Monthly Real Estate News | November 2019 by Vietnam Realty

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VIETNAM MONTHLY REAL ESTATE NEWS - November 2019 -

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Daily Real Estate News Highlights Vietnam - 01 November 2019

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

New perspective for Danang’s real estate

Vietnam Investment Review Vietnam’s coastal locations are a magnet for international tourists thanks to a tropical climate and 3,000-kilometre-long beautiful coastline. Among them, Danang is the red-hot property market because of its proximity to famous World Heritage sites such as Hoi An, Hue, and My Son. Instead of investing in big cities like Hanoi and Ho Chi Minh City, affluent investors have begun to pour money into second-home serviced apartments in cities such as Da Nang where the markets are more young and fresh.

ParkCity Hanoi’s residential condominium for sale in November

Bizhub The Vietnam International Development JSC (VIDC), a member of ParkCity Group, will open the sale of Park Kiara – the first full residential condominium in ParkCity Hanoi township – late next month. Park Kiara comprises 31-storey two towers with 432 units each, offering one to four bedrooms apartments which have been planned and designed based on experience in developing internationally-recognised high-rise condominiums in Malaysian townships.

The 57-storey Wyndham Soleil Danang, including the new Nimbus tower, is situated next to My Khe Beach

Visitors look at models of Park Kiara - the first full residential condominium in ParkCity Hanoi township

RoK retains position as Vietnam’s leading source of FDI

The Voice of Vietnam Among the 74 countries and territories investing in Vietnam, the Republic of Korea is the biggest foreign investor with a total investment of US$2,752.9 million during the first ten months of the year, accounting for 21.5 per cent of all newly-registered capital, according to the General Statistics Office. Following the RoK, China is the second largest foreign investor in Vietnam with US$2,115.6 million, trailed by Singapore (US$1,839.8 million), the Hong Kong Special Administrative Region of China (US$1,639.1 million), and Japan (US$1,630.8 million).

Private sector the main driving force for economic growth

Viet Nam News The private sector was the main driver of growth for Vietnam in the first nine months this year, a conference held by the Central Institute for Economic Management (CIEM) heard on Wednesday in Hanoi. CIEM also shared a report it jointly conducted with an Australian programme to support Vietnam’s economic reform (Aus4.Reform Program) at the conference, that stated economic growth in Q3 and the first nine months maintained at a relatively high level.

New Phu My Hung project likely to spur HCM City housing market

Bizhub Phu My Hung Development Corporation said 80% condos at its newly-launched The Ascentia have been sold, taking the number it has sold this year to nearly 1,200. Since the launch of the new project in September, over 800 customers had registered to buy, three times the number of units available. The Ascentia is located on Nguyen Luong Bang, one of the arterial roads in the Phu My Hung City Centre connecting almost areas including the Southside District, The Crescent area, and International Commercial & Financial District. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 04 November 2019

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

AEON MALL Ha Dong to be launched in late November

Vietnam Investment Review With the message of “Knitting Ha Dong’s future”, while keeping with the priority of green living standards, AEON MALL Ha Dong will be a massively popular destination for shopping, entertainment, and relaxation, once it comes into operation in late November. Being operated and managed by AEON MALL Vietnam, this will be the second AEON MALL in Hanoi and the fifth one in Vietnam.

AEON MALL Ha Dong to be launched in late November

‘Dragon fruit’ train to color second Hanoi metro line

VnExpress Hanoi Metropolitan Railway Management Board (MRB) revealed the first train to run on the Nhon-Hanoi Railway Station metro line on Tuesday. The train is painted in light green, red and white, mimicking the colors of the dragon fruit, a highly symbolical produce of Vietnam, said French rail The first train for the Nhon-Hanoi contractor Alstom. “The train car’s front design is one of the most modern Railway Metro Station metro line is we’ve ever created,” said a project director of Alstom at a memorandum revealed at a factory of Alstom in Valenciennes, France, October 29, signing ceremony between the firm and Hanoi People’s Committee. 2019

Schindler Vietnam opens new high-tech factory in HCMC

Vietnam Economic Times New $8-million factory to produce elevator components, escalators, and elevator conveyors, and will help triple production capacity over the next five years. The Schindler Vietnam Co. officially opened a new high-tech factory on October 29 at the Hiep Phuoc Industrial Zone in Ho Chi Minh City’s Nha Be district. The factory will contribute to bringing the vision and goals of the world’s leading elevator manufacturer’s operations in Vietnam into reality and help to lift the quality of elevator spare parts and components, with the factory set to become Schindler’s manufacturing hub in Southeast Asia in the future.

Digital financial services revenue in Southeast Asia set to jump to US$38-60 billion in 2025 from US$11 billion in 2018

Vietnam Insider Among the findings of a recent report, Fulfilling its Promise – The Future of Southeast Asia’s Digital Financial Services Industry, from Bain & Company, Google and Temasek, it shows that Southeast Asia represents one of the world’s largest and fastest-growing regions; however, around 75 percent of consumers in the region are currently underbanked or unbanked, with limited access to financial services. Digital financial services offer accessibility to this potential consumer base, given the region’s high smartphone penetration and engagement, facilitating greater customer adoption of embedded financial services.

Singapore firm to invest $60 mln in Vietnam appliance maker

VnExpress Investment firm Platinum Victory will spend $60 million increasing its stake in Vietnam’s industrial appliance maker REE by 10.11 percent. The Singapore-based company currently holds a 24.9 percent stake in the Refrigeration Electrical Engineering Corporation (REE) and wants to increase the ownership to 35.01 percent, REE said in a recent statement. Platinum Victory has proposed to pay VND45,000 ($1.95) for each of the 31.3 million shares, which is 18 percent higher than the listed price as of Wednesday morning on the Ho Chi Minh City Stock Exchange. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 05 November 2019

Vingroup earns Jan-Sept revenues of $4 bln

VnExpress Vietnam’s largest private conglomerate, Vingroup, saw its January-September revenue rise 10 percent year-on-year to VND92.74 trillion ($4 billion). The conglomerate’s pre-tax profit for the period was VND9.38 trillion ($405 million), up 12 percent year-on-year, its Q3 financial report says.

With increased land tax, high-income earners seek for townhouses and terraced houses

Vinhome Golden River Aparment complex in District 1, Ho Chi Minh City

Cafebiz According to property expert Pham Thanh Hung, land-attached property projects are being preferred by home-buyers in recent years for having precious lands, and added values from the residential community. Added values from the community can help increase land prices, provided that investors know how to develop projects into a lively living area. This is the With increased land tax, high-income earners seek for townhouses reason why many projects have become destinations and safe choices for and terraced houses home-buyers who desire high-quality living space.

An Giang offers abundance of opportunities for industrial zone investment Vietnam Investment Review

The Mekong Delta province of An Giang continues to stay high on investors’ radars by virtue of its immense advantages for industrial production and the management’s commitment to maximising support for businesses and investors. According to An Giang Economic Zone Management Authority, since a provincial major investment promotion conference held in December 2018, the authority has worked with 30 domestic and international investors who have come to the province in search of opportunities surrounding industrial zones (IZs) and border economic zones (EZ) in the area. Thai Binh economic zone master plan ratified VGP News The Prime Minister has approved the Thai Binh economic zone master plan in the northern province of Thai Binh till 2040, with visions toward 2050. The plan aims to maximize the natural conditions and location in connecting economic, trade and service with neighboring areas, develop economics in line with ensuring national defense, security and preserving and upholding the value of marine ecosystems, historical and cultural relics in the region.

Halong Marina – luxurious life in the heart of heritage

Viet Nam News Halong Marina is designed in sync with the high-class utility system equivalent to famous urban areas in Singapore and Malaysia, promising to become a “must-visit” place when visiting the northern part of Vietnam. In recent decades, the model of an all-in-one resort has developed like a luxurious shirt draped over global real estate. With an investment fund of up to US$2 billion, Halong Marina has been developed by BIM Land to become a comprehensive resort. The “all in one” metropolis owns a rare beautiful landscape in front of Ha Long Bay with its back to Hung Thang Mountain.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 06 November 2019

Buying first home remains a pipe dream for young Vietnamese

VnExpress Surging prices and a decline in the supply of affordable apartments are making it almost impossible for young Vietnamese to buy their first home. Pham Hoai Nam used to think that being a grown-up means having a Apartment buildings seen in Hoang Mai District, Hanoi stable job, a good salary, and his own house. Now, at age 28, he is able to check off all of those items except the last one.

FLC Group to surpass Vingroup with a super project in Hai Phong

CafeF At the meeting with FLC Group, Hai Phong’s leader board exchanged and gave opinions about approving the investment of FLC Group in building a complex of hotel, commercial center and office in the center of the city. With a height of 290m, 6-star quality standards, the 72-story complex of hotel, commercial center and office invested by FLC Group is expected to be a symbolic project in Hai Phong City.

Expected architectural plan of the project

PM Phuc wishes for early approval of trade deals with EU The Voice of Vietnam

Prime Minister Nguyen Xuan Phuc has expressed his wish that the Vietnamese National Assembly and the European Parliament (EP) will adopt the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) at the earliest possible time. Prime Minister Nguyen Xuan Phuc hosted a reception in Hanoi on October 31 for Chairman of the European Parliament’s Committee on International Trade (INTA) Bernd Lange, during which the Vietnamese Government leader thanked the INTA Chairman for his great efforts to accelerate the European Union’s signing of the two trade pacts. Legal hassles deflate HCMC housing market VnExpress Only 12 housing projects received approval in HCMC in the first nine months of this year, a 72 percent year-on-year decline. A recent report by the Ho Chi Minh City Real Estate Association (HoREA) said after reaching a five-year high of 83 projects in 2017, the number had dwindled to 59 last year. The declining supply was due to conflicting provisions in the various laws regulating the sector, the report said. The number of completed housing units in the first nine months of this year fell by 53% year-on-year to 12,453.

Vietnam lures in $29.11 billion of foreign investment in 10 months

Vietnam Investment Review In the first 10 months of 2019, Vietnam lured in $29.11 billion of foreign investment capital in new and expanded projects, as well as capital contributions and share purchases, signifying an increase of 4.3 percent on-year. According to the statistics published by the General Statistics Office under the Ministry of Planning and Investment, foreign investors poured $12.83 billion into 3,094 newly-registered projects, equaling 85.4 percent of last year’s figure, mainly because there were no new billion-dollar projects in the period. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 07 November 2019

Ba Ria - Vung Tau real estate affirms position after bad season

Kinh Te Do Thi When Ba Ria – Vung Tau real estate market grew too fast with too many subdivided land lots and unprofessional investors, it used to be the largest nightmare for investment. However, thanks to synchronous traffic Ba Ria - Vung Tau real estate afinfrastructure, Ba Ria – Vung Tau real estate market is still highly sought firms position after bad season by investors. When bad season has passed, Ba Ria – Vung Tau gradually reaffirms its position as the most potential real estate market in Southeast Asia.

Vietnam attracts US$ 29 billion FDI capital in first 10 months of 2019

Vietnam Insider According to the report about Foreign Direct Investment (FDI) attraction from the Ministry of Planning and Investment, the total newly registered Vietnam attracts US$ 29 billion FDI capital, adjusted capital and capital contributed by foreign investors was capital in first 10 months of 2019 US$ 29.11 billion in the first ten months of the year, an increase of 4.3 percent over the same period last year.

Vietnam stocks hit one-year high after two buyback announcements

Bloomberg Vietnam’s equity index reached its highest level in more than a year after two units of its biggest component said they’d buy back shares. The VN Index climbed the most among major Asian gauges, rising 1.7% to 1,015.59. Vinhomes SJC surged by the daily limit of 7% and Vincom Retail JSC advanced 5.6% after they said they’d buy back as much as 60 million shares and 56.5 million shares, respectively. Vingroup JSC, a real estate company that accounts for almost 12% of the nation’s benchmark, rose 2.9%, the most since Aug. 22. Maybank Kim Eng Securities Ltd.

Over 12,000 businesses set up in October

The Voice of Vietnam Vietnam saw 12,182 businesses established in October, up 3 percent from the previous month, according to the General Statistics Office (GSO). The office said the new enterprises had total registered capital of 143.6 trillion VND (6.19 billion USD), an increase of 2.5 percent over September. They employed 94,700 workers. The average registered capital of a new enterprise in the month reached 11.8 billion VND (509,188 USD), rising 0.5 percent over the same period last year.

Japanese swell of investment

Vietnam Investment Review New investments worth billions of US dollars from Japan are expected to be poured into Vietnam in the time to come, creating a new Japanese investment surge in the Southeast Asian nation. Last week, within the framework of his visit to Japan to attend the coronation ceremony of Japanese Emperor Naruhito in Tokyo, Prime Minister Nguyen Xuan Phuc met with Masayoshi Son, chairman and CEO of SoftBank, Japan’s largest financial services group. Son said SoftBank wants to expand investment in Vietnam, where it sees an increasingly improved business environment and rapid economic growth. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 08 November 2019

WeWork to add two new locations in Vietnam this year

Deal Street Asia After announcing plans to expand its presence in Singapore, co-working space provider WeWork is now set to open two new locations in Vietnam before the end of the year. The two new WeWork locations will be in Ho Chi Minh City, a company spokesperson said. The company launched its first location in Vietnam in March this year at E. Town Central in Ho Chi Minh City’s District 4.

Construction giants report bad business results

Vietnam Investment Review Construction giants like Coteccons, Hoa Binh, and Hung Thinh Incons all reported negative profit despite heavy-handed cost-cutting measures. The accumulated revenue of the three quarters of Coteccons Construction JSC (code: CTD) reduced 21% on-year to VND16.26 trillion ($700 million), despite the company’s efforts to cut expenses on outsourcing, labour, depreciation, after-tax profit remained low at VND480 billion ($20.87 million)

WeWork to add two new locations in Vietnam this year

Construction giants report bad business results

Late 2019: which resort property markets are heating up?

Afamily With its potential and advantageous geographical location, Binh Thuan Province has confirmed that tourism is the province’s flagship economic sector, and strives to become a top tourism destination in Asia – Pacific region. In two recent years, Binh Thuan province records 264 additional projects approved for investment, with total capital of more than VND53,000 billion, and 1,730 newly-registered companies with total capital of VND32,866 billion.

First investor at Vietnamese-built industrial park in Cuba

Bizhub The Portuguese group Enpromoulds is the first business to set up its plant at the ViMariel Industrial Park, which is located in Cuba’s Mariel Special Development Zone. Enpromoulds’ member unit Ecoplast has gained a permit to operate in the industrial park for 25 years, producing paper, plastic and rubber moulds. The industrial park is now under construction. It was inaugurated in November 2018 by the Vietnamese multi-sector group Viglacera. The construction is expected to complete in five years from the inauguration day and companies present at the park may operate for 50 years.

Novaland maintains its stable growth and significant increase in Q3 revenue

Vietnam Insider The company maintained its stable growth and recorded a significant increase in consolidated net revenue from the sales of goods and rendering of services, by 42 per cent to $412.3 million in the first nine months year-on-year. The total handed-over units in the period improved significantly, by 70 per cent to 3,269 units compared to 1,923 units in the same period last year. Strong contributors were major projects such as The Sun Avenue, Sunrise Riverside, Richstar, Saigon Royal, Orchard Parkview, Newton Residence, and Victoria Village.

colliers.com/vietnam

Daily Real Estate News Highlights

Vietnam - 11 November 2019

HSBC Navigator finds positivity endures in Vietnam

Vietnam Economic Times HSBC polled 9,131 businesses in 35 markets and found that nearly all Vietnamese businesses (97 per cent) believe their sales will grow over the next year - significantly higher than the global and Asia-Pacific averages (79 per cent and 77 per cent, respectively) - according to the latest HSBC Navigator: Now, Next and How report.

HSBC Navigator finds positivity endures in Vietnam

UNDP to help Da Nang become a smart city by 2045

VnExpress The United Nations Development Program will help implement several projects to develop Da Nang into a green and smart city by 2045, according to an MoU signed Monday. In one project, the U.N. agency will work closely with the city government to design the first waste sorting experiment in Cam Le District. This is expected to generate useful lessons in applying sorting of waste to all of Da Nang.

The Dragon Bridge, an iconic symbol of Da Nang City in central Vietnam

More foreign companies expand investment in Viet Nam

Bizhub Many foreign businesses have recently visited Viet Nam with the desire to invest or expand their investments in the country, according to the Ministry of Industry and Trade. Samsung Viet Nam has just asked ministries and the authority of Bac Ninh Province to create favourable conditions for the operation of the complex, especially the Samsung Display Viet Nam, so that the company could expand investment and contribute more to Viet Nam’s economic growth. Currently, Samsung is the largest foreign investor in Viet Nam with a total registered capital of over US$17 billion. Partners of VinaCapital, which currently manages over $3.3 billion of total assets, also expressed its desire to co-operate and invest in Viet Nam in many fields, including liquefied natural gas, technology, tourism, consumption and real estate.

Thailand hands over ASEAN chair to Vietnam

The Straits Times Vietnam’s Prime Minister Nguyen Xuan Phuc (right) holding the symbolic chairman’s gavel after receiving it from Thailand’s Prime Minister Prayut Chan-o-cha during the closing ceremony of the 35th ASEAN Summit and related summits. The 10 ASEAN members traditionally take turns chairing the regional grouping in alphabetical order, and Vietnam will formally take over as chairman of ASEAN from Jan 1, 2020. Next year also marks the 25th anniversary of Vietnam’s accession to ASEAN.

HCMC real estate cools down, Long An expects to see breakthrough

VTC News When HCMC real estate market is stagnant due to stricter control on land funds, Long An province expects to see breakthrough toward year-end. Being located in a major economic zone of Southern region, connecting to HCMC’s major gateways, and having rapid economic growth, Long An is considered as a golden triangle area for investment, and a bridge between HCMC and Mekong Delta. According to Le Hoang Chau, Chairman of HCMC Real Estate Association, Long An real estate market is seeing many opportunities thanks to strong investment inflow in the province’s industrial parks.

colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 12 November 2019

Quang Ninh invests in seven major transport projects

The Voice of Vietnam The northeastern province of Quang Ninh has decided to invest in seven major transport projects to promote its socio-economic development in the period of 2020-2022. The total investment capital for these projects is expected to be more than 10.5 trillion (452 million USD). Most transport Quang Ninh invests in seven major projects are aimed at connecting traffic, promoting the capacity and transport projects efficiency of the newly completed Ha Long-Hai Phong and Ha Long-Van Don expressways.

Limited supply causing price hikes around Ho Chi Minh City

Vietnam Investment Review Suspended ventures due to lack of administrative procedures are instigating a severe shortage of supply and sharp increase of prices of the property market in Ho Chi Minh City, as well as in outskirt areas. Ho Limited supply causing price hikes around Ho Chi Minh City Chi Minh City is currently far from a dream destination for many young couples as accommodation continues to increase in cost.

Why do many property giants raise land funds in Binh Phuoc? Bao Dien Tu Tri Thuc Tre Binh Phuoc province possesses a large land fund, which is suitable to develop quality property projects. This is the reason why many property giants have flocked to Binh Phuoc to develop projects such as Vingroup, FLC Group, Dat Xanh Central… These investors not only prepare for a market wave, but also contribute to change appearance of the province’s real estate market. In details, the presence of property giants and their large-scale projects drive the market to develop infrastructure, economy and society. Vietnam - France Business Conference held in Paris Vietnam Economic Times November 4 conference aimed to connect State agencies and Vietnamese and French enterprises. France and Vietnam both spoke highly of the latter’s socioeconomic achievements, particularly breakthroughs in institution- and policy-related openness as well as bilateral trade growth and cooperation and investment relations, at the Vietnam - France Business Conference jointly organized by the Movement of the Enterprises of France (MEDEF) and the France - Vietnam Council of CEOs MEDEF International on November 4 in Paris.

Fitch Ratings keep Vietnam’s sovereign rating at ‘BB’ with a positive outlook

Vietnam Insider Fitch Ratings affirms Vietnam’s sovereign rating at ‘BB’ with positive outlook saying the delayed payment on a Vietnamese government-guaranteed loan in September was paid in full within the month and Fitch understands the administrative problems that gave rise to this delay are being addressed. “Therefore, the delayed payment does not have an immediate impact on the rating,” the rating agency noted in a report released on Thursday. Fitch’s latest rating has helped soothe concerns caused by last month’s statement made by Moody’s Investors Service.

colliers.com/vietnam

INDUSTRIAL & RESIDENCE DEVELOPMENT LAND Phuoc Binh Commune, Long Thanh District, Dong Nai Province

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1 hr 33 mins driving

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INDUSTRIAL SECTION

1,990,310.5 SQ. M

100%

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Land for Factories

1,373,314.2 sq. m

69%

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Land for Services, Management and Support

99,515.5 sq. m

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Land for Technical Purpose

39,806.2 sq. m

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Land for Transportation

199,031.1 sq. m

10%

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Land for Landscaping (Green area, water-surface, etc.)

278,643.5 sq. m

14%

RESIDENTIAL SECTION

2,364,577.5 SQ. M

100%

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Land for Residential

1,371,455.0 sq. m

58%

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Land for Mixed-use

189,166.2 sq. m

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Land for Transportation

425,624.0 sq. m

18%

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Land for Landscaping (Green area, park, water-surface, etc.)

378,332.4 sq. m

16%

TOTAL

4,354,888 SQ. M

100%

Daily Real Estate News Highlights Vietnam - 13 Nobember 2019

Vietnam begins work on $142 mln irrigation system

VnExpress Construction has begun on a VND3.3 trillion ($142.17 million) irrigation system, integrated into climate crisis management, in Kien Giang Province. The Ministry of Agriculture and Rural Development said on Saturday that the Cai Lon - Cai Be system would irrigate 384,000 hectares of land, An artist impression of the Cai Lon mostly for agriculture and aquaculture, in Kien Giang, Hau Giang, Ca Mau - Cai Be irrigation system over the Cai Lon River in Kien Giang and Bac Lieu provinces in the Mekong Delta.

Keppel breaks ground on Saigon Sports City

Vietnam Investment Review Deepening its presence in Vietnam, Keppel Group held the ground-breaking ceremony this morning for Saigon Sports City in the prime District 2 of Ho Chi Minh City. Speaking at the ground-breaking event, Loh Chin Hua, CEO of Keppel Corporation, said, “The breaking ground on Saigon Saigon Sports City will become the Sports City today marks a new phase in Keppel’s engagement with Ho Chi latest smart city development to Minh City, as we support the local government’s push for new, smart, and shape the urban landscape of Ho Chi Minh City sustainable urban precincts.”

Vietnam – Malaysia trade boost to US$15 billion by next year

Vietnam Insider Last year, Vietnam’s total export of various goods to Malaysia was US$3.81 billion, while its import from Malaysia was US$1.75 billion. “Vietnam is the second biggest trade partner for Malaysia in ASEAN, while Malaysia is its fourth largest trade partner in the region, with 586 products traded between the two countries. “For last year, Malaysia was the eighth biggest investor in Vietnam accounting for US$12.5 billion,” she said. Dinh added that Prime Minister Tun Dr Mahathir Mohamad was keen to increase bilateral trade, with 12 per cent of it involving vegetables, flowers and fruits.

VN-Index to move flat, large-cap stocks to weaken amid lack of information

Viet Nam News Vietnam’s benchmark VN-Index last week ended at its 13-month high but its struggle on the last two days signaled growth had stalled and it would move sideways in the coming week. The benchmark VN-Index on the Ho Chi Minh Stock Exchange finished at 1,022.49 points on Friday, totaling a weekly gain of 0.68 per cent last week. The VN-Index advanced on the back of large-cap stocks as they boosted the VN-Index above 1,008 points, which was previously reached in October 2018. Analysts believed the market ran out of growth momentum as the effect of the corporate earnings season had been reflected in the growth of blue chips earlier.

Phu My Hung completes Happy Valley Premier construction, begins selling

Bizhub Phu My Hung Development Corporation has taken 300 people who registered on a visit to Happy Valley Premier, the only project in the Phu My Hung City Centre, District 7 where every unit is a duplex apartment. It explained that Happy Valley Premier was introduced to the market over two years ago, but, unlike other housing projects, would be sold only after construction is finished. It is the last project the company will develop in the entertainment district that is in Phu My Hung City Centre. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 14 November 2019

Saigon land prices rise 3 times every decade

The Voice of Vietnam Saigon land prices have increased 2.5-3 times every decade in the last 20 years, putting house ownership beyond most residents. In each decade, prices typically rise strongly in the first 2-4 years and then decline in the next 3-5 years, said Tran Khanh Quang, CEO of HCMC-based real estate firm Viet An Hoa.

Construction of buildings

Vietnam aims for 6.8% GDP growth in 2020

Tuoi Tre News Vietnam’s legislature on Monday passed a resolution on plans for socio-economic development in 2020, including a target of 6.8 percent in GDP growth. Over 88 percent of the 426 deputies of the National Assembly voted in favor of the resolution for 2020 to achieve a 6.8 percent GDP expansion rate, below-four-percent inflation, a seven percent rise in export turnover, and social development investments accounting for 33-34 percent of the gross domestic product, among others.

The skyline of Ho Chi Minh City

Hana Bank completes $875m acquisition of 15% stake in Vietnam’s BIDV

VnExpress Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has completed the sale of a 15 percent strategic stake to South Korea’s KEB Hana Bank for 20.3 trillion dong ($875 million). KEB Hana Bank became a major shareholder of BIDV on November 6, according to a regulatory filing by the Vietnamese lender. Foreign banks are allowed to own as much as 30 percent in a local bank. As part of the sale, BIDV issued over 603.3 million new shares by raising its charter capital to 40.2 trillion. The transaction also marks the biggest M&A deal within the local banking industry.

Real estate in central Ho Chi Minh City: Optimism in the long term

Baomoi In the first 9 months of 2019, the real estate market in Ho Chi Minh City continues the downward trend. the supply in real estate market in central Ho Chi Minh City is said to be extremely scarce because the demand for housing ownership is quite high. HCMC restricts licensing of new housing projects in the central district to avoid population pressures related to transportation as well as utilities. Because of the scarcity, projects in the central districts are often luxury apartments and commercial offices to make the most of the value of land. Talking about the upcoming price of real estate in central HCMC, experts believe that there will continue to be higher prices in the coming years because the market is still in shortage of supply, while the demand for housing here is always high.

Vietnam, S. Korea target US$100 billion trade by 2020

The Saigon Times Vietnam and South Korea considered ways to bolster trade and investment ties to bring their bilateral trade to US$100 billion next year at the Vietnam-South Korea Business Summit at the Chu Lai Open Economic Zone in the central province of Quang Nam last Friday. The summit, which gathered more than 250 major Korean firms and their Vietnamese peers, created an opportunity for the two governments and their business communities to exchange viewpoints and explore prospects and cooperation opportunities, with a view to fostering their strategic partnership. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 15 November 2019

Foreigners using proxies to own real estate in national security areas

VnExpress Hundreds of Vietnamese firms are serving as proxies for foreigners to buy real estate units in areas vital to national security, says Deputy PM Pham Binh Minh. Replying to a lawmaker’s question in the National Assembly, Buildings seen by the Han River in Da Nang City he said many of the properties bought by proxies are in areas vital to national security such as Da Nang City, Central Highland province Lam Dong and the northern port city of Hai Phong.

PPP regulations to be changed to serve development

The Voice of Vietnam More than 76 percent of current investment projects following public-private partnerships (PPP) are in the field of transport infrastructure, but investors Part of Ring Road 2 in Hanoi, built still feel insecure. Of the 289 PPP investment projects, there are 220 under a public private partnership involved in transport infrastructure, said Deputy Minister of Transport Nguyen Nhat attending a conference themed “Solutions to promote investment in the development of transport system structure under PPP” in the capital last week.

Hospitality to continue attracting investors over next decade

Vietnam Economic Times A report shows that growth in Vietnam’s hospitality sector declined this year, increasing only 10.8 percent compared to more than 20 percent in 2018, but the figure is still impressive compared to other countries in the region and Asia. The market has also recorded an explosion in supply since 2015. The five-star hotel segment has seen the largest increase. From 2015 to 2019, the number of five-star hotel rooms more than doubled, from 24,212 to 52,213. The four-star segment also maintained good growth, from 27,379 to 39,023 rooms.

HCM City named among top 3 real estate markets in Asia-Pacific region The Voice Of Vietnam

Ho Chi Minh City has been named in the third position among locations that feature the best real estate investment environment in the Asia-Pacific region, just behind Singapore and Japan’s Tokyo, according to a social survey report released on November 12. The joint survey was conducted by the Urban Land Institute and the audit firm Pricewaterhouse Coopers, with the report outlining the latest trends of the Asia-Pacific region’s real estate market moving into 2020. Intercontinental Hotels Group adds two properties in Vietnam Vietnam Insider Further boosting its presence in Vietnam, Intercontinental Hotels Group (IHG) has announced the signing of an agreement with Ho Tram Project Company (HTP) to rebrand the latter’s integrated resort – The Grand Ho Tram hotel to Intercontinental Grand Ho Tram. Along with this, IHG is to also open Holiday Inn Resort Ho Tram Beach that is slated to be operational in 2020. Located at the Ho Tram Strip, the rebranded property, which is getting refurbished after a year, will feature 533 guest-rooms, three dining outlets and a well-equipped convention centre that can accommodate up to 1,300 guests. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 18 November 2019

BRG Group’s Sheraton Grand Danang – top destination for the super-rich

Vietnam Investment Review After Phu Quoc Island, the beautiful coastal city of Danang and Sheraton Grand Danang have been chosen by a super-rich Indian couple to host a magnificent wedding. This occasion will be held at the Sheraton Grand Danang Resort, a luxury resort developed by real estate pioneers BRG Group.

Overview of Sheraton Grand Danang Resort

Binh Duong to discuss the land price in the next 5 years

Reatimes Recently, Binh Duong People’s Committee held a consultation with the draft resolution on promulgating the price list of land types in the province in the period of 2020-2024. According to forecasts, in the next 5-year period, the price of land in the northern area of the province, especially agricultural land planned for non-agricultural purposes, will continue to increase due to the demand for housing for people working at industrial zones and clusters.

Binh Duong to discuss the land price in the next 5 years

Vietnamese firms invest over US$430 million abroad in nine months

The Voice of Vietnam Domestic businesses have invested approximately US$431.7 million abroad during the first nine months of the year, according to the Foreign Investment Agency under the Ministry of Planning and Investment. Luring the largest proportion of investment from local enterprises has been the wholesale and retail sector which has enjoyed investment of US$110.6 million, accounting for 25.6 per cent of the total figure. Following this, the science and technology sector ranked second with US$83.4 million. Among the 30 countries and territories globally that Vietnamese financiers were active in during the reviewed period, Australia proved to be the largest recipient with US$140.6 million, accounting for 32.6 per cent of the total figure.

Firms issue 7.71 billion USD worth of bonds in 10 months

Vietnam Plus The total value of corporate bonds was 178.7 trillion VND (7.71 billion USD) in January-October this year, according to SSI Retail Research. Commercial banks remained the biggest bond issuers with 79.4 trillion VND worth of bond issuance, accounting for 44.4 percent of the total figure. Real estate companies issued 61.27 trillion VND worth of corporate bonds, accounting for 34.3 percent of the total. The remainders were infrastructure developers, securities firms and other types of business.

Intercontinental Hotels Group adds two properties in Vietnam

Vietnam Insider Intercontinental Hotels Group (IHG) has announced the signing of an agreement with Ho Tram Project Company (HTP) to rebrand the latter’s integrated resort – The Grand Ho Tram hotel to Intercontinental Grand Ho Tram. Along with this, IHG is to also open Holiday Inn Resort Ho Tram Beach that is slated to be operational in 2020. Located at the Ho Tram Strip, the rebranded property, which is getting refurbished after a year, will feature 533 guest-rooms, three dining outlets and a well-equipped convention centre that can accommodate up to 1,300 guests. Other leisure facilities include a fitness centre, a spa, a golf course. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 20 November 2019

Infrastructure, major projects set off Dong Nai property market boom

Bizhub After the southern and the eastern parts of HCM City, the real-estate caravan has moved on to the city’s neighbouring areas like Dong Nai, experts said. Since the middle of October, while the HCM City market has Land prices in Dong Nai Province been stagnant, those in neighbouring areas like Bien Hoa city and Long are attractive to investors, and are Thanh District in Dong Nai Province have been hyperactive. expected to increase in the coming

BCG sets great store by real estate negotiations

Vietnam Investment Review The profit of Bamboo Capital Group (BCG) is expected to grow tremendously during 2019-2023 thanks to a series of real estate as well as renewable energy projects, especially Radisson Blu Hoi An and King Crown Village Thao Dien. BCG leaders shared with investors at a meeting this month that real estate and renewable energy will be the two main activities of the group.

Supply of offices in HCMC’s non-central areas will increase Doanh Nhan Sai Gon

time

BCG negotiates part of its real estate projects

In 2021, office for lease in HCMC will have another 369,000 sq.m of office floor, in which non-central areas will occupy 55pct of total supply, which is about 203,800 sq.m. Gradually, CBD office supply will become scarce due to a lack of construction land, so offices outside of central area are attracting investment of office developers. Limited supply in CBDs has caused prices to spike, while infrastructure is becoming more developed, connecting CBDs and non-CBDs, in which the latter has more affordable prices. In addition, suburban areas of HCMC record many apartment, villa, trade center, restaurant projects, which mean these areas have become destinations of both domestic and foreign investors.

Human resources quality remains big challenge for Vietnam

VnExpress Vietnam is 11th out of 12 Asian countries in a World Bank ranking of quality of human resources with 3.79 points out of 10. A survey by the World Bank and the Central Institute for Economic Management (CIEM) of 350 businesses in production and services in Hanoi, HCMC and neighboring provinces, which showed that 66 percent of businesses employed foreign laborers and 36 percent of domestic businesses were dissatisfied with the quality of education and training of Vietnamese human resources. Only 12 percent of Vietnam’s 57.5 million-strong workforce are highly skilled, according to recruitment firm ManpowerGroup.

VN, Myanmar agree to work closely in 2020

Vietnam Investment Review Viet Nam and Myanmar have agreed to work closely in 2020 as the former will assume the ASEAN Chairmanship and a non-permanent member of the United Nations Security Council. Deputy PM, FM Pham Binh Minh hosted a reception for Permanent Secretary of Myanmar Ministry of Foreign Affairs Soe Han who was on a working visit to Viet Nam on November 14 in Ha Noi. Mr. Minh highly praised the two sides for maintaining cooperative mechanisms including the Viet Nam-Myanmar Joint Committee for Bilateral Cooperation, exchanges of high-ranking delegations and regular contacts at multilateral forums. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 21 November 2019

Real estate in Ho Chi Minh City CBD: Optimism for the long-term

Vietnam Investment Review Despite a small supply of new projects at rather high prices, both investors and experts are optimistic about the prospects of this market – with good reason. The improving infrastructure, the rise of the Vietnamese middle Being rolled out since the end of class, and the arrival of rich foreign people are expected to give the market 2018, The Grand Manhattan is one of few projects in District 1 achieva new push in the near future.

Vietnam sees US$9 billion trade surplus in Jan-Oct

ing impressive sale performance

The Saigon Times Vietnam earned a trade surplus of US$9.01 billion in the January-October period this year, the highest ever, up 23% year-on-year due to the strong export of phones, computers and textiles, according to data from the General Department of Customs. Foreign direct investment (FDI) enterprises generated US$16.4 billion from exports in October, edging up A corner of Saigon Premiere Container Terminal in HCMC. Vietnam by 1.4% against the previous month, and spent US$12.5 billion on imports. earned a trade surplus of US$9.01

Why international investors continue to flock to Vietnam

billion in the January-October period this year

The Voice of Vietnam After more than 30 years of adopting an open investment policy, Vietnam has become one of the most successful countries in the region in garnering overseas funding. Vietnam’s key performance indicators tell a compelling investment story. Against a backdrop of social stability and government that is highly supportive of business, Vietnam is set to continue its multi-year run of 6-7 per cent annual GDP growth. And where South Korea and other Asian peers might be wincing from drops as large as 10 per cent, Vietnam has enjoyed an 8 per cent on-year increase in export growth.

Real estate giant Lideco to be fined for billions of VND in taxes

Vietnam Investment Review Due to tax violations, real estate giant Lideco has been fined for VND2.3 billion ($100,000). Hanoi’s Department of Taxation has just issued the decision to fine Tu Liem Urban Development JSC (Lideco, code: NTL), headquartered in Cau Giay district. Accordingly, Lideco had missed the issuance of several declarations related to land use rights and value-added tax, as well as declared incorrect financial fees and costs.

PGBank, HDBank merger could finish in June 2020

Viet Nam News The merger between PGBank and HDBank could complete in June 2020, according to petrol dealer Petrolimex deputy general director Luu Van Tuyen. Petrolimex had developed the plan to exit its financial arm PGBank or Petrolimex Group Commercial Joint Stock Bank in 2015, Tuyen told reporters and analysts last week. In 2015, Petrolimex and the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) signed an agreement that allowed the latter to acquire PGBank through a share-swap deal. The deal collapsed on April 21, 2018. The same day, HCM City Development Joint Stock Commercial Bank (HDBank) approved the merger with PGBank and the State Bank of Vietnam (SBV) then agreed with the basic principles of the deal.

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Daily Real Estate News Highlights Vietnam - 22 November 2019

Novaland Expo: Raising the bar with leading brands

Vietnam Investment Review The upcoming Novaland Expo, slated to take place on December 4-8, is expected to render a comprehensive picture about the market in diverse fields, as well as provide numerous opportunities for real estate investment. The Novaland Expo will bring to exposure a portfolio of Novaland projects GreenDP is specialised in providing and an ecosystem of compelling services provided by Novaland’s 40-plus hi-speed boats for passenger transstrategic partners engaging in more than 20 fields and sectors. port to major southern destinations

Property firms outpace banks in bond issuance

Vietnamnet Real estate enterprises outpaced banks to issue the largest volume of corporate bonds last month, according to a newly released report by SSI Securities Corporation. Specifically, property firms issued more than VND9.3 trillion (US$400.9 million) worth of bonds in October, accounting Two apartment buildings in HCMC. for nearly 55% of the total. Real estate enterprises outpace

Vietnam among top in salary growth

banks in issuing the largest volume of corporate bonds in October

Vietnam Insider Vietnam leads the Southeast Asia region with a 4.0 per cent increase in 2019 and 5.1 per cent expected in 2020. The emerging economies of Vietnam and Thailand both saw significant real salary increases, placing them in the global top five, according to Mr. Lee Quane, Regional Director – Asia at ECA International. Workers in these two countries will both see further increases to their salaries as nominal salaries expected to be given by employers stay well ahead of the low levels of inflation these countries will see in 2020. This has been a long-term trend in both, as productivity continues to grow and inflation is controlled.

Draft Law on Investment adds incentive sectors

Vietnam Investment Review Along with amending and removing regulations, numerous sectors were added to receive incentives under the latest draft Law on Investment in order to ensure that the new capital inflows match the new-generation FDI strategy. At the 14th National Assembly’s eighth session, the drafting board presented the changes in the draft Law on Investment. Accordingly, the main targets of the draft are to increase the quality and effectiveness of local and foreign investment inflow, complete the legal framework about conditional investment lines as well as create favorable conditions for investors. According to the drafting board, the draft amendment is planned to revise 36 regulations, add four regulations and remove two regulations compared to the Law on Investment passed in 2014.

Vietnam stock market hits 3-month low

VnExpress Vietnam’s benchmark VN-Index closed at 1,002.91 points Monday afternoon, down 7.12 points, or 0.7 percent, its steepest drop since August 26. Overall, on the Ho Chi Minh Stock Exchange (HoSE), 132 stocks gained and 197 stocks lost at the end of Monday’s session. This is the index’s fifth losing session in a row, and eighth losing session since it peaked at 1024.91 points two weeks ago.

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Daily Real Estate News Highlights

Vietnam - 27 November 2019

Industrial property: Hanoi has good rental growth and high occupancy rate

Vietnam Finance According to Colliers International recently released quarterly report, Hanoi in Q3-2019 has surprised Vietnam industrial property market with impressive growth in both rental asking prices and occupancy rate thanks Hanoi will see 30 new industrial to high demand in industrial factors. In Q3, Hanoi People’s Committee parks being approved by the end of approved 11 new industrial park projects and if nothing changes, Hanoi the year will see 30 new industrial parks being approved by the end of the year.

Foreign funds inject about 10 billion dollars into Vietnam’s leading corporations

Vietnam Insider Finnish Pyn Elite Fund has released a report, raising the long-term prospects of Vietnam’s stock market with the prediction that the VN Index will reach 1,800 points from 1,000 points currently. The positive factors Just over the last two years, about of the Vietnam’s economy and the increase in profits of listed companies 10 billion dollars from the region were cited as a reason behind the optimistic forecast. have been poured into Vietnam’s

Fast-growing Binh Duong appeals to local, foreign investors Bizhub

leading corporations

Tran Thanh Liem, chairman of the province’s People’s Committee, said: “Binh Duong Province has all the conditions needed to become one of Asia’s most attractive investment destinations. With its modern infrastructure, it has become one of the leading localities in attracting FDI (foreign direct investment) in Viet Nam.” The province is the most vibrant business region in the country, with a growth rate 1.5 times faster than the country as a whole, according to Liem.

Vietnam has become an attractive destination for U.S investors

Vietnam Insider According to the General Department of Vietnam Customs, in 2018, Vietnam exported goods worth US$47.5 billion to the US, accounting for more than 20 percent of Vietnam’s export value in the same year, and up 14.2 percent from 2017. The country imported goods worth US$12.8 billion from the US, up 36.4 percent from the previous year. In the first seven months of this year, bilateral trade reached US$41.1 billion, 24 percent more than in the same period last year. The US has become a top 10 foreign investor in Vietnam with total registered capital of more than US$9.3 billion.

Future of construction brainstormed by experts

Vietnam Investment Review Opening the Large Infrastructure Project Conference 2019 last week in Ho Chi Minh City, CEO Siam City Cement Group Aidan John Lynam pointed out that mega cities and rapid urbanisation are creating pressures on infrastructure, housing, services, and the environment to meet the living requirements of current and future generations. Highlights of the event this year included sessions on strategy for development and management of smart cities in Vietnam; the future of concrete for sustainable cities; building digital twins as the next step of BIM; offshore wind energy tech solutions and supply chain opportunities; innovation in concrete and 3D printing; and digital solutions for upbeat construction. colliers.com/vietnam

Daily Real Estate News Highlights Vietnam - 28 November 2019

Binh Duong surpassing FDI attraction targets

Vietnam Investment Review Foreign direct investment has contributed significantly to breakthroughs in socio-economic development for the southern province of Binh Duong, as it was revealed that targets for 2020 have already been smashed. In the 2016-2020 period, the province has set a goal of attracting $7 billion Binh Duong surpassing FDI attraction targets in foreign direct investment. However, by this September over $9.7 billion had been attained.

Phu My Hung develops first all-duplex apartment project in HCM City

Bizhub Duplex apartments, which have two floors connected by an internal staircase, are becoming popular in HCM City, especially among people who would like to enjoy a high-quality living environment. Reports from market researchers in HCM City show this is a niche segment not meant Happy Valley Premier is the only project in HCM City where for all customers. There are only more than 600 duplex apartments in the housing all condos are duplex units city, equivalent to 0.4 per cent of total supply.

Inflation controllable despite soaring pork prices: Deputy PM

The Voice of Vietnam Deputy Prime Minister Vuong Dinh Hue stated that this year’s inflation is controllable, at 3.3 – 3.9 percent, while chairing a November 18 meeting on the recent surge in prices of pork, an essential foodstuff. Data of the General Statistics Office (GSO) show that pork prices at present have increased by almost 19 percent from the same period last year.

SBV cuts interest rate for a second time since September

Bizhub The State Bank of Vietnam (SBV) slashed interest rates for the second time since September. Non-term deposit annual interest rate was reduced from 1.0 per cent to 0.8 per cent; under-6-month deposit from 5.5 per cent to 5.0 per cent. In response to SBV’s cut, commercial banks have adjusted their own rates. The cut would also apply to all loans taken out since November 1. For borrowers in priority sectors, Vietcombank’s ceiling interest rate was reduced to 5.0 per cent.

Vietnam bond market grows by 2.6 percent: ADB

VnExpress Vietnam’s bond market grew by 2.6 percent in the second quarter over the previous quarter despite the ongoing trade conflicts, the Asian Development Bank said. The local currency bond market grew to $52.9 billion. The growth came on the back of a 3.2 percent expansion of the government bond market to $48 billion, which also included central bank bills. This offset a 3.4 percent contraction in the corporate bond market to $5 billion. The corporate bond market is now worth VND89.5 trillion ($3.86 billion), exceeding the target set only for 2020, according to the Hanoi Stock Exchange.

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Daily Real Estate News Highlights

Vietnam - 29 November 2019

GDP may increase by an average of 7 per cent in 2021-2025

Vietnam Investment Review Dang Duc Anh, deputy director of the NCIF, said that NCIF formulated two economic growth forecasts for 2021-2025. Accordingly, Vietnam’s GDP growth rate will reach about 7 per cent per year during the period. The economy is expected to stay stable, with inflation at 3.5-4.5 per cent per The conference on Vietnam’s ecoyear. “With this growth forecast, by the end of 2025, Vietnam’s GDP per nomic perspectives for 2021-2025 capita will reach about $4,688, and Vietnam will be one of the high-middle-income countries of the world,” Duc Anh said.

HCM City real estate market faces downtrend

Vietnamnet Ho Chi Minh City Real Estate Association (HOREA) Chairman Le Hoang Chau said that local firms were facing the most difficult market since the recovery in 2014. “In the first quarter of this year, the number of projects approved by the Department of Construction fell by 63 per cent compared to the same period last year,” he said citing a report. “Construction firms also saw a fall of between 30-50 per cent in the number of contracts due to a lack of projects.”

As more international companies place their trust in Vietnam, the country must do more to ensure laws and regulations are watertight and clear.

Crystallizing investment rules for infrastructure developers

Vietnam Investment Review Many governments around the world, including in Vietnam, are facing difficulties in infrastructure development in service of socio-economic development because of limited financial resources. Thus, public-private partnerships (PPP) in general and projects under non-refundable transfer (NRT) in particular are considered optimal solutions to funding in infrastructure. They help ease pressure on state budgets and reduce dependence on official development assistance, while improving investment efficiency. The application of NRT to projects is seen as a sound direction for Vietnam now. However, some related regulations of foreign investor assets in the country remain inconsistent and unclear.

Billions of dollars are being poured into Vietnam’s leading companies

Vietnamnet Just over the last two years, $10 billion worth of capital has been poured into Vietnam’s leading corporations, including Vingroup, Masan, Vietjet Air, PAN Group, FPT (IT group) and Vinamilk (dairy producer). Vingroup alone in 2018 attracted $4.2 billion worth of capital. Since 2013, it has carried out 13 transactions of attracting capital from foreign institutions with total capital worth $7.6 billion. Analysts noted that Asian capital is heading for Vietnam, an open economy which has had obtains high growth rates for many years. The capital is mostly from South Korea, Japan and Singapore. According to Huynh Minh Tuan from VnDirect HCM City, foreign investors are interested in FMCG, industrial real estate, offices for rent and energy.

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