MARKET SNAPSHOT May - 2019
Overview | Policy | Infrastructure | Corporate Updates | New Property supply | Other projects
Overview
This month saw two important pieces of news related to regulations of condotel, officetel and resort villa and solution for state-owned house selling. Moreover, the event of Vam Cong Bridge launching and approval of several vital highway plans are the infrastructure highlights in May. The cooperation between Viettel and Saigontel in smart industrial park model, SK group becoming strategic partner of Vingroup and the withdrawal of Auchan Group are some noticeable news in our Corporate update section.
Policy Solving the problem of selling state-owned houses It is very important to determine the time of using old state-owned houses because home buyers will be buying houses with different price mechanisms based on the time of house using. However, the Decree No. 34/2013 of the Government stipulating the sale of state-owned houses has not issued the criteria to determine the time of using yet, thus many trades have been waiting for approval. The Government has recently issued Decree No. 30/2019 / ND-CP about amending and supplementing the articles of the Decree No. 99/2015 / ND-CP in October 20, 2015, detailing and guiding the examination of a number of articles of the Housing Law. Specifically, the time of using old state-owned houses is instructed to be determined.
Laws on regulating condotel and officetel are expected to complete in the third quarter of 2019 The Prime Minister has already issued a directive on the solutions for promoting the stable and healthy real estate market (Directive No. 11 / CT-TTg dated April 23, 2019). The contents of Directive are related to: developing national housing, recollecting project’s land undeveloped and laws on regulating condotel, officetel and resort villa, … In particular, the Prime Minister asked ministries to issue documents on condotel, officetel and resort villas as follows: 1. The Ministry of Construction issues amendments and supplements on construction standards and standards for apartment, condotel, resort villas, officetel; issues regulations on managing officetel as well, which are to be completed in the third quarter of 2019. 2. The Ministry of Natural Resources and Environment issues specific guidelines on land use regime for new types of real estate (condotel, resort villas, officetel ...) in accordance with the current Vietnamese law, which are to be completed in the third quarter of 2019. 3. Ministry of Culture - Sports and Tourism issued regulations on managing and operating condotel, resort villas, officetel in accordance with the tourism law and related laws, which are to be completed in the third quarter of 2019.
MARKET SNAPSHOT | May 2019
Infrastructure
Up to 25,000 billion VND for Bien Hoa - Vung Tau highway implementation
Launching Vam Cong Bridge connecting Dong Thap – Can Tho
The report of the Department of Transportation said that
2.97 km long, the path to the bridge is 5.88 km long road
Bien Hoa - Vung Tau highway is about 75km long, invested with about VND 25,000 billion and divided into 2 phases of implementation. The first phase is Bien Hoa - Phu My - Cai Mep highway with total length of 47km, the total investment is expected to be about VND 15,000 billion; Phase 2 is constructed from Phu My to Vung Tau with a length of 28km, has a total investment of about VND 10,000 billion.
Hoa Binh - Moc Chau Highway with more than VND 22.000 billion is approved The investment plan of Hoa Binh - Moc Chau highway was approved by the Prime Minister with a total capital of over VND 22,000 billion. The total length of the road is about 85km including Da Bac and Hoa Binh city - 49 km long and Van Ho - Moc Chau districts (Son La) - 36km long. The project is invested and built in the form of public-private partnerships (PPP).
The project includes Vam Cong bridge crossing Hau river with (from Lap Vo district (Dong Thap) to Thot Not district (Can Tho city)). Vam Cong bridge crosses Hau river connecting Lap Vo district (Dong Thap province) and Thot Not district (Can Tho city). The construction was started on September 10th, 2013. The total investment was announced at the start of construction of over 271 million USD (nearly 5,700 billion VND) with Korean ODA and reciprocal capital of the Government of Vietnam.
Dau Giay - Lien Khuong highway officially starts in 2019 with a capital of VND 65,000 billion The project has total length of more than 200 km, starting at Dau Giay node, Thong Nhat district, Dong Nai province and ending at the foot of Prenn pass, Da Lat city, Lam Dong province, has been formally approved by the Ministry of Transport. The project is separated into 3 stages of investment and construction: Dau Giay - Tan Phu; Tan Phu - Bao Loc and Bao Loc - Lien Khuong.
Corporate Updates SK Group (Korea) becomes strategic partner of Vingroup On May 16, 2019, Vingroup and SK Group (Korea) formally signed a strategic cooperation agreement. SK Group will invest about VND 23,300 billion (US $ 1 billion) to buy shares of Vingroup and will become a strategic partner of the Group. Recently, on Tuesday, May 22nd, 2019, over VND 5.8 trillion ($247.78 million) of Vingroup shares were bought by foreign buyers, which are traded on Ho Chi Minh stock exchange. These shares are believed to be bought by SK Group but there no official claim for this.
Vinhomes appoints new general director Vinhomes JSC has appointed senior Vingroup executive Pham Thieu Hoa as its new general director replacing Luu Thi Anh Xuan. Since the beginning of this year, Vinhomes had made many changes to its senior personnel. Late February saw Pham Nhat Vuong, the founder of Vingroup, step down as Vinhomes chairman. He was replaced by Nguyen Dieu Linh, who has been vice chairwoman of Vingroup since 2011.
MARKET SNAPSHOT | May 2019 Auchan -French retail group withdraws from Vietnam Auchan - France’s leading retail and supermarket chain will have to leave Vietnam market in the near future, after nearly 5 years of operation. According to Mr. Edgar Bonte - CEO Auchan Retail, 18 stores in Vietnam of this group will be sold in the near future. Last year, their sales in Vietnam reached 45 million euros (50.4 million USD) but the balance was still reported losses.
The cooperation between Viettel and Saigontel to develop a smart industrial park model On May 15, 2019, Viettel group and Saigontel represented Saigon Invest Group (SGI) signed cooperation on construction of industrial parks and smart urban areas, in order to promote the transformation and development of a digital era in enterprises.
Viettel Group is the leading telecommunication and information technology corporation in Vietnam, with extensive experience in deploying and developing information technology (IT) infrastructure in many areas. Viettel will provide telecommunication services, IT solutions, applications and services to Saigontel’s staff, employees and businesses in the entire system of industrial parks and urban areas of Saigontel.
Saigontel is known as an infrastructure developer for industrial zone (IZ) in Vietnam, with the support of Saigon Invest Group (SGI) - the Private Group is leading in attracting FDI and owning the large number of industrial property in Vietnam. Saigontel is responsible for infrastructure investment, telecommunications and IT services deployment in industrial parks with a huge number of customers such as LG, Canon, Foxconn, Samsung ...
New launch of DKRV Da Nang After DKRV Nha Trang branch, in May 11th, 2019, Danh Khoi Viet Real Estate Service Joint Stock Company (DKRV) held the opening ceremony of the next branch - DKRV Da Nang at 584 2/9 street, Hoa Cuong Nam ward, Hai Chau district, Da Nang. This is an important turning point marking the new development of Viet Khoi Danh (DKRV) of Real Estate market in the Central region.
New property supply
Some significant projects launched in May, 2019
The Zei is launched in May 18th, 2019 Address
: Le Duc Tho street, Nam Tu Liem, Ha Noi
Sale Information Expected Price Expected completion Expected Price Expectd completion
Palm Garden is launched in May 19th, 2019 Address : Song Hanh street, An Phu ward, district 2 Sale Information : Block G2, including 180 apartment units and 19 shophouse dwellings Expected Price : USD 2,400/meters (excl VAT) Expected completion : Q2/2022
: 891 apartment units : USD 1,700/meters (excl VAT) : Q1/2021 : USD 2,000/meters (excl VAT) : Q4/2020
Oyster Gành Hào located at 82 Tran Phu street, Ward 5, Vung Tau city is launched in May 19th, 2019 Address Sale Information Expected Price Expected completion
: Tran Phu street, Ward 5, Vung Tau city : 277 condotel units : USD 2,000/meters (excl VAT) : Q4/2020
MARKET SNAPSHOT | May 2019
Other projects
The first indoor water park of Vietnam, 500 meters of food street and 2,000 meters of walking street will be launched in Phan Thiet at Mui Ne Summerland Resort complex in this May The project is developed by Hung Loc Phat Corp. The indoor water park having a scale of 12,000 meters. The company plans to develop a combination of indoor water parks with fully integrating sensory games, artificial sea in the home, surfing waves area, oasis gardens, tropical forests ... Moreover, when tourists walk in the 2,000 meters walking street, they can enjoy hundreds of restaurants in food street. This project is expected to attract a large number of visitors to come Phan Thiet for experiencing.
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The Government is preparing to issue regulations on managing, operating and guidelines on land use regime for new types of real estate (condotel, resort villas, officetel ...) in the third quarter of 2019. The new laws on regulating condotel, officetel and resort villa will likely increase the sustainable development for Vietnamese real estate market. This is ultimately expected to promote investors to enter into the rebounding tourism property market. In May, the new amendment in detailing and guiding some articles of the Housing Law, which clarify the time of using old state-owned houses, may offer greater facilities for selling state-owned house. The launching of Vam Cong Bridge connecting Dong Thap and Can Tho improves connectivity in the central areas of the Mekong Delta region, which makes the travel of people living along the two sides of Hau river easier and promotes socio-economic development in the Mekong Delta. The approvals of government for Bien Hoa - Vung Tau highway, Hoa Binh - Moc Chau Highway and Dau Giay - Lien Khuong highway plan are expected to enhance the economy performance of these regions.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made, the accuracy of the whole or any part can not be guaranteed, represented and taken responsibility. Readers are encouraged to consult their professional advisors before acting on any of the materials contained in this report.