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vietnam quarterly investment report

q4 2015

.......................................................................................................... 9 INVESTMENT HIGHLIGHTS ............................................................................................................................................................................................................................................................................................................................................... District 1....................................................................................................................... Ho Chi Minh City .................................................................................................................................................................................................................. 4 Figure 3 Interest rate and Exchage rate in Vietnam.................................. 10-12 LIST OF FIGURES Figure 1 Vietnam GDP............................................................................................................................................7 Figure 10 International tourist arrivals to Vietnam. 4 Figure 2 Vietnam Consumer Price Index ........................... 8 COVER PAGE: A&B Tower.............Table of Contents Page EXECUTIVE SUMMARY.................................................5 Figure 4 Outstanding debt of real estate...........................................................4-8 KEY ECONOMIC INDICATORS.......................................................... 6 Figure 8 Index Performance of Vietnam ............................................................................................................................7 LIST OF TABLES Table 1 Vietnam Retail Sales................................................. 6 LEGAL UPDATES................................................................................. 5 Figure 6 Foreign Direct Investment .......................NEWS COVERAGE............................................. 5 EXTERNAL INDICATORS................................ 7 Figure 9 Bad debt in Vietnam .................................................................................................................................................................................................................................................................................................... 6 Figure 7 Exports and Imports in Vietnam ..................................................................... 3 ECONOMIC OVERVIEW.................................................. 4 MONETARY INDICATORS............................ 5 Figure 5 Government bond yield .............................................4 Table 2 Macroeconomic Indicators.................................

• A firm commitment to liberalize the economy and to introduce reforms based on the free market. the promotion of foreign investment is a large part of the country’s developmental strategy.EXECUTIVE SUMMARY It is forecasted by HSBC that Vietnam’s exports will grow by an average 10. low cost. particularly while the outlook for global markets and trade is fragile. and commercial cases often take years to be resolved.1% annually from 2015 to 2030. The government enacted Decree 60/ ND-CP 1 July 2015 to remove the 49% cap on foreign ownership in many sectors (though some key ones such as banking are still excluded). which cannot be legally guaranteed. the government is continually improving its judicial system. helping Vietnam diversify its export base and gradually move into higher value sectors. EU and Trans-Pacific Partnership agreement (TPP) should provide impetus towards reform. Vietnam’s weak points: • Weak financial and institutional structures. banking. and unequal allocation of resources between State-Owned Enterprises (SOEs) and private sectors. putting pressure on the interest rate. • Transparency issues Foreign investment is subject to an array of unclear regulations. • The lack of guarantees for property rights. The Free Trade Agreements with Korea. • Social and political stability. The trade balance has been in surplus. In particular. most notably liberalizing some key protected sectors such as retail. young. FDI inflows have been very strong in recent years. Vietnam’s strong points: • Positive economic prospects in terms of growth. agriculture. most notably Information and Communication Technology (ICT) equipment. • A young. the financial sector is neither well regulated nor independent of the government. Therefore. despite the global economic crisis. etc. The judiciary is subject to political influence. The sizable. growing and increasingly skilled workforce continues to attract manufacturers of low cost items and Vietnam is becoming increasing integrated into global trade. Trans Pacific Partnership map ©2016 Colliers International Research Page 3 . Although being undergoing reforms. Despite this. Risks remain quite high though. rapidly growing and an increasing technologically qualified workforce. creating more incentives and taxation policies for foreign investors and trying to respect its commitments with regard to the international community. strong domestic demand may create inflation pressures.

5% y-o-y (if changes in price are excluded.64% while agriculture recorded more modest growth at 2.2% y-o-y. GDP in this period experienced the lowest growth rate.5 trillion). Core inflation of 2015 grew by 2.35 trillion).242.9 trillion (USD144.8% in 2016. Travelling achieved VND30.780 0.41%. in 2015.469.1 trillion).68% in 2015. which contributed nearly half of the total output. the growth rate would be 8.4 trillion (USD1.VIETNAM QUARTERLY INVESTMENT REPORT Q4 2015 | ECONOMIC OVERVIEW KEY ECONOMIC INDICATORS The service sector grew by 6. the fastest growth rate since 2008. Vietnam suffered a period of economic downturn and high inflation from 2011 to 2014.05% compared with 2014. total retail sales of consumer goods and services were estimated to reach VND3. industrial and construction witnessed a growth of 9.33% this year. retail sales of goods reached VND2. which represented 0. economic growth has averaged 6. Vietnam GDP grew 7. With recent progress on major Free trade agreements. ©2016 Colliers International Research 2500 7 2000 6 5 1500 4 1000 3 2 500 1 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 F. Figure 1: Vietnam GDP % GDP 10 5 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F Source: General Statistics Office (GSO) | Colliers International Research Table 1: Vietnam Retail Sales Total Proportion 2. Q4 2015. More specifically.8% in 2016.63% y-o-y. GDP growth forecasts for Viet Nam are expected to be maintained at 6.2 trillion (USD16. a process called “Doi Moi”. Increases in export-oriented manufacturing output and continuing high foreign direct investment are providing further boost to the economy. Good economic recovery policies have situated the country as being highly regarded as an attractive destination for foreign direct investment.5% Travelling service 27.7%-6. Sales of accommodation and catering services gained VND372.3 trillion which accounted for 11. which accounted for 76.4% and raised by 7% y-o-y.4% Retail sales Other services Source: GSO | Colliers International Research Page 4 . which accelerate to 6.2% of the total retail sales and a rise of 10. GDP per capital (nominal) Asian Development Bank (ADB) forecasts that Vietnam’s inflation will be around 4% in 2016 and HSBC’s predictions for Vietnam are 4.7% a year up to 2011.25%.9% and went up by 9.245. Source: World Bank | Colliers International Research Figure 2: Vietnam Consumer Price Index 25 20 15 % CPI Consumer price index (CPI) grew by 0.6% y-o-y. In general.9 trillion (USD109.2% Accommodation and catering 337.02% in December 2015 over the previous month.093 11.3%).9% 335.8 billion). GDP growth rate 8 USD/capita After Vietnam started its transition into a market economy in 1986.01%. which took 11. Due to the global financial crisis and inefficient allocation of resources to State-owned Enterprises (SOEs).767 11. This is an increase of 9.5% y-o-y. Remaining services attained 370. Growth was driven by the industrial and construction sectors.5% of the total sales and grew by 5. Retail Sales Generally.502 76. Data for the first half of 2015 shows domestic demand continuing to serve as the main driver of growth. especially in 2012 at 5. CPI 2015 has gone up 0.

the 1-year bond declined 13 basic points (bps). may lead the State Bank of Vietnam (SBV) to change the rate USD/VND to prevent further trade deficit from China.9% y-o-y in value. More specifically. Outstanding debts relating to real estate account for about VND 360. However.000 5 4 10. accounting for 98. yields of 2-year and 5-year maturity bonds slightly went down 2 -7 bps while 3-year bond rose 14 bps. The interest rate ceiling was reduced from 0. Overall.000 9 16.000 billion – an increase of 80% compared to the amount of VND 197. the National Assembly approved Government proposals to raise USD$3 billion government bonds in foreign currency to refinance the national debt maturing in 2016 and 2017. China‘s slow economic growth could lead the People’s Central Bank of China to devalue the Yuan further. the nation’s exchange rate is affected by two external factors in 2016. At the end of September. expected inflation in future and government budget deficit went down contributed to the decrease of 3-year bond price so that yield on 3-year bond were up.000 12 % per annum Vietnam’s trade deficit occurring for the first time in three years and a high government fiscal deficit in 2015 are going to pile more pressure on Vietnam Dong in 2016. Firstly. In October. In addition.25% for individual deposits. secondly. when property prices reached its peak. Dec-07 Interest Rate Source: ADB | Colliers International Research Page 5 . about 70% of capital investments in real estate are backed by bank credit and 65 % of collateral is in the form of property. the banking system has increased credit to real estate industry 14. credit growth of the whole banking system reached 17.7% while corporate bonds accounts for the rest 1. central bank bonds) dominate majority of the market. Vietnam’s LCY bond market reached VND832 trillion (US$37 billion) (the number excludes bonds issuance through private placements to institutional investors) in which government bonds (treasury bonds.3%. in turn. 20. This number is higher than credit growth rate of 14%-15% in the period 2012-2014 but much lower than 37% of 2009.000 6 12. the State Bank of Vietnam (SBV) reduced interest rates on dollar deposits in order to stabilize the Vietnam dong and discourage hoarding of USD. local currency (LCY) bond yields in Vietnam fell for most tenors except for 3-year maturity bond.000 Aug-08 Credit Growth 24.000 8 7 14. investors regained confidence on VND leading to an increase in bond price.02% y-o-y. Also. yields on 1-year and 2-year bonds went down.25% to zero for corporate deposits and from 0.000 11 Apr-08 Statistics from the SBV shows that at the end of Q3-2015. as of 18/12/2015. This.VIETNAM QUARTERLY INVESTMENT REPORT Q4 2015 | ECONOMIC OVERVIEW MONETARY INDICATORS Figure 3: Interest rate and Exchage rate in Vietnam 10 ©2016 Colliers International Research 18. SBV showed firm commitment on keeping VND exchange rate stable.5% more than Q4-2014. The government is also allowed to issue bonds with maturities less than 5 years to fund fiscal shortfall as the demand for long-term bonds has declined significantly.000 in 2012. As a result. The whole market has witnessed a decrease of 14.75% to 0. Fed’s policy of keeping USD stronger would reduce the demand of holding local currency in Vietnam. Because Fed posponed a hike on interest rate. The treasury bonds only reached about 50% issuance target for 2015 while most corporates chose to borrow loans instead of issuing bonds. 22. According to estimation from Vietnam Banks Association.000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Asian Development Bank (ADB) | Colliers International Research Figure 4: Oustanding debt of real estate 18 16 14 12 10 8 6 4 2 Government Bond Yield 2011 2012 2013 2014 Aug-14 2005 2006 2007 2008 2009 2010 Dec-13 0 3Q 2015 Source: World Bank | Colliers International Research Figure 5: Government bond yield 18 16 14 % 12 10 8 Dec-15 Apr-15 Aug-15 Dec-14 Apr-14 Apr-13 Aug-13 Dec-12 Apr-12 Aug-12 Dec-11 Apr-11 Aug-11 Dec-10 Apr-10 Aug-10 Dec-09 Apr-09 Aug-09 Dec-08 6 Aug-07 As of 15 October 2015. Exchange Rate 13 trillion USD Exchange Rate Interst Rate 14 VND/USD In September.

5 billion.5%.8% in the number of projects and a decline of 0. growing by 18.9% compared to the identical period last year. decreasing by 3.5% against the last year’s same period. accounting for 66.5% from the similar period in 2014. South Korea.5%.4%.Imports Figure 7: Exports and Imports in Vietnam Exports Imports 180 160 140 120 billion USD In 2015. the FDI sector achieved US$98 billion.2 billion. 692 projects from the previous years registered to raise US$6. 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: GSO | Colliers International Research Exports and imports are calculated at FOB prices (excluding US$9 billion transport fee and import goods’ insurance which are included in import of services) then trade baalance in 2015 is US$5. 0 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: GSO | Colliers International Research Exports . Generally. (decreased 44% in 2014) ©2016 Colliers International Research Page 6 . a rise of 16.58 billion.5 billion. export turnover was estimated to reach US$162.3billion. a rise of 17% compared to 2014’s same period.97% of export turnovers. up 12% over the last year’s similar period.1% from the same period last year. Realized FDI capital in 12 months of this year was estimated to gain US$14. In 2015. FDI attracted 2013 newly licensed projects with the registered capital of US$15. the FDI sector had a trade surplus of US$17.3 billion. up 17.67 billion. a rise of 12. the total registered capital of both newly and additionally financed projects reached US$22. the FDI sector (excluding crude oil) gained US$111. of which the domestic economic sector had a trade deficit of US$20. equaling 1. Only trade deficit with China in 2015 was US$32. of which the domestic economic sector achieved US$47. increased by 8. accounting for 10.5%. With a decrease in prices of crude oil and some agricultural commodities.6 billion.23 billion. 2015’s export turnovers could not achieve the proposed plan (up 10%).9% of the total registered capital while the real estate business attracted US$2.8 billion surplus. import turnovers reached an estimate of US$165.3% increase.6 billion. 100 80 60 Estimated trade deficit was US$3. At the same time. of which the domestic economic sector gained US$67. the manufacturing industry attracted the largest number of FDI projects with the registered capital of US$15.3 billion. Taiwan and Singapore where they can borrow at low interest rates.3 billion.4 billion. in eleven months of this year.1 billion. particularly for investors from Japan. The United States was the biggest export market of Vietnam with export turnover of US$33.4% from 2014’s similar period.67billion investment capital.4% in the capital from the similar period in 2014. grew by 12. 6. China was still Vietnam’s largest import market with estimated import turnover of US$49. but the rate of trade deficit was estimated to reach the proposed plan at less than 5% of export turnovers.3 billion. sharply increased by 12.39 billion.VIETNAM QUARTERLY INVESTMENT REPORT Q4 2015 | ECONOMIC OVERVIEW EXTERNAL INDICATORS The country has long been an attractive FDI destination. Figure 6: Foreign Direct Investment 25 20 billion USD FDI 15 10 5 As of end of December. Thus. an increase of 26.

5 4 3.68 years in 2015 • average coupon rate: 6.7 thousand arrivals. visitors to Vietnam from Asia fell by 2. P/E of SET index (Thailand) is 16.000 2.4 in November 2015.000 8. As of 31/12/2015.46% to 79.96 points. Average trading volume reached 2. 500 7.934.500 billion per trading day. ©2016 Colliers International Research 2008 2009 2010 2011 2012 2013 2014 2015 4.03 points. yet VAMC has just been able to deal with 7% of the amount.000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: GSO | Colliers International Research Page 7 . The rate of improvement business conditions is modest. by road: a decline of 6.7 thousand arrivals. Hanoi index declined 3.000 thousand arrivals As of October 2015. rose 5% from the same period last year.0 neutral-mark. Yet. equivalent to an increase 6. confiscation of assets and selling asset below their book value.9% from the last year’s identical period. For example.5%.000 3. Government bond: • issued: VND 233.5 2 1.3 for the MSCI Southeast Asia Index. Number of new orders and new export orders returned to grow.6% against the similar period last year. There are 1. In this year.929 billion (USD130.46 and of JET index (Indonesia) is 25. Stocks in Vietnam are relatively cheap in comparison with that of other nations.367 thousand arrivals. 2007 Figure 9: Bad debt in Vietnam Bad Debts SBV announced that banking system’s bad debt has been lowered to below 2.8%. this result somehow contributed by the transfer of bad debts to a state-owned Vietnam Asset Management Company (VAMC) as well as the increase of bank credit supply.000 6. Visitors from America reached 647. down 0. of which visitors coming by airway. by sea: an increase of 27.2 billion). VAMC has exchanged its bonds for VND 226. 2006 Source: Ho Chi Minh Stock Exchange | Colliers International Research Manufacturing Purchasing Manager Index (PMI) Manufacturing purchasing managers’ Index (PMI) rose back above the 50. Total value of foreigners’ purchase on stock market since the beginning of 2015 has accumulated to VND 2. According to the World Bank.000 billion of bad debts.5 0 2009 2010 2011 2012 2013 2014 2015 Source: ADB | Colliers International Research Figure 10: International tourist arrivals to Vietnam International tourist arrivals Average 9.000 5.13% y-o-y.95. Import buying went up the first time in four months in response to an increase in new business.000 4. Visitors from Europe gained an estimate of 1.35%/year Figure 8: Index Performance of Vietnam 1000 900 800 700 600 points Stock Market 400 300 200 100 0 2005 International arrivals Estimated number of international visitors to Vietnam reached 7. versus to 14.5 1 0. increased of 0.2 from 49. This is a 15th year that overseas investors have positive net buying of Vietnamese shares. equivalent to 264 million shares. The Price/ Earnings ratio of listed companies is at about 11.825 billion • term: 4. went down by 1.5 million investor accounts which are supported by 79 securities companies.9%.VIETNAM QUARTERLY INVESTMENT REPORT Q4 2015 | ECONOMIC OVERVIEW EXTERNAL INDICATORS VN-Index ended at 579. market capitalization estimates at about $58 billion.2% from the last year’ same period. Stock of finished goods remained unchanged.5 3 % 2. VAMC process of dealing with bad debts faces difficulties due to a lack of detailed legal framework for dealing with illiquid assets and transfer of assets.5%.2 times. Decree 60/ND-CP 1 July 2015 lifted the limitation on companies’ share ownership allowing foreign investors to get more involved in a process of investment and management of local real estate assets. reaching 51.94 years in 2014 to 8.

85 7.0 6.63 2.517 FDI (billion USD) 16.8 131.1 0.4 Import (billion USD) 113.1 150. points) 413 504 545 579 International arrivals (thousand arrivals) 6. y-o-y) 9.6 Stock market (VN-Index.57 7.3 147.96 7. y-o-y) 5.2 3.2 20.9 10.4 6.148 22.1 5.76 Export (billion USD) 114.324.933 21.2 5.2 162.8 6.5 7.945.1 6.VIETNAM QUARTERLY INVESTMENT REPORT Q4 2015 | ECONOMIC OVERVIEW Table 2: Macroeconomic Indicators 2012 2013 2014 2015 GDP (%. World Bank.828 20. Colliers International Research ©2016 Colliers International Research Page 8 .35 21.5 132.94 2016 F Q1 2016 F KEY ECONOMIC INDICATORS Retail sales (trillion VND) MONETARY INDICATORS Interest rate (%) Exchange rate (USD/VND) EXTERNAL INDICATORS Source: General Statistics Office.8 165.92 22.6 4.4 2. Asian Development Bank.3 22.618 2.5 CPI (%.242.

property acquisition transactions and taxation matters. In later case. With regard to the establishment of a real estate business. the seller must give a notice to DOC to inform the address of the sold property. Sample Contracts for Real Estate Business Activities Decree 76 also provides sample contracts for real estate transactions such as: sale. the Vietnamese will hold the indefinite ownership term over the property. QUARTERLY INVESTMENT REPORT Q4 2015 | LEGAL UPDATE Source: LNT’s practices are focused on assisting their client with their most complex legal matters in the following areas: Banking & Finance. but the transaction documents have to contain main terms as the sample contracts do. the sellers must pay compensation for loss and damage to the foreign purchasers. LNT regularly partner with Colliers to ensure Best in Class Real Estate Advisory Service’s. individuals who are engaged in real estate business at “small scale” are not required to set up entities for the business. Prior to executing a contract. the LoREB says that foreign investors are only allowed to “lease real properties for sub-leasing”.000). and (iii) the number of residential houses have been purchased by foreign individuals/entities in a project/building. The foreign owners have to dispose the housing properties before the expiry of the ownership duration. at binh. lease of land use rights. This must be further clarified to comfort the foreign homebuyers in owning residential properties in Vietnam. Intellectual Property and Real Estate & Infrastructure. and Decree 99 also strictly prohibits foreign individuals and/or entities from purchasing residential housing for the purpose of reselling business for profits. Failing to do so. Decree 99 requires the Ministry of National Defense and Ministry of Public Security to specify and inform such areas of national security to the local authorities for informing the developers. capital mobilization for a project must be conducted in the forms prescribed in the LORH only. a financial statement or bank acknowledgement certifying sufficient fund for the legal capital is no longer required as before. Binh Tran. including project implementation. (ii) the number of apartments in each building and/or the number of landed houses in a development project that foreign individuals/ entities are permitted to own. “Small scale” is defined as doing business with properties owned by such individuals. and brings with him more than 15 years of legal experience. transfer.tran@lntpartners. As such. Determination of restrictions in foreign housing ownership The LoH sets forth foreign buyers are not allowed to own properties in areas of national security and foreign ownership ratio in an apartment building must not over 30% or 250 landed houses in a ward scale (or 10% at maximum in a project that develops over 2500 houses). Corporate. a legal capital (minimum paid-up capital) of VND 20billion is required. Should a reader have any query or need further clarification. As such. The major updates focus on the guidance provided in Decree 76/2015/ND-CP (Decree 76) issued in September and Decree 99/2015/ND-CP (Decree 99) in October that provide specific guidelines for the implementation of Law on Real Estate Business (LOREB) and Law on Residential Housing (LORH). otherwise the properties may belong to the State of Vietnam. Foreign individuals may purchase either directly from developers or from other foreign individual or entity who owns residential housing in Vietnam. land use rights and property ownership-related matters. the ownership duration is the remaining term specified in the issued ownership certificate. and real estate project development procedures. Dispute Resolution. however. Further guidance for housing ownership by foreign individual Decree 99 clarifies eligible foreign buyers are those who have their valid passport affixed with an entry stamp by the immigration authority of Vietnam. partly or wholly transfer of real estate development projects. Disclaimer: The legal update is prepared by LNT & Partners and should not be taken as an advice to a specific matter. the provincial departments of construction (DOC) have to build an online portal where details (i) projects that foreigners are not permitted to own residential housing. there is also a possibility for foreign owners to extend the ownership duration by submitting the request to relevant authorities for consideration. please feel free to contact Mr. or developed by such individuals with the total investment capital less than VND 20 billion (equivalent to US$ 870. ©2016 Colliers International Research Page 9 . There is still a confusion or ambiguity under the regulations that although the LoH says that a foreign owner may lease its housing property and earn the rental. However. Thai Binh Tran heads LNT & Partners’ Real Estate & Infrastructure Practice Group. it is not required that the parties have to follow exactly the sample contracts as it did before. Additional restrictions imposed on capital mobilized from homebuyers Pursuant to Decree 99. if the foreign housing owner sells the residential housing to a Vietnamese. Partner of LNT. the sellers either by visiting the portal or by requesting DOC to provide detailed information must check whether or not their houses are subject to any restrictions on quantity or areas where foreign individuals can own residential houses. and the raised capital is used for developing the property project only. After the contract is executed. Capital mobilization by the way of “capital contribution agreements and being distributed with housing units” (as previously allowed to the extent of 20% of total units in a project) is no longer allowed. However. Of note. Tran has advised Colliers’s clients on a wide variety of matters covering all aspects of the real estate industry. the procedures for registration of the real estate business therefore are simplified and take less time than before. Mr. lease of existing and under-construction properties. Simplified Procedures for Doing Real Estate Business According to Decree 76.

The government’s steadfast dedication to augmenting the business environment and competitiveness has resulted in impressive outcomes in foreign investment attraction. Solid investment Vietnam Economic Times. raising the total investment in the project to nearly US$1 billion. 10 November 2015 U.000 over the past two decades. 9 November 2015 Sapa is a potential but untapped real estate market. the 2. Meanwhile. the market in Vietnam can compete directly with those in the region such as Phuket and Bali.34 per cent of its capital. The Vietnam market is heating up. Page 10 . Infrastructure development and income growth are attributed to the new investment wave for vacation property developments in Sapa. such as Diamond Island . 17 October 2015 As the market recovery has become clearer. including construction of the second building of The Grand.and medium-sized enterprises (SMEs) although many challenges still remain. villas and condos. including SMEs during the process of seeking new local and overseas markets. ASEAN is now an attractive destination for foreign investors. The plan to equitize SOEs and raise the ratio of foreign ownership has drawn positive review from foreign investors. Vietnam access to TPP markets to affect China exports Saigon Times Daily. 7 October 2015 Prime Minister Nguyen Tan Dung stated at a recent Global Investment Forum in Hanoi that the number of state owned enterprises (SOEs) has dropped by 90% from roughly 12. according to professional investors and international 9 October 2015 The World Bank in Vietnam has projected that Vietnam’s exports would replace an increasing share of China to Trans-Pacific Partnership (TPP) markets when the comprehensive trade agreement comes into force. while Vietnam is particularly important thanks to its gateway position. Additional capital is earmarked for several signature components. has been actively buying shares in many real estate companies in Viet Nam with an eye to the future.Phase 2 (Kusto Home). supported by a series of new policies. investment fund Harbinger Capital has announced to inject an additional US$50 million into Ho Tram Strip. from Harbinger Capital Saigon Times Daily. Caye Sereno seaport (Jen Capital). According to the fund manager Petri Heiskanen. equivalent to 8.vovnews. the state should promote a renovation of economic growth models. Although the second home market is still in the very early stages of additional leisure amenities in and around The Grand. To support private economic sector after joining TPP. Finnish fund investing in Viet Nam’s property market Vietnam News. 19 October 2015 PYN Elite Fund (Non-UCITS). restructuring local economies and improving business environment. After infrastructure is completed. This trend has already been ongoing even before the conclusion of TPP talks. especially the United States and Japan. 8 October 2015 The Trans-Pacific Partnership deal (TPP) will offer more business opportunities for local small. The TPP is expected to create opportunities for Vietnam to diversify trade and enhance market access to key export markets. The new law is believed to provide motivation to developers to kick off construction of second home products around the country.VIETNAM QUARTERLY INVESTMENT REPORT Q4 2015 | INVESTMENT HIGHLIGHTS .NEWS COVERAGE Prime Minister Dung: Equitization paying big dividends VOV News (english. a series of large investment projects will be implemented to tap the local potential. medium businesses: experts Vietnam News.vovnews. managed by Finnish PYN Fund Management Ltd. industry insiders expected their significant impacts on marking an important step towards opening up Vietnam’s real estate market to overseas investment. multinational groups and foreign investment funds have begun to inject money into real estate projects.Vung Tau Province. given their competitive price and better quality. Foreign investors gear up with investments in Vietnam’s property VOV News (english. 12 October 2015 When two long-awaited pieces of legislation the Law on Housing and the Law on Real Estate Business came into effect on July 1. This is a new “gold mine” that will bring huge profits for investors. raising its stakes in Viet Nam to almost 22 million shares. Diversification in the business sectors under TPP will create big opportunities for domestic enterprises. The equitization process has created a friendlier business climate and has been a key factor behind the nation’s economic success over recent years. as well as organization of the Ho T ram Open golf tournament slated for early next month.2km beachfront tourism development in Ba Ria . ©2016 Colliers International Research Golden Property Mine to Be Tapped Soon Vietnam Business Forum. The town is currently a much-interested real estate market. Nam Hoi An Complex (Chow Tai Fook). TPP helps small. Hoang Quan Consulting Trading-Service Real Estate Corp (HQC) last Thursday told HCM Stock Exchange that the fund had bought six million shares in the company on October 89. etc.S. Ho Tram Strip gets US$50 mil. PYN Elite fund has defined Viet Nam as its core market for the period 2013-2020. new launches of villa and condominiums in Phu Quoc and Da Nang are expected to attract foreign buyers in the short term. mostly in large ones.

the foreign consortium does not know if it will be granted development rights. The central city also hosted an investment promotion event in Berlin. chairman of Sumitomo. 11 November 2015 Danang organised an investment promotion week for 15 members of the Japanese Business Association (Keidanren). Ltd. the rapid popularity of mortgages. Ngoc Vien Dong will develop a 32. office buildings. 7 December 2015 Professional property firms in southern Vietnam have actively outlined business strategies and plans to create opportunities. Vietnam’s participation in the Trans-Pacific Partnership agreement. which is expected to draw more investment into the country.Mitsubishi Corporation.7 trillion (US$1. is still unsure as to whether or not they have been selected to move forward with the project. with the aim of turning the space into a signature development consisting of trade centres. office buildings. restaurants and a cable car system in Hai Giang or the five-star hotel project Kim Cuc investment and construction in Quy Nhon City. Consortium awaits green-light Vietnam Investment Review. Phuc Khang Corporation and Sacomreal in HCMC. 30 November 2015 Despite a strong commitment to expediting a USD2. 4 December 2015 The government of HCMC has chosen a consortium comprising the local firm Bitexco and Dubai-based Emaar Properties PJSC to develop a new urban area worth VND30. However. The project will be carried out in three phases from 2016 to 2030. this week calling investors from Europe in the tourism. has also attracted housing investors. high¬tech and information technology (IT).NEWS COVERAGE Foreign developers make beeline for Vietnam’s property market VOV News (english.vovnews. is raising concerns about credit risks and real estate bubble. The project covers about 427 hectares in the entire Ward 28 of the district and excludes the Saigon River water surface. riverside villas. FLC plans to implement phase two until October 2018. the residential property market has grown rapidly.2 billion ¬Eco Smart city project in Ho Chi Minh City’s Thu Thiem new urban area. The bank estimated the country’s mortgage market is growing approximately USD3 billion a year. Many property companies have well established their brand names and positions on the domestic market with effective meticulous business plans. phase one of the two-phase project will include the luxury resort and tourism-related services in Hon Seo area. Bach Dat Company in Danang. Despite having deposited over $90 million in land use fees.1 ha residential area comprising 3. 15 November 2015 Saigon Port Co. golf course. FLC approved to develop VND1. Germany. including Him Lam. Saigon port redevelopment announced Vietnam Economic Times.7 hectare area. will partner with Vingroup to develop a real estate project worth over VND11 trillion ($490 million) on the current site of the port after it is relocated in 2016. Novaland and Dai Quang Minh. the foreign investment consortium led by South Korea’s retail giant Lotte Group and three other Japanese partners . and Toshiba Corporation. Central provinces have recently attracted investment to many tourism projects such as the mix-used project by Vingroup with 300-key hotel. Property Giants Stand Ready for Long-distance Races Vietnam Business Forum. The project covers a 16. Besides FLC.6 trillion (US$71. In a meeting with Kyohei Takahashi. Da Nang seeks foreign investors Vietnam News.36 billion) in Binh Quoi-Thanh Da in Binh Thanh District. villas.6 trillion resort in Quy Nhon Saigon Times Daily. hotels. Real estate loans. 10 November 2015 With large population. a boat terminal and schools. The central city was also committed to creating the most favourable conditions for Japanese businesses in the city in the future. and software sectors. Scheduled for completion in 2017. 8 December 2015 The government of Binh Dinh Province has given the approval for FLC Group Joint Stock Company’s eco-resort project worth VND1. Mitsubishi Estate Limited. With 26 per cent held by Saigon Port. chairman of the city’s People’s Committee Huynh Duc Tho said the city has offered investment from Japan in the high-tech. Vietnam is witnessing growing demand for housing in Vietnam. with the economy growing 6.2 million) in Quy Nhon City. The VND30.the fastest pace since 2008. Chairman of Showa Denko. serviced apartments. rather than sit by and wait for opportunities as earlier. Many property investors have announced their big investment projects in the last two months of this year. marking a shift in a country where it is common for buyers to plunk down sacks of cash for payment. such as FLC Group in Hanoi. commercial facilities.VIETNAM QUARTERLY INVESTMENT REPORT Q4 2015 | INVESTMENT HIGHLIGHTS . 7 December 2015 Home loan surged 22 percent through August this year. The increasing housing demand should also come from one of Asia’s fastest rates of middle-class expansion. After equitization. policy relaxation on foreign property ownership and deeper international integration. Page 11 .vn).7 trillion amount will be used for infrastructure development and compensation for affected households.000 apartments. in Japan from November 9 to November 12. and 120 other Japanese businesses. and Kuniharu Nakamura. Saigon Port will join forces with Vingroup to establish an urban development investment company called Ngoc Vien Dong to implement the project. which account for about 8 percent of total bank lending. Mortgages replace sacks of cash in Vietnam as buyers seek loans Thanh Nien Online. residential blocks and a 50-storey tower. After the government’s efforts to clear up bad debts and ease restrictions on housing buyers. coupled with ample residential inventories. ©2016 Colliers International Research Bitexco joins consortium to develop new urban area Saigon Times Daily. especially from major importers of Vietnamese products like the US and Japan. tourism and real estate sector. are contributing to a property rebound of which residential sales almost double this year.28% in the first half of this year . entertainment center.

NEWS COVERAGE Vietnam A Rising Asian Retail Market Vietnam Economic Times. foreign investors are eligible to buy shares in only a few real estate projects in Vietnam.7 per cent compared with the same period last year. Any project that can generate a good return will potentially be of interest but different foreign investors have different risk appetites. infrastructure is regarded as a major obstacle for Vietnam taking advantage of the opport unities from the TPP. Any project that can generate a good return will potentially be of interest but different foreign investors have different risk appetites.22 billion in Vietnam in the first eleven months of this year.9 billion. Manufacturing will undoubtedly see a lot of foreign investment. Utilities and infrastructure will benefit from M&A deals as these areas need sustained investment to support Vietnam’s growth. However. 12 December 2015 Mergers and acquisitions in real estate are expected to boom in 2016 as foreign investors seek partners rather than do it alone.9 billion. 12 December 2015 The upswing in FDI commitments and disbursements has buoyed economic growth and underlined Vietnam as a solid investment destination. Samsung Electronics or Jabil Circuit are good examples for this trend. contributing to bridging the trade deficit. The wave of investment from multinational companies has encouraged others that previously left Vietnam to return. as foreign companies with expertise in certain sectors look to take advantage of low labor costs and agreements like the TPP with their zero tariffs. Foreign companies registered to invest $20. foreign companies generated USD95 billion in export revenue this year. New Kids On The Block Vietnam Economic Times.8 billion in the process and also registered to increase their capital by a total of $275 million in eight existing projects.400 projects in the nine-month period from January to September. Foreign direct investment (FDI) into the country’s industrial park (IP) segment accounted for 67 per cent of the total capital of $11 billion and 59 per cent of the 1. A Piece Of The Action Vietnam Economic Times. The key drivers of Vietnam’s property market in 2015 have been economic recovery. contributing to bridging the trade deficit. an increase of 14. As at the end of October. Foreign direct investment (FDI) in real estate has increased strongly since the beginning of this year.3 percent year­ on­ year and accounting for two­ thirds of Vietnam’s total export revenue. Utilities and infrastructure will benefit from M&A deals as these areas need sustained investment to support Vietnam’s growth. The wave of investment from multinational companies has encouraged others that previously left Vietnam to return. 12 December 2015 Recovery of the real estate market and potential opportunities created by agreements such as the TPP are attracting new foreign investors.7 per cent compared with the same period last year. As at the end of October. However. Manufacturing will undoubtedly see a lot of foreign investment. However. foreign companies generated USD95 billion in export revenue this year.22 billion in Vietnam in the first eleven months of this year. A Piece Of The Action Vietnam Economic Times. Page 12 . Figures from the Foreign Investment Agency show that foreign investors committed to invest in 25 new property projects in the country this year. up 16. Samsung Electronics or Jabil Circuit are good examples for this trend.3 percent year­ on­ year and accounting for two­ thirds of Vietnam’s total export revenue. up 16. Many projects entering the market in 2015 have achieved high absorption rates. as at the end of October. 12 December 2015 Since mid-2014 Vietnam’s residential market has been recovered. controlled inflation and interest rates. There is a strong growth in both demand and supply in the apartment sector.VIETNAM QUARTERLY INVESTMENT REPORT Q4 2015 | INVESTMENT HIGHLIGHTS . The new wave of foreign investment has been a breath of fresh air for many struggling property projects. 10 December 2015 The upswing in FDI commitments and disbursements has buoyed economic growth and underlined Vietnam as a solid investment destination. 12 December 2015 Mergers and acquisitions in real estate are expected to boom in 2016 as foreign investors seek partners rather than do it alone. as foreign companies with expertise in certain sectors look to take advantage of low labor costs and agreements like the TPP with their zero tariffs. 2015 saw many foreign investors pouring capital into Vietnam’s real estate market. ©2016 Colliers International Research Key Resource Vietnam Economic Times. Japanese fund management Creed Group are newcomers to Vietnam real estate market. Hong Kong-based Gaw Capital Partners. Total foreign investment in the real estate market at this time is nearly double what it was a year ago. Foreign direct investment (FDI) into the country’s industrial park (IP) segment accounted for 67 per cent of the total capital of $11 billion and 59 per cent of the 1. the stimulus package to fund affordable housing and a more supportive legal framework. According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI) Vietnam’s property market attracted $1. Back In Favor Vietnam Economic Times. rapidly improving infrastructure. starting with the affordable segment. Foreign companies also recorded a trade surplus of USD12. Singapore-based Genesis Global Capital. 2015 saw many foreign investors pouring capital into Vietnam’s real estate market. Foreign companies also recorded a trade surplus of USD12. foreign investors are eligible to buy shares in only a few real estate projects in Vietnam. outlaying $1. One thing highlighting the success of FDI in Vietnam this year is the continual relocation of investments by multinational companies to the country.81 billion in FDI to 19 new projects in the first nine months and seven existing projects increased their registered capital. Foreign companies registered to invest $20.400 projects in the nine-month period from January to September. an increase of 14. One thing highlighting the success of FDI in Vietnam this year is the continual relocation of investments by multinational companies to the country.

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