors if new supporting policies are applied as seen in the North-South expressway project. According to Nguyen Danh Huy, head of the Ministry of Transport’s Public-Private Partnership (PPP) division Digital Banking Inevitable for Vietnamese Banks, Experts Say Bizlive In terms of legal procedures, compared to surrounding countries in the area, the Vietnamese legal framework has high adaptability to changes in the market. Today, Bizlive held the talk named “Digital Banking and the Specific Ecosystem”. Economist Can Van Luc said that the definition of digital banking is often misunderstood as and digital activity in the traditional banking system. Switzerland commits to help Vietnam develop eco-industrial parks VnExpress Developing eco-industrial parks is among important programmes within the Switzerland’s cooperation and development framework for Vietnam, Swiss Ambassador to Vietnam Beatrice Maser Mallor said at a seminar in Hanoi on June 12. The Ambassador reiterated the Swiss Government’s commitment to assisting Vietnam in switching to a greener economy. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 21 June 2019

Vertical cities – the destination of urban space Vietnam Investment Review Vertical cities are a potential solution to the world’s urban problems, but they have extremely high construction costs. Therefore, only a few vertical cities are developed by enthusiastic and determined investors with strong financial capability. Vertical city relieves pressure on urban development. In 2015, two famous architects The investor has created a refined Kenneth King and Kellogg and partners unveiled the book titled living environment inside The Zei including luxury apartments, “Vertical City: A Solution for Sustainable Living”. co-working space, as well as enFDI attraction - highlight in Vietnam’s economic growth tertainment and shopping zones The Voice Of Vietnam The General Statistics Office of Vietnam has released a report on Vietnam’s socio-economic development in the first five months of this year. Accordingly, Foreign Direct Investment continues to prosper with nearly 1,400 projects and a fresh capital of 6.5 billion USD, the highest in three recent years. Vietnam’s FDI attraction has increased by more than 38% in the amount of capital and 26% in the FDI attraction - highlight in Vietnam’s economic growth number of projects during the last 5 months. Central province okays two tourism projects worth $64 mln VnExpress Quang Ngai has approved in principle two tourism projects which together cost almost VND1.49 trillion ($64 million). The King Bay Sa Huynh resort, invested in by Vietnamese investment firm King Bay, is estimated to cost VND1 trillion ($43 million). It covers an area of 96 hectares, of which 45 hectares are protected forests in Duc Pho District, 48 kilometers to the south of Quang Ngai Town. The resort will have apartments, villas, hotels and a palace, along with water sports and parks. Real Estate Firms Issue More High-Yield Bonds as Capital Shortage Bites Bizlive A capital shortage following the tightening of bank credit is pushing Vietnamese real estate firms to issue more high-yield bonds. The Phat Dat Real Estate Development JSC has announced that it will issue 1,500 bonds worth VND150 billion ($6.41 million) for the second and third quarter this year. Previously, the company had already issued bonds three times worth a total of nearly VND850 billion ($36.35 million). Major trends in Vietnam’s consumer market Vietnam Net Vietnam’s middle class - the foundation of consumers - is rising fast: in 2030, 49% of households will have annual disposable income of US$5,000 to US$15,000, an increase of 33.8% from that in 2018. Viet Dragon Securities Company (VDSC) listed three major trends in the Vietnam consumer market until 2030, adding the country’s rapid economic growth is expected to create huge opportunities for companies adaptable to market changes. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 24 June 2019

NA adopts Law on Public Investment Vietnam Investment Review New hallmark revisions to the existing Law on Public Investment have been established in the picture of the public -investment in Vietnam, enabling the ¬country to invest in projects more effectively thanks to clearer regulations. Compiled by the Ministry of Planning and Investment (MPI), the revised Law on Public Investment was The new Law on Public Investment is set to boost implementation of adopted last week by the ¬National Assembly (NA), with a series of state-funded projects brand-new provisions that create a sound legal framework for the government to conduct public investment. Novaland Expo 2019 opens in HCM City Bizhub Novaland Expo 2019, the biggest exhibition organized by giant real-estate developer Novaland, opened on Friday at the company’s showhouse center in HCM City’s District 2. At the expo, the company introduces its business strategy for the 2019-2023 period to its Visitors at Novaland Expo 2019, which opens on Friday in HCM partners, investors, and customers. Novaland plans to diversify its City. investment by developing many kinds of property projects, and also invest in the financial sector. European high-end interiors brands flock to Vietnam The Voice Of Vietnam Products made by 10 European brands including Baxter, Ceccotti Collezioni and Dimensione Chi Wing Lo were recently on display at a new 2,000-square-meter showroom in Hanoi. Ly Qui Trung, CEO of Vietnamese company AKA Furniture, said demand for high-end furniture in Vietnam, despite its low GDP per capita, is no less than in Hong Kong or Singapore.”In Ho Chi Minh City and Hanoi, we have customers who seek premium products just like people in Italy and other developed countries”. New bridge across Tra Khuc River opened Vietnam News A ceremony to inaugurate Thach Bich Bridge – the third concrete bridge across the Tra Khuc River – was held today in the central province of Quang Ngai. The bridge is 875 meters long and 18 meters wide. The project also included building 1.5 kilometers of the approach road. The project was approved by the Quang Ngai Provincial People’s Committee in 2016, with a total investment of VNĐ643 billion (US$27.5 million). Vietnam prepares for competitive electricity market by 2021 The Voice Of Vietnam Not much work has been done to prepare for the opening of the competitive retail market, slated for 2021. Under the PM Decision released in October 2013, the competitive electricity market will take shape in a 3-stage roadmap. The competitive wholesale market was projected to be running on a trial basis in 2015-2016 before becoming operational in 2017-2021. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 25 June 2019

Greek property developer Euroterra Capital makes inroads into Vietnam Vietnam Investment Review Euroterra Capital have made their debut in Vietnam with Denzell as their exclusive partner. The partnership is a keystone to introduce prime development projects in Greece to Vietnam-based investors. With over 39 years of experience, Euroterra Capital are leaders in the global real estate development and investment industry. US-Sino trade tension starts to hurt hotel sector Vietnam Biz According to a report of property consulting firm Colliers International, occupancy rate and revenue of hotels in Asia – Pacific region have declined in the first quarter of 2019, due to the climbing of US-Sino trade tension which lowers consumer confidence.” The report also forecasted that hotel revenue in Asia-Pacific will grow by 3-4pct this year, but warned that if trade tension continues to get worse, this revenue will decrease by 2-3pct instead.

Most Euroterra Capital’s projects are situated in either Athens city centre or the beautiful islands of Greece

US-Sino trade tension starts to hurt hotel sector

Phu-Quoc works to attract investment Bizhub In the first half of 2019, the People’s Committee of Kien Giang Province approved seven investment projects with total registered capital of nearly VND12.65 trillion (US$542.64 million). Nguyen Thong Nhat, head of the management board of Phu Quoc Economic Zone, said the locality has 304 valid investment projects spanning 10,879ha with total registered investment capital of nearly VND308.45 trillion ($13.22 billion). Vietbuild 2019 gets underway in HCM City The Voice Of Vietnam The Vietbuild International Exhibition opened at the Saigon Exhibition and Convention Centre in HCM City on June 19 with a range of booths showcasing aspects of the real estate market, including construction, building materials, real estate, and interior and exterior decorations. Nguyen Van Sinh, Deputy Minister of Construction, emphasized that Vietbuild 2019 is a trade promotion activity that aims to strengthen international economic relations whilst offering opportunities for businesses to expand their production activities, seek investment, and acquire advanced technologies in the construction sector towards the sustainable development of the real estate market. Central bank unveils monetary policy for second half of 2019 Nhan Dan Online The State Bank of Vietnam (SBV) will continue to follow a pro-active, flexible and cautious monetary policy as well as working in close conjunction with fiscal and other policies to control inflation, sustain the macro-economy and support economic growth in the second half of this year. half of the year.

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Daily Real Estate News Highlights Vietnam - 26 June 2019

Vingroup to enhance capital to fund new national exhibition center VnExpress A subsidiary of conglomerate Vingroup plans to increase its charter capital to help fund a new national exhibition center in Hanoi. The Vietnam Exhibition Fair Center Jsc (VEFAC) said in a An artist’s impression of the recent statement it would issue 1.2 billion new shares to existing new Vietnam Exhibition Fair shareholders to increase its charter capital from VND1.67 trillion Center in Hanoi’s Dong Anh ($72 million) to VND13.89 trillion ($598.89 million). District. Japanese firm to build coffee processing plant in Vietnam Vietnam Plus Marubeni Corporation of Japan said it plans to invest 12.7 billion JPY (117.7 million USD) for building an instant coffee processing plant in an industrial park in the southern province of Ba Ria - Vung Tau. This will be the second coffee processing plant of the Japanese of Marubeni in firm following another one in Brazil. Construction of the plant is The headquarter Japan scheduled to begin in 2020, with an initial capacity of 16,000 tonnes of products/year. Action plan trio to boost Innovation Vietnam Investment Review With growing interest among domestic and international venture capital funds, the Vietnamese government is now making the first concrete moves to unlock the resources for the development of a startup ecosystem, opening up a new chapter for the market. At last week’s Vietnam Venture Summit, Nguyen Chi Dung, Minister of Planning and Investment, said, “To achieve the goal of renewing the growth model based on innovation. Viet Nam facilitates Korean investments: Deputy PM Bizhub The Vietnamese Government would work to remove bottlenecks and create the best conditions for enterprises from the Republic of Korea to operate in Viet Nam, Deputy Prime Minister Vuong Dinh Hue said on Wednesday. He made the statement while hosting a reception for heads of leading South Korean corporations as part of his ongoing visit to the East Asian country. Minister proposes $2 bln additional investment in Mekong Delta infrastructure VnExpress DThe Mekong Delta’s critical infrastructural needs require an additional VND45 trillion ($2 billion) over the next five years, a minister says. Nguyen Chi Dung, Minister of Planning and Investment, said at a Tuesday conference that the region’s infrastructure has not received sufficient investment from the government, as evidenced by the lack of several structures like deep-water ports and railway routes. As such, the ministry is looking to propose extra money for the next five years to invest in the delta. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 27 June 2019

AEON to build one more mall in Hanoi The Voice Of Vietnam Japanese retail giant AEON will build a $280 million mall in south Hanoi, its third outlet in the capital city. It is scheduled to open by 2020, AEON executive director and general director of AEON Mall Vietnam Yasutsugu Iwamura told Prime Minister Nguyen Xuan Phuc AEON Mall in HCMC at a meeting in Hanoi last week. Phuc expressed support for the construction of the mall, and instructed local authorities to facilitate it by adjusting land plans if required. Property market heats up in Binh Phuoc province Vietnam Investment Review The property market in the southern province of Binh Phuoc is expected to heat up because of industrial zone planning from now The property market in the southern to 2030, according to experts. The province plans to establish 35 province of Binh Phuoc is expected industrial clusters in its 11 districts and towns by 2030, whose to heat up because of new industrial zones. combined capital requirement will be 5.9 trillion VND (260 million USD). Vietnam Silicon Valley Accelerator to invest $40,000 in startups Vietnam Economic Times Vietnam Silicon Valley Accelerator (VSVA) continues to invest in startups this year, with the capital of $40,000, double that in 2018, through the “VSV Bootcamp Program Batch 7”. The VSV Bootcamp Program Batch will be held in July and give startups the opportunity to develop their ideas and models with initial investment and training programs over four months, working directly with expert advisors in the field. Vietnam has huge potential to develop renewable energy Vietnam News Viet Nam has set lofty goals for renewable energy, targeting raising total production from 58 billion kWh in 2015 to 101 billion kWh in 2020, 186 billion kWh in 2030 and 452 billion kWh in 2050. Under the country’s renewable energy development strategy, which was approved by the Government in 2015, Viet Nam is aiming to increase the ratio of electricity from renewable sources from 35 percent of total output in 2015 to 38 percent in 2020 and 43 percent in 2050. VIB pushing cashless payment solutions Vietnam Insider Local bank staying abreast of cashless trends in Vietnam. Vietnam International Bank (VIB) recently shared its initiatives to pivot to cashless transactions and emphasized the benefits to consumers in Vietnam. Ms. Tran Thu Huong, Head of Retail Banking – Strategic Businesses and Head of the Strategy & Business Support Department at VIB, underlined the bank’s support for government measures to encourage cashless transactions. For market research reports, please visit our website at www.colliers.com

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Daily Real Estate News Highlights Vietnam - 28 June 2019

Slick action required by developers Vietnam Investment Review As conflicts between high-rise apartment developers and their residents increase, some developers are struggling to improve their professionalism in building management. Ngo Quang Phuc, general director of Phu Dong Real Estate JSC, said that conflicts at high-rise apartment buildings mostly come from very small disputes. However, these small spats can escalate immensely and bring about negative consequences for both developers and buyers. Domestic property price to be stable in H2 Bizhub The domestic real estate market in the second half of this year is not expected to witness significant changes in price due to stability in supply, according to experts. During the last six months of this year, the medium- and high-end apartment market would not see any price fluctuations, said Nguyen Minh Ngoc, the Viet Nam Real Estate Association (VNREA)’s market researcher.

Developers and residents must follow regulations carefully

Customers look at a real estate project in Ha Noi. The domestic real estate market in the second half of this year will not see large changes in price.

Shinhan Finance to debut in Vietnam early July The Saigon Times Shinhan Vietnam Finance Company receives its all business licenses, marking a milestone to officially introduce its brand to Vietnamese customers. With effect from June 14, Prudential Vietnam Finance Company Ltd., (Prudential Finance) was approved to change its business name as Shinhan Vietnam Finance Company Ltd., (Shinhan Finance) according to Establishment License No. 51/GP-NHNN dated 03/05/2019 issued by the State Bank of Vietnam (SBV) and amended Enterprise Registration Certificate dated June 14th, 2019 issued by the HCMC Department of Planning and Investment. Vietnam’s gold prices jump to six-year high on global surge Vietnam Insider Gold traded above VND39 million (US$1,680) a tael in Vietnam on Friday, the highest level since June 2013, as the precious metal surpassed the key US$1,400 level for the first time in nearly six years in the global market. Gold prices quoted by most Vietnamese gold companies have climbed more than VND1 million (US$43) per tael in the last two days. (VND1 million = US$43). A tael is the most common weight measure of gold in Vietnam, which equals 37.5 grams. PM welcomes Thai groups to invest big in Vietnam The Voice Of Vietnam Prime Minister Nguyen Xuan Phuc has welcomed major groups of Thailand such as Thaibev, Amata and Siam Cement Group to make a big investment in Vietnam. At a reception for leaders of Thai groups have invested in Vietnam in Bangkok on June 23 on the sidelines of the 34th ASEAN Summit, PM Phuc suggested they expand investment in high-tech and environmentally friendly fields. For market research reports, please visit our website at www.colliers.com

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