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Tony Milton MRICS

BSc (Hons) Est Man
MRICS
APREA (CREIF)

Fast Facts

Date : Monday, 01 November 2010
Category : Yields




CONTACT US TO OBTAIN A FULL BACK – CATALOGUE


But first, a few words about “Property Risk Premium” : - Whether by academic teaching or human nature, investors seem predisposed to expect higher returns, on an absolute and a risk-adjusted basis from international investments than from investments in their own country. A valid question to ask, however, is whether or not the foreign risk premium is a myth or a reality. Conceptually, there is a problem with expecting a foreign risk premium. If all investors expect higher returns by virtue of investing outside of their own country it is not possible, or at the very least, is not sustainable. In theory, the efficiency of a global capital market dictates, that capital will flow to take advantage of opportunities where risk is being mispriced such that on a global basis, long-term risk-adjusted returns should converge. The form this convergence takes varies for the different categories of markets - core, core plus and emerging. Hence, for investors placing capital from one core market to another core market, the foreign risk premium is more myth than reality. However, in core plus and emerging markets, both the types and magnitude of risk are generally greater, sometimes much greater than in core markets. Because risks in these markets may come from a number of sources - market size, currency, political risks, etc - investors from core countries should expect higher absolute returns from investments in core plus and emerging market countries. However, on a risk-adjusted basis, if the risk has been appropriately priced then the risk-adjusted returns should still be similar. Thus, in core plus, and emerging market countries, there may be a foreign risk premium on an absolute basis, but little or no premium on a risk adjusted basis, over the long-term. For example, to develop the risk premium for a country, the following assumptions are made : -

• All real estate investment involves risk
• Non risk-free asset classes have risk premia over the risk-free rate
• An appropriate proxy, following investment industry practice, for the risk-free rate prevailing in a country is the country's 10 year government bond
• The 10 year government bond reflects the global market's perception of the country's perceived geo-political risk and accurately reflects inflation expectations and currency movements
• The risk premium for holding real estate is, the sum of transparency, volatility and liquidity. The matrix adopted is

Real Estate Risk Premium = Transparency + Liquidity Risk + Volatility

This has been adopted as these key components drive the depth, liquidity and maturity of the real estate market and will therefore affect the extent to which the risk premium associated with the asset class should be adjusted. Based on this model, varying risk premiums can be applied to different counties.



SCROLL TO BOTTOW FOR LATEST NEWS : -

040110-Kinh Bac Urban Dev Co has issued 3m corp bonds to mobilise $16.25m. The 5 yr bonds carry a coupon of 11.5% pa. SGT

190110-Vietnam kicked off the first tranche in Hong Kong of a USD$1bn offshore bond sale aimed at raising funds for the state budget and for the industrial, energy and shipping sectors. Moody’s rated Vietnam Ba3 in 2009, the same of the previous 2 years, one notch higher than some other regional countries like the Pilippines and Indonesia but 3 levels below investment grade bonds. The coupon is capped at 7% a year for a term of 10 years. SGT

260110-An overseas offer of Government bonds has raised US$1 billion at a yield of 6.95% pa with the bonds to be listed on the Singapore Stock Exchange. The yield, however, was 3.32% points higher than US Trea¬suries and a percentage point higher than the two recent bond issues by the Philippines and Indonesia, both are very active debt issuers in the region with lower debt ratings from Standard&Poor's. Moody's has also rated Viet Nam Ba3, three lev¬els below investment grade. Some experts sug¬gested that Viet Nam had to pay the higher yield due to global investors concern over Viet Nam's current fis¬cal and monetary situation and doubts whether the Government would be able to meet inflation, budget¬ary and current account deficit and growth targets. The National Assembly has estimated that the bud¬get deficit would rise to 6.2% of GDP in 2010, up from 6% in 2009, although a number of economists have predicted that it would reach 10%. Meanwhile, the trade deficit was expected to widen from over $12.2 bil¬lion last year to $14.5 bil¬lion in 2010. "The latest issue of VND3 trillion in Govern¬ment bonds on Monday did not attract a single investor. The situation was blamed on a yield capped at 11%, nearly the same as the interest rate for bank deposits in Vietnamese dung. " Viet Nam first issued bonds overseas in 2005, selling $750 million worth, with a 2016 maturity date and 7.125% yield. Then, the US prime rate was 5.% and Viet Nam's national debt margin was about 2%. The bonds are now trading on the after-market at 6.1-6.3%. VNN

250110-In equity markets, forward val¬uations are still attractive, with forward market P/Es under 13 and forecasted 2011 P/Es of approxi¬mately 11 in an environment of improving global economic growth and trade, according to VinaCapital. VIR

150410-Commercial banks are starting to revise up lending rates for short-term loans as the central bank yesterday issued a circular allowing for negotiable rates for both short and long-term loans, thus effectively removing the cap of 12%. An Binh Commercial Bank said it would offer a lending rate for short-term loans in Vietnam dong at between 14% and 15% per year while middle and long-term rates would be from 15% to 16% per year. Those rates will ap¬ply to enterprises while individual customers must bear higher rates. As the ceiling lending rate is re¬moved, banks have started to raise their borrowing rate, instead of 10.5% a year under a commitment by banks to the Vietnam Banks Association, ACB offered the high¬est borrowing rate at 11.5% per year, while Vietnam Asia Commercial Bank yesterday announced to hike bor¬rowing rates by 51 to 151 basis points to the new range from 11 % to 11.8%. SGT

160610-Government bonds were seen as less risky than other investments, suggesting that the coupon rate should be lower than prevailing deposit interest rates. Therefore, bank¬ers were arguing that, if the Government wanted them to keep deposit rates at no higher than 10% bond coupon rates needed to be cut to 9% or less. In reality, however, bonds were sold in March at an annual coupon rate of 12%, in April at 11.3%, and last week, at 11.05%. Bank deposit rates, meanwhile, were averaging no higher than 11.5%, with the highest rate recorded at 11.9%. VNN

070710-To reduce risks and maximise easy gains, banks and enterprises are joining forces when it comes to corporate bonds. Among the banks and corporations forming al¬liances are the Viet Nam Interna¬tional Bank (VIB Bank) and Vinaconex Sai Gdn JSC; the Bank for Investment and Development of Viet Nam (BIDV) and Vinaconex-Viettel Finance and Viet Nam Construction Import and Export; and Techcombank and Electricity of Viet Nam. The average coupon value is about 14-14.8% per year for the 1st year. The common deposit interest rate is now hovering at about 11.5% per year. De¬posit interest rates have fallen to 10% - making holding bonds more profitable in the long term than keeping money in banks. VNN

150710-At Asia Commercial Bank the in¬terest rate for personal loans is at 16.7% a year with the rate adjusted every 3 months. Tech¬combank applies an inter¬est rate of 15.5% a year for loans of fewer than 10 years and a 16% rate for loans of more than 10 years, with the rate ad¬justed every 3 months. VNN

150710-Only half the latest government bond issue sold. The 3 year bonds were taken at a coupon rate of 9.8% or 0.8% per year lower than previous auction. It should be noted that this is the first time 3 year paper's coupon fell below the 10% per year mark. If the issuer placed the coupon rate cap at 10.2% per year for example, the lot would have been taken." Also on July 2, the issuer sold VND950 billion ($50 million) worth of 5 year paper out of VND 1 trillion on offer at a coupon rate of 10.4% per year. The State Treasury sold VND1 trillion ($52.5 million) worth of 5 year paper at 10.95% per year on June 21. On June 1, 2010, the State Treasury sold just VND200 billion ($10.5 million) out of VND2 tril¬lion ($105 million) worth of 5 year paper on auction at a yield of 11.2% per year. At the moment, local banks normally offer deposit rates at around 11.2-11.5% per year, relatively lower than 12-14% per year level in previous months. Meanwhile, local players are lending at 13-14%. VIR

160910-With the deposit rates for Viet¬nam dong capped at 11.2% under agreement with Vietnam Banks Association, banks find it hard to mobilize dong funds and they now turn to attracting dollar deposits which can be converted into Viet¬nam dong for lending, VNN

180910-Vietnam earlier this year raised USD$1bn from its 2nd global bond sale, where it offered 10 year bonds at 6.95% yields. VNN

091210-The central bank said yes¬terday it would monitor those banks which chased up the deposit rates higher than 14% per year after some lenders had raised their deposit rate to 17% or 18%. The general director of a small joint-stock bank said that he permitted staff to offer negotiable rates of up to 17% with customers, but this level was not made public. Meanwhile, the CEO of another bank headquartered in District 1 said that the negotiated deposit rate at his bank was even higher than 17% per year. SGT

Date : Thursday, 21 January 2010
Category : Tourism


Chronological Order : - Scroll to bottom for latest info


CONTACT US TO OBTAIN A FULL BACK – CATALOGUE


010609-Quang Nam said the number of foreign visitors who stayed in hotels and resorts there fell 10% year-on-year while the number of domestic guests increased 46°% in January-May period. "The growth in revenue is obviously lower than last year's period but many tour operators and hoteliers have reported that they are still faring well.” The tourism department of Binh Thuan has reported good result in attracting international visitors in the hard situation. The province has attracted 134,000 visitors during the first 5 months, up 36% compared to the same period of last year. SGT

020609-Dalat City's Hung Vuong Hotel has been upgraded to a 3 stars taking to 12 the number of 3-5 star hotels in the city. SGT

280509-Binh Thuan said that about 120-130 tourism projects would not go ahead due to a lack of locations even though most were granted investment licences before 2008. Out of the 409 pro¬jects already licenced, worth nearly $281 million, 194 projects or 47% have yet to get off the ground. In Phan Thiet City, one of the country's largest tourism hub, 219 projects aiming to use more than 3,500 hectares were given the green light, but 79 of them have failed to be implemented. The province's Bac Binh district's 35 projects also lay dormant, while only 9 of 89 projects in Ham Thuan Nam district have been carried out. This situation continues to repeat itself throughout the region. The already approved 53 projects in La Gi town and Ham Tan district are as ill-fated as others found in the province. One-third of the stalled developments were in Ham Thuan Nam district's Ke Ga and black sand areas, while the remain¬der were scattered in coastal areas which lacked adequate infrastruc¬ture. Ke Ga was earmarked for tourism development but a pending review of a planned deep water port had put 11 tourism projects on the backburner. Some 30 tourism development projects registered in 2003-2004 period have not been implemented. "They have to wait until the exploration and exploitation of black sand is complete." VIR

250509- Continuing difficulties with Vietnam's visa issuance process are putting the nation at a disadvantage. “It is unanimous that the largest obstacle to estab¬lishing Vietnam as a global destination is its application, processing and approval of visas to enter the country. Visas are the first com¬plaint of international leisure and business travellers into Vietnam." According to the report, up to 10% of Viet¬nam's potential tourism GDP was lost, equivalent to $350 million, as well as an additional $35 mil¬lion in potential VAT revenues, due to ineffi¬ciencies in Vietnam's visa regime and the uncertainties faced by would-be visitors when attempting to apply for entry into Vietnam. "Please note that the aforementioned $350 million does not include the potential FDI that has been shifted away from Vietnam due to the complex¬ities and difficulties of the visa process. This number could be in the billions." Due to the processing time that it takes for individ¬uals to acquire visas, last ¬minute travel to Vietnam is not an option and has been replaced by weekend trips to Phuket, Bali, Macao and Sin¬gapore. VIR

150609-About 1/3rd or 50 out of the 166 golf courses under development or approved should be cancelled as golf course development in Vietnam is threatening its agricultural land according to the Minister of the MPI. Under the proposals of MPI, an 18-hole course would be licensed in most cases if it covered less than 100 hectares of land. SGT

170609-The Grant Thornton annual Hotel Survey 2009 shows that some are running around at 40% and lower because of low season. The low oc¬cupancy this year could pull the hotel room occu¬pancy for all of 2009 even lower than 2008 when the average occupancy rate for 5 star properties was only 56.9%, as against 65.7% in 2007. The overall occupancy rate for high-end hotels across all categories was 59.8%, down 9.6% compared to 2007. The average occupancy rates across high-end hotels in Vietnam dipped 14.2% in 2008 to their lowest in the past 4 years. Despite the fall in room occupancy the survey shows average hotel room rates across all categories picked up by 9.6% in 2008 from 2007, or to USD$114 from USD$104. The room rate at 5 star hotels averaged US$195 per night in 2008. In 2008 around 4.25 million international tourists visited, up a mere 0.6% on 2008 and much lower than the 12-17% industry forecasts released early that year. But hotels are not rushing to slash rates because they found it difficult and long to raise prices back again once the market improved as they had learned much from the past during the 1997/98 regional financial crisis. The current room rates at 4-5 star hotels in HCMC range from USD$95 to nearly USD$200, which some hoteliers said are lower than the same period last year. There are currently some 199No. 3 star, 88No. 4 star and 41No. 5 star hotels in Vietnam with a combined room number of 32,000. The VNAT has forecast that an addi¬tional 15,000 to 20,000 hotel rooms will be needed to meet the dual target of 5-6 million international travelers and up to 25 million domestic tourists. SGT

160609-Allezboo Beach Resort and Spa said interna¬tional bookings at properties in Mui Ne this summer could tumble by as much as 30% from the same period in 2008 mainly due to the decline in Russian arrivals. Reliable sources say guests currently occupied just a little higher than 40% of the rooms at certain 4 & 5 star hotels here. Allezboo estimated that the rate at 4 star resorts in Mui Ne at US$65-95 per night, or down 10-15% year-on-year. SGT

180609-Binh Thuan has licensed 10 tourist service projects in the 1st Half of 2009. SGT

250609-SaigonTourist Holding Co yesterday disclosed a major plan to branch out to key for¬eign markets and at the same time invest heavily in new developments on the home front. "We will buy around five hotels in foreign coun¬tries and continue to build new ho¬tels across the country."
The company is in talks over the acquisition of a hotel in the US in a move to own a first property abroad. "We expect to complete the deal later this year." If the deal is successful, it will pave the way for Saigontourist to buy more hotels abroad, particularly Moscow, Tokyo, Berlin and Hong Kong. SaigonTourist and its partners are investing more than US$1 billion in developments in HCMC and elsewhere in Vietnam. This investment is going to further de¬velop the Saigon Exhibition and Con-vention Center in HCMC's District 7, and this facility will be able to accom¬modate 40,000 visitors a day when fully completed in 2012. Saigontourist is also preparing to build a new 40 storey, 5-star hotel Kim Do and the extended Majestic prop¬erty with a new 30-story building in. District 1, a complex comprising of 2,300-2,500 rooms in District 2 and an ¬ecotourism area in District 9. Saigontourist has almost realized revenue of US$500 million that the company targeted for 2010. The new yet ambitious target is US$1 billion and the company is expected to achieve it by 2015 at the latest. In 2008 the company served around 1.5 million local and foreign tourists with total revenue of nearly VND7.5 trillion / $420.6m. Most of Saigontourist's revenue came from international visi¬tors but the company is looking to 50:50 in revenue from local and inter¬national guests in the next 10 years. SGT

290609- Despite the negative impact of the global financial crisis and recession, Viet Nam was ranked 4th by the World Travel Coun¬cil in the list of countries with high growth in the tourism industry. The national tourism industry accounted for 13.6% of the country's GDP growth in 2008. VNN

290609-Da Nang received 1 million do¬mestic tourists in 2008 and the number of cruise ships docking at the Da Nang Port in¬creased from 26 to 57 in the last 2 years. SGT

290609-The Nam Hai beach resort in Quang Nam Prov¬ince was one of the first re¬sorts to develop the villa for sale busi¬ness and prices have tripled in 5 years. The Fusion Alya project in Da Nang has 19 pool-view villas, 11 sea-view villas and 57 apart¬ments which are being sold from $95,000-$280,000 / unit but the Vegas Beach Club Resort, owned by the Magnum group, failed to sell villas to secondary investors at the asking price of $175,000 / unit. The re¬sort was later sold to new investor Kingdom Hotel Investments. Last year, Kingdom Ho¬tel Investments also failed to attract buyers with prices ranging from $285,000-$1 million / unit. VNN

290609-Hotels across the nation have taken a major hit to their profits. A remarkable 10% decrease in net profits for 50No. 3-5 star hotels and resorts across Vietnam in 2008 was reported. Contribu-tions from room sales remained unchanged from 2007 to 2008, at about 64%, while room expenses increased by 19% as a percentage of room revenues. There was a slight 2% decrease in food and bev-erage sales, while food and beverage expens¬es increased by 13% as a percentage of food and beverage revenues. The hotel survey also showed significant changes among different regions in 2008. Hanoi, Hoi An, Danang and Phan Thiet experienced a decline in room rates, with a 31% drop in Hoi An and Danang during 2008. However, room rates in Ho Chi Minh City and Dalat managed to stay steady or increase during this period. The average room rate was highest at $195.83 for 5 star hotels and lowest at $44.50 for 3 star hotels. Overall, room rates across all hotels in all regions increased by 9% in 2008, while average occupancy rates fell 14% in 2008 to their lowest levels in the past 4 years. The average occupancy rate for 4 star hotels was 62%, slightly higher than 61% in 5 star and 57% in 3 star hotels. According to the survey, an 8% increase in domestic guests checking into top-end hotels and resorts throughout Viet¬nam also marked a change of focus. Unlike 2007 when Vietnamese made up only 12% of total guests, they contributed more than a 1/5th of all customers in 2008. Addi¬tionally, Asian guests' accounted for 37% of total guests, which saw the market increase by 7%. compared with 2007 While European guests still made up more than a 1/3rd of total guests, the number was on a slight downturn of 4% compares with the previous year. Oceania, North Amer¬ica and other countries shared the rest of the market, which as a whole was reduced by 5% in 2008 when compared to 2007. Direct reservations and bookings via travel agents or tour operator were more popular than others and made up 45% & 31% respectively dur¬ing 2008 with on-line bookings at 11%. The number of leisure travellers account¬ed for 56% of total guests, with tour groups and individual tourists representing 25% & 25%, respectively. VIR

270609-Que Huong Liberty JSC manages 9 hotels and restaurants including Que Huong Liberty 1, 2, 3, 4 & Metro¬pole hotels, and Van Canh, A Dong and G02 restaurants. It achieved a revenue of $13.52m or an increase of 29.2% compared with 2007, and after tax profit was $5.44m in 2008 or a growth rate of 82.4%. Profit from its main business activities increased 45.6%. In the 2005-2008 period, average revenue grew by 35.3%. The company has approved investment projects for 2009 to 2012 with the aim of turning Que Huong Liberty into one of the top hospitality and tourism brands in Vietnam. To carry out this plan, the company is going to operate the new 3 star Que Huong Liberty 6 Hotel, with a capacity of 114 roomsand expand Que Huong Liberty 4 Hotel with 14 new rooms, complete the renovation and upgrade of the Metropole to 4 stars with 350 rooms and be¬gin upgrading Que Huong Liberty 1 Hotel to 4 stars with 280 rooms. In addition, by 2012 Que Huong Liberty will operate 955No. 3-4 star rooms or a 3 ¬fold increase.

060709-SacomReal launched the sale of 124 villa land lots of the re¬sort project Casallwa Hills in Binh Thann Province’s Ham Tan with land prices start from $195sqm at the 200ha develop¬ment, which is the largest seaside re¬sort project to date including a resort area, hotels, a 30ha natural lake with a boat club, 50ha of primitive forest, camping areas, a 18-hole golf course and shopping spaces. The project will be designed by well known American firm WATG and managed by the Marriott Group. Meanwhile, VinaCapital’s 30 ocean view villas at Da Nang Resort will range between US$320,000-$625,000 for villas of 2-4 bedrooms on land lots with a minimum size of 527sqm. The second house con¬cept is not a primary home. It is typically located in a beach front resort or in the mountains in a managed community, and can be leased for additional income, or for future retirement. This second house mar¬ket will mainly be for Viet¬namese citizens as current regulations do not make it easy for foreigners to acquire a house here, as in Viet Nam non resident foreign indi-viduals and entities are not allowed to purchase any type of property. Furthermore, apartments in the second house market in Viet Nam are more expensive than in re¬gional markets eg 1sqm for a 2 bedroom unit of 110sqm at the Indochina Land Hyatt Re¬gency Danang Residence is priced from $2,263 whereas similar prices start at $1,000 in Malaysia's Penang or $1,282 in Thailand's Phuket. VNN

090709-Hoteliers and foreign-local JV tour operators have welcomed 2 new decisions from the Government that allow 4 & 5 hotels to remain open until 2 am and tour operators to arrange outbound tours. Deputy PM agreed to a plan of the Ministry of Culture, Sports & Tourism to carry out activities to help the sector develop in times of recession. He has approved the ministry to select a list of the 4 & 5 star hotels to pilot some entertainment services until 2 am. The pilot activity will run to the end of 2010. The Deputy Prime Minister also agreed to allow foreign-local joint venture tour operators to arrange outbound tours for Vietnamese and foreigners who live and work in the country. The current rules permit these firms to arrange inbound tours for foreigners in Vietnam. The director of the 4 star Continental said that the hotel had waited a long time for the decision. "The old ban on all activities at entertainment venues after midnight made guests unhappy.” SGT

090709-Among the total $64 bil¬lion of foreign direct invest¬ment funnelled into Vietnam last year, a large amount of capital went into building second homes at golf and resorts areas in Halong Bay, northern Quang Ninh province and Ba Ria-Vung Tau province's Ho Tram. There are 3 golf and 3 resorts projects under construction in the north, a total of 970 villas and 566 condos. In the centre, there are 4 golf and 18 resort projects under construction, with 1,085 villas and 511 condos. The south has the highest with 8 golf and 17 resort projects. There will be 174 condos, 196 villas and 124 plots of land for villas ready for sale this year, compared with 1,880 villas, which opened for sale in 2008. VIR

170709-Korea Inv & Dev Co Ltd’s $90m 10,800sqm condo project Blooming Tower Danang of 2No. 37 floor towers with 671 luxury apartments with areas ranging from 50-202sqm in the new urban town Da Phuoc, near the ongoing construction cable-stayed bridge Thuan Phuoc crossing the Han River is selling 160 apart¬ments at prices starting from US$1,500-US$1,620/sqm. In the 1st Phase the company sold 134 apartments at prices rang¬ing from US$1,200-US$1,560/sqm. The buildings overlook the sea, the Han River, Ba Na Mountain, Son Tra Peninsula and Danang City. The condo project is also inclusive of other facilities such as commercial section, swimming pool, spa, fitness center, mini golf course, restaurant and conference room. VNN

210709-Over 40,000 visitors including 2,000 international ones, have flocked to Cham Islet in Quang Nam this year – a 3 fold increase on last year, as the number of tourists has increased sharply after UNESCO recognized it as a world biosphere reserve. SGT

210709-There are currently 31No. 5 star hotels with nearly 8,200 rooms and 90No. 4 star hotels with nearly 11,000 rooms in the country, according to a report by the Hotel Depart¬ment in 2008. This combined number com¬pares poorly to the country's 10,400 tourist accommodations in total with over 207,000 rooms. SGT

220709-Vietnam is spending a humble $1.4m on promoting tourism in 2007 while Thailand announced in January an additional $140m towards tourism promotion following the Bangkok airport protest. This will be used to supplement its existing 2009 promotional budget of $80m. Malaysia has designated $180m for its memorable “Truly Asia” campaign. While other nations have their own attractive songs to promote tourism Vietnam does not. Amid the economic crisis these markets have cooprated with airlines, chains of restaurants and shopping centres to design a shared tourism strategy. VIR

270709-Tourism prop¬erty projects around the country in the next 2-3 years will provide the market with 970 villas and 565 condos in the northern prov¬inces and 1,085 villas and 510 condos in the central region, and 5,100 villas in the southern provinces, that include the Hyatt Regency Danang Resort and Spa with 174 condos and 27 villas, Ho Tram Sanctuary with 70 villas, Best Western Nha Trang with 240 condos, Evason Hideaway Con Dao with 35 villas and the complex Sea Links in Mui Ne, Phan Thiet City. Some 120 land plots at Casale Hills in Binh Thuan are as large as 575 square meters, are on offer with prices starting from VND3.5m/$197sqm ie $24-112k/plot. The project is being developed on 200 hectares with different sec¬tions, including 350 villas, four re¬sorts and an 18-hole golf course. SGT

120809-Starwood Asia Pacific Hotels & Resorts operates 2 Sheraton hotels in Vietnam, the Sheraton Hanoi Hotel with 299 rooms and the Sheraton Sai¬gon Hotel & Towers with 472 rooms. Starwood has 3 hotels and resorts under construction, the Sheraton Nha Trang Hotel & Spa with 284 rooms, the Sheraton Hoi An Resort & Spa with 242 rooms and The Westin Resort & Spa, Cam Ranh with 330 rooms. SGT

120809-Binh Thuan welcomed 1.3 million tourists in the first 7 months, and obtained $56.1m in revenue. These fig¬ures represent year-on-year growth rates of 12% and 32%, respectively. Lien said around 187,000 visitors were foreigners, up 30%, while the number of local travelers was 10% higher. The main source markets of the province's inbound tourism are Russia, Germany, Sweden, South Korea, and France. During the period, hotels and resorts in Binh Thuan enjoyed an average room occupancy rate of around 60%, largely owing to local tourists flocking to the resort city during the summer vacation. The coastal province has around 130 hotels and resorts. The province expects to welcome 2.2 million tour¬ists in 2009 compared to 2008’s figure of around 2 million. SGT

200809-Lam Dong has licensed more than 260 tourism projects, with 30% currently under progress. SGT

290809-VinaCapital introduced 3 model villas at The Ocean Villas which stretches along Non Nuoc Beach in Ngu Hanh Son in Danang covering 21he and comprising 115 luxury beach villas with 2-5 bedrooms and 500-1,400sqm from $375-$840k per unit. All villas face the beach, water channels and a green landscape of an environment friendly resort setting. The Ocean Villas is the 1st resi-dential component of Danang Beach Resort which includes a 5 star hotel, 2No 18 hole golf courses, a marina, a cultural centre and almost 400 luxury villas. SGT

060909-The tourism property market - including the develop¬ment of coastal resorts and villas - is primed to explode in the near future, says the head of the Foreign Investment Agency (FIA). The country's natural environ¬ment, including a long coastline and fine beaches, promised a strong development. VNN

200809-Unlike a primary home, specif¬ic characteristics permit second homes to generate additional income for owners through a rental program besides functioning as ac¬commodations for holidaymakers. Meanwhile other investors expect a certain margin when reselling the property. Nam bought sev¬eral properties at the Hyatt Regency Da¬nang Resort and Spa, which covers 20 hectares on the beach near Ngu Hanh Son Mountains and compris¬es 174 luxury condominiums, 27 luxury villas and 200 hotel rooms and 'suites. Rather than wooing buyers to in¬vest their money in holiday retreats, many project developers entice po¬tential local buyers to benefit from a freehold tenure, while foreign buyers can purchase offshore own¬ership rights which give them real access to the Vietnamese property market. In addition, buyers can take part in a rental program to recover their investments. Nam explained his investment saying he would have to pay some US$300,000 for a 115sqm @$2,600/sqm apartment in the Hyatt project. That amount is the same as for buying a luxury apartment in HCM City. However, a five-star standard apartment has more chance of earning a profit for the investor than a normal apartment in a city. Nam calculated his expected benefit margin, saying that the management company will lease his property at the price of US$500 per night. Supposing an occupan¬cy rate of around 65% to 70% per month, then his gross rent will be around US$10,500 per month. Af¬ter subtracting 50% for manage¬ment services, he will get some US$5,000 per month. In the next two to three years, tourism prop¬erty projects around the coun¬try will provide the market with 970 villas and 565 condos in the northern provinces, 1,085 villas and 510 condos in the central re¬gion and 5,100 villas in the south¬ern provinces.

Some tourism projects : -
Name & location Properties Developer
Ocean Villas (Danang) 193 villas VinaCapital
Casale Hills (Binh Thuan) 350 villas Saigon-Ham Tan Tourism
Hyatt Regency (Danang) 174 condos, 27 villas Indochina Land
Evason Hideaway (Con Dao) 51 villas Indochina Land
Ho Tram Sanctuary (Vung Tau) 67 villas Refico
Best Western (Nha Trang) 238 condos Hai Van Nam
Sea Links (Phan Thiet) 300 villas Rang Dong Corp.
La Vallee de Dalat (Dalat) 6 villas Khanh Tam Development
Mui Ne Domain (Phan Thiet) 140 villas Minh Thanh Construction
SGTW

140909-The Hoa Hai Ward in Da Nang's Ngu Hanh Son District is now home to 12 licenced resort projects with a total of 50,000 guest rooms, but many remain on paper. SGT

170909-Chi Thanh the developer of Urban Zone No 6, Dien Nam Dien Ngoc NUA covering 56.6 hectare is selling villas at the $18.5m Bong Lai luxury villa complex over 26 hectares. Initially 15 luxury villas in European-Asian architectural styles, combined with extensive landscaping with uninterrupted views and rolling vistas, covering from 900-1,200sqm each complete fixtures and fittings and a private swimming pool, 3 high¬ quality restaurants, and 2 international-standard tennis courts, range from US$1.2-$2m with the highest costing $3 million. VNN

220909-About 80% of buyers of beach resort holiday homes second homes at from Hanoi; 10% from HCMC & 10% Viet Kieu. VREA conference.

260909-The total land area allo¬cated for 145 golf courses nationwide comes to over 52,700ha. This means that one golf course occupies an average area of more than 300ha of land. Over 10,000ha of agricultural land, including 2,900ha of rice growing land have been converted to build golf courses. This is a huge fig¬ure. The new process of granting licenses to golf course projects must be strictly fol¬lowed. It is essential to satisfy 2 basic criteria when building a golf course: 1st the total area of a golf course maybe 100ha, or up to 110ha in areas with many lakes, ponds and mountains; 2nd a golf course is only permitted to take at most 10ha of low efficiency rice growing area and must satisfy environmental pro¬tection conditions. Golf courses that were pre¬viously licensed to develop land exceeding the 100ha plus 10% quota must cut down the excess in ac¬cordance with the new cri¬teria. Based on the criteria above, the ministry has re¬jected 7 out of 19 golf courses which were already licensed by local authorities in northern midland and mountainous areas. In the Hong (Red) River Delta, only 12 golf courses remain out of 33 thal previously existed, and only 41 out of 57 remain in the northern central region and central coastal provinces. In Tay Nguydn (Central High¬lands) and south-east Viet Nam, 11 out of 13, and 26 out of 37 golf courses re¬main, respectively. VNN

280909-Vietnam had one of the smallest visitor arrival rates per capita in the re¬gion in 2008 at 0.05, compared to 0.217 for Thailand and 2.087 for Singapore, according to the Lon¬don-based hotel index provider STR Global. VNN

280909-The 5 star hotels (excluding luxury hotels) have cut rates by 13% from the 1st Quarter to an average of US$118 and occupancy has fallen by 14% to 45% in HCMC. The international luxury hotel segment, at $198, had significantly higher room rates than other 5 ¬star hotels but it was the segment hardest hit, with rates plunging 14% in the 2nd Quarter. Occupancy rose from 44% to 47%. The 4 star segment saw rates falling a mere 4% to $80 but the highest decrease in occupancy of all segments, plunging from 75% to 47%. Corporations like Saigontourist and Hanoitourist own the largest, hotel chains in the country. The Government retains an in¬terest in more than 40% of HCMC 3 star hotels, 60% of 4 star, and 30% of 5 star hotels. VNN

011009-Foreign investment into Vietnam's tourism industry has largely been focused on the development of accommodations like hotels and resorts, while the area of entertainment services and supporting services are not properly attended to according to the deputy director of the Vietnam Institute for Tourism Development Research. Viet¬nam's hospitality sector is facing an imbal¬ance but foreign investors are still registering for more hotels and tourism real estate projects while the industry also needs entertainment services to cater to travelers. "Up to 2008, over 80% of the total 307 FDI projects in the tourism industry were hotel projects." The situation does not mean that foreign investors are not in¬terested in such kinds of projects. One of the main reason is that "we are not open enough in the investment flow into tourism and en¬tertainment services.” He mentioned the conditional service of casino as an example. Many big investors have pledged to invest billions of dollars in complexes but such projects have stam¬mered because the Government still did not have a clear policy about the service. SGT

011009-The central coast province of Binh Thuan has welcomed 1.7m so far this year, increasing 9.95% year-on-year and gaining 74.52% of the year's target. The total includes nearly 200,000 foreigners, up 30.6% year-on-year and 92.19% of the year's target. Foreign tourists came from Russia (22.6%), Germany (15.53%), the U.S. (6.65%), France (6.38%), Sweden(6.24%), SouthKorea(5.84%), Australia (4.76%), the Netherlands (3.19%), China (3.08%), the U.K. (2.9%) and Switzerland (2.52%). SGT

091009-The Vitenam Institure for Tourism Development Research said the sector was facing an imbalance. Foreign investors are regitering for more hotels and tourism real estate projects while the industry needs entertainment serivces to cater to travellers. “Up to 2008 over 80% of the total 307 FDI project in the tourism industry were hotel projects.” SGTW

101009-The 4 star Best Western Muong Thanh Hotel with 20 storeys and 168 hotel rooms located in Linh Dam 7km south of Ha Noi opened and also includes a 200 guest banqueting hall and a unique Spa Savasana. VNN

141009-Galileo Investment Group has been licensed by Phu Yen to establish the 1st Phase of the Creative City project worth about US$1.7 billion and cov¬ering about 1,500 hectares in the province. SGT

201009-HCMC has asked 4 lessees of the land plot at 8-12 Le Duan Street in District 1 to end their leasing contracts so the HCMC House Management & Trading Co to develop a 5 star hotel. SGT

211009-The promotion program named One Day at Five Star Hotels offering a discount of around 50% for local guests at luxury hotels, will end as results are poorer than expected. The GD of the 5 star Majestic hotel said room tariffs under US$100 are receiving local guests, while other hotels reported no or very few bookings. The special program was launched by the HCMC Department of Culture, Sports and Tourism in cooperation with the HCMC Hotel Society. The department has called on 5 star hotels in the city to discount around half the official price to domestic guests with an aim to make such guests familiar with luxury services and increase room occupancyin the hotels. Some 9 of 13No. 5 star hotels in HCMC registered. The Majestic had 18 Vietnamese to stay at the hotel. The Renaissance Riverside Saigon hotel has 2 bookings onlywhile the Rex has received nothing. SGT

221009-The Hanoi hotel sector as been suffering from a slump in room rates and declining occupancy levels since late 2008. Many airlines have increased their routes both internationally and internally to Hanoi, boosting accessibili¬ty. Hanoi currently has approximately 8,000 hotel rooms of 3-5 star standard. It has a total of 12No. 5 star and 9No. 4 star hotels. There are currently 4 hotel projects in the city sched¬uled for completion by the end of 2009 and 3 to be com¬pleted in 2010. Those include the 560 ¬room Hanoi Plaza Hotel, 350¬ room Crowne Plaza Hotel, the 383 room Intercontinental Landmark hotel and the 300¬ room Times Square hotel. VIR

201009-According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA) as of September, Vietnam had attracted $12.54 billion in foreign direct investment (FDI), a decrease of 78.6% against 2008. However, the hotel and restaurant sectors had received a record $4.57 billion, followed by the general real estate sector with $3.65 billion, and process¬ing and manufacturing with $2.53 billion. The country has recorded a series of hos¬pitality, leisure and second-home projects getting off the ground recently, such as Ba Ria-Vung Tau province's Sanctuary Ho Tram, Ho Tram Strip and Crown Land Long Hai, Binh Thuan province's Casalle Hills, Ocean Vista and Mui Ne Domaine, Khanh Hoa province's Best Western Nha Trang Plaza, Danang's Hyatt Regency Danang Resort & Spa, Ocean Villas, Olalani Resort & Condotel, Haiphong's Cai Gia-Cat Ba and Quang Ninh province's Long Chau Villas & Residences. Hanoi is expected to gain 1,850 new rooms and Ho Chi Minh City 1,200 rooms by 2012. The occupancy levels for 4 & 5 ¬star hotels in Vietnam declined from 77% to 55% between June 2007 and June 2009. The declines in Singapore, Thailand and the Philippines were 83%-72%, 69%-52% and 70%-64%. VIR

271009-Binh Thuan said although the global economic turmoil and the uncertainty in the local market had hurt tourism the province still saw improvement with revenue in January to September up 32% yoy. According to statistics of the provincial department of culture, sports and tourism, the resort city received some 1.64 million visitors in the first 9 months of this year, up 10% over the same period 2008. Intemational visitors increased 32% with 187,000 travelers, mostly from Russia, Germany, France, the United States, Korea and China. The increase in visitors meant an average occupancy of 57% for hotels and resorts in the province. Longer average stays contributed significantly to provincial tourism revenue in the period. Binh Thuan has 413 tourism projects with 137 of them opera¬tional with 5,700 hotel and resort rooms. In Jan-Sep, Binh Thuan approved 35 new projects and re¬voked licenses from 26 slow proj¬ects, according to the department. The province tar-geted 2.2 million visitors this year, in which international arrivals would account for 10%, andrevenue 15% more than last year. SGT

301009-VNAT said the country now has 32No. 5 star hotels; 92No. 4 star facilities; and 178No. 3 star hotels. SGT

251009-Ninh Thuan currently has less than 10 resorts whereas neighbouiring Binh Thuan has over 400 out of 600 projects for building urban zones and trousim services. VIR

171109-Hong Hac Dai Lai JSC, owner of the Flamingo Dai Lai Resort project, has put 30 land plots for villas with areas ranging between 300-700sqm on sale at a price of over VND7m / $392sqm. The project worth about VND2tr / $112m and covering 123 hectares in Vinh Phuc Province's Phuc Yen District will include a high¬class resort, a villa area and other facilities. SGT

231109- Hong Hac Dai Lai JSC has announced to sell 30 land plots of the Flamingo Dai Lai Resort project in Vinh Phuc Province at over VND7m / $392sqm. The land plots are between 300-700sqm ie $117k-274k. SGT

261109-Over 2 million tourists, among them 200,000 foreigners, have visited Binh Thuan this year - a 9.9 % year-on-year increase - bringing the year's tourism revenue to nearly VND1.7tr / $95.1m - a 31.12% year-on-year increase. SGT

301109-VNAT expects Vietnam to welcome 4.2m-4.25m international tourists in 2010 or 10% more than 2009 given stable conditions in local and world economies. SGT

021209-Despite economic difficulties, the northern province of Ninh Binh has welcomed 2m tourists including 27,000 foreigners since the beginning of this year and is a yearly increase of 27%. The province has also earned VND220bn revenue (US$12.2 million) from tourism, which is up 50% year on year. VNN

021209-VNAT hopes to triple the tourism industry’s rev¬enue to around US$10-11bn by 2015. In its tourism development strategy draft, the Government body expects the country's tourism sector to welcome 7-8m foreign travelers and around 32m local tour¬ists a year in 2015. This compares well with last year's international arrivals of some 4.2m and revenue of around US$3.5 in 2008. In 2020, Vietnams hospitality industry should be a strong player in the region with around 11-12m foreign tourists and 45-48m domestic travelers. VNAT expect Vietnam to receive around 6m foreign visitors in 2010. However, this target now looks highly unlikely as the country received merely 3.4m international travelers in this year to date, down 12.3% yoy. They hope to welcome around 4.2-4.5m international tourists in 2010. Vietnam has 764 international travel firms and a huge number of domestic travel companies as well as 10,800 accommodation facilities with 208,000 rooms. SGT

071209-VNAT stats showed that Vietnam has seen a 9.7% growth rate for international tourist arrivals jumping from 500,000 in 2001 to 4.2m in 2008. Tourism earned $3.37bn in 2008 – 3 timesmore than 7 years ago. VNN

0714209-According to VNAT the number of foreign tourists visiting the Cuu Long / Mekong Delta accounts for 4.3-6.5% of the total and 5-9% of domestic tourists. In 2008 tourism sector revenues were VND2tr / $110m or just 2.46% of the national figure. VNN

091209-VNAT said Vietnam would likely spend VND40bn / $2.1m on promoting tourism in 2010. It is expected that nearly 3.9m foreign tourists will visit in 2009 – down only 10% but the turnover increased by 10% on 2008 thanks to the increase in local tourists from 21m in 2008 to about 25m this year. VIR

161209-The country has 303No. 3-5 star hotels including 32No. 5 star hotels & 92No. 4 star hotels. SGT

271209-There are about 23No. 3 star or higher stan¬dard hotels and resorts in Danang City, providing some 1,700 rooms but projections in¬dicate that the city will see around 42 hotel developments with around 7,000No. 3-5 star hotel rooms in the next 5 years. SGT

261209-Vietnam's golf course strategy towards 2020
Name of projects Operational Planned Total
Hoa Binh province 1 2 3
Phoenix Golf Resort Yes
Tam Tang-Mai Chau golf resort Not yet
Trung Minh-Ky Son golf resort Not yet
Lang Son province 0 1 1
Golf course of Lang Son International JV Company Not yet
Bac Giang province 0 1 1
Yen Dung golf, residential and service complex Not yet
Phu Tho province 0 1 1
Golf course in Tam Nong district Not yet
Quang Ninh province 1 4 5
Vinh Thuan golf course Yes
Ao Tien golf course Not yet
Yen Lap golf course Not yet
Tuan Chau golf course Not yet
A golf course of Ha Long eco-tourist resort Not yet
Hanoi 4 4 8
Golf projects decided by Hanoi People's Committee
Hai Duong province 1 0 1
Chi Linh Star Golf and Country Club Yes
Vinh Phuc province 2 1 3
Tam Dao golf course Yes
Golf course of Dai Lai Tourist Resort Not yet
Dam Vac golf course Yes
Ninh Binh province 0 1 1
Golf course of Dong Chuong Lake urban town Not yet
Haiphong city 1 1 2
Golf course of Song Gia Resort Not yet
Do Son International Golf Course Yes
Ha Nam province 0 1 1
Tam Chuc tourist resort Not yet
Nghe An province 0 1 1
Cua Lo golf course, hotel and villa complex Not yet
Ha Tinh province 0 1 1
Xuan Thanh golf and tourist resort Not yet
Quang Binh province 0 1 1
Golf course at Bang Hot Spring tourist resort Not yet
Thua Thien-Hue province 0 3 3
Golf and service complex Not yet
Laguna Vietnam Not yet
NaMa tourist resort Not yet
Danang city 0 3 3
Ba Na golf course Not yet
Vinacapital's golf course Not yet
Golf course of Da Phuoc International Urban Town Not yet
Quang Nam province 1 0 1
Indochina Hoi An golf course Yes
Quang Ngai province 0 1 1
Golf course at Dung Quat Economic Zone Not yet
Binh Dinh province 0 1 1
Golf course of Vinh Hoi tourist resort Not yet
Phu Yen province 0 2 2
Phu Yen High-grade Tourism Complex Not yet
Golf course of Thanh Lau-O Loan tourist resort Not yet
Khanh Hoa province 0 4 4
Golf course of Nha Trang tourist complex Not yet
Vinpearl golf course Not yet
Cam Ranh golf and villa project Not yet
Cam Lap golf course Not yet
Ninh Thuan province 0 3 3
Golf course of Binh Tien tourist resort Not yet
Golf course of Phan Rang-Thap Cham golf & villa Not yet
Dinh Cape golf course Not yet
Binh Thuan province 2 6 8
Phan Thief golf course Yes
Ham Thuan Nam golf and villa complex Not yet
High-end international tourist resort Not yet
Sealinks Golf and Country Club Yes
Golf course of Dai Duong Valley tourist resort Not yet
Golf course of Binh Thuan tourist and township Not yet
Bac Binh golf, recreational and villa complex Not yet
Golf, recreational and villa complex in Mui Ne Not yet
Gia Lai province 0 1 1
Glar golf course Not yet
Lam Dong province 1 6 6
Golf course of Da Ron Lake tourist resort Not yet
Golf course of Wren tourist resort Not yet
Golf course of Sacom tourist resort Not yet
Loc Phat golf course Not yet
Golf course of Da Huoai tourist complex Not yet
Golf course at Not Phu Dong Thien Wong Yes
Kon Tum province 0 1 1
Goff course of Saigon-Mang Den Company Not yet
Ba Ria-Vung Tau province 1 6 6
Golf course of Vung Tau Paradise JV Company Yes
Golf course of Winvest Investment Company Ltd Not yet
Huong Sen golf and service complex Not yet
Golf course of Ho Tram Strip project Not yet
Golf course of Chau Duc complex Not yet
Goff course of Loc An tourist resort Not yet
Tay Ninh province 0 1 1
Vietnam-Cambodia Friendship golf course Not yet
Binh Duong province 1 3 4
Palm-Song Be golf course Yes
Golf course of Mekong Golf Villas Not yet
Twin Doves Golf Club and Resort Not yet
Ho Diep Island Golf Club and Resort Not yet
Dong Nai province 2 3 6
May River Golf Club Yes
Long Thanh golf course Yes
Goff course of Jeongsan Vine Company Ltd Not yet
Golf course of Dal Phuoc eco-tourist resort Not yet
Golf course of Phuoc Binh complex Not yet
Ho Chi Minh City 1 4 6
Golf course of Hoa Viet Company Ltd Yes
Sing Viet golf course Not yet
GS golf course Not yet
Golf course of Saigon Company Not yet
Golf course at Tan Son Nhat International Airport Not Yet
Can Tho city 0 1 1
Golf course in Binh Thuy district Not yet
Tien Giang province 0 1 1
Tien Giang golf course Not yet
Long An province 0 2 2
Golden Palm Resort Community in Can Giuoc Not yet
Golf course of Duc Hoe urban town Not yet

281209-Vietnam is forecast to see an 11% decline in international tourist arrivals in 2009 with the financial crisis and the HIN1 swine flu cited as the culprits. About 3.8m foreign are forecast to come to the country this year, down by 450,000 from 2008 shows VNAT. Despite the fall in foreign tourist arrivals the tourism sec¬tor's revenue is expected to grow 6.5% to 9% to VND68-70tr / $3.67-3.78bn thanks to an upsurge in domestic traveler numbers. The sector has served around 25m local travelers this year, up to 19% year-on-year. Vietnam has seen a higher decline in international visitor arrivals than other destinations in the Asia Pacific region. PATA said Asia Pacific destinations had incurred a 5% drop in international arrivals in 2009. This means the region would receive 17m fewer visitors this year than in 2008 when therewere 377m arrivals. VNAT said the country could attract 4.5-4.6m international visitors in 2010 up 18%-21% and the number of domestic travelers is projected to reach 28m in 2010. HCMC had received only 2.6m foreign visitors in 2009 down by 200,000 and VNAT has forecast the number of foreign visitors to the city in 2010 would reach 2.8m, the same as in 2008. SGT

301209-The sector accounts for 44.7% of total FDI into Vietnam in January November comprising 31 new projects registered for tourist accommodations and food and bev¬erage with total investment pledged at US$5bn. Another 8 projects have increased capital to over US$3.8bn. "Total new investment of the ser¬vices reached US$8.8 billion, making up around 44.7% of total FDI into the country." The flow of developing tourism projects is increasing with investors still reg¬istering to build high-class hotels and resorts instead of entertainment service projects. Foreign investors are registering for hotels and tourism real estate projects while the industry also needs entertainment services to cater to travelers. Up to 2008, over 80% of the 307 FDI projects in the tourism industry were hotel projects. According to VNAT, as of Novem¬ber the country had 10,900 tourist accommodations with over 215,000 rooms, including 315No. 3-5 ¬star hotels and resorts with over 33,600 rooms. The department forecast that the hospitality sector this year would receive 3.8m foreign visitors, down nearly 11% year-on-year, and 25m domestic travelers, up 19% compared to last year. Tourism revenue is expected to grow 6.5 %-9% to VND68-70 trillion / $3.67-3.79bn. SGT

311209-Binh Thuan attracted about 2.2m tourists, many from Russia, China and Switzerland and has gained a 32% yoy increase in turnover in 2009. This year it will have over 1,000 licenced projects worth aboutVND98tr / $5.3bn of which 74 are foreign invested worth about $1bn. SGT

070110-Binh Thuan Province welcomed 2.2m tourists in 2009, up 10% year-on-year, including 222,000 foreigners, up 13.7% year-on-year, most of them from Russia, China and Sweden. The province gained nearly VND1.9tr / $102.76m up by 32.8% over 2008. Phan Thiet City attracted a large number of tourists on weekends, festivals and holidays. On these days, occupancy in the city's hotels averaged 54% and occupancy in the city's resorts averaged over 95%. SGT

070110-Viet Nam welcomed 3.8 million foreign visitors last year, a decrease of 11.5% over 2008, but domestic visitors increased by 19% to 25m tourists, according to figures from the VNAT. Total revenue from tourism in 2009 was projected to top VND68-70tr / US$3.68-$3.79bn - up by 10% yoy. The country hopes to receive between 4.5-4.6m foreign visitors and 28m domestic travellers this year. VNN

140110-Da Nang’s tourism sector welcomed 1.35 million tourists to earn VND900bn / $48.7m up 6% in both tourists and revenue yoy on 2008. SGT

150110-According to VNAT the country has around 10,900 tour¬ist accommodations with 215,000 rooms, including around 184 three ¬star standard accommodations of nearly 13,200 rooms, 95 four star standard accommodations of nearly 11,630 rooms and 35 five star standard accommodations of over 8,800 rooms. SGT

190110-Binh Thaun’s tourism in¬dustry has targeted an annual growth rate of over 10% in the 2010- 2015 pe¬riod, but this was a high target. "We received more than 2m tourists last year so the growth rate of over 10% per year is high for the new period.” Binh Thuan attracted 2.2m local and international tourists in 2009 up nearly 10% compared to 2008. Its tourism revenue totaled nearly VND1.9tr / $102.75m up 32.8%year-on-year. SGT

190110-Scott Edelstein, a healthcare counsellor from US-based law firm Squire, Sanders and Dempsey, forecast that the value of global medical tourism would rise to $100 billion in 2012 from $60 billion in 2006. In Thailand around 750,000 people travelled for medical purposes in 2008, according to tourism authorities there. Bumrungrad Hospital, one of the biggest private hos¬pitals in Bangkok, said it treated around 430,000 for¬eign patients a year, from countries including the United States, Japan, Oman and Australia. Just under 350,000 people visited Singapore for treatment in 2007, according to official figures. VNN

200110-The central province of Thua Thien-Hue expects tourism to grow by 20% this year against 2009. In 2009, the province attracted 1.45 million visitors - 780,000 domestic travellers and 650,000 foreign arrivals. The province's tourism sector earned VND1.3 trillion (US$72.2 million) in total revenue in 2009. VNN

240110-HanoiTourist plans to reach a 12-16% growth in 2010. To reach its target, it will concentrate on building new 5 star hotels in Ngoc Khanh and Tran Quang Khai and completing other projects, including Hoan Kiem and Dan Chu 4 star hotels. VNN

100110-According to VNAT as of November 2009 there were 10,900 tourist accommodations including 315No. 3-5 star hotels and resorts with over 33,600 rooms. SGTW

250210-Tourism is a $4.5bn industry in Vietnam and EuroCham says it employs around 10% of the labor force in the service sector, thus making it one of the country’s key employment industries. SGT

270210-While the number of French tourist arrivals to Thai¬land was more than 400,000 per year, it was less than 200,000 to Vietnam, of whom 85% said they would never return to Vietnam for tourism, according to a survey by France-based Interface Tourism Company. Vietnam only attracts 4 million tourists annually, while Indonesia welcomes 6.3 mil¬lion, Malaysia (22 million) and Thailand (15 million) with a tourism spending of $180 billion, or $1,430 per traveler, far more than Vietnam's $3.7 billion, or $974 per traveler. VIR

070310-A project team from Georgetown sug¬gested to set up a convention and visitors bureau (CVB) to drive tourism development, particularly for the MICE segment. The presentation on "Best Practices of San Francisco Con¬vention and Visitors Bureau" said Singapore has excelled in attracting international con¬ventions and events. The evidence is that the country topped the list of international meeting cities in 2008 when it hosted 637 meetings, or 5.75% of the world's meetings. Following Singapore in that year were Paris, Brussels, Vienna, Barcelona, Tokyo, Seoul, Budapest, Copenhagen and London as shown in the team's "Best Practices for Convention and Visitors Bureau" presen¬tation at the seminar. Some East Asian countries have per¬formed well in attracting international conventions and opportunities opened to new entrants, including Vietnam, where experts said had so many to offer to MICE guests. Resorts and beaches along the coast of central Vietnam are among good destinations for them. Vietnam held huge potential for the convention segment as part of MICE, which stands for Meetings, Incentives, Conventions and Exhibitions. MICE guests often traveled in large groups and spent much for high quality services and products so the countries like Singapore, Thailand and Malaysia classified them as very important visitors. Palm Garden Resort on the central coast said that MICE guests accounted for only 12% of the resort's total guests but made a great contribution to the revenue. MICE guests were business¬ persons, government officials and the best employees of companies who were paid for their travel, so their spending on accommodation, food and beverage, entertainment services was higher than normal travelers. The Georgetown team gave an example that a Korean convention attendee's aver¬age expenditure was around US$1,970 with US$645 of which for hotel, US$355 for retail store, US$226 for restaurant, US$182 for entertainment and the rest for other services. SGT

100310-Real estate developers are moving beyond beach resorts to build second homes in mountainous and suburban areas. Most second home projects for sale to date have been developed in the coastal areas of Da Nang, Hoi An, Plan Thiet and Vung Tau. However, developers are now looking to areas surrounding Hanoi and HCMC to provide weekend retreats. The first phase of the Six Senses Saigon River is being developed on 32.5he on the banks of the Dong Nai River in Nhon Trach district, which is close to a cluster of industrial parks, pending mod¬ern townships and an interna-tional airport. This is the first internation¬ally-branded resort residence being developed outside beach resorts. Others such as Hyatt Regency Danang Residences, The Nam Hai and Fusion Alya all have been or are being built in beach resort areas. The first phase of Six Sens¬es Saigon River is designed with 154 condominiums and villas with development cost estimated at $36 million. The 51 villas would be “no less than $1 million per unit". It was actually 20 minutes by speed boat from Bach Dang wharf in the downtown. The Ana Mandara in Hoi An old town will have 30 villas for sale along with 90 condominiums the developers will retain for lease to tourists. In Sapa an 88-room hotel resort will feature 82 villas for sale to local buyers under the long ¬term leases. VIR

160310-Nha Trang is home to 95% of the province's 406 operational hotels and resorts, with 3No. 5 star hotels, 5No. 4 star hotels and 12No. 3 star hotels, with a combined 2,451 rooms, with forecasts for 18 new hotels and resorts including Spring Hotel, Sea and Sun Hotel, Lam My Hotel and Nha Trang Palace. SGT

170310-According to the master plan of golf course development towards 2020 , Vietnam will have 89 golf courses by 2020 out of 166 projects approved by local authorities VIR

230310-Most deluxe hotels in HCMC are happy with the high occupancy now, at around 80%, as the travel business shows vibrant recovery in the 1st Quarter. International arrivals in the city are up 12% yoy. The head of the hotel and travel management division under the city's tourism department said average room occupancy of the city's big hotels is around 70%-80% and Saigontourist said “Some hotels even have the average hotel occupancy rate of up to 90%." The Rex and the Majestic said their occupancy rate is 80% in recent days. SGT

310310-Only 7 of 52 tourism projects on Phu Quoc have begun operations. SGT

030410-The 16km tourist littoral road linking Dien Ngoc of Danang City to Cua Dai Beach-Hoi An of Quang Nam Province has some 20 operational resorts and tourist com¬plexes along it and more than 30 projects of various scales of domestic and international investors are under construction or waiting for licenses. Moreover the road will link with the 23.4km resort road of Danang City to create a "five-star" resort road to attract more guests to Danang City which last year attracted 1.4 million guests, including cruise tourists. In 2010 it targets to wel¬come 2 million visitors. SGTW

030410-The 17km newly renovated Road 706b running from the Pavilion of the Lord to Mui Ne including Mui Ne, Ham Tien and Long Son tourist sites, will help further development of the strip. SGTW

250410-Nha Trang's Incomex Saigon Group project will cover 16 hectares in the city's Vinh Hoa ward. Designed by French architect company Archetype, the oceanfront development con¬sists 235 two-storey villas and is expected to be completed within two years. Land prices start at VND8m / $419sqm and each villa is built on an area of 300-700sqm ie $125k-$293k. VIR

110510-According to the WTO report, in recent years, the world's poorest countries have had far greater tour¬ism growth than developed countries. Tim Bartlett, a WTO consultant, said: "Vietnam is close to the world's 2 star outbound growth markets, China and India. Well over 20% of China s population can be classified as middle class with the means for outbound travel. Even in crisis ridden 2009, Chinese spent a total of US$43.7 billion on outbound travel, a massive 21% increase compared to the previous year. China is sending over 40 million travelers abroad per annum." SGT

180510-Russian visitors currently account for 30% of all foreign visitors to Binh Thuan. VNN

0310-There are 184No. 3 star standard hotels in Vietnam with 13,200 rooms, 95No. 4 ¬star hotels with 11,630 rooms and 35No. 5 star ones with over 8,800 rooms. SGT

060610-HCM City, along with Perth, and Hong Kong, ranked highest for buyer sentiment amongst hotel investors at 45.5% each, followed by Singapore (44.4%), Brisbane (43.2%), Chengdu (42.9%), Tokyo (42.9%) and Sydney (42.6%). VNN

120610-"Theme parks play a very impor¬tant role in boosting tourism," said VNAT and the lack of theme parks had affected the length of stay and spending by tourists in Viet Nam. The current, limited-scale theme parks in the country were not of in¬ternational standards. According to the MPI as of last month, there were 121 registered theme park projects with an investment of US$3.5 billion. HCMC leads the list with 27 projects, followed by Ha Noi with 19, Ba Ria- Vung Tau Province with 11, Binh Thuan Province with 10 and Khanh Hoa Province with 8. "To encourage investment in the field, the Government has promul¬gated a decree in May 2008 that says investors in the sector will pay a cor¬porate income tax (CIT) of 10% and they will also enjoy tax exemp¬tion for the first 4 years and half the rate for the next 5." VNN

010710-In 2009 the tourism industry earned the country over US$4bn accounting for 55% of the service sector despite the number of tourists dropping 10% over 2008. Former deputy head of the General Tourism Department said the industry also brought increased earnings for the transport, food and beverage and retail sectors, adding that the tour¬ism sector ranked 5th on the list of the country's biggest earners following textiles and garments, crude oil, leather shoes and sea¬food. He said that while the first 4 sectors faced decreasing turn¬over and depended heavily on im¬ported materials, the tourism industry's added value was huge. The vice chairman and general secretary of the Viet Nam Economic Associa¬tion calculated that direct income from the industry was $4bn in 2009. "If we take into account indi¬rect incomes brought to transport, culture, commerce, telecommuni¬cations and information, insurance and banking, the figure would be $6bn equaling to 6.5%-7% of the country's GDP." He added that Viet Nam's tourism potential has drawn much attention from foreign investors. He said there were 250 projects invested in the industry with total registered capital of $4.5bn accounting for around 4% of total the country's total projects and 15% of total FDI during the 2001-08 period. Head of the General Tourism Department said in 2009 alone, FDI in tourism had surged, reaching $8.8bn accounting for 41% of total FDI inflows. He said the industry had created about 450,000 direct and 1m indirect jobs in 2009 add¬ing that it promoted the development of aviation, construction, ser¬vices and commerce. VNN

030810-Since 2001 Da Nang has reported 15% annual visitor growth and expects 1.4m this year including 350,000 foreigners, earning more than $55m / VND1tr from tourism. VNN

070810-The Ha Noi Natural Re¬sources and Environment (HNRE) department said there were 19 golf-course projects in the pipeline, of which 8 had been ap¬proved for construction be¬tween now and 2020. Some 4 new golf courses have recently opened in Soc Son, which occupies an area of 110ha; Van Tel, 128ha; Dong Mo, 350ha; and Van Son,192 ha with 4 more courses are under construction. A number of planned golf-course projects have morphed into high-rise apartment buildings. In May, 2010, the 32.1-ha 9 hole Me Tri Sports and Entertainment Com¬plex became a residential housing project, com¬plete with green trees and lakes. VNN

010910-By the end 2009 HCMC had 7 golf course projects covering 725he, down from 13 at end 2008. SGTW

220910-The 2nd Home market had an additional 11,000 villas and 10,000 condos in the 3rd Quarter of this year, 5 & 3 times over the current levels respectively. A majority of these properties are on the central coast of Vietnam. Buyers of such villas initially came from overseas individuals and fund companies, but this had changed with local buyers accounting for a majority. Buyers from Hanoi account for 40%, followed by those from HCMC with 30%. Townsend said the number of foreigners interested in the second¬ home market remained insignifi¬cant despite recent legal changes, about 5% of the buyers. Likewise, overseas Vietnamese make up a slight 10%. Unlike the second-home market in neighboring Thailand where only 18% of second-home sales involve local buyers, buying by locals in the market here in Vietnam represent a staggering 85%. SGT

270910-The tourism industry generates some VND70tr / $3.59bn each year now but is expected to account for 8% of the national GDP by 2020, compared to 4% now ac¬cording to the 11th Tourism Festival. SGT

300910-The ASEAN Tourism Investment Forum held in HCM City said, "The number of tourists to Viet Nam shows a consecutive increase with an average of 10.1% a year for international tourists, and 4.8% for do¬mestic tourists," according to the deputy di¬rector of Institute for Tourism Development Research. Last year, international tour¬ists to Viet Nam decreased by 10% yoy due to the economic crisis. How¬ever, the number of domes¬tic tourists increased from 20 million of 2008 to 25 million. The development of tour¬ism had contributed posi¬tively to socio-economic de¬velopment, with earnings from tourism up from $1.1bn in 2001 to $3.6bn in 2009, with an annual growth rate of 16.6%. According to the General Statistics Office, foreign cur¬rency earnings from tourism reached $4.02 billion in 2008, making tourism the 5th high¬est field in foreign currency earnings (following exports of crude oil, garments, shoes and aquatic products). Tourism created 450.000 di¬rect jobs and 1m indirect jobs by 2009, contributing to poverty alleviation. Total investment capital from the national budget in tourism was $1.8bn in the 2001-07 period. In addition, enterprises have invested an average of $48m yearly into resorts and hotels. Tourism was ranked 4th in sectors that attract FDI invest¬ment in Viet Nam starting in 1988 with a $7.765m project. There were 431 FDI projects totalling $18bn in the pe¬riod of 1988-2008. The explosion of foreign in¬vestment into Viet Nam tour-ism can be seen clearly during the period of 2002-08, with 307 projects and total regis¬tered capital of $15.454bn. "This trend is likely to con¬tinue." FDI companies also created 40,000 direct jobs and tens of thousands of indirect jobs. Last year, there were 65 million international tourists travelling to ASEAN coun¬tries, 1% higher than the previous year, and 59.7% higher than in 2000, in spite of the global eco¬nomic crisis. VNN

231010-The number of Russian tourists visiting Binh Thuan has shot up in the last few years and they now account for 30% of all foreign tourist arrivals. The number of Russian visitors to Mui Ne rose from 17,000 in 2007 to 60,000 in the first 9 months of 2010. VNN

011110-About 6,601 vaca¬tion villas and 5,381 vacation con¬dos will be launched in Vietnam nationwide at the end this year, likened to "a tsunami in the vaca¬tion property market". VIR

041110-The Da Nang Department of Culture, Sports and Tourism said the city attracted nearly 1.6m visi¬tors in the first 10 months of this year - about 110% of this year's target, and up 42% on the same period last year. There were 336,000 inter¬national visitors to the central city, a year-on-year increase of 26%. Total turnover of the tour¬ism industry in the first 10 months of the year was about VND 1.1 trillion (US$56.4m - 103.5% of the year's plan, and up 62% on the same period last year. According to the depart¬ment, 6 cruise ships are ex¬pected to bring more than 5,000 international tourists to the city between now and the end of the year. VNN

101110-The HCMC Dept of Tourism said the city would welcome 3.1m international visitors in this year, up 20% year-on-year, higher than an earlier prediction of 2.8m. Tourism revenue will reach VND41tr / $2.1bn, up 17% year-on-year. The department expects to wel¬come 3.5m foreign visitors in 2011 and hopes to earn VND49tr / $2.51bn. SGT

201110-Shopping accounts for only 20% of each visitor's total spending while they're in the country, while in Thailand the rate is 60%. VNN

231110-Accor announced o partnership with the Benthanh Group that will develop a network of at least 8 economy "Ibis" hotels in the country's major cities. VNN

031210-Thua Thien-Hue welcomed almost 1.4m tourists as of November, an increase of 11.7% against the first 11 months of 2009. The number of foreign tourists had increased 7.9% and the number of foreign deluxe cruise ships docking at the province's Chan May Port had also risen. Tourism revenue was VND774 billion (U5$38.7 million), 20.4% higher than 2009. VNN

051210-Danang has reported the city expects to welcome 1.77m tourists this year, up 33% yoy with tourism revenue to reach nearly VND1.24tr / $63.6m up 39%. There are 55 tourism projects with total capital of nearly US$2.84 billion in the central city, the majority of which were invested by local investors, but foreign investment accounted for US$1.2bn in 10 of them. SGT

171210-Hoi An City in the central province of Quang Nam Province has received over 1.2 million visitors in 2010 or 17% higher than this year's target. The city now has 83 hotels with 3,500 rooms and 19 other accommodation facilities under construction. SGT

211210-Only 65 tourism projects have been developed in Lam Dong Province in the past 5 years while the local government has given licenses to 142 projects. Only19 of the 65 projects have started operating. SGT

241210-HCMC the country's biggest tourism center, will need to build around 6,000No. 3-5 star hotel rooms by 2015 to meet the rising demand of MICE guests. The city received 2.6m for¬eign visitors in 2009 and the figure was earlier forecast to rise to over 2.8m in 2010 but the actual number might be around 3.1 million. Given that growth rate, the Hotel Division of the HCMC Department of Culture, Sports and Tourism has forecast growth of international ar¬rivals in 2009-2015 would be 15% per year to reach over 3.9m visitors by 2015. Around 988,000 of the visi¬tors will come for business purposes. The hotel division said at a meeting early this week, "The 3-5 ¬star hotel rooms make up around 24% of the total rooms, so they are not enough to serve to big MICE (Meetings, Incentives, Conventions and Exhibitions) groups." The city now has 785 hotels with over 24,000 guestrooms, including 68No. 3-5 star hotels with nearly 9,300 rooms. HCMC, according to the division, has around 200 meeting rooms measuring a total of 28,000sqm. Almost all of the rooms are at the standard hotels, and the rest at convention centers such as White Palace, and Saigon Exhibition And Convention Center. As for the hotels, the Windsor Plaza has the biggest number of meeting rooms, at 22 with a total area of 2,700sqm and its grand ball¬room can seat 1,200 people. The Sheraton Saigon Hotel and Towers has 13 meeting rooms cover¬ing a combined 1,500sqm. The seating capacity of its grand ballroom is nearly 1,100 people. MICE organizers often choose 4-5 star hotels for interna¬tional conferences but the meeting rooms that meet requirements for such conferences are insufficient to meet the demand. Rents for the meeting rooms at the 5 star hotels vary depending on locations. The 1,000-seat-plus ballroom at the 5 star hotels in the downtown area costs US$13,500 per day but the rent is a mere US$3,600 for 5 star hotels far from the city center. For the same downtown location, the rents may also be different. A 5 star hotel may charge a 700-seat meeting room at US$3,000 while another 5 star hotel may demand US$6,800 for a 500-seat meeting room. SGT

311210-VNAT announced that the hospitality industry earne

Date : Thursday, 21 January 2010
Category : Socio Economic


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291209-HCMC's public parks and flower gardens cover a mere 535 hectares, just over half the coverage tenyears ago, according to an official of the city Transport Department's Park and Greenery Office. According to the Transport De¬partment, the city's target for 2006¬2010 was 4-5sqm of public parks and gardens per capita but there was only 0.7sqm per capita, far behind the stan¬dards of necessary trees for each person, but that the department was drawing a plan to extend per capita greenery to 4-5sqm by 2025. The city would ex¬pand Gia Dinh Park in Phu Nhuan District by 17.4 hectares and Sta¬tion 2 Park in Thu Duc District by 12 hectares and build six public flower gardens in Go Vap District. SGT

291209-According to the director of the HCMC Transport Dept, the city in 2007 estimated a need for US$26bn to expand roads and public transportation. Today the need is for US$40 billion. According to the department, the city has 4.5m vehicles comprising 404,000 cars and over 4 million motorbikes. Each day, another 115 newly-registered cars and 1,150 new motorbikes are added to the problem. "With the annual increase of pri¬vate vehicles by 15% while the road area is limited, the traffic jams in the city will be more terrible in coming years if the city does not hasten exist¬ing projects.” SGT

301209-Skilled work¬ers earn less than manual labourers, according to a recent report issued by the Ministry of Labour, Invalids and Social Affairs. A new university graduate earned an average of about VND50,000 (US$2.90) daily, while a self-em¬ployed, untrained labourer earned about VND80,000 ($7.90). The Viet Nam Economic Institute said, "There must be something wrong with the wage system if the salary of a university graduate is lower than that of a manual labourer." And the ministry's report also said that average wages generally were insufficient to maintain a reasonable stan¬dard of living in major cities due to the high costs of food, electricity and housing. Agricultural or industrial park workers able to live in their native provinces gener¬ally fared farbetterthan work¬ers in more expensive urban areas, spending an average of VND359,000 ($20) per month in living expenses compared to the VND738,000 ($41) in expenses faced by urban workers, according to 2006 figures. Workers in the agriculture and garment sectors were the lowest paid, averaging from VND1.1 million ($61) to VND1.4 million ($77) a month. while those in avia¬tion, petroleum, finance, mining, and healthcare ser¬vices received wages of VND3.46 million ($192) to VND 13.6 million ($755) per month. The average income of workers in private enter¬prises was also much lower than that of employees of State-owned and foreign-in¬vested companies, averag¬ing 56.6% of the earn¬ings of employees in State ¬owned enterprises and 68.4% of those in the for¬eign-invested sector. The report also found that 20-25% of uni¬versity graduates in the fields of law and business administration ended up accepting work in market¬ing, retail sales, or even as waiters in restaurants. Viet Nam has more than 44 million people at working age, over half of which work in the agricultural sector. VNN

301209-Since its establishment in 1997 the Waste Recycling Fund of HCMC has funded no businesses in the filed. Research has shown that the city produces 6,000 tons of waste a day, of which 1/3rd could be recycled. Urban waste has increased from 0.6 kg per person per day in 1996 to 1 kg per person per day. Most of it has been buried with 15%-20% collected by garbage trucks and sold to small enterprises for recycling. SGT

050110-Gender imbalance will be the biggest challenge for local authorities in years to come as the ratio of male/female infants was 111/100, according to results of the country's national population census 2009.The census also shows people over 15 with profes¬sional training increased by 35% since 1999. Laborers in the agricul¬ture, industry-construction and ser¬vice sectors were 51.5%, 15.4% and 32.8% respectively while they were 69.4%,14.9% and 15.7% in 1999. SGT

130110-In 2008 more than 10,000 people were killed in 11,000 traffic accidents in Vietnam. In Australia with 20m people about 300 were killed. Many drivers appear to have absolutely no knowledge of road rules. They wander all over the roads, stopping whenever and wherever they feel like. They appear out of side streets without ever looking at oncoming traffic, they race through red lights, and regularly drive against oncoming traffic on one-way lanes. Many drivers in Viet Nam seem to lack this basic training, this basic care and respect for other people's safety. VNN

140110-The death toll from traffic accidents declined by 0.7% in 2009 to 11,516, far below the target of 5% the National Traffic Safety Committee announced. There were 12,492 accidents, down 3% in which 7,914 others were also injured. Speeding and driving in wrong lanes were the main causes of accidents in 2009. VNN

200110-HCMC’s green space is shrinking significantly, with just 0.75sqm available per person now compared to 1.6sqm in 2005. The reasons for the shrinkage include rapid population growth and developers' disregard for the city's green-space norms, said the deputy director of the Department of Transport. HCM City's per capita green is extremely low compared with other cities around the world - in Moscow it is 11sq.m and in London, 9sqm. VNN

210110-Vietnam is facing the risk of water shortage with its freshwater reserve of 4,400 cubic meters per capita a year, lower than the world average, said Deputy Prime Minister. SGT

010210-Around 50% of helmets in HCMC have been found to be fake prod¬ucts. SGT

020210-Around 90% of electric cables in Hanoi City have failed to meet safety regulatons said Hanoi Power Company. SGT

050210-Salaries in 2009 – VND
Average Salary – 2.84m / $154 month up 10.08% on 2008
State Owned Enterprises – 3.35m / $181 month up 7.37%
Foreign Invested Enterprises – 2.65m / $143 month up 9.96%
Private Enterprises – 2.05m / $111 month up 10.81%
MoLSA-SGTW

050210-Auto Imports – Units
2007 28,000 – worth over $500m
2008 50,400 – worth over $1bn
2009 76,300 – worth over $1.17bn
SGTW

050210-There are 22.8m Internet users in Vietnam or 26.5% of the population, up 2m yoy. SGTW

080210- Vietnam has entered into 2010 with an ideal population with 2/3rd of it at working age. SGT

220210-At least 738 bridges in the country are in a weak condition, not fit to carry their designed loads according to the Vietnam Road Administrations. VNN

050310-According to the Road and Railway Transportation Police 2009 was a deadly year with over 10,000 people killed in nearly 11,000 traffic accidents nationwide. HCMC new has more than 4 million motor vehicles. VNN

090310-Just 1/3rd of towns nationwide have access to tap water due to increasing urban population and unequal water supply, according to the Ministry of Construction. SGT

120310-The starting salary for workers, says Hepza, is between VND1.28-1.45m / $67-76 only a month. For workers with seniority of several years, the monthly pay remains modest, at some VND1.4-2.5m / $73-131. The Philippines and Laos have the wage level some 20% higher than in Vietnam. Highlighting the unequal labor allocation in the country, unveiling that enterprises in the southern focal economic zone make up 37% of the total number of enterprises but they are using 40.5% of labor. In the Mekong Delta, the number of enterprises accounts for 11.7% ofthe total, but they are using a mere 6.7% ofthe laborforce, although the work force there accounts for 21.5%. Such a situation results in migration. In many provinces, policymak¬ers ignore or fail to anticipate labor demands, allowing industrial parks to spring up without adequate labor preparations. That is not to mention policies of discrimination against migrant workers by setting up barriers relating to residential registration or recruitment. There is a reversal in the migration process, when workers originating from the countryside are returning to their hometowns in rural areas where factories have been being erected recently. Many workers from rural areas see jobs in the city as tempo¬rary, and fret about an uncertain future there, so comes the exodus. Labor movements are occurring according to economic rules, and workers are flocking into those places where they are treated better, so it is time for enterprises to look back at themselves, said the chair of the labor federation of Binh Duong Province. Furthermore, there must be long-term plans for socio-¬economic development including labor allocation so that labor shortage as the acute issue now will not become a chronic problem. SGT

290310-HCMC government plans to reduce the ratio of poor families to 6.6% by the end of 2010. SGT

150410-Decree No. 117 took effect from March 1, allowing for a maximum fine of VND500m / $26,178 or 7 times higher than provided for in the old regulation. The decree is meant to rejuvenate the deteriorating en¬vironment as many companies are ignoring warnings and continuing to discharge untreated waste and wastewater. "Companies fear about being frequently visited by authorities, be-cause they known that faults can be found everywhere at anytime," said the environment manager of the Hiep Phuoc Indus¬trial Park Joint Stock Company. SGT

190410-HCMC needs to set aside some 25,500 hectares of its total natural area for building floodwater draining canals and runoff regula¬tion lakes, otherwise flooding will turn catastrophic in 2025 upon any downpour, said the deputy minister of agriculture at a meeting with irrigation scientists. Over 70% of the city would be submerged under water by any downpour if runoff canals are not expanded he said citing a project prepared by the ministry that the city would have to earmark 25,560 hectares of land for building new canals, plus 8,400 hectares of water regulation lakes at current parks. That means the city has to set aside over 16%, or some one-sixth, of its total natural land for the purpose, he stressed. Some scientists at the meeting expressed their doubt whether the city would be willing to set aside such large areas for building canals and lakes, especially at a time of fast urbanization and development in the city like now. The Southern Irrigation Planning Institute said at the meeting that the area for water drainage in the city currently totals 9,500 hectares, or 4.6% of the city's natural land. The institute said that rainwater should be completely drained out in HCMC 30 minutes after any down¬pour in line with standards for major metropolises in the world. To achieve this goal, there should be some 5,000 pumping machines in the city to quicken the drainage. Deputy Minister however played down the suggestion saying, "It is not feasible to install such a big number of pumps." The city needs to make a prudent calculation to develop canals and lakes to regulate the water flow upon heavy rains. He added that the ministry is also mulling ways to build a system of dikes for protecting not only HCMC but other coastal provinces in the Mekong Delta as well to cushion the impact of higher sea levels in the future. SGT

090510-Currently HCMC’s land fund for transport infrastructure is a modes 7% while it is about 20% in developed countries. VNN

150610-A shortage of treatment facilities and the lack of modern tech¬nology have prevented HCM City from control¬ling the hazardous waste it generates. The city has just 11 facili¬ties to treat hazardous waste treatment. This is vastly insuffi¬cient to net the demand of processing around 600 tonnes of hazardous waste discharged daily in the city. In fact, as little as 30 tonnes of the hazardous waste is collected and treated every day. Around 1,000 tonnes of hazardous waste would be discharged per day in 2015, and this would increase to 1,300 tonnes in 2020. Meanwhile, the low capacity of existing fa¬cilities, at 0.5-4 tonnes per day, is compounded by the problem of outdated tech¬nology. A new hazardous waste treatment facility in Hoc Mon District, the first one with a high treatment capac¬ity of 21 tonnes per day, is still under construction. Furthermore, there is no means of dispos¬ing of the ashes left over after incinerating hazard¬ous waste because there are no safe landfills for burying hazardous waste landfill in the city. The Northwest Solid Waste Treatment Complex has a land fund to set up hazard¬ous waste landfills, but to date the city People's Committee had not approved its use. VNN

160610-Some 61% of HCMC's total area is predicted to be submerged by 2050 due to rising sea levels and other negative impacts of climate change. In 4 decades' time 177 out of 333 communes and wards in the city would be regularly flooded. At the moment, some 154 communes and wards around the city are regularly flooded upon downpours or tidal rise. "HCMC is on a list of 10 cities worldwide most threatened by climate change." SGT

260610-Hanoi has about 3.5m motorbikes and 330,000 cars on its roads. VNN

020710-Around 12-13,000 workers meet labour accidents each year and 10%are killed. SGT

050710-Vietnam's workforce in 2009 totaled around 48.34 million people. Of which, the number of youths aged 15-34 in the workforce was 20.97 million people, accounting for 43.4% of the total workforce. The report esti¬mated that the workforce would continue to expand significantly from 2010 to 2015 at an estimated 1.5% each year, or by 738,000 people. The weak employment generation compared with economic growth in Vietnam is evidence of this challenge. During 2004-2008, the employment elasticity of total employment to total gross domestic product was only 0.28%. That means that for every 1% increase in gross domestic product, employ¬ment grew by only 0.28%. VIR

280710-HCMC's Department of Natural Re¬sources and Environment plans to use Global Position¬ing System to monitor the movements of waste tankers after finding that as much as 80% of household sew¬age was being dumped into rivers and canals. The department said be¬tween 200-240 cubic metres of sewage was being dumped into public water sources ev¬ery day. SGT

030910-The poverty rate in Vietnam will increase from 10% to 13% this year given the new poverty standard said the UN. SGT

090910-Saigon Water Corp has admitted it supplied unclean tap water to many areas in HCMC. SGT

100910-Under Decree 177/2009 environmental polluters are subject to fines of between USD$5,300-USD$26,300. VIR

090910-The income gap has been widening in Vietnam in the meantime. Molisa figures show that the highest income earn¬ers in Hanoi last year, for example, received VND75 million ($3,846) per month, while the lowest income earn¬ers got VND1.8 million ($92) per month. The gap was reported to be much higher in Ho Chi Minh City. VIR

160910-Under national standards, the per capita green tree area should be 7sqm but in HCMC is infact just 0.92sqm per person. VNN

200910-In the first 8 months Mercedes-Benz Vietnam sold 1,656 units with over 1,000 passenger vehicles ie 4.11/day, recording a yoy increase of 13.2%. VNN

240910-Vietnam has spent tens of millions of USD$ to import 29 Rolls-Royce cars in the past 3yrs. SGT

240910-The number of people in the country having jobs will increase from 48.01m in 2009 56.95m in 2020, with jobs moving out of the farm sector and into industry and services sectors, according to MoLISA. In 2020 there will be a population of 96.3m and a workforce of 61.51m. The unemployment rate will not fall from the present 2.5%. VNN

270910-A new poverty line will apply from 2011, which classifies as poor those families who have a monthly income of VND400,000-VND500,000 / $21-26 per person in rural and urban areas. As the new poverty line is revised up, the pro¬portion of poor households will also rise to 15% from the current 10%. SGT

290910-The central coast city of Danang has an¬nounced high development targets for the next 5 years, aiming at an annual gross domestic product growth rate of 13.5%-14.5% to reach a GDP per capita of US$3,200 by 2015. The city boasts an average GDP growth rate of 11% in the 2006-2010 period. The GDP per capita this year is estimated at US$2,015, or 2.2 times higher than that in 2005 and 1.6 times that of the national average. SGT

300910-Air pollution in many areas around HCMC is worsening with the lat¬est examination results showing almost 92% of dust concentration along many streets has exceeded the permissible level by over 7 times. The examination, conducted by the HCMC Environmental Protection Agency, also indicates noise pollution has risen to a worrying level in many places as 78% of the inspected samples fail to meet the standards. For water pollution, the environ¬mental protection agency found that Tan Hoa-Lo Gom remains the heavily polluted canal in the city. Organic concentration in the canal exceeds the permissible level by 5,000 to 11,500 times. The pollution caused by organic concentration in this canal is up 219 times compared to the same period of last year. SGT

161010-It is estimated that the population will increase to 10m in Hanoi and 12m in HCMC by 2030. If the housing standard of 15sqm per capita is applied, the two cities will need some 160m sqm of housing to meet for the demand. SGT

171010-China's average per-capita in¬come for the richest 10% was 65 times that of the poorest 10%, ac¬cording to a Credit Suisse-sponsored study by Chinese economists. Even an official estimate of a 23-fold gap is a stark one for a government pledged to socialist equality. SGT

251010-HCMC saw over VND16.4tr / $841m in public property trading and transfers in the first 9 months. There were over 10,700 public land lots and houses sold in the city ie USD$78,600 each. SGT

251010-Around 26% of HCMC residents are suffering from effects of climate change and the figure may rise to 60% in 2050 according to the Asian Development Bank. SGT

251010-The Government has approved a plan from the labor ministry to raise the poverty line twice as high from next year given strong price increases over the past time. "In this poverty line all the subsistence needs of people, including issues related to food, accommodation, and medical treatment have been taken into calculation.” In the medium term the minimum monthly income will be set at VND450,000 / $23 for rural areas and VND600,000 / $31for urban areas. Social Affairs, said the new poverty line would apply from early 2011, un¬der which those people with monthly income less than VND400,000 / $21in rural areas and VND500,000 / $26 in urban areas will be considered the poor. The current line set it at VND200,000 / $10 per person a month for rural areas and VND260,000 / $13 a month for urban areas. Many experts said that the poverty line from 2011 to 2015 was still too low because the Government did not want to increase the number of people con-sidered the poor. Many cities and provinces are applying a poverty line higher than the national standards, such as HCMC, Binh Duong, Ba Ria-Vung Tau, and Dong Nai, ranging from VND600,000 / $31 to VND800,000 / $41per person per month for rural areas and VND800,000 / $41 - VND1m / $51 per person per month for urban areas. Currently, people under the poverty line benefit from more social security policies such as health insurance, free training and job finding. SGT

251010-According to the General Sta¬tistical Office, the average per capi¬ta income of Hanoians stands at roughly $1,900, an increase of 23% year-on-year. VIR

151110-The rate of overweight and obesity in children under 5 years old in HCMC now stands at around 8.8%, up 400% within the past 10 years, said director of the HCMC Nutrition Center. SGT

161110-HCMC’s land sinking, while confined to its boundaries, will prove intractable if remedies are not taken immediately : - The tidal peak of 1.58m, while not significantly greater than the earlier crest, caused many places in HCM City to be more than lm below water, mainly be¬cause land sinking is accelerating here. Statistics show that 79 out of 116 flooded sites in HCM City are plagued by land sinking. This problem may stem firstly from the alarming rate at which un¬derground water is tapped into. The HCM City Department of Natural Re¬sources and Environment estimates this rate at 750,000 cubic meters per day while experts contend it equals 1.3 million cubic meters, far higher than the rate at which underground water is replenished (200,000 cubic meters per day). "With the exception of the top layer, 5 of the 6 aquifers hold significantly less water. The lay¬ers have relatively deep hollows, too." Evidence of land sinking abounds around drilled wells. Many of these wells in Binh Chanh, Binh Tan and Nha Be districts have seen the sur¬rounding land sink by 30-40cm. In late September, the Geomatics Center from the Vietnam National University of HCM City said that many districts sank by more than 10mm or even 15mm per annum, far higher than the international average of 5mm per annum. The second cause is rapid urban¬ization. As giant construction proj¬ects mushroom, the surrounding area inevitably sink under their sheer weight. Many new urban areas and roads are built 2m or 1.8m above sea level, but are still submerged under tide water. "This suggests the city is sinking." Land sinking was first observed in District 6 in 1996 and has accel¬erated lately. Since 2000, the degree of land sinking has exceeded 0.3m at some places, especially in Binh Chanh, Thu Duc as well as districts 6, 9 and 12. SGTW

311110-Vietnam aims to reduce the poverty rate to 5% of less by the beginning of the next decade from the current estimate of 9.45%. SGT

121210-Vietnam ranks 2nd after Cambodia for cheap labor among Asian nations with the average salary of US$49 per month. Cheap labor is one of factors slowing down the nation's industrial production value growth. SGT

141210-Employers in HCMC will need about 265,000 people next year. Around 45% of the figure is un¬skilled labor, 20% bachelor's degree holders and 35% people at interme¬diate level. The industries that need to employ more staff include electronics, mechanical engineering, textiles, footwear, marketing, finance, banking, fur¬niture, fine art, architecture and construction. The labor market is seen more volatile than the same period last year due to high inflation while pay rises in industrial parks are not in sight. Labor demand of indus¬trial parks in the city next year was forecast at over 30,000 employees, down 50% from this year. This is because the city is restructuring its economy with focus shifted to the high-tech and services sectors. According to General Statistics Of¬fice, there were 271,100 jobs created in the city in January-November, up 1.6% from the same period. In par¬ticular, new jobs numbered 120,600, up 3.3%. SGT

311210-In Vietnam over 31 people have been killed in traffic accidents each day this year. The hair raising figures released at the meeting indicate road traffic crashes have inched up by 1,700 year on year to 14,400 this year, with 11,400 people killed - almost the same as last year and 10,600 others injured - a rise of 2,500. So the traf¬fic safety committee has failed to achieve its target for a 5% reduction in road deaths. SGT

311210-In 2009 some 26m Vietnamese or 30.5% of the population, lived in cities and towns compared to 14.9m or 20.7% in 1995. In 2000 the urban population was 18.8m or 24.2% of the population, and in 2005 some 22.4m or 27%. More than 50% of the ur¬ban population now lives in Ha Noi and HCMC. Meanwhile, the number of cars in 2010 increased by 12.1% over 2009 and the number of mo¬torbikes rose by 10.3%. VNN

050111-Unemployment rate in the coun¬try has fallen by 20 basis points to 2.88% early this month, with the rate in urban areas at 4.43% and that in the countryside at 2.27%. SGT

110111-Last year, there were 184,000 newly registered cars and about 3m motorbikes, an increases of 12.1% and 10.3% respectively against the previous year. There are currently 33m legally registered vehicles on Viet Nam's roads. Of that number, there are 1.3m cars and 31m motorbikes. VNN

190111-There are currently 57,000 foreigners working in Vietnam, 70% of whom have work permits, and 30% working under a visa. SGT

250111-Viet Nam's number of malnourished children under 5 dropped from 18.9% in 2009 to 17.5% in 2010 according to a report from the child malnutrition prevention and control programme. However, the rate remains higher than in neighbouring countries. VNN

260111-Vietnam now has nearly 57,000 foreign laborers, half of which don't have work permits. SGT

150211-Siemens AG has released the overall results of an Asian Green City Index study that show Hanoi in a group of the cities below the aver¬age level of overall environmental sustainability categories. The finding is part of a study by the Econo¬mist Intelligence Unit (EIU) carried out in 22 major Asian cities, including Vietnam's capital city of Hanoi with a focus on environmental and climate protection. The study examined energy and carbon dioxide, land use and build¬ings, transport, waste, water, sanita¬tion, air quality and environmental governance. The survey methodology was developed by the EIU in cooperation with urban experts and representatives of the Organi¬zation for Economic Cooperation and Development, the World Bank and Asia's regional network of local authorities, CITYNET Following Singapore are Hong Kong, Osaka, Seoul, Taipei, Tokyo and Yoko¬hama in the study's 'above average' section. Categorized in the 'average' ranking are Bangkok, Beijing, Delhi, Guangzhou, Jakarta, Kuala Lumpur, Nanjing, Shanghai and Wuhan. Bengaluru, Kolkata, Manila and Mumbai share with Hanoi in the 'below average' of the overall Asian Green City Index results. Only Kara¬chi appears at the bottom and in the 'well below average'. According to the study, Hanoi's best results are 'average' for the en¬ergy and carbon dioxide, air quality and waste because of its relatively low estimated carbon dioxide emis¬sions and efforts to set and monitor standards for air pollution. But the other categories are classified as 'below average' including transport and water; and 'well below average' for land use and buildings, sanitation and environmental governance. SGT

Date : Monday, 29 November 1999
Category : Realty - HCMC Resy


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280710-The pre-sale mar¬ket in the 2nd Quarter witnessed some 7,000 units launched with upto 85% of the new stock is priced from US$550-US$1,000/sqm. An absorption rate of 36% has been recorded, showing a gradual recovery in the low end segment. SGT

050810-The total housing construction area in HCMC in the com¬ing 5 years (2011-2015) will increase by 20% compared to the 2006-¬2010 period. Part of the new housing projects will aim to meet in¬creasing demand for re¬settlement of people living along the canals and other waterways, as well as those affected by the city's urban development projects. Under the HCM City Housing Development Programme for the 2011-¬2015 period, an additional 39m sqm of housing will be built, increasing the average floor-space per person in the city to 26.9sqm. However, the Department of Construction figures as saying until now, site clearance and resettlement has taken place for just 7.358 households, or 49.1% of the plan. The city needs a large number of resettlement homes for eliminating the shacks that have been built along the canals. Apart from resettlement houses, the city has to pro¬vide accommodation for 72,000 students, and needs 500,000sqm of housing for workers who work in its industrial and export process¬ing zones. The construction of new apartment buildings to re¬place many downgraded ones has also become nec¬essary. The city plans to build apartment buildings cover¬ing an area of 350,000sqm in the next 5 year pe¬riod, the report says. VNN

050810-A 2nd Quarter survey show high demand for me¬dium-price housing with 3,455 mid-range apartments from 6 projects just completed, 17 ongo¬ing projects are offering apartments for sale and 8 other projects are un¬der construction. These apartments are being sold for US$600-800/sqm. VNN

070810-Many luxury apart¬ment buildings in outer-city districts have attracted investors and buy¬ers in recent months because of af¬fordable prices and attractive loans from banks. Banks have been offering attrac¬tive mortgage terms to buyers. Under these contracts, buyers pay only 30% of the apart¬ment value in advance, with the remainder paid over 20-25 years. The price was between VND13-17m / US$684-894sqm. An apartment with an area of 52-¬100sqm sells for around VND1bn / $52,631, a price that is affordable for middle-income households. VNN

180910-There were some 11,200 apartments available for sale in the HCM City primary market in the 2nd Quarter of this year when 14 new projects with some 3,100 apartments were launched. The af¬fordable segment accounted for 74% of approximately 2,200 apartments ab¬sorbed in the market during the sec¬ond quarter. A market observer estimates that some 28,500 apartments will be launched in 2010 to 2012. SGTW

200910-The times have changed in the property market from two years ago when buyers would rush to buy up whatever was available at new housing projects. Another change over the past few years is that prospective buyers want to see the finished product now be¬fore they invest their money, instead of just seeing the plans. Total supply for the first 8 months of this year was around 11,200 units, of which the affordable apartment segment accounted for 76% of the total supply. Districts 2 and 7 had the most new units with nearly2,000 and 1,900 units respectively. Some 46 condo projects totaling some 8,500 units were launched in the last 8 months, with prices ranging from US$780 to US$810sqm. But demand remained low in all grades. The uptake rate of the grade A seg¬ment was 14%, grade B segment was 17% and grade C was around 20%. People attribute the low take-up rates to prices that don't match what homebuyers can afford and fewer chances for speculation. In addition, unrealistic loan criteria for end-users were another dis¬couraging element. There are some 28,500 apartments still in planning that will complete before 2012. Therefore, many project developers, who have condo projects with prices below VND20m / $1,026sqm. For example, Thuduc House launched 120 apartments at Thuduc House project, one of five condo projects targeting middle-income earners. All the apartments sold with prices starting from VND15.5m / $795sqm within a short time. In another project, Van Phat Hung Corporation plans to test the market with some 110 apartments priced from US$1,000 (VND19.5 million) per sqm. Its La Casa condo project on Hoang Quoc Viet and Dao Tri some 8km from the heart of HCMC. When in place in the next 5 years, the project will provide some 2,000 apartments. Some other affordable projects southwest of the city are underway and will be ready soon. They include Terra Rosa, Dai Thanh, Tan Tao 1, Carina and Happy Plaza which offer some 600 apartments. SGT

220910-InterContinental Asiana Saigon Residences since opening on Sep¬tember 9, 2009 has experienced good business results about three-quarters occupancy already. VIR

220910-Ascott said that in the 1st Half of this year, occupancies for our Somerset ser¬viced residences recovered to reach between mid-80% and 90%. SGT

041009-The HCMC Department of Construction has permit¬ted 5 investors to develop low-cost housing projects offering over 6,300 condos for 22,000 residents. Two of the projects have started with combined capital of VND543bn / $27.8m for 850 flats. SGT

081010-So far in 2010 some 46 development projects with 8,550 apart¬ments costing an average of VND15.5m / $795sqm came into the market. Among those are Happy Plaza in Binh Chanh District which consists of 600 apart¬ments priced at VND12.5-13.5m / $642-692sqm with an av¬erage size of 60sqm and the Truong Tho apartment project at an average price of VND15.5m / $795sqm. Small apartments priced at VND400m-800m / $20,513-$41,026 are the most in demand with 80% of suc¬cessful housing transactions are in the medium and low¬ cost segment. VNN

091010-The total primary supply of apartments for sale reached a record almost 16,600 units by the end of September, nearly 3 times the number from a year earlier. Nearly 7,200 of them came into the market in the 3rd Quarter against 3,200 in the 2nd Quarter and 2,900 in 1st Quarter. The grade C segment saw the highest number of new projects, with the majority of them located in Tan Phu, Binh Chanh, and Binh Tan Districts. The 3rd Quarter also saw the highest number of apartments sold in the pri¬mary market - at approxi¬mately 4,400 units, it was equal to total sales in the previous 2 quarter. The majority of them, around 80% were grade C units. Demand mainly came from the segment priced be¬low US$1,000/sqm with nearly 3,300 units. In five years since 2004, around 1.6 million people have migrated to the south¬eastern area of Viet Nam, with a million coming to HCM City alone. Demand is expected to remain strong in the smaller sized segment where apart¬ments cost VND800 million¬ VND 1.5 billion ($42,000 - $79,000). A further 26 projects are expected to launch in the next 2 quarters and will of¬fer around 10,000 units. In the next 2 years 104,000 more apartments are expected to be built and put for sale. VNN


091010-There are approxi¬mately 2,950 serviced apart¬ments in all grades from A to C for lease in the city. The number of units rose by 6% q-o-q. In this, the market share of Districts 1 and 3 was 62%. District 1 ranked first with 1,500 units. With no new projects completed in Q3, the pri¬mary market remained un¬changed at 8 projects and approximately 800 units. Almost 490 villas and houses were sold. The aver¬age price of villa land ranged from $1,500 to $2,500 per square metre. Phu My Hung New Ur¬ban Area in District 7 accounted for 70% of the villas and houses that came into the secondary market and had an average price of $600,000-$2.8 mil¬lion. The market is expected to add at least 9,500 villas and townhouses in the next few years. VNN

111010-Setia Becamex JSC, developer of EcoLakes My Phuoc in Binh Duong Province, has launched the so-called EcoLakes 30/70 Homes Plan, requir¬ing homebuyers pay 30% of the price in installments and get a loan for the balance. Homebuyers will not be charged interest during construction until their properties are completed and handed over. The company said the current high interest rate is a burden for many homebuyers, making many people feel hesitate whether to take out a loan for buying a property. The program will help buyers save from VND70-200m / $3,590-$10,256 once they buy properties in the project. The Malaysian developer plans to launch 227 villas and row houses with prices starting from VND3.3bn / $169,250 and VND1.2bn / $61,500 respectively in the coming time. In another project, Tin Nghia Corporation in Dong Nai Province has slashed prices by between 20% and 50% for a residential project in Bien Hoa City's Tan Bien Ward in the southern province. Some 100 villas and row houses from 200-250sqm are offered at VND797m / $40,872 per unit. SGT

081010-Tin Nghia Group has launched the sale of 100 houses in a residential area in Tan Bien Ward in Bien Hoa City with discounts of 20% to 50%. These homes sell for around VND800m / $41,026 each. SGT

111010-Low-income people living in HCMC will be offered preferential loans up to VND400m / $20,513 to buy houses. The loan is provided by the city's Housing Development Fund with the term of 15 years at most. SGT

121010-HCMC targets building 39m sqm of new housing during the 2011-15 period, increasing its per capita housing area to 17sqm. The 2009 per capita housing area in the city was 14.3sqm. By the end of 2015, the city will complete 11 housing projects with a total floor area of 453,000sqm consisting of nearly 4,700 apartments. More than 22 hectares will be set aside for developing seven low-income housing projects with 10,000 apartments having a combined floor area of 837,000sqm. These plans include nine projects that will accommodate 67,700 workers and 13,700 stu¬dents. VNN

261010-Futaland has launched the sale of 30 flats in the New Pearl Residence project at US$4,800-5,100/sqm. The 120-unit project that has won the award for "Asia-Pacific best architecture design for apartment" covers 2,200sqm and has 18 floors and 2 basements. SGT

161010-Market demand picked up in the 3rd Quarter as it witnessed the highest number of apartments absorbed in the pri¬mary market at around 4,400 units, equivalent to the total absorption over the first 6 months of this year. The majority of these units were af¬fordable apartments, accounting for some 80%. In the past 3 months, the market has recorded average primary prices offered atUS$2,041sqm for high-end apartments, US$1,550sqm for mid-end ones and US$773sqm for affordable ones. The total pri¬mary supply of apartments in HCMC in the year to date has increased to a record of 16,600 apartments, nearly triple the same period last year. Some 20 projects with 7,200 apartments entered the market in the 3rd Quarter, a strong supply compared not only to the previous quarter at 3,200 units and the 1st Quarter at 2,900 units but also to the same period last year at 3,500 units. Among the proj-ects launched in the 3rd Quarter, none of them were in districts 1, 2, 3, or 7, thus reflecting the scarcity of reasonably priced land in these districts. City Garden project on Ngo Tat To in Binh Thanh was officially launched after a year of preparation for the project's foun-dation construction. The project includes 6 blocks of 21 to 30 floors, with 927 apartments from 1-3 bedrooms, and penthouses. The 1st Phase features some 450 apartments with prices rang¬ing from US$1,830-US$2,700/sqm. In another project, Binh Thien An Property JSC’s Diamond Island Sky Resort in District 2 offered some 250 among 700 apartments at US3,500-US$5,000/sqm. Luxury and high ¬end condominium projects closer to the city center are facing competi¬tion from villas and townhouses in suburban districts, such as districts 9 and Nha Be. There are 26 projects expected to launch some 10,300 units in the next 2 Quarters, and the market may see an additional 104,000 units entering the market in the next few years from 2011 to 2013 and beyond. SGT

211010-Diamond Island is a US$350m luxury residen¬tial complex on a hill with an area of 8 hectares in District 2. The project comprises four buildings with 250 apartments of 80-1,000sqm with prices of US$3,500-5,000/sqm, villas, a hotel and service facilities. SGT

211010-Some 12 affordable projects were launched in the 3rd Quarter with asking prices ranging between $563-$923sqm. These projects were in Districts 1, 2, 3, or 7, reflecting the scarcity of land at affordable prices. While no luxury projects were launched in the 3rd Quarter some 4 new high-end projects were launched with asking prices rang¬ing between $1,300-$1,888sqm. VIR

211010-There are 53 serviced apartment buildings of all grades supplying about 2,950 apartments for lease in HCMC. The number of units in 2010's 3rd Quarter increased 6% quarter ¬on quarter. Thus, the overall occupancy in the 3rd Quarter saw a decrease of 3% to 88% quarter ¬on quarter. The average rent was at $23.6sqm, decreasing approximately 3% quarter-on-quarter. There will be 20 future projects opening from the 4th Quarter to 2013 with more than 1,400 units, mainly concen¬trated in the central districts but also expanding to Districts 2, 7, 10, Tan Binh and Phu Nhuan. District 7's Crescent Residence project with 297 units will have the biggest supply in the serviced apartment market when the Crescent Residence 2 opens in the 4th Quarter of 2010 with 111 units. VIR

221010-The affordable condo project named Binh Tri Dong B on Ten Lua in Binh Tan covers some 6.5 hectares and is designed with 104 garden houses, 31 row houses and three 12-story buildings with 352 apartments measuring 52-75sqm each. The developer said those apart-ments would be offered at VND 10.5m / $538sqm. The total value starting from around VND550m / $28,205 per apartment is believed within the reach of many people, especially white-collar workers. The company is offering loans with a down payment made within 20 years. 2012.

221010-TDC Plaza in Binh Duong is some 35kmfrom HCMC costing $51.3m for development and designed with 5 blocks of buildings with 779 apartments from 82-117sqm with prices rang¬ing from VND15-16m / $769-$821sqm. SGT

291010-Villa Park project in HCMC's District 9 includes 213 villas costing from VND4.68.2bn / $240k-$420k each. SGT

041110-There are 3,300 serviced-apartment units in the city and the figure is expected to rise by 400 this year and a further 800 in 2011. VNN

091110-Ascott manages some 820 serviced apartments and is on track to expand its business to 1,300 from 8 properties across 4 cities, including HCMC, Hanoi and Haiphong, in the years to come. SGT

091110-Asking rents increasing slightly across all grades in the 3rd Quarter at US$31sqm per month for Grade A, US$26sqm for Grade B and US$18sqm for Grade C serviced apartment buildings. Demand returned at the top mar¬ket as it achieved 90% occupancy; Grade B was rising with 80%; and Grade C enjoyed 85% occupancy. The market saw new stylist boutique players such as La Fayette De Saigon, IWA Square in District 1 and Glenwood in District 2. Landlords have become more flex¬ible in attracting tenants by offering weekly and daily rates. There are some 3,000 serviced apartments for lease in HCMC, and the supply is expected to double within the next 3 years. SGT

151110-HCMC has seen its total housing area reaching 94.3m sqm, or 15sqm per capita, up nearly 44% compared to 1975. SGT

221110-Thu Duc House’s lucky draw for TDH Truong Tho apartment building in HCMC's Thu Duc offered a 10% to 25% in a promotion discount worth some VND5bn / $256,400. The company continues to launch 54 apartments with prices starting from VND15m / $769sqm. SGT

231110-Intercontinental Asiana Saigon Residences has an occupancy rate of over 80% after more than one year of opening and expected the occupancy rate to be 95% or above before the end of 2010. SGT

291110-Property trading in HCMC has declined compared to previous years due to gold price hikes, land policy problems and excess condo supplies. Customers are only interested in condos ranging from VND10-13m / $513-667sqm. SGT

051210-Van Phat Hung Corporation has launched 162 apartments at La Casa with the average price at VND20m / $1,026sqm. The housing project is developed on some 6 hectares at Phu Thuan Ward in HCMC's District 7. It is designed with 10 blocks of 25-35-storey buildings with some 1,950 apartments. Besides it includes sections for hotel, office, serviced apartments, commercial center and other serviced facilities. SGT

121210-Since it slid into recession over two years ago, the lo¬cal property market has not fully covered as transactions remain dismal. Selling prices have not been slashed as seen before but many condo project developers are fight¬ing to attract customers through big promotions, lucky draws and loan interest support. There were some 13,200 apartments launched in HCMC in the first 3 Quarters of 2010 but some 8,500 of them were sold. It is projected that 26 condo projects would bring to the market another 10,000 units in the next six months, thus worsening the oversupply problem. SGT

121210-Gia Phu Land’s low-cost condo project in Thu Duc cost some VND200bn / $10.3m for a 14 story build¬ing with 156 apartments of 53-79sqm ie 65,750 each. The apartments will be offered at VND12.9m / $662sqm and payments will be made in 9 installments in line with the con¬struction process. SGT

271210-Hai Thanh and Xuan Mai Vinaconex’s low-cost apartment project in Binh Tan with a $11.9m budget to build 3 blocks of 12-storey buildings with 352 apartments of 52-75sqm each at a 5,800sqm site was targeting middle-income people, young families and office workers. The price ranges from VND10.5m-12.2m / $538-626sqm or around VND550m-900m / $28,200-$46,200 per unit, Hong said. Half of the apartments have been sold out. These apartment buildings are part of a project which covers some 6.5he and consists of 104 garden houses, 31 row houses, commercial services facility and school. SGT

110111-Many project developers in HCMC have adopted aggressive marketing campaigns including loan interest rate support to make the market move. The market has been in a practical standstill in terms of sales perfor¬mance, with few actual transactions by end-users recorded during the last quarter. There were some 3,800 apartments launched into the market last quar¬ter, in which affordable apartments, with an average price at VND15.4m / $790sqm accounted for 65%. But interest rates increased as high as 18-20%, making it difficult for many developers and home buyers to obtain bank loans. There will be a new supply of 40,000 units set to come onto the market this year. SGT

150111-HCMC had around 17,000 condos for sales in the 4th Quarter of 2010, ris¬ing by 25% against the previous quarter and 70% year-on-year. Grade C condos made up around 80% of the supply. SGT

200111-The total primary supply of apart¬ments in HCMC in the 3rd Quarter of 2010 was 16,600 apartments, in which absorption accounted for half of the supplied apartments. The next 2 Quarters will see 26 condo projects launched with some 10,300 units, and 104,000 more units of ad¬ditional supply are expected in the next few years. SGTW

090211-The so called affordable apartment sector is priced between VND15-18m/sqm ie $769-$923. SGT

140211-With sup¬ply of apartments in HCM City outstripping demand, prices are likely to fall this year. In an analysis of the market it said though apart¬ment prices have fallen by more than 30% from its peak in 2007. They re¬main high compared to av¬erage incomes of people looking to buy them to re¬side, pushing down de¬mand. Around 20,000 apart¬ments are expected to hit the market this year. 40,000 other units in hundreds of projects that have already been launched remain unsold. Besides, many small in¬vestors are expected to sell apartments they bought in the last year or two as they fear a further erosion in their value. In all, around 70,000 units are expected to be available in the market this year. According to real-estate consultancy Vietree, sales of apartments worth up to VND12m / $615sqm in outlying districts like Binh Chanh, Binh Tan, and Thu Duc are better than other segments. Many developers are now focusing on such projects. The mid-end segment - costing VND22m / $1,100) upward - has wit¬nessed an increase in sup¬ply but a fall in demand. High-end apartments priced at $1,500 have few takers. With demand plunging, many developers are offer¬ing promotions like free furniture for home buyers and 4% interest sub¬sidy on bank loans. Many high-end projects are cutting prices. A devel¬oper in Sai Gon South for instance, recently sold to a big investor, who bought 5 to 7 apartments, at 70% of the earlier price. VNN

150211-Local property developer Vina Complex Company Ltd yesterday started marketing its first small-size condo project under construction in HCMC's Tan Binh. The company said it had invested some VND40 billion $1.9m to develop Vinacomplex III with 8 floors having 19 apartments of 40 to 64sqm and a section for office space. Deposits had been placed for 6 of the 19 apartments. The apartments cost some VND19m / $908sqm or some VND760m / $36,329 per unit, inclusive of tax and interior furnishing. Vina Complex is joining hands with Techcombank to offer loans equivalent to some 70% of the value of an apartment and the term of the loan is up to 20 years. This is the first mini-apartment project to be launched in HCMC since Decree 71 /2010/ND-CP that allows individuals to develop private apartments in existing resi¬dential areas came into force last October. Families and individuals can develop a residential building provided that there are at least two stories and that each story has at least two units as large as 30 square meters designed with facilities such as bedroom, kitchen and bathroom. The decree, for the first time, allows the issuing of ownership certificates for mini condos and the transfer of such homes just as commercial ones. There have been mixed reactions to the new rule, with some supporting it and oth¬ers expressing concerns over urban plan¬ning, but it might be welcomed by many people who cannot afford to buy homes at bigger projects. That the new rule does not require mini apartments to be transacted on a certain property exchange center make it easy for developers to sell their apartments. Vina Complex Company said it would continue to develop three more small-size condo projects in the city. SGT

160211-In Ho Chi Minh City, the secondary supply rose to approximately 55,000 units, while in the long term approximately 105,000 apartments for sale will com¬plete construction in the period from 2011 to 2013 and beyond. Ho Chi Minh City's 2011 total apartments will be 120,000 units, among them there will be 40,621 units from 79 commercial projects poured into primary market. Besides commercial housing projects, social housing will be a strong future trend in 2011. There would be 70,000 social housing units handed over this year to meet the demand of thou¬sands of low-income resi¬dents. The huge figures, accom¬panied with the gloomy sta¬tus of the market at the end of last year made many peo¬ple working in the realty field worry about a saturated market. Futaland, said: "Ho Chi Minh City will absolutely see an oversupply of mid and high-end condo¬miniums this year." Most of future projects had the same design and were expected to be offered at VND15-16 mil¬lion ($724-$772) per square metre while in practice, apartment projects offered at around VND12-13 million ($579-$628) per square metre still found no cus¬tomers. "In fact, most of Ho Ch Minh City residents can only pay VND8-9 million ($386¬ $435) per square metre.VIR

Date : Sunday, 04 October 2009
Category : Industrial


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PwC Emerging Markets Manufacturing & Services Indices (July 2007)

Rank Country Index Value
1 Egypt 95
2 Bulgaria 93
3 Serbia 88
4 India 86
5 Vietnam 85
6 Peru 85
7 Romania 85
8 Ukraine 84
9 Chile 83
10 Turkey 83
11 Thailand 82
12 Brazil 82
13 Malaysia 81
14 China 81
15 Poland 81
16 Philippines 80
17 Indonesia 80
18 Russia 79
19 South Africa 78
20 Mexico 78

Rank Country Index Value
1 Poland 95
2 Chile 95
3 Russia 93
4 Romania 93
5 Bulgaria 93
6 Slovakia 91
7 Serbia 89
8 Brazil 87
9 Malaysia 87
10 Turkey 87
11 Mexico 86
12 Kazakhstan 86
13 South Africa 84
14 Egypt 84
15 Thailand 83
16 China 83
17 Ukraine 83
18 Iran 83
19 Peru 82
20 India 80

050808-Haiphong is emerging as one of the most attractive destinations for industri¬al park developers as high rents and few vacancies in Hanoi are forcing manu¬facturers to look to surrounding areas. Such big names in industrial park development as Sembcorp, Foxconn and Saigon Invest Group are proposing large facilities in the northern port city. These projects were among 13 industrial parks the government approved earlier this year for the port city to build. These parks will occupy 8,157ha. Haiphong is the main seaport in northern Vietnam, handling more than 14 million tonnes of cargo in the first half of this year. High rents and little vacancy in Hanoi's industrial parks are also forcing manufacturers to look at surrounding areas and Haiphong appears on the screen. Land rents in Hanoi's parks have reached up to $150 per square metre for a lifespan of 38 years. In the first quar¬ter, the Sai Dong B and South Thang Long in the capital city recorded land rents of $125 and $100 per square metre for 41 years and 44 years respectively. Land rents in industrial parks in Haphong have grown 20% over the last quarter to reach $45 to $85 per square metre. The 153ha Nomura Industrial Park has been fully occupied. All 164ha in the first phase of Dinh Vu park has been leased and the developer, Dinh Vu Industrial Park Joint Stock Company, has recently received investment certifi¬cate to pour $147 million to build infra¬structure on 377ha in the 2nd Phase. By the end of June, the park attract¬ed 24 companies operating in petro¬chemical and heavy industries with total registered investment of $900 million. VIR

IPs to be established in Haiphong

Nam Trang Cat 1,000he
Thuy Nguyen 1,000he
An Duong 800he
Nam Dinh Vu 1,200he
An Hung-Dai Ban 450he
Tien Thanh-Tien Lang 450he
Giang Bien II-Vinh Bao 400he
Vinh Quang -Vinh Bao 350he
An Hoa-Vinh Bao 200he
Ngu Phuc-Kien Thuy 450he
Vinh Quang-Tien Lang 1,000he
Nam Cau Kien 457he
Trang Due 400he

180808-Foreign investment into Vietnam's industrial parks and export processing zones has slowed despite recent surges of capital inflow into the country. The MPI’s Industrial and Export Processing Zones Management Department figures reveal that industrial zones (IZs) across the nation received $4.03 billion from 227 newly-registered for¬eign-invested projects and 201 expanded projects between January-July. The zones were house to 3,305 foreign direct invest¬ment (FDI) projects worth $33.8 billion, or 26% of the total registered FDI in Vietnam by the end of July. The $4.03 billion paled in comparison to Viet¬nam's total $45.3 billion in newly pledged and expanded FDI over the first 7 months of this year. Occupancy rates at IZs are a great con¬cern since figures show that 110 IZs across Viet¬nam have an average occupancy rate of 74% while 76 new ones are being built. Dong Nai is the nation's leading location for IZs with 18 operating zones and 9 under construction, followed by Binh Duong with 14 and 8 respectively, and Ho Chi Minh City with 12 and 3 respectively. Vietnam would develop 113 new IZs and have 27 expanded zones by 2015. VIR

050908-In the first 8 months of the year Viet Nam's industrial zones (IZs) attracted 254 new foreign investment projects, accounting for $9 billion of the foreign direct investment (FDI). IZs attracted more than 3,300 foreign investment projects so far this year, with $38.9 billion in total investment capital. VNN

100908-Some projects aimed to build accommodations for 9,000 workers of export processing and industrial zones in HCMC have yet to get off ground although these projects have been planned and assigned to investors since 2006, SGT

190908-Ho Chi Minh City is rolling out its broad industrial park vision. In addition to 3 export processing zones and 12 industrial parks totalling 2,354 hectares, the new industrial parks are Dong Nam (338ha), Vinh Loc III (200ha), Phuoc Hiep (200ha), Bau Dung (175ha) and Xuan Thoi (300ha). HEPZA have agreed to a reduced the size of Tan Tao, Hiep Phuoc, Tan Binh, Tan Thoi Hiep and Phu Huu IPs because the compensation of displaced people had met with trouble. The MoC also approved a proposal to take Cat Lai IP off the list of planned pro¬jects, increase the area of Vinh Loc I IP from 207ha to 259ha, Hiep Phuoc IP to 1,500ha and Tay Bac Cu Chi IP to 380ha. Excluding 5 new IPs to be established, apart from Phu Trung and Phong Phu IPs whose infrastructure is under construction, much land is still available to be rented and other parks have as much as 60-92% of their land occupied by ten¬ants. In 2004 the government promulgated Decision 188 on the city's industrial develop¬ment to 2020, specifying that the land available for parks and zones was 7,000ha, of which 4,000ha was in use. Then the Ho Chi Minh City People's Committee on July 31, 2007 issued a deci¬sion to develop parks to 2020 and towards 2025. Also under a development roadmap to 2020, the city planned on having 23 parks and zones. In a short-term develop¬ment stage to 2015, about 3,800-4,000ha will be devel¬oped and brought into opera¬tion, or about 60% of land for concentrated parks in the city. VIR

190908-Leaders of Dong Nai Prov¬ince in a meeting yesterday okayed a proposal to stop calling for new investments into 16 IP where wastewater facili¬ties are still not available in the wake of the Vedan Vietnam environment scandal. The southern province expected to delay accepting new projects into 11 IPs without wastewater treatment facilities and 5 other IPs where the treatment facilities have become overloaded. IP developers will be also forced to complete and upgrade the waste¬water facilities this year or have their development licenses revoked. According to the department, these 16 IPs every day discharge some 37,800 cubic meters of un¬treated wastewater into the rivers, canals and residential areas, aggra¬vating the environmental pollution there for years. Even though these 16 IPs were some 60°% full, the province was determined to apply aggressive mea¬sures to protect the environment. There are currently 27 IPs in Dong Nai, excluding 2 new IPs namely Dau Giay and Giang Dien that have just been approved by the Govern¬ment. However, only 11 IPs have common wastewater treatment facilities. The 11 IPs that still have no master wastewater facilities are Agtex - Long Binh, Ho Nai, Song May, Bau Xeo, Nhon Trach 2, Thanh Phu, Ong Keo, Xuan Loc, Nhon Trach 5, Dinh Quan and Nhon Trach Garment Industrial Park. "For the moment, we are consid-ering to shut down three IPs com¬prising Ho Nai, Thanh Phu and Ong Keo because the developers have been very slow in building treatment facilities. The developer of Ho Nai IP has promised to complete the facility by early 2010, but of course we definitely do not accept that." Ho Nai IP currently discharges some 3,500 cubic meters of un¬treated wastewater a day into nearby canals and rivers. SGT

260908-The PM has approved a project on to make master plans for coastal economic zones in the country in the long term. As ex¬pected, 15 coastal economic zones will be developed between now and 2020, including : Van Don (Quang Ninh); Dinh Vu-Cat Hai (Hai Phong); Nghi Son (Thanh Hoa); South-eastern Nghe An (Nghe An); Vung Ang (Ha Tinh), Hon La (Quang Binh); Chan May-Lang Co (ThiiaThien-Hue); Chu Lai (Quang Nam); Dung Quat (Quang Ngai); Nhon Hoi (Binh Dinh); Nam Phu Yen (Phu Yen); Van Phong (Khanh Hoa); Phu Quoc (Klen Giang); Dinh An (Tra Vinh) and Nam Can (Ca Mau). VNN

011008-The number of industrial parks (IPs) in the southern province of Dong Nai has been growing fast, with 2 new IPs - Giang Dien (530 hectares) and Dau Giay (33 hectares) - set up last month. The province now has 29 IPs covering a combined 9,000 hectares. SGT

021008-According to the Ministry of Industry and Trade some 1,643 industrial complexes have been approved by provincial People’s Committees to 2020 covering a total of 73,000 hectares. Some 80% of industrial complexes are managed by district People’s Committees, while others by industrial zone management boards or offices. Enterprises inside these industrial complexes have to build their own infrastructure. As a result, many of them lack waste water processing facilities, causing serious environmental concerns. VNN

101108-In late 2008, the government approved t 2nd Phase of the IP covering 97 hectares and worth about USD$114 million and ex¬pected to be operational by 2015. The developer is Tan Thuan Indus-trial Development Company. SGT

121108-Dong Quang Textile in Duc Hoa in Long An has built 374 room worker dormitory with canteen and retail store worth $2.39m with each room of 4 rented at $18/month ie $6,700/mth or $80k pa ie 3.33% yield and $6,400/room to build. SGT

151108-In the Dung Quat Economic Zone in Quang Ngai Province, where the country's first oil refinery will be brought into operation early next year of the 12 foreign-invested projects in Dung Quat, only 2 projects, or 8 per cent of the total capital in this economic zone, have become operational. To minimise the waste of land in economic zones, the provincial authorities have issued strong measures. Since 2007, Quang Nam Province has revoked 31 investment licences. Thua Thien-Hue has revoked 29 licences and over 1,000 ha of land. Da Nang and Phu Yen have taken similar action. VNN

151108-MPI statistics show that by the end of October 2008, there were 194 IPs across Vietnam, com¬prising 110 operational IPs and 84 sites under construction. IPs provide manufactur¬ing bases for 3,325 foreign¬ invested projects worth $39.3 billion and 3,082 domestically-invested pro¬jects worth in excess of $1 billion. The number of IP workers had grown to more than 1 million some three-quarters of whom are in urgent need of accommo¬dation. Actually, only 10% of the IP workers can get access to the accommodation provided by the local governments and enterprises, leaving roughly 90% to find accommo¬dation themselves. VIR

221108-The Cuu Long (Mekong) Delta is facing serious environmental threats, as an increasing number of IZs is leading to escalat¬ing levels of pollution. The delta now has 20 IZs and 177 industrial com¬plexes. While production may be weak, environmental pollution is at alarming levels in the region. Delta provinces have been de¬veloping their IZs by offering cheap labour, mostly manual. Almost no sup¬porting industries were being developed, leading to few jobs for locals, many of which were displaced for the projects. Rural lifestyles, after being disrupted for these projects, has therefore seen little improve¬ment. Among the 20 IZs in the delta, Long An has 8, Can Tho has 3, Tien Giang has 2, and each of the other provinces has 1 industrial zone. The construction of infrastruc¬ture has been slow, and services have also proven weak. For example, the 360-ha Khanh An Industrial Zone in Ca Mau Province, which is conve¬niently located near the Ca Mau gas-electricity-fertiliser complex, has been established since 2003. However, the 11 km road needed to link the IZ with Ca Mau City has yet to be completed. Poor infrastructure is a main rea¬son this delta region has difficul¬ties attracting investors. According to statistics, from 1988 to 2008, foreign direct in-vestment in the delta increased by just US$2.3 billion, accounting for 2.96% of the entire country. In comparison, invest¬ment into the Hong (Red) River Delta gained more than $20 bil¬lion, and the south-eastern region gained $42.34 billion. As locals receive limited ben¬efit from these IZs, and the re¬gions see minimal revenue, the delta provinces are paying a high cost in environmental dam¬age. At present, only 30% of IZs have waste water treat¬ment facilities, while others don't, or they are still under con¬struction. Studies have shown that the areas generate 222,032 tonnes of industrial solid waste, on top of 47.2 million cu.m of industrial waste water. What makes the situation even more dangerous is that most IZs in the delta are located close to rivers and canals, so waste is di¬rectly released into these sources of water. For example, the Vam Co river system in Long An Prov¬ince now receives 363 tonnes of industrial waste and 151,000 cu.m of waste water per year from IZs. In Can Tho City, most local rivers and canals have become `black rivers', suffering from se¬rious pollution. "Development of industrial zones and industrial complexes in the delta has now become spontaneous, and development of infrastructure is not synchro¬nous," said Deputy Chairman of Can Tho City People's Committee Tran. "Authorities too easily give business licenses to projects such as IZs, with complete dis¬regard for the environment, he added. VNN

241108-Southern region handles 70% of con¬tainer volume and the transport demand in the region and is growing at 20-¬25% per year. According to the MPI's latest inspection reports, there are 8 foreign-invested port develop¬ment projects in Ho Chi Minh City and Ba Ria-Vung Tau provinces. There are 3 operational ports VICT, Ba Ria Serece and Bong Sen and 4 under construction - Cai Mep Interna¬tional Terminal, Saigon SSA, SP¬PSA and P&O Saigon Port. The Thi Vai International Port project has had its licence withdrawn. Thi Vai International Port was licenced in 1997 as a JV between Vung Tau Shipping and Service Company, Vietnam Steel Corporation and Japan's Kyoei Steel Company with total investment capital of USD$56 million but has yet to get off the ground as a result of internal disagreements. There are 4 port projects under construction in Hiep Phuoc and Cai Mep-Thi Vai areas, which have a combined investment fund of USD$1 billion. Cai Mep-Thi Vai port complex will replace Ho Chi Minh City's ports. VIR

271108-HCMC environment inspectors said in a report that Le Minh Xuan IP had the most waste water violators with 35 compa¬nies, followed by Vinh Loc IP with 28 violators and Linh Trung Export Processing Zone with 27 culprits. SGT

281108-About 110 operational IPSs in Vietnam have attracted a little more than 3,300 FDI projects worth USD$39.3 billion and 3,000 domes¬tic projects worth VND185 trillion / $10.9bn since 1991. Over 1.1 million Vietnamese are employed at those IPs. SGT

021208-Korea’s IGS Capital Group first IP Bac Ninh province is expected to draw 250 Korean manufacturing investors to bring in roughly $2 bil¬lion and create 50,000 local jobs. VIR

041208-Dong Nai's Dept of Natural Resources and Environ¬ment has asked the provincial government to stop accepting new projects into the 19 IPs in the province. Efforts should now be shifted to expanding the scale of manufactur¬ing and business activities at the IPs. SGT

091208-The PM has permitted an additional 7 IPs in HCMC. The sites for the parks include Dong Nam, Bau Dung, Phuoc Hiep, Xuag Thoi Thuong, Vinh Loc 3, Le Minh Xuan 2, and Le Minh Xuan 3. The parks are expected to be built by 2015, with an extension to 2020. The city authorities will also adjust the area of Phu Huu Industrial Park from 162ha to 11 4ha and expand the area of Le Minh Xuan and Hiep Phuoc industrial parks to 120 ha and 500ha respectively. VNN

091208-Corporate income tax incentives could be removed from IZs & EPZs making them less attractive places for investors according to the draft decree implementing the Corporate Income Tax Law. Regarding high tech zones, tax exemptions and reductions under the draft are similar to current regulations, which offer 10% preferential rates for the whole life of a project. However, a 10% preferential tax rate is slated to be applied for 15 years. In addition, under the draft decree, income from subleased land will be treated as income from transferred properties and subject to a 25% corporate income tax resulting in rent increases. This coupled with the fact that newly established enterprises in such zones are no longer entitled to tax incentives would eliminate the compet¬itive advantages of companies located in the zones compared with located out¬side the zones. Tax incentives have been a factor luring foreign and domestic investors to industrial and export processing zones. For example, manufacturing enterprises located in industrial zones are entitled to a 15% tax rate for the first 12 years, with a 3 year tax exemption and a 50% tax reduc¬tion for the 7 subsequent years. It would impact on management and environ¬mental protections if investments were not centralised in certain areas. MPI statistics show that Vietnam has 194 IPs and EPZs of which, 84 zones are operational, attracting 6,400 domestic and foreign investment projects worth $50 billion. VIR

081208-According to MPI statistics, there are 194 IPs, EPZs & EZs nationwide occupying 46,588 hectares with 3,325 FDI investment projects and 3,082 domestic ones. VIR

101208-The southern province of Dong Nai has announced it will strive to attain gross domestic product (GDP) of VND64.6 trillion (US$3.7 billion) next year, 14.5% better than this year. Some 11 of 21 industrial parks in the province have no wastewater facili¬ties and are killing Dong Nai and Thi Vai River, according to Chanh. Next year the province also aims at achieving export revenue of US$8.4 billion, 2396 more than in 2008, and import revenue of US$10.1 billion, 24% higher than in 2008. This will leave a trade deficit of US$1.7 billion. According to the province, it is ex¬pected to attain most of its economic targets including GDP of $3.17 billion, and the total foreign direct investment of US$3 billion. According to the environment department, Dong Nai still has nine large industrial parks polluting Dong Nai and Thi Vai rivers with 45,000 cubic meters of untreated wastewater added every day. The nine industrial parks are Ho Nai, Bien 1loa 1, Nhon Trach 2, Nhon Trach 3, Song May, Amata, Go Dau, Tam Phuoc and Loteco. SGT

171208-Enter¬prises in Binh Duong Province's industrial parks so far this year earned over US$5 billion, an increase of 36% over 2007. The IPs at¬tracted 124 FDI projects and 38 domestic ones in 2008. Currently, the IPs house a total of 984 FDI projects and 296 do¬mestic ones. Moreover, the industrial parks have created jobs for 31,000 labourers in 2008. There are 250,000 labourers working in the IPs. Binh Duong Province currently has 27 IPs with a total area of 8,877ha. The industrial parks have contributed 60-65% of the province's industrial production value and 34% of export turnover. Most of the industrial parks in Binh Duong Prov¬ince have registered environmental standards with the government and ap¬plied measures to minimise pollution. However, a minority of enterprises have violated environmental standards, leading to pollution in certain areas of the province. VNN

171208-There are 7 operational hi-tech parks nationwide, covering some 750ha, ex¬cluding nearly 2,500ha for 14 industrial parks with hi¬ tech applications. If every¬thing goes as planned, an¬other 33 hi-tech parks will come on stream, covering 16,426ha and the High Technol¬ogy Law (1st July 2009), offers more favorable mechanisms to encourage various localities and economic sectors to de¬velop hi-tech parks. SGTW

231208-As much as 70% of the 197 IPs in Viet Nam do not have waste treatment systems, according to the Ministry of Natural Resources and Environment. The ministry has found 750 incidents of environmental violations and imposed fines of more than VND130 billion (US$7.65 million) over last 3 years. Among the violations discovered are the buying and selling of hazardous medical waste and illegal trade in wild animals. VNN

261208-Foreign owned enterprises em¬ploy 75% of more than 50,000 work¬ers who have got jobs in Dong Nai Province this year according to the provincial labor, war invalids and social affairs department. The province plans to generate 50,000 new jobs next year. SGT

030109-At the end of 2007 Long An province zoned 13,900 ha of land for 62 IPs and clusters, a land area even higher than the total amount used for simi¬lar purposes in HCMC & Dong Nai Province. Of Long An Province's 16 IPs only Duc Hoa IP No. 1 has a 100% occupancy rate and 3 other industrial parks less than 66% as of June. Of 25 projects expected for the IPs in 2008 some 9 had not even reg¬istered by the end of November. The province has zoned 6,985 ha of land for indus¬trial clusters, but construc¬tion has been carried out on only 607 ha or 8.7% and only 240 ha has been rented. Most Long An Province's industrial parks and clusters are located in Thu Thua, Can Duoc, Duc Hoa, Ben Luc, Can Giuoc and Tan Tru districts. For the first 9 months of the year, the province lured 50 FDI projects with total registered capital of $421 million. It is currently targeting an annual $500 million in FDI registered capital. VNN

070109-My Phuoc 3 industrial park has attracted over 370 projects with to¬tal capital of US$1.8 billion, creating jobs for more than 34,000 workers. SGT

120109-A recent sur¬vey conducted by HCMC's Department of Science and Technology has revealed only 1% of the industrial and processing zones' in the city meet official technology standards. The research was carried out in 429 busi¬nesses across 11 zones in the city. The survey found 3 firms had "modern" technology. 4% had "ok" technology, 8% ranked "average / fair," 36% were "average," while the remaining 51% were considered "weak". The survey was based on 4 categories: machines and facilities; IT; human re¬sources and management. Some 6% of staff covered in the survey had a university degree or higher qualification. About 30% of the businesses wanted to raise the standard of their employees' qualifications. Low-quality staff, rather than low-tech machinery or facilities, was one of the main barriers keeping firms from using high technology. "In some cases, a business has high-tech machinery, but no one is qualified to manage that machinery. For example, most busi-nesses in Tan Thuan process¬ing zones are foreign-invested, but 61% were classed in the `weak' category for high ¬technology." Another issue highlighted by the survey was environmental pollution. Some 25% of businesses involved in the research used production pro¬cesses which harmed the envi-ronment, including many who do not treat their waste water. VNN

120109-Efforts to call foreign investors into HCMC's industrial parks and export processing zones in 2008 did not pay off well due to the lack of available land for rent and the insufficient infrastruc-ture, according to Hepza. In a review of the investment and environment protection situation of the city's IPs and EPZs in 2008, Hepza said facilities in IPs and EPZs, including power and water supply, and communication infrastructure did not meet the requirements of many foreign investors. Another factor discouraging for¬eign investors was that construction costs and rent for factories were higher than in neighboring prov¬inces. In 2008, Hepza received many foreign investors from around the world who came to feel out the in¬vestment environment at the city's IPs and EPZs and many from the US, Australia, Germany and Japan needed to rent tens of hectares of land to execute projects for the pro¬duction of contact-lenses, medical devices, photocopy machines, air¬plane components, industrial glass and construction materials. But the lack of land has prevented more tenants from coming in as 96% of the land in IPs and EPZs has been rented by owners of 1,140 projects with investment capital totaling US$4.3 billion including 460 foreign¬ invested projects. The authority sets a target of US$680 million of fresh invest¬ment to pour into the IPs and EPZs this year including the increased investment capital of the operational projects. In 2008, the city's IPs and EPZs attracted US$681 million of new registered investment capital for 57 foreign and domestic projects including the added capital of the operational ones. The new invest¬ment capital was said to be 27% more than in 2007. Tan Phu Trung Industrial Park in Cu Chi District is still constructing its waste water facility and 40 other enterprises are still discharging untreated wastewater into rivers, not to mention that most of the industrial smoke from the IPs and EPZs is still untreated. HCMC has 12 IPs & 3 EPZs employing 244,000 workers with 70% of them from other provinces. To increase the number of IPs in the city the PM recently signed a document extending the city's IP development plan with 1,740 extra hectares added and 7 new IPs developed around the city between now and 2020. SGT

140109-The Ministry of Science and Technology says only 6 out of 14 IPs in HCM City have waste treatment facilities. The other IPs are only starting to study building such facilities. The ministry's inspection teams found that 80% of polluting factories in Ha N¢i and HCM City IPs were run by private domestic companies, 11% by foreign invested companies and 9% by State-owned businesses. VNN

140109-Hanoi set a 2009 target to attract 35 new foreign-invested projects to its IZs with a total registered capital of US$150 million, and to approve additional investment of another $150 million, and for a year-on-year increase of 15-20% in revenue in the city's IZs and an export value of $1.85 billion. In 2008, Ha Noi's IZs attracted 22 foreign-invested projects valued at $75 million. Investors were mainly from Japan, Taiwan, mainland China and South Korea. The zones have also drawn additional investment capital of above $249 million through existing projects. In 2008 total capital invested in the city's zones rose 6%. The expanded Ha N6i is now home to 12 IZs, covering a total area of 2,500ha, of which Thang Long, N6i Bai and Sai Dong B have full occupancy. VNN

160109-The Nhon Trach residential and commercial complex covering 5,930he includes Nhon Trach 1, 2, 3 & 4 IPs that include industry, power plants, equipment manufac¬ture, foodstuff production and phar¬maceutical plants. As of April last year, industrial parks had attracted 297 investment projects with a total investment capital of US$5.58 billion. Some 175 projects are now operating, providing 40,000 jobs. VNN

200109-Industrial Growth in 2008 : -
Overall 14.6%
State sector 4%
Non state sector 18.8%
Foreign investment sector 18.6%
MPI SGTW

310109-Binh Duong posted a GDP growth rate of 14.8% and attracted more than US$2 billion in foreign investment capital in 2008, despite the global financial crisis. VNN

120209-Since 96% of land in HCMC IPs & EPZ’s has been rented out by 1,140 projects with an investment capital of USD$4.3 billion – including 460 foreign invested projects – there is a lack of land but HEPZA has set a target of attracting of USD$680 million in fresh investment in 2009, including increased investment capital at operational projects. SGTW

200209-HCMC has been approved by the PM to have 7 new IPs covering 1,800 hectares by 2015 and oriented to 2020, bringing the total number of IPs in the city to 22 by 2020. SGT

050309-Nearly 30,000 workers at industrial parks and export process¬ing zones in HCMC will become jobless this year as enterprises speed tip massive layoffs to cope with fall¬ing orders induced by the global economic downturn, said an official of the city's IPs and EPZs Authority, or Hepza. Currently, there are 950 operational companies including 450 foreign-owned ones at 3 EPZs & 12 IPs employing some 260,000 workers. Some 30 companies at the IPs and EPZs had closed down or been operating perfunctorily, laying off over 10,000 workers in the year to date. "Due to the slowdown, we will likely see more and more factories close down in the coming time, and it is expected that some 10% of workers at the IPs and EPZs will be jobless this year." Many of the companies had seen orders reduced by some 50%, especially in such industries as garment and electronic equip¬ment. Linh Trung and Tan Thuan EPZ have the most number of unemployed workers. SGT

090309-The director of the HCMC Department of Science & Technology said, "Over 50% of the companies oper¬ating in the city's IPs & EPZs are using backward production technologies." Technologies are backwards despite most tenants in such zones are foreign invested ones. This is because au¬thorities in the past were more inter¬ested in attracting investment with¬out paying due concern to technolo¬gies, said the director of the HCMC Investment and Trade Promotion Center. Outdated production technolo¬gies have resulted in increased pol¬lution that harms the health and live¬lihood of many people living nearby. SGT

090409-Vietnam has 219 industrial parks nationwide, in which 118 parks are operational. Till the end of 2008, the industrial parks lured 3,564 investment projects with the total investment capital of about $42.6 billion, creating one million jobs for Vietnamese workers. Good infrastructure systems and incentive policies within industrial parks make them become attractive places for investment in Vietnam. Last year, about $12.79 billion in for¬eign direct investment were reg¬istered in industrial parks. VIR

280309-Some 219 IPs and EPZs, and 3 economic zones had been established in 54 cities and prov-inces nationwide by the end of last year. The IPs and EPZs had attract¬ed over 3,500 foreign direct in¬vestment projects worth US$42.6 billion plus another 3,500 local investment (FDI) projects worth US$14.8 billion equivalent. Mean¬while, economic zones had also attracted US$20 billion worth of FDI. Last year, enterprises in these concentrated production zones obtained total revenue of US$28.9 billion, increasing 29% against the previous year, while their ex¬port earnings also soared 34% to US$14.5 billion, accounting for a quarter of the national figure. To date, Vietnam has licensed over 10,000 FDI projects worth over USS150 billion, of which over US$52 billion has been disbursed. SGTW

150409-Binh Duong : With last year's per capita GDP of US$1,377 and the an¬nual average income of $1,400 it has 27 operational in¬dustrial parks covering more than 9,000ha of land. The province has so far attracted 1,842 projects worth $11.4 billion from 40 countries and territories. Last year alone, a further 125 projects landed in the prov¬ince, capitalised at $2.3 bil¬lion. Taiwan is the province' s biggest investor with 699 projects worth $4.25 billion followed by South Korea, Japan, Malaysia and Singapore. Singaporean in¬vestors had implemented 98 projects at total investment capital of $883 million, The VSIP 1 has thus far lured 241 investors and the VSIP 2 some 134 investors. both employing 68,000 workers. VNN

150309-Binh Duong Province near HCM City will set up 11 new IPs in the coming years, taking the total number of its IPs to 39 in 2020. The IPs will cover more than 19,800ha. VNN

260309-Tan Thuan Industrial Development Co has finished the 6 story Long Thoi worker dormitory project worth $942k with 50 rooms ie $18.8k each, accommodating 650 workers ie $1,450 each, in Nha Be District's Hiep Phuoc Industrial Park. SGT

220409-HEPZA said two-thirds of the projects invested in the HCMC's IPs and EPZs last year were mostly in software de¬sign, import and export ser¬vices, precision engineering and mould production. The city's IPs and EPZs last year attracted 21 foreign direct investment projects and 55 domestic investment projects, with total regis¬tered capital of US$481 mil¬lion, according to HEPZA. Tuan said the city last year also refused to grant invest¬ment licenses for 11 projects in labour-intensive sectors like leather tanning, textile and dyeing. They said many of these were polluting the environment. The city wants to lure more companies in mechan¬ics, electronics, software, chemicals, and trade and ser-vices. Last year, 10 IPs and EPZs built on consolidated waste¬water treatment systems and the remaining 5 IPs and EPZs are in the middle of doing so. The city has inspected Le Minh Xuan IP, which has been selected to be the model for high-tech IP parks. The IP's polluted environ¬ment has been improved and a wastewater treatment sys¬tem built. Twenty three enterprises at Le Minh Xuan IP have also increased their invest¬ment capital to expand their operations, and 10 enter¬prises are now working in 'other fields. Seven compa¬nies have planned to move out of the city. A survey of 429 enter¬prises at 11 IPs and EPZs conducted in March by HEPZA and the city's De¬partment of Science and Technology showed that more than half of the enter¬prises had outdated technol¬ogy. VNN

240409-HCMC’s IPs and EPZs are home to some 1,150 effective projects with a total registered capital of USD$4.4bn, including 463 foreign invested projects with total capital of some USD$2.6bn. SGT

040509-The property market in Binh Duong's IPs like My Phuoc IP No 1, No 2 and No 3 is bustling now because land prices have hit the "bottom." Land prices in My Phuoc IP No 3 have dropped from VND2.7 million / $151/sqm in early 2008 to VND1.2 million / $67/sqm now, making it very attractive to both those who need accommodation and investors aiming to make a profit. VNN

200509-Only 1/5th of the country's 230 IPs & EPZs have consolidated wastewater-treatment fa-cilities which treat a mere 30% of the total effluents. The untreated wastewa¬ter released by the zones is 1m cu.m / day accounting for over a 1/3rd of the country's total wastewater. Industrial wastes at IPs and EPZs will reach 4.9m tonnes a year by 2010, mostly in Ha Noi, Da Nang, and HCM City. Toxic waste, which ac¬counts for 25% of total waste, is mostly dis¬charged by light and chemi¬cal industries. It is not treated properly since most zones have no facilities for collecting and treating it. Most of the solid waste is incinerated or sent to gar¬bage dumps. Toxic substances re¬leased in the air at IPs and EPZs, such as sulphur diox¬ide, carbon monoxide, and nitrogen dioxide also ex¬ceed permitted levels by 2-6 times. The MPI said the na¬tional zoning plan envis¬aged setting up 91 new IPs with a total area of 20,800ha by 2015 and expanding 22 existing IPs by 3,500ha. SGT

010609-In Long An Province 12 industrial clus¬ters using over 3,220ha of land do not find a place in the land use plans. The province has allo¬cated 13,865ha of land for in¬vestors to develop 16 IPs and 46 industrial clusters, but only a few IPs, covering a to¬tal of 607.6ha, have been set up, that too with low occu¬pancy rates. The rest of the land re¬mains unused even as local residents lack lands for agri¬culture. VNN

050609-According to a Dong Nai report, which will be soon submitted to the government, the province's 29 IP net¬work, which cover 9,076 hectares, will see another 5 IPs added by 2020. From now to 2015, the An Phuoc, Amata, Xuan Loc, Tan Phu and Long Duc parks will be expanded and the Long Thanh Urban High-tech Park, Phuoc Binh; Cam My, Gia Kiem and Suoi Tre parks will be built. The industrial parks are expect¬ed to lure $3.5-4 billion of invest¬ment between 2007-2010 and $9¬15 billion between 2010-2020. Dong Nai's IPs have attracted 1,070 projects including 807 foreign direct invest¬ment projects worth $11.8 billion from 32 nations and territories and 271 locally invested projects worth VND22.643 trillion ($1.28 billion). VIR

270709-The rentals of land in IPs must be adjusted lo attract more investors, infrastructure development compa¬nies told a meeting yester¬day. Rental prices in IPs in Dong Nai and Binh Duong provinces as well as HCM City have in¬creased by 30-50% compared to previous years. The Government's De¬cree 142, enacted in 2006, called for land rentals to be adjusted every 5 years based on the market price. From 1995-2005 the Government issued many preferential policies, including land rental and cor¬porate income tax exemp¬tions. However, under the Ministry of Finance's Circu¬lar 130 that came into effect in January 2009 such policies were discontinued, causing difficulty for IPs to attract investors during the economic downturn. Developers have suggested that the Gov¬ernment continue preferen¬tial policies to IPs that had received investment licences before January 2009. VNN

140809-The 13 EZs have a total of 250 domes¬tic and foreign investment projects, with combined capital of US$27bn. Of the total number of projects, 60 were foreign ¬invested, with registered capital of $19bn. VNN

170909-Over 1/3rd of the IPs in HCMC have yet toregister inves¬tors or projects. The establishment of 30 IPs to relocate polluting firms in the city has yet to be executed properly. SGT

250909-It makes little sense to use the importance of industrialization as a pre¬text for legally contentious, economically inefficient and potentially disastrous deci¬sions. The problem is common. When a local authority devel¬ops a socio-economic zoning plan or wants to establish an industrial park, it often justifies them with phrases such as "focusing on and boosting [economic activi¬ties] in line with industrial¬ization and modernization to create a break through" and "carrying out industrial-ization and modernization." These expressions provide the foundation on which IPs, industrial complexes and their variations sprout up. As of late September 2008, there had been 194 IPs in 56 localities, covering nearly 46,600ha and some 650 industrial complexes with a combined area of over 30,000ha. In other words, virtually every locality wants to become industrialized. Industrialization is not the same as purchasing machinery, setting up indus¬trial parks or taking back land for industrial develop¬ment. Industrial parks are not a prerequisite for indus¬trialization, which is a from an economic perspective, an or¬ganizational process which depends on knowledge input to add value to products. For instance, a Vietnamese textile company turns out products in response to foreign orders at 20 cents a piece while, in fact, these items can be sold overseas for US$10 each. The stag-gering price disparity arises because foreign enterprises have successfully applied knowledge in design, pro¬cessing, distribution, trans¬port and marketing to make the products more valu¬able. Another case relates to Vietnamese coffee, which brings farmers 40-50 cents per pound. However, inter¬national coffee prices may be as high as US$10-15 per pound because foreign traders have adopted principles of industrial organization. An example is Lam Dong Province, which has immense potential to devel¬op tourism and the cultiva¬tion of tea, coffee and veg¬etables, yet a report from the Lam Dong Industry and Trade Department shows that it is speeding up the establishment of 10 IPs and complexes, cov¬ering over 1,645ha. Bao Loc Town alone has 3 IPs and complexes and 2 of them are only 1.5km apart with neither operat¬ing at full capacity. Why not give priority to agricultural development to help farmers sell coffee at prices above 40-¬50 cents per pound? Perhaps tourism and service develop¬ment is preferable to indus¬trial parks, which may breed enormous waste. SGTW

021009-MPI said that in the 1st Half of 2009 due to food security concerns, ef¬forts to prevent the establishment of IPs on productive farmland, and the adverse impacts of the global downturn, the devel¬opment of IPs was severely hampered. Although 12 IPs are expected to commence operations this year only 5 new IPs have actually sprung up so far covering 1,170ha. This number was less than 1/3rd of that in 2008. Only 46% of the land in IPs na¬tionwide has been rented. Apart from the global down¬turn, policy changes, especially the removal of CIT in¬centives, starting from early 2009 in line with the amended Corpo¬rate Income Tax Law, also eroded Vietnam's competitive edge, which paled in comparison with that of neighboring countries such as Thailand and China. Before 2009, new projects in Vietnam's IPs en¬joyed a 25% reduction in CIT in the first 3-4 years of operations and a 50% reduc¬tion for the subsequent 9 years. Without these incentives IPs are finding it hard to attract FDI. Infrastructure developers also said that the Government should carefully consider the implemen¬tation of Decision 43/2009 on providing subsidies of VND60bn / $3.37m or more for IP development in lo¬calities with poor socio-economic conditions. The subsidy may en¬gender waste because whether an IP thrives also hinges on supporting infrastructure such as roads, which are vital to the transport of goods. Instead the Government should help competitive, capable IPs improve effi¬ciency. SGTW

071009-According to Hepza 80 enterprises around HCMC’s IP have yet to build facili¬ties to treat industrial smoke. "Many of the enterprises discharging harmful industrial smoke are operating at the IPs of Le Minh Xuan, Tan Phu Trung and Hiep Phuoc," the head of Hepza's Office of Environment Protection said. SGT

071009-HCMC has a total of 13 IPs and EPZs with 985 operational enterprises with combined investment capital of some US$3.4bn and a work force of some 247,460 people. According to the Foreign Investment Agency of the Min¬istry of Planning and Investment, HCMC attracted 267 FDI projects during the first 9 months of 2009 with total registered capital of US$1.14bn. SGT

081009-Vietnam is aiming to synchronise the development of its seaports and support¬ing infrastructure around the nation in order to meet fore¬cast demand of 480-590m tonnes of cargo per year by 2015 and 820-1,080m tonnes of cargo per year by 2020. VIR

111109-Leading container port op¬erator Saigon Newport Company (SNP), owner of Tan Cang-Cat Lai Terminal in HCMC's District 2 had a market share of 66% in HCMC and 42% nationwide in 2008, which was up to 82% and 50% in 2009. SGT

231109-MPI statistics show that by the end of June 2009 Vietnam had 230 IPs & EPZs with 144 operating and 86 still under construction. By June they accommo¬dated 3,363 foreign invested projects worth $36.76 billion in registered funds and 3,416 domestically invested projects worth $13 billion in registered funds. The FIA admitted that the global crisis had severely affected investment inflows in the country's industrial parks, with the reported fund declining 30-40%. VIR

171009-HCMC industrial parks (IPs) and export processing zones (EPZs) have suffered a sharp slide in domes¬tic and foreign investment. In the first 8 months this year fresh foreign investment approvals amounted to some US$70.1m - a decline of 51.8%, while domestic investment reached some US$84.8m – a drop of 78.45%. HCMC has 13 IPs & EPZs which are home to 985 operational enterpris¬es with combined investment capital of some US$3.4bn and a work force of some 247,460 people. SGTW

091209-About 70% of IPs in the southern region have hot yet built solid waste and waste¬water treatment systems, according to a report of the Environmental Police Department. Even worse, many firms that have set up such systems have secretly discharged waste via underground pipelines. SGT

101209-According to the MPI there are 228 IPs with 83 under construction across Vietnam. The country's south east¬ern region has accommodated the most parks, accounting for 37% of all IPs and 48% of land used for IP development. Dong Nai province has the most number of parks with 28 fol-lowed by Binh Duong province and HCMC with 27 and 16 respectively. VIR

151209-Binh Duong IP management said this year there has been a 50% drop in invest¬ment in the southern province's 28 IPs to US$500m. The HCMC DPI reported a similar situation in the city based IPs &EPZs which attracted a mere $16.9m. Tay Bac IP in the suburban district of Cu Chi has received no investment. In Dong Nai Province, whose IPs are normally popular investment destinations, the 2nd Phase of the Nhon Trach 3 IP, which is under construc¬tion, has failed to attract any tenants this year. SGT

271209-In Binh Phuoc Province Izs have been able to lease out or sell the right to use just 10% of their lands to investors, well below the rate of 60% in Dong Nai and 90% in HCM City. VNN

040110-Saigon Port Co last year cleared 14 million tons of goods, up 7% year-on-year, and achieved turnover of more than VND1tr / $54m. The total throughput at all ports in HCMC is expected to hit 100 million tons in 2010. SGT

050110-Binh Duong has attracted 99 new foreign ¬invested projects worth $2.5 billion while al¬lowing 125 existing projects to increase capi¬tals by $446 million last year. Among the most significant projects included a $1.7 billion housing project, making up 84 per cent of the total FDI registered in the province; a tooth¬brush manufacturing plant worth $40 million and a $14 million logistic centre. Meanwhile, Ba Ria-Vung Tau Province, which led the nation's cities and provinces in attracting the most FDI nation-wide in 2009 expected to absorb above $1.97 billion from 20 new foreign-invested projects this year. The province had closed a successful year of FDI attraction in 2009 with 26 newly-li¬censed and 12 capital-added projects worth a totalling of $6.8 billion. Not to lag behind, Dong Nai Province has set a target of drawing $1.5 billion in FDI this year. VNN

110110-Hepza, which oversees 12 EPZ & IPs said 2009 showed deep contractions and total export revenue fell by 13% yoy to US$2.7 billion. In 2008, the figure amounted to US$3.1 billion. Over the past 15 years, Hepza has witnessed double-digit or triple-digit growth in export revenue, except last year and 2001. Hepza attracted almost US$350 million, or a sharp fall of 49% in comparison with 2008, of which foreign direct investment totaled US$120.25 million including US$26.3 million for 14 fresh projects. Meanwhile, local enterprises pledged US$165.3 million of invested capital in 40 new projects, plus US$61.6 million injected into 24 other operational projects. In 2010 Hepza hopes to achieve targets equal to that of 2008 including US$680 million of investment capital and US$3.1 billion of export turnover. SGT

250110-To date Dong Nai has 27 IPs with a combined area of 8,216ha. Another 18 are planned on a total of 7,826ha. In 2007 and 2008, Doing Nai attracted from both domestic and foreign investors total registered investment capital of US$3.5bn in real estate projects, with foreign sources representing 64%. VNN

260110-In 2009 Hanoi IP Management Board li¬censed and approved capi¬tal adjustments for 16 locally invested projects and 27 foreign invested projects with a total registered capi¬tal of nearly $132 million. Ha Noi's IZs have so far attracted 508 investments, of which 240 are foreign, with a total value of nearly $4.2 billion. VNN

100110-In line with current zoning plans 91 new IPs covering 20,839he will spring up and 22 IPs will be expanded to reach 24,382he. Vitnam has 219 IPs with a combined area of 51,472he. Only 46% of the toal area has been ulitised. The other 44,300he is still awaiting investors. SGTW

1001109-According to reports dated October 2009 the Mekong Delta has 116 IPs which cover 12,769he but only 46% has been filled with projects leaving nearly 7,000he of idle land that is not used to grow paddy or develop aquaculture, fertile as it is. In 2008 48 projects aimed at developing infrastructure for the parks. Upto 40 new IPs were set up with a total area of 15,675 he – up 73% on 2007. At the same time 8 existing IPs registered for expansion with an additional 2,810he – uo 41% from 2007.

050210- HEPZA said total export revenue from enterprises inside these zones in 2009 fell by 13% year-on-year to US$2.7 billion, the deepest cut in its 15-year history. The EPZs and IPs attracted almost US$350 million, or a sharp fall of 49% in comparison with 2008. For¬eign direct investment accounted for US$120.25 million, including US$26.3 million for 14 fresh projects. Meanwhile, local enterprises pledged US$165.3 mil¬lion of invested capital in 40 new proj¬ects, plus US$61.6 million injected into 24 other operational projects.This year Hepza hopes to achieve US$680 million of investment capital and US$3.1 billion of export turnover. SGTW

020310-The total number of operational investment projects at Ba Ria - Vung Tau IPs in the province as of the end of February was 129 worth just over US$13 billion. However, since the beginning of 2009, only 12 projects have registered into the IPs, 3 fewer than expected. According to BIZA's statistics, among the 14 IPs 7 have leas¬ing rates of under 50%, of which only the 160.87 hectare Long Xuyen Industrial Park is full while the 993.81 hectare Phu My III and the 496.22 hectare Dat Do I are null. The average leasing rate at IPs reaches 36.17%. The province has 13 operational IPs covering 8,396 hectares. The 14th, Long Huong In¬dustrial Park covering 400 hectares, is under construction. SGT

120310-The starting salary for workers, says Hepza, is between VND1.28-1.45m / $67-76 only a month. For workers with seniority of several years, the monthly pay remains modest, at some VND1.4-2.5m / $73-131. The Philippines and Laos have the wage level some 20% higher than in Vietnam. Highlighting the unequal labor allocation in the country, unveiling that enterprises in the southern focal economic zone make up 37% of the total number of enterprises but they are using 40.5% of labor. In the Mekong Delta, the number of enterprises accounts for 11.7% ofthe total, but they are using a mere 6.7% ofthe laborforce, although the work force there accounts for 21.5%. Such a situation results in migration. In many provinces, policymak¬ers ignore or fail to anticipate labor demands, allowing industrial parks to spring up without adequate labor preparations. That is not to mention policies of discrimination against migrant workers by setting up barriers relating to residential registration or recruitment. There is a reversal in the migration process, when workers originating from the countryside are returning to their hometowns in rural areas where factories have been being erected recently. Many workers from rural areas see jobs in the city as tempo¬rary, and fret about an uncertain future there, so comes the exodus. Labor movements are occurring according to economic rules, and workers are flocking into those places where they are treated better, so it is time for enterprises to look back at themselves, said the chair of the labor federation of Binh Duong Province. Furthermore, there must be long-term plans for socio-¬economic development including labor allocation so that labor shortage as the acute issue now will not become a chronic problem. SGT

270310-Viet Nam has 228 IPs cov¬ering more than 58,000ha with 145 already in operation with an average occupancy rate of 64%. VNN

120410-The country has 918 IPs covering 41,000ha. These have cost VND44.4tr / $2.3bn in infrastructure development, attracted invest¬ments worth VND554tr / $29bn and created 477,000 jobs. In the eastern part of the Southern region 24% of 7,300ha of industrial land has been used, while in the western part 17% of 13,000ha has been utilised. VNN

120410-There are 228 IPs in 56 provinces and another 91 are expected to be built by 2015 while 22 existing ones will be expanded. VNN

190410-HCMC has 14 IPs that are not managed by any agency, with 12 of them not even having waste treatment facilities. They are Hiep Binh Phuo (in Thu Duc District), Hiep Thanh and Tan Thoi Nhat (District 12), Phu My (District 7), Binh Dang (District 6), Tan Quy A, Tan Quy B, Bau Tran, and Pham Van Cu (Cu Chi District), Eastern Highway (Binh Tan), Tan Hiep B (H6c Mon District), Long Thoi (Nha-Be District), Tan Tuc and Tran Dai NghTa (Binh Chanh District). Tenants in Hiep Thanh IP say in 2004 the city authorities appointed the District 12 Urban Service and Development Co to manage it but the company pulled out in 2007. Also in 2004, the city authorities chose Cu Chi District's Pham Van Cai Commune to relocate breeding farms and animal feed processing factories from inner districts. But the IP remains rudderless and no infrastructure or waste treatment facilities have been built here. VNN

080510-Vietnam now has 228 IPs covering some 58,400 hectares and 14 EPZs across nearly 630,000 hetares. SGT

080510-The country has approximately 230 IPs that cover more than 58,000 hectares. Cur¬rently, 145 IPs are operational. The average occupancy rate of these op¬erational IPs is 64%. Dong Nai Prov-ince has the largest number of IPs with 28 followed by Binh Dddng that has 27 and HCM City that has 16. Viet Nam's IPs have attracted 3,450 for¬eign direct investment projects worth US$38.5 billion. The IPs provide jobs to more than 1 mil¬lion people and make up approximately 20% of the country's total annual export turnover. An additional 91 IPs will be developed by 2015 on 21,000ha. SGT

140510-The nation now had ap¬proximately 1,870 small in¬dustrial zones of less than 50ha, but with an overall combined area of 76,520ha, according to the ministry. The Government al¬ready offered incentives to lure investors into these zones, but infrastructure construction remained slow and only about 26% of the total area of each park was occupied. VNN

040510-The lack of appropriate policies and mechanisms for developing industrial clusters has caused many difficulties for potential investors, according to the Ministry of Industry and Trade. Currently, Vietnam has 920 operating indus¬trial clusters covering a total of 40,560 hectares. However, the ministry said enterprises had only registered to build factories on 7,510 hectares - just 27% of the total available land area. SGT

160510-The De¬partment for Economic Zones Man¬agement said the country now had 228 IPs covering a combined area of 58,434ha in 56 provinces and cit¬ies. Most of them are located in southeast region and Mekong and Red River deltas. Of these, 145 IPs have already been put into operation with about 64% of the targeted land oc¬cupied, while 83 others are under construction. Binh Duong, Dong Nai and HCM City are the localities that have the most IPs at present with 28, 27 and 16, respectively. In addition, Viet Nam also has 14 economic zones with a total area of nearly 630,000ha. Over the last years, the IPs have played an important role in devel¬oping the economy, contributing 20% of the country's exports and employing more than 1 million people. According to the Government's planning, by 2015, the total land area occupied by the IPs will be between 60,000 and 80,000ha, and the figure would be raised to 120,000ha in 2020. About new 90 new IPs are planned to be built from now to 2015. VNN

200510-According to the MPI as of end 2009 Vietnam had some 250 registered IPs with a total land area of some 62,300he. SGT

020610-The Environmert and Natural Resources' General Depart¬ment on the Environment said in a report funded by the Danish Inter¬national Development Agency, "As many as 70% out of 1m cu,m of wastewater from IZ's has been discharged directly into nearby rivers and 57% of IZ's haven't been equipped with consoli¬dated vyrastewater treatment systems. The amount of solid waste produced is on an upward trend while the collection and processing of solid waste in IZ's ap¬pears to have many short¬comings." VNN

140710-Around 80% of IPs in Vietnam have been found to infringe environmental protection regulations. SGT

140710-At the moment, 13 IPs & EPZs around HCMC have attracted nearly 1,200 projects with total registered capital of US$4.9 billion. These include 710 domestic projects with registered capital of US$2.1 billion. SGT

210710-IPs & EPZs in HCMC attracted US$319.55m in investment capital in the first 6 months of this year, increasing by 176% against 2009. Foreign investment accounted for $99.11m of this amount. Enterprises in the city's IPs and EPZs reported export revenues of $1.6 billion in the first 6 months of this year for a year-on-year increase of 34%. VNN

300710- From now until 2015 HCMC EPZs & IPs target investment capital of US$2bn, with half from domestic investment providing 50,000 new jobs. A total investment capital of more than $2.1 billion was poured into the zones over the last 5 years, with an average annual growth rate of 6%. Of that figure, foreign investment reached $875 million and the remaining was from domestic investment. More than 252,000 workers were employed to work in them over the last 5 years. VNN

Total Area 12,995 sqm
Factory Area 6,500 sqm
Rent - USD$ 14,000 + VAT
Sale Price - $ 2.15 / sqm
Sale Price - VND 50,000,000,000
Sale Price - $ 2,564,103
Sale Price - $ 394 / sqm
Yield 6.55%
Constr Date 2008 - 2009
Di An, Binh Duong nr VSIP
Now for garments processing
Mr Kim 0948 889 576 VIR 081110

161110-According to HCMC Export Pro¬cessing and Industrial Zones Author¬ity (Hepza), the export processing and industrial parks had some 1,190 operational projects employing 255,000 workers, 70% of them from other provinces. SGT

221110-Hanoi IPs account for 10% of the total turnover of IPs nation-wide & 8 out of 19 are fully occupied. SGT

111210-Since the Tan Thuan Export ¬Processing Zone first began oper¬ating in 1993, as many as 253 IPs have been opened, including ex¬port-processing zones and eco¬nomic zones. The IPs are home of 3,840 for¬eign-invested projects with a com¬bined capital of about US$52 bil¬lion, or 30 percent of the country's total FDI. In addition, about 4,600 domes¬tically invested projects worth more than VND305 trillion ($15.25 billion) have been established in the IPs. The IPs have generated $20 billion in industrial output value and created jobs for 1.5 million people. According to current regula¬tions, all IPs must have waste water treatment plans but only 50 per cent of them did, according to Dong. Most of the current IPs were small and scattered over large ar¬eas and not able to co ordinate their businesses. VNN

150211-As of late 2010 Ba Ria Vung Tau had attracted 282 FDI projects capitalized at over $27.5bn including 110 projects in IPs. SGT

Date : Sunday, 04 October 2009
Category : HCMC


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160108-The foreign direct investment (FDI) inflow into HCM City in 2007 is US$2.87 billion, up 27.5% on the previous year. According to the HCM City Department of Planning and Investment, the figure includes US$2.44 billion of 469 newly li¬censed projects and US$428 million of added capital of 198 operational projects. Most projects are in real estate. Last year, the department granted licenses for 18,417 private enterprises with total registered capital of more than US$10 billion, triple the figure in 2006. SGTW

120108- HCMC’s economy in 2007
GDP growth 12.5%
Foreign investment US$2.5 billion
International tourists 2.7 million
HCMC People's Committee

260108-HCMC’s economy in 2007
GDP growth 12.6%
Per capita income US$2,180
Investment for development US$6.25bn or 35% of GDP
Service growth 14.3%
Industry, construction Up 13.6%
Retail trade Up 26.6%
Exports US$18.3 billion, up 17.2%
Foreign direct investment U$2.87 billion
New business establishment 18,400
SGTW

120208-HCMC plans to achieve a GDP growth rate of 12.7% in 2008 and increase the annual per capita GDP to USD$2,500. VNN

011207-The road area per capita should be 6-10 sqm but is only 1.48 sqm in HCMC so congestion is inevitable. To avoid traffic congestion, the road area per capita should be 6-10sqm and land area for traffic should be 20-30% of the total of urban land. A look at the city map shows that only districts 1, 3, 5 and 10, which were planned under the French rule, meet this requirement. Large surrounding areas grew spontaneously during the last war and in the time of poor manage¬ment after 1975. In such densely populated residential areas there are many alleys and paths, and the land set aside for traffic is less than 5% of the total land. Congestion has been inevitable because the road area per capita is only 1.48 sqm, a quarter of the minimum requirement. The annual subsidy for buses is $38.48 million and that for Nguyen Van Cu bridge and road is $23.73 million. Which op¬tion is better? HCM City should immediately re¬duce traffic congestion by building overpasses and low bridges for mo¬torbikes to cross rivers and canals. The annual subsidy for the bus sys¬tem could pay for tens of these projects. It will take more than 30 years to make up what was not done over the past 50 years, which means that motorcycles will be our street companions for many years ahead. SGTW

280308-Under a HCMC Economics Institute project about US$700 million will be spent on building 165km of dike, which is 10 to 12 meters wide and 2.5 to 3 meters high to prevent tidal water and river floods. They say that a dike will embrace all of districts 2 and 9 and part of Thu Duc District, while another will pro¬tect the rest of the city except the seaside district of Can Gio. These dikes will prevent tidal water from flooding the city. But areas of flooding caused by rainfall make up two¬-thirds of the total in HCMC so some other scientists even totally reject the idea of building a circumference dike system, saying the project might turn the whole city into a great lake. Precipitation is increasing year after year and the circumference dike system will ar¬rest rainfall in inner-city areas pre¬venting the water from flowing into the sea. If the on-going HCMC master plan on flood prevention to 2020 turns out successful, the dike project will be a waste of money. Furthermore, if flooding can be controlled in this one region, can we be sure that other regions neighboring the city will not face worsening floods? Some say the whole city is sinking due to the excessive exploitation of sub-¬ground water and the rampant con¬struction throughout the city. The associate professor with the Geo-Information Center under the National Univer¬sity, using images released from different satellites, said that the terrains in districts 2, 3, 7 and Binh Thanh have sunk: by over 20cm over the past few years, while in many other districts, the land has sunk by between to and 15cm. "While the sea level has risen by 10cm compared to 20 years ago, the sinking land will result in more widespread flooding in the city.” SGT

310308-In the first 3 months of the year, HCMC attracted USD$1.84 billion in foreign direct investment (FDI), of which 98.4% went to real estate and consultancy services. Of the total 95 FDI projects licensed in the city so far this year 27 were JV projects worth USD$889.3 million and 68 were 100% foreign-in¬vested projects with capital investment of USD$957.6 mil¬lion. The city has 2,731 FDI projects with a total invest¬ment of $19.2 billion. Compared with the same period last year, FDI in¬creased 31% in capi¬tal and 22.8% in the number of FD1 projects. Most of the projects are in industrial production, real estate, consultancy ser¬vices, transport, warehouses services and telecom ser¬vices. South Korea tops the list of foreign investors with the highest number of ef¬fective FDI projects, up to 601 projects worth USD$2.84 billion, accounting for 14.8% of the city's total foreign investment capital. So far this year, HCM City has licensed operation per¬mits for 3,952 domestic companies with total legal capital of VND12.08 trillion ($750 million). The amount represents an increase of 77.8% in capital and 32.2% rise in the num¬ber of companies com¬pared with 2007. VNN

100408-HCMC attracted 95 FDI projects with total capital of US$1.85 billion in the first quarter. JVs accounted for 27 capitalised at USD$890 million and 100% FIEs for 68 capitalised at USD$958 million. Real estate and consulting make up 98.4% of the capital with 51 projects capitalized at US$1.82 billion. Plus the amount of US$70.5 million in increased capital of 22 operational projects, the total FDI inflow into the city in the period is US$1.92 billion. The city is now home to 2,731 valid FDI projects with combined capital of US$19.2 billion. South Korea has the largest number of operational projects with 601 capitalized at US$2.84 billion. SGTW

120808-HCMC has a total natural area of some 2,095sq.km and some 60% of the area is low lying land crisscrossed by some 7,880km of rivers and canals. SGT

300908-HCMC : -
Inflation - 19.56%
Retail Trade & Service Revenue - $8.62bn
Exports - $7.89bn – up 21.3%
Imports - $12.5bn – up 28%
SGTW

310908-HCMC's gross domestic product (GDP) in the first 9 months of the year expanded 10.5%, 1.2 percentage points lower than the same period of last year, due to the economic slowdown at home and abroad. SGT

021108-HCMC's ports handle well over 50 million tonnes of goods a year. A few years ago the Govern¬ment projected them to handle a mere 26 million tonnes by 2010 and 35 million tonnes in 2020. The general secretary of the Viet Nam Ports Association, said growth in container cargo, which is at 3.4 million TEU (twenty-foot equivalent units) a year now, was growing at 25% a year. City authorities are set to revise the goods-handling target to 100 million tonnes per year by 2010 and 200 million tonnes by 2020 in a bid to deal with the speedy growth in goods volume through ports. They are also carrying out a Government-approved plan to move 11 city ports along the Sai Gon River to suburbs, with five of them to be relocated by 2010. But so far only New Port has been moved to Cat Lai Port in Dis¬trict 2. The other 4 - Ba Son Ship¬ yard, Sai Gon, Tan Thuan Dong, and Rau Qua ports - are still in the process of carrying out land acqui¬sition and other preliminary work. VNN

The HCMC People's Council has rejected a re¬quest by 5 State-owned environmentally destructive companies for an extension on the imposed 5 year time limit for relocating their factories from the inner city to the suburbs. Vissan told the council that the company had been meeting many difficulties in completing administrative procedures for land and capital to relocate. "With these difficulties, we ask for an extension until 2013 instead of by 2009 as earlier promised." Having the same reasons as Vissan, leaders of Saigon Garment and Phong Phu Garment of Gia Dinh Garment Corporation and Nam Phong Factory of Saigon Agriculture Corporation also wanted to extend their relocation to 2010. These petitions were opposed by the council as unfair and unreasonable when more than 1,300 other compa¬nies have abided by the relocation program. "I think if you're private or foreign-owned company, you dare not give these excessive claims.” He added he rejected the petitions because many of these companies had been continuing to assault the environment. Many similar petitions had been filed and rejected. Relocation started in 2002 yet 140 companies remain as they were. The polluter relocation program has proved to be a failure as the factories evicted from the inner city are causing pollution in the outlying places where they are now based. The Head of the council's Economic and Budgetary Committee, admitted many relocated companies are destroying the environment on the suburbs. "The city's scheme for industrial development has been showing its failure because it does not meet the economic development, but also does not meet the need for environmental protection.” SGT

121108-The highest tide in 48 years since 1960 submerged many parts of HCMC, and the dreary situation will remain for the next few days. SGT

151208-An annual investment of more than USD$1 billion is required for infrastructure projects in HCM City that will build and upgrade a network of national highways and re¬gional speedways by 2025 includ¬ing No. 1a and 1k and to speed up construction of 7 regional speedways, 4 urban highways and the city's belt-lines by 2025. Some 6 metro routes with a combined length of 107 km and 3 urban railroad routes with a total of 35 km need to be completed in the same period, and 6 more water supply projects and 10 wastewater treatment plants will be also completed by 2025. All these projects in HCM City require a total in¬vestment of USD$15 billion. VNN

061208-According to the HCM City Depart¬ment of Transport, the city has 3,800 buses meeting 6% of the transport demand. The city aims at having 15,000 buses by 2015 to meet 15% of the commuter demand. SGTW

0301089-The HCMC economy, despite the global eco¬nomic recession, has managed a GDP growth rate of 10.7% in 2008, sending the GDP per capita to an average of US$2,534 given the city's population of 6.84 million people (calculated on the average exchange rate of VND16,700 for 2008), or a total of US$17.33 billion, an increase of only 10.7% against 2D07, or the low¬est growth since 2003. According to the GSO the proportion of city households liv¬ing under the poverty line has been reduced to 0.34% and there is no household with an income lower than US$359 per year. Investment for development last year was approximately US$6.9 billion - a year on year increase of 21.2%, and the CPI growth was put at 22.24%. SGT

050109-HCMC attracted USD$8.65bn in 2008 – 5 times higher than 2007. The figure would not decrease in 2009 according to the DPI. Of this, USD$7.83bn came from new projects and the rest from 110 expanded ones. Disbursed FDI in 2007 reached nearly USD$10bn. FDI accounted for 27% of export revenues compared to only 10.3% in 1995. VNN

070109-According to a report from Binh Chanh District's People's Committee, 281 companies out of the 720 companies violated environmental standards in 2008. Many canals are heavily polluted and cannot provide water for agricul¬tural production. Binh Chanh is the city's most polluted district. VNN

070109-HCMC’s Economic Targets for 2009 :
GDP 10.5%
Exports 16.5%
Total Investment VND130tr / $7.65bn
Employment : Jobs for 270,000
Inflation : Below 15%
Poverty Rate : Below 13.8%
SGTW

250409-HCMC has only 0.06% of Vietnam’s total area but 9% of the population. VNN

150509-At least 88 infrastructure projects in HCM City have been delayed for at least 3 years. The MPI blamed the delay on the increase in investment costs, construction materials costs and a slowdown in site clearance as well as the poor quality of bidders. Among the delayed projects are the river embankment along the Sai Gon River in Hoc Mon District that would prevent flooding in the city's suburban districts. VNN

150509-HCMC’s current drainage system can meet only 30% of the actual demand, while scientists have warned that multi-million ¬dollar drainage projects now be¬ing undertaken will soon become out of date upon completion. According to the city's Depart¬ment of Transport, the total length of the current drainage pipelines across the city is around 1,000km, meeting less than one-third of practical needs. Many streets and residential areas still don't have a proper drainage system and several rivers and canals have been flattened be¬cause of inadequate planning, which has worsened flooding in the city. To tackle the problem, an ap¬proved master plan until 2020 en¬visages the city will build 2,500km of open sewage to drain rainwater and another 2,000km to collect wastewater from 8 fac¬tories. Most of the projects were de¬signed based on the database on rainfall and strong tides during the 1999-2000 period, during which the drainage system was designed to tackle only 90-98mm rains cit¬ing the occurrence of 100-mm rain every 3-4 years. Recent observation, however, shows that there are heavier rains of more than 100mm, which will ultimately make the ongoing installation of new drainage pipes outdated and overloaded. VNN

180509-In mid-2009 it was announced that the 3rd Phu Lam-Mien Dong Coach Station metro route will be divided into 2 sub-systems of 3A of Ben Thanh-Mien Tay Coach Sta¬tion and 3B of Ben Thanh-Thu Duc Hiep Binh Phuoc Ward, while the 1st route will be extended to join the 3rd at Cong Hoa Intersection, with 2 additional maintenance depots for the 3rd & 4th routes at Thu Duc & District 12. HCMC will have about 6 metro routes by 2020 according to the amended zoning map. SGT

100609-In mid 2009 the Ministry of Construction announced that HCMC was expected to become a regional with an area of more than 300,000sq.km according to the 2010-50 master plan. VNN

250609-In the best scenario HCMC can only reduce half of the number of flood-prone sites after 5 years, meaning at least 50 frequently-flood¬ed areas in the city persist despite great efforts and money are spent to ward off the chronic problem. Given increasing rainfalls, many sewerage systems under construc¬tion- around the city will be over¬loaded in the coming years. According to the HCMC Flood Control Center, there are over 100 flood-prone sites in HCMC, includ¬ing some 60 sites scattered in inner districts. The deputy minister of Agriculture and Rural Development said they were working on a master project to control flooding in the city which needs a total investment of VND11.2tr / $628m for building a 164 km dike together with some 12 huge sew¬ers to control flooding over an area of some 1,900 hectares. However, an official of the city's Flood Control Center wondered if the ministry's project could have high connectivity with flood-fighting projects being deployed in the city. SGT

280709-HCMC to date has accepted 3,368 valid FDI projects totaling $27bn. SGT

310709-HCMC has around 3,370 FDI projects with a total capital of $27bn. By early 2009, over $10bn of FDI had been disbursed or nearly 40% of the total registered capital. SGT

010909-Some 233 projects with total committed capital of $733m received investment certificates between January and August this year in HCMC. Of these, projects in the property and service sectors accounted for 71.1% with a total of 113 projects and com¬mitted capital of $528.5m. Altogether, the economic hub had 3,397 ongo¬ing projects, with total investment capital of $27.2 billion. Last year, Ho Chi Minh City saw its third consecutive year securing record FDI figures, including mega projects with capital of over $1 bil¬lion. VIR

220909-HCMC is incurring losses amounting to VND14tr / $786m per year due to worsening traffic congestion, according to a scientific research compiled by a professor at the HCMC University of Technology. The research suggests the city quickly upgrade its public transport system. According to the research, the situation could be improved by 2015 if public transport is well developed. SGT

250909-The department of construction said the city needed VND14-15tr ($777-¬833m) a year on average for spending on traffic infrastructure but managed only 30% of the amount. It had to resort to build-operate¬transfer (BOT) and build-transfer (BT) mechanisms or seek Govern¬ment permission to issue bonds. "But the BOT system was not ap¬propriate in some cases while the city could not afford to pay inves¬tors in case of BT." The city also struggled to find enough land for "exchanging land for infrastructure ", since it no longer had much at its disposal. VNN

051009-HCMC will need about $4bn from now to 2025 to develop Saigon Water Supply Corp’s water supply infrastructure facilities according to ADB research. If implemented, the rate ow water losses are expected to fall 20% and water supply capacity increase 3-fold. The length of pipelines needed are expected to double by 2025. SGT

061009-The HCMC Centre for Flood Control is preparing to map iste in the city prone to flooding to minimixe the negative impacts of climate change that are to worsen over the next decades. “For adaptation to climate change, I think the city needs to build ecological wate rreservoirs to regulate rainwater and an adequate drainage system for discharged waste¬water." According to the center, the city has only 2 ,000km of sewers, equivalent to only 1/3rd of its road length. Technically, each km of road requires at least 2 kilometers of sewer. SGT

241209-The inflow of foreign direct investment (FDI) into the city in 2009 fell by a sharp 86% to just over US$1.2 billion. Nearly 370 foreign invested projects had been licensed this year with US$840m in committed capital, falling by 28% and nearly 90% on 2008. In 2009 the biggest project is worth US$294m. Experts said the city's drive to encourage eco-friendly services and hi-tech andless labor intensive projects in sectors such as animal feed, dried food production and textile and garments has had an impact on investment activity. However, FIEs have boosted their capital in the city this year. A total of 114 operational foreign invested projects injected more than US$370m up 3.4%. SGT

281209-The city's socio-economic achievenmf in 2009 : -
- GDP growth rate 8%
- Total budget revenues VND128.47tr / $69.95 up 3.8%
- Per capita GDP over VND46.3m / $2,504 up 21.1%
- Export value US$12.1bn up by 1.3%
- Retail sales and service turnover VND291.59tr / $15.77bn up 19.2%
- Transport service up 17.9%
- Industrial production value up 6.3%
- Agriculture-forestry-fisheries production value up 2.7%.
- 289,600 new jobs created
- Crime rate down 10%
- Tourists: 10.52m
- Foreign tourists 3.5m up 11%. VNN

250110-HCMC will strive to reach 7.7%, 20% and 12.7% yoy increases in industrial growth, retail and service revenue, and export revenue this year, according to the city Department of Industry and Trade. Despite the global economic downturn, HCMC in 2009 earned VND 181tr / $9.79bn from industrial production value, accounting for 27% of the national value. SGT

260210-HCMC aims to attract $8.4bn in FDI according to the DPI and hopes that $1.43bn will be implemented this year. It attracted only $2bn in 2009 – down 77% on 2008. VNN

090310-According to the HCM City Department of Transport, with the current transport system, it takes an hour to reach the Thu Thiem urban area from Tan Son Nhat Airport. When the elevated expressway is com¬pleted, vehicles will need 12 minutes, travelling at 80km per hour. According to the city's plan, there are 4 routes to be built through 2020. The 1st route begins at Tan Binh District's Cong Hoa Street, stretching along Nhieu Loc - Thi Nghe Canal and connecting at Nguyen Huu Canh Street, Dis¬trict 1. The 2nd route starts at District 10's To Hien Thanh Street and ends at belt road No 2. The 3rd route link with the 2nd route at To Hien Thanh Street, spanning along Le Hong Phong and Ly Thai To streets and connect with Nguyen Van Linh Street. The 4th route links Na¬tional Highway No 13, passing Sai Gon River to Dien Bien Phu Street. All of the 4 routes link with each other. VNN

240310-Volker Martin, director of Megacity Re¬search Project for HCMC, said that under some scenarios of climate change in HCMC, some districts would be at high risk of negative impacts includ¬ing the southern part of District 7, Binh Chanh, Nha Be, District 9, the eastern part of Cu Chi District and District 12 east of the Saigon River. "Because of global warming, local problems will not be solved soon. I be¬lieve that HCMC people must learn to live with sea level rise, heavier rainfall and extreme flooding.” Martin said. Martin said that after nearly five years ayf researching dykes here, he found out that the city could not prevent flooding and that it needed more green buffer sites for rainfall absorption. While looking for long-term strate¬gies for coping with climate change, the HCMC government last week petitioned the Prime Minister to provide VND2.7tr / $141m to build 5 large sewers to con¬trol the high level of seawater. The city suffers 96 submerged sites caused by rains and 67 caused by high tides. VNN

200410-FDI into HCMC fell 21% in the first four months of this year to nearly US$444 million committed to 112 new projects, compared to 93 proj¬ects worth more than US$565 million in the year-ago period. However, the contraction was 17% if additional funds injected into operational projects are taken into account, as the combined FDI amount in the period was US$526 million, equivalent to nearly 83% of that in the same period last year, ac¬cording to the HCMC Department of Planning and Investment. The city attracted only US$1.4 billion in FDI in 2009, down 84% compared to 2008. HCMC has attracted the most FDI of all localities in Vietnam. As of mid-March, the city had 3,604 operational FDI projects worth US$27.8 billion. SGT

200710-The HCM City Department of Trans¬port has set itself a target of building 50 new bridges and 210km of roads by 2015 to meet the city's burgeoning needs caused by the increasing number of vehicles. With [this], the percent¬age of land for traffic will edge up to 8.18% of the total city area. The percentage is now 5.84% thanks to 523.5km of road and 84 bridges built in the last 5 years. The department said with 80 private cars and 1,300 motorbikes reg¬istered every day, public transport meets only 7.3 per cent of the city's need. Attempts would be made to expand public transport so that it meets 12% of the need and reduce conges¬tion on the roads by 10 per cent in the next 5 years. VNN

240910-An alarm¬ing land-surface subsid¬ence has been seen in 14 districts in HCM City according to director of the Geomatics Centre of the National University HCMC The pace of the land ¬surface sinking had acceler¬ated recently due to rapid urbanisation and unchecked exploitation of underground water. Land surface in many ar¬eas had subsided by 20-30cm, and in some places. had sunk by 50cm since 2004 many with a sinking rate of 7-10mm per year. "The decrease in underground water due to a massive use of concrete and filling of canals caused by urbanization and the increasing exploita¬tion of the underground water are major reasons behind the ground surface deformation." VNN

011010-Economists have come up with the Financial Center Index (FINDEX) to gauge how developed a financial hub is. While official quantitative research on this matter is still nowhere to be found, such criteria as stock market capitalization, the number of foreign financial institutions and branches of multinationals, as well as the total means of payment via banks and the stock market seem to suggest that HCM City is poised to become Viet¬nam's financial hub. A recent report by the Securities Industry Association (the US) indi¬cates that a reputable financial hub must have (1) a stable economic-po¬litical system, (2) a fair, transparent, effective and sound tax system, (3) skilled labor and a flexible labor mar¬ket and (4) high-quality infrastruc¬ture. In a financial hub, the market is fair and open; capital can flow freely; the labor market is flexible; interna¬tional standards are adopted; English is used widely; the legal framework is well-developed to ensure equity, transparency and efficacy; taxes are fair and justified; business costs are low; and infrastructure is excellent. Of course HCM City's performance on these criteria and other yardsticks still leaves much to be desired. SGTW

251010-Around 26% of HCMC residents are suffering from effects of climate change and the figure may rise to 60% in 2050 according to the Asian Development Bank. SGT

241110-The Ministry of Transport has submitted to the Government a traffic development plan under which the Southern Key Economic Zone will need VND681tr / $34.9bn for traffic infrastructure during the 2011-2020 period. The sum includes VND326tr / $16.7bn for roads and VND168tr / $8.6bn for railroads. SGT

301110-The Ministry of Natural Resources and Envi¬ronment flooding scenario forecasts that the sea level may rise about 30cm by 2050 and 75cm by the end of the century. This would place more than 200sq.km, or 10% of HCMC under water. VNN

Date : Sunday, 04 October 2009
Category : Hanoi


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301208-Ha Noi’s total export turnover surpassed US$6.9 billion this year, rising 35.5 per cent against the previous year, according to the General Statistics Office. Exports from the capital to domestic destinations hit $3.5 billion, a year-on-year rise of 25.2 per cent. Ha Noi has several key export sectors experiencing strong growth rates, including agricultural products, garment and textiles, footwear and electronics. Throughout the year Ha Noi imported a large quantity of goods worth over $23 billion, rising 26.8% against a year ago with domestic imports at $7.9 billion. VNN

070109-The capital city of Hanoi auctioned about 40 hectares of land to earn about VND 3 trillion / $176.6m in 2008, while the land set aside for resettlement projects barely met the demand of some key projects. SGT

240309-Hanoi posted an economic growth of merely 3.1% in the first quarter this year, the lowest growth rate in as many years. The corre¬sponding first-quarter growth rates in 2007 and 2008 were 11.2% and 10.9% respectively. SGT

190509-The Government has approved the establishment of Ha Dong & Me Linh Districts under the newly expanded Hanoi City. SGT

300709-Hanoi government will supervise the use of public land of State run companies in the city. SGT

160310-A new national administrative centre is set to be built in Ba Vi town, 50 kilometres from Hanoi's centre. The Hanoi metropolitan develop¬ment master plan to 2030 with a vision towards 2050 arrived on the govern¬ment's desk last week from the Min¬istry of Construction (MoC) and its consultants Perkins Eastman, Posco E&C and JINA. The My Dinh area could only accommodate some administrative offices. The government's administrative offices will be gradually moved to Ba Vi, to shape a new centre there in 2030. Hanoi will be developed with Hoan Kiem at its heart, surrounded by ring roads 1, 2, 3, 4 and 5. Between the 3rd and 4th ring road would be large area of trees and rivers, to keep the city's environment clean. Hanoi will also have satellite urban development areas in Hoa Lac, Soc Son, Xuan Mai, Phu Xuyen and Son Tay. The satellite areas will decen¬tralise population and decrease pres¬sure on the city's central areas. The satellite areas will be linked by the Lang-Hoa Lac expressway which is expanding to become one of the biggest expressways of the country. A new built road named Thang Long, will start from Hoang Quoc Viet cutting through Pham Van Dong road leading directly to Ba Vi to serve the future administrative centre. The road would also accom¬modate museums, libraries and parks. VIR

170310-List of 7No. New Urban Cities approved by Hanoi People’s Committee : -
New Urban Area – NUA Location Developers
Sai Dong NUA Sai Dong town Construction JSC No 3
Co Nhue - Xuan Dinh NUA Tu Liem district Hanoi Housing Svc 1Member State Co
Dang Xa NUA Gia Lam district Viglacera
Van Quan - Yen Phuc NUA Ha Dong district Housing & Urban Dev Corp
South Thang Long Tay Ho district Citra Westlake City Development
Dong Me NUA Tu Liem district Song Da Urban & IZ Inv & Dev Co
Southeast Tran Duy Hung Cau Giay district Industry Constr Co – VIR

030610-The Hanoi master plan forecasts a GDP growth rate of approximately 8% between 2020 and 2030, with GDP per capita reaching about US$11,000 in 2030. In 2030, the population would hit 9 to 9.2 million, and land needed for construction in rural areas would reach between 39,000 and 40,000ha. According to the report, housing spaces in urban areas will rise to more than 30sqm per person and the urbanisation ratio will be at around 70%. Under the master plan, the capital will be built in line with a sustainable development model. The core urban centre will be linked with 5 satellite urban areas and other towns in the surrounding rural areas. The core urban centre will be formed by the east ¬west axis of the Thang Long, Highway 32, Lang ¬Hoa Lac Highway and Highway 6. Of which, the Thang Long axis will con¬nect with Hoang Quoc Viet Road, Highway 21, West Lake and Ba Vi ar¬eas. It will become the main traffic axis in the transportation corridor. The national political centre will also remain in Ba Dinh District. Land has been set aside for devel¬opment of the Govern¬ment and administrative offices in Ba Vi until 2050. And the national administrative centre will remain around Hoan Kiem Lake. Total investment capi¬tal for infrastructure de¬velopment from 2010 to 2030 is approximately $60 billion. Transporta¬tion will cost $33.3 bil¬lion. By 2050, invest¬ments will further in¬crease by $29.9 billion, of which transport will ac¬count for $16.8 billion. VNN

260610-Hanoi has about 3.5m motorbikes and 330,000 cars on its roads. The masterplan for sustainable development of Hanoi’s transport system to 2030 sees 20-26% of land used for transport, up from 7% now. The capital needed for development of the system is estimated at $20bn. Public transport will meet 55% of demand by 2030 and 65% afterwards. VNN

030910-Hanoi’s size tripled since it was merged with the former Ha Tay province and parts of neighbouring Vinh Phuc and Hoa Binh provinces. VIR

140910-Hanoi's GDP growth rate in the first 9 months is estimated at 10.6%. The manufacturing and construction growth rate is estimated at 11.4%, services at 10.5% and agriculture ¬forestry 5.6%. SGT

200910-The government of Hanoi City has issued a decision banning the transfer of ownership of social houses within the first 10 years of the contract signing. Own¬ers of the houses would be allowed to transfer their properties once they fulfill their down payments and receive ownership certificates. SGT

021110-Hanoi will build 284km of modern rail services on 8 routes to 2030 to connect Hanoi with satellites cities and neighbouring areas. SGT

141210-Hanoi set a target to achieve GDP growth of 12% in 2011 and approved the land price list with the highest rate of VND81m / $4,154sqm. SGT

Date : Sunday, 04 October 2009
Category : Global Real Estate


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120203 – VNN. Global Real Estate - US real house prices to rise 4.8% this year to a median or middle of the range price of USD$165,800 according to the National Ass of Realtors

250603 - SGT The 88 storey 420m high "Two Int Finance Centre (IFC)," HK's tallest building and world 3rd tallest completed its exterior yesterday. It provides 520,243sqm and approximately 200,000sqm of office accommodation.

020703 - SGT. Taiwan's tallest building, a 508m 101 storey building known as Taipei 101 and due to be completed in 2004 will seek certification as the world's tallest building ahead of current No.1 the 452m Petronas Towers.

MIPIM March - Leslie Chua JLL Singapore Research - Japanese companies allocate 14-15sqm per employee compared to 20sqm in US of Europe. Over the next 3 years, Tokyo will have 20 million sqm of new rentable space.

MIPIM March - JLL says overall vacancy rate in Guangzhou was 8.1% at as end Dec02 - up0.1% in 3 mths; Grade A rentals were stable after rising 6.3% in the first 3 Quarters of 2002. In Shanghai take up was 160,000 sqm in 4th Quarter of 2002.

MIPIM March - The av rental in BKK is $10.52 per sq down by around 42% from the peak of 4th Quarter 1997.

MIPIM - Chinese development giant Zhongrong, is speculating on 270,000 sq m of prime office space in Liujiazui, Shanghai's new business district.

MIPIM - Shanghai World Financial Centre - With a total floor area of 377,300 sq m and a height of 492 metres, it will become the world's tallest building. Set for completion in 2007.

MIPIM - Two 143-metre-high office towers of the new Nile City Financial Center in Egypt's capital Cairo have just been topped out with 175,000 sq m.

MIPIM - Sao Paulo : about 116,000 sqm of new space entered the market in 2002, a similar amount to 2000, with 185,000 sqm of speculative Grade A space due to open this year.

080803 - London's West End remains the most expensive place in the world to occupy offices, with space costing USD$149 / sq ft pa inc S/C according to CBRE, despite a fall from USD$151 six months ago. Midtown Manhattan is now 14th at USD$54 / sq ft pa. VNN

080903-A square metre of land with street front, even without running water, on busy commercial areas averages $10,000. The same property rented out would bring in around $150 per square metre per year. Suburban homes are priced between $40,000 and $50,000, or around $400 per square metre, not a small sum in a country where per capita income still hovers around $400 a year. That compares with an average $800 per square metre for an apartment in Bangkok where per capita income is about five times higher. VIR

220903-Construction minister Nguyen Hong Quan said the development of the property market was abnormal and housing and land prices in Vietnam were the most expensive in the world if economic growth rates and average per capita income were taken into account. One square metre of land in Hanoi's Hang Gal street is now reportedly worth $20,000 - almost 10 times higher than four years ago. Land and housing prices in Hanoi and Ho Chi Minh City are three to five times higher than five years ago. VIR

220404-Property prices in Shanghai rose nearly 30% in the 1st Quarter over a year earlier. Local officials played the down risks of a price bubble that could collapse. Nationwide, real estate prices rose 7.7% compared with the same period of 2003. Shanghai's 28.3% jump was the fastest rate of increase among 35 major Chinese cities. The highest rates of growth were in the north-eastern city of Shenyang, at 19.5%, and the eastern coastal city of Qingdao, at 16%. Hong Kong authorities have been struggling for years with a collapse of a property price bubble in the late 1990s that left tens of thousands of homeowners saddled with negative equity. Property prices fell by as much as two-thirds in Hong Kong before a slight recent recovery. Critics say the real estate market still plays a disproportionate role in the local economy with Shanghai's average commercial housing price at the end of 2003 was 5,188 yuan per square meter (US$58), up 24.2% over the previous year. VNN

150604-The Asian Venture Captial Journal has estimated private equity funds have invested a total of USD$3.4 billion in South Korea so far this year, although separate estimates for property investment were not available. Japanese officials estimate that nationwide land prices have fallen 48% from their peak around 1990 back to levels seen in 1984. SGT

240604-Actual FDI in China in 2003 was USD$53.5 billion according to government statistics. In the first 5 months of 2004, China drew USD$25.9 billion in FDI - up 11.3%. VIR

0502 - One of the most striking features of the Chinese economy is the huge amount of domestic savings in the economy,averaging about 40 percent of GDP, which compares very favorably, of course, with basically almost all international comparisons. IMF.

290604-US base rates are to rise to 1.25% from 1.0%. Mortgage rates hit a low since 1958 last year. The 30 year fixed rate mortgage now averages 6.25% from 5.24% a year ago. The sale price of an average house has exceeded the overall rate of inflation by more than 40% over the last 8 years. A cooling of the market might be considered healthy in some hot zones such as Manhattan, where prices rose to 43% in one year and a 2-bedroom apartment now costs more than USD$1 million. Nevertheless, fears of a housing implosion are widely discounted by economists, largely becase mortgage rates remain so low by historial comparisions, and are likely to remain so in the near future. Also, interest rates will only rise as the economy gains strength, which in turn should provide support to real estate. VNN

300604- Investment flowing out of the 30 industrialised countries belonging to the OECD rose slightly to $576 billion from $567 billion in 2002 but down from $662 billion in 2001 and $1.2 trillion in 2000. This meant that overall the net amount of investment by OECD countries in the rest of the world rose six fold in 2003 to $192 billion from $31.7 billion in 2002. The OECD commented: "China overtook the United States in 2003 as the biggest recipient of foreign direct investment, attracting $53 billion from OECD countries and elsewhere. "The size of domestic markets in big developing emerging economies, particularly China, is attracting foreign firms. Russia attracted only $1 billion of foreign direct investment in 2003, one quarter of the amount received by India from OECD companies. Conventional thinking argues that the United States must attract substantial amounts of foreign capital to fund its economy and make good a shortfall of domestic savings, and that a substantial fall in the inflow of investment in US business could cause long term problems for policymakers. "In the United States, FDI fell to $40 billion in 2003 from $72 billion in 2002 and $167 billion in 2001. VNN

Asian property still seen as risky : Tokyo a better bet – July 2004 : Western investors remain ner-vous of owning Asian prop¬erty after burning their fingers in the region's financial crisis. Most investors are de¬manding quick, high returns because the 1997-98 economic crisis and property market slide are so fresh in the memory. Deals with "opportunity funds" were common in the aftermath of the crisis. The funds typically refurbished or improved manage¬ment of buildings in the hope of selling quickly at a hefty profit as soon as the property market picked up. "The bulk of money still has the `opportunistic' tag and wants 20% plus returns," Graeme Torre, head of Asia property at Henderson Glo¬bal Investors, told a confer¬ence in Singapore this week. "It's hard to know where to start : convince foreign in¬vestors to take less return or persuade locals to take less for property." The highest rental yields for offices in Asia are in New Delhi, at around 12.7%, against 5.5% in Tokyo and 3.8% in Singapore. "The challenge is to get sticky money, like U.S. pen¬sion funds. We're getting three to five year money, not short term, overnight money. But it's not 10-year." The advent of listed prop¬erty trusts in Asia three years ago has made it easier to value buildings and buy and sell in many markets. This could persuade investors to take a longer-term view of Asia, Torre said. "As we see greater securitisation, so we'll lose the risk tag that goes with Asian property," he said. Henderson has US$250 mil¬lion in direct property invest¬ment in Asia and US$ 100 mil¬lion in property securities. Real estate investment trusts (REITs), which pay most of the rental income on buildings they own as dividends, have taken off in Ja¬pan, Singapore and South Korea, providing a market valuation of buildings and boosting transactions. Hong Kong and Malaysia have also passed laws to allow REITs, and the Philippines and India are working on them. A director at Mitsui Fudosan Investment Advisors said he liked "grade B" offices because their prices had not moved up as fast as some top grade buildings in recent months. "In Tokyo they are very empty and few have professional manage¬ment," he said. "There are lots of opportunities to add value." John So, director of invest-ment at Grosvenor Asia, which has around US$500 million in Asian property, pre¬ferred residential. "There are decent yields of six percent and with the popu¬lation growth in Tokyo, the market's poised," So said. Morgan Stanley said there were still opportu¬nities to buy distressed as¬sets in Japan and sell into the REIT market. But because Morgan Stanley's "eggs were all in one basket", with 70% of its Asia property funds in Japan, Kalsi was also looking harder at China and India-where firms are moving manufacturing and back-office jobs from the West. Analysts say Delhi is con¬sidering easing restrictions on foreign investment in property. "What keeps me up at night is someone might beat us into India." Morgan Stanley said. SGT

290604-US base rates are to rise to 1.25% from 1.0%. Mortgage rates hit a low since 1958 last year. The 30 year fixed rate mortgage now averages 6.25% from 5.24% a year ago. The sale price of an average house has exceeded the overall rate of inflation by more than 40% over the last 8 years. A cooling of the market might be considered healthy in some hot zones such as Manhattan, where prices rose to 43% in one year and a 2-bedroom apartment now costs more than USD$1 million. Nevertheless, fears of a housing implosion are widely discounted by economists, largely becase mortgage rates remain so low by historial comparisions, and are likely to remain so in the near future. Also, interest rates will only rise as the economy gains strength, which in turn should provide support to real estate. VNN

020804- “The average price of the market is to rise 8 per cent in the later half of this year, and another 10 per cent to 15 per cent increase in the next year”, said Victor Lai. managing director of Centaline Surveyors Limited, a leading real estate research company based in Hong Kong. The average price of building unit transactions rose 10 per cent to 1 5 per cent in the first six months this year. For example, prices at Taikoo Shing, one of the most popular estates in Hong Kong, rose by 66 per cent from its low in May 2003, and 23 per cent from the start of this year to HK$4,400 / US$504 per square feet, about 0.09 square metres. VIR

150904-Hong Kong property prices fell some 70% from their peaks in 1997-8 as Hong Kong’s economy faltered through the Asian financial crisis. VNN

281004-China's real estate may be overheated : Soaring prop¬erty prices in China suggest the government's macro ¬control measures are not ad¬equately addressing over¬heating in the real estate sec¬tor, state press said yesterday. "The prices are beyond the reach of many people despite the government's clampdown on credit and the introduction of a raft of measures, including tighter land-planning rules, "Zhang Xueying, a senior economist with the State Information Centre, told the China Daily. "Some bubbles are felt in the real estate sector... if there is no bubble„ who will buy this housing?" he said. Average property prices rose 13 per cent during the first nine months of the year, while prices for residential housing were up 10.9 per cent during the same period, according to official data. Prices for residential housing in Beijing were be¬tween 7,000 yuan (US$843) and 8,000 yuan per square metre, but the average annual income of Beijing residents was only about 10,000 yuan, the news¬paper said. VNN

011104- Krabi now has 24 spas oprating. “More and more tourist are coming here, especially during low season for spa services” Chairman of Krabi Spa Club said. In 2003, Krabi took 1.4 million tourists, a massive jump from 1 million in the previous year. Most come for recreational activities such as cliff climbing, canoeing and diving. Knight Frank

011104-Over the first 9 months, the Government Housing Bank of Thailand extended new loans worth USD$184 million, an increase of almost 48% on last year. There were 142,049 new borrowers and the average loan per individual was USD$12,683. At least 70% of the bank’s clients borrowed up to USD$24,390 and they have net monthly income of around USD$244 per person. KF

271104-An averagely priced house today in UK costs some 6 times average annual earnings whereas the historical multiple is somewhat below 4. VNN

031204-China has agreed to let foreign courier companies operate wholly owned international express mail businesses in the mainland from the end of next year as a condition of its membership in the WTO. “UPS will have the flexibility it needs to expand operations and to invest in facilities, infrastructure, technology and employee development” according to its President. UPS’s export volume in China jumped 129% in the 3rd Quarter of this year compared with the same period of 2003. Exports for the year are up by more than 90% from last year. All the major international shippers have been expanding their China operations. Rival DHL Express is spending USD$215 million on express and logistical infrastructure in China over the next 5 years. VNN.

121204-Global property investors see China as the top pick in Asia after Japan as the potential for fat profits more than compensate for the risk from regulatory uncertainties, most fund managers and bankers agree. Residential developments can yield profits of as much as 40 per cent, making them attractive for investors seeking a risk premium of at least seven percentage points over the return on projects in more devel¬oped countries. "Institutional investors would say they're more afraid of not being in China now," Craig Wallace, associate director at Macquarie Real Estate Asia, told a property conference in Hong Kong. Wallace said Macquarie's priori¬ty markets in Asia were Japan, fol¬lowed by China and South Korea. He thought Singapore property would attract funds in the next cou¬ple of years "by default" as investors pulled out from fierce competition for deals in the other markets. Most prominent foreign property investors in China, such as ING Real Estate, Morgan Stanley and Singapore developer Capital-and Ltd, like the fast cash turnaround from building flats for a middle class empowered by rapid economic growth. Macquarie, for example, has teamed up in a joint venture with fund manager Schroder Asia Proper¬ty to buy land in an open auction in Shanghai for an apartment project. Office and retail buildings often only give single-digit yields and many foreign investors fear they will be difficult to sell in such an immature property market. However John Pattar, managing directory at CLSA Private Equity Property Fund, said corporate restructuring in China gave poten¬tially lucrative opportunities for buying and refurbishing old build¬ings and acquiring half-finished buildings. He said CLSA was looking to team up with a local asset management firm, with the local partner putting in 10-15 per cent of equity. "We're very keen to form a relationship with that kind of group," Pattar said. "We're keener on existing assets." Douglas Morton, a managing director at JP Morgan, said European investors were more keen on Chinese property than their US counterparts, but added that "the Americans are catching up". He said investors typically demanded a 7.5 - 10 per cent risk premium, mostly because of unpredictable decision making by several layers of government. By comparison, real estate investment trusts (REITs) are trad¬ing at around 4 per cent yields in Japan and at 5-6 per cent in Singapore, while Hong Kong's first issue is expected to yield up to 6.8 per cent on its initial public offer (IPO) price. "You're dealing with four or five levels that you have to keep happy," Morton said. "There are a lot of peo¬ple who could make decisions that could have an effect on your IRR (internal rate of return)." Wallace said Macquarie would only consider projects with returns of at least 15-20 per cent. He said a government decision to freeze bank lending for land purchases showed how fast regulations could change, but added this decree had forced I many local developers out of busi¬ness and helped foreign investors. VIR

271204-The Samsung Corporation of South Korea has won the contract to build what will be world's tallest building, the Burj Tower in Dubai. Samsung won the $306 mil¬lion deal to build the tower, part of an $8 billion 500 acre project in the United Arab Emirates. Workers have already started work on clear the ground for the 800 metre high, 160 floor sky¬scraper, which the company expects to be completed by November of 2008. When completed it will be taller than the current holder of the title of world's highest building, Tai¬wan's 509 metre TFC 101 build¬ing. VIR

1205-Global property investors see China as the top pick in Asia after Japan as the potential for fat profits more than compensate for the risk from regulatory uncertainties, most fund managers and bankers agree. Residential developments can yield profits of as much as 40 per cent, making them attractive for investors seeking a risk premium of at least seven percentage points over the return on projects in more devel¬oped countries. "Institutional investors would say they're more afraid of not being in China now," Craig Wallace, associate director at Macquarie Real Estate Asia, told a property conference in Hong Kong. Wallace said Macquarie's priori¬ty markets in Asia were Japan, fol¬lowed by China and South Korea. He thought Singapore property would attract funds in the next cou¬ple of years "by default" as investors pulled out from fierce competition for deals in the other markets. Office and retail buildings often only give single-digit yields and many foreign investors fear they will be difficult to sell in such an immature property market. Investors typically demanded a 7.5 - 10 per cent risk premium, mostly because of unpredictable decision making by several layers of government. By comparison, real estate investment trusts (REITs) are trad¬ing at around 4 per cent yields in Japan and at 5-6 per cent in Singapore, while Hong Kong's first issue is expected to yield up to 6.8 per cent on its initial public offer (IPO) price. "You're dealing with four or five levels that you have to keep happy," Morton said. "There are a lot of peo¬ple who could make decisions that could have an effect on your IRR (internal rate of return)." Wallace said Macquarie would only consider projects with returns of at least 15-20 per cent. He said a government decision to freeze bank lending for land purchases showed how fast regulations could change, but added this decree had forced many local developers out of busi¬ness and helped foreign investors. VIR

230205-Hong Kong property values have climbed 55% since a trough in mid 2003 when a SARS outbreak ravaged the economy, and economists project a further 16% rise this year. SGT

020305-The Nationwide BSoc said the average British home cost 152,857 pounds in February, around 14,000 pounds higher than a year ago. VNN

240305-The tender for the 3.55 hectare waterfront plot – Singapore’s first sale of government land for commercial use in 3 years – fetched an initial offer of up to USD$479 million (ie $13,500/sqm or $135m/hectare!) yesterday from an unidentified developer. SGT

010405-The Nationwide said the average house price stood at 153,876 Pounds in March. VNN

040405-Home prices in the US last year rose 8.3%, the fastest pace in a decade, to a median level of USD$184,100, government figures show. But in some big metropolitan areas including Washington and San Francisco, prices are up about 20%. Home prices have risen 40% since 2000 whlie “the ratio of average yearly rents to house prices has been dropping steadily” according to an economist from the American Eneterprise Institute. VNN

150305-Shanghai: Average housing prices in Shanghai stood at 5,118 yuan ($618) per square meter - China's second-most expensive city, state media reported. But developers have said prices can soar as high as 55,500 / $6,700 per sq meter at the luxury end. VIR

110505-Home prices in mainland China's richest city, Shanghai, have dropped so sharply in the last month that analysts fear government efforts to cool a prop¬erty boom could overshoot, engulf¬ing banks and hurting the wider economy. Property agents say mid range and luxury apartment prices have fallen up to 10 per cent in the last two weeks and few sales have been completed as buyers expect the market to drop more. "We think prices might fall an¬other 20 per cent in the next three months," said Shanghai-based Bondi Mau of Midland Realty, a Hong Kong estate agent. "It's be¬cause in the last two years the mar¬ket has gone up so fast, a bubble formed." The property price slide follows a Shanghai government move early last month to force home owners to pay the balance of existing mort¬gages before they can sell, and the introduction in March of a capital gains tax on flats sold in a year of purchase. The central bank also removed a discount on mortgages in March, effectively raising a five-year rate by 20 basis points. Last year, the central govern¬ment, fearing capital was being di¬verted to property from needy ar¬eas such as energy and transport, restricted bank loans to developers and cut land supply. But those mea¬sures helped lift prices. "There's a concern they might overdo it and prices might col¬lapse," said JP Morgan analyst Raymond Ngai. "So far the mea¬sures have been bit by bit. If they're not effective, they introduce more." Speculation had been rife, espe¬cially in Shanghai. Developers say purchase contracts for some spar¬kling new 100 sq.m apartments doubled in price last year to as much as HK$550,000 / $70,500 before construction even finished. Chinese "investor clubs," pool¬ing cash from friends and relatives, would buy up several floors of a project. Some individuals own four or more flats, even in areas of Pudong where only about a third of the flats are occupied, judging by the number windows with lights on at night. Singapore, Hong Kong and Tai¬wan businessmen poured in, hop¬ing a yuan currency revaluation hikes the dollar value of assets. A revaluation, which many ana¬lysts believe will come this year, could persuade foreigners to cash in on the 50 per cent climb in luxury apartment prices since mid¬2001. Shanghai's rapid economic growth - 13.5 per cent last year - and an influx of roughly 120,000 people a year from other regions, have contributed to demand. But analysts say Shanghai's downturn could spread to other east coast cities, dampen consumer confidence, and burden banks with soured mortgage loans just as they are trying to clean up their books for planned initial public offer¬ings. "You could see local consump¬tion fall, negative equity and unem¬ployment, "Ngai said. "More of a concern is the bank¬ing system - whether banks in China can survive if prices come down 30 or 40 per cent," he said. "With a loan to valuation of 80 per cent, some home buyers might choose just to default. " Reuters – VNN

300505-China is repeating Japan's worst mis¬takes in the asset bubble of the 1980s and could soon come down to earth with a "rude shock", a top Japanese official has warned. Hiroshi Watanabe, head of inter¬national affairs at Japan's finance ministry, said the speculative excesses in China could set off a regional crisis. "We are very worried about the situation. The enormous inflow of funds into China over the last year is creating excess liquidity, which the authorities have so far been unable to sterilise in the domestic markets. We're seeing a bubble simi¬lar to what we had in Japan in the 1980s. Look at property prices in Shanghai. "We have an old Asian proverb: the higher the mountain, the deeper the valley," Watanabe said, predicting an "abrupt adjustment" with serious knock-on effects on South Korea, Thailand and, less directly, Japan. Japan's property and share market bubble peaked with a speculative surge in 1989, when a single square mile of Tokyo was theoretically worth more than many of the world's coun¬tries. More than 15 years later, the Nikkei stock index is 28 per cent of its former value, while the economy faces its eighth year of price deflation. Watanabe said Beijing faced the risk of a peasants' revolt as it prepared to revalue its currency under US pres¬sure. "Let's not forget that China's agri¬culture is very uncompetitive and would risk being driven onto the ropes by imports of foreign food. "Beijing cannot allow a surge in the numbers of unemployed farm workers, especially at a time when coastal industry is absorbing less manpower." Professor Steve Hanke, a leading currency expert at Johns Hopkins University in Baltimore, Maryland, said China would be foolish to reval¬ue its currency, even if this meant US trade sanctions before the end of the He warned that revaluation could set off a catastrophic deflation in asset and property prices. "Non-performing loans would just explode. You would have a real crisis on your hands in China. They're aware of this, so I don't think they'll change." Beijing has held its currency down through the massive purchase of US Treasury bonds, keeping the consumer boom alive throughout the US in the process. Meanwhile, Alan Greenspan, head of the US Federal Reserve, distanced himself from US policy over the weekend, saying it was quite unlikely that a Chinese revaluation would improve America's trade deficit, a record $617 billion last year. VIR

140605-The Office of the Deputy PM said the average house price in April stood at 181,832 Pounds compared with 183,346 Pounds in the prior month. The annual rate of house price inflation in London fell to 2.7% in April from 9.8% in March. VNN

140605- Chinese property purchase plans have fallen in the second quarter due to government steps to deter excessive investment in real estate, a central bank survey has shown. The survey of 20,000 urban residents con¬ducted in May by the People's Bank of China found 19.1 per cent of respondents were plan¬ning to buy property in the next three months, 2.9 percentage points lower than the level in the first quarter, the bank said. The government has, since early this year, taken a series of steps to cool down the heated property sector, including raising mortgage rates and down-payment requirements and imposing a capital gains tax on property resold within two years. "The announcement of such measures has created an important impact on the real estate market and led to changes in the psychology and behavior of residents," said the bank in a report. VIR

250605-The way Macau property prices are soaring while rows of new apartment blocks stand nearly empty, investors could be forgiven for thinkinL that the mushrooming casino business is providing the gas for a property bubble. Macau developers can still sell sparkling high-rise blocks in just a couple of weeks. but buyers are taking a big risk. There is hardly any rental market-only around a tenth of new apartments are lived in. "There's a tremendous feelim, of a gold rush town." said Elaine Young. chief executive of Hong Kong serviced apartment firm Shama. which is look-in- to expand into Macau. "The property market has risen outrageously." Apartment prices rose 50 per cent last year. Property agents predict the same in 2005, and analysts at investment bank Merrill Lynch expect the cost of an apartment to double in three years. But the rampant speculation, mostly by people from Hong Kong and the rest of China, is based on economic fundamentals. Gross domestic product (GDP) grew 28 per cent last year thanks to a 40 per cent jump in tourists visiting the only place in China where casinos are legal. Per capita GDP for Macau's 465,000 residents has risen to the level of New Zealand's from that of Slovenia in just one year. Officials predict 20 million visitors will pour in this year, a fifth more than in 2004. Investors are betting there will be a bigger boom in 2007, with the opening of the first phase of the Cotai Strip of opulent casinos, plush hotels and shopping malls, being built on about 5sqkm of land reclaimed from the silt¬clogged Pearl River delta. The 60,000-room seven-ca¬sino three-phase project was dreamed up by Las Vegas gamipg tycoon She ldon Adelson. Hoteliers involved include Hilton Group, Marriott International and Four Seasons Hotels Inc. "I don't see a bubble," said Gregory Ku, head of property consultants Jones Lang LaSalle in Macau, who has privately invested in two Macau apartments. "A bubble means there are no good things to support the market. But Macau has many." The number of mainland Chinese approved for residency in Macau nearly trebled last year to 6,883 - each bringing mandatory property investment of US$128,000. A typical 2,000sq.ft, three-bed¬room luxury apartment costs $900,000, but that is still only a tenth of some projects in Hong Kong, an hour away by ferry or 10 minutes by helicopter. Authorities are considering market-cooling measures, such as a cut in bank loans to 70 per cent of a property's value, from 90 per cent, but Merrill Lynch analyst Hillman Wong points out that similar moves in Hong Kong did little to quell speculation there in the 1980s and 90s. – Reuters VNN

010705-UK house prices were rising by 20% a year earlier. Today the average house price is 157,791 Pounds. A recent retail survey show retail sales fell at their fastest pace in a least 22 years this month. VNN

030705-In Shanghai, shopping mall vacancy rates have fallen to about 7% from 15% 2 years ago, allowing landlords to raise rents to an average $4 per sqm from $3 (?!). Rent as a proportion of sales turnover has risen to about 40% from 30% in that period, according to CBRE. VIR

260705-House prices in England and Wales were down 3.74% over the last 12 months, the most marked fall since Hometrack records began in March 2001. At 161,300 Pounds, the average house price was the lowest since November 2003. Hometrack again.revised down its 2005 house price inflation forecast. It now sees a 5% fall, compared to flat prices predicted in June and a 3% rise in May's re¬port. Data last Friday showed Britain’s economy grew by just 1.7% year on year in the 2nd quarter, the slowest pace in 12 years, as manufacturing fell into recession. VNN

050805-On an annual basis, Britain's economy showed its weakest per¬formance for 122 years during the 2nd Quarter, as the manufactur¬ing sector fell into recession, con¬sumers held onto their money and - house prices showed slower growth. VNN

290805-Nationwide, average US house prices are up 50.5% over the past 5 years. VNN

010905-South Korea yesterday announced a package of drastic tax measures aimed at curbing a real estate bubble, declaring that there will be no more speculation in residences and land in this country. The long-awaited package in¬creases capital gains taxes on people who own two homes to 50 per cent from the current rates of between 9 and 36 per cent. The tax rises to 60 per cent for inves¬tors who hold three homes. "Dear people, we hereby de¬clare that there will be no more real estate speculation in this country," Finance and Economy Minister Han Duck-Soo told a press conference. The package, effective from 2007, also targets the rich and people who own large tracts of idle land. Residences worth 600 million won (US$583,200) or higher will be levied ownership taxes amounting to between 1 and 1.5 per cent of their market prices. Han said the measures would rein in capital gains obtained through real estate speculation by using what he called "small-loop dragnets of taxation" through the country's treasury. "Don't deceive yourselves that these measures will be short¬lived. These are very drastic, long¬term steps," he said. The tax package came amid a real estate bubble in Seoul and provincial areas designated for development. Prices of apartments in Bundang, South of Seoul, jumped 24 per cent in the first six months to June this year alone despite an economy which is still struggling with sluggish consumption and slow exports. AFP/VNN

1109-Rising oil prices, concern about a global real estate bubble and the problem of ageing populations will be in focus at this week’s Pacific Rim finance ministers – APEC – forum. The South Korean finance minister said concern was growing that an unprecedented bubble was forming in the global real estate market. If it burst, it would seriously hamper the growth of both local economies and the global economy. SGT

140905-Property loans are on a runa¬way course in new EU mem¬ber states in former commu¬nist east and central Europe, and in EU aspirant countries, a report published at an eco¬nomic forum in Poland by Ita¬ly's UniCredit bank showed Thursday. "The annual increase of property loans was in the re¬gion of 43 per cent in `New Europe' between 2000 and 2004, versus 8 per cent in countries in the eurozone," said Andrea Moneta, head of UniCredit's New Europe di¬vision. "Consumer loans in these countries rose 12 per cent (between 2000 and 2004), against 2 per cent in the eurozone,"Moneta said. The increase in lending volume was expected to continue, especially in the light of the low levels of in¬debtedness of households in the 12 countries studied. According to UniCredit's report, debts carried by households in "New Eu¬rope" rose from 7 per cent of GDP in 2000 to 12 per cent in 2004. In the eurozone, household indebtedness rose from 46 per cent to 50 per cent during the same period. Higher disposable in¬comes in New Europe will also help to fuel the credit boom, which was unlikely to result in "a threat from a mac¬roeconomic point of view," Moneta said. He also ruled out the prospect of the property market peaking in the near future. AFT VNN

210905-Tokyo land prices rose for the first time for 15 years. The average of residential land in Japan as a whole fell 3.8%, declining for a 14th straight year. The average price of commercial property across Japan dropped 5% - also a 14th consecutive fall. VNN

031005-Average condo price in inner BKK is $1,900/sqm – Knight Frank

161005-Singapore’s new Tower 2 of Saill at Marina Bay – to be completed in 2009 – has less than 30 out of 430 units unsold in the Tower 2 where the prices of a 1-bed unit measuring 57-72sqm can set a buyer back at least USD$366,864 / $5,095-$6,436sqm. At least 30% of biyers were from the region, especially China, HK, Indonesia, Taiwan and India according to City Dev Ltd – CDL. VNN

221005-Ac¬cording to figures from the Japan External Trade Organisation (JETRO), monthly office rental for a square metre in 2004 was US$20 in HCM City and $27 in Ha N6i, compared with $6 in Karachi, $6 in Manila, $11 in Bangkok, $22 in Jakarta, $32 in Hong Kong and $33 in Singapore. Although telecom charges have fallen in Viet Nam during the past few years, from $7 in 2002 to $2 in 2004 for a three-minute call from Ha N6i or HCM City to Ja¬pan, the rate was still higher than the average telecom charge of $1.83 for the region. In 2004, power costs for manu¬facturing in Viet Nam were 5.5 cent/kWh compared with 4.2cent/ kWh in Bangkok and 5 cent/kWh in Jakarta and Kuala Lumpur. VNN

091105-An apartment block billed as Shanghai's "best location" with a record price tag has failed to sell a single unit a week after hitting the market. At an average cost of 100,000 yuan (US$13,500) per square meter, the Tomson Riviera 74 ¬apartment complex, developed by Hong Kong-listed Tomson Group, is the metropolis' most expensive high rise, the China Daily said. "We are confident about the project thanks to its imcomparable location." Shanghai may be cooling af¬ter the nation's biggest city, home to an increasing number of foreign residents, saw prices fall 1.2 per cent in September. A recent report by real estate agency Colliers International said buyers were taking a wait¬ and-see attitude after luxury property prices in the city fell 4.5 per cent. The downturn comes after the government introduced various measures to cool overheating in several sectors of the economy, aiming in particular at the prop¬erty market, which in some cities especially Shanghai, had attracted speculative funds. The measures, which vary from city to city, include a capi¬tal gains tax depending on the length of a buyer's holding pe¬riod, the banning of pre-comple¬tion sales and a tightening of land¬ use rights. - AFP/VNS

151105-Accor SA,will open 13 premium Sofitel hotels in China by the end of 2007, the French hotel group said last week, more than doubling the brand's presence in the country. Accor will launch 5 Sofitel hotels in China in both 2006 and 2007, on top of 3 slated to open their doors this year, the company said in a statement. By the end of 2007, Accor will have 22 Sofitel properties in the world's most populous country, where the travel bug has hit a population whose wealth is increasing. Europe's top hotel operator, which has brands ranging from Novotel to Motel 6, is also build¬ing up its lower tier Ibis brand in China. It wants to operate 50 Ibis ho¬tels in China, up from 1 now, making it one of the first global hoteliers to tap the country's lower-end mass-travel market. The country's growing wealth is attracting global chains, including Shangri-La and Marriott Interna¬tional Inc, which are racing to expand ahead of the 2008 Beijing Olympic Games and the 2010 World Expo in Shanghai. SGT

221105-The average asking price for a home rose to 197,855 pounds from 196,348 last month, pushing the annual rate of increase in house prices to 4% from 1.5% according to property website RightMove survey of nearly 132,000 properties advertised on its website. VNN

121215-British house prices are set to continue ris¬ing in 2006 but gains will be small as buyers struggle to afford new homes after the property market boom of recent years. The Nationwide Build¬ing Society said house prices would at worst stag¬nate and at best rise by 3 per cent over the course of next year, following gains of 2.4 per cent this year so far and 12.7 per cent in 2004. “With rapid price in¬creases over the last nine years it will take some time for affordability to recover, " she said. A year ago, some econo¬mists were saying the UK could be headed for a sharp correction in house prices after an extended period of double-digit inflation and as the Bank of England hiked interest rates five times be¬tween August 2003 and No¬vember 2004. But the market seems to have achieved a soft land¬ing and BoE policymakers are counting on a gentle re¬covery to boost consumer spending which has slowed sharply over the last year. VNN

020106-The national median existing home price in November was USD$215,000 – up 13.2% from a year ago. VNN

060106-Hong Kong office space is Asia ¬Pacific's most expensive, followed by Tokyo and Seoul, a survey released yesterday said. DTZ, a London listed international real estate ad¬visory and consultancy firm, made the findings in its an¬nual global office occu¬pancy costs survey of 117 business districts around the world. The rankings focus on cost per workstation, which DTZ said better reflects the cost of accommodation. "Hong Kong emerged as the most expensive loca¬tion in Asia Pacific with oc¬cupancy costs escalating 61 per cent, the highest per¬centage increase over the past decade and back to the level in 1995, to US$15,000 per workstation per an¬num," DTZ said. The willingness to pay for better-quality offices by multinational companies demonstrated their optimis-tic outlook for the greater China economy, it said. Behind Hong Kong, Tokyo's Central 5 wards-and Seoul ranked as second and third-most expensive office locations, at $11,$70 and $9,870 per workstation per year, it said. Singapore was 12th, up from 17th, with office occu¬pancy costs rising 20 per cent to $4,770 per worksta¬tion, the survey found. It said the higher costs coin¬cide with a continued strengthening of the city¬state's position as a regional business hub. AFP/VNN

100106-Average price of a British home was a seasonally adjusted 171,632 pounds in December….In US Greg McBride, senior financial analyst at Banrate.com said, “2006 is going to be a wake up year for many homeowners in USA. Consumers have been using their house as an ATM. That is going to diminish considerably over the next several years as the housing market slows.” VNN

190106-A report by the Bank for International Settlements – BIS – said household mortgage debt has increased significantly over the last 20 years especially in major industrialised countries, accord¬ing to the report. Data in the report indicated a doubling or trebling of mortgage debt per head between 1994 and 2004 alone, Australia, Britain, Luxembourg, the Netherlands, Spain and the United States. The report underlined gaps in knowledge about the behaviour of housing markets, highlighting the possibility that the credit boom is artificially fuelling a spi¬ral of higher property prices in the short term and ever more lending. Economists have voiced fears about property markets overheat¬ing and the swelling of a house price bubble. AFP-VNN

250106-Beijing's fixed asset investment reached about US$34.9 billion in 2005 with investment in the real estate market still comprising more than half of that. The city's investment in the real estate market accounted for 53.9% of the total fixed asset investment with a growth rate of 3.5%, dropping by 19% compared with the previous year. During f 2001-05 period Beijing registered a fixed¬ asset investment totaling $134.6 billion,, doubling that of the 1996-2000 period. VNN

220206-The value of Singapore’s REITs has grown from zero to S$15bn USD$9.2bn over the past 4 years, making it the largest market in the Asia Pacific region after Japan and Australia. VIR

150306-British property services firm Countrywide plc reported property prices on homes exchanged during the first 2 months of 2006 rose 5.1% while commission rates averaged 1.7% per transaction against 1.6% last year. Countrywide, which is one of the main shareholders of Rightmove, said the flotation of Britain’s biggest property website last week appeared successful as it had already realized a profit of 16.5 million Pounds from initial public offering. VNN

270306-Average home prices in Shanghai dipped about 15% last year, as the government took steps to cool the market after a couple of heady years of 30%-40% rises. A 2 bedroom apartment in central Shaghai, the most expensive city in mainland China. costs about $250.000, roughly a quarter of the average price of a Manhattan apartment. The booming casino city of Macau and Hong Kong, which is flourishing as a financial services hub for China, have also come under spotlight. Private investors and the government have pledged $24 billion worth of investment in Macau for the next decade. Shares in the likes of Shanghai Forte Land Co Ltd and Guangzhou R&F Properties Co Ltd have jumped 42% and 36% respec¬tively so far this year, while Hopson Develop¬ment Holdings Ltd has soared more than 70%. Merrill Lynch analyst Clifford Lam says the stocks are still good value because of their high returns on equity and strong growth prospects. Companies such as Guangzhou R&F and Hopson are "volume players" that can make decent profits even if property prices do not rise much he said. VIR

240406-The amount of unsold real estate in China rose 23.8 per cent in the first quarter of 2006 as investment and prices in the boom¬ing sector continued to climb, state press said yes¬terday. The area of unsold prop¬erty developments reached 123 million square meters (1.32 billion square feet) in the quarter, up 23.8 per cent from the same period in 2005, Xinhua news agency reported, citing the National Bureau of Statistics. From January to March this year, property develop¬ers invested 279.3 billion yuan / US$34.8 billion in construction projects, up 20 per cent, it said. The China Economic Observer, also citing official statistics, last month re¬ported that at the end of Oc¬tober last year, China had 112 million square meters of unsold real estate, 26 per cent of the market. The international alarm rate is 10 per cent, it added. China's real estate mar¬ket was witnessing the "odd" phenomenon of rising prices at the same time that unsold property was grow¬ing, Xinhua said. "In some cities where prices are rising, you cannot say that the reason is be¬cause of supply and demand," Xinhua quoted Yi Xianrong, a real estate ana¬lyst with the China Academy of Social Sciences, as saying. "Presently in the domes¬tic real estate market, devel¬opers have the conditions to be able to push prices up, they have a monopolistic way to set prices," he said referring to the tight relationship between govern¬ment and developers. In Beijing, housing prices rose 19.2 per cent in 2005 but the area of unsold living space rose 31.6 per cent to 13.7 million square meters, according to the Xinhua report. "Statistics show that as the amount of unsold hous¬ing has grown, so has the number of people who can't buy homes, "Xinhua said. At least 70 per cent of Chinese in the prosperous eastern coastal regions were unable to buy homes, based on average annual incomes of 15,000 to 17,000 yuan / $1,870-$2,120 and average housing prices of 4,000 yuan / $499 per square meter. Meanwhile there were 1.03 billion square meters of real estate under construc¬tion in China during the first quarter, up 23.3 per cent over the previous year, the report said. About 52.8 million square meters of real estate construction was completed during the period, up 53.3 per cent, it added. AFP / VNN

060506-Halifax said the average price of a Brit¬ish home at a seasonally ad¬justed 178,992 pounds in April. John Butler, UK econo¬mist at HSBC noted that the 4.5% increase in house prices over the past 3 months on the Halifax mea¬sure translates to an annualised rate of 18%. "At face value that is not stability, that is the type of pace associated with a boom," said Butler, although he noted that other measures of house prices such as build¬ing society the Nationwide did not imply the same kind of strength. Howard Archer, econo¬mist at consultancy Global Insight, shared Butler's concerns, calling the 2% jump in prices in April "a real shock that will heighten con¬cern that prices are gaining excessive upward momentum. VNN

030706-Croatian real estate booms as EU membership looms : With European Union membership looming, Croatia's real estate mar¬ket is booming as Europeans seek an affordable place in the sun and locals seek a fast profit. But with property prices touch¬ing 10,000 euros (US$12,800) per square metre in parts of Dubrovnik, the Adriatic city that is top desti¬nation for property-buying for¬eigners, the country's authorities are facing calls to curb the inva¬sion and ensure locals are not priced out of the market. "If you want to buy any prop¬erty in the Dubrovnik city area, be prepared to pay at least 300,000 euros / USD$384k," is one of the first things Slavica Gavranic tells her clients. That will fetch you an average¬sized flat, possibly inside Dubrovnik's medieval walls, where the price of a square metre ranges from 4,000 to 10,000 eu¬ros / USD$5,125-12,800. Outside the old walls, it varies from 2,500 to 5,000 euros / USD$3,200-6,400. Gavranic runs Dubrovnik Sun, one of several booming estate agencies. "Our clients are mostly English, Irish and Dutch," she said. "We have a lot of foreigners who are making inquiries about what they can buy, saying they can spend up to 200,000 euros / USD$256k. Our. answer is simple - there's virtu¬ally nothing you can buy for that money in the wider Dubrovnik area." At present, citizens from most EU states can freely buy property in Croatia but face a complex bu¬reaucratic procedure which can take two years or more. Croatia has also only recently started to tackle its muddled property rights. In the past decade fewer than 4,000 foreigners have legally bought a house in Croatia, but many have found ways around the law, often by registering token firms in Croatia. Some observers estimate their numbers are actu¬ally 10 times higher. Reuters-VNN

140706-Condominiums located along Bangkok’s skytrain and subway are selling like hot-cakes. Young Thais were searching out lower-middle priced properties with a 30-50sqm unfurnished condo selling at an average of USD$26k-52,250. They’re selling very fast. Probably 40% are sold within the first month of the launch of a new project, and they are usually sold out within a few months. It’s estimated that the prices of city .condos had risen by about 25% since 2003, but the plentiful supply now meant prices were likely to remain steady for the next few years. It may not go up that much in the future but it won’t go down. Office workers who earn about USD$787 a month are the main target. Given rising interest rates and declining consumer purchasing power, we expect a negative growth of 2% of property sales this yea from 67,800 units sold in 2005. VNN

190706-Rightmove said asking prices rose 10.6% yoy – to 217,580 Pounds / USD$400,500. VNN

300706-The City could face a financial meltdown if the debt bubble bursts. The Bank of England has issued a stark warning about the potential damage that a credit crunch and a collapse in asset prices could cause to the economy and financial system. It said that a sudden jump in borrowing rates – potentially caused by a further surge in the oil prices – could cause a 2% fall in economic output and wipe out banks annual profits. In a worse case scenario, a sharp fall in credit conditions worldwide would have devastating consequences for Britain. It could cause a 1.5% contraction of the economy, a 25% fall in house prices and a 35% drop in commercial property prices over 3 years. The Bank also said that the risks of a serious financial problem in the City have risen in the past 6 months and investors would be wrong to assume that, after the market turbulence of past months, the worst was over. Another fear is the chance of a global avian flu pandemic of a human form of avian flu. Weekly Telegraph

300706-People have been capitalising on high UK house prices and cheap travel. Official estimates of the value of property abroad owned by Britons have doubled in 4 years to 23 billion Sterling. But that total is 2 years out of date and subsequent pointers are anecdotal. BUPA International, the market leader for individual expat insurance, has achieved an increase of almost a third in numbers insured in 3 years. It currently has 319,000 members in 190 countries, compared to 247,000 in 2003. “According to the Office of National Statistics, around 200,000 Britons leave every year to live abroad.” Weekly Telegraph

140806-Land prices in Japan rose for the first time in 14 years in 2005, a sign of an end to persistent declines in asset prices that have dragged down the economy since the burst of the "bubble economy" in the early 1990s, a government survey showed. Reflecting a healthy economic recovery, nationwide land prices on 1st January 2006, were up an average 0.9% from a year earlier, the National Tax Agency said. In the previous year, prices had fallen 3.4%. In the capital's fashionable Ginza shopping district a square meter of land is worth 18.7 million yen ($163,000) last year, up from 15 million yen in 2004. It is in its second-longest growth cycle of the postwar era, outlasting the 51-month bubble boom from December 1986 to February 1991, although the pace of growth is slower. The economy is also emerging from more than seven years of deflation, with consumer prices rising steadily. Against such background, the Bank of Japan ended an era of zero rates and raised its key overnight call rate to 0.25% on July. VIR

060906-Buy-to-let property has delivered the strongest returns of all asset classes since the turn of the century, rising by 157% followed by gold. Investors who bought a buy-to-let property with a deposit of 25,000 pounds 6 years ago could expect to see a 39,309 profit today, based on the average rise in property prices, according to specialist buy-to-let bro¬ker Landlord Mortgages. In contrast, the UK stock market has given a return of just 2% with the same investment in the FTSE 100 giving a profit of just 415 pounds. Gold increased 90%. Property let on modern leases returned 8.1% in 2005, down from 9.9% in 2004, under-per¬forming commercial prop¬erty which returned 19.1% and equities, which earned investors 22%. Indeed, it only nar¬rowly outperformed a 7.4% return on govern¬ment bonds. Reuters - VNN

241106-A Korean newspaper survey last month showed that apartment prices in Seoul and adjacent areas have climbed 55% on average since early 2003. “Housing prices have gone crazy” it said. The newspaper said a typical 102sqm middle class apartment in fashionable southern Seoul cost USD$800,500, up from USD$736,350 in October. VNN

231206-USA spending on new home building plunged 18.7%, the biggest quarterly drop since a 21.7% fall in the first quarter of 1991. VNN

281206-US house prices rose at the slowest pace since February 1997 in October. The median sale price dropped to USD$221,000 in October – a decline of 3.5% from a year ago – the biggest decline on record. Meanwhile the inventory of unsold houses reached the second highest level ever recorded. At the current rate, it would take 7.4 months to sell the currently available homes. VNN

090107-Thailand will limit foreign investors to holding no more than 50% of the shares or the voting rights in companies that deal with areas considered important to national security or that have an impact on natural resources or Thai culture under legal changes approved yesterday. Foreign companies have used Thai nationals as proxies as an unofficial basis for overseas investment in companies controlled by foreigners for the last 30 years. Analysts fear the revised law could force foreign companies to sell off huge amounts of stock to Thai investors who might not be able to absorb a large number of shares over a short period. SGT

150107-Standard and Poor’s estimate that people in Britain owend an average 144% of their net annual earnings in respect of housing debt in 2005; 131% in Ireland; 110% in Spain; and 62% in France. In France the prices of homes which were not newly built rose 7.1% in 2006; 10.4% in 2005; and 15.4% in 2004. Precepta institute estimate a 25% drop in prices by 2010. In Spain prices have increased by 114% in 20 years before inflation. The OECD said that prices were at “unsustainable levels.” VNN

220107-A first-time buyer in Australia was paying a median price of USD$296,760 for their home in the December quarter, according to informa¬tion obtained from loans fi¬nanced by the Common¬wealth Bank. VNN

220107-In Malaysia’s KL high ceilings, city and tower views, marble floors, jacuzzis are de rigueur for luxury flats in the area, and new developments are selling from around 700 ringgit / $200 per square foot ie $2,152/sqm. In neighbouring Singapore, by comparison, the price of luxury apart-ments rose by a third last year, pushing the cost of top new developments to more than USD$1,950 per square foot ie $20,982/sqm. Bandar Raya's glass and steel Troika apartments start from 1,000 ringgit per square foot / $285.90 ie $3,076/sqm with units between 1 million ringgit to more than 3 million ringgit / $285,957 - $857,871 - well over the 200,000 to 300,000 - $57,195 - $85,793 ringgit that buys a new three-bedroom flat in a middle-income suburb. "We're seeing in Troika that more than 50% of our buyers arc non-Ma¬laysians," said Cavalicro, adding they included buyers from Hong Kong, Britain, Switzerland, and the US. VNN

270107-Sales of pre¬viously owned US homes slipped 0.8 per cent in December and took their biggest tumble in 17 years for all of 2006. Sales for 2006 were down 8.4 per cent, the biggest annual drop since 14.8 per cent in 1989 when the housing sector was under pres¬sure from a crisis in the nation's savings and loan industry and be¬fore the 1990-91 recession. The median price of homes sold in December was up to $222,000 from $217,000 in November. Another gauge of strain in housing came in a report showing a 42 per cent leap in the number of homes taken back by lenders last year as more people became unable to pay the mortgage. RealtyTrac Inc said more than 1.2 million foreclosures filings were made - about one for every 92 households. VNN

300107-Property consultant Hometrack said house prices rose 6% this month from a year earlier, the fastest annual rate of growth since July 2003. However, gains were concentrated in London and almost 75% of the country showed no rise in house prices at all. “Average prices remained unchanged across 72% of the country in January.” VNN

160207-RICS noted less interest from home buyers. New buyer enquiries in England and Wales fell for the first time in nearly 2 years and the sales to stock ratio, considered by some to be a more reliable indicator of housing market demand, rose from 46.2 in January, the highest since June 2004, when the housing market boom was at its peak. VNN

Craving for life of leisure brings buy-to-let boom – March 2007: The buy-to-let mar¬ket will grow by 40% within the next decade, as more Britons crave "flexible living," a study shows. An increase in positive atti¬tudes towards renting and a de¬sire to be un attached will lead to a 41% increase in the rental market by 2016, accord¬ing to Alliance & Leicester (A&L). Its "Changing UK Household Market" report, carried out with the Centre of Future Studies think-tank, predicted there would be three key drivers for buy-to-let growth:
- A rise in the traditional rental market, especially among students and single people.
- Younger generations pre¬ferring to rent as it becomes more socially acceptable not to own a home.
- Increased use of' rented property by people seeking flex¬ibility and mobility.
Higher demand would lead to a boom in the number of" 'profes¬sional" landlords- those making their living out of the buy-to-let market - the report said. Professional landlords currently account for a fifth of buy¬ to let investors. They are de¬fined as having a portfolio worth at least 1 million pounds, six to 20 properties to their name or having been landlords for at least two years. They tend to be younger than non-professional landlords and secure. annual rental income at least equivalent to the national average wage. Stephen Leonard, director of mortgages at A&L, said: "De¬mand for rented property has been growing steadily in recent years and returns on buy-to-let have increased. "This growth is expected to continue as the number of rent¬ers rises further and buy-to-let becomes even more attractive to both existing and potential land¬lords."- REUTERS/VNN

050307-Direct investment into the REIT market has increased through 2006, especially in Europe, up 39% to about USD$403.4 billion according to JLL. VIR

150307-USA housing market: Losses as the pro¬portion of mortgages in the initial stages of foreclosure rose to the highest rate on record and the chief execu¬tive of a large US home lender said the sub prime in¬dustry- which caters to bor¬rowers with weak credit - was in a "liquidity crisis." VNN

290307-Sales of new homes fell sharply for a 2nd consecutive month in February and sales of new single family homes fell 3.9% to their slowest pace in nearly 7 years. VNN

050407-The cost of an average home in UK stood at 194,362 in March according to HBOS-Halifax house price survey. VNN

270607-British house prices rose 1.1% in June lifting the annual rate to 11.1% - the highest in 2 years according to the Nationwide. A typical house now costs 184,070 Pounds – more than 18,000 more than a year ago or 50 Pounds a day. SGT

170707-Since 1997 average house prices have increased by 155% to UKSterling 200,000 whilst average wages have increased just 18% of 25,000. Woolwich says many new borrowers have suffered a 66% increase in monthly mortgage payments over the past 5 years as house prices and bank rates have soared. Telegraph.

180707-The gap between rich and poor in Britain is the widest for 40 years, with a grow¬ing number of people living below the poverty line, a report by the Joseph Rowntree Foundation said. The report noted a reduction in the number of people living in extreme poverty, but the overall numbers living below the poverty line has increased with over 1 in 4 households classed as being "breadline poor" in 2001. In some cities over half of all families arc below the poverty line. The richest people are increasingly clus¬tered on the outskirts and suburbs of major towns and cities, the report said. Rich people own an increasing share of wealth, it noted: in 1991 the wealthiest 1% of the population owned 17% of the nation's wealth, rising to 24% in 2002. VNN

210707-China’s real estate investment soared 28.5^ to USD$130.6 billion in the first half of 2007.The growth was up 1.6% on the first Quarter and 4.3% on last year. The total area of “developed” land in China rose 7.6% to 118 million sqm in the first half. VNN

030807-Average house price in UK is 189,915 Pounds / USD$404k according to Halifax. VNN

210807-Average asking price for houses at 241,474 pounds – Rightmove. VNN

291207-The average house price is down to 182,080 Pounds / USD$361,500 according to Nationwide. “The housing market has weakened significantly in the closing months of 2007 after holding up more strongly than expected in the earlier part of the year.” VNN

020108-Spain’s average rise in house prices for the period 1996-2006 was well over 150%. VNN

140408-The IMF said that British house prices are nearly 30% overvalued after years of double digit growth and many analysts are now predicting sharp price falls this year. House prices have gone up 170% in the last 10 years. VNN

240408-The median price of homes sold in US last month was USD$200,700 – down 7.7% in 12 months. Home prices have already fallen about 15% from their peak in 2006 and may fall further than the 30% drop experienced during the Great Depression of the 1930’s. VNN

030508-British house prices suffered their big¬gest annual fall in 15 years in April according to HBOS. House prices fell 1.3% 189,027 Pounds / USD$375,700 in April, the third monthly decline in a row, leaving prices 3.7% lower than April 2007. That was the biggest an¬nual fall since June 1993, analysts said. HBOS said prices in the 3 months to April were 0.9% lower than a year ago - the weakest reading since 1996. VNN

250508-USA : The median sales price of existing homes plunged 8% from a year ago to USD$202,300. Sales of single family homes, which are less volatile than condos and considered a better market by economists, slipped 16.1% while the median price fell to USD$200,700. Sales of condos fell 27.9% to a median price of USD$214,900. VNN

280608-The NAR said the national median existing home price was USD$208,600 in May down 6.3% from a year ago when it was USD$222,700. The Standard & Poor’s / Case Shiller Home Price Indices reported a record decline of 16.3% in home prices in April from a year ago. VNN

071008-There are about 10,000 buildings with more than 10 floors in Shanghai, of which 80% have been built in the past 10 years, accord¬ing to Emporis, one of the world's leading providers of building information. Shanghai drilled its first deep well on the Bund in 1860 and as industrial de-velopment and ground wa¬ter use accelerated, the city sank 1.76m between 1921 and 1965, or an average of about 4cm a year. VNN

050309-The Government has ap¬proved a US$50 billion plan to develop an economic belt along the country's northern coast until 2020 to spur growth in the northern region and strengthen economic cooperation with China and Southeast Asian countries. T

Date : Sunday, 04 October 2009
Category : General Economy


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290110-Formally, a majority of banks of¬fer a deposit rate of 10.49% but after all their promotions are priced in, the actual rate will rise to as much as 12% or 13%. It is pretty clear that if banks lend at 12% as required, they will certainly incur great losses. To warrant prof¬itability, banks have no choice but to resort to all sorts of fees which were once banned, such as those for service consulting, evaluation, asset assurance and management. Certain firms have been forced to borrow at 3% per month, or 36% per year, as borrowing costs trebled from last year. But this is not factored into interest rates which banks try to keep at artificially low levels to dodge the rate rule, thus giving fertile ground for informal, if not illegal, credit activity. Deputy chairman of the National Assembly Economic Committee throws his support behind the abolition of the base rate because as long as it is in place, banks will be compelled to violate law. With such exorbitant real inter¬est rates in place, companies must manage to warrant a minimum rate of return of 20% per year so as to cover borrowing costs, payrolls, and depreciation and amortization. However, under the current cir-cumstance, it is clearly impossible to earn such a profit and ultimately investment will be crowded out, thus erasing some of the gains made through the stimulus and posing downside risk to the nation's higher growth target. SGT

050110-GDP growth in 2009 : -
Industry & Construction – 5.52%
Agriculture, forestry & fisheries - 1.83%
Services - 6.63

250110-Domestic private enterprises have failed to step up to the plate in the decade since the Enterprise Law came into force. Domestic pri¬vate enterprises have devel¬oped in terms of quantity, but not quality, by from 31,767 in 2000 to 178,852 in 2008, accounting for nearly 50% of registered enterprises nationwide. But the return on assets ratio at domestic private enterpris¬es increased from 1.63% in 2000 to 1.76% in 2008. Meanwhile, the fig¬ures at state-owned and for¬eign invested enterprises were 3.38% & 9.55% respectively. In the list of the 500 largest enterprises in 2009, private enterprises accounted for only 29% however most of them are equitised state owned enterprises. About 60.3% of domestic private enterprises are formed by tiny-scaled household businesses that reflect nepotism manage¬ment. VIR

250110-According to a Ministry of Labour, Invalids and Social Affairs' report, in 2009 there were 216 strikes in Vietnam, equal to only 30% of 2008's total strikes. However, 157 of the 216 strikes were at foreign-invested enterprises, with 114 strikes staged at garment and textile enterprises and 155 strikes at the country's SKER. VIR

160110-Exports Imports
2008 62.69 80.74
2009 56.73 68.71
MoIT

160110-Industrial Production 2009
Total Value VND696.6tr / $37.6bn – up 7.6% yoy
Private Sector – 9.9%; Foreign Investment Sector – 8.1%; State Sector – 3.7%. MPI

160110-Vietnam’s Economy 2009
GDP Growth – 5.32%
Inflation – 6.88%
Industrial Growth – 7.6%
Total Investment – VND704.2tr / $38bn - up 15.3%
Investment against GDP – 42.8%
Retail Trade – 18.6%
Exports – Down 9.7%
Poverty Rate – 12.3%
GSO

140310-As many as 708 of 1,254 FDI en¬terprises that made tax declarations in 2008 reported losses. Most of them specialised in manufacturing, garments, footwear, and communications, and were from Asian coun¬tries and territories. South Korea ranked the highest in enterprises reporting business losses, making up 30% of the total loss-reporting companies; followed by Singapore (12.57 per cent), Japan (9.04%) and Taiwan (7.49%). Since 1998 over 50% of FDI enterprises making tax dec¬larations at HCM City Taxation Bureau have reported losses. The "false losses, real profits" situ-ation was created by using "price transfer" strategy, which means the FDI enterprise raised the prices of materials bought from its parent company abroad. This activity fetched real profits to the parent company abroad while causing false losses to the FDl enterprise in Viet Nam. This strategy is made possible as these FDl enterprises' customers and suppliers are also their parent companies and thus able to trans¬fer profits abroad where corporate income tax is exempted or lower than that in Viet Nam. The profit transferring mode also helps FDI enterprises dodge corporate income tax and profit trans¬ferring fees. Taxmen said while over 50% of foreign-invested garment companies declared losses, most Vietnamese-invested garment enterprises earned profits in the same period. The taxation agencies remained powerless in these "price transfering" situation as there was no mechanism for pricing ma¬terials imported from FDI enter¬prises' parent companies. VNN

060410-Frederick Nixson, a profes¬sor from United Kingdom's University of Manchester said: "The FDI that has taken place is concentrated heavily in low technology sectors. The size of foreign invested enter¬prises - both in terms of employment and fixed capital per employee, is low." He said FDI sources were predominantly other regional competitors, only a little fur¬ther up the developmental lad¬der. There was a little inward investment by technological leaders in high technology products in Vietnam. "When coming to Viet¬nam, most foreign investors said they would bring modern technology into the country and transfer them to local part¬ners and workers. However, over the past decades, how many of Vietnam's total nearly 11,000 attracted FDI projects have really invested in high technologies? The number of such projects is not much, I think." VIR

100510-Informal sector represents 20% of GDP The informal sector absorbs 11 million of 46 million jobs in Vietnam and contributes around 20°% of gross domestic product (GDP). The sector, however, re¬mains unfamiliar although the nation has launched more surveys and polices. SGT

100610-Public Debt as % of GDP : -
2007 33.8%
2008 36.2%
2009 41.9%
2010 44.6% - est
SGTW

010710-More foreign-invested enterprises (FIE) in HCMC have reported losses in recent years and transfer pricing is claimed to be one of the reasons behind this fact. Loss-making FIEs have increased steadily, according to the deputy director of the HCMC Tax Depart¬ment. "Our statistics showed over 60°% of the FIEs in the city posted losses in 2009." SGT

220710-According to HCMC Taxation Department, 60% of the 3,500 foreign-invested enterpris¬es (FIEs) operating in the city reported losses in 2009 and 50% in 2008. Meanwhile, Lam Dong statistics showed that there were up to 104 out of the total of 111 FIEs operat¬ing in the province having reported losses. VIR

260710-HSBC Small Business Confidence Monitor said Viet Nam remains at the top of the 21 markets surveyed with an index of 164, followed by Tur¬key (138), Singapore (136), the Middle East (132), mainland China (123) and India (121). About 70% of Vietnam¬ese SMEs say they will increase their capital expenditure in the year's 2nd Half, while the glo¬bal rate is 41%. VNN

260710-Vietam has climbed 9 spots to tie with Indonesia as the 2nd most confident country in the world according to Neilsen’s Global Consumer Confidence Survey. VNN

270710-Vietnams foreign debt stood at 39% of GDP by the end of 2009. The country's total foreign debt was around US$23.9bn between 2005 and 2009. SGT

280710-Japan held nearly 42% of Viet Nam's total foreign debt at the end of 2009, followed by Singapore at 27%. Al¬though the US dollar is the key trading currency, it accounts for only 16.6% of Viet Nam's debt currency structure. Foreign debt was equal to 39% of the nation's gross do¬mestic product (GDP) at the end of 2009, and a new Ministry of Finance report has estimated that this would reach 44.6% this year - very close to its set maxi¬mum threshold of 50%. VNN

280710-During the 2004-2008 period, the elasticity coefficient of job creation relative to gross do-mestic product (GDP) growth were 0.28%. That means for every 1% in GDP growth, only 0.28% more jobs was created. At the same time, the figure for Brunei is 1.27%; Singapore and other Southeast Asian countries 0.58%. Although the working population of Vietnam is relatively abundant and young, 9.9 million people between the age of 14 and 15 in 2007, most of them are unskilled. 65.3% of the labor never undertakes any training courses. In Vietnam, the majority of work¬ers are still willing to accept low ¬income jobs but not unemployment as the social security system is not developed. Thus, unemployment is not high, around 2% annually (from 2000 till now). Nonetheless, the lack of jobs is an undeniable reality. According to an analysis of the In¬ternational Labor Organization (ILO) in 2008, labor productivity in Viet¬nam from 2000 to 2007 increased considerably from VND7.1m to VND10.1m (base price in 1994), yet not even half as much the figures for China. If calculated in U.S. dollar, the absolute increase rate of labor productivity seemed to be drastically lower. The average output per labor of Vietnam was US$5.702 (2008), equivalent to 61.4%.of4he average of ASEAN, 22% of Malaysia and 12.4% of Singapore. Such low labor productivity partly explains why production costs, com¬modity prices and competitiveness of Vietnamese products still trail far behind China. The rate of labor increase from now till 2015 is forecast to be 738,000 people per year, which is among the top in the region and is exerting pressure on the economy and society. The target is set to raise labor productiv¬ity in 2015 by 1.5 times compared to 2010, according to the Labor and So¬cial Science Institute. The feasibility of this target is in doubt, as the trend of labor move¬ment from rural to urban areas, from agriculture to industry is getting more popular. SGTW

Average Monthly Pay
1998 2002 2004 2006 Av Change / year
Domestic Enterprises
- Household Businesses 552 606 649 664 2.3%
- Private Businesses 554 771 852 936 6.8%
- State Run Businesses 572 1,002 1,077 1,103 8.6%
Foreign Invested Enterprises 680 1,037 1,044 1,316 8.6%
GSO-SGTW

070810-As of the end of last month, 23 commercial banks had submitted their plans to the State Bank of Viet Nam (SBV) for increas¬ing their charter capital to VND3 tril¬lion (US$156.25 million) this year in accordance with new regulations. None of the plans called for a bank closure or merger with another in¬stitution, the SBV said this week. However, the plans would require the banks to attract VND30 trillion ($1.56 billion) in new investment over the next 4 months, which seems no easy task for unlisted banks at a time of fairly restrictive monetary policy. The higher charter capi¬tal regulations was issued four years ago, but May this year, 23 out of 4 credit insti¬tutions still had charter capi¬tal below VND3 trillion ($156.25 million). The central bank has vowed to close these banks down or force them into merg¬ers with larger institutions if they fail to meet the capital requirements by year's end. "The stock market is gloomy. That's their chal¬lenge." The SBV has previously extended the deadline for commercial banks to meet the higher capital requirements. Commercial banks were required by law to reg¬ister capital of at least VND 1 trillion ($52 million) by the end of 2008, but only 28 banks met the requirement by the deadline. Another 10 banks only managed to meet it by the end of 2009, with the central bank granting permission for the delayed compliance. This time, however, the, SBV is saying the deadline is hard-and-fast. Complicating the pic¬ture is the expected intro¬duction of even stricter re¬quirements, under which commercial banks would have to register capital of VND5 trillion ($260.42 mil¬lion) by December 31, 2012, and VND10 trillion ($520.83 million) by De¬cember 31, 2015. The policy aim is to eliminate weaker banks in order to strengthen the over¬all quality and security of the financial system. VNN

060910-Vietnam is in danger of falling into the middle income trap within a decade, which will result in diminished growth unless long term solution were implemented, according to the Brookings Institute. Growth was heavily dependent on credit and the presence of large economic groups which work to hinder future growth. According to the World Bank the GNI per capita in 2008 was USD$890 making it a low income country. VNN

070910-The Mekong Delta includes 13 cities and provinces with a population of 18m has a coastline of 700km, and contributes 20% of the country's GDP. Its annual growth rate averages 10-12% during 2006-10. The Delta was also Viet Nam's leading agricultural and seafood¬ producing region, accounting for 90% of total rice exports and 60% of seafood exports. The region’s annual economic growth reached from 10-12% in the 2006-10 period. VNN

100910-Tay Ninh has increased average GDP to 14% annually, income per capita to nearly USD$1,400 per year and a poverty rate of less than 3?%. VNN

210910-In-a new glo¬bal survey of 523 companies representing all major in¬dustries, Viet Nam has emerged for the 3rd con¬secutive year as the top in¬vestment target outside of the so-called BRIC coun¬tries of Brazil, Russia, India and China. Viet Nam has continued to benefit as companies have sought new sources of growth beyond BRIC, ac¬cording to a report entitled "Great Expectations: Doing Business in Emerging Mar¬kets". "Viet Nam has been on the radar of manufacturers looking to move beyond China for some time. With its large, well-educated workforce, the country has good pros¬pects for moving up the value chain." The survey was conducted by UK Trade & Investment in cooperation with the Economist Intelligence Unit. About 71% of respondents agreed that emerging markets beyond BRIC collectively offered an opportunity too great to ignore, with 19% choosing Viet Nam as an investment destination. The Economist Intelli¬gence Unit said Viet Nam headed a 2nd Tier of tar¬get countries it called the CIVETS, encompassing Co¬lombia, Indonesia, Viet Nam, Egypt, Turkey and South Africa. Like BRIC, this group was geographically dispersed and contained obvi¬ous variations - but there were also important similari¬ties. All had sizeable and young populations, diversi¬fied economies not excessively reliant on commodi¬ties, and reasonably sophisticated financial systems. Collectively, CIVETS were forecast to account for up to 20% of the G7’s total GDP, making them a significant global market in their own right, the report said. VNN

CIVETS: A promising outlook
Pop GDP/head CPI Public debt Av annual real %
(million) (US$ PPP) (% av) (% GDP) GDP growth 2010-20
Columbia 46.9 8,920 2.6 47.3 3.6
Indonesia 243 4,230 5.1 27 5.6
Viet Nam 87.8 3,150 9.3 52 5.9
Egypt 84.7 5,910 11.8 80.3 5.6
Turkey 73.3 12,740 8.7 48.7 3.9
South Africa 49.1 10,730 5.8 33.3 3.3
Forecasts for 2010 unless otherwise Indicated. Source: Economist Intelligence Unit, Country Data.

121010-Increasing public debt may upset Vietnam's financial security as it is reported to have broken the sensible limit of 50% of GDP. The public debt rate would reach 52.6% of GDP by late this year and is expected to increase to 57% next year. Vietnam's public debt rate has increased from 33.8% of GDP in 2008 to 41.9% in 2009 and is expected to be 44.6% at the end of 2010. Howev¬er, the World Bank in June, 2010 forecasted that Vietnam's public debt would be 47.5% of GDP for 2010. Over the past years, the govern¬ment's overspending has mounted. For example, the budget deficit was 5.64% of GDP in 2007, 4.8% in 2008, 6.9% in 2009 and expected to be 5.95% in 2010 and 5.5% in 2011. Minister of Finance said the government had to accept overspending and increased debt to augment investment in the country's socio-economic infra¬structure network and economic growth. He said fast-industrialising Viet¬nam's total incomes could basically meet the country's demand for expenditures in social welfare, salaries and payment of debts. Only a small part of the revenues was ear¬marked for development invest¬ment. The NA Financial and Bud¬get Committee suggested the government control the public debt at a maximum rate of less than 60% of GDP. VIR

141010-In the last 2 years, despite the economic crisis, port and logistics operations in the country were encouraging due to the Government's effective economic management and the efforts of the maritime sector. From handling 197m tonnes of freight in 2008, the sector's output increased to 251 million tonnes in 2009. From 1,199 vessels weigh¬ing 4.38m DWT in 2007, the county's fleet increased to 1,598 ships and 6.3m DWT last year. The target for the maritime industry by 2020 is to be the largest component of Viet Nam's sea-based economy which is expected to contribute 53-55% of GDP. SGT

181010-An online survey conducted by the UN Development Programme (UNDP) and online newspaper VietNamNet showed that a large number of people still believed adminis¬trative procedures required too much paperwork (67%) and that personal connections played a large part in completing proce-dures (73%). Nearly half of respondents said they found land-use rights re¬lated procedures the most an¬noying. VNN

221010-The state corporate sector's ICOR (Incremental Capital Output Ratio) - the extra capital needed to increase one unit of output-has kept rising over the years, now at between 8 and 14. Meanwhile, the private sec¬tor with limited incentives from the Government has proved to be more efficient with the ICOR index rang¬ing from 3 to 5, and thus contributed significantly to the nation's growth. Half the total amount of investment in the economy is sucked into the state corporate sec¬tor. But this sector's contributions to the economy have been largely insig¬nificant despite the huge investment being funneled into state firms by the Government. What's more, they have been steadily falling over the years. Fulbright Economics Teaching Program says that the state-owned enterprisers generated 30% of GDP in 2001-2005 but the ratio dipped to 28% in 2006-2009. Their contributions to GDP growth plunged from 33% in 2001-2005 to 19% in 2006-2009 because the state corporate sector's GDP growth slowed down from 7.6% to 4%, half the percentage achieved by the private sector. The state corporate sector work¬force has also declined over time. A survey by the General Statistics Office shows the combined workforce of state owned businesses slid from 44% in 2001-2005 to 24% in 2006-2008, and even worse, massive layoffs happened at these companies with new job creations dropping from minus 4% to minus 22% in the cor¬responding periods. In 1995, the proportions of indus¬trial production value in the state and private sectors were equal but changed to 20%-80% in 2009. The picture about the state cor¬porate sector is pretty clear now. It has failed to live up to expectations that it leads the economy. Resources should have been channeled into where efficiency of capital use is greater, more jobs are generated, and productivity is higher. The state has kept insisting on championing a level playing field for all, so it is a paradox to emphasize the lead role of the state corporate sector only. It is the state that, through tools such as taxes and investment incentives, can orient businesses in all sec¬tors toward the fields that most benefit the economy. SGT

051110-The Government estimates public debt will total about 56.7% of GDP by the end of 2010. The figure will include Government debt totalling 44.5% of GDP and loans that it has guaranteed totalling 12.2% of GDP. Foreign debt will total 42.2% of GDP. International practice would have had the money the banks and State-owned enterprises owe in the to¬tal, one deputy argued. "Our public debt must be no less than 70% of the country's GDP based on that definition," he said. VNN

051110-"We spend (money) but how it is spent is unknown. I have been serving as a National Assembly deputy for Hanoi City for almost 10 years but have not seen a single provincial report on spending. "The ef¬ficiency and transparency questions are not yet adequately addressed, he says, and this is why some people in the legislature have yet to have full knowledge of the Vinashin situation. "Vinashin racked up losses of VND2.6tr / $133m within 2 years but no one knew about that. There have been in¬stances where provinces keep budget revenue estimates artificially low so that at the end of year, they can take pride in higher-than-expected results. In worse cases, they may sell land or forward tax revenue from one year to another to turn out good figures." Stressing the matter of transpar¬ency, the deputy of LangSon says the 56.7% proportion of public debt in GDP as put by the Government is du¬bious. But an economist projects the figure at a staggering 70% based on international calculation practices, requesting the Government to have a detailed report on the public debt. Public debt has grown steadily, from 33.8% in 2007 to 36.2% in 2008 and 41.9% in 2009, and it is forecast to leap to 44.6% in 2010 and the 50% safety threshold is just self-imposed. SGT

151110-Statistics by the HCMC Taxation Department showed that over 1,100 foreign di¬rect investment enterprises out of 2,190 operating in the city declared losses last year, up from 965 in 2008 and 591 in 2007. Many of the en¬terprises announced losses of 6 to 10 consecutive years. However, tax authorities doubted these figures and said that nearly VND6 trillion (US$300 mil¬lion) in losses had been transferred overseas to become profits of their parent companies. They were then able to evade paying tax. Despite the loss declarations, many companies have been grow¬ing in terms of turnover, network and market share. VNN

171110-Manchester University said investment opportunities in Vietnam looked attractive as some regional economies like Thailand and Indonesia were try¬ing to limit increasing hot money inflows by imposing higher capital gain taxes on foreign investors. "These unwelcome attitudes will direct money flows into Viet¬nam, triggering for the return of foreign portfolio investors (FPI) to the country." Meanwhile, domestic con¬sumption demand was high and private sector was increasingly contributing to economic growth, another favourable indicator for foreign eyes. "Last but not least, while other regional markets soar sharply, Vietnam's market has become rel¬atively cheaper and the domestic market will return to foreign investors' radars." Vietnam's stock market PE ratio is at around 10.3 times, compared to regional peers Indonesia 20.7, Malaysia 18.1, Philippines 14.9, Thailand 15.5, according to unofficial statistics. During the year to date the VN¬Index lost around 9% while other regional markets soared sharply on "hot money" with Philippines jumped 43%, Thailand soared 38% and Indonesia 33%. VIR

261110-The country's ICOR was 3.5 in 1991-95 and jumped to 6.6 in 2008 and 8 in 2009. In other words, Viet Nam has to spend VND8 worth of capital investment to generate VND1 worth of growth. Fig¬ures showing investment as a percentage of GDP jumped to more than 46% in 2007 from 18% in 1990. Government measures to con¬trol inflation had reduced it to about 41% but the gross rate still averaged almost 43% of GDP between 2006-10. The figures were much higher than those of the newly¬ industrialised economies and territories of 1960-80. The investment as per cent of GDP in South Korea was 23.3% and Taiwan 26.2% but they still gained economic growth of 7.9% and 9.7%. It's a worry that the more we invest, the less the investment efficiency is. VNN

291110-The Foreign Investment Agency (FIA) under the Ministry of Planning and Investment says local enterprises have trans¬ferred a total of US$1.79 billion to invest in foreign countries since 1989, when Viet Nam began in¬vesting abroad. But profit repatriated to Viet Nam was $39 million in the last 21 years, a re¬turn of just 0.46%, the agency estimates. Local firms have invested in 410 projects abroad since 2006 with a total registered capital of $7.05 billion. In the 1989-99 period, only 17 projects with a combined capital of $13.6 million were licensed. VNN

061210-The Fulbright Programme, identified some salient features : Viet Nam is not a major oil producer but 21 out of the 100 biggest companies have operations relating to petroleum and gas; 5 of the firms trade in gold, silver and jewelry and another 6 all local and serving the domes¬tic market, are in alcohol, beer and cigarette businesses, all are local and serve domestic markets, though the prosperity level in the country is below the world average; 67% of the top 100 were State owned enterprises, who camel their positions through near exclu¬sive access to natural resources or monopolistic control in the domes¬tic market in sectors like electricity and not because they were competi¬tive. Many of these firms were big, like the national power utility but not strong, citing Vinashin as an example. VNN

121210-Vietnam's public debt is expected to be 52.6% of GDP by the end 2009, or over VND10m / $513 per capita. The Government's outstanding debts jumped from 36% to 41.9% during the 2009-2010 period. SGT

121210-At the end of October, Vietnam had had 71 foreign credit institu¬tions, comprising 51 foreign bank branches, 5 joint stock banks, 5 wholly foreign owned banks, 6 finance companies, 4 finance leasing companies, and 48 represen¬tative offices. Some institutions have wholly owned units and branches being co-existent, such as HSBC, ANZ, and Standard Chartered Bank. This year has seen the networks of foreign owned banks expanding steadily. After one year of operation, 5 foreign owned banks have 14 branches at provinces. There are also 4 branches of foreign banks and 2 financial companies licensed to operate in Vietnam. SGT

151210-According to Maersk and Vietnam Business Forum’s Port Group, logistics costs in Vietnam are equivalent to 25% of GDP, whereas they are only 13% in Malaysia & Indonesia, 18% in China, and 19% in Thailand. The reason is poor infrastructure, congestion, added lead in time, less transparency and predictability in supply chian, and inefficient trucks with no weight restriction enforcement. VIR

301210-Vietnam's exports in 2010 reached US$71.6 billion, up 25.5% from 2009 and much higher than the target of 6% set by the National Assembly. According to the Gen¬eral Statistics Office, apparel was the top export commodity, earning US$11.1 billion. Meanwhile, imports were US$84 billion, leaving a trade deficit of US$12.4 billion. SGTW

301210-Disbursed FDI in 2010 is estimated at US$11bn, up 10% from 2009. According to the MPI, fresh FDI in 2010 reached US$18.6bn, down about 18% year-on-year and below the target of US$22-25bn. Of this amount, fresh capital for new projects made up US$17.2bn and added capital for opera¬tional projects US$1.4bn. Real estate attracted US$6.8bn, processing and manufacturing industries US$5b and power, gas and water supply and distribu¬tion US$2.9bn. Exports by FDI enterprises (excluding crude oil) were US$33.8bn and imports US$36.5 bn. SGTW

301210-The SKER contributes nearly 60% of Vietnam’s tax revenue and over 70% of outbound sales. SGTW

301210-Vietnam’s Top 10 Export Markets (Jan-Oct) USD$bn
1. USA 11.6
2. Japan 6.1
3. China 5.3
4. Switzerland 2.6
5. South Korea 2.3
6. Australia 2.1
7. Singapore 1.8
8. Germany 1.8
9. Philippines 1.5
10. Malaysia 1.5

301210-Vietnam’s public debt is 52.6% of GDP or over VND10m / $513 per capita. Outstanding debts jumped from 36% to 41.9% during 2009-2010. SGTW

311210-The real estate sector attracted the largest share of FDI with USD$6.84bn in 2010. VNN

301210-The Vietnam insurance market has grown in 2010 with total in¬surance premium expected at over VND30tr / $1.54bn, a 20.3% yoy increase. Life insurance premiums total VND13.6tr / $697m, up 16% against 2009. SGT

050111-The Grant Thornton International Business Report, which was released yesterday, indicates 62% of Vietnam's privately held business owners are optimistic about the country's economic performance this year, which is lower than the 72% for 2010. The 62% is significantly higher than the global average of 23% and the Asia Pacific (excluding Japan) average of 50%. Vietnam is also above 50% for Malaysia, 42% for mainland China and 39% for Thailand, but below 93% for India, 87% for the Philippines and 65% for Singapore. SGT

061110-PetroVietnam generated a record revenue of $24.5bn or 24% of Vietnam’s GDP in 2010. SGT

110111-According to the Central Institute of Economic Management, between 1991 and 2009, Vietnam's GDP grew 7.45% annually, and GDP per capita increased 5.7% per annum to reach $1,064 in 2009, bringing Vietnam in the group of middle-income countries. GDP growth still relied on exten¬sive investment capital, which comprised 29.8% of GDP during 1991-1995, 51.2% between 1996-2000 and 60% during 2001-2005. The MPI reported Vietnam's labour productivity remained far lower than other regional countries, reaching only 38% of China and 27% of Thailand in 2007. Meanwhile, Vietnam had to consume 1kWh of elec¬tricity to make less than $0.9 in GDP, the least efficiency in the world. By comparison, the Philippines earned $1.8 in GDP from the use of the same amount of energy while it was $2.2 in South Korea. In some advanced countries 1kWh of power could help produce $5 in GDP. The MPI's Development Strategy Institute said envi¬ronmental pollution was the biggest headache for all localities with almost all rivers in Vietnam being pol¬luted and natural resources overexploitation being com¬mon. They also underscored the fast enlarging poverty gap, despite "impressive poverty reduction achieve¬ment" with the poverty rate falling quickly from 58.1% in 1993 to 9.45% in 2010. The quality of poverty reduction remained problematic with the poverty rates in many areas remain¬ing 4 times higher than the nation's average. VIR

110111-The HCMC Taxation Department report¬ed late last year that 60% of the 3,500 FIEs operating in the city reported losses in 2009 and 50% in 2008. Meanwhile, 104 out of 111 FIEs in Lam Dong province reported losses. Head of Vietnam Eco¬nomics Institute said that decentralisa¬tion of investment licensing had prompted localities to race for attracting foreign direct investment (FDI). "But localities' weak management has given opportunities to many FlEs in overexploiting natural minerals and polluting the environment. Vietnam's complicated investment policies are preferred by many FIEs, because they can find loop-holes in such policies." In 2009, FDI comprised 25.5% of the total investment in Vietnam and FIEs contributed 131.3% to the nation’s GDP. FIEs employed nearly 4% of Vietnam's labour force. They also comprised 57.6% of Vietnam's total export-import turnover in 2010. VIR

110111-FDI disbursement in 2010 was about USD$11bn, a 11% increase on 2009. The committed capital in 2010 was USDS$18.59bn, down 17.8% on 2009. The government expects to lure at least USD$11bn in implementation capital in 2011. VIR

110111-Vietnam’s economy 2010 : -
GDP growth 6.78%
Inflation 11.75%
Per Capita Income $1,168
Exports $71.6bn (up 25.3%)
FDI $18.6bn
Trade Deficit $12.4bn
International Visitors 5m
Industrial Growth 14%

110111-Added Value General Output
1995 42.5%
2000 38.45%
2005 29.63%
2007 26.3%
2010 (est) 21%

200111-Real estate accounted for 36.8% of the total registered capital in 2010 with 27 new projects worth USD$6.7bn and 6 projects with additional USD$132m. SGTW

2005 2008 2009 2010
Total Investment Capital – USD$bn 6.8 71.7 23.1 18.6
Disbursed Capital – USD$bn 3.3 11.5 10 11

200111-Total registered capital to date of over 11,900 projects has already passed USD$191bn whilst disbursed capital (according to incomplete statistics) has reached less than USD$90bn. SGTW

200111-The development of HCMC’s logistics sector is hamstrung by appalling transport infrastructure, which sparks off severe congestion and skyrocketing transport costs. The latter accounting for 30-40% of product prices in Vietnam, far higher than in other countries (about 15%). SGTW

200111-Economic Targets for 2011

GDP growth 7 – 7.5%
Inflation 7%
Per capita Income USD$1,300
Exports USD$78bn
FDI USD$20bn
Total Investment USD$47.7bn
Budget Revenue USD$30.15bn
SGTW

270111-According to the Tax Department in HCMC where 40% of FDI enter¬prises in Vietnam are based, the rate of FDI firms reporting losses slid from 39% in 2008 to 34% in 2009. Deputy Minister Tuan expects the figure will drop below 30% or as low as 15% in the next few years as authorities look more into financial reports to compare global and regional prices. SGT

Date : Sunday, 04 October 2009
Category : Realty - Hanoi General


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CONTACT US TO OBTAIN A FULL BACK – CATALOGUE


070107- Each month there are about 3,000 vehicles newly regis¬tered in Hanoi. The capital is expected to have about 200,000 motor vehicles and nearly two million motorcycles, excluding cars operated by administrative and local authorities this year. The city is currently reserving just over 1 per cent of city's land for car parking, while most cities in the world typically reserve 6 to 7 per cent. VIR

220107-Korea’s Kumho Asiana is seeking to widen its investments in Vietnam. The corp’s chairman arrived for the purpose saying the they are considering investing in a new urban area covering 207 hectares in Tu Liem with a total cost of USD$700m. SGT

250107-Malaysian property developer Ber¬jaya Land (BLand), will JV for the 31 hectare mixed development project in Hanoi worth $294.1 million. The project will consist of 9 apartment blocks comprising 1,640 units, 228 serviced apart¬ments, 124 terrace bungalows, an office block with gross saleable area of about 17,000 square metres and a shopping mall with a gross saleable area of 43,000sgm. The Berjaya-Handi¬co12 Residential and Commercial Project will be located at Thach Ban Ward, Long Bien district in Hanoi. VIR

040407-The Vietnam Oil and Gas Corporation (PetroVietnam), Vietnam Con¬struction Import-Export Corporation (Vinaconex), and Vincom Joint Stock Co. PetroVietnam will build a complex comprising a 350¬room hotel of 5 star stan¬dard, luxurious apartments and offices covering 3.7 hect¬ares in Tu Liem District. The complex will require USD$75 million and open in March 2010. SGT

040407-Vinaconex will build a commer¬cial center in Hai Ba Trung District at an estimated cost of more than USD$62.5 million to open in July 2010. SGT

040407-Vincom will develop an eco-tourism resort plus a 36-hole golf course cov¬ering 500 hectares in Long Bien District with around USD$93.75 million in the first phase of this tourism complex. Vincom has proposed sev¬eral buildings, club house, parking lot, tennis court, swim¬ming pool, and ornamental plant and bird gardens. SGT

0507-Developed by an amalgamation of the Cuba-Vietnam Construction company, the Hanoi Construction Corporation, the Vietnam Insurance Corporation and the Hanoi Import-Export Corporation – VIGEBA - Hanoi's $600 million Exchange City project has been forced to delay construction. The Exchange City is located in one of the most sought after chunks of Hanoi, surrounded by Pham Van Dong, Cau Dien and Hoang Quoc Viet streets and the Nhue river and boast high rise buildings, villas, semi-detached houses and parking lots when it is completed by 2013. The 95 hectare city will accommodate at least 12,400 residents. The project will also set aside land for building more than 840 apartments for people made homeless by the project. The Exchange City was initiated since 1996 by a joint venture between Vietnam International Construction Company and the La Cite Des Exchange from Switzerland. The project hoped to develop Hanoi's Tu Liem district into a modern international city with total investment capital of $500 million. However, after 5 years the Swiss partner withdrew because it could not raise enough capital and the project was transferred to VIGEBA. VIR

0507-The Hanoi People's Committee made public a 90 project wish-list calling for investment. The list contains 33 projects in trading and services, 24 projects in culture and entertainment, 18 projects developing public facilities and 10 housing projects and 5 industrial projects with total investment capital of $2.5 billion but inefficient procedures at the local level was still a turn off for many. "This is the invisible wall which hinders investors who want to push their projects." Hanoi wanted to develop 2 key groups of projects : the North Red River area; and the banks of the Red River. The Mayor said the city needed huge investment capital of about $37 billion to 2010. The city's budget could only supply less than $10 billion. "The rest will be based on investors." Trieu said. VIR

Biggest projects to attract foreign investors
Project's name Venue Size Schedule
Thuong Thanh hotel Long Bien district 2.5 hectare 2007-2008
Vinh Hung trading centre Hoang Mai district 3.5 hectares 2008-2010
Dai Kim hotel complex Hoang Mai district 4.7 hectares 2009-2010
Phu Dong - Duong Ha golf course Gia Lam district 200 hectares 2007-2010
Eco-tourism and parking lot Tay Ho district 10 hectares 2007-2010
Xuan Phuong new residential area Tu Liem district 135 hectares 2007-2010
Tennis court Tu Liem district 3.56 hectares 2007-2009
Auto service centre and parking lot Cau Giay new resy area 2.4 hectares 2007-2010
Waste treatment station Thanh Tri district 12 hectares 2007-2010

0707-The price of apartments in some old block in Hanoi has doubled following news they are to be refurbished soon. The price for a 30 square ¬metre apartment had increased to around VND600 million ($37,500), compared with VND350 million ($21,800) at the same period last year. After being rebuilt, existing owners will be resettled in new apartments with the additional square paid by the government. The current common apart¬ment size of 14 to 18 square metres will increase to 40-80 sqm. According to Hanoi People's Committee, all old living quarters will be eliminated and rebuilt from now to 2015. So far there have been only 2 projects completed. According to the Ministry of Construction, more than 3 million square metres of old apart¬ments built prior to 1980 are slow¬ly falling apart in Hanoi, Ho Chi Minh City and Haiphong. VIR

140407-Hanoi's investment authority has pledged to put an end to scores of stalled foreign¬ invested projects in the city unless the investors can come up with some solu¬tions. Projects on the black list, which were granted invest¬ment licences but could not get off the ground, include the $240 million Tran Song Hong urban development, the $15.7 million Noi Bai golf course, the $28 million Hai Ba Trung Reality office building, the $40 million SAS Hanoi Royal Hotel, the $57 million Hanoi horse race track, the $656 million CDMA 2000 mobile service, the $152 million Sai Dong A industrial park, the $2.7 mil¬lion Hanoi International School, the $50 million International American Hos¬pital, the $1.7 million Hanoi Bohemia venture and the $10 million 3 star Indochine hotel. But at least 5 large-scale projects are on the drawing board including : South Korea's Charmvit's 5 star hotel with the estimated investment capital of $80-$100 million, Malyasia's Gamuda's park at Yen So lake ($580 million), UK Pacific Land's Nam Thang Long biotech park (estimated $1 bil¬lion) and the proposed Sai Dong A hi-tech park ($1 billion). VIR

040507-21 officials in Hanoi have been disciplined for dereliction of duty over the illegal development of hi-rise buildings in the capital. SGT

0507-Hanoi's planned financial and banking zone will be moved from the West West Lake urban development area to the North Red River urban area following zoning problem. The West West Lake project was required to set aside 25 hectares for use as a financial and banking zone. However, in its designs, the South Korean-backed consortium had only set aside this area for public and administrative functions, and expressed reservations at changing this proposal due to the infrastructure and marketing modifications required. The zone planned for the West West Lake area had been estimated to cost between $300 million and $500 million, depending on the facilities. Spread over an area of 25ha, it was expected to be the first financial and banking centre in the country, enabling Hanoi to emerge as a regional hub. The North Red River urban centre will be built in 3 stages. The 1st Stage from 2003-2010, will cover a 5,000ha area in south Van Tri and Co Loa on the out-skirts of the Dong Anh district. The 2nd Stage will cover a 3,990ha area in the northern towns of Van Tri and Dong Anh that would house up to 220,000 people. The 3rd Phase, of 525ha, will be divided into 12 sectors, including building new urban centres and developing 7 infrastructure projects. The North Red River urban area is touted as being able to house 770,000 people. Along with the financial zone, the area will also be home to industrial zones, entertainment centres, sport facilities, residential and accommodation areas. Current projects are under construction include the Noble golf course, Sumitomo industrial zone and the North Bridge new residential area. VIR

0507-Land clearance and compensation has been completed for more than 100 hectares of the West West Lake urban development project. West West Lake is a $314 million project backed by a Korean consortium to develop a modern city to the west of Hanoi's West Lake. The project, planned to cover 207ha of the city's 3 outlying districts of Tay Ho, Cau Giay and Tu Liem, will include office buildings, commercial centres, luxury hotels, residential areas, parks and public service works. Many projects are delayed because investors are not able to negotiate compensation packages with local residents, with developers taking an average of 36 months to complete these activities. For other projects, negotiations could be much longer. VIR

070507-Hanoi will auction 17 plots of land totaling 295 hectares. The maps, land transfer procedures and site clearance have been completed. SGT

080507-The new Hanoi Land Development Centre has been assigned the job of providing land clearance and compensation for land covering a total of 300ha of for 18 projects this year. The centre recently finished compensa¬tion procedures for the X2 land lot for a five-star hotel in Me Tri-Tu Liem, along with the X3 land lot in Me Tri park project, the southwestern Kim Giang urban area and many other projects. Minh added that four land lots will be put on the auction block by the year's end, expecting to add about $18.7 million to Hanoi's budget. In the past investors have claimed that land clearance and compensation was one of the most difficult hurdles when imple¬menting real estate projects. Many projects were delayed because investors were not able to negotiate com¬pensation packages with local residents, with developers taking an average of 36 months to complete these activities. For other projects, negotiations could be much longer. VIR

180507-Ha Noi People's Committee issued a list of 90 projects seeking investors including 33 in the commercial services sector, 24 in sports and educational facilities, and 18 in infrastructure development. The remainder included building complexes and industrial projects. Among the largest projects were infrastructure for a 125ha industrial zone in Soc Son District, a 526ha tourism project in the West Lake area, the Ti Thanh Oai golf course on an area of 200-300ha, and the Xuan Phuong New Urban area on 135ha. Commercial and services projects on the list include proposed shopping centres and hotels. A planning scheme for the northern Hong (Red) River area, long eyed by foreign investors, was also announced. Infrastructure will be built on 4,500ha in this area, requiring capital of about US$30 million. Total capital needs for the city's infrastructure development are estimated at $37 billion. The State budget would likely cover about 25% with the rest coming from private financing and investment. VNN

310507-According to the develop¬ment master plan, by 2020 the city of Ha Noi would increase to 2,800 sq.km from 925 sq.km at present, with a population of 5 million compared to the present figure of 3.5 million. Under the plan, urban area would account for 85%. The city's GDP would account for be¬tween 15-16% of the country's GDP - an increase of one and a half times over the present figure. Income per capita per year is expected to reach USD$7,500, triple the present figure or about 2.2 times the national average. In the 5 years ending in 2010 Ha Noi planned to increase its GDP by 12% per annum. VNN

010607-An auction of 1,586.9sqm of land in My Dinh – Me Tri new urban town in Hanoi’s Tu Liem District will be held on 3rd June with the reserve prices set at VND17 million / USD$/1,057sqm ie USD$1.677m. The lot is planned for building villas. SGT

280507-According to the Ministry of Construction, only 70% of construction sites in Hanoi have building permission. Out of these, 34% have ignored building restrictions. VIR

050607-Hop Nhat Co. Ltd. has won an auction of 1,586.9 square meters of land in My Dinh-Me Tri new urban town in Hanoi's Tu Liem District at a price of VND65.9 million / $4,098 per square meter, triple the reserve price of VND17 million / $1,057. Of the 33 companies vy¬ing for the lot, Hop Nhat JSC won with US$4,118. In total, the company will pay $6.53 million for the prop¬erty, which experts say is too high. Hop Nhat must begin construction within a year of receiving the property and are allowed to erect several 3 to 4 story buildings. SGT & VNN

140607-Hanoi’s Thanh Tri district auctioned 8,622sqm of land in Ngoc Hoi IP for USD$3.3m ie USD$382/sqm. This land use rights last 50 years and the site can only be used for office or commercial developments. SGT

180607-Hoang Mai District - the Kim Van-Kim Lu urban zone, covering nearly 27ha in the district's Dai Kim ward in the southwest of the city, will provide housing for nearly 4,800 people.. Nearly 12ha of the site will be dedicated to a residential area, with apartment and condominium towers rising up to 19 storeys, and the remaining area dedicated to schools, roads and other infrastructure. VNN

030707-Hanoi will have an additional 1,500 hectares for urban devel¬opment and 3,000 hectares for greenery and public works alongside the Red River's banks as outlined in the Korean zoning plan. SGT

060707-Development along the Red River : Seoul will put up USD$5 million and share its own experiences develop¬ing on either side of the Han River in the South Korean capital city. The current project's proposal entails the construction of new, and consolidation of old dikes up to 45 kilometers in length along both banks of the Red River. About 1,500 hectares of alluvial plains will accommodate 300,000 people in new urban areas. An es¬timated 18,000 people, however, will be forced to relocate. SGT

140707-The Hanoi People's Committee has announced that it will need approximately USD$15.6 million for land clear¬ance and compensation this year. The money is needed to fund the resettlement of more than 13,000 households located near construction projects. According to the city's Land Clearance and Compensation Management Board, 269 projects are in the process of clearing 1,528 hectares and compensating residents. Thu committee previously planned to launch 155 land clearance and compensation projects this year. In the first half of 2007, 82 projects were completed with total compensation of USD$140 million and more than 5,400 households were resettled. VIR

180707-Coralis’ 65-storey Hanoi City project is a joint venture between Luxembourg based company Coralis SA and Lohr Industrie worth $114.6 million. Licensed since January 2005, the 14,094 square-metre Hanoi City site is situated at the corner of Lieu Giai and Dao Tan streets, oppo¬site the Hanoi Daewoo hotel. The complex will comprise offices, apartments, a shopping centre, supermarket, cinema, health care cen¬tre and a car park. Office space will occupy floors 7 to 28, while the apartments occupy the 29th to 62nd floors. When realised, it will dwarf the recently opened 34-storey Vinaconex building in the Trung Hoa-Nhan Chinh Residential Area. VIR

200707-The Finance Department is set to auction a house of a State owned company at a floor price of VND16.5 billion / $1.03m ie USD$9,330 / sqm. The house is located at 110 Ba Trieu Street in Ha N6i's Nguyen Du Ward and covers an area of 110 sqm. Investing in building a housing project at the location is in conformity with the city planning. The height of the project is capped at 5 storeys. SGT

120807-According to director of the Ha Nbi Department of Planning and Investment more than 220 companies have registered to bid for 79 property projects in the city. Of these projects, the Xuan Phuong Urban Area in Tu Liem District interests most investors with 43 bidding applications. VNN

080907-A significant number of buildings have been rising up in the My Dinh area, west of Ha Noi, and some experts are saying it will cause a redundant supply of hotels, offices, and apartment complexes over the next several years. Last month, the Keangnam Group began work on a US$1 billion ho¬tel and apartment complex project on Pham Hung road in Ha N6i's Cau Giay District. Not far away, the Charnivit Com¬pany began construction on the Ha Noi Plaza, which will feature a 360 room hotel and 54,000sq.m office building, while the Kumho Group will develop the Me Tri exhibition complex. Both projects are esti¬mated to have a total investment capital of $2.5 billion. The 23 hectares of land in front of the National Convention Centre have been reserved by a joint ven¬ture consisting of Japan's Viglacera and Orix companies and Singapore's UOL Co. The JV said it planned to invest about USD$235 million into apartment buildings in the area. Japan's Riviera Group is also eyeing the 4.3 hectare area behind the convention centre, where the com¬pany plans to build a USD$500 million hotel, office and apartment com¬plex. In the hotel field alone, the My Dinh area has lured in 8 projects, with about 3,500 rooms, according to local authorities. In the offices market, besides the Viglacera Tower, which is already in use, nearly 500,000sq.m will be available over the next 5 years, with new projects like Cong Tay, Vimeco, and Crown Plaza. The projects will turn the area into a new urban centre, along with the Hoan Kiem and Hai Ba Trung districts. With current progress levels, most projects will be completed by 2010-12. But, perhaps in such a short time and in such a small area 500,000 sq.m of new office space is too much when compared to the current 300,000 sq.m of total office spaces now being leased in Ha Noi.

140907-For the first 7 months of 2007 relevant authorities in Hanoi have issued reports on 1,988 construction viola¬tions, 175 cases of which were legal violations, 806 didn't have the proper li¬cense and 777 cases in which the project had no li¬cense at all. VNN

170907-The Hanoi Old Quarter Management Unit (HOQMU), said the ancient street area had been in a serious state of dis¬repair for a long time and the HOQMU was unable to preserve and protect areas of the old quarter which have such a high population density. The area that needs most improve¬ment stretches over 10 communes in Hoan Kiem district. At present, more than 15,000 inhabitants are living in the ancient streets in poor conditions with an average floor space of 0.5 to 1.8 square metres per person. Moreover, 63% of accommodation is seriously deteriorated and 12% is not safe enough for human occupation. According to Decision 45, which was issued by the Hanoi People's Committee, 76 streets and 1,081 old houses in the area are on a preservation list. In addition, there are 112 histori¬cally important buildings which are in urgent need of renovation. The old quarter of Hoan Kiem, called the "36 streets and corporations" quarter, has been the historic heart of the old trading city for nearly 1,000 years. VIR

190907-Hanoi officials and South Korea's Seoul experts have dis¬cussed a megaproject to develop a new urban town along the banks of the Hong River in the capital city. The 2,462 hectare town will comprise 97,000 apartments for 342,180 people. The project will require total investment of US$7 billion and lead to the relocation of 170,000 residents in the area. SGT

090907-According to the Ministry of Construction, more than 3 million square metres of buildings built before the 1980s in Hanoi, Ho Chi Minh City and Haiphong are seriously dilapidated and accommodate more than 100,000 households. Hanoi has 23 residential quarters comprising 1 million square metres which are in urgent need of renovation. The buildings are mainly in the Thanh Cong, Giang Vo, Van Chuong, Nguyen Cong Tru, Thanh Xuan and Kim Lien areas. All are low rises. In addition, Ho Chi Minh City needs to rebuild 6 of its most dilapidated buildings, cov¬ering a total of 500,000 sqm. So far only 2 projects have been picked up, one in Kim Lien and another in Giang Vo commune. The investment incentives include exemption from land use and lease taxes and permis¬sion to transfer a part of the pro¬ject for commercial purposes. VIR

250907-The rapid urbanisation of Hanoi is pushing developers towards Tu Liem district's My Dinh-Me Tri area to build high-rise properties but some observers are con¬cerned at a possible oversup¬ply of office space and hotel accommodation when the buildings are opened for lease in 5 years. CEO Investment is amongst the first developers to move into the area with the joint stock outfit con¬structing an office building 200 metres from the National Convention Centre which will provide 20,000 square metres for lease in two years. They anticipate the CEO Tower would command a rental rate from $20-$23 per square metre, slightly higher than the average $17 level that Viglacera, a 17,000sgm office building opposite to the National Convention Centre, is currently leased for. Next to the CEO Tower, Cavico Vietnam is building twin office towers, while Vimeco is working on an office building after selling all residential units in a block next to the Big C hypermar¬ket. The area will be trans¬formed by the Landmark Tower, a $1 billion residen¬tial, hotel and office develop¬ment by Korea's Keangnam Enterprise that will boast one 70-storey and two 47-storey buildings with a total floor space of 578,000sqm. Keangnam competed with Japan's Riviera for a 4.3 hectare site behind the National Convention Centre. However, the Japanese com¬pany won Hanoi's support and plans to inject $500 mil¬lion to build apartments, offices and hotels. Some 8 hotel projects have been planned for My Dinh and Me Tri, including the 630-room Hanoi Plaza by Charmvit Group, Tran Hong Quan Trade Company's 363¬room Crowne Plaza and Bitexco's 500-room Mar¬riott. Hanoi's Department of Planning and Architecture recently approved another 5 star hotel project to be included in the Phung Khoang new town, a 42 hectare mix-use development oppo¬site to the National Conven¬tion Centre. There is also a large amount of office space planned in the My Dinh area, probably as much as 500,000 sqm over the next 5 years, which is about double the current total in the whole of Hanoi and there must be a question whether this much office space can be filled up. VIR

051107-My Dinh is emerging as the fastest growing new urban town of Hanoi City. In addition to The Manor property project which is underway along Pham Hung Street, work on many other projects has just been and will be started there in My Dinh to create a new satellite city. The major projects include the 70-story Keangnam Hanoi Landmark Tower, the CEO twin tower, the Crown Plaza, the Hanoi Plaza, Licogi 13 complex, and the Hanoi Indochina Plaza. VNN

101107-Most National Assem¬bly deputies of the Ha Noi delega¬tion agreed yesterday that State property should be available for hire to avoid waste and raise revenue. But they worried about how the property should be managed and how the profits from the hire or lease of it collected. The State should list appropri¬ate lease prices to make it easier for both State management agen¬cies and lessees. Deciding how to en¬sure the suitable use of State property and who will man¬age it was most important. This should be transparent and clear to avoid corrup¬tion. The Finance Minister and provincial and district People's Committees chair¬persons should have the right to requisition property. VNN

121107-My Dinh (west of Ha Noi) is still the fastest growing new urban area in the city AND by 2011, around 300,000 sq.m of of¬fice space, hotels, retail centres and residential projects will be on the mar¬ket in the area which is perceived as an increasingly attractive investment destination due to its strategic location and infrastructural develop¬ment. VNN

111107-The $223 million joint venture between Vietnam, Singapore and Japan has kicked-off. The VOU Investment Co. was set up between Vietnam's Glass and Ceramic for Construction Corporation (Viglacera) and the Singaporean-Japanese firm Orix-UOL Investment. The company has invest¬ment capital of $60 million, 60 per cent of which is held by Viglacera, and received an investment certificate last week. Its project, Western Gate, will comprise a mod-ern complex of office, com¬mercial and residential areas, as well as sport and education facili¬ties. In an area of 40,000 square metres in Tu Liem district's Me Tri com¬mune and Cau Giay district's Trung Hoa com¬mune, the joint venture will build 1,000 apartments, a 350-room hotel, a 30-storey office tower and a 24,000sgm shopping centre. It is expected that the Western Gate project will contribute to easing the population density in the centre of the city, and help develop the western areas of Hanoi. Among other com¬panies interested in the area are Japan's Riviera with a plan to develop a $500 mil¬lion estate. South Korea's Keang¬nam is also developing a 70- storey complex worth $1.05 billion, and the Kumho Asiana Group has said it will invest more than $1 billion to develop the future My Dinh Exhibition Centre. VIR

201107-The Hanoi People's Committee has issued a decision that sets auction fees for individuals. The city will collect VND50,000 to VND18.5 million / $1,150 from those who auction their properties and from VND20,000 to VND500,000 / $31 from their customers. SGT

041207-Hanoi to revise up land prices by 20% Land prices in Hanoi will grow 20% next year if the city's People's Council approves this proposed rise. The Hanoi People's Committee has submitted the proposal, which sets the highest rate of VND67.5 million / $4,196 per square meter of land along the streets in the center of Hanoi. SGT

310108-The Hanoi Department of Natu¬ral Resources and Environmental estimated that the capital city would collect land taxes and related revenues of more than VND4.8 tril¬lion (over US$300 million) this year. The total amount includes over VND3.6 trillion / $225m from auctions for land use rights. SGT

020208-The Hanoi Planning and Invest¬ment Department, said the city's area will be tripled to 3,200 square kilometres and contain nearly 7 million people once the city's expansion plan is approved. The expansion plan will be closely based on the Red River Regional Master Plan and the Social and Economic Development Strategy. The city will spread out to Ha Tay, Hoa Binh, Vinh Phuc, Bac Ninh, Hung Yen, Hai Duong and Ha Nam provinces. Hanoi will remain the political, administrative and economic development hub, while neighbor¬ing provinces will be developed into industrial zones and vocation¬al villages. The capital was current¬ly rapidly spreading westwards to Tu Liem district's My Dinh com¬mune, with growth soon extending to the eastern bank of the Red River. In 1998 the government assigned the city to develop the river banks. In the past 6 years the Hanoi People's Committee has coordinated with consultancy firms from Japan, South Korea and the US to research the development of land north of the Red River. The 11,000 hectare area in the northern bank, which has a population of 1.5 million, offered exciting opportunities for develop¬ment. Two bridges, Vinh Tuy and Thanh Tri, are under construction while the Nhat Tan bridge is expected to start construction early this year to help developers pene¬trate the river's northern bank. The west of Hanoi would be reserved for devel¬oping tourism and resort facilities, the north and northeast for devel¬oping industrial and urban sites, while the east would develop ser¬vices and agriculture. VIR

280208-Hanoi needs about USD$1 billion for the cultural and transport projects planned for its 1,000th anniversary in 2010. But so far, it has been able to mobilize USD$250,000. VNN

100308-The Ministry of Construction reports that Ha N6i will need US$13 billion by 2020 to improve its transport system. The city would also have set aside between 15-20% of its total land for construction of transport facilities. 150 inner city intersections will be expanded and upgraded while 46 new ones will be built on bypasses to ease traffic congestion. VNN

120308-The completion of the 6 lane, 30km Lang-Hoa Lac Corri¬dor, planned to be the East¬ West development corridor of Hanoi Region, is expected to be mostly "quality of life resi-dential" with mixed-use com¬mercial, high tech business parks and light industrial, recreation and ecological developments, schools and medical facilities. In Ha Tay today, many of the developments are self-contained townships as opposed to dense urban resi¬dential neighbourhoods com¬monly seen in Hanoi. There is an estimated 130 residential developments in planning or construction while other recreation amenities are being added to draw interest to liv¬ing in the province. Ha Dong City will be developed into a high-density residen¬tial area, and the Lang-Hoa Lac Highway Corridor developed into mixed-use townships. Major township develop¬ments underway in the province include the 240 ¬hectare Nam An Khanh by a joint venture between Posco and Vinaconex, Sudico's 180 hectare Bac An Khanh and Nam Cuong Group's 197 hectare Duong Noi. Other foreign developers such as Booyoung and Hyundai RNC have permission to build residential high-rise complexes in Ha Dong City costing USD$270 million and USD$196 million respectively. VIR

150308-Hanoi plans to raise US$137.5 million from the auction of land-use rights this year. There will be 21 auctions and sites will include 14.4ha in Cau Giay, 3ha in Long Bien, 3ha in Le Mat, 25ha in S6c Son and 41.3he in Tu Liem. The city has advanced $6.25 million to support implementation of the projects. The city will develop the infrastructure for the land to be auctioned and have 35 such projects listed for this year, with 8 new and the remainder from previous years. VNN

180308-Hanoi City's Department of Natural Resources and Environment received $1.4m from auctioning a land plot covering 350 square meters in Tu Liem District's My Dinh-Me Tri area, averaging out at over $4,160 a meter. The auction winner will not be allowed to build high-rise structures at the site. SGT

200308-Two local firms - Vinalines and Vietnam Star - and Switzerland's Tradco Global Engineering and Con¬struction S.A have introduced a plan to the Hanoi government to develop a 450 hectare town along the Ca Lo river. The project, if approved, will be imple¬mented in four phases, with the fist lasting from 2008 to 2013. SGT

250308-A consortium of 3 investors led by the Switzerland's Tradco Global Engineering & Construc¬tion SA outlined plans for a $3 billion residential and commercial complex with Vinalines and the Viet Star Group along the Ca Lo river in Dong Anh and Soc Son districts and the capital's Red River. The 400 hectare site would also involve Dong Anh District's Bac Hong commune and Soc Son district's Phu Minh and Phu Cuong, that are a part of the North Red River New Residential Area. There will be one 6 star hotel built on the site with 250 rooms. Other 4 & 5 star hotels will be linked with residential, office and trading centres. In the 1st Phase, the 6 star hotel, an 18 hole golf course, water park and modern villas will be built. The 4 & 5 star hotels will be developed in the 2nd Phases. In the 3rd Phase, a residential area will supply around 2 million square metres of accom¬modation. Schools and universities will be developed in the last phases with a hospital and multi-function centres. VIR

280308-The People's Council agreed yesterday that the size of Ha Noi should be tripled and its population almost doubled in the next 12 years. It proposes the merging of Ha Tay Province - land and people - Vinh Phuc Province's Me Linh district and four communes of Hoa Binh Province's Luong Son District with the capital city. The city would ex¬pand to 3,325 sq.km and its population to almost six million. It would have 29 district and 575 communal admin¬istrative units. The proposed "new" Ha Noi would border Bac Ninh and Hung Yen prov-inces to the East; Hoa Binh and Phu Tho provinces to the West; Ha Nam Province to the South and Thai Nguyen and Vinh Phuc provinces to the North. VNN

310308-Land prices in Ha Tay Prov¬ince have begun leaping since the People's Council of Hanoi City unanimously adopted a resolution on the city's geo¬graphic expansion encompassing the whole Ha Tay Province, Me Linh District of Vinh Phuc and 4 communes of Hoa Binh's Luong Son District. The price of a plot of land put up for auction around 2 months ago was VND18 million per square but it has now surged to VND25 million / $1,155-$1,603. SGT

120408-The government of Hanoi is pushing for a mega-project worth US$7 billion to develop a new city along the Red River. The planned new city will be di¬vided into 4 sections covering a total of 1,500 hectares. Section 1 will stretch from Chem to Thang Long Bridge, section 2 from Thang Long Bridge to Chuong Duong Bridge, section 3 from Chuong Duong Bridge to Thanh Tri Bridge and section 4 from Thanh Tri Bridge to Bat Trang. The new city will stretch 40 kilo¬meters along the Red River and house a little more than 340,000 people, around 10% of Hanoi's cur¬rent population. One of the challenges faced by the project is to relocate 170,000 people from 39,000 families. This job, which is estimated to cost US$1.5 billion, should be completed by 2020. SGT

050508-In mid-2008, the PM approved a plan that will see the development of the Ha Noi Capital Region (HNCR) over the next 40 years which will cover an area 13 times larger than the capital itself at present, following a planning scheme approved by Prime Minister. The HNCR will consist of Ha Noi and the 7 provinces of Ha Tay, Vinh Phuc, Hung Yen, Bac Ninh, Hai Duong, Ha Nam and Hoa Binh. Eventually, this super Ha Noi region will cover an area of nearly 13,000 square kilometres and have a radius from 100 to 150km. The total population of the region is expected to reach between 18 million and - 18.2 million by 2050. Of this, urban population will surge from about 4.1 to 4.5 million in 2010 and from 8.1 to 9.2 million in 2020. By 2050, the figure will be 14.4 to 15.4 million. Average urban land per capita in the region will be 115 square metres by 2050. The HNCR will be devel¬oped as a concentrated, multi-polar urban region stretching out 55km to 90km from the edge of Ha N6i City. The whole capital city re¬gion will be divided into three sections, an Central Core, an outer Adjacent Area and a Counterpoise Area. Spatially, the city will de¬velop in three directions with three urban zones - in the South, the North and the East of the Red River. The major industrial cen¬tre of Ha N6i will be in the eastern area, stretching from the municipal centre to the provinces of Hai Pheng and Quang Ninh. Industrial companies ca¬pable of causing pollution will be moved to the outskirts. The displacement will be ac¬companied by the establish¬ment of satellite urban zones, such as Bac Thang Long, Nam Thang Long, Bo De and Yen Vien. VNN

160508-In mid-2008 the PM approved a plan for a Hanoi "super region" 13 times larger than the capital at present, including 7 surrounding provinces. VNN

150508-Hanoi will need nearly US$13 bil¬lion for transport development un¬der a zoning plan mapped out by the Ministry of Transport for appli¬cation until 2010, with the focus on public transport means able to meet 30-35% of the traffic demand there. SGT

150508-The People's Committees of Cau Giay, Dong Anh and Long Bien Districts are auctioning off land-use rights at the Cau Giay new urban area and Lien Ha Commune with plans to develop housing projects in Cu Khoi, Giang Man, Ngoc Lam, Thach Ban, and Disc Giang Wards. The floor price for plots ranges from US$375 to US$812.5 million per sq.m. VNN

240608-Prices of "golden” lands in Ha Noi's Old Quarter remain exorbi¬tant despite the recent freeze in the real estate markets. At a recent bid organised by the Ha Noi Natural Re¬sources and Environment Department's Ha N6i Hous¬ing Management and Development Company, a square metre of land of a house on 48 Hang Bong Street, Hoan Kiem District, was recorded at VND506 million (US$30,600). Similarly, a house on 120 Hang Bong Street is being advertised for sale for VND342 million ($20,700) per sq.m. Investors are still interested in buying property in Old Quarter's streets like Hang Ngang, Hang Dao, Hang Bong and Nha Thu or those along West Lake at prices of roughly VND450 million ($27,200). Land in streets like Ly Thuong Kiet, Tran Hung Dao and Phan Chu Trinh, known as "foreigners streets", were advertising sales at roughly VND250 to 300 million / $15,000-$18,000 per square metre while prices of prop¬erties in riversides of West River and Bay Mau River were fluctuating around VND150 to 200 million / $9,000-$12,000 said the broker. However, brokers said that for land to be truly consid¬ered "golden" to investors, the area must be between 400sq.m to 1,000sq.m, if not more as it needs to be used for the construction of office buildings, high end apart¬ments or commercial complexes. VNN

090708-The PM has approved a master transport plan for Hanoi City, which requires nearly US$18 billion, to realize the vision of making transport in the city modern and easy by 2020 with a radius of 30 to 50km. Up to $8.3 billion will be ear¬marked for the system of urban railways, and $7 billion for build¬ing and upgrading roads in the city. The system of urban railways will play the crucial role in Hanoi City's transport system, linking the core zone with satellite urban areas in the Capital Region like Ha Tay, Bac Ninh, Vinh Phuc, Hung Yen, Bac Giang, and Thai Nguyen. Under the master plan, the urban railway system by 2020 will have 5 main routes. These include Route No. l stretching 38.7km to link Ngoc Hoi, Yen Vien and Nhu Quynh; Route No. 2 extending 35.2km to link Noi Bai Airport and the heart of the city, and Route No. 3 extending2lkm from Nhon station to Hanoi Station and Hoanh Mai Area. The 5th route will be some 34.5km, linking up southern West Lake, Ngoc Khanh, Lang and Hoa Lac, while the 4th route will be a con¬nector of all the other 4 railways. By 2020, it is envisioned that pub¬lic transport means will meet 35% to 45% of demands, while individual vehicles will be restricted. Motor¬cycles will meet just 30% of the total transport demand then. The land area for developing trans¬port facilities by 2020 will be 13,800 hectares, accounting for 15% of the total land area of the city. Roads will require 11,500 hectares, while rail¬way transport will require only 1,100 hectares. SGT

170708-According to the Ministry of Con¬struction's Housing Management Bureau, Ha Tay particularly has more than 220 projects in new residential and urban development. Most of these projects implemented to accommodate residents from Hanoi. VIR

020807-The drawing of the new border lines of Ha N6i early yesterday marked a new milestone in the his¬toric expansion of Viet Nam's capital. The expansion, approved by the National Assembly in late May, makes Ha N6i the 17th largest capi¬tal in the world with a total area of more than 3,300 sq.km. Today's expanded Ha N6i takes in 6.2 million people, double the previous population. Ha Tay no longer exists as a separate prov¬ince, with 2.5 million people. The new capital also sees in its fold Vinh Phuc Province's Me Linh Dis¬trict and four communes of Hoa Binh Province's Luong Son District. VNN

020908-Nearly 70% of the ancient relics in Thang Long – Ha Noi are seriously damaged and have been partly overtaken by residents and agencies. However, it’s impossible to preserve them because of a lack of legal tools and investments, according to the Ha Noi Relics and Beauty Spots Management Board. VNN

110908-By 2020 the country's real estate market will need some 1,300 million square metres of housing, equaling some 16 million apartments. A survey revealed that only 14% of Hanoi's housing is apartments in a city with a population density of 368,000 people per sq.km. VIR

290908-A consortium of Perkins East¬man, Posco E&C and Jina was last week chosen by Prime Min¬ister Nguyen Tan Dung to set up a master plan for Hanoi city's expansion to 2020 and 2050. Previously, three consor¬tiums from America, Japan, Netherlands and South Korea had submitted their proposals to the government : a Japan-Nether¬lands consortium between Arata Isozaki and Metropolitan Archi¬tecture; a South Korea-America consortium between Posco E&C, Perkins Eastman and Jina Architecture; and US-based RTKL. Posco E&C, Jina Architect and Perkins Eastman proposed that only around 40 per cent of the capital city should be reserved for urban development, with the remaining 60 per cent set aside for a green corridor and public spaces. Perkins Eastman is among the top architecture and design firms in the world and Jina has close to 40 years experience in the Middle East and Southeast Asia. VIR

071008-The PM has ap¬proved a plan to mobilise in¬vestments of nearly US$15 billion from both domestic and foreign sources to build urban rail systems in Ha Noi and HCM City by 2020. The Ha N6i network, in¬cluding elevated railway and underground systems, will cost $7.35 billion. Of this, $5.54 billion will be raised from foreign sources and the rest domestically. The Ha N6i network will comprise seven routes - Ngoc Hoi-Yen Vi6n; Tu Liem-Thuong Dinh; south of Thang Long-N6i Bai Interna¬tional Airport; Nhon-Ha Noi railway station; Ha Noi rail¬way station-Hoang Mai; Ha Noi-Ha Dong; and south of Ho Tay (West Lake)-Ngoc Khanh-Lang-Hoa Lac. VNN

091208-The capital city of Hanoi has announced new land prices for 2009. The highest price of VND67.5 million / $3,974 is applicable to some areas in the downtown but the lowest price of rural land is only VND150,000 / $8.83 per square meter. SGT

070109-PetroVietnam is in talks with Hong Kong's Goldstone International De¬velopment and Korea's ABA Group to join a construction project in Me Tri Commune, Tu Liem District. The project includes construction of a 5 ¬star hotel, an office building and a luxury apartment building worth US$450 million in the 1st Phase, and an entertainment park, a com¬mercial center and a tower worth US$1.5 billion in the 2nd Phase. SGTW

120109-PetroVietnam is negotiating with Hong Kong-based GoldStone International Development and Korea-based ABA Corp to co-invest USD$2-5 billion for a 25 hectare complex comprising a 5 star hotel, high class apartments, an office tower, retail centre and entertainment park. The hotel, apartments and an office complex on 3.7ha will be built in the first USD$450 million phase. The complex comprises a 350-500 room hotel, 700 high quality apartments and 30,000 sqm of grade A office space. The retail centre and entertainment park will be finished with total investment capital of USD$1.5 billion. The project's site is bordered by one of Hanoi's main arterials linking the new Hoa Lac development area with Hanoi. It is next to the National Convention Centre and My Dinh National Sports Stadi¬um. VIR

190109-Ha Noi authori¬ties expect to collect US$440 million from various land use fees and taxes in 2009 of which $394m will come from land-use fees, $283m from rentals, and the remaining $11.8m from registra¬tion fees and property taxes. Under the city's land-use plan, over 5,000ha would be allocated in 2009 including 1,000ha for industrial zones, transportation and other urban infrastructure. In 2008, the city collected only $179 million from auctioning 38.2ha ie 470/sqm. Of that total area only 8.3 ha auctioned for about $10,638/sqm were in old Ha Noi. In the former Ha Tay areas recently an¬nexed to the city, 11.4ha were auctioned for a total of $387/sqm, while an¬other 18.47ha were auc¬tioned for $236/sqm in Me Linh District. Parts of what used to be Ha Tay Province have val¬ues that have risen by 2-3 times over cur¬rent values under a plan re¬cently issued by the Ha Noi's People’s Committee. VNN

090209-Hanoi City has regulated that developers of hous¬ing projects in some districts pay a construction fee equivalent to 0.5% of the total building cost. Investors in other localities and outlying districts will be subject to 0.2% and 0.1% respectively. SGT

120409-New regulations for land rentals were introduced by the Municipal People's Committee on Thursday. The annual rent on land used for production, transport work and business is 0.5% of its value. It will be 0.7% for other services, including commerce, tourism and banks. Production, transport and business companies renting land in Soc Son, My Duc, Ba Vi, Quoc Oai and Thach That districts and Dang Xuan, Yen Binh, Yen Trung and Tien Xuan communes will also pay 0.5% while other businesses in the areas will pay 1.2 to 1.5%. VNN

140409-The Hanoi City government has started work on a housing project for low-income people on the CT19A land plot in Long Bien District's Viet Hung new urban area. The project is to be developed on over 24,000sqm with 500 out of 800 condos to be leased. Its units will measure from 35-60sqm each in 6 story buildings. Hanoi authorities recently pro¬vided 3,000 low priced houses for civil servants but still cannot meet the housing demand of around 86,000 low-income earners in the city. Hanoi plans to develop a dormitory project in Ha Dong District next year. SGT

030809-As of the end 2008 some 381 projects covering a total area of 4,055ha, or 12.5% of Hanoi’s total assigned land were re¬ported to be progressing slowly. This number includes 294 projects that were sluggish in land clear¬ance and 48 projects that hadn't done any investment activities over 12 consecutive months. The last 39 projects were 24 months behind schedule. In the first 6 months of 2009 Ha Noi has revoked 14,960sqm of land from 6 projects for leaving the land unused for too long. VNN

200809-Cau Giay Service Trade & Investment JSC will build a complex of commercial center and offices in 25No. 38 story blocks and a 50 story luxury department store worth over VND3.5tr / $169.5m in Cau Giay District. SGT

121009-Hanoi has approved the auction of unused or misused land plots owned by 8 state run groups in the city in an effort to recover VND2tr / $112m the city budget this year. SGT

201009-Trung Thuy Group started work on the 27 story office commercial center apartment building complex The Lancaster Hanoi worth $36.4m in Ba Dinh District providING 50,000sqm of floor areas and 250 high class apartments with floor areas of 50-250sqm. SGT

211009-Coralis Vietnam Co today will re¬start the Hanoi City Complex project worth over US$400 million and covering about 1.4 hectares in Hanoi's Ba Dinh District. Once operational, the 65 story tower will offer over 250,000sqm of floor areas. SGT

231109-Hanoi government has submitted to the city's People's Council the land price list for 2010, suggesting the highest rate at VND81m / $4,531sqm for land at prime sites. The new prices are up by 20%-40% against current levels. SGT

010310-Construction department figures show that Ha Noi has 970 State owned French¬ style with 804 misused. VNN

210610-Buildings higher than 9 storeys will not be allowed in the Ba Dinh political centre, the Old Quar¬ter and the Ho Guom, Old Citadel and Army areas. Five other areas will also have strict limitations on con¬struction, according to the proposal. Last year authorities reviewed a total of 223 on-going high-rise con¬struction projects in the four central districts of Hoan Kiem, Hai Ba Trung, Ba Dinh and Dong Da. The Prime Munster decided to stop all high-rise work in these areas in De¬cember last year. Capital city authori¬ties were also asked to stop granting licences for high-rise construction projects in Hoan Kiem, Ba Dinh, Hai Ba Trung and Dong Da districts. SGT

260610-Land prices in some areas in Hanoi have increased by 35¬-40% while the number of successful transactions has increased by 25-30% in comparison with the end of last year. Land plot prices in some residential projects belonging to South An Khanh and Glex¬imco urban area projects in Hoai Due district ranged from $1,315-$1,579sqm in 2009 but rocketed up by more than 40% with¬in the first 5 months of 2010. Land in Quoc Oai district ranged from $526-$631sqm by the end of last year, but currently sold at $1,315-$1,579sqm. The land price in the east¬ern areas is rapidly increasing as Gia Lam district land is offered from $1,579-$2,105sqm, while it was only around $1,315sqm by the end of 2009. VIR

270710-The future Ha Noi would include the city centre; 5 satellite cities and 3 ecological cities. VNN

020810-Hanoi's population figure of 7 million is a close second behind HCMC's 8 million, but Hanoi can only handle 3 million people comfortably while construction of new houses to fill that gap is lagging. Compared to HCMC current accommodation supply in Hanoi accounts for 1/3rd. There is some 1.6bn sqm of housing space nationwide, in which half the total number of families lived in 60sqm apartments, the rest in small houses with under 15sqm per person. Some 2.5% of the country's population live in housing with under 5sqm per person. Compared with 2009's last quarter, this year's property prices in Hanoi reached sky ¬high with land and housing prices up by 15-20%. At some locations, prices increased 30-40% compared to the last quarter of last year. Outstanding loans for property in Hanoi accounted for 16% of property loans nationally while HCMC accounted for 50% of the total. SGT

221110-Land prices in neighboring areas of Hanoi City have increased by 10% to 20% since October. SGT



Date : Sunday, 04 October 2009
Category : Realty - Hanoi Offices


CHRONOLOGICAL ORDER : Scroll to bottom for latest info

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180409-Established downtown properties like Ha Noi Tower, Trang Tien Plaza, Vincom City Tow¬ers, Opera Business Centre and Pacific Place are all reporting full occupancy. With the new office supply, rents have dropped and land¬lords have been competing to lock in large tenants. With new supply from BIDV Tower looming, Grade A rents ended the 1st Quarter of 2009 down 8% from the end of 2008 standing at US$49/sqm. Meanwhile, asking rents for Grade B office space had also dropped to under $33/sqm/month in the 1st Quarter. Actual rents were likely even lower than asking rents as land¬lords applied promotion programmes to attract custom¬ers. While leasing activity re¬mained slow in the 1st Quarter, there has been strong interest in some new Grade C buildings in Nguyen Phong Sac. VNN

200409-Office rent in the capital city of Hanoi witnessed a continu¬ing decline in the 1st Quarter of this year with Grade A office rents dropped 8% to US$49/sqm compared to late last year. Meanwhile, Grade B saw 5% dropped to US$33/sqm. Due to financial problems, cus¬tomers paid more attention to Grade C office buildings mostly on Nguyen Phong Sac in Can Giay. Hanoi may have some 100,000sqm more of Grade A and 13,000sqm more of Grade B office space this year. SGT

280409-Handico started work on the 33 story Handico Tower, a complex of office building and commercial center worth VND732 billion / $41m with total floor space of about 45,000sqm in Me Tri Ha township in Hanoi's Tu Liem District.

050509-Ha Noi may get an additional 1.1 million sqm of office space by 2012. SGT

290609-The CEO Tower on Pham Hung will offer 13,000sqm of office space next month. The CEO Investment JSC said it had rented a 1/5th of the tower's total area. By the end of the year or the early next year Ha Noi's market would have an extra 160,000sqm of office space on Tran Hung Dao, Lang Ha and Tran Duy Hung. SGT

030709-Landlords are more concerned with filling office space than look¬ing for the best rental rates, as cor¬porate tenants are seeking aggres¬sive cost reduction plans. Landlords were keen to secure reliable incomes, offering lower rents, capital contributions and free rent periods to attract quality tenants for longer leases. The CEO Tower in Hanoi's Pham Hung road is offering rental prices of $25 to $40/sqm exc 10% VAT - lower than the levels the developers and marketing agents had planned last year. "Our main concern now is fill¬ing the building with tenants, hopefully in 3-5 months, rather than looking for the best prices. We have leased 20% of the building's space including 2 long-term tenants." For long-term tenants, defined by fixed 48-year contracts, the company offered a price of VND27m / $1,500/sqm excluding tax. "Strategic investors who are financially strong will find this deal more attractive than investing in condominiums, as they can buy off a whole floor at less than VND15 billion ($830,000) and earn substantial profits just by leasing out at the same price that we're offering." The tower will provide 13,000sqm of office space for lease, spanning across 27 floors and 2 basement floors for parking. Two other grade-A buildings were expected to come online this year downtown, including Capital Tower on Tran Hung Dao street and BIDV Tower on Tran Quang Khai street, with a combined stock of 46,000sqm. Proposed rents for these two buildings are expected to be between $50-$60/sqm per month. Vacancy rates in Hanoi's grade-A office buildings were around 3% but the level in grade-B buildings had reached 20% as market supplies had increased over the last couple of months. VIR

120709-Work on the $29.1m Hoang Gia tower including a trade centre, high-class offices for lease and apartments, has begun in Ha Dong District by SME Hoang Gia JSC. The tower block will cover an area of 1,200sq.m, and will have 38 storeys. The building will include supermarkets and offices for lease on the first 5 floors and 270 high ¬end apartments from floors 6-35. VNN

220709-Office rentals in Hanoi have dropped 15-20% since the beginning of 2009 on new deals and lease renewals. The high supply pipeline for this year may result in either static or reduced rentals and lower occupancy rates. The current average grade A rentals in Hanoi's Hoan Kiem dis¬trict were approximately $50/sqm - down from more than $60 in previous years. VIR

270709-Grade B office rent in Hanoi is down by 19% after space in many new buildings in the city has been offered at low prices. Many investors are expanding promotion programs to keep tenants and lure new ones. Grade A office rent also fell by 5.6% to around US$46/sqm/mth. Plaschem Plaza was the only grade B office building launched in the 2nd Quarter. SGT

290709-Construction of a 4,500sqm FLC Landmark Tower project will begin in the My Dinh 2 urban area, west of the city. The 32 floor tower will include offices and high-end apartments. The project investor is Ninh Bac financial investment company. VNN

270709-During the 2nd Quarter rents of Grade A office space fell by 5.6% to an average of US$46/sqm while those of Grade B office space dropped by 19.1% to $26. The drop in Grade B rents comes from the reduced rents of buildings launched in 2009 which, when excluded, leaves only a 7.7% drop in rents for stabilised grade B buildings." Grade B vacancies also rose from 5% during the same quarter a year ago to 22.1% even though only 1 new Grade B building, Plaschem Plaza, appeared on the market. Grade A buildings, mean¬while, saw a 2.84% rise in vacancies. VNN

260809-Space 21 Fonexim Co. Ltd a JV between Space 21 of South Korea, Space 21 Singapore and Northern Food Corp under the Ministry of Industry and Trade, started construction on Office Building and Trade Centre at 203 Minh Khai in Hanoi's Hai Ba Trung District. The complex worth $19m will cover 3,240sqm including a 9 story and a 17 story block with total floor space of about 20,000sqm. SGT

200809-Licogi 13 JSC started a $20.8m 25 storey building of high¬ class offices and apartments for lease located on Khuat Duy Tien, Thanh Xuan district. The building, to be constructed on 3,364sqm would have offices for lease from floor 3-15 while the rest, would be built as high class apartments for leasing. VIR

300909-Sentinel Place, a 9 floor building on Ly Thai To will provide approximately 6,500sqm of standard office space and open early 2009. VNN

141009-Hanoi’s total office stock would have increased to 600,000sqm by the end of 2009 with approximately 175,000sqm entering the market during 2009. Major buildings to come online this year include BIDV Tower with 23,000sqm, Capital Tower (20,000sqm) and CMC Tower (12,000sqm). Early 2010 will see the opening of Charmvit Plaza with a gross floor office space of 54,000sqm. CEO Tower has leased around 70% of its 20,000sqm since its opening one month ago, while BIDV Tower has leased more than 50% of it space at $45/sqm excluding VAT. But new office supply in Hanoi would triple in the next 3 years and if all stock under construction is completed, vacancy levels could rise to above 30% across Hanoi. The existing Grade A proper¬ties in Hanoi are primarily locat¬ed in Hoan Kiem district and have high occupancy levels. However, the landlords have reduced rents since 2009 to retain tenants which are typically down 15-20% on the start of 2009. Based on the average rent of $50/sqm this repre¬sents an average current Grade A rate of $40-45/sqm. Properties in Cau Giay dis¬trict command lower rentals than Hoan Kiem district. Average rents are between $20-30/sqm. In these districts, it can be antici¬pated that Grade A properties close to Pham Hung will command the highest rents. Demand for new office space has declined steadily over 2009 with the majority of take ¬up coming from lease renewals and relocations to less expensive space. VIR

161009-Landlords have reduced rents for Grade A and B offices by 6%-9.6% in the 3rd Quarter and at the same time offered more incentives to tenants. For example, the monthly rent at Pa¬cific Palace, Sun City and Vietcombank Tower was offered at US$48-60/sqm in the 1st Quarter but dropped to US$42-52/sqm in September. The capital city will see more stock on the market toward the end of 2009 with more than 60,000sqm in 5 buildings online in the 4th Quarter. SGT

171009-Rents for Grade-A office space in Ha Noi fell 6% during the 3rd Quarter while rents for Grade B space de¬clined 9.6%. The de¬creases, however, helped slow the rise in vacancies, as renters took advantage of the lower rates and many seized the opportunity to centralise operations and fix office costs. The Ha Noi market was also soon to absorb new space, with 5 new projects representing 60,000sqm of new office slated to come on the market shortly. VNN

261009-Rents for grade A and B office buildings are down by 4.5% and 2% respectively. However, the rent for grade A is slightly up by 1% while new suppliers revised down grade B offices by 9% compared to 2nd Quarter. SGT

281009-The Grade A Sentinel Place on Ly Thai To in Hoan Kiem will provide some 6,500sqm of office space in early 2010. In the 3rd Quarter 3 new office buildings namely Plaschem, CEO Tower and Handiresco Towers came on line increasing the total supply of Grade A, B and C offices to 493,000sqm. The average rent for Grade A and B office buildings continued to experience a downward trend but the average occupancy rate for Grade A picked up 1% quarter on quarter while that for Grade B dropped by 9% due to the influx of new supply. Meanwhile, Grade C posted nearly 80% in the occupancy rate with US$17/sqm the average rent. Over 1.1m sqm of office space in all grades, from around 60 projects, is expected to enter the market in the next 3 years. SGT

311009-The 3rd Quarter results show not all is bright for the office sector though rents show signs of bottoming out. “The signs of bottoming out do not mean a recovery. We are not suggesting anyway that the market will recover to where it was for a long time, but we are suggesting that rents at some of the projects stop falling and possibly reach the bottom." The office rent dip in the 3rd Quarter averaged 2.9% across all grades. The quarter saw new net absorption of some 50,000sqm with major contributions from Grade A and C buildings. Overall vacancy stood at 17.5%, down 0.6%. In Hanoi, landlords had to reduce the rents of Grade A and B offices for lease by 6-9.6% in the 3rd Quarter. The capital city will see more stocks toward the end of this year, with more than 60,000sqm of 5 buildings to go online in the 4th Quarter. SGTW

031109-Supply on rent offices would increase in Tu Liem and Cau Giay by 2011. Grade A offices were mainly located in Hoan Kiem and Ba Dinh districts with a total floor area of 135,000sqm in 12 build¬ings. By the end of 2009 the total would jump to 600,000sqm including 23,000sqm in the BIDV Tower alone; Plaschem in Long Bien District; CEO Tower in Tu Liem District; and Handiresco Tower in Ba Dinh Dis¬trict. Rentals and available office space reduced slightly in the 3rd Quar¬ter compared with the 2nd Quarter but demand for of-fice space should increase in the last quarter of this year and in the future. In next 3 years 1.2m sqm of office space in 60 projects will come onto the market, in¬cluding 145.000-345,000sqm in 2010. VNN

211209-The western area of Hanoi City is expected to see a huge supply of high-quality office space for lease due to many new projects in My Dinh, and Tu Liem districts. Investors plan to offer low rents to lure tenants. SGT

221209- Office tenants are moving to the west of the capital, enticed by lower rents and beater infrastructure. Most office tenants are currently occupying buildings in the central business districts of Hoan Kiem, Ba Dinh and Hai Ba Trung. However, as rents in these areas stay high, tenants are looking to cut costs, moving to the more western areas of Cau Giay and Tu Liem districts. The full occupancy of the 27fl CEO Tower within three months of its open¬ing illustrates this trend which is located on Pham Hung in the My Dinh area, after the Viglacera Tower. My Dinh is quickly becoming a new commercial centre. Local and foreign developers have pursued this trend and are pushing the construction of projects like the CMC Tower, opening in December 2009, the Grand Plaza Hanoi, dpening in January 2010 and the Indochina Plaza Hanoi, opening in 2011. It is estimated that over 1.1m sqn of office space in all grades from around 60 projects in Hanoi is expected to enter the market in the next 3 years, mainly in secondary and suburban districts, with the largest supply in Tu Liem and Cau Giay districts. An overabundance of office space is predicted to make office rents lower over the next couple of years. Meanwhile, other new buildings in the city centre such as BIDV Tower and Capital Tower still have vacancies. VIR

210110-Monthly rentals are expected to fall further with an additional 150,000sqm to become available this year. Rents for Grade A office space in the city fell by 2.3% to US$43.71sqm and Grade B rents fell by 1.18% to US$25.89sqm at the end of 2009. SGT

200110-The occupancy rate of grade-A office space this year will double compared to 2009. "This is because the demand is increasing as international schools and domestic and overseas financial compa¬nies are seeking large spaces. The creation of a dual market in Hoan Kiem and the western districts and the increasing rivalry between landlords is likely to put further downward pres¬sure on rentals." VIR

280110-New supply of office space that has gone into operation since the previous quarter in 5 districts in the city created a significant increase of some 600,000sqm. New supply includes BIDV Tower and Capital Tower with some 45,000sqm of Grade¬ A office space. The market has seen occupancy across Grade A, B and C soften further and continue its downtrend since the last quarter, when it recorded a significant decline of 18% in the occupancy rate of Grade A office. The average rent for all grades was about US$29sqm in the last quarter. However, the average rents of Grade A and Grade B office premises have seen a continuous fall in the last 5 Quarters, a reduction of 18% compared with the highest rental rate of in the 4th Quarter of 2008. Demand for office space is ex¬pected to slightly increase this year due to positive signs of the recov¬ery of the economy, the return of foreign companies to Vietnam and expansion among local companies. It is projected that an additional 170,000sqm of office space will be launched into the market this year, and nearly 1.5m sqm of office space of all grades from around 100 projects are expected to be ready for tenancy in the next 4 years. SGT

050210-The PVI Tower in Ha Noi's Cau Giay 27-storey office project covers nearly 5,000sqm and is expected to cost US$50m. VNN

220210-It is predicted that there will be downward pres¬sure on rents due to the likely over-supply of office space in the coming time with a projected additional 170,000sqm of office space launched into Hanoi's of¬fice market this year with nearly 1.5m sqm of office space of all grades from around 100 projects expected to be ready for tenancy in the next 4 years. SGT

060410-There is now about 610,000sqm of office space in Ha Noi – up 3.5% compared with Q4 2009. Average occupancy across all grades and districts slightly increased to about 85% which was an increase of about 2% quarter on quarter. Occupancy rates of Grades B and C increased noticeably when compared with Q4 2009. Otherwise, the average rent for all grades and districts in Q1 2010 saw a decline of 3.6% against Q4 2009, achieving around US$27/sqm mth. Based on the initial positive impact of the regulation that bans the use of apartments for office space or trading areas, it appears the Grade C market will continue improving throughout the remainder of the year. In the next 4 years, pearly 1.9m sqm of additional office space from about 120 projects are planned to come online, which will result in an oversupply. SGT

140410-The market saw a slight decrease of 3.5% quarter ¬on quarter to US$42.16sqm for Grade A office rent. Mean¬while, Grade B office remained stable with rents averaging out at US$26.77sqm. In the 1st Quarter, there was a Grade B project named Capital Tower with some 21,000sqm joining the market and vacancy in Hanoi market totals around 80,000sqm, the biggest number since 2004. However, more projects due to join the market this year will cause supply to far outpace demand, and vacancy in the market will increase up to 150,000sqm by the end of this year. SGT

200410-In the next 4 years nearly 1.9m sqm of additional office space from about 120 projects would come online in the capital city. Some 95% of new space would be out of the central business district (CBD). If only half of the above 1.9m sqm was realised, the stock would still be too big. Average occupancy lev¬els across all grades and dis¬tricts had increased slightly to about 85% which was an increase of about 2% quarter-on-quarter. The average rent for all grades and districts this quarter recorded a decline of 3.6% against the last quarter, ending at around $27/sqm per month. Grade A rents showed a modest increase while Grade B rents had reduced nearly by half compared with late 2009. As of last month, Hanoi was home to more than 610,000sqm of office space, a slight increase of 3.5% compared with the 4th Quarter of last year, contributed by 86 office buildings across all grades and 10 districts. The two latest buildings, the Hanoi Tourism Tower and Sky City Tower, provid¬ed an additional 17,600sqm to the stock this quarter. VIR

080510-Average rents have reduced continu¬ously since 2008 from around $60-$45sqm for Grade A offices and $37-$22 for Grade B space in 2009. In the 1st Quarter of 2010 Grade A rates in Hanoi reduced by 3.55% com¬pared to the last quarter of 2009 to $42sqm. Rents for Grade B space remained at $25sqm. Vacancies are 9.26% for Grade A buildings and 21.56% for Grade B. The market will receive a huge volume of space in 2010 and 2011 especially in the west, with big projects such as Keangnam Hanoi Land¬mark Tower, Grand Plaza and Crowne Plaza coming online. The oversupply will be seen strongly at the end of 2010 with more than 150,000sqm available. VIR

150510-It is hard to say whether or not there is an over-supply of offices for lease in the capital's western area but office buildings in the area along Pham Hung, Nguyen Phong Sac and My Dinh streets have provided a significant supply to the mar¬ket. The buildings have contributed a considerable per¬centage to the total grade A area of 170,000-180,000sqm this year while the figure in 2009 was 116,000sqm. Along Nguyen Phong Sac alone, over 20 buildings have come into operation. The rental price in the city's central area is currently around US$47sqm while the price in the western sub-market is hover¬ing between $13-17sqm. Flexible contract structure and im¬proved infrastructure have pushed the number of tenants up 20% to 25% in the 1st Quarter. VNN

200510-Office rent in the capital city of Hanoi had decreased in the 1st Quarter of this year due to abundant supply. The market saw a slight decrease of 3.55% quar¬ter-on-quarter to US$42.16sqm for Grade A office rent. Meanwhile, Grade B office re¬mained stable with rents averaging out at US$26.77sqm. Vacancy in Hanoi market totals around 80,000sqm, the biggest number since 2004. However, more projects due to join the market this year will cause supply to far outpace de¬mand, and vacancy in the market will increase up to 150,000sqm by the end of this year. Landlords at all grades of office have revised down rents to meet the market demand, but more sup¬ply will continue to put greater pressure on office rent in the com¬ing time. Demand for office space is expected to increase slightly due to positive signs of the recovery of the economy, the return of foreign companies to Vietnam and expan¬sion among local companies. An addi¬tional 170,000sqm of office space will be launched into the market this year, and nearly 1.5m sqm of office space of all grades from around 100 projects in the next 4 years. SGTW

200610-Hanoi and Ho Chi Minh City are report¬ed to have the highest office and accommodation leasing costs for foreigners in ASEAN countries in a recent annual report in early 2010 by Japan External Trade Organisa¬tion. The rent rate was Hong Kong ($72.8), Mumbai ($70.8) and Shanghai ($64.8), Singapore with $46.4 and Bangkok with $19.8, Seoul ($49.8) or New Delhi ($35.8) and Beijing ($57.2). Hanoi ranked expensive with the rent of $42 per square metre. VIR

020710-Prices of grade-A offices for lease in Hanoi has a slight decrease of 3.5% year-on-year, standing at US$42.16/square meter/month on average. Those of grade-B of¬fices are about US$26.77/square meter/month on average. It is estimated that the area of vacant offices for lease in Hanoi is about 80,000 square me¬ters, the biggest number since 2004. SGTW

100710-Hanoi's office for lease market was stable compared the 1st Quarter with average occupancy increasing to nearly 87%, or a rise about 2%. Meanwhile office rent saw a decline of about 4% compared with the 1st Quarter. There are some 640,000sqm of office space in the capital city of Hanoi, con¬tributed by 95 office buildings across all grades, in which 9 more office build¬ings entered the market in the quarter providing about 28,600sqm of additional office space. Office take-up by Grade A increased steadily while Grade B continued to decrease compared with the previous quarter. In the next 4 years, nearly 1.8m, sqm of additional office space from about 130 projects would come online, most of which is outside the central business districts. Oversupply of office space is an¬ticipated to significantly affect the office market in the next few years. Rental rates are expected to remain stable for office buildings in the CBD with greater competitive pressure on rents in the area west of Hanoi because a large new supply is to be launched into the market. VNN

140710-Grade A office occupancy rates increased as the take-up space of space in the 2nd Quarter increased to more than 8,400sqm, com¬pared to only 1,600sqm in the previous quarter. Average occupancy of office in all grade increased slightly to 86.7%, an increase of about 2% compared with the 1st Quarter. However, rent was still on the way down, falling about 4% compared with previ¬ous quarter. Buildings such as BIDV and Sentinel Place are see-ing healthy demand and are now more than 50% full. In the western districts the sup¬ply pipeline was large, however the space was split over a relatively small number of projects. Landlords in the west¬ern area are under pressure due to the shear the size of projects. Hanoi has 112 office for lease projects ranging of A, B and C grades with total supply of more than 600,000sqm. To 2013 roughly of 813,000sqm of new supply will come online to the Hanoi market. VIR

280710-It is expected said that by the end of 2011 Hanoi's total office supply will hit 1.2m sqm. Of this, the South Kore¬an Charmvit Group-backed project contributed 54,000sqm in July, while Keangnam will offer 94,000sqm when it comes online in 2011. These 2 projects together will occupy approximately 12.3% of Hanoi's office market. VIR

061010-Ha Noi' s office occupancy rate average increased to 91% - a 4% jump on the 2nd Quarter. SGT

211010-The office segment in 3rd Quarter witnessed a dip in occupancy and rent from the preceding quarter. Average rent was reported at US$26sqm, a slight drop of 0.8% from the 2nd Quarter. Demand for office space had slid as more companies in the city had entered the property development sector, with 102 build¬ings offering around 717,000sqm of office space and there would be an extra 1.3m sqm of office space from 99 building projects going up on the market in the next 4 years. SGT

211010-After a lengthy downturn, occupancy rates and rents for Grade B offices have significantly increased. Most net absorption was the 18,000sqm in the Grade B Capital Tower, which has over 85% occu¬pancy, up 1.5 times from the 2nd Quarter. Grade B average asking rent was $28.20sqm, up 6.74% quarter on quarter and about 7.6% on-year. Vacancies fell from 18% to 12.21% on quarter. The occupancy rates of the segment was about 85%. Grade A building rents have fallen but remained high at over $40sqm. In the near future, the Grade B segment would have an addition of more than 100,000sqm in office space from projects like Viet A Tower, Newtatco and those at No.44 Hoang Hoa Tham street and No.252 Hoang Quoc Viet, and there will be 1.3m sqm of office space from 99 projects within 4 years. VIR



The office market in the capi¬tal of Hanoi, especially in the western part, is projected to see an oversupply in the coming time given a long list of office development projects set to enter the market this year. Supply surpasses demand. Market observers have projected Grade A office supply will double this year and next, leading to a surplus supply. Among the office projects that will soon join the market, Char¬mvit Tower will supply the market with 45,000sqm of office space, and Capital Tower with 23,000sqm. Office developers in Hanoi's cen¬tral business districts and western part, will face greater pressure as there will be an extra 150,000-200,000sqm of office space available on the market this year. Hanoi's office market had an additional 32,600sqm of office in the final quarter of last year, the biggest monthly figure since 2007. Grade A office accounts for some 60% of that number thanks mainly to BIDV Tower and Cham Vit Tower. The market witnessed stable office rents with the rate for grade A offices put at US$41-42 per square meter and that for grade B at US$27. The office market has seen a significant improvement as the rate of real take-up space increased during the past three quarters; however, the Hanoi office market would see existing office buildings facing more pressure in the short term given new supply from big office buildings such as Crown Complex and Keangnam Landmark Tower. SGT

110111-Hanoi's office-for-lease market showed positive recov¬ery signs in 4th Quarter of 2010 with net absorption of 32,600sqm of Grade A and B office space, the highest rate of quarterly absorption since 2007. About 58% of space absorbed this quarter was taken up in Grade A buildings, mainly in BIDV and Charm Vit Tower, which were new offices gone into operation last year. In total, around 72,000sqm of office space were leased out across the city last year. The increase in office demand has helped decrease the vacancy rates in Grade A office buildings from 25% to 18%. Without taking into account Charm Vit Tower and BIDV Tower, Grade A vacancies remained stable at about 3% in last two years. Vacancy rate in Grade B buildings almost unchanged, at 15%. More than 20% of enquiries last year requiring space of more than 500sqm compared to 12% in 2009. Most enquiries were for 50-250sqm while those asking for 250-¬500sqm space account for 15%. In the Grade A segment, while the asking rents of some projects decreased, the rents of some buildings that are under new ownership or have undergone reno¬vations such Vincom and Central Building strongly increased their asking rents. Average asking rents were around $41-$42sqm. Grade B segments showed the remarkable recovery with the average asking rents were around $27-$28%, an 11.83% increase year on year. However, there will be a significant supply added to existing stock in 2011 so existing projects with vacant space would face competitive pressures from the big projects such Crown Complex and Keangnam Landmark Tower, Indochina Plaza that will be opened this year. VIR

160211-From about 70,000 square metres in 2007, Hanoi now has more than 740,000sqm of office for lease. In the next four years, approximately 1.5 million square metres of office space from approxi¬mately 125 projects is planned to enter the market. In 2011, the total new office supply may equal half of the current supply, VIR

Date : Sunday, 04 October 2009
Category : Realty - Hanoi Resy


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261209-In Hanoi from the end of 2009 upto 2012 it is estimated that there ¬will be at least 10,000 apartments launched. Of those, nearly 34% will be in Tu Liem district and approximately 30% in Cau Giay district. VIR

Units launched compared to other cities
City Last 5 years 2009 Last 2 months
Bangkok NA 3,912 3,200
Singapore NA 18,000 6,520
HCMC 43,000 6,200 3,504
Hanoi 36,000 8,000 2,273

221209-Hanoi's residential market has become dormant after a recent transaction frenzy. Although no developers had announced reduc¬tions in launching prices, the ask¬ing prices in the secondary mar¬ket, where buyers resell proper¬ties, had dropped significantly. He cited Mulberry Lane, Indochina Plaza Hanoi and Cipu¬tra as typical cases where asking prices in the secondary market had fallen remarkably. In October, when CapitaLand Hoang Thanh launched the first 330 out of 1,478 units at $1,350-¬$1,70sqm in the Mulberry Lane project in Ha Dong district, buyers quickly snapped up all the apartments and quickly resold them for profits of around $10,000 a unit. Now, buyers have not been able to resell these apartments for even small profits. Indochina Plaza Hanoi, devel¬oped by Indochina Land Hold¬ings, is another case in point. Around 90% of its first 183 units were sold out within a few days in early November at prices of $2,600-2,900sqm. These apartments were then resold at a difference of around $10,000 per unit compared to their original contract value. Now, buy-ers are asking for a lower differ¬ence of $2,000-3,000 but few transactions have succeeded. Asking prices for land and apartments in several projects had fallen 15-20% over the last few weeks. In October and November over 2,273 apartments launched. Almost all were quickly sold out. Buyers were mainly investors who had been active and still regarded real estate as a good place to make a profit. However, develop¬ments that had been fully regis-tered or taken up buyers were merely morally obliged to proceed with the sales and purchase agreements, and not contractually bound. Therefore, the conversion from registration to actual sales might not be fully realised. A project can be registered by thousands of buy¬ers, but the number of real buyers cannot reach the figures revealed by developers." In the last couple of years residential projects in Hanoi often asked buyers to advance a deposit of VND100m / $6,500 and make a first payment tantamount to at least 30% of the contractual value. These high payments helped developers see the real buyers. However, in recent launches, it was much easi¬er for buyers to trade apartments, as they were asked to advance a deposit of just VND50m. Or, if they were obliged to make a first payment, they had to pay just 10% of the contract's value. That was why more people were engaged in apartment trading, and could quickly earn profits after a quick reselling. "Speculators rushed into the market.” Ha Dong by next January would have at least 12,000 units offered in both the primary and secondary markets and secondary supplies in Hanoi would be up to more than 30,000 units and new primary supplies per year up to 2012 were expected to be about 10,290 units. VIR

221209-Malaysia-backed conglomerate Ber¬jaya's launching of its first residen¬tial project on the northern bank of Hanoi's Red River last week reflect¬ed the attractiveness of real estate development in the area. Berjaya Leisure, a subsidiary of Berjaya Land Berhad, in a joint ven-ture with Hanoi Housing Investment and Development Joint Stock Co No 12 last week launched the Canal Park residential project. Canal Paris is part of Thanh Ban Garden City, in Long Bien district, which covers 32 hectares along Ring Road No 3, connecting Thanh Tri Bridge and Hanoi's new develop¬ment area. The Viet¬nam Star Group - which planned to set up the $3 billion Ca Lo urban development area in the northern bank of the Red River, said that the area had become more attractive to investors. The main reason for this attrac¬tion was because Hanoi People's Committee was setting up a masterplan for the area. Upgraded infrastruc¬ture in the area was another attrac¬tion, with many new roads and 2 new bridges crossing the river : Vinh Tuy and Thanh Tri bridges. The area over the river is just less than 10 kilometres from the city cen¬tre. This area has a lot of potential for real estate development because it has great links to other industrial focus centres of the northern provinces. The concern of passing over the river still exists. However, the price and quality of apartments in this area is a big advantage : apartments in projects over the Red River are being offered for prices between VND19-22m / $1,028-$1,190sqm while the price was VND40-45m / $2,163-$2,434sqm along Pham Hung street or VND35-37m / $1,893-$2,001sqm along the Lang-Hoa Lac road. The area is now home to residen¬tial projects Viet Hung, Dang Xa and Sai Dong new urban areas and Thanh Ban new city. The Savico Plaza Hanoi is being developed at the cost of $25m. VIR

040110-Hanoi's Department of Natural Resources and Environ¬ment will auction 45 land plots for villa building at the starting price of VND15m / $811sqm in Sai Dong New Urban Area in Long Bien District. There are 170 bidding files registered for the auction. The township covering 42 hectares is developed by Hanoi Construction Co. No. 3 under Hanoi Housing Development and Investment Corp. SGT

200110-Capita¬Land started pre-sales activi¬ties for 1 of the 5 towers at Mulberrv Lane - its first project in Mo Lao - and all 330 units were fully booked in less than two days. Then units were booked at prices between $1,350-$1,700/sqm. SGT

270110-Some 12,650 apartments in Hanoi are expected to come on stream from now to 2012, of which around 2,000 units are to enter the primary market in the 1st Quarter of this year. Demand for housing is expected to remain high in the medium term and demand for Grade B and C apart¬ments, which are more affordable for the majority, are predicted to be higher than that of Grade A. SGT

300110-The price reduction has happened in the western area of Ha Noi, a real estate hotspot. The Duong Noi apartment complex in the capital city's Ha Dong District is selling at base prices, after it had gone up by VND100 million (US$5,400) earlier last year. The Mulberry Lane Ha Dong project has cut prices by $30-$50 per square metre, MegaLand by $30-$40 per square metre, Bac An Khanh by $30-$40 per square metre, and Usilk-City $50-$70 per square metre. Real estate marketing agen¬cies in the west of Ha Noi said transactions in the area had fallen by 90% in compari¬son with the period between August and October 2009. There are as many as 80 new projects under development in Me Linh District, half of them to build residential complexes, garden homes and villa. In the east of Ha N6i, several major projects like the Eco Park, Villa Park, Viet Hang, Dang Xa, Sai Dong and Thach Ban are under construction. VNN

280210-The construction of a series of large apartment buildings last December signaling an in¬crease in demand. The most noteworthy are six apartment buildings in the Viet Hung new urban area and a high¬ class apartment building in Ha Dong. To reduce population density in the city centre, Ha Noi au¬thorities plan to build satellite urban areas in Soc Son, Me Linh, Quoc Oai, Xuan Mai and Mieu Mon in the near future. VNN

040310-It is estimated that 12,650 apartments will come on stream in Hanoi from now to 2012 of which around 2,000 are to enter the primary market in the 1st Quarter 2010. SGTW

140310-The first 116 apartments (out of 512) in the Hoang Quoc Viet Residentials apartment block in the Co Nhue new urban area were officially released onto the market last week at starting price of US$1,300sqm and 70 apartments or 60% sold immediately. The Sing Hong Park View on Thai Ha will include 2 apartment blocks and a 10 storey office building with apart¬ments of 75-185sqm when it is finished in 2012 is expected to be sold for $2,000-2,200sqm. One low-cost apart¬ment developer plans to launch 700 low cost apartments in the Me Linh area in the second quarter of this year with an expected price of VND10, / over $500sqm with areas of 55-85sqm. VNN

030410-In the next 2 years Hanoi's residential market will have a huge supply with about 12,650 units going into operation, in which 2,040 apartments will be offered in the primary market in this quarter. VIR

080410-The Q1 2010 primary market contributed 1,816 units from 15 active projects although there were fewer transactions than in the previous quarter. About 1,200 units were sold during Q1 2010. Housing demand is currently high. The city is expanding to the west, which may draw the demand for apartments to that area. The primary market in Q2 2010 could see 1,990 new units from 7 projects and 2,000 more could be opened by the end of the year. The primary market is expected to open about 10,900 units by 2011. An unidentified number of apartments from the new urban areas is also expected to contribute to the future supply. SGT

090410-Some 1,087 luxury apartments would be completed in Ha Noi during the last half of 2010. VNN

040410-Nam Cuong Hanoi Group recently launched sales of 116 apartments at its Hoang Quoc Viet Residentials pro¬ject in Tu Liem district, at starting price of $1,300sqm. However, a source from the company said buyers were no longer as excited as late last year and they had been able to sell just a few units. Indochina Land last week announced the sales of another 207 units of Indochina Plaza Hanoi pro¬ject, where it almost sold out 183 units within one week late last year at prices of $2,900¬-$3,300. Although Vietcombank has agreed to lend buyers at Indochina Plaza Hanoi up to 60% of an apartment value they do not expect to sell as fast as the last quarter. A report affirms that high-end products in Hanoi still have high asking prices and do not show any sign of reducing such as Pacific Place with about $4,500-$5,000sqm, Golden Westlake with $3,300¬-$4,000sqm and Vincom Park Place $3,500-$4,000sqm. There were 47,400 new residential units planned for the end of 2013. Approximately 39% of this will be located in Ha Dong district, followed by Can Giay and Tu Liem districts with 14% and 12% respectively. There are currently no future residential projects planned in Hoan Kiem. The majority of future supply will be dominated by mid-range apartments with prices ranging from $1,200-$2,000sqm at roughly 82%. The remaining 18% will be split between high and low-range apartments. VIR

040410-The serviced apartment occupancy rates in the 1st Quarter of 2010 lingered between 87-98% compared to last year's final quarter rates of 86-88%. The overall vacancy rates remained at nearly 14% in the first quarter of 2010. However, newer projects that have opened since 2008 have lower vacancy rates of between 8-10%. Ocupancy rates for projects built prior to 2008 were only between 84-86%. Up to now, Hanoi is home for approximately 350,000sqm of apartments for lease with more than 4,000 units in 91 buildings, from 40 to 625sqm. This year the market will see supply increase approximately from 5-10%. In the ser-viced apartment sector, 230 units will be added to the market at Crowne Plaza in My Dinh com¬mune and Tay Ho district's Elegant 2. In the private market sector, major new offerings include Vin¬com Park Place, Golden Westlake and Ciputra P1 and P2. These apartments have been sold to local buyers, who then will prob¬ably lease them to foreigners. Regarding rental rates, last year's final quarter saw a modest increase by only 1-3%. VIR

190410-The serviced apartment market in the capi¬tal city of Hanoi saw a slight increase in overall occupancy compared to the previous quarter, but also wit¬nessed a slight decrease in average rental rates. The year-on-year decline was about 4%, equivalent to a drop of US$1.10/sqm. The market, with no new supply last quarter, has 41 buildings provid¬ing 2,200 serviced apartments from studios to six-bedroom units and penthouses. Some 2,300 apartments would join the Hanoi market over the next four years, including a new supply of around 60 from a project in Tay Ho District next quarter and 84 from the Crown Plaza Complex in Tu Liem District in the last quarter of this year. SGT

190410-Hanoi targets to increase housing area per capita in the city from 13 to 22sqm by 2025. SGT

290410-Hanoi's serviced apartment market is facing a glut in 2011 with more than 1,200 ser-viced units coming online. Currently the capital's market has 2,200 service units and the current occupancy and rent rates are stable with more than 85% and average rent rates from $25-28sqm. In some serviced apartments, we can observe them operating with very short-term leases like a hotel. Tu Liem dis¬trict's Habico tower is swapping serviced apartments for long-term lease apartments which could be repeated at other devel¬opments. The total supply in this quarter increased by 7%, equivalent to more than 100 units. The overall occupancy rate saw a slight increase of 1% against 2009's fourth quarter and 3% against the same quar¬ter of 2009. However, the average rental rate decreased by only $0.3sqm in comparison with 2009's fourth quarter. VIR

290410-Mid and low-range apart¬ments are gradually domi¬nating Hanoi's property mar¬ket with 91% of apartments launched in this year's first quarter were mid¬ end residential units. Mid-end residential units are now being sold from $1,500sqm downward, while the low¬ end ones are being sold at less than $1,000sqm. The demand for prices below $1,000 was high. Some 73% of the launched apart¬ments were priced between $700 and $900sqm. This sector is more in line with the requirements of middle income Vietnamese families with 2 bedroom apartments ranging from 70-90sqm. Properties in Ha Dong are typically 2-3 bedrooms and 60-100sqm from $800 to $1,500sqm. The district has a strong supply pipeline for the fore-seeable future and is predict¬ed to connect with the new commercial developments in Cau Giay and Tu Liem dis¬trict, attracting workers who wish to be located close to their new employers. VIR

170510-Hanoi City plans to set aside VND12tr / $628m for worker dormitory projects until 2020 as the number of laborers is expected to soar to 800,000. The projects will cover 500 hectares of land in the city. SGT

010610-Land fever in the capital's western re¬gion and beyond because of the Lang-Hoa Lac highway and 5 satellite cit¬ies along the Thang Long axis link to Ba Vi region to the westi. In addition, real estate companies have continued to release inaccurate infor¬mation in order to raise prices which has created a market of virtual land prices. As a result people have rushed to buy land, causing prices to skyrocket even fur¬ther. Projects located near convenient transportation infrastructure have seen prices increase from 35-55% cent and trading vol-ume has increased 25-30% cent over last month. At the end of March, the land in this area ranged from VND26-VND28 million (US$1,368-$1,473) per square metre. The current price is about VND35 mil¬lion / $1,832 per square metre. In some project areas, such as Geleximco C and D along Le Trung Tan road which has opened to traffic, land prices have risen from VND42 million / $2,199 to 65-70 million / $3,403-$3,665 per square metre. Land near Trung Van nearly doubled in price from two months ago from VND45 million / $2,356 per square metre to VND80 million / $4,188. A number of other desir¬able locations along the Lang-Hoa Lac Highway are up to nearly VND 110 mil¬lion / $5,759 per square metre. Apartment prices have also increased with residen¬tial land nearly doubling, and even tripling in some cases. In Tay Ho District, land in the Xuan La urban area was VND130 million / $6,806 per square metre last month, which has increased to VND150 million / $7,853 per square metre now. Land in Gia Lam District is a comparative bargain, but prices have risen equally rapidly, from VND15-¬VND18 million / $785-942 to VND25-¬VND27 million $1,390-$1,414 depending on location. Land prices have nearly doubled from 7-8 months ago. The market has caused the price increase, but it was in excess of its real value because of land speculation. VNN

200610-Aaverage rents for serviced apartments in Hanoi were more than $3,000 per unit per month. Hanoi's rents were lower than Bei¬jing ($4,600), New Delhi ($3,600) and Mumbai and Karachi with more than $3,200. The average rent rate was stable at around $28 per square metre per month in early of 2009, a little bit down at $26 in the third quarter of 2009 and increased to $27 in the first quarter of 2010. However, the Hanoi market will be faced with huge stock in 2011 when more than 1,200 serviced units coming online, more than a half of the total current sup¬ply. VIR

100710-The apartment for sale in Hanoi was quieter in the primary market during the 2nd Quarter. This was reflected by a lower number of units sold, 670 units, accounting for 48% of the primary supply compared to around 1,200 units in the previous quarter. The total primary supply in the second quarter is 1,400 units, provided by 13 active projects in 9 districts, in which Tu Liem District alone accounts for nearly half of the primary supply. There is a new supply of 2,900 units from 5 projects to enter the primary market in the 3rd Quarter, and it is expected to see a new supply of over 1,500 units from 9 projects in the 4th Quarter of this year. In addition, an estimated 26 projects may enter the primary market by 2011 with over 11,800 units and an amount of apartments from the new urban areas is expected. VNN

100710-Around 11,200 new condos were launched onto the HCMC market in the 2nd Quarter, increasing by 24% against the 1st Quarter with most flats in Districts 2, Binh Tan and Binh Thanh. SGT

140710-The new apartment sup¬ply in the 2nd Quarter was 4,587 units and in the latter half of the year there would be around 10,000 new units launched, pushing the 2010 total new supply in Hanoi close to 20,000 units. Several high-end projects such as Richland Southern, Mulberry Lane and Tricon Towers have started to offer dis¬counts, bank financing support and favourable payment terms to quicken sales. The suc¬cessful launching of apartment projects in the first half of 2010 in the primary market included Dang Xa new urban area in Gia Lam district, Ecopark in Van Giang district, Hung Yen province, and The Pride in Ha Dong district. The developers got good turnover as 99 units of Dang Xa new urban area was sold out within 2 days of launch, 90% of nearly 600 units at Eco¬park within one week and 50% of total units in the first launch of The Pride was purchased. VIR

280710-The Hanoi residential market started to fall during the second half of 2008 and then frozen until the first quarter of 2009, he said. It started to recover in the second quarter of 2009 with a 15-20% rise in land and house prides during the 3rd Quarter. Prices then jumped 30-40% during the 1st Quar¬ter and early in the 2nd Quarter 2010. VNN

300710-The luxury condominiums fetch an average price of US$2,800/sqm. SGT

280710-There are almost 8,200 villas and 11,400 townhouses supplied to the market. The average popular sec¬ondary asking villa prices are at the highest in Can Giay district, reaching $7,400sqm in the 2nd Quarter of 2010, fol¬lowed by Tay Ho and Tu Liem districts with more than $6,800sqm and more than $5,100sqm respec¬tively. Thanh Tri and Gia Lam districts experienced the lowest prices. However, hundreds of com¬pleted villas and townhouses belonging to a series of residen¬tial projects across in Hanoi are still empty as most buyers are speculators, not end-users. There are a few of buyers purchasing the units for accommodation. They are high¬ income earners and a buyer can purchase several units, even tens of units. They use them as long¬ term investments or gifts for rel¬atives. Many speculators would wait 3-5 years for unit prices to double. For example, Ciputra International City, in Tay Ho district, sold villas at $1,250sqm a few years ago, but now they sell for $7,631-$8,421sqm. "Buyers are thirsting for more residential projects offering villas and townhouses for sale. The supply from 59 new villa, town¬house projects in Hanoi over the medium-term will partially help to ease the thirst. VIR

070810-Luxury villas in Ciputra and My Dinh now costs in the region of VND90 million (US$4,700) to VND 140 million ($7,300) / sqm. In more modest regions - such as Phap Van, Linh Dam, Van Khe and Van Phu - accommo¬dation is going for between VND40 million ($2,100) to VND60 million ($3,100) / sqm. In the medium ¬term, 59 new villa and townhouse projects will launch in Ha Noi. Most of them will be in Hoang Mai, Lang Hoa Lac, Ha Dong, Long Bien and Tu Liem districts. It is estimated that 55% of these will be in Hoang Mai District and Lang Hoa Lac area. There were almost 8,200 villas and 11,400 townhouses in the capital. Ha Dong is the most attractive area for investors, with about 3,400 villas and 5.000 townhouses un¬der construction. VNN

041009-Land prices around NUA in Hanoi have risen steeply due to better infrastructure. Land prices at Thanh Ha area are VND30-45m / $1,538-$2,308sqm and VND50-60m / $2,564-$3,077sqm at Bac An Khanh. SGT

061010-The Hanoi serviced apartment sector average dipped slightly to 91% from 92% in the 3rd Quar¬ter but average rental rates increased by 0.4% to US$26/sqm. SGT

121010-The number of serviced apartment units will reach 3,450 units com¬pared to 2,250 units currently. New supplies mostly come from Tu Liem, Tay Ho and Thanh Xuan districts. Major projects like Charmvit's and Keangnam's will contribute towards the supply. No additional serviced apartment project came online in the 3rd Quarter. The market so far has more than 2,250 units with total of 226,500sqm belong to 41 buildings. More than 91% of these buildings located in Tay Ho, Ba Dinh, Hoan Kiem and Can Giay dis¬tricts. A modest of 9% belong to Hai Ba Trung, Hoang Mai and Dong Da. The average occupancy rate of the whole market decreased by 1% to 91% in the 3rd Quar¬ter. Meanwhile the average rent rate increased by 0.4% to roughly $26sqm per month, compared to the 2nd Quarter. Fraser Suite had gained 90% occupancy com¬pared to roughly 80% at the end of 2009. Japanese and Korean are domi¬nating the expatriates living in ser¬viced apartments. The year 2012 will see a slight increase of around an addition of 200 units come online, however this fig¬ure in the year after that could be huge at nearly 800 units. VIR

211010-
Speculators are still driving Hanoi's villa and townhouse segment. They use them as long-term invest¬ments, gifts for relatives or for leasing to foreigners for 3-5 years waiting for unit prices to double. For example, in Tay Ho district's Ciputra Internation¬al City, villas sold at $1,250sqm in 2005, but now they sell for $7,631-$8,421sqm. Thousands of people flocked to register to purchase a villa or a townhouse among 50 units in the first launch of the 77 hectare Parkcity project in Ha Dong district. Each villa in Parkcity was sold at around $800,000 and each town¬house sold at $400,000. As there were 50 units with more than 1,000 registra¬tions, speculators pushed prices to soar by more than $51,000 per unit. Meanwhile, speculators have also paid enormous attention to Hoang Mai dis¬trict's Mega Dominium pro¬ject and Ha Dong district's An Dong Villa venture. All 8,200 existing villas and 11,400 townhouses in Hanoi sold at the high prices before they were offered to the primary market. However, hundreds are still empty. VIR

011110-Among big projects to be launched is in Khanh New City Development's sale of its 1st Phase. The mega $2 billion project by Posco E&C and Vietnam's Vinaconex is located in Hanoi's Hoai Duc district, along the Thang Long Boulevard with 6,440 apartments, equivalent to 392,319sqm of accommodation, enough for 30,000 people. Hoa Phat Group’s 1,000 apartment Man¬darin Garden in Can Giay district's Tran Duy Hung; the CT7D, located in Le Van Luong by Nam Cuong Group; and the FLC Land¬mark Tower of FLC Group with 200 units and prices ranging from VND23-28m / $1,200-$1,470sqm. In Gia Lam district, over the Red River, the second lot of Rung Co Residentials belonging to the Eco Park is also being launched, with around 1,500 apartment units. In addition, Victoria Van Phu, Star City, Diamond Tower and Song Da City View will also add apartments to the mix. There would be 3,000 units in Hanoi launched in the 4th Quarter compared to 1,950 units in the 3rd Quarter and more than 4,600 units in the 2nd Quarter. VIR

091110-FLC JSC has announced the sale of the 3rd Phase of its Landmark Tower project in Tu Liem at around VND28m / $1,436sqm. Customers can borrow up to 85% of the value of the condos. SGT

091110-Land prices in Hanoi City have increased strongly since the 2nd Quarter given bet¬ter traffic infrastructure in Long Bien, My Dinh, Tu Liem and Thanh Xuan district. Land lots in the western areas have surged by 20% to 30% in price to VND40-45m / $2,051-$2,308sqm. SGT

291110-Nam Cuong is offering nearly 1,600 apartments in the Duong Noi new urban area at an average price of VND22 million (US$1,128) sqm excluding VAT. According to the developer, the Duong Noi new urban area on Le Van Luong street includes 14 multi ¬storey buildings, covering an area of 52,000sqm. SGT

291110-Real estate in Ha Noi's outlying west side’s improved road sys¬tems, including the new Thang Long and Le Van Luong highways, have already contributed to 30-40% increases in property values. The prices of Tay Do vil¬las in the Duuong Noi new urban area, for instance, have risen from VND23-30 million (US$1,150-1,500) sqm last year to VND40-50 million ($2,000¬-2,500) this year. Villas and apartments in the Van Khe urban area were fetching an even more impressive VND60¬70 million ($3-3,500) per square metre. Meanwhile, on the other side of town, across the Red River in the Gia Lam District, real estate values have also been rising steadily. The price per sqm for a unit on Ngoc Thuy Road, for example, now stand at VND35-40 million ($1,750-2,000), a 7 fold increase since 2007. Properties in the Da Ton commune have climbed from values of VND3-5 million ($150-250) per square metre two years ago to VND15-I6 million ($750-800) currently. Property values were expected to rise further once the Ecopark development was completed and once better road systems linked the eastside to the city centre, noting that the recently-opened Phap Van and Thanh Tri bridges have already helped shorten commute tunes from the area. VNN

051210-Experts expect Hanoi City to have 3,000 more apartments in the 4th Quarter with most being middle-priced flats at around VND20m / $1,026sqm. The proj¬ects to be completed include Hanoi Times Tower and the Victoria Van Phu. SGT

051210- Tan Hai Thanh realty trading center has launched the sales of Binh Tri Dong B project with 252 condos priced at around VND550m / $28,205 each. Sacombank, Techcombank and HD Bank will provide installment loans of up to 20 years for customers. SGT

121210-Many experts believe that when construction of 252 property projects in Hanoi awaiting approval become operational and are sold between 2011 and 2013, the market will be flooded with apartments with supply exceed demand, leading to lower prices of houses and apartments and the stag¬nancy of the Ha Noi prop¬erty market. VNN

151210-Vinaconex Xuan Mai Concrete and Construction JSC has begun to sign contracts with 382 customers of Vietnam's first low-cost condo project CT1-Ngo Thi Nham in Hanoi's Ha Dong District. The condos are VND8.8m / $451sqm. SGT

161210-While high-end apartment pro¬ject sales remain slow, mid-end apartments have been hunted by customers. Among those are the PetroVietnam Premier Creation Joint Stock Company's Hanoi Time Tower in Ha Dong district. The company recently sold off 120 units in its two buildings after a few days of launching, with the starting price from VND19.2 million / $985sqm (exclusive of VAT), and Nam Cuong Group has also sold off more than 400 apartments in its Le Van Luong Residentials in Ha Dong district, with the price ranging from VND21-24 million / $1,077-$1,231sqm. Increasing supply trends also mean the market is awash with buy¬ing options. Ministry of Construc¬tion figures revealed that more than 800 residential projects are being executed in Hanoi, with thousands of apartments to be launched. Next year, the construction of an additional 252 apartment pro¬jects will be undertaken, expected to provide nearly 8,000 more apart¬ments for the city. A range of new urban area pro¬jects such as Phung Khoang, Van Phuc, Van Khe, Duong Noi, An Hung, Park City and Mo Lao have been built along extended Le Van Luong Road. Along the Thang Long avenue, there is a series of new urban areas such as Tay Mo-Dai Mo, Geleximco, North An Khanh, South An Khanh and Van Canh. Hundreds of apartment blocks are also being built in the districts of Can Giay, Tu Liem, Tay Ho and Ha Dong districts. It is also said that two big pro-jects will be launched soon next year, including a 6,440-unit project developed by Korea's Posco E&C and Vinaconex and a 1,000 unit Mandarin Garden developed by Hoa Phat Group. However, it is not all roses. Apartments, which are priced at more than $2,000 per square metre in Tu Liem, Cau Giay or Thanh Xuan districts, and more than $1,500 per square metre in Ha Dong district or other suburban dis¬tricts are still struggling to sell. VIR

271210-Nam Cuong Group has decided to launch the sales of 209 more condos of Duong Noi new urban area project due to high demand. The flats are around VND24.2m / $1,241sqm. SGT

100111-Hanoi’s housing de¬velopment plan shows 29 districts are dotted with a thousand projects. For example, Le Van Luong, a main road, is home to dozens of major urban area developments including Trung Hoa-Nhan Chinh, Phung Thoang, Van Phuc, Van Khe, Duong Noi, An Hung, Park City and Mo Lao. Row house and villa segments registered a strong increase in price last year. Prices of landed properties in west¬ern Hanoi leapt some 15% in the last quarter of 2010 because the city's new master development plan has made some areas ideal for investment. This year should see the market entry of some 50 property projects. SGT

110111-Grade A serviced apartments occupancy had a quarter on quarter increase of 3% to 93% for the 4th Quarter. VIR

260111-t the end of last year, Hanoi had a total of 41 serviced apartment projects supplying 2,250 units to the market. Projects with the largest number of serviced apart¬ments (from 206 to 270 units) all belonged to the Grade A segment, which accounted for approximately 55% of the total supply. The latest arrival was the Char¬mvit Grand Plaza Serviced Residence with 180 units, which opened at the end of 2010 . Because of a stable supply, serviced apartments had recent occupan¬cy rates of about 92% and average achievable rent was $26.4sqm. However, grades B and C faced with stiff competition from private houses. More than 1,200 units would be sup¬plied to the market at the end of 2011, occupying more than half of the total current supply, at roughly 2,250 units. Unfinished projects contributing to future supply would be the Keang¬nam Landmark Tower with 387 units, Crowne Residences with 135 units, Elegant Tay Ho with 100 units and Hoa Binh Green Apartments with 40 units. The supply in coming years may triple when 31 known future projects come online. Eleven of these 31 pro¬jects should provide approximately 2,600 units. The number of units in the other 20 projects is not yet clear. VIR

160211-Property companies are predicting an explosion of new apartments in the two big cities this year based on the execution schedule and status of future known projects, estimated approximately 19,000 units from over 30 projects will enter Hanoi's primary mar-ket in 2011. Meanwhile, the secondary supply would have approximately 39,300 apartments. Besides, another 120 pro¬jects are estimated to enter the primary market and may provide a stock of over 24,000 units. Hanoi's new condomini¬um supply this year anticipated 16,000 units. VIR

Date : Sunday, 04 October 2009
Category : Realty - Hanoi Retail


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050809-Lotte Vietnam Co Ltd is planning to open a supermarket on the site of the current My Dinh – Giap Bat coach station, the GD said in a working session with the government. SGT

080809-Hanoi will have about 490 markets, 160 trade centres and 180 supermarkets under a plan for the development of wholesale and retail networks until 2020 with vision on 2030. The plan, which included upgrading large-sized markets into shopping centres, was created to meet consumption and production demand in Ha Noi and surrounding areas. VNN

171009-In Ha Noi retail showed stable demand in the 3rd Quarter with in¬creasing numbers of international retailers and mid-end and high-end brands entering the capital city market. VNN

201009-The demand for retail spaces will increase slightly as the economy got back on track with sales growth rates of 18¬-20% annually. The trend hit home last week when the Hanoi City Complex project, which has been delayed for years, restarted construction. Developed by South Kore¬an retailer Lotte, the complex was predicted to offer a high¬ end space in Hanoi's central business district (CBD). With capital investment of $400 million, Lotte planned to take the valuable site opposite the Hanoi Daewoo hotel to become a multi-functional complex complete with hotel, residential spaces, offices and a trading centre. The CBD area has stable rents and full occupancies most the time, while inappropriate market positioning of projects had made it difficult for suburban and secondary areas to operate effectively. The CBD was still on top in terms of rents, from approximately $40-$90/sqm with occupancy rates of around 90%. Right behind the CBD was the secondary area, with average rents varying from $20/sqm to $120/sqm. Rents in suburban areas were relatively low, from $7-$50/sqm. Many mid and high-end brands have recently entered the Hanoi market including Mphosis, Paris Hilton and Vanlaack. The latest major new supply in 3rd Quarter was the Vincom Gal¬leries, with 8,500sqm which launched with an under 20% vacancy rate. There will be about 11,200sqm possibly coming on line in the 4th Quarter and another of 82,000sqm in 2010. By 2011, Hanoi was expected to have a total new supply of retail area of about 425,000sqm. Up to the end of 2009, the total retail space was about 360,000sqm, contributed to by 10 shopping centres and shopping malls, department stores and hyper-markets, 78 supermarkets and electronics marts, 2 wholesale centres and 12 retail podiums. The next major retail centre will be the 27,000sqm Grand Plaza Department Store at Char-mvit Plaza, located on Tran Duy Hung. This pro¬ject is located next to the Big C Thang Long and adjacent to Trung Hoa-Nhan Chinh, an affluent residential commu¬nity in Cau Giay. The Savico Plaza is another major fringe urban retail complex of more than 50,000sqm under construction in Long Bien district. VIR

150110-Average rents in the CBD are US$80sqm per month with the highest rents US$146/sqm. Aver¬age rents in retail spaces in non-CBD are around US$35sqm per month. SGT

180110-In Ha Noi, the vacancy rate at malls in the CBD is only 0.38% compared to 37% in other areas. The rent ranges from $80-$146sqm. No major new supply is planned this year in the Ha Noi CBD area. VNN

250110-In the next 2 years retail space in Hanoi will reach some 510,000sqm or 5 times more than the current sup¬ply from 13 shopping centres and department stores. In Hanoi, average prime rents in the CBD stood at $80sqm and the average prime rents outside the CBD was $35, with the highest rents in the CBD reaching around $146. The capital city's coming retail projects include Savico Plaza Hanoi (52,000sqm), Grand Plaza Hanoi (27,461sqm), Hanoi City Complex (34,682sqm), Keangnam Hanoi Landmark Tower (82,875sqm), Times Square Hanoi (30,000sqm), Yen So Park Shopping Mall (49,250sqm), Ciputra Hanoi Mall (114,000sqm) and Royal City (200,000sqm). VIR

280210-In recent months, interna¬tional brands have scrambled to secure scarce retail space in down¬town commercial centres while restaurant chains are being opened on major streets nationwide. Average occu¬pancy rates in Ha Noi's retail spaces now stood at 83%. With the rising demand for retail space, prices have been forecast to continue climbing in 2010. Average rental prices for retail space in Ha Noi and HCM City currently stand between US$60-100/sqm. In central business dis¬tricts, rents have even risen to $250 per square metre per month. Ha N6i's retail space will grow to reach 1m sqm over the next 2 years, more than double its current supply. The pro¬jected growth has been attributed to completion of major projects such as the Hang Da, Mo and Nga Tu So markets, and the Grand Plaza and Sky City Tower. VNN

160310-The occupancy rate across the whole sector is about 90%, with the highest rent up to $150sqm in Hanoi and around $250sqm in HCMC. However, there will be a lot of work to be done in the coming three to four years, when the total potential retail area of all types in Hanoi will rise by about 3 times the current amount, and 1.5 to two times in Ho Chi Minh City. The average ask¬ing rents of retail spaces at about $54sqm in the CBD and $36sqm in non-CBD areas in Hanoi. The improved occupancy rates were approximately 100% in the CBD and 69% in non-CBD areas. The Hanoi market saw a posi¬tive announcement from Grand Plaza, which saw roughly a 75% occupancy rate. Meanwhile, Vincom Galleries was fully occu¬pied after 4 months in operation and the Hanoi City Complex, which was delayed for a long time, will be re-launched in the near future. However, by 2012, a significant volume of additional retail areas would be added, pushing up the total retail spaces to more than 510,000sqm in Hanoi and 740,000sqm in Ho Chi Minh City. The Garden, located in My Dinh ward, Cau Giay district in Hanoi, had only a few customers in the last half of a year, but recently became more attractive after the 3,000sqm Big C super mark opened in the basement. VIR

060410-In Q1 2010, the average occupancy rate of the entire retail market was 92% - the same as Q4 2009, but down slightly compared to Q1 2009 at 95%. There is an estimated 67,000sqm entering the market in 2010. SGT

250410- Co.opMart Saigon in Hanoi will cover 7;500 square meters and include_a bookstore, game area, en¬tertainment center and restaurant. The VND74bn / $3.9m store is located at Km 10 Nguyen Trai Street, Mo Lao Ward, Ha Dong District in the capital. This is also the 1ST supermarket of Saigon Co.op in Hanoi. SGT

270410-The average vacancy rate dropped by 3.4% quar¬ter-on-quarter inside the CBD and retail sales increased considerably in the 1st Quarter, by 26.5% showing the strength of consumer demand. Despite little change in the overall rental levels, ground floor rents in prime locations increased by 1.37% in the 1st Quarter to $55/sqm however it is a dif¬ferent story outside of the CBD where supply continues to grow so rents declined 2.25% from last quarter of 2009 to roughly $35/sqm. In line with this drop in rents, the vacancy rate in the non ¬CBD regions fell to 25% from 31% last quarter as more tenants moved in to the Garden and Syrena build¬ings. Parkson and Big C re¬mained at full occupancy lev¬els, showing their strength. The next few quarters would see the emer¬gence of many non-CBD retail projects such as Bac Ha Plaza, Grand Plaza, Xuan Thuy Tower and Sky City Towers with the Pico Mall (Mipec Building) coming at the end of this year. Only the Grand Plaza, Bac Ha Plaza and Pico Mall are true shopping centres with the rest providing just basic re¬tail platforms. Over the next 2 years a series of major projects includ¬ing the Indochina Plaza Ha Noi, Savico Plaza, Ciputra Ha Noi Mall, Keangnam Ha Noi Land¬mark Tower and Mo Market Shopping Centre will be com¬pleted. VNN

080510-Average occupancy rates are more than 92% and although rents in the CBD of Hanoi saw a small increase there was no change in sub¬urban area rents. Rents at the CBD linger from $40-150sqm. Average rents in the non-CBD areas vary from $20sqm to a notable $120sqm while rents in the suburban area are relatively low, from approximately $7-70sqm, Hanoi is now home to 10 shopping cen¬tres, combining with department stores and hypermarket, 83 supermarkets and electron¬ic marts, two wholesale centres and 11 retail podium totaling 374,000sqm. There is an estimated 67,000sqm enter¬ing the market in 2010, of which nine out of the 11 known future projects are located in the non-CBD areas. In 2011, more than 190,000sqm is expected to come online and total stock of retail space in Hanoi will reach 1.2m sqm in 2013. VIR

100710-In the 2nd Quarter the average occu¬pancy rate increased to approximately 95%, up 3% against the 1st Quarter with rents in the CBD from US$40 to US$150sqm. There are some 62,100sqm of retail area from 9 projects to be launched onto the market in the 2nd Half and ap¬proximately 1.1m sqm of retail space from 81 projects supplied to Hanoi's retail market by 2013. SGT

300710-The Pico Mall Centre project in Ha Noi's Dong Da District, has begun construction. The centre covers 150,000sqm and will have 5 floors for shopping, restaurants, exhibitions and advertising. The centre is a part of the Mipec Building Complex. VNN

040910-Hanoi's retail market revenue expanded some 28% in the 1st Half from the same period of last year with total retail sales were recorded at US$5 billion. There is more than 400,000sqm of retail space in the major cities of HCMC and Hanoi. Although Hanoi's retail supply is 3 times lower than HCMC's, it will improve remarkably over the next 3 years given a host of projects underway. the market is expected to see some 1.3m sqm more retail space up and running in HCMC and an additional 1m sqm of retail space in Hanoi by 2013, particularly in the capital city's southwestern areas like Cau Giay, Tu Liem and My Dinh-Me Tri. Apart from Bitexco's The Garden, it is expected to see some projects such as Keangnam Landmark Tower and Nam Dan Plaza to join the retail market in the coming years. SGT

090910-Most buildings have main¬tained high rents and more than 90% occupancy rates, with local demand for retail space continuing to grow. Retail turnover of Hanoi in the first 6 months of this year had increased 28.2% compared to the same period of last year. Trading centres were dominating most spaces with vacancies of only 1.75%, followed by retail lobbies with 11.64% and depart¬ment stores with 25%. In the next 5 years, it is estimated that Hanoi will have around 665,000sqm of retail space, some 6 ¬times more than the current figure. However, these future projects would be mostly located in non¬ CBD areas such as in Tu Liem, Hoang Mai and Can Giay districts. Among those, Tu Liem district's My Dinh area, around only 8 kilometres from the capital's downtown, has been becoming one of the most hunted investment destinations by domestic and for¬eign investors. VIR

140910-Hanoi's retail sector at the middle of this year had no vacancies in the city centre and roughly 20% vacancies in non-CBD areas. Except in the central area, leasing prices had increased by about 1.59% com¬pared to the beginning of this year. Offered prices for retail spaces fluctuated from $55.5/sqm in the city centre to $35.68/sqm in non-CBD areas. In the next 5 years Hanoi will have around 665,000sqm of retail space, 6 times more than the cur-rent figure. However, those future projects will be mostly located in non-CBD areas such as Long Bien, Tu Liem, Hoang Mai and Can Giay districts. VIR

051009-The Hanoi Department of Industry and Trade will suspend construc¬tion of traditional markets till 2020 in its retail system planning project. The city has plans to build 130 more shopping centers and 30 supermarkets by 2030. SGT

061010-The average occupancy rate in Hanoi's shopping centres remained high at 94% and many new shop¬ping centres opened in the 3rd Quarter. SGT

251010-The average per capi¬ta income of Hanoians stands at roughly $1,900, an increase of 23% year-on-year. Residents between the ages of 20-40 account for 40% of the capital's pop¬ulation. This age bracket is embrac¬ing a "shop till you drop" mantra. Retail rents in Hanoi are high, at an average of $55sqm. This rent is even higher in some trading centres, up to $150sqm and demand is exceeding supply in those centres. Rents are roughly $35sqm in non -central business districts. There was still insufficient retail space in inner Hanoi, with 0% vacancies. The vacan¬cy rate at ring roads or outskirts of Hanoi was higher at 10%. Trading centres are mostly located in golden land areas. In Hanoi, Trang Tien Plaza and Vin¬com City Towers were built some years ago. Recently, Hang Da Trading Centre was put into opera¬tion while a range of others such as Cho Mo, Nga Tu So trading centres will come online in the coming time. With the expanding urbanisa¬tion, trading centres have been expanded to new residential areas, especially underground levels of multi-function complexes. This trend exists at Savico Plaza, Royal City and the Garden. However, Trang Tien Plaza is one example of a shopping venue failing to grab shoppers despite its golden location. One of the reasons is Trang Tien Plaza lacks support facilities for a modern trading cen¬tre, such as entertainment facilities like cinemas, supermarkets, or food and beverage courts. Trang Tien Plaza has also failed in attracting famous retail brands. The modern trading centre segment will increase by 6 ¬fold in the next 3 years, with an estimated 660,000sqm coming from new projects such as Pico Mall, Keangnam Hanoi Landmark Tower, Ciputra Mall Hanoi and Usilk City. Song Da Thang Long's Usilk City trading centre as an example stretching nearly one kilometre along extended Le Van Luong road, a potential lucrative road through key Hanoi urban development areas, it will offer 70,000sqm of retail space and 2 floors for car parking. Usilk City will make Ha Dong new urban district and the Hanoi's south-west gate an important commercial hub. Citra Westlake City Development is building a 120,000sqm shopping mall within Ciputra International City on Lac Long Quan street while Royal Trading and Real Estate JSC is developing a 200,000sqm shopping centre with¬in Royal City complex on Nguyen Trai street. VIR

221110-Customers have registered to hire 140,000sqm or 60%, of retail space of Vincom Mega Mall in Hanoi in the last month. The investor, Hoang Gia Real Estate Inv and Dev JSC has plans to inaugurate the mall in 2013. SGT

Date : Sunday, 04 October 2009
Category : Realty - HCMC General


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120408-Saigon Diamond Co. has been allotted 1,867 square meters of land in a prime location in downtown HCMC to develop a commercial building. The city government has issued a decision revoking land from users in the location, surrounded by Le Loi, Nam Ky Khoi Nghia, Le Thanh Ton and Nguyen Trung Truc streets in District 1, to allocate it to the investor. The project will include a shopping cen¬ter, and offices and apartments for rent. In a related development, the city has allowed beer and beverage producer Sabeco to use 2,009 square meters of land at 4 Thi Sach Street and 3 Thai Van Lung Street in District 1 to develop office buildings. SGT

0508-In the next 5 years the Construction Investment Company No8 would build about 1,000 apartments for me¬dium and low-income buyers. Land plot transactions have been slow since Tet even in hot areas such as Phu Loi - Binh Dien in District 8, East Thu Thiem in District 2, and Thoi An in District 12. Prices have fallen at least 12% on average for apartments, from VND8 million to VND12 million (US$500- 750) per square metre. April’s price for high-grade apart¬ments fell by 10% against March. Most property speculators said apartment prices had dropped by 30-40% since March. Successful transac¬tions in March fell dramatically, 82%, and will probably continue to fall. The market for high-grade and medium-grade apartments had slumped, but the demand for medium-priced apart¬ments remained high. VNN

080508-HCM City's iconic Ben Thanh Market has a commer¬cial value report¬edly of 800 to 1,000 taels of gold to buy a 5sq.m shop within its precincts ie USD$175,000-$220,000 / sqm. VNN

140508-A 826.6sqm house on Cach Mang Thang Tam in District 3 is for sale for USD$15.5m ie USD$18,752/sqm or 14,000 taels. VIRTimeOut

290508-Thu Duc district officials have asked the city to raise the official price to VND1-1.5 million / sqm - $94 - from the current VND250,000-300,000 - $16-19 - to better reflect market prices to help the development of low cost housing for some 100,000 IP workers, or 40% of the city’s total, and 50,000 students, or 25% of its total. VNN

030608-Thailand's Charoen Pokp¬hand Group is struggling to find locations to invest $2.75 billion in Ho Chi Minh City. “However, the city's leadership and Department of Planning and Investment said the city's ideal loca¬tions were unavailable now. Some 19 of the 20 golden locations are owned by investors. The last one will be auctioned in the near future. But when we met a number of the city's real estate companies, they said ideal locations are always available, but we have to leave a big sum of deposits and rents per square metre of $20,000-$23,000 which is too high." VIR

100608-The HCMC government has approved a proposal by the Department of Finance for what are the record high compensation rates for a property project in the city. The rates will apply to house owners in the Eden area which will be developed by the local firm Vincom into a high class commercial and residential complex, and an under¬ground parking lot. The rate for families on Dong Khoi and Nguyen Hue streets is VND370 million / US$21,764 per square meter, VND280.6 mil¬lion / $16,506 for those on Le Thanh Ton street, VND143.9 million / $8,465 for those living on the ground floor of a house, a condominium building on Nguyen Hue Boulevard and another on Dong Khoi Street, and a range of VND51.9 million / $3,053 and VND118 million / $6,941 for others. SGT

120608-So far this year HCMC has attracted more than $2.3 billon from 179 projects – up 341% - and most of them focus on real estate and service sector. SGTW

070708-Thai-backed Charoen Pokphand Group are delaying planned property projects because of the high inflation, high bank lending rates and scarcity of US dollars. Bank lending rates have jumped to 21% and long ¬term land rents for a square metre are $20,000-$23,000 in the CBD which is too high. VIR

080708-The local firm Vincom will spend around VND 1.5 trillion / $90m paying compensation and providing financial support for 210 families and 21 other entities affected by its property development project in the Eden area in downtown HCMC ie @$390k each. SGT

200708-Taeil S&D, a subsidiary of South Ko¬rea's Shindo Industrial Development, has expressed intention to invest in 3 areas in the new urban center of Thu Thiem in HCM City with total capital of US$900 million. The company will develop 6,500 apartments in Binh Khanh Ward of District 2 and sell to HCM City authorities for resettlement of residents in Thu Thiem. Other developments are 8 office, com¬mercial and apartment buildings. SGTW

140808-HCMC authorities have approved the highest compensation for hous¬ing land along Ta Quang Buu Street in Ward 2 in HCMC's District 8 at VND20 million / $1,195 per square meter to upgrade and expand the street. SGT

220808-HCMC temporarily suspended the issuance of new golf course licences. According to the report of Department of Planning and Investment, the city cur¬rently has licensed 6 golf courses in districts 2, 9, Tan Binh, Binh Chanh and Cu Chi. However, only one course in District 9 is cur¬rently operating. VNN

040908-HCMC has zoned land at 3a-3b Ton Duc Thang Street in HCMC's District 1 for developing office build¬ings, hotels and commercial centers and land at 7-9 Ton Duc Thang Street as offices for rent and commercial facilities. SGT

020908-Prime real estate sites in downtown Ho Chi Minh City are still hotly sought¬ after despite a slump in the property market. Land clearance costs are also surging to meet real prices in the market. Vincom Joint Stock Company is concerned about a ballooning bill of VND1,500 billion ($90.9 million) to be paid to own¬ers displaced for the con¬struction of the company's trade centre, offices and high-end apartments project in District 1. The trade centre will cost Vincom between VND40 million ($2,460) to VND370 million ($22,424) per square metre in displacement costs, kicking on the total investment to $250 million. A 1,400 sqm plot on Hai Ba Trung street sold for about $36.8 mil¬lion ie $26,285/sqm and a 1,000 sqm villa went for $5 million ie $1,000/sqm. VIR

290908-The HCMC government has approved a land lease of over 400 square meters at 106 Nguyen Van Troi Street in Phu Nhuan District to construct a high-rise office building. The starting rent for the lot is over VND33.6 billion over a period of 32 years / $2m ie $5,000/sqm. SGT

071008-The PM has ap¬proved a plan to mobilise in¬vestments of nearly US$15 billion from both domestic and foreign sources to build urban rail systems in Ha Noi and HCM City by 2020. HCM City plans to build several urban lines, both be¬neath and above the surface, at a cost of $7.5 billion. The HCM City network will have routes linking Ben Thanh Market and Suoi Tien Park; An Sating bus station and Thu Thiem new urban area; High¬way 13 and Tan Kien; Ben Cat Bridge and Nguyen Van Linh Boulevard; Sai Gon Bridge and Can Giu6c bus station; and Ba Queo crossroads and Phu Lam. VNN

111008-Experts at the Inter¬national Real Estate Federation (FIABCI) Asia Pacific conference in HCM City are optimistic about the development of the real estate mar¬ket in Viet Nam. HCM City now has 150,000 sqm in 15 shopping centres and departments stores, but does not have enough "purpose built" re¬tail facilities. Around 50,000 expatriates currently live in HCM City but only 3,000 serviced apartments are available. There are currently fewer than 7,000 hotel rooms in 3-5 star hotels. The Government targets by 2020 to turn HCM City into a metropo¬lis of 10 million residents. The Government also plans to increase the average hous¬ing area from the current 11.5 sqm to 17 sqm per person. VNN

211008-A recent report by the People's Committee admits there are still around 100 lo-cations in the city that are flood-prone, exactly the same as in 2000, though flood-pre-vention measures were car¬ried out in recent years. The report blames illegal encroachments of rivers and canals and heavy rains for the flooding. The experts preferred to look at the bigger picture and blame it on haphazard urbanisation and economic growth. Encroachment along the city's rivers and canals has limited the flow of water, causing water levels to rise higher every year. While the sea level in neighbouring Ba Ria - Vung Tau Province has re-mained unchanged since 1990, the city's rivers and canals have risen an aver¬age of 1.5 cm a year. The experts said cement¬ing of land surfaces and emissions from vehicles and factories were making the city's microclimate warmer as well as bringing more rain. VNN

071208-HCMC authorities have proposed raising land prices throughout the city by 10% to more than 100% next year. District 2 will see the highest spike of over 100% while land on some main streets in commercial District 1 is estimated at over VND80 million / $4,713 per square meter. SGT

121208-Ho Chi Minh City's recent price increase on the regulated land value chart, used to work out property compensation and land use rights will take effect in January 2009. Accordingly, land compensation on 1,899 out of the 2,740 streets will be adjusted. Downtown Dong Khoi, Nguyen Hue and Le Loi streets will have the highest land valuations at VND81 million ($4,800) / sqm - 20% higher than the current valuation of VND67.5 mil¬lion ($4,000) / sqm, while Thieng Lieng residential area in Can Gio district will be valued at the low¬est rate, VND110,000 ($6.50) / sqm. Land prices in District 2, which contains Thu Thiem New Town and the pricey Thao Dien quarter, will see the largest increase of nearly 100%. The lowest increase in land values, less than 10% will be in Go Vap, Tan Phu, Binh Thanh, Binh Chanh, Cu Chi and Nha Be dis¬tricts. VIR

070109-HCMC inspectors will audit the HCMC Housing Development Fund due to its poor performance. The fund used one-third of the VND300 billion / $17.66m city funding to carry out housing projects while depositing the rest in a bank during the past years. SGT

110109-The property market slump and a severe global downturn may prove to be the right tonic to fix the ills of the country's social housing since prices are getting to levels that are deemed affordable for 1st time house-buyers. HCMC recently allowed the building of houses from 30-60sqm for sale in an effort to stimulate social housing development. According to department of construction statistics, Ho Chi Minh City has languished in its efforts to build 30,000 units with¬in 5 years. To date, only 30% of that plan has been fulfilled. With 3 EPZs & 11 IPs the city is still facing a dearth of accommodation for 218,000 workers and 30,000 relocated government employees. VIR

020209-The HCM City Real Estate Association has petitioned the State Bank of Viet Nam to extend the terms of the debts owed by its members to banks. It wants banks to lend to property developers at be¬low 10% interest so that they can resume their projects, many of which have stalled, and to waive penal interest on overdue loans. As of November 2008, in HCM City alone, banks' out¬standing loans to the prop¬erty sector was VND61.2 trillion / US$3.5 billion. VNN

050209-According to the HCMC Construc¬tion Association vice chairman, “The number of construction proj¬ects this year is expected to decrease by 40% compared to last year due mostly to the lack of funds and slow dis¬bursement of capital, especially for State projects, will hamstring the industry nationwide.” The association is now down to only 150 members. SGT

090209-HCMC's Department of Finance has suggested the Gov¬ernment to redeem over 260,000sqm of public land currently being used by 9 centrally-governed offices in the city. SGT

120209-The Ministry of Finance will revoke 38 State-owned properties in the HCMC which are wrongly used covering 26.1 hectares and allocated to 9 centrally governed organisations, including 8 State Owned companies and 1 university's subsidiary. The properties have been left unused, badly degraded, and leased out for profit. The area revoked is only part of 79 hectares that has been leased out. VNN

160209-The HCMC government has ap¬proved the upward adjustment of land compensation prices for the 2nd Phase of a Hanoi Highway widening project in District 2. The maximum rate is VND25m/$1,472/sqm. SGT

200209-The HCMC Dept of Planning and Investment has proposed 6 lots of Golden Land in prime locations be put up for tender. The 6 valuable lots cover over 790 hectares and that some 107 domestic and foreign investors had shown interest in developing these properties. One of them covers 9,700sqm in District 1 and is sur¬rounded by Nguyen Du, Dong Khoi and Ly Tu Trong streets. There have been 66 investors wanting to develop it. The others are in the Dan Sinh Mar¬ket area in District 1 (11,500sqm), at the comer of Nam Ky Khoi Nghia and Huynh Thuc Khang in District 1 (4,500sqm), at 462-464 Nguyen Thi Minh Khai in District 3, on Binh Quoi-Thanh Da peninsula in Binh Thanh District (427 hectares) and Long Truong area in District 9 (361 hectares). Binh Quoi-Thanh Da site has attracted about 17 investors and Long Truong site 12 investors. SGT

120409-HCMC has proposed the Ministry of Finance seek approval from the Prime Minister to get about VND22 trillion / $1.23bn from the sale of Government bonds for key infrastructure projects in the city. Thu Thiem new urban area and Hiep Phuoc residential and port project will require VND10 trillion / $572m and VND2 trillion / $114m respectively. SGT

140409-Land-use prices are expected to plunge in HCM City, particularly in the suburbs, as it becomes compulsory for people buying housing project land to build houses. Property developers have been encouraging land buyers to build houses since the beginning of this month, but it will become mandatory from September. VNN

030809-District 1 authori¬ties begun tearing down 2 old condo buildings to facilitate condo-commercial center-office complex projects. The projects had been delayed 5 years due to disputes in site clearance and compensation. Meanwhile, local government and people were afraid the old buildings at 289 Tran Hung Dao and 74 Ho Hao Hon would collapse. Around 38 house¬holds refused to move although compensation rates were in¬creased to VND19-152m / $1,067-$8,532/sqm. To push up the project, Duc Khai JSC paid VND21m / $1,179 more for each sqm of the house block next to the building. Statistics from the Construction Department show that HCMC needs to upgrade or rebuild 67 old condo buildings. Compensation is still the biggest challenge for the projects. VNN

080809-Vietcomreal is offering 5 major property projects in HCMC for sale : -
1 - The Vietamas Apartment project at 458 Cach Mang Thang Tam in Tan Binh with 400 high-end apartments.
2 - The Vietcomreal Riverside in Thao Dien area in District 2 of a 20¬storey apartment block with 210 apartments in the 1st Phase.
3 - Vietcas Tower 504 at 504 Nguyen Tat Thanh District 4 comprises of 2 blocks of apartments with 3 lower storeys as trading and service centres and 15 high-end storeys totalling 150 apart¬ments
4 - The 22-storey Vietcomreal Tower Trading¬ Apartment-Office block at 175 Pham Hung District 8 with 440 apartments
5 - The Vietcas Tower 9 project at 9 Nguyen Khoai District 4. VIR

250809-The Construction Ministry has submitted to the PM the adjusted general zoning map for HCMC to 2025 aiming to turn the city into an industrial, service and science technology hub of Southeast Asia by that time. The project will develop the city into a multi center city and prevent urban expansion from destroying forest areas in Can Gio, Cu Chi and Binh Chanh districts. The city will need about 100,000 hectares of land to house a population of 12.5 million people by that time. SGT

280809-HCMC next month will auction the prime land plot, well ¬suited for a commercial-service cen¬ter and office building at 7,400sqm on Hung Vuong in District 5 at a starting price of over VND704bn / $41.5m ie $5,613/sqm. Domestic buyers whose minimum financial capacity amounts to 30% of the starting price can register for the auction. SGT

290809-HCMC will auction a house and use right of a land plot at 100 Hung Vu¬ong Street in District 5 late next month. The plot covers over 7,400sqm with a price starting at VND700bn / $39.3m ie $5,309/sqm.

280909-The number of building projects has increased strongly in HCMC despite the gloomy real estate market. The city's Construction Department has evaluated 85 projects this year with total investment of over VND45tr / $2.53bn. SGT

051009-HCMC government failed to auction the 7,400sqm plot of land at 100 Hung Vuong in Dist 5 as only one enterprise joined the bid last Wednesday. The starting price was over VND700bn / $39.3m ie $5,309/sqm. SGT

071009-Hanoi has issued a price list setting the floor costs for each square meter of new buildings and constructions that will be the base for calculating registration fees and income tax earned from real estate transactions. Accordingly, the lowest prices for floor areas of 1 fl to over 20 fl buildings are from VND1.122m-VND6.44m / $63-$361 while the correspond-ing rates of villas and temporary houses are VND4.240-5.73m / $238-$322 & VND284,000-1.4m / $16-$79 re¬spectively. SGT

071009-Some 7 Korean investors includ¬ing Samsung, Daewoo, Ska, Kumho and Keangnam will cooperate with Transport Investment and Construc¬tion Consultant Co (TRICC) to jointly develop the urban metro line No. 5 in Hanoi, linking Nam Ho Tay, Ngoc Khanh and Lang-Hoa Lac. This metro line is 33.5 kilometers long, includes 22 train stations and requires total investment of US$1.2 billion. SGT

081009-A fund set up by HCMC to assist residents whose lands have been acquired for public works cannot cope with the demands placed on it since too many families are demanding help. Around 40,000 families displaced by infrastructure projects are demanding assistance worth VND135bn / $7.6m but the Fund said it only has VND15bn / $840k. VNN

201009-The residential floor area for people in HCMC has increased by 2.3% against 2008 to 13.6sqm / capita. The city with a population of 6.95m has 90m sqm of residen¬tial floor and is expected to raise the rate to 14sqm / capita in 2010. SGT

201009-HCMC plan to auction 6 prime land plots in HCMC's District 1 and Binh Thanh. SGT

021109-Realty projects have accounted for nearly 70% of foreign capital inflow to HCMC this year with the total value of over US$500m. Foreign investors have pledged to invest over US$770m in the city to date. SGT

051209-Land compen¬sation rates will be based on the market price beginning in Janu¬ary, with the most expensive land on Dong Khoi, Nguyen Hue and Le Loi at VND81m / $4,143sqm. VNN

071209-The 2010 land price list is almost unchanged from this year : the lowest price is VND1.2m / $65 while the high¬est is VND81m / $4,383sqm. SGT

081209-There are 4m motorbikes and 400,000 automobiles including 3,200 buses and 11,000 taxis in HCMC but only 4 inter-provincial bus stations and 9 taxi parking lots. The Dept of Transport has drawn up a list of roads where pavements will be used as temporary parking lots. The number of registered vehicles in the city in¬creases by 12% each year with about 120 new cars and 1,200 new motor¬bikes every day while parking space in the city, especially in downtown districts, is insufficient. SGT-VNN

120310-HJCMC has re¬voked 40 foreign invested property projects with registered capital of US$1.7bn. The city is considering to license 7 realty projects with combined capital registered at US$3.7bn. SGT

170310-HCM City authorities have revoked the licences of 40 foreign direct investment real estate projects worth US$1.77bn. Officials said the licences had been revoked because the projects were progressing too slowly. In 2009, the city attracted 13 foreign-invested projects in 14 sectors, accounting for 66.39% of all development projects in the southern hub. There are currently 143 licensed development projects worth $9.61 billion in progress in the city. Of those, $3.61 billion has disbursed, accounting for 38%. City authorities are currently considering whether to grant licences to 7 real estate projects valued at $3.7bn. VNN

150710-The city centre does not have a single parking lot although HCMC has around 427,000 private cars with 80 more reg¬istered daily. Assuming an automobile re¬quires 12sqm for park¬ing, the city needs to have at least 5.12m sqm (more than 500ha) for parking. The city has around 11,000 taxis but their operators only have a cumulative 2.5ha of park¬ing. VNN

090810-The HCMC Statistics Bureau has released a report, saying up till mid-July HCMC had 197 projects with some US$1.1 billion invested by foreign companies. The property sector leads the list with US$722 million, or 65.8%. SGT

170910-Building houses for poor and low income people will be a priority in HCM City's housing development programme for the 2011-15 period with a vi¬sion until 2030. For the next five years, the city would focus on building both social houses - which are sold at subsidised prices - and affordable houses at market prices. HCM City has targeted to build nearly 17,000 additional apartments for the poor and people with low income by 2015. Of this, 10,000 apartments will be built and sold to people with low income and 6,896 apartments for poor people, including Gov¬ernment officials, manual workers, students and others. The city will also build and re¬pair 65 downgraded apartment buildings with 7,242 apartments. It will implement 14 additional projects with 6,562 apartments for Government officials. The total construction area for building apartments for low-in¬come people has been fixed at 1.4m sqm 600,000sqm has been allotted for students. From 2006-10, a total area of 1,358,000sqm was used to build houses or apartments for unskilled manual workers, and 5 projects to build dormito¬ries on areas of 612,000sq.m for university students are being been developed and will be fin¬ished by next year, accommodat¬ing 67,000 students. HCM City also plans to develop 132 resettlement projects. These projects will turn out 22,472 apartments and 11,095 plots of land. The city will also build more hospitals, schools, and markets in resettlement areas. VNN

190910-HCMC has plans to build 10,000 condos for low-income earners and 7,000 others for needy residents from now to 2015. The city aims to increase housing space per capita from 12sqm to 17sqm in 2015 and 35.7sqm in 2030. SGT

270910-Between 2004 and August 2010, the HCM City Land Fund Development Centre paid compensation and collected 53 land lots totaling 375ha. Seven land lots covering 62ha were auctioned for VND1.34tr / $70m and another 75ha were handed over for public works. From 2002 to date, the city withdrew decisions on 91 projects covering 1,395ha because of undue delay. VNN

251010-HCMC saw over VND16.4tr / $841m in public property trading and transfers in the first 9 months. There were over 10,700 public land lots and houses sold in the city ie USD$78,600 each. SGT

051210-The HCMC Department of Natural Resources and Environment has completed the land price frame for 2011 with the highest rate set at VND81m / $4,154sqm. SGT

121210-The HCMC People's Council has approved the 2010 land price list with the upper limit set at VND81m / $4,154sqm. The lowest rate is VND1.2m / $62sqm. SGT

110111-Around 570 out of the 1,022 tenements in HCMC that were built prior to 1975, most in downtown and inner city districts, are unsafe for living and badly in need of repair. According to the Department of Construction, as of the end of last year, the city has renovated, repaired, demolished or evacuated 62 old tenements, of which 25 were rebuilt supplying 3,384 apartments. VNN

Date : Sunday, 04 October 2009
Category : Realty - HCMC Offices


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301109-The office¬for-lease market in HCMC is yet to show signs of recov¬ery from the economic down¬town, due to an increased sup¬ply in high-rise office space. The total area of high-rise offices would reach 1m sqm in the next few years of which 60% is located in District 1. Meanwhile, the demand for offices for lease has dropped in the 3rd Quarter and continues to fall in the 4th Quarter. Rental prices are declin¬ing to stimulate demand however many high-sky of¬fice buildings for lease remain vacant. The benchmark of office ¬for lease prices has dropped by 30-50% with prices in HCM City bottoming out. The current ceiling price is $70sqm a month. Kumho Asiana Plaza, a newly built commercial building that started opera¬tion at the end of the 3rd Quarter has supplied 25,700sqm making the supply of A level offices for lease soar by 5%. The operation of Kumho Asiana Plaza in particular has caused the occupancy rate of A-level offices for lease to fall by 15% from 96% to 81%. Several domestic and for¬eign firms are reducing busi¬ness, production activities and employees due to the global slowdown. However, many say that when the economy improves the price of commercial premises is certain to increase. For lease A level offices prices, ranged between $60-¬100sqm a month in 2008, have now fallen to $40-70. Similarly, office prices of B-level towers reduced to $30-35sqm a month from $40-45. Mean¬while, prices of C-level towers have reduced to $10-15 from $20-27sqm. VNN

Some provisional figures featuring activities in the market in 2009 : -
Activities Residential Office space Retail space
Launched 33 projects with 10,948 units 238,585 sqm 36,440 sqm
Sold/taken 5,169 units 154,458 sqm 29,289 sqm
Expected in 2010 27,383 units 385,668 sqm 137,868 sqm

020210-Petrovietnam Fertilizer and Chemicals Corp, Petrovietnam Finance Corp and Petrovietnam Oil’s VND758bn / $41m office building covering 1,750sqm ie $23,426sqm on Mac Dinh Chi in District 1 has 14 floors and 3 basements and offers 16,000sqm of space ie $2,562sqm and open in 2011. SGT

230210-Office rentals in HCMC have reduced against 2007 due to an increase of 38% in office space supply in 2009. Grade A office rent in the city is between US$55-60/sqm while grade B is around US$30. SGT

020310-Office rents of some buildings in the center of HCMC have decreased by nearly 53% against the office fever in 2007, the strongest decline in Asia. Some newly-built office buildings in the city have yet to be fully occupied due to low demand. SGT

070310-Some office buildings in the center of HCMC are offering monthly rents of only US$10-11/sqm. Most of the office buildings in the city had been renting space for US$20-25/sqm month. SGT

150310-The office market in HCMC provided 238,500sqm last year, and the absorption level was around 154,000sqm and rents appear to be bottoming out after last year's falling, and several deals for around US$30++sqm are being signed each month. Big projects will join the market this year, adding more new supply to the market. It is projected that vacant space will reach 170,000sqm, about 134,000sqm of new space and 37,000sqm. VNN

120410-Average office rentals in the 1st Quarter continue falling, by 3.6% against the 4th Quarter 2009 to around US$27sqm. Office occupancy increased a slight 2% to 85%. SGT

140410-Average office rent at all grades in HCMC and Hanoi continued falling in the first quarter of this year and is expected to con¬tinue the downtrend in the coming time because of abundant supply in the market. Average office rent at all grades and in all districts in the 1st Quarter of this year fell 3% from the previous quarter and 11% year-on-year. The office market recorded an average rent of US$61sqm for Grade A, US$29sqm for Grade B and US$22sqm for Grade C buildings. The decline in office rent could be attributed to an increase in supply. The 1st Quarter of this year witnessed total supply in HCMC's office market increasing by 5% with some 42,000sqm added taking the total to around 838,000sqm in 138 office buildings of all grades in the city, with 54% in District 1 alone. Office take-up was about 39,400sqm and the ma¬jority of office transactions occurred for small space generally below 100sqm. Grade B still holds a strong pref¬erence for both new entrants and existing tenants. The average occupancy for all grades achieved 89% however vacancy will increase as more products come onto the market this year with an additional supply of 315,000sqm by the end of this year, half of which comes from 3 notable projects : Vincom Tower, Bitexco Financial Tower and A&B Tower. SGT

190410-Vincom Centre will put 80,000sqm of Grade A office space in the market. It and the Bitexco Fi¬nancial Tower will be the major sup¬pliers of Grade A space in the next 12 months. Rent for Grade A space contin¬ued to soften in the 1st Quarter to $39.6/sqm, a quarter-on-quarter fall of 2% and 31% yoy. As a result, vacancies declined to 15.6% from the previous quarter's 19.9%. VNN

030510-There will be a spurt in the supply of office space in the second quar¬ter with an expected 11 new buildings with 98,000sqm set to open then. In the 1st Quarter, 1No. Grade B & 7No. Grade C buildings opened as total sup¬ply increased by 5%. HCMC has a total of 138No. office buildings of all grades, with a total area of around 838,000sqm. District 1 accounts for 54% while Tan Binh, ranked second after District 1 has 17%. The average rent across all grades and districts edged down by 3% QAQ and 11% YOY to to $30sqm. The average occupancy rate remained stable at 89% even though around 42,000sqm of space was added to the mar¬ket during the quarter. However, the majority of of¬fice transactions involved small spaces of below 100sqm. Grade B buildings were the most sought-after by both new en¬trants and existing tenants. Half of the 315,000sqm of new supply this year will come from three major projects - Vincom Tower, Bitexco Finan¬cial Tower and A&B Tower, all in District 1. District 7 will become a new business hub, contributing around 250,000sqm, or 20% of all incremental supply. This would see it take second spot in the city in terms of sup-ply behind District 1. In the first 2 months, 35 for¬eign direct investment projects were licensed with a total capi¬tal of $325 million. Real estate accounted for nearly 60% of the total amount. VNN

150610-Dragon Fly Corporation have opened a Grade B office with 12-storey at 60 Nguyen Dinh Chieu in District 1 with 4,400sqm at rents starting from US$20-$23/sqm. About half the spaces have been booked in advance. The corporation also owns Capital Place on Thai Van Lung and Empire Tower on Ham Nghi 2 serviced ¬apartment buildings. Because of the abundant supply in the market office rents have dropped 30%-50% compared with nearly 2 years ago. Approximately 40,000sqm of space was taken up in the first 3 months of this year. Total Grade A stock remains at around 106,000sqm with rents ranging from US$35-S$50++ sqm. Mean¬while, Grade B office stock remains at around 351,000sqm with rents ranging from US$18 to US$25++ sqm. In 2010 there is significant new supply of around 350,000sqm from buildings such as Vincom Center and Bitexco Financial Tower. New demand is forecast at 100,000-¬150,000sqm and Grade B and C will continue to be stable. Grade A rents should continue to fall to a sustainable level of US$30-$35++ sqm. SGT

200610-Hanoi and Ho Chi Minh City are report¬ed to have the highest office and accom-modation leasing costs for foreigners in ASEAN countries in a recent annual report in early 2010 by Japan External Trade Organisa¬tion. HCMC rents are around $57 per square metre per month for office leasing. This rent rate is behind only Hong Kong ($72.8), Mumbai ($70.8) and Shanghai ($64.8). However, Ho Chi Minh City has exceeded all other cities in the Southeast Asia, including Singapore with $46.4 and Bangkok with $19.8 per square metre per month. The office rents in Ho Chi Minh City were even higher than other big cities in Asia such as Seoul ($49.8) or New Delhi ($35.8) and equal to Beijing ($57.2).

260610-In the 1st Quarter the average rent for all grades and districts was recorded as $30sqm a 3% quarter on quarter decrease, compared to the 4th Quarter of 2009 and an 11% decrease year-on-year. VIR

Offices for lease : 2010 – Q1
Grade No. Bldgs sqm Occupancy-% Av Rent $/sqm.mth
A 6 100,000 88% 61
B 32 384,000 90% 29
C 100 354,000 87% 22
Total 138 838,000 89% 30
SGTW

020710-HCM City has a total of 138 old and new office buildings of all grades with space available for lease reaching 838,000sqm. District 1 has the largest space with 54% followed by Tan Binh District with 17%. However, the average rent is about US$30/ square meter/month, down 11% year-on-year. The huge surplus of office space is going to increase to as much as 315,000sqm by the end of this year, mostly in District 1. This district will con-tinue to take the leading position with supply making up 55% of the total, followed by District 7 with 250,000sqm. In the 2nd Quarter of this year, some 11 office building projects were put into operation with a total area of 98,000sqm while the 3rd & 4th Quarters will witness hundreds of thousands of square meters more opened to the market. SGTW

070710-HCMC has 147 office buildings of all grades at the moment, with a total leaseable area of around 952,000sqm, a 16% rise over the previous quarter. Some 11 new office buildings with a combined 129,000sqm began operation in the 2nd Quarter. Vincom Tower, A&B Tower and Bao Viet Building contributed to a quarter-on-quarter increase of 20% in the supply in District 1 and helped the downtown area retain its biggest market share of 57%. In spite of more supply, the average office rent for all grades and districts stood at US$32sqm, inching up 5% from the first quarter. The rate for Grade B offices grew up to 14% quarter-on-quarter. The company said the office occupancy of 88% did not vary much quarter-on-quarter although 129,000sqm of new space of all grades came online in April-June. The major¬ity of office transactions occurred for small space, usually below 100sqm, with Grade B still being a favorite option for existing companies as well as new investors who are keen on business in HCMC. Some 20 office buildings with a total of 153,000sqm would be available in the market by the end of 2010. SGT

100710-The office market across all grades, saw an increase in gross floor area (GFA) of 9.6% during the 2nd Quarter thanks to nine new buildings contributing 124,584sqm. Vincom Centre alone repre¬sented almost 76,000sqm. With companies unwilling to pre-let speculative develop¬ments, the addition of Vincom Centre resulted in a jump in Grade A vacancies to 31.9%. By contrast, Grade B mar¬ket saw the vacancy rate decrease to 10.3%, despite the addition of 2 new build¬ings which provided 25,600sqm. Absorption continued to be strong and improved signifi¬cantly on Q1. The 2nd Quar¬ter saw 72,726sqm of absorp¬tion, bringing the total in 1st Half of 2010 to 130,739sqm, close to the 154,458sqm ab¬sorbed in the whole of 2009. Given the arrival of Vincom Centre and the promotional rates that were offered to the rental rate for Grade A buildings de¬creased to US$37.51sqm from $39.60 in the 1st Quarter. This increase in space and de¬crease in rental prices was re¬flected in the Grade B and C of-fice markets which saw rental rate decreases of 7.95% & 3.12% respectively. By the end of 2010, the office market is ex¬pected to receive about 20 of¬fice buildings with total 153,000sqm. District 1 is still the economic centre of the City, so occupancy accounts for the highest market share at around 49%. Dis¬trict 7, especially, Phu My Hung Area, has invested heavily in infrastructure and the population has strongly increased, resulting in an expected 20% in¬crease of office demand. VNN

140710-HCMC saw an increase in GFA of 9.6% during the 2nd Quarter across all grades from 9 new buildings which provided 124,584sqm GFA. The most significant of these buildings was Vincom Centre, which provid¬ed 75,924sqm GFA making it the largest office building in the city. Absorption continued to be strong and improved significantly on the amount seen in the 1st Quarter. The 2nd Quarter of 2010 saw 72,726sqm of absorption. Absorption for the 1st Half of 2010 stood at 130,739sqm compared to 154,458 sqm in the whole of 2009. VIR

070810-A report for 2010's 2nd Quarter of Ho Chi Minh City's office market across all grades saw an increase of 9.6% in GFA during the quarter. The increase it office space was a reflection of the new buildings coming onto the market which provided 124,584sqm GFA, raising the city's total office supply to 1.4 million sqm. During the second quarter, Grade A rents were $37.5/sqm, 5.34% decline quarter-on-quarter, while Grade B rents posted at an average of $19.28/sqm dropping further 7.95% quarter-on-quarter. VIR

090910-Some 20 office buildings or more will be completed by the end of 2010 adding another 153,000sqm of supply. SGTW

220910-The 68-storey Bitexco Financial has leasing commitments of about 22% of the project's total office space. Rents at the tower were $45sqm on average based on the net internal area which equated to $37.5 per square metre on the gross area. This was in the middle of the current range for Grade A build¬ings, which stood between $32-$42. The tower's investment capital was originally $120 million, but ballooned to $180 million after being audited. The figure climbed to $240 million as a result of plummet¬ing inflation and escalating material prices in 2009 and was recently estimated to stand at $270m upon completion. VIR

121010-Office rent dropped some 3% compared to the 2nd Quarter since property owners were anxious about the risk of oversupply. The market witnessed asking rents in Grade A office segment dropped 3% to US$57, Grade B was down 2% to US$33 and Grade C also fell 2% to US$22sqm per month. However, average occupancy remained stable at 85% thanks to the arrival of new tenants and a shift from private houses to professionally-managed buildings. Oversupply and competition would continue to drag down rents and occupancy across all the three grades. Grade A office buildings are wait¬ing for a new wave of FDI inflow, while Grade B and Grade C buildings depend much on the health of domestic investment. The city's office market has 154 office buildings at all grades, offering nearly a million sqm of office spaces, with Grade B office more dominant with a 50% market share. SGT

211010-Total net absorption during the 3rd Quar¬ter was 62,110sqm net lettable area (NLA). Although this is slightly lower than the 2nd Quarter, year-to-date net absorp¬tion was 194,201sqm NLA, more than the entire 154,458sqm net absorption seen in 2009 and it is anticipated that the office mar¬ket will absorb up to 220,000¬-250,000sqm in 2010.

281010-Bitexco Financial Tower’s will join the market with some 37,000sqm of Grade A office spaces and some 8,000sqm for retail space. That commitment-to-lease tenants have filled up some 40% of the total office space in the building whose rents are offered from US$44 to US$64sqm. Retail rents are offered from US$78 to US$124sqm. During the 3rd Quarter, office rents were recorded from US$35 - US$55sqm for Grade A, US$20 - US$30 for Grade B and US$10 - US$15 for Grade C offices. With over 1.4m sqm of existing office space across all sectors in the city, a further 2m sqm under construction expected to come on line over the next 5 years. SGT

231110-IPC Tower is a $11.3m 21-story office in Phu My Hung supplying 14,200sqm of Grade-B office space by Tan Thuan Industrial Promotion Co with rents ranging from US$18-20/sqm. SGT

231110-There is some 1.4m sqm of existing office space across all grades in HCMC, and a further 2m sqm under construction or under planning and will come on line over the next 5 years. Office rents have dropped by half since the peak in 2008 when the market saw Grade A office offered at US$100sqm. Rents recorded in the last quarter ranged from US$35-55sqm for Grade A, US$20-30/sqm for Grade B and US$10-15/sqm for Grade C. The market saw vacancy at 15% in the last quarter. However, the absorption rate increased significantly compared to last year. Net absorption in the first 9 months of the year was recorded at some 194,000sqm, more than the entire 154,500sqm net absorption seen in 2009. SGT

050111-Current monthly asking rents across the grades are in the following ranges for most buildings (base rent only excluding management charge and VAT per square metre): Grade A - $30-$40, Grade B -$20-$30 and Grade C $20. As at the end of the third quarter 2010, the Ho Chi Minh City office market had just under 1.5 million sqm of office space split (Grade A - 241,000sqm, Grade B - 585,000sqm and Grade C - 655,000sqm) with overall vacancy at around 15 per cent. The next 24 months will see another one million square metres come online so that by the end of 2012, total supply could be around 2.5 square metres. Positive absorption for the first three quarters of 2010 at 194,000sqm and so if this continues, total absorption for the year could reach around 250,000sgm. The medium term outlook for rents is still fairly cloudy as even with 2.5 million square metres, Ho Chi Minh City office market is less than half of other regional centres. VIR

190111-Offices for lease in HCMC saw the vacant ratio exceeding 17.8% in the 4th Quarter of 2010. The city had nearly 227,000sqm of office for lease last year, up 50% from the previous year. SGT

240111-Some 214,000sqm of Grade A office space, over 134,000sqm of it occupied, and with another 80,000sqm available for leasing, the Grade A market is experiencing competition not from existing Grade A stock but from new Grade B buildings. Grade B buildings are offering good facilities in key locations with lower rent rates but more incentives, thus placing downward rent pressure on the Grade A supplier. The average rent for Grade A, as of the end of the 4th Quarter of last year, was around US$40sqm. However, this month the average rate has dropped to US$36sqm with occupancy of about 80%. The downward pressure from Grade B buildings, with average rent between US$20-30sqm is forcing Grade A rent down. But the level has not reached US$32.55sqm as seen in late 2005, when the market was in the upswing. The total net absorption for 2010 was some 227,000sqm, some 50% above the 155,000sqm of net absorption recorded in 2009 with 2011 to grow with some 250,000sqm expected across all grades. It is expected to see 280,000sqm of office space join the market in 2011 and some 1.1m sqm come on stream in the next 3 years. It is projected the Grade A office rents would come down to the same levels as other regional citiep such as Shanghai and Beijing with US$31-33sqm. SGT

150211-HCMC will have additional an 560,000sqm of office space within the next 2 years. Demand for office space in districts 4 and 7 will rise. SGT

160211-HCMC of¬fice market saw monthly rent continue dipping last year. This hit developers who were fighting for tenants through a range of incentives. The average asking rent for the office sector in the last quarter was about US$35sqm for Grade A, nearly US$19.5sqm for Grade B and around US$16sqm for Grade C. The market re¬corded a total net absorption of some 227,000sqm last year, some 50% above the 155,000sqm recorded in the previous year. The absorption is expected to continue to grow to 250,000sqm across all grades this year. It is expected to see another 280,000sqm of office space available on the market this year, and a further 1.1m sqm will come on stream in the next 3 years. SGT

Date : Sunday, 04 October 2009
Category : Realty - HCMC Retail


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200809-Vietnam's big retailers such as Intimex, Saigon Co-op Mart, Phu Thai, Fivimart and Hapro are being attacked by foreign rivals such as BigC, Metro Caslf & Carry and Lotte Mart, who are rich in capital; experience and new tech¬nology, said Hanoi Trade Corporation GD. The Vietnam Association of Retailers (VAR) said that foreign retailers could accept losses within a decade to secure a firm niche in Vietnam's potential retail market. "Meanwhile, Vietnamese retailers are mostly newly-established and do not have much capital. They cannot suffer such a long period of losses. Since BigC opened an additional retail outlet in Hue, its 9th in Vietnam Saigon Co-Op's turnover has strongly decreased. If Big C continues opening more retail out¬lets, I don't know what will happen to local retail¬ers." The VAR said the plight was attributed to localities' granti¬ng business licences to foreign retailers to open more than one retail establishment. "However, under current regulations, foreign retail distributors are still required to sell through a single retail outlet and it isn't easy to set up a 2nd outlet," the MoIT's Domestic Market Department head said. The right of distribution was associated with the establishment of an initial retail outlet only, with additional outlets only approved on the basis of the so-called Econom¬ic Needs Test (ENT). "This is a very effective tool to help Viet¬nam's retailers cope with more and more foreign rivals. However, many localities fail to apply the ENT, as they want to lure as many foreign retail¬ers as possible. The VAR suggested that MoIT be in charge of granting licences to foreign retailers wanting to open more than one retail outlet, and ENT criteria needed to be clearer to help create a transparent and competitive business market. However, it is quite difficult to build a shared set of ENT criteria, as localities vary in develop¬ment and geography. The MoIT said that locali¬ties were building their own sets of ENT criteria. In the coming time, the ministry would make detailed retail planning in 10 big cities. VIR

090909-Several dealers at large markets in HCM City have been trying to buy houses on streets and alleys near the markets, sending property values soaring. Market stalls, which are some¬times inconveniently small, have gradually, come to be considered more a place for meeting clients and full size shops better places to show samples and do deals, ac¬cording to merchants. Many vendors said they would stop trading at market stalls altogether once their clients be¬came used to shopping in stores nearby. Near District 5's An Dong Market the prices have skyrocketed in recent years more than two¬fold compared to the 2005-06 pe¬riod, to around 500 tael / $610k of gold per unit. At Tan Binh Market one spent 270 taels / $329k of gold to buy a house measuring 3.5m in width located on a small alley in 2008 and this year wants to buy the next house with similar area to widen the shop but the price is 400 taels / $488k of gold. VNN

100909-The market research firm Nielsen has forecast that modern trade, referring to the activity at super¬markets, convenience stores, com¬mercial centers and the like versus traditional markets, will see its share in Vietnam's retail market ex¬pand to 20% this year and 24% next year compared to 18% last year. "We expect modern trade sales contribution to total retail sales across the country to rise to 20% by year-end and 24% in 2010." Nielsen said the number of modern trade stores in the two largest cities, namely HCM City and Hanoi, grew 16% in 2008 to 42%, and forecast the number would continue to increase this year. Despite its strong growth, mod¬ern trade in Vietnam is still poorly compared with that in other na¬tions in Southeast Asia. Nielsen data show the share of trade for modern self-service outlets is 90% in Singapore, 51% in Malaysia, 48% in Thailand, 45% in the Philippines and more than 36% in Indonesia. The smaller share, however, means there is room for more players in Vietnam, a market where top five chains Saigon Co.op, Big C, Citi¬mart, Maximark and FiviMart take up the lion's share. Nielsen said international players had eyed the Vietnamese market and saw it as a potential destina¬tion even though the competition was increasingly fierce with the opening up of the market under the country's commitment to the global trade club WTO. SGTW

121009-Vietnam started to open up its retail market in 2007 and totally opened it in 2009 pursuant to WTO commitments. In the year to date, however, not a single new foreign retailer was licensed in Vietnam, and the market witnessed only lo¬cal and foreign retailers who had been licensed to invest in Vietnam years ago, including Big C, Parkson and Lotte. As of 2008, Vietnam had some 8,300 traditional markets and over 400 supermarkets and shopping malls compared to 10 supermarkets and 2 shopping malls in 1995. Modern retail channels have re¬cently accounted for 18%-22% of the retail market. SGT

121009-Executive Chairman of Retail Asia said retailing is a very significant part of the economy and is very much driven by the economy's expansion. Vietnam's high GDP growth is tremendous driver of the retailing industry. The Vietnamese consumers are also progressing in their lifestyle and in what we call the middle-class consumer popu¬lation, particularly in urban areas. However, there are a lot of chal¬lenges for retailing in the immediate future, relating to infrastructure, retail management and operation, skills and application of informa¬tion technology. Management skill is one of the key challenges because thatis going to drive howfast, broad and deep the growth of the industry is going to be. However, Vietnam will be able to take leapfrog and achieve what Singapore, Hong Kong, Malaysia and Thailand have accomplished in a much shorter time if the country can learn from their experiences. If we take 10 years or 30 years (to develop the retail industry), maybe Vietnam will take seven or 18-20 years. SGT

171009-The average rental price for retail space remained stable at around $105.3/sqm in downtown HCM City but the 4th Quarter is ex¬pected to see the opening of significant shopping centres, including Kumho Asiana Plaza in District 1 and Hemington and Everich in District 11, adding an addi¬tional 56,338sqm to the mar¬ket. VNN

191009-Viet¬nam's retail rental growth rates increased some 9.5% in the 3rd Quarter and some 19% compared to the same period 2008 so average asking rents in central business district department stores remains stable at some US$105/sqm per month at prime locations, while rents in some shopping centers outside the central business districts continue to fall. However, the strong rental demand will be eased pretty soon as some shopping centers with significant retail space will join the market in the 4th Quar¬ter. The Vincom Center Shopping Mall will supply the market with some 57,700sqm of retail space, with 3 base¬ments and 3 above ground levels that link to the 26 floor building. As per design, the 3 basements are for entertainment, restaurants, household appliances, home decor and fashion. Meanwhile, the above ground levels will be venues for shoppers who love international fashion and cos¬metic brand names. There are also food courts serving specialties and coffee bars for guests to relax and contemplate the city center from above. The developer also woos potential ten¬ants with a 40,000sqm parking lot basement, which will offer more con¬venience for shoppers. In addition to the space for retail service, Vincom Center Shopping Mall will provide the market with some 76,000sqm of Grade A office space. Besides Vincom's project, Kumho Asian Plaza is expected to join the market this year with two tenants, Debenhams, a department store from the UK, and Hard Rock Cafe. The retail market will see a significant supply in 4th Quarter as several shopping centers open to provide another 56,300sqm. Besides the Kumho Asiana Plaza project 2 other property projects in HCMC's Dis¬trict 11, The Flemington and The Everich, will add more new stock. Fashion and food and beverage remain the key demand drivers, and the food & beverage sector alone will account for over 30% of enquiries for retail space. As of the 3rd Quarter there are 22 developments with approximately 200,000sqm of retail space in HCMC. The market will have some 400,000sqm of retail space by 2011. SGT

271009-Retail shops have great future potential because currently only 6% of Vietnam’s population shop at supermarkets, while 80% in the US; 70% in EU; and 12% in China, according to VinaCapital. VNN

021109-There's a retail revolution coming to Viet Nam. The growing middle class of Vietnamese comsumers are becoming savvier and more discerning about their product quality and shopping ambiance. At the same time, the prices of mid-range goods are com¬ing down. Together, these pressures will modernise trade in the country. "Rising incomes over the last 10 years have dramatically changed the buy¬ing habits of Vietnamese consumers," said Kantar Worldpanel & TNS Viet Nam. "With 56 per cent of the population under 30 years old, Viet Nam has a large consumer market with young, demanding and newly sophisticated consgm¬ers." Retail sales in grew by 18-22% each year between 2003 and 2007. Despite the global fi-nancial crisis, total revenue from the retail sector in the first 8 months of this year rose by 18%. "As purchasing power has exploded, many con¬sumers have begun to prefer shopping in safe, clean and convenient, and sometimes indulgent places." Viet Nam currently houses around 230 supermar¬kets and hypermarkets, 23 trade centres, 165 wholesale markets and nearly 1m sqm of floor area under construction for retail business, according to Retail Chain. One key indicator of the changing retail landscape is the food industry, in which consumers are increasingly patronising brick-and-mortar stores instead of traditional markets. But the Economic Needs Test (ENT) is an instru¬ment allowed by the WTO to limit foreign access to domestic markets by requiring them to apply for a separate licence for each subsequent outlet after the first, with approvals made on a case-by-case basis based on 4 criteria: the number of existing outlets, market stability, population density and the conformity of the project with the province's planning. VNN

121109-The average rental for floor space in commercial centres in the city now is $100/sqm or 2.5 times the rent for an office. In downtown Ho Chi Minh City alone, commercial complexes are present in new buildings with most of them being smaller than 20,000sqm intended mainly for tourists and people on high incomes. It is expected that the city's retail sector will look different in 2010 when the city will have the Vincom commercial complex cover¬ing 58,000sqm. By mid-2010, when Vincom is in operation, the total floor space in commer¬cial complexes in the city's central District 1 will possibly be 150,000sqm and the whole city's retail floor space expected to be 250,000sqm. Pacific Star, one of the leading real estate investment companies in Asia, has entered Vietnam's property market with its first Sunrise City project, only 10 minutes from down¬town Ho Chi Minh City, with 70,000sqm of floor space by 2012 when it is completed. VIR

Parkson Flemington Trade Centre is the 4th shop¬ping complex in HCMC and has 6 floors with 26,000sqm developed by Thuy Duong. The center is located at 182 Le Dai Hanh in District 11 and includes commercial space, entertainment areas, offices and a high-end apartment complex. The project is near the Phu Tho Race Course. The center is considered the largest shopping center in Vietnam. “Our strategy is to continue opening 3-4 shopping centers a year across Vietnam's big cities in the near future." The company currently operates Parkson Saigontourist in District 1, Parkson Hung Vuong in District 5, Parkson C&T in Tan Binh District and shopping centers in Hanoi and in Haiphong. SGT

301209-By the end of the 1st Quarter of 2009, HCMC had 25 com¬mercial centres, 57 retail supermarkets and 3 whole supermarkets with a total area of 430,000sqm but the demand for international standard retail space, especially in the downtown area, will increase over the next 3 years. The city is to see more retail space on the way from to-be-launched residential areas and apartment build¬ings, such as the Sun Rise City (District 7), Royal Garden (District 7), Dragon Tower (Nha Be district) and Kenton Residences (Nha Be district). Sun Rise City alone will have about 70,000sqm for retail and services and Dragon Tower 9,000sqm. VIR

Some provisional figures featuring activities in the market in 2009 : -
Activities Residential Office space Retail space
Launched 33 projects with 10,948 units 238,585 sqm 36,440 sqm
Sold/taken 5,169 units 154,458 sqm 29,289 sqm
Expected in 2010 27,383 units 385,668 sqm 137,868 sqm

150110-The HCMC retail market has re¬corded an average occupancy rate of around 95% and average prime rents in the CBD are around US$99/sqm/mth with the highest up to US$250/sqm a month in prime locations in Grade A buildings. Meanwhile, rents in retail proper¬ties out of the CBD average out at around US$46.5/sqm. The retail market saw around 18% growth in retail sales. The market witnessed numerous mid-end and high-end brands enter¬ing Vietnam in the last year, such as Naf Naf, Morgan de Toi, Mexx, Hard Rock Cafe and Debenhans among others. However, some large scale international brand operators such as Tesco or Wal-Mart remain on the sidelines. There are 22 shopping centers and department stores in HCMC with 256,000sqm of gross floor space, and the retail market is expected to see some 130,000sqm of retail spaces supplied in 2010, with half in the CBD area. Vincom Center alone will provide the mar¬ket some 53,700sqm and the Bitexco Financial Tower 20,000sqm. Some 80% of the total space in the Vincom Center project has been leased with rents at some prime lo¬cations at US$200sqm per month. SGT

180110-Parkson Viet Nam recently opened the country's largest shopping mall, the 26,000sqm, Parkson Flemington, in HCM City's District 11. It is the Malaysian retail chain's 4th outlet in the city and 6th in the country; it owns 4 and manages the other 2. General director There were plans to add 2-3 more outlets every year, including 2 in Ha Noi this year, because of the chain's successful performance. The hard part for him is to find large spaces in the right places. The CBD (central business district) saw some major new supply 2009 with the opening of Vincom Galleries in Ha Noi and Kumho Asiana Plaza in HCM City, both of which were launched with an occupancy rate of more than 80%. In HCM City the vacancy in CBD shop¬ping centres stood at only 0.7% at the end of 2009, by which time the aver¬age rent had risen by over 25% to more than US$97sqm. But at Vincom Tower in HCM City's District 1, which is expected to o en in late April, the price has topped $200. It has already leased out 80% of its over 50,000sqm of retail space. The Bitexco Financial Tower is also ex¬pected to be completed soon in the CBD. These 2 buildings will add around 70,000sqm to the existing 256,000sqm of retail space at the city's 22 shopping centres and department stores. Buildings to opening the city's other areas include the Lotte Everich and Flemington in District 11 and Crescent Mall in Phu My Hung. VNN

250110-Rents in downtown HCMC are high at about VND180m / $9,735 for 60-70sqm shop and hard to find ie $139-162sqm/mth. SGTW

250110-HCMC has a total retail stock of 256,025sqm at some 22 shopping centres and department stores. The city's retail space will more than double in the next 2 years and total supplies until 2013 may reach 740,000sqm, tripling the current amount. Non-central business district (CBD) retail spaces will increase by almost 50% in 2010, and 7 times more in 2013. Prime retail space in the CBD was $99sqm and average prime rents outside of the CBD was $47sqm, with the highest rents in the CBD reaching $250. But retail businesses at present are only robust in CBDs in both Hanoi and Ho Chi Minh City. One example is the high vacancy rate in District 7's Saigon Paragon which was launched in early 2009. Retail projects to' come online in the near future include Vincom Cen¬tre (53,7000sqm), Bitexco Finan¬cial Tower (20,000sqm), Saigon M&C Tower (23,000sqm), the Everich (24,000sqm), the Crescent Mall (44,000sqm), Sunrise City (70,000sqm), 600,000sqm Metropolis complex, Sports City (80,000sqm) and Saigon Finan¬cial Centre (186,500sqm). VIR

2320210-Retail space rent in HCMC has slightly increased with the highest rate reported at Diamond Plaza at US$220/sqm mth. SGT

280210-In recent months, interna¬tional brands have scrambled to secure scarce retail space in down¬town commercial centres while restaurant chains are being opened on major streets nationwide. Average occu¬pancy rates in HCM City retail spaces now stood at 95%. With the rising demand for retail space, prices have been forecast to continue climbing in 2010. Average rental prices for retail space in Ha Noi and HCM City currently stand between US$60-100/sqm. In central business dis¬tricts, rents have even risen to $250 per square metre per month. In HCM City's Vincom Centre, rents now average $200/sqm and 80% of available retail space has already been leased, even though the centre is not due to open until the end of April. In HCM City a further 740,000sqm of retail space will be developed over the next 3 years, doubling current sup¬ply. VNN

060310-Saigon Co.op is seeking to expand its business scale beyond traditional supermarkets by ready¬ing itself for a huge shopping mall project costing some US$200m in District 7 with Singapore's MapleTree and Saigon Transportation Mechanical Corp. (Samco). The three partners will hold respective stakes of 65%, 30% and 5% in the shopping complex cover¬ing over 42,000sqm and including a 7 story shopping mall with more than 70,000sqm of floor space and a 20-story office building with more than 100,000sqm. SGT

160310-US sandwich chain Subway plans to set up under the franchise model, with investment capital of around US$100,000 for the first outlet. "We expect to open 25 stores in the next 5 years.” Worldwide sales amounted to US$13.8 billion. SGT

190410-Vacancy is low with shopping centres reporting a fall to 7.3% from the previous quarter's 7.7%. The market continues to strengthen as retailers are forced to compete for the few prime loca¬tions that are available although Vincom Centre will open this month with 58,000sqm of retail space. Rentals for some premium space in the building's ground floor could be as high as $250/sqm, compared to an average $109 in the central business district. VNN

250410-Saigon Co.op inaugurated a new store in the city and will open another in Hanoi bringing the total nationwide to 44. Co.opMart Phu Tho at the Phu Tho apartment building in HCMC's District 11 is the 24th outlet of Sai¬gon Coop in the city. Saigon Co.op has invested VND50bn / $2.6m in the 6,500sqm store. The new store includes an entertainment area, fashion stores, a fast food joint and a restaurant. Saigon Co.op last week also opened its 9th convenience food store in HCMC. The new Coop Food store is locat¬ed at 405 Hoang Van Thu Street, Tan Binh District. Open from 6 a.m. to 9 p.m. every day, the new store stocks a wide range of fresh, processed, semi¬ processed, cooked and frozen foods. It plans to increase the number of supermarkets from the current 44 to at least 52 by the end of the year, and that of newly established food stores from the current eight to 20. In the medium term, it targets to scale up the number of its supermar¬kets to 100 by 2015, besides opening 12 more convenience food stores in HCMC, Saigon Co-op obtained over VND8.57tr / $448.7m in revenue last year, up 35% on 2008, with the Co.op Mart chain contributing over 96.9%. It expects revenue this year to rise 34% to VND11.5tr / $602m. SGT

030510-The 26 storey Vincom Center complex project, which covers an area of some 7,400sqm is designed with 57,700sqm for retail spaces, some 80,000 Grade A office spaces and a section for serviced apartment. Besides, three basements will be used for services of entertainment, restaurant, house¬hold appliances, home decors and fashion sections. Some 90% of shopping mall space has been filled on opening of which 70% opened their stores on the first day. There was no new supply in the 1st Quarter. In the CBD, department store rents increased 3.3% to US$108.8sqm and shopping center rents increased nearly 1% to US$98.10sqm as compared to the previous quarter. Vincom Center joined the retail market with the highest rates within the CBDs, from US$200 to US$250sqm per month. At present there are 493,000sqm for retail spaces in HCMC. These spaces come from 6 department stores, 17 shopping centers, 6 retail podiums, 60 supermarkets and 3 wholesale markets in the city. Some 100,000sqm of new supply will enter the market this year and more than 400,000sqm of new supply to enter the market from 2012 onward. SGT

060610-The Bitexco Financial Tower will join the market with average monthly rent at US$90sqm. The highest retail space rent is seen at the newly opened shopping mall Vincom Center. SGT

210610-According to the Ministry of Industry and Trade, the national total retail sales of consumer goods and services in the last five months reached VND620 trillion (US$32.6 billion), a year-on-year increase of 26.9 per cent. The fig¬ure is estimated to increase by 20 per cent to VND 1.44 trillion (US$75.8 billion) by the year-end. At least 15 major foreign retail¬ers, including Wal-Matt, Carrefour, Tesco, Circile, Metro Cash&Carry, and Casino, have set up business or plan to do so in HCM City. The US-based A.T. Kearney Alliance said the market was expected to have a turnover of US$85 billion by 2012, with many domestic and foreign retail firms intensifying investments in hope of expanding market share. The Citimart chain owned by the Dong Hung Company typi¬fies the trend. The company has just bought four Family Mart su¬permarkets from Parkson Viet Nam, increasing its total supermarkets to 30. This is the first time in Viet Nam that a domestic re¬tail company was a franchise buyer from a foreign company. Citimart General Director Nguyen Anh Hoa said Citimart decided to buy the Family Mart supermarkets of Parkson since most customers of the latter are high-income earners. Many other retail enterprises have also focused their invest¬ments and expanded retail sys¬tems. Sai Gon Co.op plans to open 10 new supermarkets this year, increasing its total number to 50, with a yearly turnover of about VND1 1.5 trillion ($605 million). Metro Cash&Carry will con¬struct two new supermarkets in the provinces of Binh Duong and An Giang. Parkson Viet Nam also plans to open two new trade cen¬tres in Ha Noi and Da Nang. Japan's Family Mart retail com¬pany is due to increase its net¬work to 100 in Viet Nam, with the first five new convenience stores in HCM City. The VND1.8 trillion Crescent Trade Centre of the Phu My Hung Joint-Venture Corporation will make its debut with about 200 stores by the end of 2011. The strong development of re¬tail systems in the country has led to higher prices for retail space in HCM City, where the price has risen by 3 per cent downtown and 4 per cent in District 7 and Binh Thanh and Tan Binh districts. A.T. Kearney Alliance said Viet Nam's modern retail system ac¬counted for only 18-20 per cent of the domestic retail market's struc¬ture. VNN

210610-Recent market surveys conducted by market research companies show home appliances sales in Vietnam could potentially reach US$3bn per year and that annual growth is forecast at 21-25%. SGT

200610-Average rents in the central area of HCMC have reached US$100sqm. The city is the magnet for many big investment projects by big retail groups. SGT

090710-According to the HCMC Industry & Trade Dept the city now has 15 trading centres of which 9 are foreign owned. VIR

100710-Retail rental rates within the cen¬tral business district hit an all time high of $120.90, increasing from $100.50 in the 1st Quarter. Vincom Centre added 58,000sqm or an additional 39.5% of retail space to the CBD, giving homes to new retailers to the Vietnamese market in¬cluding Just Cavalli, Jimmy Choo and BCBG. Away from the CBD, rental rates showed a decrease in the period under review, decreasing by 3.3% points to $46.2sqm. Given the increase seen in the 1st Quarter this shows that there is some fluctuation within the non-CBD market and that ulti¬mately retailers are retaining their preference for CBD loca¬tions. According to Savills, Q2 re¬corded 4 new retail centres: Vincom Centre Shopping Mall, Lotte Mart Phu Tho, Maximark Ba Thang Hai, and Co-opmart Phu Tho, with around 113,000sqm. At present, there are 6 de¬partment stores, 19 shopping centres, 6 retail podiums, 61 supermarkets and 3 whole¬sale markets in the city with a total area of approximately 602,000sqm. Occupancy rate this quarter for the whole of the retail mar¬ket was at 96%, a slight increase of 1% q-o-q. This year 100,000sqm of new supply is ex¬pected to enter the market while 2012 and onward will be big years as 429,000sqm of new supply are ex¬pected with the completion of some major projects. VNN

140710-Vincom centre pro¬vided 57,640sqm GFA to the market lead¬ing to retail space within the CBD increasing by 39.5%. Retail rental rates within the CBD hit an all time high of $121/sqm, increasing from $101/sqm in the 1st Quarter, while away from the CBD, rental rates showed a decrease in the period decreasing by 3.3% to $46.2/sqm. VIR

190710-The market got four new retail cen¬ters -Vincom Center Shopping Mall, Lotte Mart Phu Tho, Maximark Ba Thang Hai, and Co.opMart Phu Tho in the 2nd Quarter which provide the market with some 112,700sqm of retail space. As compared with markets in comparable regional cities, the HCMC retail market is still small, with 6 department stores, 19 shop¬ping centers, six retail podiums, 61 supermarkets and three wholesale markets having a total area of some 602,000sqm. Occupancy in the retail market in the 2nd Quarter was 96%, a slight quarter-on-quarter increase of 1 percentage point. All 6 department stores reported full occupancy. With an extra 57,640sqm of gross floor space being added to the market, the aggregate retail area in the central business districts in¬creased by 39.5%. Fashion, lifestyle and food and beverage retailers continued to dominate leasing activ¬ity with 46,250sqm of retail new absorption in total. Average retail rents in the cen¬tral business districts were around US$121sqm increasing from US$100 in the first quarter. This was boosted by the rents achieved at Vincom Center ranging between US$115-US$231sqm. Meanwhile, rental rates outside the central business districts fell by 3.3% points to US$46sqm. Some 100,000sqm of new supply are expected to enter the market this year. From 2012 onward, more than 429,000sqm of new retail space is expected to enter the market upon completion of some major projects. SGT

210710-At present, there are 6 department stores, 19 shopping centres, 6 retail podiums, 61 supermarkets and 3 wholesale markets in the city with a total area of approximately 602,000sqm. Approximately 100,000sqm of new supply is expected to enter the market in 2010. The year 2012 and onward will be years to see more than 429,000sqm of new supply are expected to enter the market with further expansion into suburban districts. Notably District 7 is expected to record more than 37% of the new supply in the next few years. VIR

140910-“We have seen unreasonable increases in rents in central areas such as Districts 1 & 3,” with reported escalating rent increases hitting as much as USD$96.6-123.8/sqm. VIR

211010-Retail rents in non-¬CBD locations continue to trend downward as tenants new to the market prefer the CBD. For example, Zen Plaza (District 1) is renovating and re-arrange its entire tenant mix. The 3rd Quarter rentals at depart¬ment stores remained large¬ly flat with average rents at the 6 department stores $64.90sqm, a slight decrease from $65.20sqm at the end of the 2nd Quarter. Prime shopping centre rents in the CBD increased 7.1% to an average of $132.70sqm. Shop house landlords in the CBD are taking advantage of the limited supply by increasing asking rents. VIR

281010-Bitexco Financial Tower’s will join the market with some 8,000sqm for retail space. Retail rents are offered from US$78 to US$124sqm. SGT

291110-There is some 545,000sqm of retail space in the city, including at su¬permarkets, retail podiums, department stores and shopping centers, The market saw vacancy down and central business district rents up 7.1% to an overall average of nearly US$133sqm per month. Mean¬while, the non-central business districts continued to see rental rates softening to an average of US$39sqm per month as retailers continued to prefer the city center. The food and beverage sector continued dominating the expansion in the market. Strong demand is expected to continue in the central business districts until more retail space from Bitexco Financial Tower, Times Square and M&C Tower comes online in the next two years. Meanwhile, districts 2 and 7 will get new retail com¬ponents within residential developments. It is forecast that the HCMC market will have an extra 245,000sqm of retail space by 2011, most of it located outside the central business district areas. However, over 900,000sqm of new retail space will enter the market in 2012 and 2013. SGT

121210-Japan's Ministop entered a partnership with G7Mart to develop a system of convenience shops in Viet Nam. Initial investment for the system of 500 shops nationwide by 2016 is US$10 million. Vietnam is the fourth country Ministop has selected for expansion outside Japan. There're currently 2,032 Ministop convenience stores in Japan, 1,381 others in South Korea, together with 320 and 12 stores in the Philippines-and China respectively. SGT

Date : Sunday, 04 October 2009
Category : Realty - Vietnam General


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290510-Globally, the risk level in real estate investment is gauged from the proportion of monthly income spent on housing. For many countries in the world, this ratio stands at round 33% for the middle class, which means a household pays 1/3rd of its income for housing. In Viet Nam, however, the fig¬ure stands at 80%. VNN

290510-The Construction Minis¬try has estimated total invest¬ment in a high-rise apartment (20-25 floors) in Ha Noi us¬ing market prices of late 2009, including reasonable profit, at around VND16.7¬-17.5m / US$800-900sqm. However, the price for such apartments in the market is almost double this figure. VNN

310510-Government agencies are seek¬ing ways to control property prices, which are far exceeding their real value, according to a report from Government real estate mar¬ket experts. A group of interdisciplinary experts specialising in real estate recently submit¬ted the report, which focuses on housing de¬velopment and the real estate market in 2009, to Deputy Prime Minister. Expenses needed to build 20-25 ¬storey buildings in Ha Noi are on average VND16.7-17.5m / $874-916sqm while the common price is much higher, standing at between VND28-32m / $1,466-1,675sqm according to the report. Experts blamed the price difference on several reasons, one of which was the habit of "mob" investing, with many people flock¬ing to buy a certain kind of property only because they saw many others do the same. Lack of information has also influenced buyers who were not aware of the real value of property. In addition, the poor management abil¬ity of real estate market management agen-cies has contributed to chaotic market pric¬ing. The report also says that although the country's per-capita housing area in 2009 doubled compared with the figure recorded 10 years ago, there were still 7 million people in urban areas who needed to buy or rent housing. To meet this demand, the country should build an additional 150m sqm of housing, which would require combined capital of VND3tr / $158m to VND4tr / $210 million. In Ha Noi, about 5.5m sqm of housing is needed, in addition to about 11,000 accommoda¬tions for workers in industrial parks. HCM City needs about 5m sqm of housing and more than 50,000 accommodations for workers. The real estate market faces a lack of houses at affordable prices and suitable sizes for a majority of customers. Houses for rent were in great demand in 2009, but they accounted for just 6.3% of the country's total housing fund. VNN

310510-Developers of low-cost housing projects in the country still meet challenges in capital mobilization, site clearance and construction quality. The nation has 33 low-priced condo projects with combined capital of VND2.5tr / $130.9m to accommodate around 55,000 residents ie $2,380 each. SGT

310510-The MoC has asked the HCMC government to pilot construction of condos measuring 20-45sqm for single low-income earners. SGT

310510-A working team for a resettlement program in HCMC has asked the local government to extend the installment payments for buyers of resettlement accommo¬dation from 10 years to 15-20 years. SGT

020610-Local property developers still need capital for around 200 low cost housing projects said the MoC. SGT

020610-Around VND192tr / $10bn of banking capital has run into the property sector, up 4.5% against late last year. The growth rate accounts for nearly 50% of total outstanding loans of the banking industry. SGT

060610-According to HCMC's Depart¬ment of Natural Resources and En¬vironment, no real estate company has paid the new amended land use fee regulations since the supplemental regulations came into force last October. VNN

060610-"Viet Nam has a population of 88m this year with an ur¬ban population of 24m. In 2050, it will have 120m people with urban population of 65m and 150m people in 2100 with urban popu¬lation of 120m people," according to Hyder Consulting. By 2050, HCM City and Ha Noi would have 20m people each, as many as Shanghai and Beijing now. VNN

170610-Due to the lack of funds 144 social housing projects have been put on hold. As of May 31, only 57 out of the 201 applicants for low-interest loans have been successful and only 33 hous¬ing projects with a total investment of VND2.5 trillion (US$132 million) for low-income earners that would have benefited some 55,000 resi¬dents, have got underway. Mean-while, 97 other projects have been. put on hold due to a lack of capital. In terms of housing projects for workers, 24 have begun, worth a to¬tal investment of VND2.6 trillion ($138 million). These will provide accommodation for 125,000 work¬ers. However, a shortage of funds has halted 47 other schemes. The total number of registered housing projects for workers is 264 with a total investment of VND60 trillion ($3.2 billion). A further 263 housing projects for low-income earners with an investment of VND72.7 trillion ($3.9 billion) have also been registered. VNN

200610-With a person earning around $526 per month, even borrowing money from banks for 20 years is very difficult to purchase an apartment ranging from 72¬130sqm in the mid to low-end apart¬ment projects, that range from $900¬$1,300 sqm.VIR

070710-Vietnam has 632 new urban areas covering over 100,000he including 294 projects in the south¬ern region, according to the Ministry of Construction. Most the projects are less than 200he and only 14 ones are designed to cover over 1,000he. SGT

070710-The Central Steering Committee for Housing Policy and Real Estate reported strong recovery of the local realty market recently with stronger capital inflow and many low¬ cost housing projects. The sector hit US$7.6 billion in FDI in 2010 or over 1/3rd of the nation's total FDI capital. SGT

150710-Earlier in 2010 outstand¬ing loans for the property segment reached nearly VND219tr / $11.46bn - a 36% jump compared with the same period in 2009. FDI pouring into the property seg¬ment registered at US$7.6bn - ac¬counting for 1/3rd of total FDI the country attracted. SGTW

170710-According to a recent sur¬vey by the Association of Cities of Viet Nam, 8 out of 9 new urban areas ex¬amined did not have a nearby market, while seven of them didn't have a state school - and none of them had a clinic. The lack of social infra¬structure in big cities like Ha Noi is chronic, but little has been done about. VNN

280710-The Ministry of Planning and Investment said the entertainment sector had grown rapidly, particularly in the south. There were 121 entertainment FDI projects with a combined regis¬tered capital of US$3.5 billion launched in the first 5 months of this year, representing almost half of the country's total FDI. Of the projects launched this year, 67 were in the south and 30 in the north. VNN

300710-Anh Tuan JSC’s low-cost condo project in Ca Mau would cost some VND30bn / $1.57m to develop with 2 blocks of 6 storey buildings with 112 apartments from 36-42sqm each with selling prices lower than VND350m per unit / $18,325 ie $436-509sqm. SGT

060810-A forum titled "Development of the Ha Noi Real Estate Market” estimated the market would need US$130bn in the next 10 years. But the trickle of capital from project owners, civil groups and the Government coupled with limited bank credit for the industry is making the target very elusive. The real estate industry is as much as 70% dependent on bank credit. Owner equity contrib¬utes just 15-20% the remain¬der is mobilised from individuals, non-property companies and the Gov¬ernment." The banks injected about VND218.89 trillion ($11.52 billion) into the property market to June 30, up about 36% against the same 6 months of last year. About 65% of all real es¬tate loans were made in Ha Noi and HCMC. The amount of bank loans for the real estate market will prob¬ably rise slightly as a result of the increase but the amount of credit that goes to real estate will re¬main at about 11% of all loans. VNN

070810-According to a report released by the Viet Nam Report Company, only 38% of customers that purchase real estate in Ha Noi for residential purposes and 62% are investors. The report claimed that 48 per cent of the investors purchase properties to make fast profits, while the remaining 52% are more interested in the real estate's long term potential. The document states that 44% of real estate investors use their own personal funds to finance their purchases and about 35% of investors rely on loans from their friends and relatives. Only 20% of investors admitted to having borrowed money from banks to invest in the industry. VNN

120910-Over 100 low-in¬come housing' projects are planned or under construction, but would-be residents are still waiting on specific guidelines on how to qualify for the Government's public housing programme which aims to provide affordable housing for 60% of col¬lege and university students and a 50% all industrial park workers by 2015. The country currently has about 1.5 million industrial park workers and 33 million students at universities and colleges. The number of stu¬dents in HCMC would reach a million by 2015. Around 60% would need dormitory hous¬ing, creating demand for 75,000 apartments at an occupancy of 8 students per apartment. Some 30 projects for workers have begun, at a total estimated invest¬ment of US$134 million with a total area of 750,000sqm, so these projects are expected to provide accommoda¬tion for nearly 125,000 workers by next year. Another 55,000 low income earners have already been pro¬vided housing in 33 projects with a total area of 655,000sq.m, with prices of $360-515/sqm in Ha Noi. Prices of VND350-500 million ($18-25,770) per 35-65sqm apart¬ment represent a huge burden on people with low incomes, although people will be able to pay through mortgages over 20 years at favourable interest rates. The ministry would is-sue criteria defining eligibity for those with monthly incomes of less than VND5 million ($258). VNN

150910-Arti¬cle 8 in the new Circular 16/2010 allows developers to mobilise capital but capital raised via indi¬viduals or groups cannot be over 20% of the total investment capi¬tal of a residential project. The num¬ber of residential units for these indi¬viduals or groups can occupy only 20% of total housing units in the under construction project. The circular also provides that each individual or household can sign only a capital contribution con¬tract with a developer in a city or province. The head of MoC's Housing Management Department, said: "I believe the cir¬cular' regulations will give the prop¬erty market more transparency and sweep short-term investors and spec¬ulators out of the market." But the chairman of Vietnam House said "It is difficult for the gov¬ernment to prevent short-term investors or speculators joining the market by the circular as the investors can use the personal information of another one to sign into the contribution contract. Vice versa, the circular would prevent capital from flowing into the market, restraining its development." VIR

200910-Property owners would face penalties if they price their properties in U.S. dollar instead of Vietnam dong. However, the current maximum penalty of VND30m / $1,538 is too low. SGT

200910-The MoC said out-standing property loans, as of late July, were around VND210tr / $10.77bn, an increase of some 14% and a decrease of 2% in non-performing loan rates compared to late 2009. Real estate was still an attractive sector for FDI with figures of US$2,360m in the first 8 months of 2010. SGT

240910-Around 194 low income housing projects at a total cost of VND28tr / $1.47bn have been registered for construction so far. Some 170,000 apartments with 7m sqm will be built to house around 700,000 people. VNN

041009-The Deputy Direc¬tor of An Binh Bank said that as the risk (lending) coefficient rate for the property sector is up from 150% to 250% in line with new rules, the bank is considering hiking lending rates. He said buying a house requires a big sum of money and that with a current interest rate, homebuyers who borrow from banks cannot pay the monthly interest. Therefore, those who buy apartments for ac¬commodation will face problems if they do not have a big amount of savings. He added low interest rates will sup¬port home buyers, project develop¬ers and even banks. In contrast, high interest rates will put pressure on borrowers, and once they fail in their payments, banks will face liquidity risks. He suggested inter¬est rates should be 8% to 10% per year to support different sectors including property. According to the central bank, outstanding loans for the property sector had reached VND218tr / $11.18bn by late September, up 18% from late last year. Like other market observers he said abundant supply in the condo market will increase pressure on de¬velopers. SGT

091010-A survey found that nearly 62% of the 500 questioned consumers in Ha Noi had bought real estate simply to resell it at a higher price, and that 44% of buyers had invested their own money in buying property; 35% bor¬rowed from their friends and relatives; and about 20% used bank loans to buy property. VNN

111010-Enterprises must pay VAT and income tax for earnings from transferring rights of capital contribution to property projects. It means that the transfer of the right is considered a transfer of real estate. SGT

111010-The HCMC government has submitted a proposal to the Ministry of Finance suggesting that rental prices be paid depending on purposes of land use. Accordingly, rental fees are suggested to be based on market prices. SGT

161010-It is estimated that the population will increase to 10m in Hanoi and 12m in HCMC by 2030. If the housing standard of 15sqm per capita is applied, the two cities will need some 160m sqm of housing to meet for the demand. SGT

311110-Only 1% of the nation's outstanding loans was reserved for Hai Phong's real estate lending in 2009 while in HCMC and Ha Noi the figures are 47% and 17% respec¬tively. VNN

291110-Most social housing projects had started only when a Government Reso¬lution to promote this type of project was issued in 2009. Although 300 social hous¬ing projects worth VND55tr / $2.75bn were now underway, the number was small against - the more than 2,500 hous¬ing projects; new urban projects and other real-es¬tate projects across the coun¬try. These occupied a total of about 100,000ha. Almost 500 FDI funded real estate projects with registered capital of more than US$40bn were re¬ported as of the end of 2009. FDI in real estate totalled $2.5b or 21.8% of all newly registered FDI in 2009. The average size of a real estate project is almost $145m. The national housing stock has increased by 700m sq, including 225m sqm in urban Viet Nam during the past 10 years. The amount of urban housing has averaged a yearly increase of 15%. Housing and new urban precincts deliver about 1.2m sqm and more than 3.5m sqm in HCM City. Viet Nam's housing provided 16.7sq m per head of population – 19.2sqm in cties and 15.7sqm in the countryside last year. VNN

291110-Vietnam as of the end of October had US$12.8bn in FDI capital of which the real estate sector attracted US$2.8bn. This included US$2.7 billion in fresh capital and US$132 million for operating projects. SGT

291110-The MPI predicted that by the end of 2010, Viet Kieu real estate investments would make up around 70% of the total remittances. VIR

031210-Land management. corruption is still alive despite great efforts to kill it. According to a survey recently con¬ducted by the Sweden and Danish embassies and the World Bank, land management and use corruption in Viet¬nam was worsening, as 85% of the surveyed households said there was corruption in this field and 30% of the targeted businesses said they had to give bribes to get land use certificates. VIR

121210-A population and housing survey conducted in 2009 shows that 86.3% of houses in Viet Nam were either makeshift or not built for long-term use. VNN

151210-Surveys show that it takes 127 days on average, or even 1,290 days in some cases, to process a land-related ap¬plication on the ward and commune levels. A member of the public has to spend VND4-85m / $205,$4,359 to get such an application approved quickly. More than 30% of the applicants said they had to bribe district-level offi¬cials in charge of one-stop administrative matters. Fur¬thermore, over 50% and 44% must turn to an intermedi¬ary for help regarding land ¬use right renewal and land transfer, spending VND9m / $462 and VND2m / $103 per case respectively. Ac¬cess to information, which should be widely available, A study jointly undertak¬en by the Embassy of Swe¬den, the Embassy of Den¬mark, the World Bank and Transparency International indicates that 85% of the sur¬veyed households are aware of corruption in land-use management and 30% of en¬terprises must resort to brib¬ery to obtain the certificates they want. The World Bank points out loopholes in Vietnam's anti-graft strategy. These shortcomings include the conflicting roles of people's committees, which make decisions on land use and combat corruption at the same time. Even pro¬vincial inspectors are also under local people's com¬mittees. Stamp¬ing out administrative mo¬nopoly is essential. Land evaluation and zoning, as well as project appraisal, must be undertaken by in-dependent organizations. SGTW

261210-Viet Nam needs more than VND2.2tr (US$110 billion) in the next 5 years to develop housing, ac¬cording to a report recently released by Ministry of Construction. Ministry experts came up with the figure by assigning 21.5sqm of floor space per capita. The report analysed data from last year's general demographic census which projected that the country's to¬tal population would be more than 90m in the next 5 years. This increased population would need about 2m sqm of housing in the next 5 years. Although Viet Nam ranks 8th out of the 10 ASEAN countries in terms of the percentage of the population liv¬ing in urban areas, its urban popula¬tion has experienced an average an¬nual growth rate of 3.4%. Currently, around 14% of city¬ dwellers rent while the rate for the population as a whole is 6.5%. The report pointed out that make¬shift housing is on the rise in cities across the country and attributed this to an increasing number of migrants from the countryside needed simple housing. Housing for the low income sector was a now a pressing issue and needed more Government's attention. SGT

271210-Outstanding loans for real estate investment are expected to reach around VND228tr / $11.7bn at the end of 2010, up 23.5% against 2009. SGT

110111-Recent Ministry of Construction statistics show that only 15% of real estate transactions take place on transaction. The market is plagued by poor transparency. According to the Department of Housing Administration and Real Estate under the Ministry of Con¬struction, the country has a total of 600 real estate transaction floors. Despite this, the number of transactions remains very low. Total real estate sales nation¬wide through these floors totalled 3,679 in Ha Noi and 3,352 in HCM City. Many investors have sought to avoid trading through trans¬action floors by exploiting le¬gal loop holes. As a result the number of deals made through the transaction floors remains low. Director of Housing Administra¬tion and Real Estate said the department re¬quested the floors to report their performance from the beginning of 2010. Only 20% have so far complied. The lack of a common standard had led to a dispar¬ity in the market and that people had little faith in real estate trans¬action floors. VNN

120111-Real estate prices, especially in Ha Noi and HCM City, have increased almost on a daily basis. The prices of homes and apart¬ments in Vietnam were out of con¬trol and had skyrocketed beyond the reach of most buyers, said Viet Nam Construction Materials Asso-ciation chairman. VNN

150111-Vinaconex Xuan Mai has launched sales of 100 low-cost condos in Vinh Phuc Province for VND7m / $359sqm. SGT

200111-The ministry of Construction announced 500,000 houses or 24msqm of housing for workers would be built in IPs & EPZs nationwide by 2015, to meet about 70% of their housing needs. Of the VND144tr / US$7.5bn total cost, VND7.2tr / $370m will come from the State budget. VNN

200111-Real estate accounted for 36.8% of the total registered capital in 2010 with 27 new projects worth USD$6.7bn and 6 projects with additional USD$132m. SGTW

050211-Reform of administrative proce¬dures, increased transparency and enhanced accountability are all key factors in the fight against land cor¬ruption in Vietnam, according to a report commissioned by the Embassy of Denmark, Sweden and the World Bank, the report, "Recognising and reducing corruption risks in land management in Vietnam", evaluated the leading causes of corruption in this country. Land corruption land in Vietnam was mostly about two key, issues: obtaining a land-use rights certificate by individuals and organisations and the process associ¬ated with land acquisition and allocation. The report has found that local authorities have the "absolute right" to decide which individuals or organisations could be granted land. And this is the key for corruption. It pointed out that land man¬agement and use corruption in Viet¬nam was worsening, as 85% of the surveyed households said there was corruption in this sector and 30% of the targeted businesses said they had to give bribes to get land-use certificates. VIR

150211-The Ministry of Construction has announced the national housing development strategy under which the average housing space will be 21.5sqm per capita in 2015. The housing area in the country expanded by 71m sqm during the 1999-2000 period. SGT

140211-Property brokers in the country expect a downturn in the number of new condo projects completed this year with under 10,000 flats. Over 70,000 condos are expected to complete in Vietnam after 2013. SGT

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