FEBRUARY 2011:ISSUE 09 • The real estate news and information source • www.coldwellbankervn.

com

Vietnam remains an attractive investment destination

As of 22 February 2011, FDI of carbonated and non-carbonated
disbursement for 2011 has reached $420 beverages while a $300million - solar -
million. battery factory will be invested by First
Sola (a US company) in HCMC.
The most notable investment has come
from Formosa Ha Tinh Steel According to analysts, Southeast Asia
Corporation, a subsidiary of Formosa has seen a strong investment wave from
Taiwan. The company has begun private investment funds since 2011.
importing building equipment for the Being valued as one of the most
construction of an $8.9billion steel attractive emerging markets in the
The year 2010 ended with positive
factory in Ha Tinh. world (rated by AFIRE – Association of
economic indicators, promoting
Foreign Investors in Real Estate),
Vietnam to one of the fastest growing Recently, Asian Coast Development
Vietnam was ranked top in the region.
nations in Asia. Company has been executing phase 1 of
Such funds will mainly concentrate on
Ho Tram Resort in south Ba Ria-Vung
GDP increased by 6.78% in 2010 while information technology and real estate
Tau. Ho Tram is known as the first Las
incomes reached $1,160 per capita. In in the near future.
Vegas-style resort in Vietnam in which
spite of the slow recovery of the global
phase 1will include a 5-star hotel with As for Vietnam’s real estate alone, the
economy, registered foreign direct
541 rooms capable of being expanded to recent amendment of real estate
investment (FDI) reached $18.5 billion
1,000 rooms and more than 13,600m² policies has made the market more
with disbursements of more than $11
for recreational areas. transparent, providing investors with
billion, a 9.5% increase year-on-year.
more favorable conditions. With the
In addition, multinational companies
Entering 2011, the first year in the positive news from domestic economic
such as PepsiCo., First Sola and
country’s five-year plan (2011-2015), growth, FDI disbursement, along with
Samsung Electronics also announced
Vietnam aims to achieve GDP growth of continual investment flow into the
their investment plans. Specifically, a
7.0-7.5% and maintaining inflation near country, Vietnam remains an appealing
$73million plant of PepsiCo will be built
7%. Expected FDI under these investment destination in 2011.
in the Vietnam – Singapore Industrial
conditions is estimated at
Park in Bac Ninh used for the production
approximately $20 billion.

Quarter 1/2011: Land prices are still strong

Land prices around National Highway 32 on wider roads are valued from
are on the rise as its expected VND80-100million/m², subject to
completion on 7 May 2010 nears. The different locations, a 20% increase
current trading prices of land lots compared to level before the Tet
adjoining the project Kim Chung - Di Holiday.
Trach and other projects such as urban
In HCMC, the average price of villa and
area of North National Highway 32 are
linked houses fluctuated from
also over VND40 million/m² at its lowest
$920-4,000/m² on the primary market
price, depending on the location and
while on secondary market each unit
In spite of little investment after Tet area.
can reached $1,080,000, a 3% increase
Holiday, the situation in the real estate
Notably, many plots adjoining the in comparison with Q3/2010.
market is heating up, especially for the
project Kim Chung - Di Trach are traded
land segment. In areas of west Hanoi, In suburban districts, average land
at over VND50 million/m². Villas of
prices of villa land and service land is prices on the secondary market ranged
200m² in the urban area of North
being adjusted to rise. Also, from $530-1,780/m², a 10% to 25%
National Highway 32 situated on 16m
year-on-year land price in peripheral increase against 2009.
wide roads are also for sale. Prices
areas of HCMC have risen steadily. The changes in prices indicate that the
covering ownership transfer to the
In Hanoi, Thanh Ha Cienco5 project buyer are set at up to VND44 million/m² market is warming up. However, the
including land lots with an area of (excluding capital costs). The land prices rate at which the prices will continue to
100m2/lot and 17.5m wide road is traded of these projects have increased 15% rise is difficult to predict. Based on the
up to VND40 million/m² on average against pre-Tet levels. foreign exchange variance (VND/USD),
while the pre-Tet prices stood at the latest price increases have been
Project prices in Duong Noi urban area
approximately VND32-33million/m². considered normal but possibly the
also follow the trend. Transaction prices
signal of a new wave. Currently, land
Villas with 240m² (double units) and of Tay Do Villas (Duong Noi A) with area
prices in areas with good infrastructure
13.5m-17.5m wide roads are now quoted from 180m2-225m² located on an 11.5m
still remain high.
at VND30 million/m² while the pre-Tet wide road (the project’s smallest road)
prices stood at VND24-25million/m². range from VND55-70 million/m². Those

Stock Market
14 - 25 February, 2011
indicating a 1.98% increase in Hanoi and
1.68% in Ho Chi Minh City.

The VN-Index saw sharp declines on 24

February as gas prices rose to their
highest recorded levels. Also on that
day, the price of crude oil surpassed
$100 a barrel as tensions increased over
the unrest in Libya.

The combination of rising oil and gas

prices were the major contributors in
Two-week stock market summary: East had an impact on the Asian and the worst slump in three months across
European markets. the Asian markets.
Stock markets in both Hanoi and Ho Chi
Minh City from 14 – 25 February were On February 17, the State Bank adjusted One other notable event was the
exposed to macroeconomic factors such the official VND/USD exchange rate to increase in USD deposit rates from
as exchange rates, rising electricity shorten its gap between free market Vietcombank on 25 February.
costs, inflation and gold prices. rates. In theory, the weakening of the The technical chart analysis of the
However, these factors were already VND will drive up the CPI and have a HNX-Index showed signs of general
taken into account in earlier forecasts. detrimental effect on the stock market. pessimism among investors. In the last
In addition, political tensions in Libya CPI figures in Hanoi and Ho Chi Minh two-week period, both the HNX and VNI
and across other countries in the Middle City were announced on 21 February, fell with very short spells of recovery.

GOLD Market
14 - 25 February, 2011
39.00 tael while global prices reached the
38.25

37.85
38.25
$1,400 per ounce levels. Gold prices are
38.00 37.83
37.58 38.05
37.78
37.61 37.60
still on the rise in spite of measures
37.75 37.68

37.00 36.72
36.95 37.48
37.15
37.55
drawn by the Government.
36.43 36.88

36.00
36.13
36.35
36.65
From 22 February, gold prices began to
decline. However, prices were still
36.06 selling
35.59 35.61
35.39 buying
35.27
35.00
34.79 34.86
34.97 34.97
35.13
kitco
higher compared to the previous week
34.61

34.15
34.00
33.00
32.00
14/02/2011 15/02/2011 16/02/2011
Summary of gold markets:
Gold prices have been on the rise as
investors seek safe-haven solutions with
the continuing unrest in the Middle East.
This region has attracted a great deal of
investment in recent years, and is also a
large consumer of gold. As a result of the
uprisings, investors have shifted their
focus even more so towards gold
instead of other investment channels.
17/02/2011 18/02/2011 19/02/2011 21/02/2011 22/02/2011 23/02/2011
In addition, the basic elements affecting
economic growth (the U.S. economic
crisis, public debt in Europe, global
inflation) have not showed positive
enough signs, making many people
invest in gold.
In the week of 14-20 February, gold
prices saw constant and sharp increases.
As of 21 February, the domestic gold
price had risen to VND38.4 million per
by approximately VND1.55 million per
tael. One reason for the drop was the
subsequent sell-off by investors after
last week’s gains.
24/02/2011 25/02/2011
The floating USD exchange rate along
with international gold prices has
pushed the domestic gold prices down.
Moreover, on 25 February, it was said
that the government is considering the
removal of the free trading of gold bars,
causing a decline in prices. On the
morning of 25 February, the SJC gold
price fell by VND 120,000 per tael to
VND 37.7 million per tael.

TRICON TOWERS: FEBRUARY 2011 UPDATE

Above-ground superstructure work has commenced

Construction of Tricon Towers, The Rhythm of Contemporary receiving special attention due to its strategic location in
Living in the new urban area of Splendora in Hanoi western Hanoi’s western expansion area of Splendora along Thang
expansion area, continues to proceed on schedule. Cotec Long Highway. A joint-venture between Vietnam Construction
Construction (CotecCons), one of Vietnam’s premier & Import – Export Corporation (Vinaconex) and South Korea’s
construction companies, recently completed the 2-level Posco Engineering & Construction, Splendora is currently in
basement and has now commenced the above-ground the first of six development phases.
superstructure as of February 18th.
The timely progress of Tricon Towers continues to play a key
The first floor of this 44-storey luxury residential and role in the overall development of this exciting new
commercial urban enclave by Minh Viet Investment community. As Splendora is still in its early stages, Tricon
Corporation is expected for completion by the middle of Towers offers attractive investment opportunities in what is
March while the 5-storey commercial podium will be destined to be a benchmark community in Hanoi.
completed by the third quarter of 2011. The entire building will
As the exclusive sales and marketing consultancy for Tricon
be finished by the end of 2012.
Towers, COLDWELL BANKER Vietnam would like to invite
While the market awaits the approval of the Hanoi Capital everyone to the Tricon Towers Showflat and Sales Office
Master Plan to 2030 with a vision to 2050, investors and located at Km 10, Thang Long Highway, Hanoi; or visit our
would-be residents alike are measuring up the possibilities for websites: www.tricontowers.com and
sound real estate investments and purchases. Tricon Towers is www.coldwellbankervn.com for more information.

THE BAYVIEW TOWERS: FEBRUARY 2011 UPDATE

Foundation work continues in preparation for this green architectural jewel

Foundation work for The Bayview Towers, The Iconic of Ha to the seemingly endless amenities.
Long Bay, has been underway with the pilings currently being
Ha Long Bay has long been a favored tourist destination in
fitted to support this upcoming seaside architectural jewel.
Vietnam, attracting over 1 million international visitors each
The pilings are expected to be in place by the end of March,
year. In addition to Ha Long Bay, Quang Ninh Province is
and the retail podium will be completed by end of 2011 and the
showing strong signs of development with the opening of Van
entire of superstructure will be finished by end of 2012. The
Don International Airport, the Mong Cai international border
project aims to be one of the first developments in Vietnam to
gate supporting the bustling trade between China and
receive the coveted BCA Green Mark for its sustainable and
Vietnam as well as the Cai Lan deepwater port, the third
environmentally-friendly design.
deepest in Vietnam.
Inspired by the famous “Kissing Rocks” of Ha Long Bay, Minh
As the exclusive sales and marketing consultancy for The
Viet Investment Corporation is leading the development of
Bayview Towers, COLDWELL BANKER Vietnam would like to
The Bayview Towers, featuring 518 luxury residential
invite everyone to The Bayview Towers Showflat and Sales
apartments offering each unit breathtaking views of
Office located at Lot B3/15 New Urban Area Column 5-8,
UNESCO’s World Heritage Site, Ha Long Bay. The twin
Quang Ninh Province, Ha Long City; or visit our websites:
fan-shaped towers sit atop a 3-level world-class retail podium
www.thebayviewtowers.com and
offering residents shopping and dining possibilities in addition
www.coldwellbankervn.com for more information.

TOP 10 NEW PROJECTS

February 2011
TOTAL INVESTED
PROPERTY NAME LOCATION BEGINNING COMPLETION TYPICAL UNIT SIZE TOTAL UNITS TOTAL AREA SCALE LEGAL OWNERSHIP
CAPITAL

505 Minh Khai Street, Public services, commercial center, Agriculture Products JSC (
Apartment 505
1 Vĩnh Tuy Ward, Hai Bà Q1/2011 Q1/2014 17.377 sqm kindergarten and multi-storey 1.495 billion VND AGREXIM) and Hoa Binh
Minh Khai – Hà Nội
Trưng Dist, Hà Nội. apartment. Co., Ltd

3 blocks CT6A, CT6B, CT6C, 31

Road 70,Thanh Trì Dist, Hà Lai Chau Construction
2 Apartment Bemes Cầu Bươu 2011 61sqm- 93sqm nearly 1400 units storeys, 1 basement, 1 serviced
Nội Company No.1
floor (price 19,5 million VND/sqm)

15 high buildings are built on 7

Lê Trọng Tấn Street, new
3 Apartment Cleve Văn Phú urban area Văn Phú,
Hà Đông Dist , Hà Nội.
land lots, with total floor area is
94sqm, 123sqm, 129sqm-
Late 2010 2017 4.500 units 7,63 ha 1,045,562sqm including 421,5 million USD Inpyung Vietnam Company
163sqm
914,440 sqm for trading area,
131,123sqm basement.

Hà Nam Textile Co., Ltd,

Lot A - CN2 - Định Công new
nearly 379 billion Water Electrical Mechanical
4 Complex Building An Bình 1 urban area, Hoàng Mai Dist, QI/2011 QIII/2013 165 units 3.143,2sqm
VND Installion and Construction
Hà Nội
JSC

Centre of Tây Bắc new

đất liền khoảng
urban area, Hoà
Phương Trang Complex of 106ha mainland, Trade centre, hotel, office grade
Minh Ward, Liên Chiểu Dist,
5 urban area- Commerce- approved recently 20 - 30 ha of A,B; sport area, hospital, Phương Trang Investment
Đà Nẵng ( on Nguyễn Sinh
Services encroached sea kindergarten, amusing park,... JSC
Sắc Street and Duy Tân
area.
Street)

2 towers of luxury apartments 30

storeys, 4 storeys of base are
In the East of Hàn River, Đà expected international trade centre; the
6 Hàn Hà Plaza - Apartment- approved recently 1,4ha Hàn Hà Co., Ltd
Nẵng 654 units square is along with Han River
Commerce
towards the sea; 2 storeys of
supermarket.

2 towers with 55 storeys, built by

7 Ben Thanh Twin Towers
Bordered by 4 streets:
Calmette, Lê Thị Hồng Gấm,
Phó Đức Chính and Phạm
Ngũ Lão
Dist 1, Hồ Chí Minh City
steel and glass, each tower's
height is 220m, 4 basements for
2011 2015 8.600 sqm 300 million USD Bitexco Group
parking. 1 tower is office, 1 tower
is apartment, 5 floors for trade
center, gumnasium, restaurants,...

8 storeys (1 ground,
219 - 221 Xô Viết Nghệ Tĩnh 4.427,14sqm
Hàng Xanh Office – Trading 7 floors and 02 basements), sell & Thuduc House and
8 Street, Ward 17, Bình Thạnh 2011 April, 2012 (included 42,2 billion VND
Building, HCMC lease office, commercial-serviced Satraseco
Dist, Hồ Chí Minh City basements),
centre and other.

6 blocks apartments, 5000 sqm for

78 Tôn Thất Thuyết Street, 3.000 billion
9 The Lancaster Residence April, 2011 2014 1.000 luxury units 2,5 ha kindergarten, 1500 lots of parking
Dist 4, Hồ Chí Minh City VND Trung Thủy Group JSC
area and other services

39 storeys, high-end apartments

12 AB Thanh Đa, Ward 27,
with minimum area 100 sqm/unit,
10 Petrosetco Tower Complex Bình Thạnh Dist, Hồ Chí 2011 2013 expected 521 units 19.364,5 sqm 3000 billion VND Petrosetco SSG Co., Ltd
commercial-serviced area, offices,
Minh City
hotels,…

The information and comments provided in this newsletter are based on an assessment of the writer at the date of the newsletter. This newsletter is not for investment purposes but only for reference to assist investors with more complete
information in making decisions and can change at any time without prior notice. The information in this newsletter is based on the available information gathered from various sources which are believed to be reliable and accurate, therefore
perfection cannot be guaranteed. COLDWELL BANKER Vietnam is not responsible for the investment decisions made when using the information contained in this newsletter.

COLDWELL BANKER Vietnam

Newsletter ISSUE 009