VietRees Newsletter 69 Week2 Month2 Year09

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Weekly Newsletter

Vietnam

Real Estate

A69

Week 2, February

The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month

joining to develop the newsletter VietRees, a member of

Free register for weekly newsletter: Please send your email to marketnews@VietRees.comSponsor and advestising: T: (84 8) 3948 5574 - E: properties@VietRees.com

Market situation (p.2)Real estate foreign investment (p.2)Vietnam in the world (p.3)Real estate agents (p.3)Websites of real estate companies in Vietnam (p.4)Real estate projects and prices (p.5)Real estate supply for customer groups (p.7)Real estate legislation (p.8)Construction material market last week (p.8)Stock market last week (p.8)

Research - Consulting (p.9)Market forecast, statistics expert opinions (p.10)

This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested in Vietnam real estate market changes.Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for the occurring damage. Please visit thewebsite www.VietRees.com for further Vietnam Real Estate information. When individuals and organizations quote or publish the information from our newsletter, please cite the sourceVietRees.According to the statistics on registration for the newsletter, the subjects making reference to the newsletter includes real estate investors; companies or units of government performingmanagement tasks, business marketing, consulting, broking, assessment, real estate finance, construction, banking, architecture, interior decoration; domestic and foreign press agencies; andfull of professional investors or individuals who have demand for real estate throughout provinces and cities nationwide; typically Ho Chi Minh, Ha Noi, Da Nang, Can Tho, Hue, Nha Trang,BRVT, Binh Duong, Dong Nai, Ha Tay…We would like to say thanks to the sponsors and all of the readers. We expect to continue to receive your support as well as your comments to improve our newsletter.Readers can print or save this newsletter on your computers to review when needed or transfer it to others. However, think of environment when you want to print it out.

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Viet Nam Real Estate Newsletter A69 Page 2

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MARKET SITUATION

Da Nang: prepare to buy housesto live in

Tuoi tre – 09 Feb, 2009 The banks have begun to lend; the interest rates and the real estate prices have dramatically droppedwhich has helped the Da Nang real estate market to warm up. Transactions have mainlyfocused onpeople with real demands and houses with moderate prices. According to a real estate brokeragecenter, in the past six months, the center has just mainly focused on buying, selling and brokeringhouses rather than ground bases. Most of the buyers have real demands, but because their capitalresources are limited, as a result, the houses with the maximum prices of about 500 million VND haveattracted the customers and the houses of over 1 billion VND have been difficult to sell. The land priceson some big streets such as Nguyen Van Linh, Nguyen Huu Tho, Pham Van Dong and many residentialareas in Son Tra district, etc have decreased by 20 -30%. Currently, the real estate prices in Da Nanghave been close to their real values, therefore, they are easier to be bought and sold. Additionally, thebank interest rate that has fallen by 8 -10% per year is an encouraging solution to promote the realestate market. In addition, the mobilized interest rate that has dramatically slided has made the richpeople calculate and seek other investment channels with a higher rate of profitability, including the realestate field.Many banks have shown that they have still created favorable conditions for those who have realdemands, stable incomes and good abilities of payment or those who are cadres, civil servants toborrow money. It is also one of the reasons that have made the real estate market quickly prosper.

Low interest rate, the real estaterecover?

Phap Luat – 09 Feb, 2009

Currently, the real estate transaction situation on the market has seen dramatic movements. Many realestate business companies have launched the goods for sale and the banks have reduced the loaninterest rates, which has activated the real estate market.After a quite long time with no movement, the real estate investors have now bravely released the goodsand attracted a large number of customers. After Tet holidays, the real estate transactions havedramatically increased. According to a real estate expert, the real estate has attracted customers at thebeginning of the year due to the too low bank interest rate. The bank deposit has currently not beeneffective. The stock has continuously recorded new lows;as a result, the only investment channel that ismost attractive at this time is the real estate field. In addition, one more reason that attracts the investorsis the real estate prices are unexpectedly low.However, the experts have also advised the customers to be careful when investing;otherwise, thecustomers may easily fall into the traps of the real estate enterprises. Because in fact, the market has just begun to warm up when the buyers come back to find out the information but the real transactionshave still been a modest number. They shouldwait until the end of the second quarter of this year inorder to determine whether the market really warms up or not. Because at this time, the policies such asconstructing 10,000 low-price apartments (promulgatedby of the Ministry of Construction) or rescheduling, delaying tax, reducing interest rates, etc will be somewhat clearer. Therefore, it is still toosoon to say that the real estate will warm up because in fact, there have still been many customerslosing the confidence in the market.

Despite being allowed to buy housesin Vietnam, most foreigners have juststarted to learn about information

Tuoi Tre – 05 Feb, 2009

The statistics at the real estate transaction centershave shown that one month after the resolution onpiloting the program of allowing the foreigners to buy and own houses in Vietnam takes effect (1stJanuary 2009), the number of the foreign customers that has studied the information on the projects hasincreased as compared to before but there have not been any foreigners directly buying houses. Most of them have still bought houses through the old methods in which they buy the property under the name of local Vietnamese in order to avoid the troubles caused by red tape and bureaucracy procedures. Inaddition, although the resolution took effect since 1st January, the government has not promulgated thespecific regulations on the implementation. Therefore, there is a strong possibility that foreigners are stillwaiting for a clearer policy and following the market situation and have not rushed to make their decisions. Another important reason is that the global financial crisis has also discouraged the foreignersfrom buying houses in Vietnam.According to the real estate business enterprises, the purchasing power of the foreigners working andliving in Vietnam has potential. However, selling houses to these customers is not easy because thehigh-grade apartment prices in Vietnam have still been pretty high. Those who want to buy houses haveto have high incomes and a plan for long-term living in Vietnam. Additionally, foreigners have the habitof buying houses on installment plans with bankloans. But, in fact, the barriers ahead come from thebank, that is, because the policies allowing the foreigners to buy houses have just been promulgated,the banks have not yet had the appropriate loan products.However, experts have also shown that they need to have more time in order that the policies maypenetrate into the life. And then, the foreigners will switch to buying houses and this market will soon beset up.

REAL ESTATE FOREIGN INVETSMENT

The number of projects receiving FDIin January, 2009 against the sameperiod of last year

Source:

The Foreign Investment BureauUntil January, 2009 the whole country hasattracted 62 projects with foreign investment(including the projects have investmentincreased) as compared to 45 projects inJanuary, 2008.The Foreign Investment Bureauforecasts in 2009 and 2010 will be adifficult year for attracting FDI inVietnam due to the impacts of theglobal financial crisis.However, the prospects for mid-term and long-term investment inVietnam still are considered to begood by investors.

VietRees – Vietnam Real Estate www.VietRees.com

Viet Nam Real Estate Newsletter A69 Page 3

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VIETNAM IN THE WORLD

Vietnam ranked 3rd in middle-termdevelopment

Kinh Te Do Thi – 12 Feb, 2009Vietnam is ranked 3rd in terms of development prospect in the mid-term, which is one of the surveyingresults of the operation situation of 620 Japanese companies in foreign countries in 2008 conducted byJapanese International Cooperation Bank (JBIC) and presented at the Ministry of Planning andInvestment on 11th February.Despite being ranked 3rd in terms of the development prospect for the business & production activities inthe middle term (after China and India), the rate of supporting Vietnam has decreased as compared to2007. The reasons why Vietnam has been highly appreciated include the good location for investmentdiversification, the low laborcost, the good development ability of the domestic market and the availablesupplies for the assembling industry. However, the problems that have still hindered the investment intoVietnam include the poor infrastructure development, difficulties in keeping the leaders of the companiesand technicians / engineers, increasing labor costs, and the weak system of law enforcement. The fieldsthat Japanese companies have been interested in when investing in Vietnam includes electrical /electronics appliances, automotive, general machinery and chemicals.

REAL ESTATE AGENTS

Vietnam House open real estatetransaction center

BDS & TS – 09 Feb, 2009The Vietnam House JSC held an opening ceremony for the real estate transaction center based at 40 LeVan Viet Street, Hiep Phu ward, District 9, Ho Chi Minh City on the morning of 6th February.The real estate transaction center provides the full services relevant to the real estate field such as: sale& purchase, transferring, brokerage, pricing and marketing the projects invested by the Company (TheBoat Club Residences residential area, Truong Thanh 1 residential area...).

Dong Nai: Thanh Phu projectground bases have many clients

VietRees – 11 Feb, 2009On 10th February, 2009, Tin Nghia real estate transaction center officially offered the second phase of Thanh Phu residential area project (Vinh Cuu district, Dong Nai) for sale. This project has drawn theattention of a large number of customers including both customers with real demands and customersbuying houses for their investment due to the reasonable prices. Only within 10 days before Lunar NewYear, the whole first phase ground bases (200 in total) were registered by customers to purchase. Thisis one of the projects aiming at the majority of customers who have medium incomes of about 110 toless than 200 million VND / base which is divided into several installments. The deposit of below 15million VND is the level many people can afford. In the first day, over 90% of the ground bases at thesecond phase offered for sale have been ordered by the customers.Thanh Phu residential area project is invested by Tin Khai Joint Stock Company with an area of 64hectares, planned to be the complete urban area. It includes chains of 70 - 120m2 row houses, 180-250m2 garden houses, the public works such as the administrative centers, education, health, culture,service trade. In addition, the project also designs the green spaces such as parks, flower gardens andsport courts. The complete system of the technology infrastructure includes traffic, water supply,drainage, electricity, communication, etc.After over 3 months in operation, Tin Nghia transaction center has served over 500 customers visiting itto make transactions, in which over a half of the customers who have the demand for buying real estate.According to many customers coming to make transactions at the center, real estate is still the essentialdemand associated with the lives of individuals, families and it is the first priority if they can find valuableproducts to invest in. With the positive signals such that banks have consecutively reduced the interestrates and gradually extended the real estate loans, the real estate transactions will tend to increase andwarm up.

Inaugurating Sunrise Building –Cau Giay

Kinh Te Do Thi – 11 Feb, 2009

On 10th January, No.3 Construction JSC (of Total Company Investment and Development of Hanoi)inaugurated and operated Sunrise Building at the D11 land plot, Nguyen Phong Sac Street, Cau GiayDistrict. The project was started in 2006 with a total area of over 3000 m2 including the services and thehousing area.

Hoa Binh enjoys many projectsat the beginning of the year

VietRees – 13 Feb, 2009

Following the success of the contract on executing the reinforced concrete constructionand completingtwo 23-storey buildings G and H of the Kenton Residences projects, Hoa Binh Real Estate Business andConstruction JSC has been selected as the contractor for the project of Tan Hoang Minh building officeinvested by Trade Company Limited Service Hotel Tan Hoang Minh as investors.The project is located at 290 Nam Ky Khoi Nghia Street, District 3, Ho Chi Minh City with 14 storeyand 2basements, built on a site of 5,648.7 m2. The bidding of"Structure and finishing" worth 29.5 billion VNDwill be executed within 12 months.

Enterprises borrow money tobuild the project

Thoi bao Kinh Te Viet Nam – 11 Feb, 2009

Vietnam real estate investment JSC - Vinaland has issued 100 Certificates of house savings (worth 5million/ certificates) to execute the two projects Vinaland Tower and Saigon South Center on NguyenLuong Bang Street, District 7, Ho Chi Minh City. Because this is the pilot program for mobilizing newcapital, the certificate is mainly for the staff of the company and some regular customers.In fact, certificates of housing savings are a civil relationship in lending. In particular, Vinaland is theborrower and those who buy the certificates are the lenders in the form of saving every month. Eachcertificate will be converted into the right of buying 1m2 of the apartment floor area with the original pricein the future and those buying certificates monthly will submit the savings following the face value of thecertificates within 60 months (5 years).

Vinaconex real estate transactioncenter opened

The Total Joint Stock Import-Export and Construction of Vietnam - has just opened Vinaconex realestate transaction center VITR based at the first floor of the building 17T5, Trung Hoa - NhanChinhurban area, Hanoi city. The transaction center is established and operated by Vinaconex ITC -themember of Vinaconex. Besides the functions including floor trading other property VITR will contribute topromoting the image, brand and product of real estate Vinaconex.

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