Monthly Real Estate News I May 2022 by Vietnam Realty

Vietnam Monthly Real Estate News May 2022

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

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Apartment liquidity dropped sharply www.vnexpress.net According to Colliers Vietnam, apartment transactions decreased due to the pandemic and the long break during Tet. Moreover, this brand recognizes that house prices were still on the rise, making buyers more hesitant. In addition, the movement of a number of businesses withdrawing from the auction of Thu Thiem land lots at the end of last year caused negative impacts on the housing market in the first months of 2022.

Apartment market in the East of Ho Chi Minh City.

Six working groups formed to accelerate public investment disbursements www.thesaigontimes.vn PM Pham Minh Chinh has set up six working groups to help boost public investment disbursements at ministries, agencies and provinces this year. The working groups are responsible for reviewing difficulties during the execution of public investment projects, especially those using official development assistance and preferential loans, analyzing the causes of these difficulties and proposing solutions to speed up disbursements and improve the effectiveness of the use of capital.

An infrastructure project funded by the State budget

Industrial land rent on the up thanks to Vietnam's post-Covid reopening www.vnexpress.net According to Colliers Vietnam, in Q1, the rental rate of industrial land in Ho Chi Minh City alone reached an average of USD 190 per m2 for the whole cycle, the occupancy rate reached 90%. The annual rental growth rate of the industrial powerhouse capitals increase in the South has always reached 8-9% a year in the past few years and recently.

More real estate firms in HCMC cry for help www.thesaigontimes.vn After 57 property businesses in HCMC proposed removing obstacles to 64 housing projects, 29 others have made the same petition as their 38 commercial and social housing and resettlement projects are having trouble with procedures. According to Tran Khanh Quang, a property expert, unreasonable regulations on the payment of the land use fees and investment and construction procedures in HCMC have brought many projects to a standstill. Chairman of the HCMC Real Estate Association Le Hoang Chau proposed the city quickly remove the hindrances facing the projects which are not under inspection. The approval of the land use fees and the detailed planning should be accelerated.

colliers.com/en-vn

Colliers News

Industrial land rental rates hit a new peak www.cafeland.vn As noted by Colliers Vietnam, the industrial real estate market in Ho Chi Minh City was still stable with an occupancy rate of 90% and the average rental rate at 190 USD (about VND 4.3 mil)/m2 for whole lease term. Meanwhile, Hanoi's industrial real estate market has recorded good and stable growth so far, with an occupancy rate of 90% and the average rental price of 142 USD (VND 3.2 mil)/ m2 for the whole lease term. Colliers Vietnam assessed that the warehousing, logistics, and e-commerce industries could be the main growth drivers of industrial real estate this year.

Land rent in industrial zones still keeps increasing momentum and sets new average price peak

Market opens on gloomy note due to weak cash flow www.vietnamnews.vn The markets reopened after the holiday on a gloomy note as weak cash flows dented outlook. Liquidity was lower than the previous session with about 528 million stocks traded on the southern bourse, equivalent to VNĐ14.5 trillion (US$629 million). According to analysts, the falls in many large-cap stocks were the driving force behind the market’s The Hòa Phát Dung Quất Complex in stumble. Foreign investors withdrew from the market as they net sold Quảng Nghãi Province. HPG stocks lost VNĐ279.25 billion worth of stocks. Of which, they net sold VNĐ305.32 3 per cent on Wednesday. billion on HoSE and net bought VNĐ26.07 billion on HNX. — VNS

More than 84,000 billion VND invested in 3 key highway projects www.cafef.vn Recently, the Government has submitted to the National Assembly for consideration and decision on investment policy in three national key highway projects: Chau Doc - Can Tho - Soc Trang, Bien Hoa - Vung Tau and Khanh Hoa - Buon Ma Thuot. Developing Vietnam's seaport system, which is considered a strategic deep-water port of the Mekong Delta region with the Chau Doc - Can Tho - Soc Trang expressway project.

The rise in house prices far outpaces people's incomes www.vietnambiz.vn According to the Ministry of Construction, housing prices are now higher than people's incomes. In big cities like Hanoi and Ho Chi Minh City, there are almost no apartments under 25 million VND/m2, the supply of commercial housing in the first quarter has not been improved, especially the number of projects that have been approved. new licensing is only about 41%. In which, the number of apartments of the projects is about 49% compared to the same period last year. This alarming situation was also pointed out by the Ho Chi Minh City Real Estate Association (HoREA). Specifically, the real estate market is very short of housing supply, especially affordable commercial housing (affordable housing) and social housing. colliers.com/en-vn

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

FDI reaches over 10.8 billion USD in Jan-April www.vietnamplus.vn The inflow of foreign direct investment into Vietnam hit 10.8 billion USD in January - April period, according to the Ministry of Planning and Investment

Vietnam ready to assist Australian businesses: diplomat www.vietnamplus.vn Vietnam will support Australian enterprises as they explore and expand their investment, business and trade activities in the country, Vietnamese Ambassador to Australia Nguyen Tat Thanh told the host’s business community on May 5. Addressing a meeting with representatives from Australian firms, Thanh briefed them on the economic situation and trade development potential of Vietnam. He cited the Asian Development Bank’s forecast as saying that Vietnam's economy will post a strong recovery in 2022, with growth reaching 6.5 percent, and 6.7 percent in 2023.

FDI reaches over 10.8 billion USD in Jan-April

Long Duc Industrial Park is of multi-million-dollar scale

Space expands for capital inflows from overseas www.vir.com.vn Foreign capital inflow in Vietnam is expected to gain new momentum on the back of fresh commitments from overseas investors. Japanese-backed Sojitz Corporation is planning to increase its investment portfolio with an upcoming project to develop an additional industrial park (IP) in the southern province of Dong Nai. An MoU was inked last week between Sojitz and its partners. Although a representative of Sojitz did not disclose the specific capital for the project, Tran Thi Thu Huong, senior investment expert for Sojitz and deputy general director of Long Duc IP in Dong Nai, told VIR, “This project’s capital scale is larger than the $250 million IP project that Sojitz, DEEP C Industrial Zones, and Bamboo Capital Group are co-operating on.”

Chinese speakers in demand as factories expand www.vir.com.vn Chinese factories are ramping up recruitment of Chinese-speaking Vietnamese personnel for expanding projects in Vietnam. Solar panel manufacturer Jinko Solar Vietnam in the northern province of Quang Ninh is looking for 5,000-8,000 workers, with most of them required to have basic Chinese communication skills. So far, less than 1,000 have been hired. "Manufacturing workers, technicians, quality control managers, we need them all. But not many suitable candidates are available," said Dang Tran Hoang Anh, an HR officer with the company.

colliers.com/en-vn

Colliers News

Major property 'recovering'

markets

Asia-Pacific

are

www.nguoidothi.net.vn According to Mr. David Jackson, CEO of Colliers Vietnam: “Data from the Asia-Pacific Market Overview Report in the first quarter of 2022 shows that major markets in the region are on the way to recovery. Vietnam is a bright star with a thriving industrial real estate segment along with the trend of diversifying production and supply chains in the region. The government has many policies and incentive programs to stimulate growth, stalled projects are restarting and there are investment opportunities in every market segment.”

60% of transactions in Shanghai are mainly concentrated in the office and office segment in the Business Park cluster with a total value of US$939 million.

Tax system reform strategy to 2030 approved www.vietnamplus.vn The strategy aligns Vietnam’s tax policy with international practices to meet resource requirements and realise the 10-year socio-economic development strategy to 2030. It will help stabilise State budget collections from taxes and costs in association with socio-economic development strategies for 2021-25 and 2026-30.

At a tax agency

Hanoi to develop into globally-connected city 2045 www.vir.com.vn Under newly-issued plans, Hanoi will be transformed into a globally-connected city and a regional economic hub by 2045, with high living conditions and comprehensive growth. Party General Secretary Nguyen Phu Trong has signed a decision to issue Resolution No 15, guiding the development of the Hanoi Capital Region until 2030 with a vision towards 2045. Under the new resolution, Hanoi is designated to become a centre and development for the Red River Delta and a key economic region of the north, with high regional and international competitiveness by 2030.

Export sector is bright spot for Vietnam economy www.thesaigontimes.vn New statistics show that Vietnam’s exports in April expanded a staggering 25% year-on-year at US$33.26 billion while imports reached US$32.19 billion, up 15.5%. In the first 4 months of the year, Vietnam had a trade surplus of US$2.53 billion. A Maybank Investment Securities (MIB) report said almost all sectors registered positive export growth, with crude oil advancing 204% against March in which it fell 6%, iron and steel rising 23.6%, textiles and garment surging 25.4%, computers, electronics and components edging up 23.2% and phones and components picking up 62.8%. Supply chain disruptions caused by the military conflict between Russia and Ukraine and China’s strict Covid lockdowns did not affect Vietnam’s export performance. colliers.com/en-vn

Colliers News

Industrial park real estate welcomes wave of production expansion www.tinnhanhchungkhoan.vn Mr. Chi Vu, Head of Sales - Industrial Park Services of Colliers Vietnam shared, grasping the trend of production diversification and foreign direct investment inflows into Vietnam, industrial production spots such as Binh Duong, Long An, Dong Nai in the South and Hai Phong, Hai Duong and Bac Ninh in the North would be hot spots to attract investors. Warehousing, logistics, e-commerce, etc. could be the main growth drivers of industrial real estate this year.

Many existing industrial parks have high occupancy rates.

CPI inches up 0.18% in April www.thesaigontimes.vn Vietnam’s Consumer Price Index (CPI) in April edged up 0.18% monthon-month, mostly due to the rising prices of building materials, according to the General Statistics Office. The CPI increase also resulted from the higher prices of catering and tourism services as well as education. The index last month rose 2.09% over the end of last year and 2.64% year-on-year. Among the 11 groups of consumer goods and services in the basket of items used to calculate the CPI, housing and construction materials climbed 2.7% on the surge in input material prices.

An aerial view of the Lien Khuong - Prenn expressway in Lam Dong Province, Vietnam

Ministry proposes auto tax payment extension worth VND20 trillion www.bizhub.vn The Ministry of Finance has proposed the Government give an extension on the deadline for payment of a special consumption tax worth a total VND20 trillion (US$870.5 million) on domestically produced and assembled cars. Accordingly, payable amounts for June, July, August and September would be extended to November 20. The ministry said that the extension was aimed at urgent support for the domestic car industry to overcome difficulties after the pandemic.

$364mn proposed for expressway construction in southern Vietnam www.tuoitrenews.vn The Ministry of Transport has submitted the first phase investment plan, estimated at over VND8.36 trillion (US$364 million), for the construction of the Dau Giay-Tan Phu expressway under the public-private partnership (PPP) model to Prime Minister Pham Minh Chinh for consideration and approval. The project is planned to stretch about 60.1 kilometers, starting at the intersection with National Highway 1, which coincides with the ending point of the Ho Chi Minh City - Long Thanh - Dau Giay expressway, and ending at a connecting point with the Tan Phu - Bao Loc expressway project. colliers.com/en-vn

colliers.com/en-vn

U.S. investments in Vietnam exceed US$10 billion www.thesaigontimes.vn U.S. firms have so far registered a total of US$10.47 billion for 1,160 investment projects in Vietnam. A Ministry of Planning and Investment report said U.S. investors pledged over US$147 million in 24 new projects and eight operational projects in the first fourth months of the year.

International news: Vietnam affirms its position in the supply chain www.vietnaminsider.vn Especially with the current fluctuations of the world economy, the need to diversify the global supply chain is very urgent, the effectiveness in disease control and economic recovery makes Vietnam continue to be chosen as an attractive destination. Currently, Vietnam has become Samsung’s largest phone production center, producing 60% of the total number of phones sold by this brand globally.

An auto manufacturing factory of Ford Vietnam, a joint venture of U.S. and Vietnamese enterprises

An overview of Hue City. The central Thua Thien Hue province plans to attract investment from Japan, the EU and the US.

FDI – bright spot of Vietnam’s economy amid COVID-19 www.vietnamplus.vn The Vietnam Association of Foreign Invested Enterprises (VAFIE) released an annual report on foreign investment in Vietnam last year at a meeting in Hanoi on May 10. The report was made with the cooperation of KPMG Vietnam that provides independent audit services and the support of the Foreign Investment Agency under the Ministry of Planning and Investment, Fiin Group and some economists, according to VAFIE Vice President Nguyen Anh Tuan. The 250-page report, in both Vietnamese and English, is expected to be useful for policy-making agencies, research and training institutions, FDI firms and international investors, he said.

Aeon Mall Viet Nam to build trade centre in Huế www.bizhub.vn Aeon Mall Viet Nam plans to build its first trading centre, Aeon Mall Hue, covering a total 86,000sq.m, with an investment of US$170 million in the central province’s new urban area of An Van Duong. The province’s people’s committee said the plan, which was accepted by the local authorities earlier in May, would open for operation in 2023 to celebrate the 50th anniversary of Viet Nam-Japan diplomatic ties. It said the province and Aeon Mall Viet Nam had signed a Memorandum of Understanding on the development of a trading centre to boost tourism, trade and attraction of investment from Japan to Thua Thien Hue.

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Colliers News Support for some real estate segments in the coming time www.vietnambiz.vn David Jackson, CEO of Colliers Vietnam, assessed that in the near future, along with the general recovery of the economy, there were many factors that made us continue to be optimistic about the real estate market. Particularly in the field of industrial real estate, Colliers expert said that the strong growth momentum was likely to continue due to many favorable objective conditions, including the dynamism of e-commerce.

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

Fresh opportunities abound for US transport investors www.vir.com.vn

As Vietnam strongly promotes private investment in transport infrastructure with a number of potential initiatives in the pipeline, more openings may become available for American investors, including aviation and maritime projects such as airports and seaports.

No property firms issued debt last month

Vietnam wants to emulate the United States with its well-developed transport infrastructure

www.thesaigontimes.vn

After Tan Hoang Minh’s nine bond issues had been canceled and its senior executives detained over this matter, and the Government had called for measures to cope with real estate firms’ debt issues, no property firms issued bonds in April. In March, real estate enterprises led in terms of the value of debt issues, accounting for 46.7% of the total. In the year to end-April, they still took the lead with VND28.85 trillion, making up 37.35% of the total debt issued, followed by banks with nearly VND24.4 trillion.

Closing the start time of Can Gio Bridge and Thu Thiem 4 Bridge www.thanhnien.vn Can Gio bridge project (total capital of nearly 10,000 billion VND) and Thu Thiem 4 bridge (5,300 billion VND) are decided to approve investment policy and conduct pre-feasibility study report in the period of 2022 - 2023 It is expected that both of the above projects will choose an investment contractor, starting construction in 2024 to complete and put into use in 2028.

colliers.com/en-vn

Vietnam, U.S. sign multiple cooperation deals www.thesaigontimes.vn

Governmental agencies and businesses of Vietnam and the U.S. have signed multiple cooperation agreements, mainly on credit for green projects, with Prime Minister Pham Minh Chinh, who is in the United States to attend the ASEAN-US Special Summit, witnessing.

Solutions to ineffective use of foreign loans

Vietnam wants to emulate the United States with its well-developed transport infrastructure

www.vietnamnet.vn

The Ministry of Finance recently reported to the Prime Minister on the disbursement of ODA and concessional foreign loans in 2021. Vietnam signed nine agreements on ODA loans and preferential loans with foreign donors with a total value of 933.4 million USD in 2021, including up to four loan agreements totaling 727.7 million USD with the World Bank, accounting for 78% of the total value signed in the year.

A view of a local real estate project

HCMC tightens construction of high-rise buildings to 'save' traffic www.vnexpress.net Ho Chi Minh city starts to tighten the construction of high-rise buildings with the condition that the project ensures not to cause traffic jams. It is predicted to impact on increasing investment costs and launching new projects.

HCMC restarts work on major road upgrade project www.thesaigontimes.vn The upgrade of Luong Dinh Cua Street in HCMC’s Thu Duc City resumed yesterday, May 11, after cleared land had been handed over to the project. The 2.5-km road starts from Mai Chi Tho Avenue to the Tran Nao intersection. The project is aimed at widening the road from 7-8 meters to 30 meters with six lanes. Work on the project began in 2015 and was scheduled to be completed after two years, but slow site clearance affected the progress of the project. By the end of 2020, the project was only 60% complete and remained suspended until this year, reported news site VnExpress.

Vinhomes to build half a million social housing units in five years www.vnexpress.net Real estate giant Vinhomes plans to construct 500,000 social housing units over the next five years, its chairman Pham Thieu Hoa said in the annual general meeting Thursday. Starting prices per unit will range between VND300-950 million ($13,000-41,200), he added andwill have an area of over 50 hectares each and be located in suburban areas of large cities like Ho Chi Minh City, Hanoi, Hai Phong and Quang Ninh.

colliers.com/en-vn

Colliers News 3 optimistic factors about the real estate market in the second quarter of 2022 www.thegioitiepthi.vn Commenting on the situation of the real estate market in the coming time, Mr. David Jackson - CEO of Colliers Vietnam said that, along with the general recovery of the economy, there were many factors that made us continue to be optimistic about the market. Specifically, new policies helped stabilizing the market, industrial real estate continued to grow, and office real estate segment became more vibrant were optimistic factors about the real estate market in Q2/2022.

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

Vietnam placed 56th in Chandler Good Government Index 2022 www.vietnamplus.vn Vietnam has been placed third among low-middle-income nations and 56th globally out of 104 ranked countries in the Chandler Good Government Index (CGGI) 2022 freshly released by the Singaporean-based Chandler Institute of Governance.

Source: Chandler Good Government Index

Avoid unworthwhile investments, try estate taxes, Vietnam advised www.vnexpress.net At a Saturday conference in Harvard University on Vietnam's development strategy in the 21st century, Prime Minister Pham Minh Chinh said Vietnam's economy has expanded into the fourth largest economy in ASEAN and among the world's top 12 economies with the largest scale of commerce. The country also takes part in 15 active FTAs, he said. In addition, Harvard University experts have advised that Vietnam should stay away from investments that don't make it competitive and experiment with real estate taxes to sustainably develop its economy.

Risk remains even if credit chokes www.thesaigontimes.vn The State Bank of Vietnam has asked banks, including foreign lender branches, to closely monitor the credit flowing into risky sectors, where real estate and corporate bond channels exist. This article will analyse the risks banks face while funding property projects and address suitable solutions.

colliers.com/en-vn

Colliers News

Little known story about real estate in Thu Duc City: Why is the price increase difficult to stop? www.saigoneconomy.vn Mr. David Jackson, CEO of Colliers Vietnam, said that there were many factors that made real estate prices in Thu Duc City likely to continue to increase in the future. In addition to the planning information, the belief in the future of Thu Duc City of people with real housing needs, investors and owners was one of the important reasons for the rapid increase in house prices. Projects like Thu Thiem international center made people's trust even more grounded.

Thu Duc City

PV Gas, US firm get investment registration certificate for Son My LNG terminal www.vnexpress.net PV Gas and U.S. firm AES have received the investment registration certificate for Son My LNC terminal, which is expected to begin commercial operations in 2026. The investment registration certificate is a major enabler for the establishment of the Son My LNG terminal project company. The terminal will have an installed capacity of 450 trillion British thermal unit (TBtu) and represents a total investment of about $1.4 billion.

Representatives of AES (L) and PetroVietnam Gas Joint Stock Company (R) were granted an Investment Registration Certificate for the Son My LNG terminal project.

Samsung completed parts of construction of R&D centre in Hanoi www.vir.com.vn On May 14, Samsung Vietnam completed part of the construction for its new research and development (R&D) centre in Hanoi. The above ceremony marks the completion of 70 per cent of the workload. Samsung ensures that the construction goes on as planned and expects to take the centre into operation by the end of this year as previously committed to the government. The centre has the total investment of $200 million, and the construction was started in March 2020.

Vietnam targets 10 $5 bln state-owned firms by 2025 www.vnexpress.net Vietnam aims to have at least 10 state-owned businesses with a market capitalization of over $5 billion in the next five years. In accordance with a resolution to improve the effectiveness of state companies signed by Deputy Prime Minister Le Minh Khai, Vietnam will have at least 25 state-owned businesses with either a stockholder's equity or a market capitalization of $1 billion. Among these, at least 10 businesses must reach over $5 billion in capitalization. Within the next five years, these companies would contribute 5-10 percent more to the national budget compared to the 2016-2020 period.

colliers.com/en-vn

HCMC seeks to remove obstacles facing 38 property projects www.thesaigontimes.vn The HCMC government has asked the Department of Construction to coordinate with other departments and agencies to quickly remove bottlenecks facing 38 real estate projects in the city as proposed by the HCMC Real Estate Association (HoREA).

Residential blocks in HCMC

HCMC to develop at least 10 hectares of public parks in 2022 www.thesaigontimes.vn The HCMC government will seek to develop new public parks covering at least 10 hectares plus two hectares of public green space this year, according to a plan just issued by the municipal government. Under the plan, the city’s government asked 21 districts and Thu Duc City, which is under the jurisdiction of HCMC, to map out detailed plans for the investment and development of public parks and green spaces in their areas this year.

A view of Tao Dan Park in downtown HCMC

Accounts of 2 businesses that won the Thu Thiem land auction have no cash flow, have not been able to coerce www.tuoitre.vn After 12 days of officially issuing the decision on tax enforcement for the two businesses that won the Thu Thiem land auction with the amount to be paid in the first installment, the Thu Duc City Tax Department still has not been able to enforce any money due to the accounts of these two businesses have no cash flow. At the end of May 17, the leader of Thu Duc City Tax Department (HCMC) said the above. This leader also said that these are newly established businesses, have not traded anything, and have no cash flow, so after 12 days of officially issuing the decision to enforce bank accounts, the tax authorities have not get money.

More connection from Thu Duc City to Thu Thiem 2 Bridge www.thanhnien.vn Yesterday (May 17), Director of the Department of Transport of Ho Chi Minh City. Ho Chi Minh City Tran Quang Lam chaired a meeting with relevant departments and units to discuss the plan to connect Vu Tong Phan Street with Nguyen Hoang Street, Thu Duc City. The connection of Vu Tong Phan street to Nguyen Hoang route will create more traffic directions for people in An Phu ward (Thu Duc city) to travel to Thu Thiem bridge 2. Vu Tong Phan street (East-west 1), section from Nguyen Hoang street to 24th street has the whole route length of 875m, width 32m, invested by Thu Thiem Investment Joint Stock Company (Thu Thiem company). The completed route will create more traffic directions for people in An Phu ward (Thu Duc city) to move to Thu Thiem 2 bridge, reducing traffic pressure on the parallel road to Hanoi Highway and the turning point is in front of Cantavil Building on Hanoi Highway.

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Colliers News Industrial land prices hit new peaks www.baodautu.vn Industrial land prices peaked due to the influx of new FDI when Vietnam reopened, plus the need to expand production of existing businesses. According to Colliers Vietnam, by the end of the first quarter of 2022, the price of industrial land in the South has increased sharply.

Industrial real estate has established a new price level.

Apple eyes supply chain expansion in Vietnam www.vnexpress.net Tim Cook, CEO of Apple, has appraised Prime Minister Pham Minh Chinh about the U.S. tech giant’s interest in expanding its supply chain in Vietnam. Apple will consider using more Vietnamese suppliers, as well as their parts and services in Apple’s products, Cook said. He also expressed his hope that the Vietnamese government would provide more favorable policies to encourage U.S. high-tech enterprises to invest in the country.

Vietnam Prime Minister visits Apple's headquarters in California

Singapore’s SP Group steps up investment in Vietnam www.thesaigontimes.vn SP Group, Singapore’s energy supplier, has teamed up with NuriFlex, a South Korean rooftop solar maintenance and operation service provider, to install a rooftop solar power system with a capacity of 20 megawatt-peak in Vietnam. Provide energy for the latter’s three major plants, which are operating 56 production lines with 65,000 employees.

By 2030, Vietnam will have more than 1,000 urban areas www.vnexpress.net Head of the Central Economic Commission Tran Tuan Anh said that the Politburo aims to speed up and improve the quality of urbanization; network sustainable urban development; forming a number of smart dynamic urban chains connecting with the region and the world. Vietnam will have 1,000-1,200 urban areas by 2030, of which 3-5 cities will have regionally and internationally recognized brands.

Tan Son Nhat to start building new passenger terminal this month www.thesaigontimes.vn Work on the foundation of Terminal T3 at the Tan Son Nhat International Airport in HCMC is expected to begin within this month, according to the Airports Corporation of Vietnam (ACV). The terminal project is awaiting the handover of land. The corporation reviewed all costs to finance the project at some VND11 trillion.

colliers.com/en-vn

Central bank limits foreign loans for trading stock, real estate www.vnexpress.net The State Bank of Vietnam wants to limit short-term foreign loans for trading stock and real estate as it seeks to prevent speculative bubbles in the market. The bank is collecting feedback on its draft circular to replace the current version with stricter conditions for receiving short-term foreign loans to ensure a national debt limit.

An employee counts money at a bank in Hanoi.

VND23 trillion proposed for Ring Road 4 in Hanoi area www.thesaigontimes.vn The Hanoi City government has proposed spending nearly VND23 trillion developing the 58-kilometer section of the Ring Road 4 project in the capital city area in the 2022-2030 period. The project will require over VND19 trillion in the 2021-2025 period, while some VND4 trillion will be injected into the section running across Hanoi City in the 2026-2030 period, according to a recent dispatch sent by the city government to the People’s Council of the city.

A map details the direction of the Ring Road 4 project in the capital region

HCMC needs over US$3 bln for housing development www.vietnamnet.vn Accordingly, the city set massive targets for housing development, including a demand of at least 6.7 million square meters of housing and an average housing floor area per person reaching at least 21.2 square meters, extending 194.6 hectares of land for commercial housing projects and 52.1 hectares for social housing projects. Regarding capital sources, the city will need around VND72,578 billion (US$3.1 billion), including VND28,435 billion (US$1.2 billion) for commercial housing projects, VND43,456 billion (US$1.9 billion) for individual houses and VND698 billion (US$30 million) for social housing projects.

HCM City real estate: more high-end property, but fewer affordable products www.vietnamnet.vn HCM City authorities have reported to the Ministry of Construction (MOC) about the implementation of housing policies and the real estate market in 2021. For high-end large-scale projects and developers with projects that need to borrow capital, HCM City People’s Committee believes that it’s necessary to strengthen supervision over the granting of credit. The city’s real estate market did not see big changes in number of houses because of the big impact from the Covid-19 pandemic and the lockdown. The housing supply was modest. There were still many problems in the legal framework which cost enterprises time to prepare documents for project development. Meanwhile, many projects in HCM City were under inspection, examination, auditing, review of legal procedures, and even investigation. This led to the slow coordination among relevant departments in handling legal procedures of projects.

colliers.com/en-vn

Colliers News The opposite colors of the real estate market www.thuongtruong.com.vn “Unlike many other segments, resort real estate in general has not increased in price too much during the past two difficult years caused by the COVID-19 pandemic. For example, land plots, agricultural land in some places have increased by several tens of percent, while resort villas have only increased by 4-5%. This will also be a reason for investors interested in this segment to have more motivation to put down money”, said Mr. David Jackson, CEO of Colliers Vietnam.

Resort real estate.

Large industrial zones set up to attract FDI www.vir.com.vn Several large-scale industrial zones were being set up from the beginning of this year to capture the opportunity of attracting both foreign and domestic manufacturers in the wave of post-pandemic production and business recovery. To date, the industrial zone attracted more than 30 companies, both domestic and foreign, to study the production opportunity, with an expected total investment of around US$1.8 billion.

The positive growth prospect of the Vietnamese economy after the pandemic attracted investors and created conditions for the industrial real estate market.

Industrial hub Dong Nai to renovate its capital for $320 mln www.vnexpress.net The industrial hub of Dong Nai will carry out a series of projects at almost VND7.4 trillion ($320 million) to upgrade its capital town Bien Hoa. Dong Nai Province that borders Ho Chi Minh City is working on a project it had launched last year to upgrade a riverside route stretching 5.2 kilometers long beside the Dong Nai River in Buu Long Ward of Bien Hoa Town. Costing VND1.3 trillion ($56 million), the project includes works to build the river embankment, parks and a tunnel. To carry out the project, authorities had to relocate 302 households.

Mekong Delta localities contribute $185 mln to build expressway www.vnexpress.net Can Tho City and An Giang, Hau Giang, Soc Trang provinces will contribute VND4.3 trillion ($185 million) to build an inter-provincial expressway of 188 kilometers. Chau Doc – Can Tho – Soc Trang Expressway will run 57 kilometers in An Giang, 37 kilometers in Can Tho, 37 kilometers in Hau Giang and 58 kilometers in Soc Trang. Costing a total VND44.7 trillion, it will be built using the state budget. As planned by the Ministry of Transport, work on the project will start within next year for the first phase to be completed in 2026. In this phase, the route will span 17 meters wide to have four lanes, allowing vehicles to move at the maximum speed of 80 kph. In the second phase, set to be completed in 2030, the expressway will be expanded to six colliers.com/en-vn

Proposing to add payment for real estate transfer via bank into the law www.thanhnien.vn The Ministry of Finance will advise the Government to supplement regulations on payment via banks for real estate transfer activities in Article 16 of the Law on Real Estate Business.

Europeans getting taste for Vietnamese intentions www.vir.com.vn Popular European companies are continuing to eye up new deals or expansion here. Alain Cany, chairman of the European Chamber of Commerce in Vietnam talks about his assessment of the flow of foreign funding from the European continent. For the first quarter of 2022, the index reached 73 out of a possible 100, its highest point following Vietnam’s peak of pandemic restrictions last year. Similarly, more than two-thirds of respondents expect the Vietnamese economy to improve in the second quarter. Hopes remain high.

Deployment of solutions to prevent loss of real estate transfer tax revenue

Project division map for Ring Road 4

Ho Chi Minh City outlines specific progress, decides to exploit Ring Road 4 in 2028 www.thanhnien.vn Ho Chi Minh City Department of Transport and Dong Nai, Binh Duong, Ba Ria-Vung Tau provinces have just implemented the implementation plan of the projects of Ring Road 4 of Ho Chi Minh City. Based on the opinions of the participating units, the Department of Transport of Ho Chi Minh City has completed the draft plan to coordinate the implementation of the projects of the Ring Road 4. After that, in March 2023, the appraisal will be completed, decide on investment policy. The handover of the site will be carried out in parallel during the construction project so that it will be completed in December 2027 and technical traffic of the whole route will be opened. The Ring Road 4 project in Ho Chi Minh City is expected to be put into operation and toll collection in the first quarter of 2028.

Van Don – Mong Cai highway: new launch pad for Quang Ninh’s economic growth www.vietnamplus.vn The Van Don – Mong Cai highway, which is scheduled for completion and operation on June 30, aims to create favourable conditions for the northeastern province of Quang Ninh to make breakthrough developments and promote economic links in the region. Nguyen Tien Oanh, Director of the Executive Board of the highway project (the Tien Yen - Mong Cai section), said it has taken time to complete this section – which extends from Bach Dang bridge to the Mong Cai international border gate, because of difficulties caused by the COVID-19 pandemic and other reasons. However, the foundation of the sector has been basically completed and is entering the finishing stages, he said. According to representatives from the Ministry of Transport, the Van Don - Mong Cai highway, which is part of the Hanoi – Quang Ninh highway, plays a strategic role for the socio-economic development of Quang Ninh and other northern localities.

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Colliers News Industrial land rental price is close to 200 USD per m2

www.vnexpress.net According to Colliers Vietnam, in the first quarter, industrial land rents in Ho Chi Minh City alone reached an average of $190 per square meter for the whole cycle, the highest in the country. The annual rent growth rate of the industrial capitals in the South has always reached 8-9% a year in the past few years. With the land fund of industrial zones in Ho Chi Minh City running low, Binh Duong, Long An and Dong Nai have become hot spots to attract investors to industrial zones.

Tan Tao Industrial Park, Binh Tan District, Ho Chi Minh City.

Credit tightening = supply decreases, real estate prices increase: Buying a house is getting harder www.thanhnien.vn

Transactions fell, but real estate prices still increased and combined with difficult loans, people had less and less opportunities to buy houses. Along with the supply of commercial housing in the first quarter of 2022 has not yet improved, especially the number of newly licensed projects is only about 41%

The supply of housing and real estate will continue to be lacking when businesses

Dong Nai to spend over VND2.6 trillion on expy site clearance www.thesaigontimes.vn The Dong Nai People’s Council has passed a plan to allocate over VND2.6 trillion for site clearance and compensation of the first phase of the Bien Hoa-Vung Tau expressway project, which will link the province and Ba Ria-Vung Tau, heard a meeting on May 24. The allocated budget will cover 50% of compensation and land clearance costs of the 34-kilometer section running through the province, the local media reported. The compensation and site clearance capital will be sourced from the mid-term public investment fund and an increase in budget revenue in the 2021-2025 period. The section to be built in the province will cost VND12.6 trillion, including VND5.2 trillion for site clearance and compensation.

Work begins on first hi-tech project at Becamex VSIP in Binh Dinh www.thesaigontimes.vn KURZ Vietnam and New CC Construction Consultants Co. today, May 24, broke ground on a hi-tech foil and thin film factory at Becamex VSIP in Binh Dinh Province, making it the first of its kind to be developed in the industrial park in the Nhon Hoi Economic Zone. The US$40-million plant covering 12 hectares is also the first project invested by Germany’s KURZ International Holding, the local media reported. The first phase of the hi-tech facility covering 60,000 square meters will be put into operation in the third quarter of 2023 and manufacture 15 million square meters of products per year. Investment in the project is expected to increase to US$100 million in the next 10-15 years.

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are squeezed capital

Colliers News The real estate market in the three regions is fiercely competitive www.reatimes.vn According to Mr. David Jackson, CEO of Colliers Vietnam, in terms of policy, how the authorities make the next specific decisions on the tightening of real estate credit will have the most important impact on the developments in the segment of apartments, townhouses and resort real estate. Policies to regulate capital "flow" more into manufacturing industries and direct to people with real housing needs to help them get a place to live are very important and necessary.

Land plots in many localities in the North set up new price levels.

Apple could get AirPods Pro 2 made in Vietnam: report www.vnexpress.net Supply chain analyst Ming-Chi Kuo tweeted Tuesday that the new AirPods would be mass produced in Vietnam from the second half of this year. "The shift in AirPods Pro 2 production can be attributed to the relatively uncomplicated supply chain and Vietnam’s better production environment (such as infrastructure and workforce) vs. most countries outside China."

A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in Shanghai

HCMC decided to remove the "slum" house to improve the urban face www.laodong.vn According to the plan, from now to 2025, Ho Chi Minh City will complete compensation and relocation of 14,000 houses on and along the canals with a total estimated capital of more than 28,400 billion VND. The relocation of houses on canals and embellishment of canals is a fundamental and sustainable solution to renovate the urban face, completely handle flooding and pollution in Ho Chi Minh City, contributing to the implementation of effective Resolution No. 06-NQ/TW of the Politburo on "Planning, construction, management and sustainable development of urban areas in Vietnam up to 2030, with a vision to 2045"

Hanoi's second metro line, 13 years on www.vnexpress.net After three times of cost increase and four times of delay, the Nhon-Hanoi Station metro line is expected to be fully operational by 2027.

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Colliers News This type of real estate is "going against the flow" of the market, being sought after by investors despite its high price www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam said that Shophouse was usually quite scarce in the market because the possible number of this type in each apartment project was not much (usually lower than 5% of the total number of apartments). This was the reason why this type was still "hunted" by investors despite its sharply increase in price.

Mr. David Jackson CEO of Colliers Vietnam

Over VND109 trillion for post-pandemic economic recovery www.thesaigontimes.vn Following several proposals over financial and monetary policies for the post-Covid socio-economic recovery and development, the Government plans to spend some VND109.2 trillion on this purpose. Of the total, VND87.5 trillion will be allocated to the traffic infrastructure sector.

Vehicles travel on an expressway in Vietnam. The Government will spend some VND109.2 trillion on the

Da Nang is about to auction the 'golden' land of more than 20,000m2 www.vietnamnet.vn On May 26, the People's Committee of Da Nang City said that it had just issued a decision on approving the starting price for auctioning land use rights for the land area symbol A3-2 in the Residential Area South of Cam Le Bridge. According to this decision, the starting price for auctioning the land use rights for the Land Area symbol A3-2 in the Residential Area South of Cam Le Bridge is VND 10,513,000/m2. 50 years shelf life. The form of one-time land rental payment for the entire lease period, the purpose of which is land for construction of educational and training institutions.

Danish investors pinpointing rising potential of Vietnam’s green energy www.vir.com.vn Danish investors are eyeing sectors in Vietnam that support a green transition. Kim Højlund Christensen, Danish Ambassador to Vietnam, told VIR’s Nguyen Thu why establishment of a legal framework that allows companies to document related data can help attract high-quality investment from abroad. However, there is a lack of access to renewable energy in Vietnam. There is also no regulatory framework regarding granting renewable energy certificates or carbon credits to manufacturers. This makes it difficult for foreign investors to recognise their emission reduction commitments. Attracting FDI, therefore, will depend increasingly on the availability of green energy supply.

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Colliers News Investors can still make a lot of money from this real estate segment in the long term www.saigoneconomy.vn Mr. David Jackson, CEO of Colliers Vietnam, said that the continued FDI inflows to Vietnam also brought benefit to the industrial and office real estate segments. "Currently, supply, demand and office occupancy rates in Ho Chi Minh City, Hanoi and Da Nang are all having good indicators, showing a rapid recovery of this segment. The reopening of international routes at the end of Q1/2022 can be considered as one of the most significant stimulus factors not only for the office segment in particular but also for the real estate market in general", expert of Colliers Viet Nam emphasized.

New office in Ho Chi Minh City drips supply, prices increase.

FDI disbursement up 7.8 percent in five months www.vir.com.vn Up to 7.71 billion USD worth of foreign direct investment (FDI) was disbursed in the first five months of this year, up 7.8 percent from the same period in 2021, according to the Ministry of Planning and Investment. As of May 20, total FDI in Vietnam, comprising new, adjusted capital and share purchases by foreign investors, dropped 16.3 percent year-on-year to reach only 11.71 billion USD.

Foreign capital has been poured into 18 out of 21 economic sectors in Vietnam.

80 percent of real estate trading floors reopen www.vir.com.vn Up to 80 percent of real estate trading floors have resumed operations, along with the establishment of new ones, according to the Ministry of Construction (MoC). The ministry’s report on the real estate market in 2021 and the first three months of this year, which has been submitted to the Prime Minister, showed that real estate trading floors have bounced back. The report noted there were more than 1,600 real estate trading floors nationwide in 2020. However, due to the heavy impact of the pandemic, only 20 percent maintained operations.

National Assembly to discuss 5 major transport projects this week www.vietnamnet.vn On May 31, NA deputies will listen to the report on the verification of investment policy for the Chau Doc-Can Tho-Soc Trang expressway (phase 1); Khanh Hoa-Buon Ma Thuot expressway (phase 1); Bien Hoa-Vung Tau expressway (phase 1); Ring road 4 in Hanoi and Ring road 3 in Ho Chi Minh City and discuss in group about these contents. The legislative body will spend the first day of the working week discussing in the hall the implementation of policies and laws on planning work since the Law on Planning took effect.

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Colliers News

Shophouse apartments in Ho Chi Minh City are still scarce, rental profit margin may reach 12%/year www.cafef.vn Mr. David Jackson, CEO of Colliers Vietnam, shared that there were 2 biggest advantages that shophouse apartments brought to owners. Firstly, there were a variety of ways to help owners find income. According to Mr. David Jackson, Shophouse occupied the most favorable locations for business in buildings. Second, it was strong and sustainable upside potential. Due to possessing so many elements of a real estate, the shophouse's high potential for price appreciation was understandable. According to Colliers Vietnam expert, although there are signs of recovery, the shortage of apartment supply continues. In particular, the number of shophouse apartments usually only accounts for a very small percentage, usually no more than 5% of the total number of apartments in the project.

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

Vietnam changes FDI attraction policy, strives for green production www.vietnamnet.vn With strategic vision, many FIEs in Vietnam have re-oriented their production and business activities, striving for green and sustainable development. In order to realize the commitments, Vietnam needs to speed up the implementation of the green development strategy, concretize the strategic contents of the Green Growth Action Plan in the direction of creating a premise for the construction of ‘a roadmap for realizing green growth associated with socio-economic development with a long-term vision to achieve net zero emissions by 2050’.

Vietnam changes FDI attraction policy, strives for green production

Real estate progress hits credit curbs www.vir.com.vn With the movement to limit lending to the real estate sector along with the tightening of bond issuance, capital inflow into the real estate market is being congested. With the tightening orders being implemented, the real estate market has shown signs of cooling down. Figures from Batdongsan.com.vn’s April report showed that interest in land plots sold across the country decreased by 18 per cent compared to the previous month and decreased by 8 per cent compared to the same period in 2021.

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