REDISCOVERING VIETNAM’S REAL ESTATE POTENTIAL

Presented by: Marc Townsend – Managing Director

1st March, 2007 Renaissance Hotel, Kuala Lumpur, Malaysia

WHAT HAS BEEN DRIVING THE PROPERTY MARKET SINCE 2003?
•Limited capital markets •An emerging condo market in Hanoi and HCMC • Conspicuous consumption • Ability to borrow from local banks at 10-11% per annum • Consistently rising GDP and FDI • China + 1, APRC, the Stock Market and entry to WTO has put Vietnam on the radar screen, coupled with the ML report in Feb and the Euro Money Conference in Mar 2006 • Saturation in other South East Asian markets

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CB Richard Ellis | Page 2

MAP OF VIETNAM

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CB Richard Ellis | Page 3

HO CHI MINH CITY

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CB Richard Ellis | Page 4

VIETNAM TODAY
• No Starbucks and No MacDonalds

• World leaders in pepper, coffee, cashew, shoes, fish/prawns, oil & gas exports • No shortage of land, just good sites • “If you build it, they will come” still exists but may not last much longer • Many similarities to China in the early 90s in terms of work ethic, chaos on the streets, migration of work force and market driven decisions • Traffic, complete absence of infrastructure, MRT/MTR, bridges and tunnels

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CB Richard Ellis | Page 5

HCMC OFFICE MARKET
sqm

HCMC Prime Office Stock End of Q1.2007

350,000

300,000

250,000

200,000
4/ 05 3/ 06 4/ 04 2/ 04 1/ 04 1/ 07 Q 3/ 04 1/ 05 2/ 05 3/ 05 1/ 06 2/ 06 4/ 06 Q

Q

Office Stock at the beginning of the quarter

Q

Q

Q

Q

Q

Q

Q

Q

New supply during the quarter

Q

Q

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CB Richard Ellis | Page 6

HCMC OFFICE MARKET
Prime Office Rental Index
160 140

Index (Q1 1998 = 100)

120 100 80 60 40 20 0

US-VN Bilateral Trade Agreement

And the upward trend will continue due to: • Growing demand • Delays in new supply
Q1 98 Q2 98 Q3 98 Q4 98 Q1 99 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1.07

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CB Richard Ellis | Page 7

Vimedimex Golden Tower Sacombank 9 DTH

Major Buildings Existing - Future
PetroVietnam

Saigon Trade Center EVN Centec Saigon Tower Gemadept Pacific Place Sailing Tower Diamond Plaza Metropolitan Asiana Plaza

Bao Viet Vietcombank Me Linh Point Saigon Center Sun Wah Times Square Financial Tower Client Logo Goes Here M&C Tower

CB Richard Ellis | Page 8

VPBank

HCMC OFFICE MARKET
SOME OF THE NEW OFFICE BUILDINGS COMPLETED IN Q1. 2007

Opera View, Dist. 1

Lancaster, Dist. 1

Rosaco, Dist. 1

Estimated Total Supply in Q1. 2007: 47,843 sqm
Petro Vietnam, Dist. 1

E – Town 2, Tan Binh District Client Logo Goes Here

CB Richard Ellis | Page 9

HCMC OFFICE MARKET
s qm

Take up and vacancy rate of HCMC office buildings

% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Q1 Q2.04 Q3.04 Q4.04 Q1 Q2.05 Q3.05 Q4.05 Q1 Q2.06 Q3.06 Q4.06 .04 .05 .06

Take-up (Sqm)

Vacancy Rate (%)
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CB Richard Ellis | Page 10

HCMC OFFICE MARKET – Rental Rates

Rental growth of Grade A 2006 - 2007
unit: US$ growth rate 28% 23 29.5

Q1 - 2006 $23.00 Q1 - 2007 $29.50 Increase of 28% Occupancy 100%

Q1/2006

Q1/2007 *Note: Rents excluding S. C and VAT
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CB Richard Ellis | Page 11

HCMC OFFICE MARKET – Rental Rates

Rental Growth of Grade B 2006 - 2007
unit:US$ 21 growth rate 26% 26.5

Q1 - 2006 $21.00 Q1 - 2007 $26.50 Increase of 26% Occupancy 99%

Q1/2006

Q1/2007 * Note: rents excluding S.C and VAT
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CB Richard Ellis | Page 12

HCMC OFFICE MARKET – Rental Rates

Rental Growth of Grade C 2006 - 2007
unit: US$ 17.5 growth rate 17% 20.5

Q1 - 2006 $17.50 Q1 - 2007 $20.50 Increase of 17% Occupancy 95%

Q1/2006

Q1/2007 * Note: rents excluding S.C and VAT
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CB Richard Ellis | Page 13

HCMC OFFICE MARKET
Market Outlook in 2007: Limited grade A office space still remains. Some new supply of Grade B office space expected to come on line during 2007. Factors driving demand: Strong economic growth, FDI growth, WTO access, new multi-national companies, expansion of existing multi-national companies, Vietnam companies upgrading, safety & quality Issues Grade A office rental rates reflects upward momentum and growing demand vis-à-vis tight supply Vacancy rate remains low, grade A (0%) and B (<1%)

Expected year of completion 2007 2008 2009 2010 TOTAL

Supply of new grade Expected A, B & C supply buildings (sqm) 27 18 15 12 72 158,798 180,657 187,824 273,146 800,425
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CB Richard Ellis | Page 14

HCMC OFFICE MARKET
HCMC MAJOR UNDER CONSTRUCTION OFFICE DEVELOPMENTS IN Q1&Q2/07
Manulife - Dist. 7 Cetpa - Tan Binh Q 2 .2 0 0 7 N'Orch - Dist. 1 ITAXA, Dist. 3 E-Star, Dist. 3 Vimedimex - Dist. 1 Petro VN, Dist. 1 Q 1 .2 0 0 7 Lancaster E-Town 2 - Tan Binh Rosaco Tower - Dist. 1 Opera View - Dist. 1
0 3,100 5,000 10,000 15,000 20,000 25,000 8,000 sqm 30,000 1,600 27,000 3,960 10,780 10,143 6,000 7,600 6,000 11,945

(Source: CBRE)
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CB Richard Ellis | Page 15

HCMC OFFICE MARKET
EX PECTED FUTUR E SUPPLY O FFI CE SPACE (2 0 0 7 - 2 0 1 0 )
(u n it s q m )

273,146 180,657 187,824

158,798

Exp ect ed co mp l et i o n i n 2007

Exp ect ed co mp l et i o n i n 2008

Exp ect ed co mp l et i o n i n 2009

Exp ect ed co mp l et i o n i n 2010

2007

2008

2009

2010

Rosaco Tower

Petro VN VP Bank Tower Sacom Bank

Centec

Asiana Plaza

Financial Tower Vietcombank Tower Client Logo Goes Here

CB Richard Ellis | Page 16

THE MARKET’S TIMING – LARGER BUILDINGS
2008
Bao Viet 20,000 sqm (owner occupied) VPBank 20,000 sqm (12,000 sqm for lease) HCMC Power Head Office 20,000 sqm (10,000 sqm for lease) Gemadept 16,500 sqm (10,000 sqm for lease)

2009
Centec 25,000 sqm

2010
Vietcombank 77,000 sqm

Asiana Plaza 32,000 sqm

M&C Tower 35,000 sqm

A&B 25,000 sqm

Financial Tower 100,000 sqm

2010
Times Square 31,000 sqm

2011

2010 113,000 sqm 212,000 sqm
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CB Richard Ellis | Page 17

76,500 sqm (32,000 sqm for lease)

RESIDENTIAL CONDO HCMC
Number of Condos and Projects launched year-by-year
12,000 50

9,000

40

30

Condos

6,000 20 3,000

10

0 Uni ts P r oj e ct s

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 648 1 0 0 0 0 0 0 150 1 0 0 0 0 124 1,234 3,418 7,644 10,37 11,47 7,270 1 3 16 27 42 33 9

0

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CB Richard Ellis | Page 18

P ro j ects

MAP OF CONDO PROJECTS IN HCMC

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CB Richard Ellis | Page 19

RESIDENTIAL CONDO HCMC
Completed Condominium Units year-by-year
2500 2000 1500 1000 500 0

1999

2003

2004

2005

2006 141 526

Q1/07 252 405

Over U S$2, 000 U S$1, 501 - U S$2, 000 U S$1, 001 - U S$1, 500 U S$600 - U S$1, 000 Less U S$600 798 124 97 1, 110 552 66 1, 965 1, 594

270 1, 330 881

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CB Richard Ellis | Page 20

RESIDENTIAL CONDO HCMC
A v e r age S e l l i ng P r i c e Change of T y pi c al H i gh-e nd Condo P r oj e c t s i n Di st r i c t 1
4 ,0 0 0 3 ,5 0 0 3 ,0 0 0 2 ,5 0 0 2 ,0 0 0 1,5 0 0 1,0 0 0 500 2003 2004 2005 Q 1/ 0 6 Q2/ 06 Q3/ 06 Q4/ 06 Q 1/ 0 7 H o rizo n US 8 5 0 T he La nc a s t e r US $ 2 ,0 5 0 Indo c hina P a rk T o we r US $ 1,5 0 0 A v a lo n US $ 2 ,0 8 9 A v a lo n US $ 2 ,8 0 0 Indo c hina P a rk T o we r US $ 18 0 0 H o rizo n US $ 1,3 0 0 T he La nc a s t e r US $ 3 ,4 5 0

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CB Richard Ellis | Page 21

RESIDENTIAL CONDO HCMC
A ve r age S e l l i ng P r i ce Change of T y pi cal Hi gh-e nd Condo P r oj e ct s i n Di st r i ct 2 and Bi nh T hanh
4 ,0 0 0 3 ,5 0 0 3 ,0 0 0 2 ,5 0 0 2 ,0 0 0 1,5 0 0 1,0 0 0 500 2003 2004 2005 Q 1/ 0 6 Q2/ 06 Q3/ 06 Q4/ 06 Q 1/ 0 7 S a igo n P e a rl US $ 1,10 0 T he M a no r R iv e r G a rde n US $ 1,0 0 0 US $ 9 0 0 T he M a no r US $ 2 ,2 0 0 S a igo n P e a rl US $ 1,5 0 0 R iv e r G a rde n US $ 1,4 0 0

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CB Richard Ellis | Page 22

RESIDENTIAL CONDO HCMC
Ratio be twe e n launche d and sold units ye ar -by -y e ar
45000 36000 27000 18000 9000 0 100% 80% 60% 40% 20% 0%

1994 648 0 0%

1998 798 72 9%

2001 922 100 11%

2002 3226 708 22%

2003

2004

2005

2006

Accumulation of remaining units Acummulation of sold units Average ratio between sold and available

6284 12082 22755 36909 2,609 6,913 12,810 19,517 42% 57% 56% 53%
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CB Richard Ellis | Page 23

RESIDENTIAL CONDO HCMC – FUTURE SUPPLY
New Develop ment year-by-year
12,000 9,000 6,000 3,000 0 Condo uni t s P r oj e c t s 50 40 30 20 10 2007 10,152 44 2008 11,081 33 2009 10,995 12 0

Projects will be completed in 2007 – 2009

Central Garden-D.1 Hung Vuong Plaza-D.5

Cantavil-D.2

River Garden-D.2

Capitaland Vista-D.2 Ben Thanh Orient Plaza-D.1

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CB Richard Ellis | Page 24

RESIDENTIAL CONDO HCMC
TRENDS:
New money flow from stock market into property. Strong investment wave from Asia: Korea, Japan, Singapore. Keen on buying projects already licensed and under construction instead of leasing land, developing from the beginning. Hot market with more money from foreign institutional and individual investors activated by Land Law effective from 1 Jul 06 and Property Trading Law from 1 Jan 07. With encouraging Government policies, more developers investing in low income projects.
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CB Richard Ellis | Page 25

RESIDENTIAL CONDO HCMC

TRENDS:
Price of low to mid end projects expected to be stable. Price of high end projects with good zoning and infrastructure remain high. More buyers have real needs and there will not be as many as speculators as previously. Demand forecasted to be increased 6-7% in a few years to come partly thanks to loan flexibility of banks. Buyers become more and more savvy, so developer’s brand plays a more and more important role.
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CB Richard Ellis | Page 26

RESIDENTIAL VILLA HCMC
Pr ice Tr end of Phu Gia, Villa R ivier a and Thu D u c Gar den H om e ( f r om lau nch to Q4/ 06)
250%

US $ 2 , 0 0 0 210%

200%

150%

100%

70% 50% 30% US $ 1 , 0 0 0 US $ 1 , 5 0 0
2002 2003 2004

90% US $ 2 , 4 0 0 33% 20% US $ 6 8 0
2005

50%

0% 2001

U$ S 7 0 0 3%
2006

Phu Gia - PMH town (launched in 2001)

Villa Riviera - D.2 (launched in 2004)

Thu Duc Garden Home (launched in 2005)

Phu GIa – PMH town

Thao Nguyen SG-D.9 Thu Duc Garden Home-TD

Villa Riviera – D.2

An Phu Dong Villa – D.12

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CB Richard Ellis | Page 27

HCMC RESIDENTIAL FOR LEASE MARKET OVERVIEW
Ho Chi Minh City Serviced Apartments

Positives:
No Maintenance Facilities – Gym, Pool Security Fully Furnished Negatives: Difficult Termination Higher Rental Cost Generic Appearance Less Usable Area
Units 200 160 120 80 40 0

Current Serviced Apartments 50 40 30 20 10 0

CB Richard Ellis | Page 28

Pl or ac fo e) lk M an So sio Se m er do n se na tC Su ha i te nc s ell or So C m ou er rt se tH CM C La nd m ar k LT T Co ur t HB T C ou rt Ci ty Vi ew
Supply Average Rent ($US/sqm/mth)
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on d am Di (O Sh er at on

N

ce

an

Pl az a

RESIDENTIAL FOR LEASE HCMC
District 1 & 3
Highest demand for serviced apartments Very limited supply, especially for International quality projects. There are 7 grade A serviced apartment projects provide over 500 units from 1 to 4 bedrooms. Average occupancy rate is now 96% (both grade A and B) with most marketable size of 1 & 2 bedrooms, from 50 – 80 sqm The rent for most of the serviced apartments are up by 10 – 20%, from US$22 to US$31 per sqm per month in January 2006 to US$25 to US$35 in December 2006 Due to the limited supply and growing demand, rent are expected to keep rising during 2007.
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CB Richard Ellis | Page 29

RESIDENTIAL FOR LEASE HCMC

An Phu, An Khanh, District 2
Still an attractive area for tenants with family Limited good quality villas and serviced apartments Few new developing projects in apartments and gated compound (River View and River Garden) Average rent of US$2,500 to 3,500 per month. With a 15% - 20% increase in rental prices within the past year.
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CB Richard Ellis | Page 30

RESIDENTIAL FOR LEASE HCMC – IN DISTRICT 2
Location Nguyen Van Huong Nguyen U Di Le Van Mien Thao Dien Compound Thao Dien Villa
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Picture

Bedrooms 5 4

SQM 600 450

Asking Rent/Month $7,000 $5,000

Rent/SQM $12 $11

3

350

$3,300

$9

4

400

$2,500

$6.25

2

200

$900

$4.50
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RESIDENTIAL FOR LEASE HCMC - 2007 NEW SUPPLY
Project Location Pasteur Court Pasteur Street, District 3, 5 minutes to CBD The Lancaster Le Thanh Ton Street, District 1, CBD Green Hills Lot 25, Quang Trung Software Park, District 12, 40 minutes to CBD Saigon Queen Villa Nguyen Van Huong, An Phu, District 2, 15 minutes to CBD
CB Richard Ellis | Page 32

Completion

No of Units

Total sqm

Target Rent $/sqm/mth

Unit types

February/March 2007

228

27,531

21 - 32

2-4 bdrs

February/ March 2007

40 - 50

3,300

30 - 38

1-3 bdrs

February 2007

100

11,300

11 - 20

1-4 bdrs

January 2007

11

1,160

10 – 12

4-5 bdrs

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RESIDENTIAL FOR LEASE HCMC - FUTURE PROJECTS
An Phu Small SA Kumho Asiana Plaza Times Square

The Manor 2

Saigon Riverview Apartments

Saigon Pearl

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CB Richard Ellis | Page 33

VN STOCK MARKET
VN Index from 18 July 2000 to 27 February 2007

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CB Richard Ellis | Page 34

VN STOCK MARKET
28/7/2000:2 listed companies - VN Index: 100 – Daily turnover Avg. $45m 27/2/2007:107 listed companies & 2 funds- VN Index: 1167.36 - Market capitalisation:$15b

1000 800 600 400 200 0 2000 2007 VN index

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2000 2007 Market cap
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VN Index: increased by 9.5 times

Market cap: increased by 300 times

CB Richard Ellis | Page 35

100 RICHEST PEOPLE IN VIETNAM
(Till 3rd Jan 2007)
Rank Name Trương Gia Bình – Chairman & General Director Listed companies FPT- Technology Investment and Development Co. FPT- Technology Investment and Development Co. Code Value (US$)

1

FPT

147,125,000

2

Lê Quang Tiến – Vice Chairman & Deputy Director

FPT

106,625,000

3

Bùi Quang Ngọc - Vice Chairman & Deputy Director Lê Văn Quang - Chairman & General Director Chu Thị Bình - Deputy Director

FPT- Technology Investment and Development Co.

FPT

74,562,500

4

Minh Phú Fisheries

MPC

71,625,500

5

Deputy Director

MPC

71,625,500
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CB Richard Ellis | Page 36

HCMC RETAIL MARKET
Top 10 Countries for Retail Investment COUNTRY INDIA RUSSIA VIETNAM UKRAINE CHINA CHILE LATVIA SLOVENIA CROATIA TURKEY 2006 RANK
1 2 3 4 5 6 7 8 9 10

2005 RANK 1 2 8 3 4 6 5 7 9
Source: AT Kearny

2004 RANK 2 1 7 11 3 6 4 5 8
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CB Richard Ellis | Page 37

HCMC RETAIL MARKET
HCMC Shopping Centre Existing Supply
Eden Mall Dist. 1 Saigon Square An Dong Plaza Dist. 5 Tax Plaza Dist. 1 Parkson Dist. 1 Thuan Kieu Plaza Dist. 5 Zen Plaza Dist. 1 Lucky Plaza Dist. 1 Diamond Plaza Dist. 1 Saigon Superbowl Tan Binh Saigon Centre Dist. 1 5,000 5,000 18,000 14,670 17,000 21,797 6,810 1,366 8,000 5,700 6,252 (Source: CB Richard Ellis)

1996

1999

2000 2002 2003 2004

2006

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CB Richard Ellis | Page 38

HCMC RETAIL MARKET
AVERAGE OCCUPANCY & RENTAL RATES OF HCMC CBD RETAIL CENTRES
%

100%

$150

80%

$120

60%

$90

40%

$60

20%

$30

0%
CBD prime occupancy rate CBD prime average rents

1996 100% $32.40

1997 100% $32.40

1998 100% $32.40

1999 100% $35.33

2000 98% $36.67

2001 95% $39.95

2002 95% $43.03

2003 95% $45.11

2004 94% $49.21

2005 100% $59.68

2006 100% $80.00

$0

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CB Richard Ellis | Page 39

HCMC RETAIL MARKET
COMP AR IS ON OF R E T AIL R E NT S IN CIT IE S IN S OUT H E AS T AS IA
Manila New Delhi Ho Chi Minh City Jakarta Beijing S hanghai Taipei S ingapore Bangkok Hong Kong 20 48 80 70 133 185 191 290 560 727 (S ource: CBR E )
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CB Richard Ellis | Page 40

unit: US$/sqm/month

HCMC RETAIL MARKET
Growth in prime retail rates in HCMC from 2006 to 2007 unit:
US$/sqm/month

140

growth rate 21%

170

Q1/2006

Q1/2007 *Note: Rents excluding S. C and VAT
Source: CB Richard Ellis Client Logo Goes Here

CB Richard Ellis | Page 41

HCMC RETAIL MARKET – NEW RETAIL CENTRES
Eden Mall 106 Nguyen Hue St, Dist.1 Size: 5,000 sqm Launch December 2006 Rents: $30 - $70 per sqm Occupancy 90%

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CB Richard Ellis | Page 42

HCMC RETAIL MARKET – NEW RETAIL CENTRES
SAIGON SQUARE 3 Le Van Huu, Dist. 1

Launch January 2007 Size: 5,000 sqm Rents: 66 - $100 per sqm Occupancy 100%

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CB Richard Ellis | Page 43

HCMC RETAIL MARKET – FUTURE SUPPLY
HCMC Future Supply
Saigon Pearl Binh Thanh SJC Tower Dist. 1 Kumho Asiana Dist. 1 Happiness Square Dist. 5 Times Square Dist. 1 Sailing Tower Dist. 1 Hung Vuong Plaza Dist. 5 Saigon Paragon Dist. 7 Tan Da Court Dist. 5 Opera View Dist. 1
s qm 30,000 8,292 6,880 11,882 12,367 2,560 33,000 15,000 4,300 1,280 (S ou r ce : CBRE )

2007

2008

2009

2010

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CB Richard Ellis | Page 44

HCMC RETAIL MARKET – FUTURE SUPPLY
COMING NEXT IN EARLY 2007
OPERA VIEW – 161 – 167 Dong Khoi, Dist. 1 Retail GFA: 1,280 sqm Rents: US$80 to US$130 per sqm Occupancy: 100% Major tenant: Louis Vuitton

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CB Richard Ellis | Page 45

HCMC RETAIL MARKET – FUTURE SUPPLY
COMING IN 2008 SAIGON PARAGON Nguyen Luong Bang, Dist.7 Retail area: 7,984 sqm Entertainment area: 7,016 sqm

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CB Richard Ellis | Page 46

HCMC RETAIL MARKET – FUTURE SUPPLY
HUNG VUONG PLAZA Location: 126 Hung Vuong St. Dist 5. Developer : M&C and Kinh Do Mixed use development with 6 levels of retail inc. cinema and 2 basement parking. Leasable Area : 17,000sqm Opening : Q1/2008 Major tenants: Parkson and Megastar

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CB Richard Ellis | Page 47

Hotel Market HCMC
HOTELS FROM FIVE TO THREE STARS, 2006

No. of Hotels

25.00% 57.50%

17.50%

HOTEL 5 – star 4 - star 3 - star

ROOMS 3,435 1,447 1,903 6,785

HOTELS 10 8 23 41

ROOMS PER HOTEL 344 181 83

28.05%

TOTAL
50.63%

No. of Rooms

(Source: CBRE)

21.33%

5 – star

4 - star

3 - star

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CB Richard Ellis | Page 48

Hotel Market HCMC
AVERAGE ROOM RATE (US$), 2005-2006

140.00 120.00 100.00 80.00 60.00 40.00 20.00 0.00 5 star 4 star 3 star 2005 108.00 80.00 45.00 2006(Est.) 128.20 94.96 53.42

D1 5 Star Hotel Rates on average range from: $77 $165 per night Average % Increase from 2005 5 Star - 15.76% 4 Star - 15.75% 3 Star - 15.79%
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CB Richard Ellis | Page 49

Hotel Market HCMC
AVERAGE OCCUPANCY RATE 2005 -2006Est
84.00% 82.00% 80.00% 78.00% 76.00% 74.00% 72.00% 70.00% 68.00%

Average Occupancy growth rate +/5 star 4 star 3 star

5 Star - 3.08% 4 Star - 4.07% 3 Star - 0.83 + D1 5 Star Hotels are showing an average 8% growth increase overall
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2005 77.00% 81.50% 82.50%

2006(Est.) 73.92% 77.43% 83.33%

5 star 4 star 3 star

CB Richard Ellis | Page 50

Hotel Market HCMC
80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% -10.00% -20.00%
VN - Domestic VN - International HCMC - Domestic 2000 2001 2002 2003 2004 2005 2006 2007P 5.71%

80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% -10.00% -20.00%

International Tourist arrivals up 350,000 from 2005 Growth down from 2006 by 9.08 %

12.00% 4.46% 20.11% 8.91%

11.11% 3.85%

7.41% 11.03% 8.70%

12.76% -7.56% 20.51% 18.44% 3.81% 22.22%

-0.12% 73.35% 6.91% 22.00% 30.39% 20.00% 26.67% 18.42%

HCMC - International 72.55% 12.99% 16.85% -9.14% 21.35% 26.58% 17.50% 12.77%

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CB Richard Ellis | Page 51

Hotel Market HCMC
EXISTING AND FUTURE SUPPLY OF 4 AND 5-STAR ROOMS
2010F

776

YEAR 2007F

DEVELOPMENT Rex Upgrade Grand, Majestic, Continental, Majestic Upgrade. In PMH District 7 of Saigon Tourist Asiana Plaza and International Trade Centre (Tax Plaza) Times Square, Saigon Happiness

2009F

519

2008F

2008F

692

2009F

2007F

80 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

2010F

-

Existing Supply

New Supply
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CB Richard Ellis | Page 52

HANOI OFFICE MARKET
Supply - Demand
Hanoi Cumulative Stock and New Supply of Grade A&B Office Properties
250,000
18,820

T ake-up and V acancy of G r ade A& B Office P r ope r tie s
35,000 35.00%

New supply as at quarter-end
12,869

Stock as at begining of the quarter
30,000

30,000 25,000 20,000 S qm

Take-up Vacancy Rate (%)

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

200,000
23,000

150,000 S qm
4,725

14,628

226,681

199,184

199,184

199,184

199,184

169,184

100,000
141,459 141,459 146,184

199,184

213,812

226,681

15,000 10,000 5,000 0 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4

50,000

0 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4

-5,000

-5.00%

Pre-lease in Q4/2006: - 2 Grade A Buildings: Opera Business Centre & Pacific Place (to be completed in Q1/2007) - 2 Grade B buildings: North Asia Tower & Viglacera Tower (to be completed in Q1/2007) - High commitment rate

- Factors driving demand: Economic growth; FDI growth; WTO accession; Newly established MNCs; Expansion of existing MNCs; Local companies upgrading; - Increasing demand on Grade A & B office space - Low vacancy rate remains on Grade A &B office space

CB Richard Ellis | Page 53

HANOI OFFICE MARKET
Rental
Ave r age Re ntal of Hanoi G r ade A Office P r ope r tie s
32.00 30.00 28.00 26.00 24.00 22.00 20.00
30.00 28.00 26.00 US $ P S Q MP M 24.00 22.00 20.00 18.00 16.00

Ave r age Re ntal of Hanoi G r ade B Office P r ope r tie s

US $ P S Q MP M

2004 Q1

2004 Q2

2004 Q3

2004 Q4

2005 Q1

2005 Q2

2005 Q3

2005 Q4

2006 Q1

2006 Q2

2006 Q3

2006 Q4

2004 Q1

2004 Q2

2004 Q3

2004 Q4

2005 Q1

2005 Q2

2005 Q3

2005 Q4

2006 Q1

2006 Q2

2006 Q3

Q3-Q4/2006: Sharp increase in Grade A & Grade B office rentals - Grade A Office: 9.5% and 7.5% increase q-o-q, respectively in Q3 and Q4 - Grade B Office: 10.7% and 7.9% increase q-o-q, respectively in Q3 and Q4

CB Richard Ellis | Page 54

2006 Q4

HANOI OFFICE MARKET
Future Supply
Estimate d ne w stock of G r ade A,B& C Office
S qm 250,000 239,022

Estimated new stock of Hanoi G r ade A Of fice
S qm 100,000

200,000

80,000

71,000 58,000

150,000 92,900

60,000

100,000

87,500 58,000

40,000 22,350 20,000

33,000

50,000

0 2007 2008 2009 2010

0 2007 2008 2009 2010

- 22,350sqm GFA of Grade A Office space will come on stream in Q1/2007 - Significant amount of Grade B office space will be launched during 2007

CB Richard Ellis | Page 55

HANOI OFFICE MARKET
OPERA BUSINESS CENTRE

Location: 6B Trang Tien Str., Hoan Kiem Dist., Hanoi Developer: Opera Business Centre JVC Project: 3 level retail podium attached to 10 level office building Grade A Mixed-used of Retail / Office Completion Date & Opening Date: Q1/2007 Leasable Area: Land Area – 888sqm Office GFA – 3,550sqm Retail NLA – 1,070sqm

Opening date
CB Richard Ellis | Page 56

Q1/2007

HANOI OFFICE MARKET
PACIFIC PLACE

Location: 83B Ly Thuong Kiet St., Hoan Kiem Dist., Hanoi Developer: Ever Fortune Co., Ltd Project: 18 storey Grade A Mixed-use development with 5 basements Leasable Area: Office: 18,500sqm GFA Retail: Approx 8,000sqm Condos: 22,000sqm (185 units) Completion Date & Opening Date: Q1/2007

Opening date
CB Richard Ellis | Page 57

Q1/2007

HANOI SERVICED APARTMENT MARKET
Supply
Hanoi Cumulative Stock of G r ade A& B S e r viced Apar tme nts
1,400 1,200
84 34

31

39

1,000

1 46

800 Uni t s
51 9

600

400
347

200
61

Q1 2006

Q2 2006

Q3 2006

Stock as at begining of the period

New supply as at end of the period

- 61 units of Somerset Westlake Hanoi has been closed for renovation for Q2-Q4/2006 - 39 units of Elegant Suites come on stream in Q3/2006

CB Richard Ellis | Page 58

Q4 2006

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

0

HANOI SERVICED APARTMENT MARKET
Demand
T ake-up & V acancy Rate Q4 /20 06
30 Take-up Vacancy Rate 20 2.00%
$40.00 $50.00

Rentals
Aver age Asking Re nt per sqm per month (US $ )
3.00%
$60.00

10 U ni t s

1.00%

Vacanc y Rat e (%)

$30.00

0

0.00%

$20.00

$10.00

-10

-1.00%
$0.00 Rose Garden Daeha Complex Jana Garden Terrace Oriental Palace Golden Lodge Somerset Grand Hanoi Hanoi Lake View Elegant Suites Sedona Suites Co Co Village Sun Red River Sofitel Plaza Pan Horizon Mayfair V- Tower

Q3/2004

Q4/2004

Q1/2005

Q2/2005

Q3/2005

Q4/2005

Q1/2006

Q2/2006

Q3/2006

- Low vacancy rate - High demand

Q4/2006

-20

-2.00%

- Rental rate: US$18 - US$45/sqm/month

CB Richard Ellis | Page 59

HANOI SERVICED APARTMENT MARKET
Future Supply
S e r vice d Apar tme nts - F utur e S upply (2 0 0 7 -2 0 1 0 )
Uni t s 600

Outlook
- Strong growth - Increasing demand - Limited supply - Vacancy rate still remains low - Rental will increase slightly - Increasing number of expatriates in Hanoi

500

400

300

559 386 352

200

100

0 2007 2008 2010

DMC Tan Long Skyline Atlanta Somerset Hoa Binh Syrena

CB Richard Ellis | Page 60

HANOI SERVICED APARTMENT MARKET
ATLANTA
Location: 49 Hang Chuoi St., Hai Ba Trung Dist., Hanoi Developer: Green Globe Co., Ltd. Marketing: CB Richard Ellis Vietnam- Exclusive Marketing Agent Project: Serviced Apartment Building 15 storey building with 2 basements for parking Completion Date & Opening Date: Q1/2007 Leasable Area: NLA: 5,000sqm 52 Apartments

Opening date
CB Richard Ellis | Page 61

Q1/2007

HANOI SERVICED APARTMENT MARKET
SKYLINE
Location: 4 Dang Dung St., Ba Dinh Dist., Hanoi Developer: Nam Hung Corporation (Nahuco) Marketing: CB Richard Ellis Vietnam- Exclusive Marketing Agent Project: Serviced Apartment Building 23 storey building with 1 basement Completion Date & Opening Date: Q1/2007 Leasable Area: NLA: 8,714sqm 88 Apartments

Opening date
CB Richard Ellis | Page 62

Q1/2007

HOTEL & TOURISM MARKET
Y-o-Y Visitor Arrivals to Vietnam
Nu mber of Fo reign Visitor A rriva ls to Vietn am
4,000,000 3,500,000 3,000,000 2,500,000 ar r i val s 2,000,000 1,500,000 1,000,000 500,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 0 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0%

Number of foreign tourist arrivals

y-o-y change

- Low fair airlines: AsiaAir, Jetstar & Tiger Airlines - 20% of 3.6 million int’l visitors was MICE tourists
CB Richard Ellis | Page 63

HANOI HOTEL & TOURISM MARKET
Tourist Profile
I nt e r nat i onal Vi si t or A r r i val s t o Vi e t nam 800 700 600 500 400 300 200 100 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 0 Taiwanese French British Japanese American Chinese

I nt e r nat i onal Vi si t or A r r i val s by P ur pose s 2,200 2,000 1,800 Thous.Arrivals 1,600 1,400 1,200 1,000 800 600 400 200 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 0 Tourism Visitting Business Other

Thous.Arrivals

CB Richard Ellis | Page 64

HANOI HOTEL & TOURISM MARKET
Room Supply: 4,924 (5, 4 and 3 star hotels)
Number of Hotels
NU MB ER OF FOREIG N VISITOR A RRIVA LS
4,000,000 3,500,000 3,000,000 ar r i val s 2,500,000 2,000,000 1,500,000 1,000,000 500,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 0 To Vietnam To Hanoi

5-star 23.53%

3-star 61.76%

4-star 14.71%

Number of Hotels' rooms
3-star 34.24%

5-star 48.01%

- 1.15 million int’l visitor arrivals to Hanoi in 2006

4-star 17.75%

- 4,924 rooms, including 5, 4 and 3 star hotel rooms - 5 star hotels: 2,364 rooms/ 8 hotels - 4 star hotels: 874 rooms/ 5 hotels - 3 star hotels: 1,686 rooms/ 21 hotels
CB Richard Ellis | Page 65

HANOI HOTEL & TOURISM MARKET
Room Supply: 3,238 rooms (5 and 4 star)
Cumulative S tock & Ne w S upply of 5 & 4 star Hotel r ooms
New supply as at year-end Stock as at beginning of the year
3,000
1 31 ,1 299

3,500

2,500

- Most of 5 and 4 star hotels came on stream in 1990s
1 31 ,1

R ooms

2,000

- No new supply over last few years - Lack of quality hotel rooms

1,500
250 1 02

1,000

500
21 8

1 02

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

CB Richard Ellis | Page 66

2006

0

HANOI HOTEL & TOURISM MARKET
ADR & Occupancy rate of 5 star hotels
Ave r age Occupancy Rate & ADR of 5 -star Hote ls
$140.00 $130.00 $120.00 $110.00 $100.00 $90.00 $80.00 $70.00 $60.00 $50.00 Q2/2005 Q3/2005 Q4/2005 Q1/2006 Q2/2006 Q3/2006 Q4/2006 Ave. Room rate Ave. Occupancy rate 50.00% 80.00% 90.00% 100.00% 100%
90% 80% 70% 60% 50%

Monthly Occupancy Rate of Hanoi's 5 -star Hotels

70.00%

40% 30%

60.00% 20%
10% 0% Jan06

Feb06

Mar06

Apr06

May06

Jun- Jul-06 Aug06 06

Sep06

Oct- Nov06 06

Dec06

- High demand - Limited supply - High occupancy rate, approximately 84% in Q4/2006 - 5 star hotels: ADR of US$128.26 as at end of Q4/2006

- Stably high occupancy rate over years - Occupancy rate as at end Q4/2006: •5 star hotels: approx 84.28% •4 star hotels: approx 90.00% •3 star hotels: approx 80%

CB Richard Ellis | Page 67

HANOI HOTEL & TOURISM MARKET
Hote l - F utur e S upply
30,000

Requir eme nt for Hotel Rooms (2 00 5 - 2 0 2 0)
Inter-Continental

2008

25,000
2007 Dan Chu Hotel

20,000
2007

R ooms

Hanoi Sofitel Metropole

20,715 15,000 11,076 5,530 5,000 4,924 0 3- to 5-star Actual Hotel Rooms as at 2005 6,285 4,170 Others

2007

Dong Loi Hotel

10,000

2007

Hoan Kiem Hotel

0

50

100

150 Rooms

200

250

300

350

1- to 2-star

Hotel Rooms Requirement as at 2020-2005

Market Highlights: - High occupancy rate - 390 new 3 to 5 star hotel rooms in 2007 - 2 licenses were granted in early Q1/2007 to build 2 5-star hotels in My Dinh area

Hotel Market Outlook: - Hot market for investors, foreign investment funds … - High occupancy rate - Limited supply - High demand - Increasing number of int’l visitor arrivals - More high quality hotels required - Tourism industry has significant impacts on property sector (hotel, retail & second-home projects)

CB Richard Ellis | Page 68

HANOI RETAIL MARKET
HANOI SUPERMARKETS
No. 1 2 3 4 5 6 7 8 9 District Dong Da Hai Ba Trung Cau Giay Hoan Kiem Hoang Mai Ba Dinh Thanh Xuan Tu Liem Dong Anh Total Number of Supermarkets 11 6 4 5 4 8 3 3 1 1 46 GFA (sqm) 17,140 8,480 24,027 10,280 2,554 7,865 1,702 63,585 440 250 136,323 Trading area (sqm) 11,533 5,580 9,310 5,870 1,004 3,520 1,702 11,725 300 250 50,794
Dong Da Ba Dinh Hai Ba Trung Thanh Xuan 8.70% 10.87% 8.70% 17.39% 13.04%

Numbe r of supe r mar ke ts by distr icts

6.52% 6.52%

2.17% 2.17%

23.91%

Cau Giay Tu Liem

Hoan Kiem Dong Anh

Hoang Mai Thanh Tri

10 Thanh Tri

T otal tr ading ar eas of S upe r mar ke ts in Hanoi (by distr ict)
Thanh Tri 250 300 11,725 1,702 3,520 1,004 5,870 9,310 5,580 11,533 0 3,000 6,000 9,000 12,000

Major players:
-Intimex -Fivimart -Citimart -Hapro Mart

Dong Anh Tu Liem Thanh Xuan Ba Dinh Hoang Mai Hoan Kiem Cau Giay Hai Ba Trung Dong Da

sqm
15,000

CB Richard Ellis | Page 69

HANOI RETAIL MARKET
SHOPPING CENTRES
sqm 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 VKO BigC Thang Long Trang Tien Plaza Me Linh Plaza Hanoi Tower V - Tower Vincom City Towers Hoa Binh Int'l Towers Leasable Area (sqm) Gross Rent per sqm $100.00 $90.00 $80.00
Hanoi City Complex The Garden Q1/2008 Q1/2008 Viet Tower 2009 2010 sqm 140,000 Ciputra Mall

Net Ar ea and Aver age Rent of Hanoi Shopping Centr es

F utur e Supply of Hanoi Shopping Centr es

120,000 100,000

$70.00 $60.00 $50.00

80,000 60,000 Thai Thinh Plaza

Ngoc Khanh Plaza

$40.00 $30.00 $20.00 $10.00 Opera Business Centre $0.00 Pacific Place

40,000 The Manor 20,000 Ruby Plaza Viglacera

Q1/2007

Q1/2007

Q1/2007

Q3/2007

Q4/2007

Market highlights:
- High occupancy - Strong & increasing demand - Limited supply - Increasing rental
CB Richard Ellis | Page 70

Q4/2007

0

Cau Giay Comlex

HANOI RETAIL MARKET
FUTURE PROJECTS: Opera Business Centre: 6B Trang Tien Str. GFA: 1,070sqm Completion date: Q1 2007 Pacific Place: 83B Ly Thuong Kiet Str. GFA: 7,500sqm Completion date: Q1/2007 Ruby Plaza: 44 Le Ngoc Han Str. GFA: 3,300sqm Completion date: Q1/2007 The Manor: My Dinh GFA: 6,000sqm Completion date: Q1/2007 The Garden: My Dinh GFA: 20,500sqm Completion date: Q1/2008 Viet Tower: 1 Thai Ha Str. GFA: 12,250sqm Completion date: Q1/2008 Ciputra Mall: Ciputra Hanoi Int’l City 4 levels 130,000sqm and 1 basement Completion date: 2009 Hanoi City Complex: Lieu Giai – Dao Tan GFA: 50,000sqm Completion date: 2010

CIPUTRA SHOPPING MALL

Market Outlook: WTO accession & the entry of foreign retailers New high- quality supply Increasing Demand New international brand-names coming to Vietnam Rental rate increase for high- quality spaces

CB Richard Ellis | Page 71

HANOI RESIDENTIAL MARKET
Trend of Apartment Supply 2007-2020
(By current proposed and under-construction NUA projects in Hanoi & an adjacent region)
35,000 30,000
100 90 80 70 60 95 94 92 91 84 88 91 94 Gia Lam 50 72 69 72 40 30 82 82 82 82 82 82 82 82 82 82 82 82 82 82

Housing: % of de tache d, se mi-de tache d & te r r ace

100 90 80 70 60 50 40 30 20 10 0 Hoan Kiem Hai Ba Trung Dong Da Thanh Xuan Long Bien Tu Liem Ba Dinh Tay Ho Cau Giay Hoang Mai Thanh Tri Soc Son Dong Anh

No. of apartments

25,000 20,000 15,000 10,000 5,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

20 10 0

54

Districts

75

83

Hanoi City

Year

Housing: % of apar tment
35 30 25 20 29 15 14 26 14 14 24 14 26 14 14 24 14 14 14 14 14 14 14 14 35 30 25 20 15 10 15 11 5 4 6 0 1 1 Gia Lam 0

Trend of Villa Supply 2007-2020
(By current proposed and under-construction NUA projects in Hanoi & an adjacent region)
6,000 5,000 4,000

No. of villas

10

3,000 2,000 1,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

0 Hoan Kiem Hai Ba Trung Dong Da Tay Ho Thanh Xuan Long Bien Tu Liem Ba Dinh Cau Giay Hoang Mai Thanh Tri

5

8

5

Soc Son

Districts

Hanoi City

Year

(Source: HAIDEP’study) (Source: CBRE)

CB Richard Ellis | Page 72

Dong Anh

HANOI RESIDENTIAL MARKET
S ale P r ice - Condos for sale
2,000 1,800 1,600 1,400 U S $ / s qm 1,200 1,000 800 600 400 200 0 Pacific Place The Manor Chelsea Park Hoa Binh Int'l Towers Ciputra Golden Westlake
0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1,000 500

F utur e S upply of Condos for sale
1,900
3,500 3,000 2,500 2,000 1,500

1,800 1,500 1,200

800

800

Market Highlights:
- Foreign developers are interested in large projects - Korean developers are very active and will be key players in future; Japanese developers are also active -Local developers dominate small and medium projects

CB Richard Ellis | Page 73

U ni t s

HANOI RESIDENTIAL MARKET
Housing Supply Vs. Actual Demand in Hanoi
30,000

Market outlook:
Strong sales outlook for quality projects Growing demand High demand for quality projects in prime location Purchase finance Infrastructure improvement

housing units

20,000

10,000

2006 2007 2008 2009 2010

Actual demand for housing

Supply (housing units)

CB Richard Ellis | Page 74

HANOI RETAIL MARKET

CB Richard Ellis | Page 75

CBRE GLOBAL OFFICE LOCATIONS

THANK YOU!
www.cbrevietnam.com

CB Richard Ellis | Page 76