Monthly Real Estate News | May 2021 by Vietnam Realty

Vietnam Monthly Real Estate News May 2021

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

Colliers News

Industrial real estate market: Rental rates are constantly increasing, the competitiveness is getting fiercer www.vietnambiz.vn Colliers Vietnam also pointed out that the number of IPs in Ho Chi Minh City and Hanoi remained the same in the first quarter of the year while rental rates continued to set a new record. According to Colliers' forecasts, the dynamic development of the e-commerce industry, the strong growth of exports of electronic goods, in addition to macro instability in some regions around the world could be a part making the demand for industrial property in Vietnam continue to be higher in 2021. “Industrial real estate needed to be promoted in provinces outside Ho Chi Minh City and Hanoi to take advantage of in terms of land fund, new infrastructure and momentum for more balanced growth in different regions of the country”, Colliers said.

The industrial real estate market is witnessing unprecedented growth

Real estate developers remain largest bond issuers www.vnexpress.net Experts and business representatives from both the United States and China at a major forum in Alaska on March 20 said they expected a better dialogue mechanism on bilateral trade – a sector where the world’s largest two economies share interests despite their disputes on political issues. However, the tense nature of the event showed that hope does not yet exist.

Modern apartment buildings in Binh Thanh District, Ho Chi Minh City

HCM City lures $1.14 billion in FDI in four months www.vietnamnews.vn HCM City reported a foreign direct investment (FDI) influx of USD1.14 billion in the first four months of 2021, a year-on-year decline of 12.92 per cent. Approximately $360 million was channelled into 100 new projects, primarily in commerce ($225.1 million ) and real estate ($125.8 million). Meanwhile, $403 million was added to 30 existing projects and another $377.6 million was used for capital contribution and share purchases in a total 547 transactions. Foreign investors pumped most of the capital in processing and manufacturing with $322 million, making up 28.2 per cent, followed by commerce with $321.2 million, real estate ($196.3 million), science and technology activities ($175.4 million), and education-training ($30.3 million).

colliers.com/en-vn

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

Colliers News

Due to the influence of the Covid-19 pandemic, the rental rates of serviced apartments continued to decline www.baotainguyenmoitruong.vn Serviced apartments continue to receive competition from apartments for rent, according to Colliers Vietnam. The decline in international arrivals has also had an impact on the apartments for rent market, where rental rates and consumption were both falling. Many homeowners have sharply reduced prices to attract tenants and created great competition for the serviced apartment segment in Vietnam. “Vietnam remained resilient despite the challenges of the Covid-19 pandemic, foreign direct investment (FDI) in Vietnam was increasing day by day, with USD 10.13 bil of FDI to Vietnam in the first 3 months of the year as of March 20, an increase of 18.5% over the same period last year. Investment in many areas in Vietnam would certainly help attract more foreign workers and this would be the key to reviving the serviced apartment segment in Vietnam,” said Colliers Vietnam.

The rental rates of serviced apartments continued to decline

Samsung Vietnam proposes direct purchase of renewable energy www.vnexpress.vn Electronics giant Samsung Vietnam has proposed that it joins a trial program to purchase power directly from renewable power plants instead of monopoly distributor Vietnam Electricity. Choi Joo Ho, CEO of Samsung Vietnam, submitted the proposal to the Ministry of Industry and Trade last week. He asked that the company participates in the Direct Power Purchase Agreements (DPPA) policy that is being studied for a three-year trial.

Solar panels seen at a solar farm in the central province of Ninh Thuan

LNG Bac Lieu project expected to start in late 2021 www.vir.com.vn Bac Lieu People’s Committee expects that the construction of 3,000MW LNG Bac Lieu would be kicked off later this year, despite having to deal with numerous problems. According to Pham Van Thieu, Chairman of Bac Lieu People’s Committee, Delta Offshore Energy Pte., Ltd. (DOE), the investor of the LNG Bac Lieu project is facing difficulties in negotiating the power purchase agreement (PPA) as the parties have yet to reach a compromise over the selling price of power and the power purchase volume. It is currently unsure whether the entire 3,200 MW generated by the plant will be bought.

colliers.com/en-vn

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

Colliers News

Are apartments an attractive investment channel in the pandemic? www.reatimes.vn Q1/2021 market research report from Colliers Vietnam said that while the pandemic was still stressful, investors chose to deposit their pockets into many different types. Statistics from 28 joint stock commercial banks recorded total customer deposits reaching more than VND 8.6 mil bil in 2020, an increase of 13% compared to 2019. Those who wished to be more adventurous invest in stocks. On the other hand, many considered real estate as a safe investment channel as prices tended to increase over time and so many people bought property to invest in last year and so on. Mr. Peter Dinning, Chairman of Colliers Vietnam expected and said that administrative reform efforts in the real estate sector would be conducted more vigorously and closer to common international standards.

Mr. Peter Dinning Chairman | Colliers Vietnam

Tax policies for property sector must be carefully studied: finance ministry www.vietnamnews.vn Tax policies for the real estate sector must be carefully studied and introduced at the appropriate time to ensure feasibility and limit speculation, according to the Ministry of Finance. This was the ministry’s response to a proposal from the HCM City Real Estate Association that the Government should tax the conversion of agricultural and non-agricultural land to residential land at a rate of about 15-20 per cent.

It was necessary to give careful consideration to any tax policies on the real estate sector

Novaland land fund strategies underpin successes www.vir.com.vn Through mergers and acquisitions, a thorough approach to secure a diversified portfolio, and a large bank of land, real estate developers can navigate through many of the pandemic-induced challenges and gain an upper hand in providing top-notch products. Novaland is one of the most prominent brands portraying themselves as big land hunters. At its annual general shareholders’ meeting, Bui Xuan Huy, CEO cum member of the Board of Nova Group, which owns Novaland, said that in the first quarter of this year, Novaland recorded a land fund of 5,400 hectares with gross development value of nearly $45 billion. From its first Ho Chi Minh City project, Sunrise City in District 7 back in 2008, Novaland has successfully bagged 10 large-scale tie-up deals with a wide network expanding across the country, particularly in the south.

colliers.com/en-vn

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

Colliers News

HCMC new apartment prices rise, secondary market treads water www.vnexpress.net Apartment prices in the primary market in HCMC increased by 14.6 percent year-on-year in the first quarter, but stayed the same or even fell in the secondary market. Colliers International, another consultancy, said in the eastern part prices have risen 7-9 percent year-on-year since the establishment of Thu Duc City last January.

Apartments in Thu Duc City in HCMC

Local groups capitalise on M&A opportunities www.vir.com.vn Vietnam has witnessed a surging number of local groups acquiring assets from both domestic and foreign players, with the rise signalling a major change in the mergers and acquisitions game in the country. At last week’s annual general meeting, Vietnam Dairy Products JSC’s (Vinamilk) chairwoman Mai Kieu Lien said the group will continue its mergers and acquisitions (M&A) to sustain its stable growth in the midst of the crisis.

Local groups capitalise on M&A opportunities

Retail sales, service revenue hit 73.5 billion USD in four months

www.vir.com.vn The total retail sales and service revenue surged 10.02 percent year-on-year to 1.695 quadrillion VND (over 73.5 billion USD) in the first four months of 2021, according to the Ministry of Industry and Trade (MoIT). Retail sales of goods in the January-April period were estimated at over 1,352.7 trillion VND, up 9.8 percent against the same period last year. Increases were seen in the sales of textiles (up 11.8 percent), food and foodstuff (up 11.5 percent), vehicles (up 11.1 percent), and cultural and education products (up 9.5 percent).

At a supermarket

HCMC new apartment prices rise, secondary market treads water www.vnexpress.vn Apartment prices in the primary market in HCMC increased by 14.6 percent year-on-year in the first quarter, but stayed the same or even fell in the secondary market. Colliers International said in the eastern part prices have risen 7-9 percent year-on-year since the establishment of Thu Duc City last January.

colliers.com/en-vn

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

Colliers News

Many F0 investors are fidgety after the land fever cools down www.reatimes.vn According to Mr. David Jackson, CEO of Colliers Vietnam, it was estimated that more than 70% of total market transactions in 2020 came from F0 investors. This ratio could stay at the current level or increase over the next few years as property prices were likely to increase over time. This expert said that, investors F0 would usually pay the first payment term and try to find a way to sell the real estate to avoid having to continue to pay the next payment period. They wished a small profit in a short period of time and this often caused real estate prices to rise very quickly.

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

ESR and BW form joint venture for My Phuoc 4 IP in Vietnam www.vir.com.vn BW is currently developing My Phuoc 4 the "Park" with completion scheduled for August. Besides, ESR will work with BW on the leasing of the "Park" leveraging its strong roster of customers. Vietnam is an important market in ESR's strategy and looks forward to welcoming customers to My Phuoc 4.

My Phuoc 4 IP will have approximately 240,000sq.m of logistics and light industrial

Businesses advised to diversify capital sources in new context www.vov.vn The enforcement of free trade agreements (FTAs), especially new-generation agreements like the EU-Vietnam FTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will create substantial opportunities for Vietnamese enterprises to boost exports and attract more foreign investment, both direct and indirect. COVID-19 has also triggered a shift in production and supply chains to developing countries like Vietnam. Experts at the workshop noted that Vietnamese enterprises are over-reliant on bank loans while the credit market is currently “overloaded” since it has to concurrently provide short-, medium-, and long-term capital for businesses and the economy.

New development challenges for HCMC

www.english.thesaigontimes.vn On April 14, 2021, the government of Long An Province officially announced a plan to build a “mega” economic zone on an area of 32,000 hectares, which includes the province’s entire district of Can Giuoc and part of Can Duoc District. The new zone will emerge from existing industrial and hitech parks, such as Long Hau, Dong Nam A, Tan Kim, Tan Lap, Nam Tan Lap and Cau Cang Phuoc Dong. The announcement gives the HCMC leadership and strategists food for thought.

colliers.com/en-vn

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

Colliers News

Apartment priced at VND 1.5 bil is about to "extinct" in Binh Duong www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam, said that the development of the surrounding areas of Binh Duong was also a big factor for the development of real estate here. The establishment of Thu Duc City contributed to attracting investment and human resources to Binh Duong. This makes real estate prices tended to continue to increase in the near future. “The fact that Binh Duong real estate prices had consistently peaked over the past few years was understandable. This came from the infrastructure development policies of the region that made the actual demand in these areas increase. After being officially approved the project to establish Di An City, the local government had plans to develop infrastructure to promote urbanization and turn the city into an attractive area” , this expert emphasized.

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

Foreign investors increase acquisitions of renewable energy projects in Vietnam www.vir.com.vn Foreign investors from China, Thailand, and Singapore are increasingly acquiring renewable energy projects located at strategic positions from domestic enterprises. Chinese investors are increasing their ownership in numerous renewable energy projects in Central Vietnam, the Central Highlands region, and Southwest Vietnam. The Thai investor also owns a 95 per cent stake at Mekong Wind Power JSC. The company operates the Mekong Project comprising of a 30MW solar farm and a 310MW offshore wind farm.

Foreign investors are increasing investments in renewable energy projects in Vietnam

BIM Land’s real estate ambitions raise $200 million with SGX debut www.vir.com.vn BIM Land JSC, a member of BIM Group, has successfully priced its inaugural US dollar bond for 5-year maturity at 7.375 per cent coupon to be listed on the Singapore Stock Exchange (SGX), with the transaction marking the first offshore bond offering by a Vietnamese issuer since 2019 and the first corporate green bond out of the country. The Reg S only, senior unsecured notes have a rating of B2 by Moody’s and B by Fitch, in line with BIM Land’s issuer ratings. The debut bond issuance of BIM Land on April 29 attracted interest from a wide range of investors, with order books peaking at $625 million, oversubscribed three times over. Regionally, Asia bought 58 per cent of the deal, the Europe-Middle East-Africa region 41 per cent, and offshore US investors the remainder. colliers.com/en-vn

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

Building an appropriate plan for the socioeconomic future www.vir.com.vn With the backdrop of the pandemic, global trade tensions, natural calamities, and other hurdles, Vietnam has drawn up new directions for its 5-year socioeconomic development that now depends on the leadership and determination of the newly-elected government. Within this series, VIR will focus on the government’s execution of its strategies and policies with detailed analysis of related economic sectors.

Tourism has been decimated since early 2020 and solutions are still required

The rental premises of townhouses were fearful in the face of the 4th Covid-19 pandemic

www.reatimes.vn According to Mr. David Jackson, CEO of Colliers Vietnam, since the outbreak, the number of vacant space had increased and the offered rental rate had also followed a downward trend. Offered rental rates were reduced by 50% in 2020 and the decline would continue in this 2021. Business difficulties caused by the sudden drop in international tourist numbers caused many tenants to return their premises. Thus, it could be said that the market was having a surplus of rental space. At the macro management level, Colliers Vietnam also found that there were localities directing "non-extreme" isolation, continuing to promote production and business activities to create resources against pandemics and maintain growth momentum.

Q2 Thao Dien welcomes residents with outstanding facilities

Samsung lost its top spot in Vietnam and major smartphone markets www.vietnaminsider.vn Samsung Electronics Co. lost its top spot in four major smartphone markets in Southeast Asia in the first quarter of the year, a report showed Tuesday, as it faced intensified competition with Chinese brands in the region. The South Korean tech giant logged a 19 percent market share in Indonesia, the Philippines, Thailand and Vietnam in the January-March period, down from 22 percent a year earlier and slipped to the runner-up spot, according to the latest report from market researcher Counterpoint Research. Guangdong Oppo Mobile Telecommunications Corp., simply known as Oppo, claimed the top position from Samsung in the first quarter with a share of 22 percent, up from 21 percent a year earlier.

Foreign investors will soon return to Vietnam's stock market: HSBC www.vir.com.vn Vietnam’s stock market is expected to continue to grow, helped by strong economic growth and increasing local liquidity. The positive outlook will attract foreign investors back to the market, according to HSBC. In the Asia Frontier Insight - Vietnam report, the research team from HSBC believe that foreign investors cannot ignore Vietnam’s market any longer as it offers a favourable risk-reward opportunity in one of the most resilient growth economies and the market’s liquidity is rising. colliers.com/en-vn

Colliers News Land price in Thanh My Loi hits VND 400 mil/m2 www.saigondautu.com.vn According to Colliers Vietnam, in Q1, apartment prices in Ho Chi Minh City continued to increase by 3.5% in all segments. Particularly in Thu Duc City, the offer price of apartments has increased by an average of 7-9% compared to last year and increased by 45% compared to 2018. However, in general, experts still believed that Thu Duc City, especially the areas that were located close to the existing center of Ho Chi Minh City would be the place where the real estate market would be active in the near future. Mr. David Jackson, CEO of Colliers Vietnam, believed that infrastructure development would lead to price increases in regions. “In 2021, Thu Thiem 2 Bridge would further increase the price of apartments in District 2 and District 9, as evidenced by the fact that last year the prices of these apartments had escalated from 4-7% in Q1.”, Mr. David Jackson said.

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

HCMC launches pilot project to tighten taxation of rental income tới đây rồi www.vnexpress.net HCMC will launch a pilot program to collect income tax from landlords who lease out apartments in a bid to tighten implementation of existing regulations. The pilot tax collection program will be implemented at five District 11 buildings: the Res 11 apartment complex; Khai Hoan building on Lac Long Quan street; Thuan Viet commercial and residential area on Ly Thuong Kiet street; the Bao Gia building on Le Dai Hanh street; and the apartment complex at 70 Lu Gia Street.

Apartments and villas alongside the Saigon River in HCMC

Da Nang looking to attract more Singaporean investment www.vietnamplus.vn An online workshop to promote investment from Singapore to the central city of Da Nang took place on May 12, offering a chance for the city to introduce its potential and strengths and seek partners. The workshop was jointly held by the municipal People’s Committee, the Singapore Business Federation (SBF), the Asia Competitiveness Institute (ACI) under the Lee Kuan Yew Public Policy School (LKYSPP) - Singaporean National University, and the Vietnamese Embassy in Singapore, attracting the participation of representatives from nearly 300 Singaporean enterprises. Minister Counsellor of the Embassy Le Cong Dung highlighted the increasingly fruitful development of diplomatic and economic relations between Vietnam and Singapore over the past 48 years, especially since the two countries lifted their ties to a Strategic Partnership in 2013.

colliers.com/en-vn

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

Colliers News Demand for townhouses and villas is still high www.baotainguyenmoitruong.vn Colliers Vietnam's Q1/2021 report showed that the demand for villas and townhouses in Ho Chi Minh City and Hanoi was still high. In particular, in Ho Chi Minh City, the number of transactions of villas and townhouses decreased slightly due to the Tet holiday and the recurrence of the Covid-19 pandemic. Many developers have launched attractive promotions to attract buyers on this occasion, and overall transaction activity has increased since 2020. According to Colliers Vietnam, infrastructure development and land bank restrictions in the inner city would shift the focus to neighboring provinces and suburban areas.

Demand for townhouses and villas is still high

Domestic real estate market continues to see rosy signs www.vir.com.vn Vietnam now has 1,733 real estate firms, up 27.1 percent from the corresponding time last year, according to the Ministry of Construction. The ministry said the real estate market has shown signs of recovery since late 2020, as reflected through higher transactions and prices. The number of enterprises that suspended operation stands at only 694, it added. In the first months of 2021, many major firms have stepped up operation, such as Vingroup with a strategy to build 25 commercial centres and Phu Long Real Estate JSC with high-end apartment building and marine resort projects. It is forecast that the supply will increase this year as businesses are stepping up investments.

Domestic real estate market continues to see rosy signs

Deputy PM stresses prevention of COVID-19 transmission in IPs www.vir.com.vn Deputy Prime Minister and head of the National Steering Committee on COVID-19 Prevention and Control Vu Duc Dam has asked localities to do their best to prevent the COVID-19 pandemic from spreading in factories, especially at industrial parks (IPs). During an online meeting with permanent members of COVID-19 prevention and control steering committees and leaders of Bac Ninh and Bac Giang provinces and Da Nang city on May 12, Dam hailed their efforts in responding swiftly and responsibly to the pandemic. The Deputy PM noted that Vietnam is now home to 369 IPs and nearly 30 border gates and processing zones with 3.8 million workers, and around 700 industrial clusters with 600,000 workers.

colliers.com/en-vn

Colliers News A series of apartment projects bordering Thu Duc City is about to be launched to the real estate market www.cafef.vn Ms. Nguyen Thi Hong Yen, Head of Colliers Vietnam’s Housing Real Estate Services at, said that the real demand for mid-range apartments was still very large, thereby pushing the average price of this segment higher year on year. In fact, the speed of urbanization in the vicinity of Ho Chi Minh City such as Binh Duong and Dong Nai was very fast, so the mechanical population growth was also very large. In addition, these areas were also key economic centers of the South. Therefore, the economic development here would lead to a high demand for human resources and urban areas for this labor source. “The mid-range segment continued to account for a large proportion in the apartment market because this was a product that balanced the level of profit for project developers and met most of the market's demand,” Ms. Yen emphasized.

Many new apartment projects are about to open for sale in Di An market

Frasers Property Vietnam unveils first industrial development www.vir.com.vn Multi-functional real estate developer Frasers Property Vietnam has unveiled its first industrial development in the country, named Binh Duong Industrial Park. Located in southern economic hub of Binh Duong province, well connected to the National Road No.13 and main seaport, Binh Duong Industrial Park (BDIP) is set to be the ideal industrial and logistic hub for foreign direct investment and leading national enterprises. According to Lim Hua Tiong, CEO of Frasers Property Vietnam, harnessing the group’s strong capabilities and experiences in industrial property development and deep understanding of the Vietnamese market has been built through decades of in-market experience.

BDIP, the ideal address for today's industries. Masterplan aerial view artist's impression

Property ‘fever’ expected to break in 2nd quarter www.vietnamnews.vn Analysts expect investment in property to sharply decrease in the second quarter of this year, cooling down the so-called price “fever”. Dr Nguyễn Văn Định, vice chairman of the Việt Nam Association of Real Estate Brokers (VARBs), said as usual speculators would quit the market once it becomes red hot.

colliers.com/en-vn

Colliers News What is the difference between real estate in the East, South and West of Saigon? www.cafef.vn If the East and the South of Ho Chi Minh City have many real estate projects being implemented, strong investment infrastructure attracts investors' cash flow, the West area seems to be more "quiet" in terms of investment demand as well as project supply, but outstanding in the need to buy to live in. Even, there are projects with the rate of buying to live in up to 80-90%. According to the representative of Colliers Vietnam, the apartment segment in 2021 in Ho Chi Minh City continued to have positive prospects, high potential for residential projects to meet the real housing needs of the people. Legislation would be revised to strongly promote the real estate market.

New green growth carbon-neutral economy

strategy

Many real estate projects in the West Saigon area "light up" in real demand

promote

www.vietnamnews.vn The Ministry of Planning and Investment is drafting a national strategy on green growth for 2021-30. Aiming to make Việt Nam a carbon-neutral economy as soon as possible, the draft strategy sets targets on reducing greenhouse gas emissions, helping all economic sectors go green, promoting sustainable consumption, and enhancing resilience during the green transition process, among other matters.

Mangroves grow alongside a residential neighbourhood in the Tam Giang Lagoon area

Logistics enterprises grow strongly in Q1, boosted by FTAs and industry's bright outlook www.vietnamnews.vn Vietnamese logistics enterprises reported outstanding business results in the first quarter of 2021. In the quarterly financial report, Transimex Joint Stock Company (TMS) said that its net revenue jumped 104.9 per cent year-on-year to nearly VNĐ1.1 trillion. As cost of goods sold increased during the period, Transimex’s gross profit rose 55 per cent against same period last year to VNĐ112.56 billion. After diminishing expenses, its profit after tax reached VNĐ101.2 billion, up 75.7 per cent. Transimex is a logistics service provider with businesses in international freight forwarding, warehousing, domestic transportation and distribution.

colliers.com/en-vn

Colliers News 'Stunned' with the situation of 150 people owning a red book on a land of 1000m2 www.baomoi.com In an interview with Business Forum magazine, Ms. Kim Ngoc - Head of Valuation & Advisory Services, Colliers Vietnam - warned about the disadvantages of buying and selling co-owned real estate. The first was a complicated procedure that took a long time to handle because it involved many co-owners. Buyers would definitely have to accept to resell this type of land at a lower price than the market because the form of co-ownership was extremely variable, causing risks for homebuyers. Besides, many bad actors took advantage of legal loopholes, divided the land into parts, built houses and sold and advertised affordably (with pink book). After the customer decided to buy and deposit by such a price, they "broken" that the house was built on the common book. At this time, the seller promised that when the transaction was complete, the book would be split.

Ms.Kim Ngoc Head of Valuation & Advisory Services | Colliers Vietnam

Danang lures over $830 million investment from Singapore www.vir.com.vn Danang is emerging as an attractive investment destination for investors from Singapore, which have poured over $838.4 million into the central city. Speaking at a recent webinar, leaders of Danang People's Committee stated that Singapore is one of Vietnam's most important investment and trading partners. Despite the impact of the COVID-19 pandemic, Singapore remains the leading foreign investor in Vietnam by registering 248 projects worth $9 billion in the country last year. Singaporean investors and companies highly appreciate the potential and advantages of Danang. Its industrial zones and high-tech zones boast more convenient location than the neighbouring provinces.

Singapore has been the leading investor in Danang

Not only in Vietnam, house prices are skyrocketing around the world www.vietnaminsider.vn For many people, including yours truly, Vietnam’s real estate fevers have killed the dream of owning a home. The coronavirus pandemic had sent large parts of the world into lockdown, shuttering businesses, costing tens of millions of workers their jobs and putting the housing market into a deep freeze. The number of people asking lenders for more time on their mortgage payments surged as the global recession hit. colliers.com/en-vn

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

Colliers News Blooming trend of gathering land in the suburbs and waiting for price increase www.ndh.vn According to David Jackson, CEO of Colliers Vietnam, good infrastructure had made real estate prices in Bau Bang and Binh Duong increase by an average of 12-15% per year in the past 5 years. Many investors had also been quick to anticipate the trend, hoarding real estate here and expecting high profits in the long term. According to this expert, currently, the price of land plots was around VND 1 bil / plot, a price that could not be found in Ho Chi Minh City many years ago. Among neighboring provinces such as Dong Nai or Long An, investors from Ho Chi Minh City still seem to be "in favor" of Binh Duong real estate. Mr. Jackson said that Binh Duong in general and Bau Bang in particular had convenient connections with Ho Chi Minh City, living and working conditions were also quite adequate and continuously improved.

Many investors in Ho Chi Minh City are interested in suburban land, medium-term investment, waiting for price increases

SK Group looks to develop hydrogen projects in Can Tho www.vov.vn The Republic of Korea (RoK) conglomerate the SK Group said on May 18 that it wishes to set up long-term cooperation with Vietnam, including the Mekong Delta city of Can Tho, which has substantial potential in hydrogen development and high-tech production. At a working session with municipal leaders, group representatives stressed the role of hydrogen in building a clean energy economy in the future.

SK Group looks to develop hydrogen projects in Can Tho

Warehouse demand swelling investment www.vir.com.vn Local and foreign investors are gearing up their efforts to develop warehouses amid demand surges. Denmark’s Maersk has strengthened its contract logistics and distribution capabilities in Vietnam with three new facilities coming into operation in the southern province of Binh Duong and the northern province of Bac Ninh. These warehouses, together with 11 other self-managed facilities in the country, will enhance Maersk’s logistics capacity for future growth in Vietnam. The two facilities in Binh Duong cover around 10,000 square metres each. At around 18,000sq.m, the new facility in Bac Ninh is situated next to another Maersk distribution centre, scaling up the area here to a combined 29,000sq.m.

colliers.com/en-vn

Colliers News Will real estate in the suburbs be 'broken' due to the supply crisis? www.danviet.vn According to Colliers Vietnam's Q1/2021 report, Binh Duong has surpassed Ho Chi Minh City to become the bright spot of the apartment market. In January 2021 alone, Binh Duong surpassed Ho Chi Minh City to lead the new supply when there were 7 projects launched for sale, providing nearly 1,900 units to the market, equivalent to 54% of the total new supply. Calculating the entire supply from 2019 to now, Binh Duong market has had nearly 40,000 apartments. Ms. Nguyen Thi Hong Yen - Head of Colliers Vietnam Housing Real Estate Services said that the real demand for mid-range apartments in Binh Duong was still very large, thereby pushing the average selling price of this segment to higher than the previous quarter.

Investors have prepared and developed a long-term strategy

Foreign enterprises place trust, raise investment in Đồng Nai www.english.vov.vn The trust of investors in the local business climate and support from authorities for enterprises are among the main factors that have helped the southern province of Đồng Nai almost reach its foreign direct investment (FDI) target for the year. Swiss-funded Nestle Việt Nam, based at the Biên Hòa 2 Industrial Park, has continually increased its charter capital since opening its first factory on-site in 1995. In April, it added US$132 million to its investment in a coffee production project at the Amata Industrial Park in Đồng Nai, bringing the total to more than $400 million.

Foreign enterprises place trust, raise investment in Đồng Nai

Vietnam’s GDP growth to expand by 7% in 2021: AMRO report www.vov.vn Vietnam’s GDP growth is expected to rebound to 7 % in 2021, driven by a recovery in goods and service export, resilient domestic economy, and healthy investment inflows, according to the ASEAN 3 Macroeconomic Research Office (AMRO). In its Annual Consultation Report on Vietnam published on May 19, which was produced based on AMRO’s virtual 2020 Annual Consultation Visit to Vietnam and data and information available up to February 11, 2021, the office said Vietnam’s manufacturing output continued to expand thanks to robust exports and positive spillover from global supply chain restructuring.

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Colliers News Is it time to invest in the super-luxury apartment segment? www.phunumoi.net.vn Colliers experts believed that real estate would continue to be an important investment segment in the coming time and the trend showed that apartment prices would continue to increase. The price of high-class and luxury apartments in the center of Ho Chi Minh City was from USD 7,500 to 12,000 /m2, only about 16% compared to Hong Kong (USD 45,500/m2) - where house prices were among the most expensive in the world. Meanwhile, the current price of high-end and luxury apartments in Hanoi was only from USD 3,000-5,000 /m2. In addition, many notable infrastructure projects in the East of Ho Chi Minh City were boosting the demand and selling prices of apartments in that area such as the North-South Expressway, the Ho Chi Minh City - Long Thanh - Dau Giay Expressway, metro line 1, Ring Road 2, Mai Chi Tho and Pham Van Dong expressways.

The supply of apartments in Hanoi will be about 25,000 units in 2021

Investment in HCM City industrial parks, zones up 23% www.vietnamnews.vn Investments in HCM City’s industrial parks and processing zones have risen by nearly 23 per cent year-on-year so far this year to US$236.1 million. Foreign direct investment was worth around US$125 million, double the amount that came in during the same period last year.

Hiệp Phước Industrial Park in Nhà Bè District

Five sub-projects of North-South Expressway to kick off construction this quarter www.vir.com.vn The construction of five sub-projects of the North-South Expressway will start in May and June. Notably, the construction of Dien Chau-Bai Vot sub-section (between Nghe An and Ha Tinh) will be started on May 22 under the public-private partnership (PPP) model. On May 13, the Ministry of Transport and local joint-venture of Hoa Hiep-CIENCO4-Nui Hong Investment-Truong Son Investment-VINA2 Investment and Construction signed the build-operate-transfer (BOT) contract to develop the project. The expressway Dien Chau-Bai Vot section has a total length of 50km and crosses the two provinces of Nghe An (44.4km) and Ha Tinh (4.9km). The project has total investment capital of VND11.15 trillion ($484.8 million), VND5.1 trillion ($221.74 million) of which come from contractors while the state will contribute VND6.06 trillion ($263.5 million).

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Colliers News Apartment prices escalated, should we continue to invest? www.reatimes.vn Sharing at a press conference, Ms. Nguyen Thi Hong Yen - Head of Colliers Vietnam Housing Real Estate Services also said: “Efforts to control the selling price of apartments to keep real value of the real estate would be a premise for this market to develop sustainably in the coming period. Home loan interest rates were also at a very good level and tended to decrease further, which would help people with real housing needs afford to buy houses at this time.” Ms. Nguyen Thi Hong Yen also added that the development of infrastructure and social facilities in Ho Chi Minh City and Hanoi had helped the property value to grow steadily. Especially the apartment segment because the urbanization rate in these two cities was very high, leading to an increase in the demand for housing. Therefore, the increase in the price of the apartment was in line with the real value of the property.

Ms. Nguyen Thi Hong Yen Head of Housing Real Estate Services | Colliers Vietnam

Binh Duong licenses five foreign-invested projects of $1 billion www.vir.com.vn Binh Duong People's Committee today awarded investment certificates for five foreign-invested projects with the total capital of nearly $1 billion. Foreign-invested Polytex Far Eastern (Vietnam) Co., Ltd., a member of Far Eastern Group, has been greenlit to pour an additional $610 million into its project at Bau Bang Industrial Zone (IZ) to expand its production of polyester synthetic fibres and spinning products.

Vietnam Singapore Industrial Park (VSIP) in Binh Duong (Park 1)

Vietnam grants investment certificates to US$1 billion FDI projects in a single day www.vietnaminsider.vn The People’s Committee of Binh Duong province on May 21 granted investment certificates to five foreign direct investment (FDI) projects with total capital of nearly US$1 billion. The five projects include two newly registered projects and three projects increasing capital with total newly registered and supplemented capital of US$974 million, the People Newspaper (NDO) reported. Polytex Far Eastern (Vietnam) Co., Ltd., a member of Far Eastern Group, has been licensed to invest an additional US$610 million into its project at the Bau Bang Industrial Zone to expand its production of polyester synthetic fibres and spinning products. After two capital adjustments, the company raised the total investment needed for the Binh Duong project to US$1.37 billion, making it one of the largest foreign investors in Binh Duong. colliers.com/en-vn

Colliers News How much is the reasonable rate of apartment rental tax? www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam affirmed that it was reasonable to tax apartment rentals based on monthly rental rates. Mr. David Jackson pointed out the reason why the State needed more tax revenue to supplement the budget to serve public purposes such as infrastructure development or schools. Second, the apartment rental tax should also be applied "equal" to other types such as personal income tax or tax on capital gains. Of course, the amount of rental income that was taxed was another story, which needed to be carefully considered from many angles before applying this provision broadly.

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

Japan holding interest in real estate www.vir.com.vn British group Shire Oak International Ltd. has recently unveiled intentions to develop rooftop solar projects in the southern province of Dong Nai this year. The information was shared at a meeting with provincial authorities. Chris Hooun, global strategy director of Shire Oak International Ltd., said that the group wants to invest in the province by cooperating with enterprises, schools, hospitals, agencies, and departments to implement the rooftop solar power project.

Many Japanese developers have been showing long-term interest in property development

South Korea opens new container shipping route to Vietnam www.vir.com.vn South Korea’s opening a new container shipping route to Vietnam will create more favourable conditions for enterprises to increase bilateral export activities. On May 24, Incheon Seaport Corporation announced that it has begun operating a new container route from Incheon port to ports in Thailand and Vietnam. Notably, the latest route, called New Korea Thailand, starts at Incheon Port, traversing a number of ports in Korea, Hong Kong, and China before reaching Laem Chabang and Bangkok Ports in Thailand and ending at Tan Cang Cat Lai Port in southern Vietnam. Ships on the new route will have three shipping containers with the capacity of 1,500-1,600 twenty-foot equivalent units (TEUs) with the frequency of one route per week.

Proptech firms catch the eye of foreign investors www.vietnaminsider.vn Vietnamese property technology firms are attracting the attention of both foreign and domestic investors keen to grab a larger share of the country’s US$500-million market. It is estimated that VietNam has about 100 proptech companies, 80 per cent of which are foreign-owned or receive foreign funding.

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

Colliers News There are still many bright spots for retail space www.cafefvn Mr. David Jackson, CEO of Colliers Vietnam said that, in general, the retail real estate market had many bright spots with high occupancy rates in most commercial centers. In fact, due to the very good pandemic control situation in Vietnam, shopping centers received a large number of customers. Thereby, brands tended to maintain, even expanded their business scale, leading to many projects integrated with the retail area being urgently completed to meet the demand for space of the market and the increasing purchasing power of people in big cities. This was a solid basis to believe that this real estate segment would completely recover this year.

Yen Phong Industrial Park - Bac Ninh

Saigon Me Linh Tower investor seeks to continue long-stalled project www.thesaigontimes.vn Me Linh Square Investment Corporation, the investor of the Saigon Me Linh Tower project on a land lot at 2-4-6 Hai Ba Trung Street in HCMC’s District 1, which had illegally been handed over to a private firm, has proposed submitting more than VND2.7 trillion to continue work on the project. The Saigon Beer-Alcohol-Beverage Company (Sabeco), under the Ministry of Industry and Trade, had earlier transferred its entire stake in the project, effectively handing over the public land to a private firm and thus causing a loss of over VND2.7 trillion for the State. The proposal has been sent to the HCMC government and some other relevant agencies, Thanh Nien Online newspaper reported.

The land lot at 2-4-6 Hai Ba Trung Street in HCMC’s District 1

Housing prices to rise sharply as steel prices surge www.vnexpress.net Rising steel prices could increase apartment prices by double digits, further reducing the supply of affordable units, experts said. Le Huu Nghia, CEO of Ho Chi Minh City-based housing developer Le Thanh, said steel prices have nearly doubled this year to VND25-26 million ($1,085-1,129) per ton and sand prices have quintupled in the last five years. With construction costs typically accounting for 60-70 percent of an apartment’s price tag, the rise in the prices of materials would increase it by 18 percent, he said. "It is impossible that apartment prices will fall." This could cause the dwindling supply of affordable apartments, priced at VND25-30 million per square meter, disappear altogether, he warned.

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