By Locals, for Locals
“In
real estate, you make 10% of your money
because you’re a genius and 90% because you catch a great wave”. - Jeff Greene -
May 2017
#iAMHCMC
Editorial
Editor’s note #iAMHCMC
By Locals, For Locals
TABLE OF CONTENTS Editorial & News 2. Editor’s Note
As I visited the major real estate consulting firms, I learned the facts accompanying HCMC’s quickly changing landscape. This city is capitalising on its many assets – a young population, increasing urbanisation and its rising status as a major manufacturing hub are some of the broad strokes – and that has translated to a rising demand in real estate across all sectors. Hospitals, office buildings, schools, apartments and villas are all in high demand. Foreign and local real estate developers are more than happy to deliver quality products to meet the needs.
Features 3. HCMC in Context 4. Real Estate by the Numbers 6. Key Districts in Ho Chi Minh City 8. Why You Should Keep an Eye
Just look at our stories covering the development of District 2’s Thu Thiem, the success of Vingroup and the soaring levels of investment in industrial zones. Ho Chi Minh City developers are seizing the moment to make the city richer and more accessible for a growing population.
on District 9
9. Big Plans for D2’s Thu Thiem
This isn’t, of course, the whole story.
12. Vingroup Reshapes Vietnam 14. The Heavy Hitters in
HCMC Construction
15. What to Know When You Rent 16. Foreign Property Ownership:
What You Need to Know
20. Your Quick Guide to Office Leasing in HCMC 22. Co-Working Your Way Towards Success 24. Bring on the Green:
LEED Construction in HCMC
25. Tearing Down the House 27. Controlling the Flood: Affordable Housing in HCMC
Alongside the rapid expansion are the millions of HCMC residents who live in the shadows of high-rises, who eke out livings outside of office buildings and department stores. As equally as Ho Chi Minh City belongs to the rising middle and upper classes, it belongs to the xe om drivers, street food vendors, wet market merchants and factory workers who work hard to buy food, pay rent and support their families. I was happy to meet and speak with real estate professionals who are cognisant of and working towards mitigating the hardships some citizens have experienced as HCMC has increased its presence in the global marketplace. While luxury apartments look beautiful against the skyline, low-income housing is in higher demand; some developers are working diligently to provide these options. And these are issues that we’ve covered in the following pages.
28. Industrial Zones in HCMC:
Land of Opportunity
30. Building the Boom: FDI in Construction 32. HCMC’s Hospitality Industry Ramps Up
For me, the big takeaway from this edition is one of high potential. The next few years will be important to determine how and where real estate developments leads. I, for one, am excited to see the results.
34. FUV’s Unconventional Academic Leader
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36. Passion Turned into Success 37. Victoria Healthcare
Keely Burkey
38. EVA Air: Fly to Canada in Style
MEET THE EXPERT 26. Is Sidewalk Culture at Risk? 2 | iamhcmc.com/gazette
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by Alex Crane & Keely Burkey
#iAMHCMC
REAL ESTATE FEATURE
HCMC in Context AVERAGE RENT OF OFFICE (GRADE A-CBD) AND RETAIL FROM 2016 TO Q1/2017 (US$/m /month) 2
60.89 60.54 56.42
60.54
56.22
48.27
48.27
48.19
47.50
OFFICE (GRADE A-CBD)
46.10
Q1/2016
Q2/2016
Q3/2016
Q4/2016
Nothing exists in a vacuum, including real estate. One of the best ways to understand the sector? Take a look at some neighbouring cities. Cushman & Wakefield Vietnam’s General Manager Alex Crane helps us navigate through the stats and figures.
Fact One: Despite Fluctuations, HCMC Has a Stable Footing
Fact Three: Rents Are High, but This Will Change
Q1/2017
skew rent prices. Crane mentions another thing to keep in mind:
“I think what is becoming more relevant to pricing now rather than supply is the occupier’s expectation and evaluation of quality.” As more high-quality buildings start coming
As basic supply and demand dictates, landlords
up, older buildings will pale in comparison.
Jakarta, Manila and Bangkok are cities
can charge higher rents when tenants have few
Tenants will begin to expect more amenities
that have a much longer history of serious
options. However, in 2017 we’ll see an increase
for the money they’re paying, which will create
business development. However, HCMC is
in available office space, and this will likely
real estate competition in the coming years.
showing promise. “We have low vacancy in
OFFICE (GRADE A-CBD): VACANCY & AVG. RENT
the office sector, pushing rents higher than our neighbours, and strong investment into the industrial markets,” Crane says.
Manila
32
Fact Two: The Main Driver Is Labour and Manufacturing
28 24
Manufacturing is attractive for HCMC’s real estate market: companies will invest in an industrial parks, but will also buy office space in the centre of the city as an operations hub. Crane points first and foremost to the city’s strategic shipping location for this draw, but also acknowledges an added bonus for our city: “HCMC’s demographics are quite unique [in
US$/m2/month
Vacancy %
20
31.00
Bangkok
30.14
29.71
25.62
26.37
24.25
22.54
22.87
19.48
19.59
19.70
25.40
Jakarta 29.92
32
26.80
28
22.30 19.91
24 20
16
16
12
12
8 4
4.99
5.07
5.96 4.81 2.45
2.35 1.55
8 4
2.26
Vietnam], offering a well-educated workforce for corporates.”
Q1/2016
Q2/2016
Q3/2016
Q4/2016 3
In 2016, GDP grew 6.2 percent
REAL ESTATE EXPANDED 4 PERCENT
reaching a 5-year high in 2016.
OVER 3,100
new businesses were created.
US$1.5 BILLION newly registered Foreign Direct Investment (FDI) capital
US$1.44 BILLION
3,748
registered and supplementary FDI, with 177 supplementary projects worth
US$629.2 MILLION
Approximately
374,000
CURRENT TOP FOREIGN INVESTORS, US$ MILLION, JANUARY, FEBRUARY AND MARCH, 2017
452
644
JAPAN
TAIWAN
824
911
housing units must be produced yearly to meet the demand. CHINA
SINGAPORE
SOUTH KOREA
50 PERCENT of the Vietnamese population will live in cities by 2040.
A
1,620,000 m2
total office stock, which is a 3 percent increase from last year
11 BUILDINGS
account for 212,651 m2 of leasable space. In 2017, an expected 62,300 m2 leasing space will be available.
B
97 PERCENT
average occupancy rate with a 3 percent increase in rent from 2015
63 BUILDINGS
account for 896,624 m2 of leasable space. In 2017, an expected 124,392 m2 leasing space will be available.
71,122 m2
will be located outside the CBD*
115,570 m2 will be within the CBD
* Central Business District
The majority of
NEW SPACE was made in
SUBURBAN DISTRICTS, not central districts.
VILLA AND TOWNHOUSE PRIMARY STOCK BY DISTRICT
5%
37%
There are
25%
4%
37 SERVICED APARTMENTS
D12
providing
3,335 UNITS in HCMC. These are mostly located in: District 1, District 3, District 7
4%
THU DUC
D9
4% D10
6% INDUSTRIAL SUPPLY BY DISTRICT
D2
BINH CHANH
31% CU CHI
20%
19%
NHA BE
BINH CHANH
11% D9
5%
18%
D7
OTHERS
N S
19%
NHA BE
OTHERS
650 NEW PROJECTS
83 PERCENT of the country’s inward FDI will be put towards the development of industrial parks and economic zones.
will be created, with 512 adjusted projects, and a total investment capital of
US$13.7 BILLION
2,800 HECTARES
REAL ESTATE B Y SOURCES
T H E • Colliers Report Q4 2016
N U M B E R S
• World Bank Vietnam
• Alex Crane, “Up and Coming Vietnam” - Bat Dong San • CBRE Vietnam Market Insight Presentation
ILLUSTRATORS
Around
Trang Pham | Tung Dinh
made up of 8 new industrial parks will be built in the immediate future. This will increase the current stock by
60 PERCENT
Trying to make sense of Ho Chi Minh City’s urban sprawl? We’re here to help. CBRE Vietnam has compiled the most important facts about some of our city’s many districts.
District 1: District 1 is the hub of top hotels
District 2 has some of the highest rental
(Intercontinental, Times Square), landmark
yields in apartment projects, especially
office buildings (Bitexco, Kumho), luxurious
those near Thao Dien. District 2 has a very
apartments (Vinhomes Golden River, Avalon)
positive outlook for pricing appreciation –
and top-tier retail brands (Takashimaya, Gucci,
properties within 10 minutes of the metro line
Chanel).
stations are forecast to increase by 10 to 20
Vibrant lifestyle can be felt with the bustling
percent next year.
business activities throughout the day and
District 3: Right on the fringe of
partying at night in both local and Western
the busy CBD, District 3 conveys a
styles.
sense of tranquillity with lots of
With a limited land bank, transaction prices in all kinds of real estate properties are notably higher than in other districts – apartments can
old-style French houses, and some Grade B and C office buildings and 3-star hotels.
go for US$7,500 per square metre and prime
Rental fees for apartments and commercial
retail locations can be as high as US$300 a
places are a bit higher than in other districts
Recently the
month per square metre.
around the centre due to easy connectivity
district’s appearance has improved thanks
District 2:
with the current CBD, but the district is
to high-rise condominium projects emerging
expected to stay relatively stagnant with a
along the Ben Nghe river canal.
lack of real estate projects coming online in the near future.
District 5: A strong Chinese culture can
200-hectare township of Sala Dai Quang Minh
District 4: Small District 4 is the most
and many street-front shophouses along busy
and the mushrooming mix-use hub around
densely populated district with an abundance
retail streets such as Nguyen Trai and Tran
Metro Line No.1’s stations, with some of the
of delicious street foods. Low-quality houses
Hung Dao that keep drawing interest from
biggest residential and retail projects such as
and continuous traffic jams make the location
consumers. However, limited available land is
Masteri Thao Dien and Vincom Megamall.
less desirable for buyers and investors.
a strong drawback for developers. There are
Considered to be the future
Central Business District of HCMC, District 2 has witnessed impressive changes in the past few years, including the rapid forming of the
6 | iamhcmc.com/gazette
be felt here with delicious, cheap restaurants
River, such as Saigon Pearl and Vinhomes Central Park The Villa, are among the most
District 9:
With a large land bank
and improving infrastructure, District 9 has become the new hot spot for townhouse/ land plots with appreciation at the top of the market. some small-to-mid-scale projects under construction, but the district does not have a strong pipeline for future projects.
In 2016, on average, villas/townhouses increased more than 10 percent year-on-year and land plot prices were up as high as 15 by local developers (Khang Dien
projects are still good choices for mid-to-highclass locals and expat renters, with rental fees comparable to those in District 2 along the
Lower-end projects are also being built to satisfy different classes’ needs. Traffic jams and flooding might be the main concerns for residents in the area.
House, Nam Long, M.I.K), District
Phu Nhuan District:
9 now welcomes more foreign players,
district sits between Tan Son Nhat International
extending product lines for buyers.
Nha Be District:
Residential
townships with large green areas and sufficient facilities have become attraction points for
District 7:
US$7,000-US$9,000 per square metre. These
Metro Line, if not higher.
percent to 25 percent. Traditionally dominated
Mostly known for the Phu
expensive products across the city, selling at
buyers, many of them with kids. Notable projects in this rural district include Dragon
This small
Airport and District 1, and thus is home to plenty of hotels, shophouses and commercial buildings. Due to its proximity to the international airport (until the new one opens), it attracts a lot of industrial warehouses with foreign staff renting apartments nearby.
Hill Residence, Nine South Estate and Phu
Traffic jams and crowded streets can be
Hoang Anh. Bigger townships are under
depressing, but friendly neighbours and
planning.
delicious food do compensate.
There’s not much focus on business office
Binh Tan District: Recent westwards
buildings or hotels, so Nha Be District is ideal
movement has made Binh Tan District more
for living or simply for a second home for a
desirable. Along with District 9, Binh Tan will
weekend retreat. Affordable prices and rental
be one of the affordable housing hubs of the
fees might offset the traffic jams that buyers/
city in coming years, thanks to infrastructure
renters would have to embrace to travel to the
developments and rapidly improving facilities.
CBD, though usually they’re not too bad.
The district also abuts many industrial parks
office building ever to open in a decentralised
Binh Thanh District: With easy
further to the west, so its houses can attract
areas of Ho Chi Minh City. Considered a well-
access to District 1 and District 2, Binh Thanh
established area with high levels of security and
has become a good selection for many high-end
Binh Tan District no doubt has an excellent
services, District 7’s selling prices have been
residential or mixed-use projects even before
outlook in terms of real estate developments
higher but stabler compared to other districts.
the economy crisis in 2008. Villas along Saigon
and urbanisation.
My Hung township, District 7, which has wide streets with well-built shophouses, apartments and
commercial
buildings,
has
attracted mostly wealthy locals and foreigners, especially Koreans and Japanese. In December 2016, District 7 welcomed the Mapletree Business Centre, the first Grade A
workers.
7
#iAMHCMC
REAL ESTATE FEATURE
by Keely Burkey
Why You Should Keep an Eye on District 9 of land in District 9, that is the way it will stay for the foreseeable future.
Rather than developing the stock, the city municipal department, along with other companies who have invested in District 9’s land plots, prefers to bide their time for the moment, focusing on other projects closer into the city. Google Earth
You’ve heard it here first: District 9 is gearing up to be the new Brooklyn of Ho Chi Minh City. Just… probably not anytime soon. If you look at a map of Ho Chi Minh City, you’ll notice something striking: the districts in the centre of the map, like Districts 1, 3 and 4, are smaller than the outlying districts, like Districts 9, 12 and Binh Tan. This development is normal, and follows
developers are now having to look for cheaper land. And this pushes them further and further away from those established nodes.”
One big reason for this seems to be transportational issues. The construction of the metro is a big topic in Ho Chi Minh City at the moment, and even now, years before the metro will be finished, it’s affecting real estate prices. As VietnamNet reported, 37 percent of
For developers, much attention falls on one particular sector: District 9, a 114-km² block of land which lies on top of District 2. For developers there are many draws: the land is cheap, the parcels are large and as of now, not much of it has been seriously developed.
established historical patterns seen in other cities, like Paris and London. When
District 9 in particular has been on Griffiths’
transportation was limited, districts needed to
eye for some time. Although land development
be smaller. Now that we have motorbikes, cars
stopped in this space during the global financial
and a metro on the way, larger spaces can be
crisis of 2007 and 2008, recently he’s seen a
carved onto the map.
major upswing in market interest. “To be
apartment units for sale are along the Metro Line No.1, which connects Ben Thanh Market to Suoi Tien Park in District 9. When you add the metro to the recently completed Ho Chi Minh City-Long Thanh-Dau Giay highway system, a 55-kilometre-long road that connects District 9 to District 2 and Dong Nai, it’s clear that developers see big plans for this district.
District 9’s Top New Projects
honest,” he admitted, “I think that District 9
And it’s these larger spaces that are catching the eye of developers and real estate consultants not only across the country, but also across the world.
is starting to run out of these large available parcels of land.” And who’s taking advantage of it? “Everyone,” Griffith asserted. “You’ve got the local developers and then you’ve got your internationals, your Keppels and your
Expansion Plans Troy Griffiths, the Deputy Managing Director for Savills Vietnam, explained the development strategy in detail. “It’s the pattern of the city’s development,” he said.
CapitaLands.”
Land Grab The parcels of land might be sold with ease, but that doesn’t mean that District 9 will be the new District 1 in a year’s time. The Vinh Tran from
“There are nodes with density that have grown
the Ministry of Construction recently reported
and then become filled and occupied so that
that although the government has a large stock
8 | iamhcmc.com/gazette
1. Condos Sun Tower | Developer: N.H.O Khang Viet Year of Completion: 2018 Units: 379 | Price: US$650/m2 Him Lam Phu An | Developer: Him Lam Land | Year of Completion: 2017 Units: 1,092 | Price: US$900/m2
2. Villas and Townhouses Lucasta | Developer: Khang Dien Year of Completion: 2019 Units: 140 Price: US$800/m2
by CBRE Vietnam
REAL ESTATE FEATURE
Big Plans for D2’s Thu Thiem
#iAMHCMC
developer Dai Quang Minh is the most active developer in this area. It developed plot #5 and #6 with a total area of nearly 40 ha, which includes 5,600 condominium units, 513 villas and other commercial components. The first condominium block, Sarimi with 414 units, was handed over to buyers in Q3/2016, while the
Just across the river from District 1’s Central Business District, right now District 2’s Thu Thiem Ward is largely grass, swamps and plains. But in a few years? Get ready.
subsequent phases are under construction. The average asking prices range from a whopping US$2,000 to US$2,800 psm.
Thu Thiem, right over the Saigon River from
For Thu Thiem, 20 years after the local
District 1, is a huge land bank of 657 ha. This
authority decided to make it a new urban
area is set to become a new business and financial
area, it’s now gradually taking shape with
centre for HCMC. These plans aren’t new: the
infrastructure, residential, commercial and
master plan for Thu Thiem was first designed by
exhibition projects.
will have a resident population of 150,000 and a daily working population of 220,000 when the developments are completed. One of the major issues is making the land easily accessible to workers and residents in other parts of the city. Links will include a tunnel (now completed), four road bridges (one already completed), a pedestrian bridge, a metro link and HCMC’s existing waterway network.
Creating the Core Area
plot 2b, developed by a joint venture of Tien Phuoc, Tran Thai, Gaw Capital and Keppel units along with office and retail space and a
Investing in the Future
86-storey landmark building.
According to the master plan approved by the HCMC People’s Committee in 2005, Thu Thiem
Another notable project is Empire City in
Land, which will have 3,000 condominium
US architecture firm Sasaki Associates in 2003. Soon, these plans will be coming to fruition.
Attracting Attention
In Q1/2017, the total registered investment in Thu Thiem reached over US$6.6 billion from more than 16 developers.
In Q4/2016, Linden Residences in Empire City held a soft launch event which attracted a lot of attention from foreign buyers, with 459 out of 504 units sold. At the event the average asking price ranged from US$2,500 to US$2,800
Here are some of the other big players. Keppel
psm, but in Q1/2017, the average asking price
Land invested in Quoc Loc Phat Co. to invest in
reached US$3,100 psm.
the Song Viet project in plot #1. Vingroup, will invest in the Entertainment and Sport Centre in plot #2c. Other projects under planning are
Thu Thiem holds a lot of potential but there is still much to be done to ensure its success.
the GS E&C project in plot #3, Thu Thiem
planning is easy. How is the construction going?
To make this vision of the Pudong of Saigon come true, some radical policy changes are believed to be needed first.
Projects under construction are located in the
Want to know more? Take a look at the projected
centre of the peninsula in plot #5 and #6. Local
plans on the next pages.
EcoSmart City by Lotte, Mitsubishi and Toshiba in plot #2a, and the Marina Complex by SULT Marina Development Pte. Ltd. in plot #7. But
One of the main concerns during this huge project is making the city plans as organised as possible. Hence, the 657-hectare territory of Thu Thiem is divided into eight plots. The “Core Area” is divided into two neighbourhoods known as #1 and #2 (a, b, c). The Northern residential area consists of neighbourhoods #3 and #4. The residential areas along the Mai Chi
MAJOR DEVELOPERS IN THU THIEM Source: CBRE Vietnam, Q1/2017
0
Tho Boulevard are known as #5 and #6. Neighbourhood #7 includes the Eastern Residential development, Urban Resort Hotel and Marina. Neighbourhood #8 encompasses the entire Southern Delta area.
Similar to Pudong’s location in Shanghai, Thu Thiem occupies a large peninsula formed by a meander in the Saigon River. Pudong needed 25 years to become a thriving commercial and financial centre of Shanghai.
Scale, ha 20
40
60
80
100
120
Dai Quang Minh Vingroup JV Lotte Assets-Mitsubishi-Toshiba
JV Tien Phuoc-Keppel Land Tran Thai-Gaw Capital Partner JV Hong Kong Land-CII GS E&C JV Quoc Loc Phat-Keppel Land 9
#iAMHCMC
REAL ESTATE FEATURE
Plot 1 + 3 + 4 Section 1-3 and 3-5: Trung Thuy Group got the approval to study development and design plans for a 1.16-ha site. Section 1-15 and 3-3, 3-7, 3-11: GS E&C got approval to carry out an investment plan for a 4-ha site. Section 3-1, 3-2, 3-6, 3-15, 3-16, 4-7 and 4-8: CII and Hong Kong Land will develop mixed-use projects; Quoc Loc Phat Co. got approval to invest in a 4.8-ha mixed-use development.
by CBRE Vietnam
Major Approved Projects of Thu Thiem
1 Plot 2a: Thu Thiem EcoSmart City
6
5
2a
Mixed-use | Status: In-principal approval in 2014 Developer: Lotte, Mitsubishi, Toshiba Area: 16.7 ha | GFA: 730,000 m2 Total investment cost: US$2.2 billion
7
3 4
2b 2c
8
Plot 2b: Empire City Project
Plot 2c
Plot 8
Mixed-use including a 86-storey landmark building Status: Started in late 2015 | Soft launch of Empire City Linden Residences in Dec 2016 Developer: Keppel Land – Tien Phuoc – Tran Thai – Gaw Capital | Area: 14.5 ha | GFA: 730,000 m2 Total investment cost: US$1.2 billion
Entertainment and sport centre: stadium, sport park Status: In-principal approval Developer: VinGroup Area: 31.49 ha Total investment cost: US$294 million
Eco-forest park Status: In-principal approval Developer: Dai Quang Minh | Parcel Area: 17.9 ha Gross floor area (GFA): 60,000 m2 | Floor area ratio (FAR): 0.34 | Height: 4 stories Commercial ratio: 100%
Plot 7
Plot 5 + 6
Marina Complex (Parcel 7-2) | Status: SULT Marina Development Pte Ltd. | (Singapore) and Sai Gon Yacht Corp have registered for development but no activity yet | Total area: 5.4 ha | Gross floor area (GFA): 5,000 m2 | Floor area ratio (FAR): 0.14 Height: 6 stories | Commercial ratio: 100%
Mixed-use Status: First residential component handover in 2016 Subsequent phases in progress Developer: Dai Quang Minh Area: ~100 ha | GFA: 730,000 m2 Total investment cost: US$2.2 billion
10 | iamhcmc.com/gazette
#iAMHCMC
REAL ESTATE FEATURE
EAST-WEST HIGHWAY Connects Thu Thiem to residential and commercial districts to the east
FOUR MAJOR ROADS Total length: 11.9km Investor: Dai Quang Minh and Vietnam Infrastructure Development and Finance Investment JSC. (VIDIFI) Construction started in 2014, to be completed in 2017
Source: http://www.thuthiem.hochiminhcity.gov.vn
Road R4
THU THIEM 4 BRIDGE Linking Thu Thiem with District 7 Under-planning
THU THIEM 1 BRIDGE Linking Thu Thiem with Binh Thanh District Investor: Thu Thiem Authority Opened in 2008
THU THIEM 3 BRIDGE Linking Thu Thiem with District 4 Under-planning
THU THIEM 2 BRIDGE Linking Thu Thiem with District 1 (at one end of Ton Duc Thang Str.) Investor: Dai Quang Minh Under-construction, set to open in 2018
PEDESTRIAN BRIDGE Linking Thu Thiem with District 1 (at Me Linh Square) Investor: Dai Quang Minh Under Design and Concept Contest
THU THIEM TUNNEL Linking Thu Thiem with District 1 Investor: Thu Thiem Authority Opened in 2011
INFRASTRUCTURE
Planning for Thu Thiem begins
1996
Relocation of existing residents officially begins
2002
Thu Thiem 1 Bridge opened
2008
Thu Thiem Tunnel opened
2011
1/2000 master plan by architecture firm Sasaki Associates unveiled
2012
Work on Thu Thiem 2 Bridge begins
2/2015
Launch of the first residential project in Thu Thiem by Dai Quang Minh
7/2015
First residential project handover by Dai Quang Minh 7/2016
2016
THU THIEM’S DEVELOPMENT TIMELINE
11
#iAMHCMC
REAL ESTATE FEATURE
by Jesús López-Gomez
Vingroup Reshapes Vietnam Even if you haven’t heard of Vingroup, you’ve definitely seen its developments. Many believe Vingroup is the face of Vietnam’s real estate future, and it has big plans. A look at Vingroup’s revenues alone doesn’t
stores, 1 million square metres of retail space,
do justice to how large the company is. You
and a group of over 100 other properties across
need context.
the country that serve as hospitals, resorts and entertainment destinations. Almost any
If Vingroup’s stocks were traded on a US securities exchange, its 75 percent year-on-year growth would win it a place on Fortune’s list of the top 100 fastest growing companies. In 2016, the company reported almost doubling its revenue from the year prior after posting nearly the same banner year in 2015. It also made a splash on the world stage in December with its Vinhomes Central Park, which was decorated with regional and global awards. An obvious question arises: How?
Walking with Giants
imaginable need could be served by a Vingroup asset. “I think their strategy is just world domination,” Deputy Managing Director of Savills Vietnam Troy Griffiths said with a laugh.
Vingroup’s meteoric rise is due to the company’s executives, experts say. “It’s attributed to the great leadership of the chairman,” Viet Capital Securities researchers said in an interview citing the company’s origin story. Vingroup founder Pham Nhat Vuong started the food-processing company Technocom in Ukraine. By the time food giant Nestlé acquired it in 2009 for US$150 million, Vuong had broken ground on his first major projects in Vietnam, Vinpearl Resort in Nha Trang and
It becomes an easier question
and 2004, respectively. Vingroup would be
to answer once you look at the
formed in 2007.
assets cover. The group’s holds nearly 1,000
by Thinh Dinh
The story’s “prodigal son” theme – a journey abroad followed by homecoming and success – is nuanced by the fact that Vingroup’s profile has extended to the world stage. In 2013, the company became the first to attract international investment from US private equity firm Warburg Pincus. The company has invested US$300 million in Vingroup so far. Another US$1 billion has been invested in Vingroup in the same time period.
International Attention
“They’re just a very interesting animal.”
Vincom City Towers, which opened in 2003
broad range of sectors that Vingroup’s
Today, Vuong is one of the wealthiest individuals in the nation, and the company he started is one of the largest in Vietnam.
Aside from funding from outsiders, the company has also attracted international attention for its unparalleled developments.
REAL ESTATE FEATURE
Landmark81, a 461-metre-tall building that
#iAMHCMC
Planning for Vietnam’s Future
will open later this year inside Vingroup’s Vinhomes Central Park, was voted the best highrise building in the world at the International Property Awards in London in December. The 81-storey tower will be 152 metres taller than the Shard of London as well as the tallest building in Vietnam and the 11th tallest in the world when it is completed. Located in Binh Thanh District, the development took a prize for the best urban complex in the region.
As the company’s revenue and profiles have grown, so too has the company’s mission matured. Vingroup’s network of Vinmec hospitals and Vinschool educational centres committed 100 percent of their profits to charities in 2016. The company added that it would invest VND 4 trillion (US$176 million) in Vietnam’s healthcare and education.
The development is just a fraction of the
Allocating financial resources to nonprofits
company’s expansive portfolio.
matches peer institutions like the United States’
After reporting a blockbuster financial year – Vingroup posted a whopping 72 percent increase in revenue, VND 58.5 trillion (US$2.6 billion), over last year – the company shows no signs of slowing down. The group is working on an ambitious waterfront development known as Vinhomes Golden River. About 25 acres located southeast of the zoo and botanical gardens will be used for an enormous development made up of 13 apartment buildings. The plans call for 63 villas to be built around them. The mixed-use development aims to open with a plethora of amenities. The development’s website boasts not only the standard perks of living in a mixed-use development – a restaurant, a supermarket – but also advertises plans for parks, a museum and an international school. The website calls the site “a city within a city”. A report updating investors on the project in
Mayo Clinic and Johns Hopkins Hospital. Vietnamese law describes such companies as “social enterprises”. Vingroup’s move into the health sector has led to the expansion of medical services to previously underserved communities. For example, the Vinmec hospital in Phu Quoc was the area’s first international-standard hospital, a move described by Griffiths as “altruistic”. The company has a stated mission of combating chronic food shortages through the Vinmec centres. Vingroup also supports youth development programmes and programmes to support orphans and senior citizens. Outside of Ho Chi Minh City, Vingroup is completing a 175,300-square-metre mixed-use project in Hanoi, Vinhomes Gardenia. About three-quarters of the units there have been sold in advance. Separately, the company’s more than 7,000 villas and condos scattered throughout the country are 81 percent occupied.
February noted that 73 percent of the more than
Looking forward, Vingroup’s shopping centres
2,500 units currently available in the project
and Vinpearl resorts will be a major focus
have been claimed already.
through 2020, according to the company’s 2015 annual report. The company’s five-year
Just as the Vinhomes Golden River project is a “city within a city”, Vingroup’s businesses have grown to be a world unto themselves by the sheer breadth of sectors in which they operate.
strategy statement calls for further expansion of these two brands.
The report provides an insight into Vingroup’s corporate philosophy. Its mission: creating “a better life for the Vietnamese people”.
The group’s portfolio includes hospitals, schools, groceries and many other businesses.
Alongside income growth, the company states an
Vuong remains the board chairman and
interest in greater transparency and management
majority shareholder in Vingroup with a 28.5
excellence by modelling its executive activities
percent stake in the company, according to
after professional services consultants Ernst &
a 2015 company report. The majority of the
Young and PwC. The 2015 report describes 2016
company, 84 percent, remains with Vietnamese
as “a year of Quality and Efficiency” as the group
shareholders. Foreign investors hold the
undertook changes to its corporate governance
remaining 16 percent.
and human resources development. 13
#iAMHCMC
REAL ESTATE FEATURE
by Kristian Goodchild
The Heavy Hitters in HCMC Construction The cranes are swinging over construction sites, but who’s paying for it all? With massive foreign investment and dizzying density, Saigon is developing at a furious pace. Everywhere you look the city is changing, with sleek malls and infrastructure investment transforming the city. Central to the city’s evolution is the residential sector. At every level of the market new developments are increasingly modern, comfortable and safe. Budget developments are on par with Western equivalents and the luxury options are as good as you could find anywhere in the world. Here are the top five companies making huge waves in HCMC:
Novaland
and has since enjoyed considerable growth within the residential construction sector.
Dat Xanh remains committed to affordable housing as the central point of its corporate identity and will offer around 1,000 cheap apartments in HCMC in 2017.
Vingroup As we explain in greater detail in the previous story, Vingroup is the largest private-sector real
Despite market worries about the niche nature
estate operator – period – in Vietnam. While
of its business strategy, the company sold 8,000
most of the group’s current developments
units in 2016. More than 3,800 were sold in
appear to be aimed at middle-high earners,
the first six months, and these accounted for
the group is also planning between 200,000
29 percent of units sold in the city, according
and 300,000 apartments under its Vincity
to Savills Vietnam.
banner, with low prices (around US$30,000) aimed squarely at middle-income buyers.
Khang Dien House Trading and Investment
The company has invested over US$1 billion
The group’s sprawling developments in Khu
Nam Long Group
Pho will eventually form a huge residential
in HCMC developments in the last year, with many flagship projects nearing completion.
bridge between District 2 and 7. Formed of a mix of affordable and high-end luxury condos, the developments will dominate the hitherto sleepy District 9 for years to come.
Nam Long’s flagship projects, ‘Ehome’, are possibly Saigon’s best examples of affordable housing done well. Since the first trial development in D7, Ehome offerings have won plaudits for their aesthetic quality as well
High-end developments and Singapore-style condo compounds are Novaland’s speciality. New developments are popping up all over the city, despite what some call a dire lack of demand for luxury at such high volume.
Dat Xanh Real Estate With interests in infrastructure and low-end developments, Dat Xanh has also branched out into mid to high-end apartments in recent years.
Born from Nova Group, a provider of veterinary,
Developments such as the Sunview Apartments
animal health and villa rental services, the
in Thu Duc showcase the group’s commitment
corporation rebranded as Novaland in 2007
to technical quality and modern design.
14 | iamhcmc.com/gazette
as affordability and market-savvy awareness. Group leader Nguyen Xang Quang said his focus on budget construction was to serve the real demand sector in the city:
“When the market was booming during 2006-2007, we […] decided to focus on the segment with the bigger demand.”
by CBRE Vietnam
REAL ESTATE FEATURE
#iAMHCMC
What to Know When You Rent What does it take to successfully rent out an apartment in an increasingly competitive marketplace? Yes, location is important. As people stream into HCMC, being a landlord
of rooms, not so much the total unit area),”
makes sense. Some 830 serviced apartments
added Linh.
are scheduled to come online this year, along with 49,000 condominium units. Not less than fifty percent of CBRE Vietnam’s residential closed deals are buy-to-let, where foreign or local investors buy a property to rent it out.
Where and How to Advertise How do you get good tenants? Typically, anyone looking for an apartment will search online or
If you’re thinking about renting out an
ask friends about housing opportunities. Going
apartment, you’ll be renting to either local
through a leasing agent is a distant second
people or expatriates. How do they differ?
choice due to the added costs involved.
Differing Demographics
The two most popular choices for apartment leasing advertisements are Muabannhadat.vn and Batdongsan.com.vn. However, if you’re
In the expat market, location is everything.
new to the game, going through an agency can
“Based on my experience, Westerners, both
speed up the process and avoid complications
single and with families, tend to prefer District
with tenants.
2, while District 7 sees a lot of action from workers from Asian countries,” commented
One of the most important decisions will be
Linh Do, Leasing Manager at CBRE Vietnam.
determining a reasonable rent. In HCMC, the
“If an expat chooses to live in District 1,
market rent for a mid-end apartment is US$8
whether Western or Asian, more often than
to US$11 per square metre, while high-end
not they’ll require a shorter leasing term (less
apartments are generally US$12 to US$14 per
than six months).”
square metre. Rent will also depend on the
“Foreign tenants will look more closely at the interior design, amenities close by and the overall building. For local tenants, it’s all about the price and unit capacity (the number
location, lease term (people generally offer lower rents for longer lease terms) and the condition of furnishing. Look at the rents of comparable units nearby.
CBRE Vietnam’s Top Two Apartment Leasing Tips 1. Do your research. Location is your top consideration. Think about the future: projects along the Metro line should have good capital gain and leasing potential in the medium and long term. Good local amenities such as schools, hospitals, supermarkets and green environments are another advantage. Check the track record of the developer, amenities and facilities of the building, including parking capacity, floor layout (number of units per floor, number of lifts, fire escapes) and the reputation of the management company. 2. The apartment may need to be redesigned or upgraded to suit tenants. Loose furniture, kitchenware and utensils, air-conditioners, a television and the internet should be provided. Some service companies provide leasing consultancies such as rental rates, interior design, a 24/7 hotline to support tenants, maid service or insect repellent if requested, and they manage tenants by collecting rental fees or help to find new tenants. They can also help the owner avoid legal complications with tenants.
15
#iAMHCMC
REAL ESTATE FEATURE
by CBRE Vietnam
Foreign Property Ownership: What You Need to Know Vietnam’s guidelines on foreign land ownership have changed dramatically. Here’s where foreign ownership stands today.
• Three months before the expiration of the tenure for house ownership, if the owner wishes to have the tenure extended, he/she
Vietnam’s economy has been thriving in recent
The biggest change with this new policy is that
years. FDI into the country has been on an
now all foreign individuals who are granted
upward trend, and its real estate market has
entry into Vietnam and all foreign investment
been booming since 2014 along with a great deal
funds, banks, Vietnamese branches and
of infrastructure investments. It is evident that
representative offices of overseas companies
there is an increase in the number of foreigners
are able to buy properties here.
looking to invest in Vietnamese properties.
In addition, they are allowed to buy not only
Since July 2015 buying a house in Vietnam as a foreigner has been made a lot easier.
apartments but also landed property (villas and
What Are the Rules on Foreign Property Ownership in Vietnam?
strictly for owner-occupied purposes, while the
Taking effect from July 2015, the revised Law on Housing has brought about many positive changes in terms of foreign property ownership. This opened a new chapter for Vietnam’s residential sector, where local and foreign developers alike are working aggressively to tap into this new pool of buyers.
townhouses), and their home ownership rights have been significantly relaxed. The previous law only allowed foreign home ownership to be revised law has allowed these properties to be sub-leased, traded, inherited and collateralised. The catch is that the total number of units owned by foreigners must not exceed 30 percent of the total units in one condominium complex, or 250 landed property units in one particular administrative ward or its equivalent.
From Whom Can It Be Purchased? On the primary market: from developers of
Current Laws (Effective 1 July 2015) Eligibility
only from foreign individual/entity owners
YES for all foreigners who are granted
(not from local owners) with the remaining
a visa to the country and not entitled to
ownership tenure (renewal possibility available
privileges and diplomatic immunity.
Product
residential projects. On the secondary market:
upon expiry).
townhouses)
Sub-Leasing the House
by foreigners must not exceed:
• 30
percent of the total units in one
condominium building;
• 10 percent of the total landed property units in one residential compound;
• 250
landed property units in one
particular administrative ward or its equivalent. The properties owned by foreigners can
Purpose
be sub-leased, traded, inherited and
Foreigners are allowed to sub-lease their houses, but they must report this activity to the districtlevel housing authority. Rental income is taxable, with the tax rate varying in accordance with the rental income.
Renewal of Ownership
collateralised.
Tenure
specifies the extension length and includes a certified true copy of the certificate of the house, then send it to the People’s Committee of the province in which the house is located. • Within 30 days from the receipt of the owner’s application, the People’s Committee of the province shall consider and issue a written permission for one extension of the ownership tenure at the request of the owner. Such extension must not exceed 50 years from the original expiration date written on the certificate. • According to the written permission given by the People’s Committee of the province, the certificate-issuing body will write the extension on the certificate, and send a copy of the certificate to the Department of Construction of the same province for monitoring.
Looking Forward Vietnam’s property market may not be as transparent as its more developed counterparts, but it does present great opportunities. Some projects that have seen huge interest from foreigners include The Nassim in the Thao Dien area or Empire City in the Thu Thiem Ward of District 2.
Apartments and landed property (villas and
The total number of dwelling units owned
Volume
must file an application for extension which
Going forward, as the market further develops and quality standards further improve, we believe there will be a growing presence of foreigners investing in Vietnamese properties after some time studying the market. These buyers are more likely to look at projects from well-known developers with good track records, and/or those in good locations with
50-year leasehold with renewal possibility;
For a foreign individual who owns a house
capital growth and leasing potential, even
Foreign individuals married to Vietnamese
in Vietnam, the procedure for extending the
though selling prices of these projects can be a
ownership tenure is as follows:
lot higher than average.
citizens are entitled to freehold tenure.
16 | iamhcmc.com/gazette
Real estate ADVERTORIAL
#iAMHCMC
Santa Fe Relocation Services If you’re thinking of moving to another country, the to-do list seems never ending. For Santa Fe Relocation Services, however, this list is an opportunity, not a challenge.
Stephanie Ralainarivo
Moving is stressful. A national move, let alone
Santa Fe Relocation Services has one singular
up a home, they don’t just drop off the
an international move, can be one of the most
mission: to handle, minimise and eliminate
boxes and leave when the van is empty. As
taxing times in a person’s life. Just ask Stephanie
the stress of relocating. In fact, their mission
Christine Byrne, the Head of Admissions at
Ralainarivo, the General Director for Santa Fe
statement is, “We make it easy”. Stephanie told
ISHCMC and long-time customer of Santa
Relocation Services Vietnam.
us the biggest stress isn’t the adjustment to a
Fe Relocation Services, recalled, “They did
new culture or even a new language barrier
everything for me. I was literally sitting in
– it’s the emotional ties that are pulled when
the corner – I didn’t have anything to do!
a family leaves a comfortable home. “It’s the
They even set up my electronics and hung the
emotional part [of moving] that makes it more
pictures on the walls.” This story isn’t singular:
intense than just the physical part by itself,”
Santa Fe’s many in-house supervisors and vast
she acknowledged.
moving crew are experienced and qualified to
Stephanie has made relocation her business, and she’s gotten good at understanding what makes the process such a pain.
give every new resident peace of mind.
For starters? Schooling. When families move, this is always the most important, and often the hardest problem to solve. “Depending on what academic environment a family is coming from, it is not always easy to find a matching curriculum,” she told us. And then there are the matter-of-fact problems. How about the tax laws that are vastly different from the ones you grew reluctantly to know, or the changes in weather and climate? Or even just the fact that your kitchen appliances won’t work in the outlets found on another continent? What kind of houses will I find?
“A family knows they have to move, but they worry about everything. There are so many unknowns. So we just take care of it. We handle the details that cause the most stress. That makes a big difference.”
organising paperwork and with a team of professionals to mitigate the emotional pitfalls? Sounds almost too good to be true. But that’s where Santa Fe’s experience come into play. First of all, there’s the actual moving. Don’t
consider amongst the myriad stresses that
worry about the usual city-wide search for
accompany relocation.
cardboard boxes: a team of Santa Fe movers will come and help pack, ship and track all of
With a world that’s becoming increasingly
the move, Byrne remembers looking around her new home. “Everything was done by six o’clock. I had never seen anything like it!”
Trusted Advisors
Moving countries without the hassle of
These are factors that people often don’t
Lending a Helping Hand
When friends came over that night to celebrate
a family’s valuables. Plus, a team will be at the dock to help and, ultimately, to unload each box in a resident’s new home.
As everybody knows, moving is much more than trading spaces. Moving is all about feeling comfortable in a new environment. So Santa Fe is always available for any question. This help might be as small as pointing out a store that sells Vegemite to as big as helping with the home search or work permits.
But most important for Stephanie Ralainarivo? Making sure each family and individual feels happy, safe and healthy in their new home country.
globalised, moving to another country is
Santa Fe works with their fleet of in-house
becoming more and more normal and, in some
supervisors and crew to add to your peace
“A family who had just moved had young
industries, almost expected.
of mind. And when the Santa Fe team sets
children and had only been in Vietnam for a month. One night they called one of our consultants at 11 p.m. saying that their child was sick and they weren’t sure how to call the hospital. So the consultant drove to the house, calmed them down, and realised that they had been dialling the numbers incorrectly. Everything turned out fine. That’s the sort of commitment we have to our customers.”
8th Fl., 5 Nguyen Gia Thieu, D3
With offices in 47 countries and counting,
+84 8 3933 0065
Santa Fe Relocation Services has made moving
santaferelo.com vietnam@santaferelo.com
into an art. 17
#iAMHCMC
REAL ESTATE ADVERTORIAL
Cogniplus Interiors It starts with the construction. For a shop, this
Joseph is adamant that a good working
might mean building inset shelves into the walls
atmosphere is essential to running a good
or installing changing rooms in the back of the
company. By establishing a cosy and friendly
store. For an office, it could mean anything from
way of working with one another, the Cogniplus
putting up window blinds to installing sinks
team has been able to maximise the potential of
and toilets in the bathroom. These changes,
all of their creations. Joseph told us, “If people
called a “fit-out” in the construction business,
feel comfortable at work, and not pressured,
aim to make the space practical and useable
all of their work will naturally be better. It’s
for the client.
as simple as that.” It’s a well-known fact that
Although Joseph is a designer by trade, he recognised the importance of being able to provide complete fit-out projects for companies. That’s why he worked hard to grow Cogniplus Interiors from four employees to 75 over its 15
The Sheraton Nha Trang Hotel & Spa. The Armani Exchange in Saigon Center. The Puma Development Center. What do all of these beautiful spaces have in common? They were designed and constructed by Cogniplus Interiors.
years of business. Today, in addition to interior design and fit-out construction, Cogniplus can handle mechanical and engineering projects and even make custom furniture.
There’s nothing quite like the feeling of walking colours, furniture and energy of a space align cohesively, you can’t help but feel comfortable. This harmony doesn’t come naturally: it’s carefully constructed with the help of talented, experienced construction visionaries such as the team at Cogniplus.
Collaboration Is Key Joseph Tham, the General Director and co-owner of Cogniplus Interiors, knows
innovation, so this makes perfect sense. And it’s been working well for Cogniplus since the company was founded.
Lasting Partnerships As a unified company, Cogniplus Interiors can keep an eye on all the moving parts at once. Its goal? To create partnerships. This is why Joseph has created what he calls
Controlling the Moving Parts into a beautiful, well-designed space. When the
happiness naturally leads to productivity and
For Joseph, having the ability to do a complete fit-out is one thing. But actually having the personnel and staff to do the projects is quite another. He is emphatic about one thing in particular:
“The most important part of completing a project successfully is the project management. If the project managers are not organised and experienced, things can get very messy very quickly.”
the After Sales Service: professionals from Cogniplus Interiors visit each project twice a year after they’ve finished. If needed, they will perform maintenance on any problem the office, hotel or store might have.
Why does Cogniplus care so much about keeping its clients happy? The reason is simple. “Real estate changes so quickly here,” Joseph notes. “In two or three years they will move to a new space, and they’ll know who to turn to when they do!”
the peace that comes from a well-designed space, and the discomfort that an ill-designed space can bring as well. With 20 years of interior creation experience in Malaysia and 15 years’ experience in Ho Chi Minh City, there’s little he hasn’t seen in his line of work.
When a company opens an office, a retailer opens a shop or a hospitality company opens a hotel, what actually goes into its creation? The first thing to understand is just how many moving parts are needed to manage a project from start to finish. 18 | iamhcmc.com/gazette
239 Dien Bien Phu, D3 | +84 8 3827 9688 | info@cogniplusvn.com | cogniplusvn.com
REAL ESTATE ADVERTORIAL
#iAMHCMC
Move Your Office Like a Pro: Crown Relocations Considering the tremendous costs, time and
At Crown Relocations, professional, reliable
energy associated with moving to a new
and consistent moving has been boiled down
office, this is not a decision to take lightly.
to a science, from the initial consultation to the
Making a mistake could have major financial
specialised secure moving crates used for transport.
repercussions and affect your business. For the sake of all involved, it’s often better to let an expert handle the situation.
“We make sure they look at certain things,” Rossall tells us. “What’s the access to the new building like? What notices should you give to
But what happens if you don’t? You’ve got
security? How many good lifts are available?”
the CEO, the finance department and the IT
These are things that seem minor, but can
department just for starters. Everyone will want
actually cause huge problems if they’re not
their own department to benefit in the new
attended to. And that’s just the start.
office space, and all those opinions will likely lead to confusion. “You’re left with a bunch of people who have no experience with moving,” Rossall notes. “A lot of the time it’s the
Be sure to keep the following tips in mind if you’re thinking about moving – or better yet, give Crown Relocations a call.
finance people and procurement people who
Moving your company to a new office can be tough, but does it have to be? Crown Relocations’ Jamie Rossall shares the tips of his trade. This year is looking to be a big one for office space. According to Cushman & Wakefield’s “Office Snapshot Q4 2016”, 200,000 m2 of new supply will be built, and over half of it will be in the Central Business District. This will add to the 10 Grade A buildings and 49 Grade B buildings already in operation. HCMC is beckoning to new and existing businesses, and, judging by the success of leasing agencies, businesses are responding in kind. However, don’t whip out the bubble wrap just yet. Moving offices might seem like a simple task, but think again. Just ask Jamie Rossall, Crown Relocations’ Country Manager for Vietnam. His experience with Crown Relocations, the
have the ultimate say in what you’re doing. And they’re not necessarily looking at it from
Unit 2404, 24th Floor, 561A Dien Bien Phu, Binh Thanh District
a holistic approach.”
crownrelo.com/en-us/country/vietnam
+84 8 3840 4237 | hochiminhcity@crownrelo.com
Changing Spaces: Top Five Tips from Crown Relocations’ Jamie Rossall 1. Plan early! The time will go quickly. “As soon as you’ve got your premises and you know where you’re going, look at it as early as possible,” Rossall advises. Just how early? If your company is planning to move in a year, start talking to a moving company six months before. 2. Tidy up! How much an office relocation will ultimately cost depends on how much you decide to bring with you. Volume equals money, so the more paper and accumulated waste you can get rid of, the better. “There’s no point turning up to a bright, shiny, clean new office with a bunch of old things that are going to go into the corner, take up space and gather more dust,” Rossall says. 3. Clean securely! When an office moves locations, decades-old papers suddenly become unearthed. You don’t need them anymore, but do your competitors? Simply throwing them away in the bin will leave you and your company vulnerable. That’s why Crown Worldwide provides secured destruction bins. Bonus tip: you can also rent these bins on a regular basis.
largest privately owned moving company on
4. Sell the space! If your employees aren’t on board with the move they could quit, and that
the planet, has allowed him to get the inside
could mean big trouble for you and your company. So make sure you let each and every
scoop on all things moveable.
employee know the benefits of the new space – even if it means an extra 10 minutes a day on the motorbike.
Prevent a Messy Situation
5. Store what you can! Most businesses have marketing materials – where do you keep yours? If it’s in the break room cupboards, you might want to rethink that scenario. You could be
When a company starts thinking about
using that space better if you sign up for one of Crown Relocations’ secured storage units.
relocation, what happens next? As Rossall points
And if you’re moving, what a perfect opportunity.
out, the chain of command isn’t always clear. 19
#iAMHCMC
REAL ESTATE FEATURE
by Keely Burkey
Your Quick Guide to Office Leasing in HCMC Leasing an office is at times utterly exciting and utterly terrifying. But don’t worry, Colliers International lets us know what it takes to get through the process with ease.
Market Overview Knowledge is power. If you’re thinking about leasing an office in Vietnam, understanding the economic climate is vital. Here’s a brief overview of things that will affect your foray into office spaces.
Vietnam Is a Frontier Market with Potential Ho Chi Minh City has seen a lot of growth in the past few years, but it’s important to remember that Vietnam is still a frontier market. Compared to cities like Bangkok or Jakarta, we’re still in the early stages of development. Ho Chi Minh City’s relatively low amount of office space and high occupancy rate has two main effects on the city’s office real estate market. First, we’re living in a leasing agent’s world. With low supply and high demand, the team at Colliers International has seen rents
office occupancy in Bitexco when space was
potential office site depends entirely on what
leased in 2011.
your company requires: “If you’re a financial
The good news? Rent prices will likely stabilise and decline as more office space becomes available, and several new projects are due to come online in 2017. The bad news? As Vietnam increases its office space, it’s also becoming more attractive to overseas businesses; don’t
institution that needs to be the best in class, then maybe you need to be located in Deutsches Haus, because you understand the quality of what is being delivered and you pay a premium for that. If you’re a telephone sales operator, you don’t need to be located there.”
expect the demand to waver anytime soon.
What Do Your Employees Want?
However, if you’re looking to move your
Changing offices means changing a lot of lives,
company to a new space in HCMC, here are
and sometimes it isn’t for the better. The last
some things to keep in mind.
thing you want is to lose valued employees who don’t want to battle District 1 traffic if they’re
Phase 1: Planning Is Everything
used to a converted villa in District 2. Colliers International’s advice? Take a survey.
This can’t be stressed enough. The success of
Ask all employees what they want and need in
your move depends entirely on your planning,
a new office space. The benefits will be twofold:
organisation and strategy. Here are some
your employees will feel included and invested
guidelines.
in the move, and you’ll get valuable information when searching for potential spaces.
raised up to 30 percent in the last six months.
What Is Your Business’ Future?
Office space in a Grade A building will generally
Moving offices demands a bit of soul searching
cost you US$45 or US$50 per square metre.
about where you see your company in 5 or 10
Involve Your Employees... But to an Extent
This is an incredible turnaround, seeing as the
years. David Jackson, the General Director of
Employee input is valuable, but there’s always
Colliers team reported trouble achieving high
Colliers International Vietnam, told us that a
the threat of a “too many cooks in the kitchen”
20 | iamhcmc.com/gazette
REAL ESTATE FEATURE
Colliers International’s 10 Mistakes Commonly Made by Tenants
scenario. Many opinions from different departments can easily lead to chaos, so here’s another tip from Colliers International: appoint a project manager. Make a senior employee the go-to person in charge of communicating with the leasing agents, consultants and contractors. And after the move, be sure to give that employee a bottle of wine for their efforts!
Learn the Market. Know the Market. Be the Market. The real estate market is constantly evolving, and this is doubly true for a quickly growing city like HCMC. An informed decision will mean scouring quarterly reports put out by real estate research companies, websites and investment journals as thoroughly as possible. This can be difficult if you can’t speak or read Vietnamese so here’s another option: pair up
#iAMHCMC
1. Failing to leave enough time at the end of the lease to fulfill reinstatement obligations. 2. Acting too slowly once a decision is made and consequently missing out on opportunities. 3. Failing to appoint a project leader as the internal single point of contact. 4. Making inaccurate estimations of the company’s space requirements. 5. Agreeing to terms before obtaining a space-planning perspective. 6. Beginning the negotiation of a renewal or new lease too late. 7. Lacking clearly defined business or real estate objectives. 8. Focusing exclusively on financial costs. 9. Failing to allow for expansion space. 10. Lacking the knowledge of future opportunities. Often, the best deals are secured well in advance of space becoming available
with a consulting company and let it do the dirty work for you.
Phase 2: Fitting in the Fit Out so important to know what you need inside Now you know what you want. What next? Finding the office of your dreams and making it yours. But what does this entail? Whatever you choose, get comfortable: a typical leasing period in Ho Chi Minh City can last from six months to two years, depending on the size of your company.
and out. While most leasing contracts are largely the same (“They’re the same because I wrote most of them,” Jackson jokes), there’s one area in which a Vietnamese lease differs from a typical lease in a Western country: the length of time is generally shorter. In London, leases can range
Design the Office of Your Dreams In Vietnam, appearances matter. Plus, besides the deposit, the fit-out will be the most expensive part of leasing an office – so don’t take it lightly! Hire a professional designer and contractor who knows what he or she is doing, and has plenty of experience. This is also a great chance to make use of those employee surveys you handed out
Take a Good, Hard Look at the Contract
from 5 to 15 years, while in HCMC you’re more
It’s best you know up front that as a tenant,
The reason? The exchange rate. While real estate
you’re not going to have home court advantage.
discussions typically use US dollar amounts,
David Jackson notes, “Because there’s limited
the Government’s Decree 99 states that all real
buildings of quality here, a lot of the contracts
estate contracts must use Vietnamese dong.
Your office should reflect your company’s
are much in favour of the landlord in terms of
Shorter leasing periods let landlords and tenants
culture, aesthetic and goals, not to mention
the constraints and options.” This is why it’s
renegotiate when the exchange rate changes.
affect employee morale.
likely to find two to three-year leases.
in Phase 1. Remember that not everything has to do with money; factor in the intangible costs and benefits of the space as well.
21
#iAMHCMC
REAL ESTATE FEATURE
by CBRE Vietnam & Arik Jahn
Co-Working Your Way Towards Success Say, you have a cracking business idea, perhaps even small team, but you don’t have the money to rent an office. What do you do? You become a co-worker. First things first: what is a co-working space?
DREAMPLEX DreamPlex 1: Level 9 - 10 - 11, 21 Nguyen
A Belated Boom
Trung Ngan, D1 DreamPlex 2: Level 10 - 11 - 12, 195 Dien
A co-working space is a work environment that several occupiers, often from different industries, share. The point is that rather than renting an office, you pay for a membership that allows you and your fellow co-workers to use the working
However, while Tokyo alone is home to more than 100 co-working operators, Ho Chi Minh City only recently reached the modest threshold of 10, covering less than one percent of the city’s overall office space. The reason is easy to guess: Japan experienced a “start-up boom” earlier and on a larger scale than Vietnam.
space and the on-site facilities such as coffee
Between 2010 and 2012, the number of
machines (that’s an important one), Wi-Fi,
co-working spaces in Japan, tailored to the
printers, meeting rooms, etc.
new business model, skyrocketed by more
Who uses it? This real-estate model caters to freelancers and start-ups as they are full of ideas and motivation but short of money, and
than 1,400 percent! Meanwhile, the very first co-working provider in Ho Chi Minh City, Start Saigon, began its business in 2012.
in need of flexible office solutions as well as a
The numbers seem to indicate a similar, yet
networking-friendly environment.
more moderate trend in Vietnam. According to data from the General Statistics Office, the
Bien Phu, Binh Thanh D Auditorium: Ground Floor, 195 Dien Bien Phu, Binh Thanh D | info@dreamplex.co dreamplex.co | +84 8 7306 6880 Business hours: Mon-Sat 9 a.m. to 6 p.m. Price: VND 150,000/day; From VND 2,000,000/m What’s the place like? DreamPlex has two huge complexes in District 1 and Binh Thanh District with DreamPlex 1 catering to small or medium start-ups, while DreamPlex 2 provides bigger space for bigger companies. Who does it cater to? All kinds of individuals, start-ups and small businesses are welcome. What about private offices? Small studios for two to four people come at VND 17,000,000 to 20,000,000.
Co-working spaces provide them with just that. Since memberships are typically monthly, leasing costs are considerably lower and their networking options sit right at their table.
amount of newly registered companies has
In Ho Chi Minh City, choosing a co-working
Ho Chi Minh City is in the vanguard of this
space over a traditional office can save up to
movement, followed by Hanoi and Danang.
25 percent of leasing costs, and that doesn’t
Let’s embrace the future by taking stock of the
What else to mention? Barack Obama spoke
even include the extra money needed to equip
present: here’s all you need to know about five
with entrepreneurs at DreamPlex when he
the office.
major co-working spaces in Ho Chi Minh City.
visited Saigon in May 2016.
been growing at an average 21 percent per year
Business services? DreamPlex provides contact
across the country since 2015.
to law and accounting firms, audit and HR companies, investment mentoring and coaching.
The start-up model has taken hold in Vietnam, even though at a comparatively slow speed.
we're looking for a
THE WORLD’S MOST COMPREHENSIVE GATEWAY TO VIBRANT VIETNAM
22 | iamhcmc.com/gazette
BY LOCALS, FOR LOCALS
Networking events/workshops/coaching? There are weekly events and workshops to connect investors and start-ups. Any special amenities? DreamPlex 2 also houses a 225-m2 auditorium for up to 210 guests.
REAL ESTATE FEATURE
FABLAB
GO WORK
44/10 Nguyen Van Dau, Binh Thanh D
15 Nguyen U Di, D2 | +84 8 3744 2589
+84 9 4971 6313
info@factoryartscentre.com
hello@fablabsaigon.org | fablabsaigon.org
factoryartscentre.com/go-work | Business
Business hours: Mon-Sat 9 a.m. to 6 p.m.
hours: Mon-Sat 9 a.m. to 7 p.m.
Price: No daily pass; VND 1,300,000/m
Price: VND 100,000/day; VND 1,900,000/m
What’s the place like? Fablab is a makerspace,
What’s the place like? Go Work is a smaller
a coffee shop and a co-working space all in
co-working space that is part of The Factory
one, housed in a typical Vietnamese townhouse.
Contemporary Arts Centre.
Who does it cater to? Fablab is tailored to
Who does it cater to? All kinds of individuals,
creatives and designers.
start-ups and small businesses are welcome.
What about private offices? You can rent a
What about private offices? To come.
private office for 8-10 people, starting from VND 8,000,000/month. Business services? No. Networking events/workshops/coaching? Fablab runs regular workshops of original content and engages members in community projects. Any special amenities? Fablab also has a makerspace and an on-site shower. What else to mention? Membership comes with
#iAMHCMC
Summer Camp Summer Camp Summer Camp June 19th - July 14th
Summer Summer Summer Camp Camp Camp
June 19th - July 14th June 19th - July 14th
For children 18 months to 11 years old For children 18 months to 11 years old For children 18 months to 11 years old
June 19th - July 14th June 19th - July 14th June 19th - July 14th For children 18 months For children 18 months to 11 years old For children 18 months to 11 years old to 11 years old
Business services? No. Networking events/workshops/coaching? It organises networking events and workshops. Any special amenities? Go to the outdoor terrace or the exhibition hall for a creative break. What else to mention? Membership comes with a discount at the on-site restaurant, bar and cafe with an organic and healthy menu; members have free entrance to all exhibition openings at The Factory.
one free drink per day and a 10% discount on food and beverages.
SAIGON COWORKING
START SAIGON 18bis/14 Nguyen Thi Minh Khai, D1 +84 8 6682 8580 | start-saigon.com hello@start-coworking.space
101 Cu Lao, Phu Nhuan D | +84 9 6510 0244
Business hours: Mon-Fri 9 a.m. to 6 p.m.
info@saigoncoworking.com
Price: VND 120,000/day;
saigoncoworking.com
From VND 1,800,000/m
Business hours: Mon-Fri 9 a.m. to 9 p.m. Price: No daily pass; From VND 2,000,000/m What’s the place like? Housed in a multi-storey building in a calm neighbourhood, this is a dynamic and large co-working space. Who does it cater to? Saigon Coworking attracts co-workers from all business and creative fields. What about private offices? Saigon Coworking offers private offices for up to 15 people, starting at a monthly fee of VND 11,000,000. Business services? It provides co-workers with legal, financial and IT consulting, as well as a range of other services including help with driving licence or work permit. Networking events/workshops/coaching? No. Any special amenities? How about a lush rooftop garden?
What’s the place like? Start Saigon sets a casual environment spread over two houses. It was the first co-working space in Vietnam. Who does it cater to? The focus lies on IT start-ups and design professionals. What about private offices? Private offices come at VND 25,000,000/month. Business services? Start Saigon actively helps start-ups with product development, web design and team building. Renowned partners provide legal advice and business licences.
Limited Places. Register today! Limited Places. Register today! Limited Places. Register today!
(08) 2222 7788 / 99 (08) 2222 7788 / 99 (08) 2222 7788 / 99 www.issp.edu.vn/camp www.issp.edu.vn/camp www.issp.edu.vn/camp 92 Nguyễn Hữu Cảnh, 92 Nguyễn HữuThạnh Cảnh,Dist., Ward 22, Bình 92 Nguyễn Hữu Cảnh,Dist., Ward 22, BìnhCity Thạnh Ho Chi Minh Ward BìnhCity Thạnh Dist., Ho Chi22, Minh Ho Chi Minh City
Networking events/workshops/coaching? It organises daily community lunches, barbecue and pool parties, tech meet-ups, workshops, etc. Any special amenities? Start Saigon boasts an outdoor swimming pool and a rooftop lounge. What else to mention? For those who want to
What else to mention? Saigon Coworking can
make their workspace their home, the private
organise a personal secretary for you.
bedroom package is VND 11,000,000/month. 23
#iAMHCMC
REAL ESTATE FEATURE
by Jesús López-Gomez
Bring On the Green: LEED Construction in HCMC A Green-Tinged Future?
Vietnam isn’t known for green energy initiatives, but some developers are looking to change that. We find out what a greener and cleaner future might look like in HCMC.
Looking forward, Jackson said firms are going
Go out on any warm day and you’re likely to
“Green building adoption has been limited in
hear the collective “whoosh” of the city’s many
Vietnam,” the council wrote in its 2013 report.
air conditioner units perched outside residences.
The report said that “factories have led the
A centralised air conditioning system would
way thus far”, like the LEED-certified Colgate-
be more cost effective and friendly to the
Palmolive Plant in Cu Chi, the first one to obtain
environment, but the reason you don’t see
the certification in the country in the summer of
these and other sustainable practices adopted
2016. The Binh Duong province plant, which
more widely in construction is partly just
opened in 1996, worked with international
short-sightedness. LEED expert and Colliers
engineering firm Royal HaskoningDHV to
International Vietnam General Director
remake the 18,600-square-metre facility.
David Jackson explained that the benefits of green building are buyer- and tenant-centric. (LEED stands for Leadership in Energy and Environmental Design, a US rating system for the environmental performance of a building.)
“The issue with residential is that a lot of people won’t invest because the benefits [of having more efficient equipment or construction materials] stay with the owner rather than the builder,” he said. Never mind that the cost between building a sustainable structure and a conventional building is “minimal”, he added.
LEED vs. LOTUS
The plant employs around 1,200 people and makes 250 million products annually. “Slowly, Asia’s Factories Begin to Turn Green,” read a New York Times headline in 2014 describing a Vietnam Intel plant with a water-reclamation system and one of the country’s largest solar panel clusters. The developments resulted in questions from local authorities: they were reportedly seeking direction on what kind of standards the Vietnamese government could impose on its country’s manufacturers.
to need to figure out how to help developers frame their sustainability interests in terms of market value for buyers. In other words, “what people look at here in terms of development is which one is going to sell my property more,” he said. “And I think people will focus on LEED” because of its international recognition, he said. Jackson said developers need to involve a green building consultant early in a project.
“By bringing on a green consultant at an early stage of a project … they will guide you in terms of cost savings,” he said. Vietnam has also eased this process by making sustainable appliances more widely available. “When you’re looking at green products, five, six years ago, it was very difficult to find lowflush toilets,” Jackson said. “You can get that here now.” Vietnam has an edge in the green building
“Until you get to a very mature city level … with tax incentives, development incentives … it’s going to be hard to push for [sustainable development],” Deputy Managing Director of Savills Vietnam Troy Griffiths said. Some incentives do, however, exist right now. Jackson
space because of its wealth of architects and international architecture firms. With the decreasing costs and greater sensitivity to environmental issues, Jackson said there’s reason to be optimistic about the adoption of sustainable building practices.
described a HCMC building code that allows
“I think with technology [becoming less
Interest in LEED certification has grown to a
builders to add an extra floor to their edifice if
expensive] and more experience in the market,
point where a separate, more locally oriented
sustainability standards are met.
all building is going that way.”
set of standards has been developed, LOTUS.
SECTORS DOING GREEN IN VIETNAM*
Those standards have been slow to take hold. Vietnam’s Green Building Council reported in December that just 12 projects had sought and acquired LOTUS certification.
22%
In 2013, the council reported that 41 buildings
19%
had received some kind of sustainability
8%
certification, either from LEED, LOTUS or a
6%
smallest share of certified buildings, 3 percent. 24 | iamhcmc.com/gazette
42%
Supermarket
Office
School
Hospitality
Residential
*Measures green buildings that are certified and/or registered with LEED, LOTUS, EarthCheck, BCA GreenMark or following GreenStar.
comparable metric. The majority, 42 percent, were factories. The residential sector had the
Factory
3%
Source: “Is There a Future for Green Buildings in Vietnam?” by Solidiance
by Keely Burkey & Vinh Tran
REAL ESTATE FEATURE
#iAMHCMC
Tearing Down the House For architect The Vinh Tran, From the HCMC Department of Construction, the key to HCMC’s future development isn’t building new buildings – it’s tearing down old ones.
The problems come into play when tenants, who own apartments or have binding leasing agreements, refuse to give up their home to make way for new building construction. Legally, Tran explains, the government has no right to forcibly remove a resident from their
This might shock you, or it might not: hundreds of buildings in Ho Chi Minh City are deemed worthy for demolition. Many of the buildings in question are old residential buildings – condos or apartment complexes built before 1975. As architect The
proper home, even when the house is hazardous and potentially dangerous.
old condos in and around Ho Chi Minh City, most are concentrated in Districts 1, 3, 5 and 10.
In total, there are around 50,000 apartment units that need to go. This might come as strange news for anyone who follows real estate in the city. After all,
Real estate companies, waiting years for land to become available in the city centre, have
When you factor in the monetary incentive that members of the Ministry of Construction are offering tenants, you have to ask: why stay?
Vinh Tran explains through an interpreter over a cup of tra da, although there are 474 of these
Rather than develop from the centre of the city and then slowly progress outwards, as many cities naturally develop around the world, Ho Chi Minh City is on a different path.
grown impatient. Now Novaland and other development companies have opted instead to invest money in land around the outer rim of the city. Tran considers this a less-than-optimal solution, as it results in uneven and ultimately
Because they live in prime locations, Tran says. Development plans in the city are widely known, and the tenants who live in these rapidly degrading buildings know the worth of the properties they live in. Many tenants consider the compensation offered by government officials to be inadequate when
uncontrollable real estate development. Traffic congestion and even pollution would be less, he maintains, if development was allowed to go forward on old condo complexes.
Slow Progress
judged against the property’s worth as well as other factors.
Despite the lengthy compensation negotiations, old buildings are gradually being torn down –
land prices are rising, and this is especially true
After all, many tenants living in the degrading
for land in Districts 1 and 3. Some developers,
houses work in the centre of the city in a
Tran reports, have been waiting for land to
variety of lower paying jobs. Occupational
Recently, Tran reports, government officials
become available for over 20 years. And it’s not
options seem bleak when forced with the idea
have thought of a new incentive which has
just the developers – the government is equally
of relocation to affordable housing units on the
been attracting more old apartment tenants: a
prepared to develop new projects over old and
outskirts of the city. However, as the years pass
guaranteed spot in the new apartment building,
unsafe projects. The holdouts? The tenants of
and the buildings degrade, these citizens are
and sometimes a job within the building as well.
the buildings themselves.
playing a dangerous game of chicken.
Location, Location, Location
Building on the Edge
just not at the rate that the city has targeted.
However, it seems as though for the moment The Vinh Tran will have to be content with the slow crawl towards uniform modernisation in the centre of the city. Without adequate
According to real estate regulations in Vietnam,
The Vinh Tran is adamant about this issue and
resources to make existing tenants happy these
any building constructed before 1975 is
considers it a keystone preventing the city from
crumbling houses will serve as a visual reminder
considered liable for destruction or renovation.
efficient development strategies.
of the progress yet to be made.
25
#iAMHCMC
MEET THE EXPERT
Interview by Keely Burkey
Is Sidewalk Culture at Risk? sharing of the sidewalk space. There’s a social system that allows people to take turns. How do you think the sidewalks in Ho Chi Minh City differ from sidewalks in other cities? After organising an international conference
We’re seeing an anti-immigrant sentiment sweeping the globe, and people have not come up with good ways to deal with the fact that millions of people are already here.
about global street-vending where I could compare it to other places, it became clear to
What about motorbikes, and how the sidewalks
me that Vietnam is very different. Usually the
are used as parking lots?
store owners are the ones most vehemently against street vendors because they think it’s unfair competition and/or they’re degrading the physical environment and they’re going to lose their real estate value.
by Travis Hawk
But in Ho Chi Minh City while these arguments are also made, there are also many accounts in which the store owners were helping [street
Sidewalk clearing initiatives are nothing new in Ho Chi Minh City, but the latest attempts have been making national news. University of Southern California (USC) Professor Annette Miae Kim provides some insight on what could be lost if the sidewalks are cleared. How did you become interested in Ho Chi Minh City’s sidewalks? I have a personal family background – my father was born in North Korea, so I was interested in these Asian communist countries that were starting to make reforms, and I came to Vietnam with my advisor as a grad student and just really liked it there. While I was living in Saigon in 2000, researching [my book, Learning to Be Capitalists], I would walk on the sidewalks. I loved living in the city but could never quite put my finger on what exactly was so
vendors] out. They were hiding them during police raids, they were giving them free water, free electricity, they would store their goods overnight for a small fee.
I realised that there’s a high degree of legitimacy in Vietnamese culture, especially in the South, and that there’s a lot of accommodation made for vendors.
In my book, we meticulously measured the use of sidewalk space and found that vendors take less space but employ a lot more people. And I think it’s really serious how, as incomes have grown, there are so many more cars. The city really wasn’t built for that many cars. There really needs to be serious control of cars, because that’s going to lead to gridlock. Are there any other cities that are incorporating vendors in different or innovative ways, so residents get the best of both worlds? What I brought to [the HCMC city planning department] was the example of Boston’s Freedom Trail. It’s like a red painted line that goes around the city, so tourists can follow the line as they walk around.
Do you think the sidewalk clearing campaign
What’s neat is that it goes from historic things
we’re seeing today is different from any past
as well as shopping as well as different ethnic
attempts?
towns like little Italy and Chinatown.
I think what was really remarkable was how [District 1 Deputy Chief Doan Ngoc Hai] was towing government cars and demolishing government office buildings. I hadn’t seen that before, and I think that’s why it’s gotten a lot of attention. It’s a “no one’s above the law” kind of act, and I haven’t seen that before.
wonderful about living in Ho Chi Minh City. Are you aware of any options or alternatives What did you find out when you began
that might be available to street vendors if this
researching sidewalks for your second book,
initiative takes away their place to work?
“Sidewalk City”?
They take up a lot more space than vendors.
I haven’t heard of any government suggestions
The city planning department was intrigued by that. They invited me to make a mock proposal for HCMC, and it was approved by the People’s Committee to be a pilot project.
The whole approach was that you don’t need to radically change things and sanitise the city. People want to see the regular living life of Ho Chi Minh City. When you go to Ho Chi Minh City, what are some of your favourite street foods?
Basically, one of the biggest things I found out
what the alternative would be. With a lot of
is that sidewalks are a very democratic space.
migrant populations and immigrants – not just
People from different classes were coexisting
in Vietnam, but globally – I think, a lot of times
and hanging out with each other and helping
the city’s approach is “just don’t be here”, and
And lots of the snacks, like the crackers and
out each other. There’s an incredible amount of
not really thinking of alternatives.
cookies that they grill on the sidewalk.
26 | iamhcmc.com/gazette
So many things! I love nuoc mia, and all the drinks. I get xoi, the sticky rice, and banh mi.
by Keely Burkey & Nguyen Van Duc
REAL ESTATE FEATURE
#iAMHCMC
Controlling the Flood: Affordable Housing in HCMC One of the keywords in Vietnam’s real estate today is urbanisation. Today, 34.1 percent of the country’s population live in cities, and this number is rapidly growing. The biggest question remains: where will everyone live? With an increasing Foreign Direct Investment (FDI) presence, a rising middle class and an influx of expatriates from wealthier countries, there’s no simple answer to this question. by Thinh Dinh
Nguyen Van Duc, the founder and owner of Dat Lanh Real Estate Company Ltd., a real estate developing company that focuses exclusively on affordable housing in Ho Chi Minh City, knows this only too well. With the help of his son, Nguyen Hung Tam, who acted as interpreter, Duc explained why he has devoted his life to affordable housing. He pointed out an obvious advantage to affordable housing development: “The land available is on the outskirts of the city, so it’s cheaper.”
affordable housing. And I don’t know the name. It’s not a big presence.” For local investors it’s also notoriously difficult to gather the money to complete these projects through bank loans. Dat Lanh Real Estate Company Ltd. has found another way to complete Duc’s projects: crowdsourcing from potential tenants. Many low-income workers and families will
So far he’s built dozens of housing projects for low-income workers, mostly in District 12, and this demand will not let up any time soon.
learn of a real estate project and will invest money to ensure a place to live when the project is finished. I ask how many projects have required help from tenants, and Duc’s response is immediate: “Most of them.”
Adding Up the Numbers Thousands of Vietnamese have been pouring into the city limits, attracted by the prospect of employment and educational opportunities. While this increase is clearly good news for manufacturing factories and schools, it has caused strain on the city’s housing and infrastructure developments.
Rising Demand and a Shifting Future The rising demand for affordable housing has come at a time when the real estate market is least prepared. In the past several years, the middle income and luxury apartment market has soared, spearheaded by large companies like Vingroup and Novaland. But these middleto high-income apartments are only viable for
Ho Chi Minh City’s high-end real estate
20 percent of Vietnam’s population.
projects, but has so far turned a blind eye companies make affordable housing, and he answers, “From my knowledge, there’s only been one foreign company that is investing in
The real estate market has already seen a small shift in development. Last December, for example, Vingroup’s residential sector, Vinhomes, announced plans to develop condos with a VND 700 million price tag in the outer districts of Hanoi, HCMC and other larger Vietnamese cities. While this goes in the right direction, more substantial plans are required to address the needs of the millions of students and workers who want affordable living space. For Duc, the question of an adequate supply of housing depends on several factors. He’s adamant, for example, about the need to revise the necessary amount of square metres per
One problem? FDI has been funneling into
towards affordable housing. I ask if any foreign
that the General Statistics Office listed Vietnam’s median yearly income in 2016 as just VND 50 million (US$2,200).
The result has been thousands of apartments coming online at an asking price of VND 1 billion (around US$44,000). Keep in mind
apartment. In HCMC, every apartment needs a minimum of 45 m2; Duc would like this to be changed to 30 m2 or even 20 m2, like the building limits in Binh Duong. Duc expressed his desire to find a like-minded foreign partner who could help fund projects in Districts 12 and 9, though many foreign companies are likely put off by the low return on investment (around 10 to 20 percent). “It’s true,” he said, “the profit is not very high. But the benefit is, we always run out of the product.” 27
#iAMHCMC
REAL ESTATE FEATURE
by Maxfield Brown, Dezan Shira & Associates
Industrial Zones in HCMC: Land of Opportunity RENT RANGES
Source: Savills Research & Consultancy
Max Rent
Min Rent
US$/m /term
Industrial Zones and HCMC’s Real Estate Market
2
Besides providing good conditions for
300
investment, industrial zones, and the parks within them, often provide opportunities for real estate professionals.
250
After all, building an industrial park also means
200
building roads, utilities networks and other infrastructures.
150
Plus there’s the fact that by supporting investment from small and large investors alike,
100
industrial zones play a significant role in driving demand for residential housing.
50
With unemployment in HCMC hovering HCMC
BINH DUONG
LONG AN
DONG NAI
BA RIA - VUNG TAU
around 2 percent and managerial skills in high demand, new projects in industrial zones
Industrial zones (IZs) aren’t as flashy as the high-rise office buildings in District 1, but manufacturing has become the backbone of Vietnam’s economy. Maxfield Brown, the lead ASEAN editor for Dezan Shira’s Asia Briefing Ltd., takes a look at the future of IZs in HCMC. Ho Chi Minh City has long stood as a hub for economic activity and a primary attractor of Foreign Direct Investment (FDI) in Vietnam, and guess what? This hasn’t changed. Here are the big numbers: in the first quarter of 2017, FDI investments in the city were up 51 percent over the year prior, amounting to nearly
of advantages: personal and corporate income tax incentives; improved infrastructure; streamlined compliance requirements; and a range of prefabricated or tailor-made facilities are just some benefits.
US$600 million total. There are many reasons for HCMC’s success: an array of logistics links, demographic trends and trade agreements with other countries are all coming together to attract investment. On top of this, and perhaps most importantly, are
Although most industrial zone tenants are domestic companies, today these areas are also highly sought after by multinational enterprises
are often dependent on workers from other Vietnamese provinces and on managerial staff from abroad. Everyone needs a place to live, and now developers are working to build these affordable housing blocks.
At present, while industrial parks in districts such as Tan Phu, District 2 and District 9 are all at full capacity, other areas such as Cu Chi still provide significant potential for future investment.
Keeping Costs Under Control: A Constant Struggle
seeking large-scale bases for manufacturing within Vietnam.
If you’re a real estate investor and you want to tap into these opportunities, you should
HCMC’s industrial zones.
Some of the heavy hitters?
Right now the city has 19 industrial parks with
For one, there’s Samsung, which set up a US$2
leasable land in conjunction with the cost of
another eight on the way.
billion components facility in the Saigon High-
basic materials, wages and the going sale price
tech Park in 2016. And then there’s Intel, which
for real estate within specific districts.
For domestic or international investors setting up in HCMC, industrial parks offer a wide variety 28 | iamhcmc.com/gazette
remember: always consider the supply of
established a production facility in 2009 at the same location with a current value topping
While certain areas within HCMC may be at
US$1 billion.
a relatively low capacity, Vietnam remains
REAL ESTATE FEATURE
#iAMHCMC
one of the most sought-after destinations for
INDUSTRIAL MARKET PERFORMANCE BY DISTRICT
investment in the country.
Source: Colliers International Research Average Asking Rent
As such, leasable land as a whole is in low supply compared to other provinces such as Dong Nai and Binh Duong.
Because of this, the minimum leasing rate within HCMC, even within low capacity areas, is near the maximum rate found in other provinces.
Occupancy Rate
US$/m /term
%
2
300
100 90
250
80 70
200
60 150
50
While this certainly allows for increased profit for the landlord, the intense demand
40 100
30
for materials and personnel has led to higher wages and price inflation for building materials in recent years. These are constantly shifting and
20
50
10
should be monitored closely if you’re looking to construct a new factory or housing complex within the city lines.
Districts to Watch
D9
D12
CU CHI
BINH CHANH
over 1000 ha of leasable land expected to come online in the years to come, the potential for
With several new industrial projects in the planning stages in HCMC, we’re expecting to see industrial zones play an even bigger part in the city’s future soon enough. Keep an eye on Binh Chanh, Cu Chi and Nha Be districts, which all have projects in various states of planning. With high occupancy rates and the thirdhighest average rental prices across all districts in HCMC, Binh Chanh in particular is well positioned for real estate investment. With
NHA BE
D7
TAN PHU
D2
THU DUC
immediate-term contracting opportunities.
this district cannot be understated. Within Binh Chanh, Le Minh Xuan Industrial Park and Vinh
Further downstream, once the listed projects are
Loc I Industrial Park are expected to provide
completed and new workers flood to these areas,
580 and 466 ha of new land respectively,
we’ll see added pressure on both commercial
accounting for the vast majority of new space
and residential real estate markets around these
coming online in the district.
areas. However, no matter the location and focus area where real estate investors choose
For everyone involved, the ongoing development of new industrial park projects will present significant
to stake their claim, the impact of industrial zones cannot be discounted. Get ready to see these projects continue to grow HCMC in the years to come.
29
#iAMHCMC
REAL ESTATE FEATURE
by Alice Laurent, Solidiance Asia Pacific
Building the Boom: FDI in Construction
of this thanks to the factors boosting the construction sector. Ho Chi Minh City is seen as a good match between the city and FDI expectations: we have a business mindset, skilled and relatively cheap labour costs, an international port, plenty of industrial zones and a relatively flexible FDI legal framework. South Korea, Japan, Singapore and Taiwan are the top foreign investors in the HCMC area. We’re seeing them invest more and more in industry and the reason is clear: the biggest export manufacturing companies in Northeast Asia are transferring their production facilities to developing countries like Vietnam as China increases their production costs.
In HCMC, the high-end residential segment is still attractive, accounting for more than 40 percent of the total FDI in real estate.
Foreign Direct Investment (FDI) has been pouring into the construction and real estate markets for years. Alice Laurent from Solidiance tells us which countries are betting a lot of chips on Vietnam’s real estate game.
Let’s look at one case. You’ll notice it when you walk down the streets
• An increasing urbanisation rate.
of Ho Chi Minh City: every square metre is
From 18 percent in 1980, the rate reached
getting optimised. Cranes lifting and trucks
35.7 percent in 2015. Need I say more?
bringing material to construction sites are now
• An urban development governmental
a regular part of the scenery. Clearly, construction
action plan for 2011-2020.
has been picking up again following the
There will be one hundred million square
2011-2012 property market bubble collapse.
metres of residential construction every year; a US$50 million fund shared between public
Contributing 25.3 percent of total Foreign Direct Investment (FDI) capital in Vietnam, construction in Ho Chi Minh City is one of Vietnam’s business success stories. Moreover, recent and upcoming free trade agreements are easing the FDI stream flowing
and private investors will be used to support the urban expansion of HCMC and Hanoi.
major foreign investor in Ho Chi Minh City at the moment. They plan to build another “Vista Verde” condominium in District 2 with 200 units. Meanwhile, another major actor, Mitsubishi Group (Japan), signed a contract with Bitexco to set up a housing development joint venture with an initial capital of about US$290 million. Foreign architecture and design companies
Who’s Getting Involved?
are also doing their part to boost this sector: French consultancy and architecture
In 2016, the total national FDI inflow was
company Archetype Group, design company
US$15.8 billion. HCMC took a large share
Ong&Ong (Singapore), Kumho E&C (South
to Vietnam and, consequently, speeding
VALUE OF CONSTRUCTION SECTOR
construction investment in Ho Chi Minh City.
(at constant 2010 prices)
Here’s what you should know.
Making Sense of the Market
CapitaLand, a Singapore-based company, is a
Source: General Statistics Office of Vietnam Total Output
Foreign Invested Sector
VND billion
VND billion
800,000
45,000
According to market estimates, construction in
700,000
40,000
Vietnam (residential, commercial and industrial)
600,000
was worth about US$51 billion in 2016 and is
500,000
expected to reach more than US$78 billion by
400,000
2020. Wondering why? Glad you asked.
300,000
15,000
200,000
10,000
100,000
5,000
• A strong demographic pressure.
35,000 30,000 25,000 20,000
HCMC officially houses 8 million people but estimates lean more towards 10 million. By 2025, we may be looking at 13.2 million. 30 | iamhcmc.com/gazette
2008
2009
2010
2011
2012
2013
2014
REAL ESTATE FEATURE
GROSS OUTPUT OF THE CONSTRUCTION INDUSTRY
#iAMHCMC
9M2015 (USD Billion) 9M2016 (USD Billion) YOY Growth (Percent)
Source: The General Statistics Office and RongViet Research. Data taken from “Vietnamese Construction Sector in 2017: Slowdown with Great Promises” by Nguyen Ba Phuoc Tai in Bat Dong San magazine. All numbers converted from VND.
16.0
14.5 12.3
0.9
STATE OWNED
-8.7
PRIVATE
FOREIGN INVESTED
RESIDENTIAL HOUSE
NON-RESIDENTIAL HOUSE
Korea) and developer Mitsubishi Group (Japan) are all good case studies
Commercial and Industrial Buildings: The Promised Land
9.0
20.9
CIVIL TECHNICAL BUILDING
SPECIALISED BUILDINGS
Next FDI Challenge? Taking Bottlenecks out of the Highway System, Improving Infrastructure “Ho Chi Minh City will need about US$7.6 billion by 2020 to develop infrastructure,” said
In particular, companies like CapitaLand,
the HCMC Popular Committee Vice-President
Mapletree (Singapore) and Kumho (South
Le Van Khoa during a real estate conference in
Korea) have been showing a strong interest
the city last November.
in the segment. Here are some big numbers: CapitaLand will establish a US$500 million fund by next year to invest in commercial property. They’re turning their eyes towards the Thu Thiem New Urban Area, a 657-hectare site east of the Saigon River, which is marked to be the new central financial district. And don’t forget that last year Takashimaya opened its first department store in Vietnam, in HCMC’s Saigon Centre, a mixed-use development by Keppel Land from Singapore.
In 2016, industrial investments accounted for 17 percent of HCMC’s total construction, but this is expected to increase in the coming years as the city aims to become one of the manufacturing hubs in the region. Ho Chi Minh City currently counts 17 industrial zones with a total area of 4,063 hectares, of which there are two high-tech zones. It is expected that seven new industrial zones will be established with a total area of 2,089 hectares. Samsung’s new US$1.4 billion facility in Saigon High Tech Park is just one proof of this continued interest.
Fully developed communications systems, transportation networks, energy, water supply and sewerage systems, and financial service facilities will all act as leverage for future FDI projects. Moreover, lowering transportation and communication costs will further improve investment effectiveness. Thus, development of infrastructure is essential to attracting FDI. The government has approved the construction of a US$16 billion Long Thanh International Airport near Ho Chi Minh City able to handle 100 million passengers by 2025 – five times the capacity at existing Tan Son Nhat airport. In addition to this, the HCMC committee published a list of infrastructure projects for which foreign investors are allowed to bid (they’re mainly transportation). We’re hoping this will translate to harmonised development
CENTRE MÉDICAL INTERNATIONAL YOUR MULTIDISCIPLINARY CLINIC IN THE HEART OF HO CHI MINH CITY
1 Han Thuyen, District 1 Ho Chi Minh City 08 38 27 23 67 info@cmi-vietnam.com www.cmi-vietnam.com
in the future. Having said that, both local and foreign investors will have to get their hands dirty to solve current challenges to quality of life and increasing productivity: congestion, green space and air pollution are the big three. Let’s see what the future holds.
OUR SPECIALTIES General and tropical medicine Cardiology Psychology Psychiatry Psychomotor therapy Speech therapy
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31
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REAL ESTATE FEATURE
HCMC has always had trouble catering to tourists. As city officials make strides to improve the city’s accessibility, has it been paying off in the hospitality industry? Rudolf Hever, Director of Savills Hotels Asia Pacific, weighs in.
by Rudolf Hever, Savills Hotels Asia Pacific
HCMC’s Hospitality Industry Ramps Up Rising Projects
Which nicely brings us to the subject of M&A activity. Thus far, activity remains limited. There are far more buyers with capital at the ready
The past year didn’t disappoint hospitality
Although the numbers are impressive, the
market stakeholders in HCMC and across
performance of hotels and resorts across the
the country. Confidence remained high,
different submarkets has not improved at the
underpinned by a very strong growth of
same pace. However, the last few years have
international arrivals. This led to elevated levels
seen robust real estate development activity and
of activity across the planning, development,
we are beginning to see the implications in terms
construction and pre-opening pipelines.
of new supply.
This year, not only did we see strong
Competition is intensifying across the board and
development activity in the main cities and
we expect to see more of it in the future. For local
We expect to see a lot more M&A (Mergers and
destinations of Vietnam, we also saw secondary
and international guests, an increasing choice
Acquisitions) activity over the next two years
and tertiary locations gearing up for more
of accommodation options across the budget
as newly developed properties come online and
development: Ho Tram, Sapa, Quy Nhon, Cat
spectrum is a boon – especially with heavily
some owners may be forced to dispose as the
Ba and Dong Hoi to just name a few.
discounted rates during the startup period!
initial operating results fail to meet the service
Rising Numbers
In HCMC, we expect the openings of approximately 1,000 keys in the upscale to luxury segment during 2017-18 (increasing at
than hospitality assets available, although there have been some notable deals, mostly recently the sale of Intercontinental Asiana Saigon, as well as the Duxton HCMC and others.
It remains very much a seller’s market.
requirements of their investment capital.
Coastal Condotels
After stagnating growth in 2014 and 2015,
a compound annual growth rate of five percent).
international arrivals surprised even the most
However, the future supply in HCMC is fairly
So, what keeps us up at night? It would most
hardcore optimists. In 2016, international arrivals
stable compared to coastal destinations in
likely be the coming avalanche of condotels
rose to 10 million, up 26 percent compared to the
Vietnam, particularly in Nha Trang and Cam
mainly in the coastal locations, such as The
previous year. Growth was driven by several key
Ranh as well as Phu Quoc with a large wave
Kenton Node in District 7. The fervour at which
markets including China (up 51 percent), South
of new supply over the next two to three years.
developers are taking to condotels is somewhat
Korea (39 percent) and Russia (28 percent).
These markets are developing at an impressive
concerning.
Thailand, the UK, US, Taiwan and Malaysia
double digit growth rate, and will no doubt
were also up by double digits.
overcome their case of ‘indigestion’, just as
However, we are still heavily reliant on only four key source markets: China accounts for 27 percent of all international arrivals, followed by South Korea (15 percent), Japan (7 percent)
Danang did a few years earlier, although owners may need to sober up their expectations.
There seems no let-up in sight. We see more and more projects announced, seemingly trying to outdo each other in terms of scale and outlandish guaranteed returns.
and the US (6 percent). And, if you’re interested in HCMC: international tourist arrivals to Ho Chi Minh City increased steadily from 3 million to 5.2 million with an average growth rate of 10 percent during 2010-2016.
Developers are quick to label projects as a condotel as soon as they are located in a tourism destination, but what worries us is the ‘tel’ part. In most cases we see very little regard for the hotel aspects and the management implications these entail in order to have any chance of meeting the promised returns.
In Q1/2017, the city welcomed approximately 1.6 million international tourists, up 15 percent compared to the same period last year and accounting for 49 percent of all international arrivals to Vietnam. 32 | iamhcmc.com/gazette
Still, when we look forward to 2017, there is plenty of optimism in the hospitality market. The rapid pace of development we’re seeing is likely to continue, and maybe even accelerate as domestic and international arrivals continue to grow rapidly.
EDUCATION ADVERTORIAL
#iAMHCMC
An Exciting Summer Ahead at AIS Summer School capable Vietnamese Support Teachers who help the teaching staff provide a caring and stimulating environment.
Multicultural Learning by Experienced Educators One of the great advantages of the AIS Summer School is that children come from many nationalities. This reflects AIS itself where over 40 nationalities attend the school. It always brings joy to the staff to see the way children from different countries build friendships with
Summer holidays are just around the corner. What are the best activities that stave off boredom and make the summer fun and productive? Australian International School has the answer.
With its wonderful state-of-the-art facilities and highly qualified staff, the programme will focus on the development of children’s English skills through weekly themes. History shows that those children who
For the last nine years, the Australian International School (AIS) has been answering the cry of parents with its English languagebased Summer Programme.
Now in its 10th year, the AIS Summer School has helped literally thousands of children improve their English language skills whilst also meeting new friends from around the world and learning other soft skills.
complete the programme become more confident with speaking, listening, reading and writing skills, no matter at what level they start. The classes begin at kindergarten through to Year 11.
Summer Programme will be spread over all three of their well-equipped campuses in District 2’s Thao Dien and Thu Thiem wards. Starting on 20 June and ending 21 July, kids will learn and play from 8:00 a.m. to 2:45 p.m. every weekday.
Days Filled with Fun
Many children love the AIS Summer School so much, they enrol to the school. If your child will be attending AIS, this program is a great way to get to know this fully accredited international school. This year Christina Zinetti, one of the AIS staff, will be the overall coordinator. Christina is a very experienced teacher and has coordinated
The Thao Dien campus will have classes for
other summer programmes in Europe. Ian
kindergarten to Year 6 students. These classes
Osberg will again be overseeing the Thao
will not only be challenging but great fun as
Dien campus and will ensure that the campus
well, with weekly excursions supplementing
is well-organised.
the classroom activities. The students will also have lessons focusing on Technology, Art/Craft/ Cooking and Drama/Music so they learn to apply their English in different situations.
This year, the Australian International School’s
each other.
AIS will also offer a play-based, engaging programme for kindergarten children at its outstandingly resourced Xi campus. Such is the popularity of the AIS Summer School that many of the teaching staff return year after year to support the children in their learning. All the teaching staff have university degrees from Western institutions as well as
The programme is great value for families offering several types of discounts for students, as well as free buses in some areas. AIS has always had a reputation, not just for being an outstanding school, but also for holding excellent summer schools. You and your children should take advantage and make this summer the best one yet! It looks like this year will be no exception, so it’s time to enrol the kids. Visit www.aisvietnam.com for further details.
extensive ESL training. They are a great bunch
The programme at the Thu Thiem campus will
who know how to challenge and engage
Enquiries: AIS.Admin@aisvietnam.com
cater to children who are not native English
children so learning becomes fun. Every class
Thu Thiem Campus: 264 Mai Chi Tho, D2 | +84 8 3742 4040
speakers and want to improve their English.
will also have one or two experienced and very
Xi Campus: 190 Nguyen Van Huong, D2 | +84 8 3519 2727
Thao Dien Campus: 36 Thao Dien Road, D2 | +84 8 3744 6960
33
#iAMHCMC
Education FEATURE
by Frank B. Edwards
FUV’s Unconventional Academic Leader After a career in international finance, Dam Bich Thuy leads Fulbright University Vietnam, the country’s first non-profit, liberal-arts university.
believes to be post-war Vietnam’s first privatelyowned company – a consultancy for European, Australian and American businesses exploring Vietnam’s economic landscape. After six years of talking business and finance informally, she headed to America in 1993 on a Fulbright
By her own admission, the founding president of
Scholarship that gave her an MBA and entry
Vietnam’s newest university is not an academic.
to the world of banking.
She did not attend a regular school until she
For 10 years she was based in Singapore,
was 11 years old. She has no doctorate and
negotiating infrastructure financing for dams,
has never taught a university course.
power plants, sewage systems and roads
In fact, her university’s main campus is
throughout Southeast Asia, China and India.
actually an empty field in District 9’s Saigon
When she returned to Vietnam in 2005, it was
Hi-Tech Park.
as general manager of ANZ’s Vietnam bank – the first time a Vietnamese had run a foreign
But that does not mean that Dam Bich Thuy
bank here.
lacks the qualifications to launch Fulbright University Vietnam (FUV). Her supporters include former US President Barack Obama and former Secretary of State John Kerry who dropped by last year to officially launch the university. Several weeks ago, the president of Harvard University visited Ms Thuy at the Fulbright Economics Teaching Program (FETP), the Harvard-funded public policy school (established 1994) that was recently transferred to FUV, complete with faculty and 120 graduate students.
A Passion for Learning Ms Thuy (she blushes when called President Thuy) claims to be the black sheep of her family. Her parents were scientists who hoped she would follow in their academic footsteps. Instead she studied English at the University of Hanoi in the early 1980s, a time when Russian and French were vastly more popular languages. In the anti-American, post-war era, English resources were particularly scarce and Ms Thuy laughs as she describes the English textbooks that were written by Russians.
“Just imagine how the Russians used English in a sentence,” she says. 34 | iamhcmc.com/gazette
Being born in 1961 Hanoi, Ms Thuy had to deal with adversity early. At age three she was sent to live in rural evacuation centres with only weekly visits from her parents for the next eight years. She did her lessons at night by oil lamp. At age 11, she watched the intense Christmas air attacks on Hanoi from the relative safety
After leaving the banking sector, Ms Thuy was elected FUV’s president after the institution had finally received its licence from the government in 2015.
Strengthening Vietnam’s Future
of the countryside and innocently assumed the bombs were fireworks. She says those experiences made her an optimist.
While Ms Thuy’s business connections serve her fundraising efforts well, her academic vision seems anchored in the time when she
“It was a difficult time,” she says, but adds
stubbornly chose to study what was in her
that those years taught her how to survive.
heart rather than what was being prescribed
“[We learned] that tomorrow will be better
for her. She dreams of creating a community
than today because you must live with hope
where students learn as much from one another
during war.”
as from their professors and books.
At university, her real language education took place under bed covers, secretly listening to Voice of America broadcasts, an illegal act. “I would listen and repeat,” she explains. Her persistence paid off several years later when Vietnam opened its doors to English-speaking foreigners.
FUV’s first undergraduate class of 100 students won’t arrive until 2018 but Ms Thuy already has a vision of it as a strong, independent university. “Independent in designing a curriculum, in setting admission standards, in recruiting faculty, in our governing system,” she explains passionately. “We believe that we can build and train the graduate to become not only a global citizen but a true Vietnamese, one who
After a short stint in the government patent
understands the country, the opportunities and
office, Ms Thuy joined friends to start what she
the challenges.”
ISHCMC Advert - #IAMHCMC Directory - 230mm x 320mm.pdf
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06/03/2017
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#iAMHCMC
HEALTH ADVERTORIAL
Passion Turned into Success procedure instantly bring joy to clients across
This has been not only a great source of pride for
the world. This pushes me to dedicate more time
me personally, but also a significant motivator
to my craft. In my opinion, dental implants truly
as I could see that my passion and dedication in
are an artform of their own that can rejuvenate
the field had gained international recognition.
anyone’s smile.
An International Education
In collaborative ProArch/All-on-Four research with Professor Michel Dard from New York University, I am close to publishing a scientific essay about my studies on the All-on-Four
Dedicated to innovation and dentistry, I have
implant process.
worked to stay one step ahead by embracing the industry’s most modern techniques.
Elite Dental Vietnam offers a comprehensive range of services for locals and expats. In April 2017, Elite opened a second facility in District 3, home to one of Vietnam’s most advanced digital dentistry departments. Here its principal dentist, PhD Dr. Tan Hung Lam, fluent in French and English, shares his personal journey.
Life and Goals When I was a boy, my grandmother had removable dentures. As I grew up, I always noticed how she struggled with eating and had to cover her mouth when she laughed. These lasting impressions sparked my interest in dentistry, which led me down the path of stem cell tissue research.
I had an idea, that maybe, just maybe, I could figure out how to grow teeth back. And although scientists have not reached this milestone yet, much research is currently underway. Meanwhile, when I first discovered the existence of implants, I strove to learn everything I could about them, and it became the primary focus of my work. I am passionate about dental implants and I really hope to use this method throughout Vietnam and, further, across the globe. A confident smile can change a person’s life, and I’ve been lucky enough to have seen this 36 | iamhcmc.com/gazette
My education in the field has been a unique journey that has taken me around the world while treating thousands of people, as well as providing me with a warm sense of accomplishment which serves as continual inspiration to continue my work. My passion for education has always been tremendous. I received my D.D.S (Doctor of Dental Surgery), and graduated at the top of my class at the Ho Chi Minh City University of Medicine and Pharmaceuticals. Soon after, a desire for further specialised training brought me to France where I received a PhD for dental implants and restoration. When I finished this course, I was delighted to add a Diploma of International Congress of Oral Implantology (ICOI) to my wall, as well as a DU, or Diplôme
Out in the World Already enjoying a happy life with a lasting and fruitful career, I have also been the recipient of numerous, exciting awards from the international dental community. In 2011, I came first in a research-based tissue engineering competition held the by the International Association of Dental Research (IADR) in Singapore. That was quite a productive year, as I also attended and presented an analysis based on clinical implant cases at Hamburg, Germany’s ICOI Conference.
Over the years, I’m proud to say that I have been a renegade of dentistry in Vietnam, and have not been shy in sharing my knowledge with others.
Universitaire, in Prosthodontics. 57 Tran Quoc Thao, D3 (Orthodontic and Aesthetic Dentistry
In 2015, I was made a fellow by nomination of
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the International Team for Implantology (ITI).
inquiry@elitedental.com.vn | elitedental.com.vn
Dentistry Center) | +84 8 3933 3737 | info@elitedental.com.vn
HEALTH ADVERTORIAL
Victoria Healthcare
#iAMHCMC
strives to educate their patients on how to live well and be healthy. “This might not be good in a short-term business sense,” Dr. Cobb joked, “but if you’re healthy, you’ll stick around longer.”
Continuing Education To make sure all doctors and nurses stay current on medical research and technology, Dr. Tuong and Dr. Cobb have implemented weekly clinical updates. For doctors, there is the Continuing Medical Education (CME) which is conducted in English. Each physician must deeply research a topic in their specialty and present it to the rest of the medical staff. The question-and-answer sessions are robust and highly interactive. Technology is also harnessed to facilitate lively clinical discussions amongst doctors across all four care sites.
For 11 years, Victoria Healthcare has been leading Ho Chi Minh’s medical community by example. The secrets to its success? Engagement, exploration, empathy and education.
This zest for learning is infectious, and the founders proudly report that every member of their staff enthusiastically wants to be part of the team as well as be the best that they can be.
It’s often said that a great oak grows from
gastroenterology at the National University
a small acorn. Victoria Healthcare is surely
Hospital in Singapore and the Mayo Clinic in
proof of this.
Arizona. While in the US, Dr. Tuong visited his
For Dr. Mason Cobb, one of Victoria’s founders, the oak is everywhere he looks. “I started in Vietnam with Dr. Tuong 20 years ago. Our project was revolutionary for the time and Saigon was just opening its eager eyes to a
friend in the Pacific Northwest and together they were excited to open another clinic in Vietnam together – this time on their own terms.
A Working Philosophy
bigger world. Now when I look out the window
Continued Engagement It’s clear that Dr. Cobb and Dr. Tuong have found a recipe for success. Since opening their first clinic in 2005 on Dien Bien Phu, three more have sprung up. However, Dr. Tuong doesn’t want to grow too quickly. “We open clinics very strategically,” he says. “We really want
I see all the high-rises, I know this is a world-class
For Dr. Cobb, high-quality healthcare is a
to make sure we’re providing exactly what the
city. I know how far from home I really am,”
layered concept. The first layer? Safety. “We
customers want and need in exactly the right
he reminisced. For Dr. Cobb, home was a small
want to make sure, of course, that nobody gets
place. After a few years, if the clinic does well,
farm in rural Michigan.
hurt or sicker while receiving care,” he said,
we open another one, always incorporating
listing the international levels of sterility and
lessons learned.”
Victoria Healthcare’s co-founder is Dr. Nguyen Vinh Tuong. Raised in Saigon, he came from a family of doctors and nurses; it made sense for him to carry on this tradition. He remembered
cleanliness that are practised at all clinics, the newest one having just opened in late April of this year.
Victoria Healthcare just celebrated the grand opening of its newest clinic. This nine-storey palace of health on Dinh Tien Hoang in District 1
his early days of selling medicine directly to
The second layer is “doing the best thing for
is a sight to behold. Features include two
doctors, before pharmacies were established
the patient, even if it’s not the best business
very child- and family-friendly floors devoted
and regulated. Once he began studying at the
decision: ‘Patients first’ – even before business”.
entirely to pediatrics, a 128-slice CT Scanner
Ho Chi Minh City Medicine and Pharmacy
Rather than run tests that cost a lot but prove
and an outpatient minor surgical ward.
University, he could tell his professor the price
little, Dr. Cobb and Dr. Tuong have worked to
per dose of everything on the market. “They
help people medically, not hurt them financially.
were stunned. They didn’t know how I knew
This mission is embedded in every Victoria
that!” he laughed.
doctor as a basic ethical responsibility.
Their current partnership was born a few years
The last layer, while the most important, is also
later. Dr. Cobb had gone back to pediatric
characteristically unconventional: “Respect. We
surgery in Washington, while Dr. Tuong
respect the patient.” Rather than wait for an
Clinic 2: 135A Nguyen Van Troi, Phu Nhuan D
continued to pursue his interests in
illness to bring a patient to their doors, Victoria
Clinic 4: 20-20Bis -22 Dinh Tien Hoang, D1
I asked what they could expand in the future. Dr. Tuong smiled. “Maybe a hospital in two or three years.” That would be the oak forest.
victoriavn.com | info@victoriavn.com | + 84 8 3910 4545 Clinic 1: 79 Dien Bien Phu, D1 Clinic 3: Broadway D, 152 Nguyen Luong Bang, D7
37
#iAMHCMC
Travel ADVERTORIAL
EVA Air: Fly to Canada in Style
Feel at Home Say, a Vietnamese mother and father are visiting their children who study in Toronto. What do they need most to feel at ease during their flight? Vietnamese flight attendants to navigate them through their journey.
EVA Air has a large number of Vietnamese crew members for an international airline. You can be sure to have at least one of them on all long-haul trips to North America. Especially elderly people appreciate that, as they do not always speak English. Unit 401-404, Saigon Riverside Office Center, 2A-4A Ton Duc Thang, D1 | Reservation Hotline: +84 8 3822 4488 | evaair.com
Canada is ranked third among the top travel destinations for Vietnamese. How to go from Ho Chi Minh City to Vancouver or Toronto? EVA Air has the answer.
Five-Star Service at Reasonable Prices Well, how about this: EVA Air is a 5-star airline. All right, 5-star is a widely overused term, but
Vietnamese Canadians form one of the largest
for airline quality standards, does not use this
non-European ethnic groups in Canada – an
label lightly. These flying experts know what
impressive 220,000 have made this northern
makes an air trip great, and they awarded only
country their home, and that number is
nine airlines in the world with the top rating.
growing. Many of them were among the famous the country after the fall of Saigon in 1975. Sixty thousand Vietnamese resettled in Canada by the late ‘70s. As for so many other immigrants, Canadian Vietnamese are drawn to the country’s urban centres – most notably Vancouver, home to Vietnam’s Consulate General, and Toronto, which has the highest concentration of Vietnamese in all of Canada.
Service? On-board technology? Entertainment options? Comfort? Safety? All top-of-the-range. EVA Air’s high-end fleet includes Boeing 777300ERs, perfect for spoiling you with the best
its service maintains the highest safety and how to make you feel like at home when you fly with EVA Air. The staff will gladly assist with any issue you might possibly have. As most of the passengers between Vietnam and North America are Vietnamese, this is key to a convenient flight experience. With the Vietnamese community growing in Canada, EVA Air smartly caters to an increasing need of comfortable and fast, yet affordable flights to the country’s key destinations – features that also attract Western expatriates who wish to visit their home country and, certainly not least, tourists.
Canada, the Asian Dream
Wi-Fi quality during a cross-Pacific flight. Thanks to a short layover time of only two to two-and-a-half hours at Taiwan Taoyuan
And where there’s family, Vietnamese want to visit. All the more if relatives have moved to North America, a region many Vietnamese still consider to be the land of milk and honey.
training for all its crew staff, making sure behavioural standards. The cabin crew know
Skytrax, the definitive international benchmark
“boat people” from South Vietnam who fled
EVA Air has set up a three-month ground
International Airport in Taipei, EVA Air minimises the overall flight from Ho Chi Minh City to Vancouver to a convenient 17.5 hours. A trip to Toronto takes a little more: 20 hours.
Southeast Asians love Canada for many things their home countries don’t have: polar bears, for instance. It is truly cosmopolitan, space is vast, traffic is safe, healthcare is a public good, and it is cold – freezing cold – hence there’s snow! The unequalled natural delights of a country which is home to a population that counts less than half of Vietnam’s, while its territory is the second-largest of the world, makes for a travel
Starting 16 June 2017, the Taiwanese airline EVA
destination that is a change to ever-so-dense
Air is catering to this need, adding two extra
Ho Chi Minh City.
flights per week to its Toronto-Ho Chi Minh City route; additionally, the airline will increase flights between Vancouver and Ho Chi Minh City to once a day. But why fly with EVA Air? 38 | iamhcmc.com/gazette
The Rocky Mountains. The Niagara Falls. Do we have to say more?
You are a talented Vietnamese english writer/ journalist and natural storyteller. You will conduct regular research and interviews to enrich our content for CityPassGuide.com and #iAMHCMC. You will mostly write in English and conduct the necessary translations to ensure we have the best and most updated content available. You’ll work under the supervision of our Content Managers and in correlation with our marketing team to craft quality, SEOfriendly content. For external clients, you will c o n d u c t interviews and research to understand our clients’ offerings and standards t o assess content opportunities, make recommendations, develop and execute concepts that meet our clients’ goals and deliver copy in line with each brand identity. Included responsibilities are (but not limited to): Develop original, high-quality articles that combine qualitative insights with quantitative data. Follow C i t y P a s s G u i d e . c o m’s editorial calendar and generate relevant content. Edit existing content for cre dibi lit y, relevancy and accuracy. Adhere to our content production department’s style guide, processes, procedures & guidelines. Expand our existing content by adding new information a n d transforming it into the ultimate source for the given subject. Apply SEO knowledge and appropriate keyword research to enrich CityPassGuide.com’s content to meet the latest on-page recommendations. Collaborate with internal teams to develop multimedia elements (pictures, charts, videos, infographics and more) to enrich your content. Review national daily news and select / translate appropriate articles for our news feed.Create meaningful content for third party clients when needed. Other duties assigned by management. About You: You are someone who loves travel and Vietnam. You are curious about the way the internet is changing people’s lives, the travel industry and the way we connect with companies through our devices. You develop original perspectives with wit and clarity, arming yourself with statistics and technical data to build a strong argument. You also have a knack for simplifying complex ideas into accessible terms, and can articulate your opinions with ease to a senior-level audience. Requirements: Eager to learn more
digital
c o n t e n t Citypassguide.com and medium organisations grow their Vietnam’s leading brands choosing Innovo JSC as return. Our team is a bunch (20) of marketing strategies and campaigns that
better than anyone else at a key their target demographics. With information provider for travellers market as well. Our well-established English speaking Vietnamese provider for premium travellers and com and #iAMHCMC aims to be them well and to continuously tested and proven.Passion: we want interviews to enrich our content
marketing strategies. Bachelor/Master degree in multimedia and/or journalism prefered. Three+ experience as an author and journalist in English.Experience in the tourism sector and/or newsfields. Natural storytelling skills that inject emotion into any topic, however complex. 26 - 35 years English skills, both written and spoken. Positive and energetic; you have excellent social skills. Good a n d Vietnam: you must love this city and country. Ability to brainstorm, research, produce and promote G o o d understanding of digital distribution is a plus. COMPANY PROFILE Innovo JSC is the mother #iAMHCMC brands and a small integrated digital marketing and media agency that helps some small to a m p l i f y i n g their online and offline presence. We specialise in the travel and F&B industry sectors and we work with partner. Innovo JSC’s hedgehog concept is to be the most credible local content provider, and to ensure a targeted reach through our premium t a l e n t e d professionals with over 60 years of combined experience led by a management team with hands-on experience. Innovo JSC objectives and maximise return on investment. www.innovo.vn City Pass Guide is Vietnam’s leading guidebook publisher, we understand
related Excellent H C M C r api d ly. business via their marketing multicultural, achieve their
moment in the our competitive and residents based #iAMHCMC Gazette and expatriates in #iAMHCMC does inspiring Vietnamese add value to their to develop insightful for CityPassGuide.
and fun com and
about years o l d . knowledge of high-quality company of many of channels for a high delivers stand-out the market needs
t r ans for m at i on of Vietnam’s travel industry.Our experience allows us to develop complete solutions for key players looking to effectively reach pricing and the strong performance of our packages, there are no comparable competitors in the marketplace. We are already Vietnam’s leading in Vietnam. Our travel guides are available in print and online format. The HCMC Resident guidebook and the launched series of City Pass destination maps for Hanoi and Saigon lead the is widely recognised for the quality of its concept, content and design. Our effective email marketing campaigns and large database is currently leading the market to reach middle-class to high-end HCMC. All this to be an essential resource of credible information for residents, expats and travellers from all over the world. www.citypassguide.com MISSION STATEMENT Citypassguide.com strives to be Vietnam’s most credible information the same for Saigon’s residents. We take the best elements from East and West and we develop sincere, transparent and sustainable relationships. Valuing teamwork, attention to detail, honesty, courtesy, creativity and innovation, Citypassguide. brands with worldwide recognition for the quality of its integrated marketing products and services. CORE VALUES Credible: our information is comprehensive, practical, valid, timely and as objective as possible.Customer focus: we aim to serve businesses.Innovation: our goal is to constantly reinvent ourselves and the way we work.Leadership: our cutting-edge creative solutions combine quality, design and flair.Qualitative: our mission is to deliver effective solutions that are content for our audiences.Transparent: our communication is open, honest, courteous and transparent.••• You are a talented Vietnamese english writer/journalist and natural storyteller. You will conduct regular research and #iAMHCMC. You will mostly write in English and conduct the necessary translations to ensure we have the best and most updated content available. You’ll work under the supervision of our Content Managers
and in correlation with our marketing team to craft quality, SEO-friendly content. For external clients, you will conduct interviews and research to understand our clients’ offerings and standards to assess content opportunities, make recommendations, develop and execute concepts that meet our clients’ goals and deliver copy in line with each brand identity. Included responsibilities are (but not limited to): Develop original, high-quality articles that combine qualitative insights with quantitative data. Follow CityPassGuide.com’s editorial calendar and generate relevant content.Edit existing content for credibility, relevancy and accuracy. Adhere to our content production department’s style guide, processes, procedures & guidelines. our existing content by adding new information and transforming it into the ultimate source for the given subject. Apply SEO knowledge and appropriate keyword research to enrich CityPassGuide.com’s content to meet the latest on-
recommendations. Collaborate with internal teams to develop multimedia elements (pictures, charts, videos, infographics and more) to enrich your content. Review national daily news and select / translate appropriate articles for our eaningful content for third party clients when needed. Other duties assigned by management. About You: You are someone who loves travel and Vietnam. You are curious about the way the internet is changing people’s lives, the travel industry th companies through our devices. You develop original perspectives with wit and clarity, arming yourself with statistics and technical data to build a strong argument. You also have a knack for simplifying complex ideas into accessible opinions with ease to a senior-level audience. Requirements: Eager to learn more about digital marketing strategies. Bachelor/Master degree in multimedia and/or journalism prefered.Three+ years experience as an author and journalist ourism sector and/or news-related fields. Natural storytelling skills that inject emotion into any topic, however complex. 26-35 years old. ou have excellent social skills. Good knowledge of HCMC and Vietnam: Ability to brainstorm, research, produce and promote high-quality content rapidly. Good igital distribution is a plus. COMPANY PROFILE Innovo JSC is the mother company of Citypassguide.com and #iAMHCMC brands and a small integrated digital marketing and media agency that helps some small to medium via amplifying their online and offline presence. We specialise in the travel and F&B industry sectors and we work with many of Vietnam’s leading brands choosing Innovo JSC as their marketing partner. Innovo JSC’s hedgehog ocal content provider, and to ensure a targeted reach through our premium channels for a high return. Our team is a bunch (20) of multicultural, talented professionals with over 60 years of combined experience led by a erience. Innovo JSC delivers stand-out marketing strategies and campaigns that achieve their objectives and maximise return on investment.
Excellent English skills, both written and spoken. Positive you must love this city and country. City Pass Guide is Vietnam’s leading guidebook
he market needs better than anyone else at a key moment in the transformation of Vietnam’s travel industry. Our experience allows us to develop complete solutions for key players looking to demographics. With our competitive pricing and the strong performance of our packages, there are no comparable competitors in the marketplace. We are already Vietnam’s leading information nts based in Vietnam. Our travel guides are available in print and online format. The HCMC Resident guidebook and the launched series of City Pass destination maps for Hanoi and shed #iAMHCMC Gazette is widely recognised for the quality of its concept, content and design. Our effective email marketing campaigns and large database is currently leading the market to eaking Vietnamese and expatriates in HCMC. All this to be an essential resource of credible information for residents, expats and travellers from all over the world. ION STATEMENT Citypassguide.com strives to be Vietnam’s most credible information provider for premium travellers and #iAMHCMC does the same for Saigon’s residents. We take the rom East and West and we develop sincere, transparent and sustainable relationships. Valuing teamwork, attention to detail, honesty, courtesy, creativity and
n, Citypassguide.com and #iAMHCMC aims to be inspiring Vietnamese brands with worldwide recognition for the quality of its integrated g products and services. CORE VALUES Credible: our information is comprehensive, practical, valid, timely and as objective as . Customer focus: we aim to serve them well and to continuously add value to their businesses. Innovation: our goal is to ntly reinvent ourselves and the way we work. Leadership: our cutting-edge creative solutions combine quality, design and Qualitative: our mission is to deliver effective solutions that are tested and proven. Passion: we want to develop ightful and fun content for our audiences. Transparent: our communication is open, honest, courteous and transparent. You are a talented Vietnamese english writer/journalist and natural storyteller. You will conduct regular research and interviews to enrich our content for CityPassGuide.com and #iAMHCMC. You will
mostly write in English and conduct the necessary translations to ensure we have the
best and most updated content available. You’ll work under the supervision of our Content Managers and in correlation with our marketing team to craft quality, SEO-friendly content. For external clients, you will conduct interviews and research to understand our clients’ offerings and standards to assess content opportunities, make recommendations, develop and execute concepts that meet our clients’ goals and deliver copy in line with each brand identity. Included responsibilities are (but not limited
to): Develop original, high-quality articles that combine qualitative insights with quantitative data. Follow CityPassGuide.com’s editorial calendar and generate relevant content. Edit existing content for credibility, relevancy and accuracy. Adhere to our content production department’s style guide, processes, procedures & guidelines. Expand our existing content by adding new information and transforming it into the ultimate source for the g i v e n subject.
You are
Send your CV & a letter of motivation in English to hr@innovo.vn
Expand
p a g e and the terms, and in English.
a n d org an i s at i ons concept is to be management team
publisher,
effectively reach provider for travellers Saigon lead the mar reach middle-class to hig www.citypassguide. best