H1 2022 in Review
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6.6%
y -o-y
Average Grade A rents increased in H1 2022
4.8%
y -o-y
Average Grade A CBD rents increased in H1 2022
3.3%
y -o-y
Average Grade B rents increased in H1 2022
5.8%
y -o-y
Average Grade A rents increased in H1 2022
3.3%
y -o-y
Average Grade A CBD rents increased in H1 2022
2.6%
y -o-y
Average Grade B rents increased in H1 2022
6%
9%
18%
13%
37%
40%
28%
50%
VIETNAM OFFICE MARKET
Retail Market
H1 2022 in Review
VIETNAM RETAIL MARKET
Customers are Returning to In-Store Shopping
HANOI
HO CHI MINH CITY
VIETNAM RETAIL MARKET
VIETNAM RETAIL MARKET
APAC and Vietnam In-Store Sales
Vietnam In-Store Sales By Category
12%
Sales Growth (%)
8% 4% 0% 2017
2018
2019
2020
2021 2022F
-4%
Sales Growth, Y-o-Y (%)
30% 20% 10% 0% 2017
2018
2019
2020
2021
-10% -20%
-8% Asia Pacific In-Store Retailing Vietnam In-Store Retailing
Apparel and Footwear Specialist Retailers Electronics and Appliance Specialist Retailers Health and Beauty Specialist Retailers Home and Garden Specialist Retailers Leisure and Personal Goods Specialist Retailers
2022F
VIETNAM RETAIL MARKET
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VIETNAM RETAIL MARKET
Retail, Market Performance, H1 2022
VIETNAM RETAIL MARKET
VIETNAM RETAIL MARKET
Market Performance in the next 3 years, HCMC 250
30%
200
24%
200
24%
150
18%
150
18%
100
12%
100
12%
50
6%
50
6%
0
0% 2019
2020
2021
2022F 2023F 2024F
Asking Rent - CBD
Asking Rent - Non-CBD
Asking Rent (US$/sqm/month)
30%
Vacancy Rate (%)
250
-
0% 2019
2020
Vacancy Rate - CBD
2021 2022F 2023F 2024F
Vacancy Rate - Non-CBD
Vacancy Rate (%)
Market Performance in the next 3 years, Hanoi
Asking Rent (US$/sqm/month)
Market Outlook
VIETNAM RETAIL MARKET
VIETNAM RETAIL MARKET
VIETNAM RETAIL MARKET
Market Outlook
VIETNAM RETAIL MARKET
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Industrial Market
VIETNAM INDUSTRIAL MARKET
35
H1 2022 in Review
Ongoing Supply Chain Disruption Globally
Industrial Leasing Momentum Picked up in Vietnam
10%
7%
H1 22: 9.4 ha H1 22: 6,700 sqm 2021: 9.2 ha
2021: 6,100 sqm
2019: 7.1 ha
2019: 3,700 sqm
Active Construction Activity Across Asset Types in H1 2022
Ongoing Infrastructure Improvements in Northern Region
Ring Road No. 3 to Enhance Competitiveness for the Southern Region
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Tier 1 Markets Recorded Positive Occupancy Rates
Northern Region, Industrial land
Southern Region, Industrial land
Supply and Occupancy Rates
Supply and Occupancy Rates
Asking Rents, Industrial Land, H1 2022
Industrial Land Prices are Reaching New Highs; Warehouse and RBF’s Rents are Stabilizing
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Asking Rents, RBW & RBF, H1 2022 ▲
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CBRE’s Number of Enquiries H1 2022
Strong Demand from Logistics Sector and EU’s Manufacturers
Strong Demand from Automotive and Electronics Sectors to Drive Healthy Occupancy of Industrial Parks in the North
Strong RBW and RBF Pipeline Over The Next Three Years Accumulated Supply, RBF & RBW, 2019 – 2024F, Southern Region
87% of new supply in 2022 – 2024F from Hai Phong and Bac Ninh
About 60% of new supply in 2022-2024F from Binh Duong
Sqm
Accumulated Supply, RBF & RBW, 2019 – 2024F, Northern Region
5,000,000
100%
4,000,000
80%
3,000,000
60%
2,000,000
40%
1,000,000
20%
-
0% 2019
2020
2021 2022F 2023F 2024F
RBW Average Occupancy-RBW
RBF Average Occupancy-RBF
…Supported by Healthy Logistics Demand
Occupiers’ plans for warehouse portfolios in the next 3 years 23%
Grow by more than 10%
52% 50%
Grow by less than 10%
26% 20%
Remain the same
20% 7%
Shrink by less than 10%
Shrink by more than 10%
0%
Europe
APAC
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ƯỜ
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Southern Vietnam, Industrial Land
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Land area (ha)
Industrial Land Prices to Remain at a High Level, albeit Facing more Competition
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4,000
200
3,000
150
2,000
100
1,000
50
-
2019 2020 2021 2022F2023F2024F
USD/sqm/remaining lease term
Northern Region, Industrial Land
Global Minimum Tax to Change Vietnam’s Strategy to Attract FDI
E-commerce penetration by market 2021 vs. 2026F
Market Outlook
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Residential Market
H1 2022 in Review
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Notable Future Supply in H2 2022
CHANGES IN REGULATIONS
LICENSING ISSUES
MISMATCH OF SUPPLY AND DEMAND
VIETNAM RETAIL MARKET
Conclusion: Action Items for Developers and Buyers
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For more information regarding this presentation please contact: CBRE Vietnam Co., Ltd. – Research & Consulting T: +84 28 3824 6125 | +84 24 6288 6379 E: research.vietnam@cbre.com
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