THE BULLETIN

The Real Estate News & Information Source

April 25th, 2011 • Issue 13 www.coldwellbankervn.com

IN THIS NEWSLETTER:
• Eco Properties and Resorts (part 2) • Gold Markets
• Real Estate Market Indexes:
• Currency Markets
A guide for all market participants
• Stock Markets • Real Estate Market

ECO PROPERTIES AND RESORTS

PART 2: THE FLIP SIDE AND THE RISKS

SEALINKS overview - Mui Ne, Phan Thiet Source: Sealinkscity.com

While the ecological real estate market in the North is thriving, Central
and Southern Regions facing the challenges presented with these
investment projects. As a result, six areas will be inspected this year
including: Thua Thien Hue, Khanh Hoa, Quang Ninh, Lam Dong, Binh
Thuan and Da Nang.

MASSIVELY ALLOCATING LAND BUT
BUILDING IN DRIBS AND DRABS
According to the 2011 inspection plan of the Ministry of Planning
and Investment, these six localities will have to examine the
management and implementation of eco real estate and resort
projects. This is due to the fact that many projects are either
significantly behind schedule or sitting idle for a long time,
resulting in passive and even wasteful land use.
In Thua Thien Hue province, large tracts of land being reserved
with development occurring in dribs and drabs has become an
emerging issue. Since 2011, many investors have quickly set up
projects to get land, but until now they have not started their
projects. According to the Management Board of Chan May-Lang
Co., this area has 35 registered projects, but only 9 projects are in
operation, the rest are stalled. Some typical examples include the
Golf Resort-Lap An Lagoon Project, the Saigon-Chan May
Industrial Park, and Bai Chuoi Resort Project, which all lie quietly
on paper after being granted permission in 2006-2008.
The delays have been attributed to a lack of funds and investors
are now postponing development until further finances are in
order. Adding to the difficulty are the high interest rates for
borrowing.
ILLEGAL PURCHASES, SALES AND
TRANSFERS FOR “SHELTERED”
INVESTMENT PROJECTS
contractually assigned for protection and reforestation.
VILLA PROJECTS “HIDDEN” BEHIND GOLF
COURSES
It should be no surprise that Binh Thuan is also present on the list
of inspection. It is a small province with low average income but
there are 12 authorized golf course construction projects. For
these projects, there are more than 7,000 hectares of land
allocated but only 1,800 hectares actually used to build golf
courses, the rest is all for villas. As calculated, these lands can
supply about 2,000 villas adjacent to golf courses.
Recently, golf courses were licensed massively due to the local
self-control in approving the licenses, not by the Government’s
approval as before. This made the number of golf projects
increase but also increases the need for inspection to help
reshape the local plans to make them more appropriate.
RISKS OF PROJECTS BEING SUSPENDED
One project in Khanh Hoa Province is an example. In early 2004,
Khanh Hoa province approved this "mega project" with a total
are of 2,300 hectares (about VND25 billion/hectare) and more
than 58 investors. But afterwards many investors have
withdrawn, forcing Khanh Hoa Province to revoke 20 delayed
projects in 2007. At this time, Cam Ranh Peninsula Northern
Resort Project had only 5 out of 30 projects with construction
permits.

This situation is quite common in Lam Dong Province, one of the
localities on the list of inspection. The authorities in Lam Dong
have lately discovered many illegal property trades or transfers
done under the name of “investment projects”. According to Lam
Dong People’s Committee, in 2006-2010, there were 236 eco and
resort projects in Da Lat and the surrounding area, with total
registered capital of approximately VND46.5 trillion. Of these,
142 projects were granted investment certificates, but only 65
projects began construction, and finally only 19 of these have
been completed and put into use. Particularly, the tourist area of
Tuyen Lam Lake (Dalat) has 30 registered projects, with total
investment over VND7.5 trillion, but only 14 projects are
underway.
To overcome this situation, Lam Dong People’s Committee has
sent documents to other departments to propose refusing
permission for organizations and individuals to invest in forest
property as well as lease lands or forests that have been
IMPLICATIONS IN THE MANAGEMENT OF
STATE
Obviously, the fast development of ecological real estate and
resort projects has brought about many unfortunate
implications. First, this project “indigestion” will result in a
wasteful uses of land and labor resources as well as a variety of
harmful factors for the environment. In addition, the available
land fund in Binh Thuan, Khanh Hoa, Da Nang, Quang Ninh and
Thua Thien Hue are now depleted. Nevertheless, there is no
good effect because of the inability to deploy the project of those
companies. Thus, it entails other implications in the macro
management, operation and the environment.
According to many experts, booming eco projects without the
clear development strategy would have bad effect on tourism in
particular and wasting the natural resources of Vietnam in general.

Real Estate Market Indexes:

A GUIDE FOR ALL MARKET PARTICIPANTS

Transparent and accurate information on property market activities is obvi-

ously essential for its efficient development. Policies aiming at the property
market can be based on a long term basis and the information risk for
market participants may be lowered accordingly. Therefore, the introduction
of REMI is expected to bring benefits for real estate markert in the future.

There has recently been a critical issue within Vietnam real index calculation is collected from notarised contracts, property
estate market, with the lack of accurate and transparent indexes ownership right and land use right registrations, real estate trad-
from which the market participants can faciliate their investment ing floors.
and management activities. The temperature of the property REMI Example:
market are usually measured from the data given by real etstae REMI for Mission Viejo, California
agent companies and trading floors. If the are a high number of
transaction activitives, real estate price may expericence an Monthly 2009 REMI values from 19,380 closed escrows

upward trend and vice versa. However, this is not a correct in Mission Viejo, California (01-2000 = 100)

method for measuring the market situations and may result in a Date REMI
Price
Sales Days on market
high level of risk for market participants as the reliability of those (US dollars)
Jan/2000 100 257,500 90 27
information is hard to be tested. Moreover, information issuers Jan/2009 116 415,000 105 61

can take advantage over other participants. Feb/2009 152 480,000 87 41

Mar/2009 160 426,000 125 38
Apr/2009 106 420,000 109 72
The Ministry of Construction has recently imposed Circular May/2009 146 485,000 118 61

No.20 which authorises the pilot program of building and imple- Jun/2009
Jul/2009
162
154
460,000
452,000
150
159
56
64
menting several real estate indexes at four cities: Ho Chi Minh, Aug/2009 181 480,000 138 41

Ha Noi, Da Nang, Can Tho. The Real Estate Market Indexes (REMI) Sep/2009 172 453,600 156 49
Oct/2009 190 483,000 158 43
incoporates the price index and the quantity index in a particular Nov/2009 185 497,500 124 36

local market. The selected property types are residential apart-

ments, residential houses, land lots and offices for lease. Data for Source: The Real Estate Finance Journal - Fall 2010

This is expected to have those following positive infuences on

property market members:
REAL ESTATE MARKET AUTHORITIES AND
OTHER SUPERVISION BODIES
At the moment, most of the real estate policies are based on a
short term basis and there has been a shortage of database for
market authorities to impose long-term vision policies. The prop-
erty price speculation in Ba Vi in May 2010 is an example of
effects caused from the lack of transparent property planning
policies. As the REMI is a parameter for actual activities of the
market, future trends can be interpreted accordingly. Long-term
macroeconomic policies, therefore, can be easily planned and
this may bring stability to the policy-planning work. As a result,
the risk from a changeable investment policy can be significantly
minimized. The government can also determine an appropriate
time to intervene in the real estate market to stimulate demand
or cool down the market. As a result, macroeconomic policies
aiming at the property market may have a higher degree of
efficiency on a long term basis.
BANKING SYSTEM
Có nên gửi tiền vào ngân hàng?
There is a strong connection between the real estate market and
the banking system. According to Deputy Minister of Construc-
tion, the proportion of outstanding loans given to property
industry over the total oustanding loans to the economy in Ho
Chi Minh city and Ha Noi at the end of 2010 was 47% and 16%
repspectively. In Hong Kong - one of the most developed prop-
erty market in the world, property loans accounted for approxi-
mately 30% of the overall outstanding loans. The State bank of
Vietnam can rely on the REMI to determine relevant monetary
policies targeting real estate loans. For instance, if the risk of a
real estate bubble appears, the Central bank can limit the loans
to the property industry.
REAL ESTATE DEVELOPERS AND
CONSTRUCTION FIRMS
Real estate developers can rely on the REMI to obtain an under-
standing of the current supply status for different property
market segments. From those databases, they can adjust their
project investment and development plans to meet the actual
market situation and avoid concerntrating on market segments
which are in a supply surplus situation. The residential apart-
ment supply in Ho Chi Minh city is in surplus condition with the
total 2011 Q1 supply accumulating at approximately 19,000
units. This can be a result of a concentration on residential apart-
ment segments with lacking of long-term vision.
From the perspective of construction firms, they can base on the
current status of the market supply and demand to implement
appropriate material stocking plans to reduce time and cost.
MARKET RESEARCH AND CONSULTING
BODIES
With the implementation of the REIM, the market research and
consulting bodies will benefits from a relibale and consistent
information source to create market reports. Market forecasting
will have a longer term vision and a higher level of accuracy and
reliability.
HOME BUYERS
Based on the information given from the market index and
market research bodies, home buyers can determine an approri-
ate time to purchase when there is a supply surplus and property
products approach their real market value. Therefore, they can
avoid participating in the real etstate market at a time when the
property supply is stressed. They can also determine whether it
is an ideal time to own a home or wait till a more favourable
time.
Transparent and accurate information on property market activi-
ties is obviously essential for its efficient development. Policies
aiming at the property market can be based on a long term basis
and the information risk for market participants may be lowered
accordingly. Therefore, the introduction of REMI is expected to
bring benefits for real estate markert in the future.

STOCK MARKET

STOCK MARKET FROM 13-22 APRIL 2011

• On 9 April, the State Bank of Vietnam (SBV) finally decided to increase the foreign currency reserve requirement by
2% and ceiling dollar deposit rates by 3%. This is the dual solution to cool down credit growth of foreign currencies while
raising the domestic currency value. In this context, the information can be considered good news for the stock market.

• After four long holidays, the market continued to see gloomy signals. The increased compulsory reserve
requirement for foreign currencies last week has neither caused negative effect nor brought any hope for investors.

• Last week, many localities in the country announced the consumer price index (CPI) in April, most of which
exceeded 3%. In particular, Hanoi CPI is 3.28%, 3.16% in Ho Chi Minh City. The International Monetary Fund (IMF) warned
of inflation in Vietnam and forecasted the inflation in Vietnam in 2011 may reach levels of 13.5%, almost double against
the target figure of 7%.

Below are some of the information and facts in the stock market in the country last week:

13 APRIL: The Ho Chi Minh City market received some support from key stocks such as BVH and MSN; however, demand power
on these stocks gradually declined to levels before the opening. Meanwhile, at the HNX exchange, many large-caps were
discounted or cautiously traded making the HNX-index decline from its opening.

The VN-Index closed the session at 460 points, HNX Index down to 90 points.

The global stock plummeted without brakes. The stock exchanges of Europe and Asia faced the strongest drops, over 1%.

14 APRIL: The market has not received any good news; bad news still comes with toweringly high CPI forecast in April.

Huge selling pressure caused the VN-Index to reverse from earlier gains and fall by the end of trading. Liquidity saw significant
rises compared to previous sessions, which indicated that many investors have taken advantage of the market to sell their stocks.
HNX-Index was down 0.39% to 89.07 points; this is its fourth consecutive negative session.

15 APRIL: Movements of the HNX and HOSE were almost horizontal with small fluctuations and low liquidity leading to bleak
transactions in both exchanges. Trading volume on the HNX and HOSE remained low. HNX-Index closed the session at 88 points,
VN-Index rose slightly by 0.07%.

18 APRIL: After a long time of fluctuation around 458 points, the trading session late this morning experienced heavier selling
making the VN-Index decrease by 5.5 down to 455.46 points (-1.19%) , its lowest level in 6 weeks.

Strong selling in the last session pushed the VN-Index to drop over 5 points, HNX-Index down 86 points. Demand does not
increase despite great drop in stocks.

The SSI, considered the most effective trading company, lost VND102 billion in QI/2011 which shows negative signs for stock
companies in the current gloomy market situation. The market sees no "waves" for profit gains together with low transaction
volumes leaving brokers at a standstill.

19 APRIL: The Ho Chi Minh City Statistics Office announced the CPI in April has increased 3.16% compared to March, lifting the
inflation in April up to 8.2%. This is also the highest rate since May 2008. CPI in Hanoi also had very strong growth, at 3.28% over
the previous month.

20 APRIL: The market received the news that CPI in April in Hanoi and Ho Chi Minh City have increased at very high levels, above 3%.

21 APRIL: VN-Index increased on the heels of some major stocks gaining ground, however most listed stocks actually decreased.
The market is still in a state of waiting and liquidity may be not improved soon.

22 APRIL: A series of stocks sliding down quickly pulled the VN-Index to below 460. HNX-Index sees no signal of bounce-back.
The liquidity value at HOSE experiences the fourth consecutive session below VND500 billion. In Hanoi, the situation was even
more serious: less than VND300 billion.

GOLD MARKETS
38.00
37.89 37.89
37.85

37.80
37.68
37.63
37.59 37.58
37.60
37.48 37.61
37.40
37.36 37.36 37.38
37.40 37.33 37.46 37.45
37.35 37.23
37.19
37.20 37.25 37.25 37.27
37.04 37.06 37.20
37.19
37.12 37.12 ask
37.00
bid

36.93 36.94 kitco

36.80
36.82
36.74
36.60
36.64

36.40

36.20

36.00
4/11 4/12 4/13 4/14 4/15 4/16 4/17 4/18 4/19 4/20 4/21 4/22

GOLD MARKETS from 12-22 April 2011

• Most commercial banks have strongly reduced interest rates for gold recently. Several banks have drawn close to
0% per annum (0.01% per year at Sacombank, effective from 15 April 2011; from 0.5% - 1.1% per year at ACB, etc.).
Over the long holiday (April 9 - 12), the domestic gold trading market was gloomy with few transactions. From 11-16
April, due to psychological factors, gold prices increased significantly compared with the previous week. Transactions
saw more positive signs.

• Meanwhile, international gold prices experienced strong increases in consecutive sessions since 15 April, and
particularly shot up after Standard & Poor's lowered the long-term prospects of US debt.
After fluctuating from VND36.9-37.3 million, the domestic gold prices suddenly shot up to over VND37.5 million/tael
on 20 April. International gold prices also exceeded USD1,500/ounce.

Significant events affecting the gold markets in the past two weeks:

12 APRIL: SPDR Gold Trust has more than four tons of gold, which shows that market participants tend to be fewer.
In the world market, gold lost 1% in the nightly trading session of 12 April due to trading selling for profits and sharp declines in
petroleum prices to relieve inflation concerns. Domestic gold prices continued to fall in line with the world price. Transactions
were also bleak.

13 APRIL: The Japanese Government officially lowered the economic forecast for the first time in the past six months.
On the same day, Japan faced more aftershocks of measuring up to 5.8 on the Richter scale, shaking buildings in Tokyo. The
Japanese Government raised the severity of the crisis in TEPCO nuclear power plant to the same level as the nuclear catastrophe
in Chernobyl in 1986.

Even though gold prices have plummeted from their record levels, some analysts believe that gold's upward trend remains
intact. Unrest in Libya and the European public debt situation led investors shift to gold as a safe haven.

14 APRIL: Following the declining trend from the afternoon of 13 April, the domestic gold price continued to drop by
VND30,000/tael in the early trading session today, fluctuating around the VND37 million/tael mark. Meanwhile, world prices
bounced back slightly in last night’s session and continued to go up in the morning of 14 April.

International gold strongly shot up on the night of 13 April due to the weakening of the greenback while in the hopes that the
Federal Reserve (FED) will continue loosening monetary policy.

15 APRIL: Today, the domestic gold price began to soar in line with the world price: VND120,000/tael increase in the purchase
price and VND210,000/tael in sales price compared with the late afternoon prices yesterday.

16 APRIL: While world gold prices closed the session at a record high, USD1,486.40, domestic gold was at a standstill, with some
declines. The dollar continued to depreciate and while high inflation in China supported the precious metal.

18 APRIL: Domestic gold prices were adjusted up compared to 17 April. Meanwhile, last night, concerns about inflation have
pushed international gold prices to a new record, a mere USD14.00 shy of USD1,500 per ounce.

The domestic gold market has continuously stayed above VND37 million over the last 10 days when international prices set a
new record for consecutive days. However, the gold growth is still slower than internationally as the free USD is increasingly close
to the quoted buying and selling prices of commercial banks. If we convert the exchange rate of the free exchange rate at
VND20,980/USD, international gold conversion is more expensive than that in the country by about VND150,000.

Also, the credit rating agency Standard & Poor's lowered the US debt prospects from "stable" to "negative", which increases
psychological avoidance of risk in the market, pushing the gold price up.

19 APRIL: Statistical Office of Ho Chi Minh City announced the consumer price index (CPI) in April in the city had risen 3.16%; the
Hanoi CPI increased 3.28% compared to March.

Gold brands in the country today were slightly up. There were even some decreases after the international gold market
increased rapidly on some day (asymptotic level of USD1,500/ounce.)

20 APRIL: The State Bank of Vietnam (SBV) held a meeting with commercial banks to get suggestions from for implementation
of establishing future management mechanisms for gold trading and the gold market as well as reviewing the gold mobilization
and lending of credit institutions which are licensed to conduct foreign exchange.

After certain fluctuation from VND36.9-37.3 million/tael, domestic gold prices suddenly shot up to over VND37.5 million/tael on
20 April, the highest level over the week.

International spot gold prices also exceeded USD1,500/ounce.

21 APRIL: Gold prices bound sharply to their highest levels in recent weeks since the world gold prices constantly broke new
records. As of 9h20 on April 21, spot gold in Asia reached USD1,506.7/ounce.

In addition, the strong depreciation of the USD has pushed investors to seek commodities such as gold and oil, considering them
as safe investment channels to combat inflation and the uncertain economic situation.

22 APRIL: Domestic gold bar prices slightly declined on the morning of 22 April. The reason gold prices turned lower is due to
the hard drop of spot gold prices in the morning session in Asia.

Meanwhile, the world gold price has continuously set new records. Spot gold is up close to USD1,509/ounce before falling back
slightly. On the morning of 22 April, gold at the Kitco floor (US) was traded at USD1,506.8 an ounce.

CURRENCY MARKETS
21.00

20.95 20.94 20.94 20.94

20.93 20.93 20.93 20.93
20.92 20.92

20.93 20.93 20.93 20.93 20.90

20.92 20.92 20.92 20.92
20.90
20.91

20.85
20.83
20.85
ask
20.80 bid
Poly. (ask)
Poly. (bid)
20.75

20.73
20.70

20.65

20.60
11.04.11 12.04.11 13.04.11 14.04.11 15.04.11 16.04.11 17.04.11 18.04.11 19.04.11 20.04.11 21.04.11 22.04.11

FOREIGN EXCHANGE MARKET: 13-23 April 2011

• From April 9, the State Bank of Vietnam (SBV) decided to increase the foreign currency reserve requirement by 2% and
ceiling dollar deposit rates by 3%. This is the dual solution at the same time to cool down credit growth of foreign currency,
raising the domestic currency value.

• There has not been any official information about the management mechanism for gold businesses and the gold
market as well as review of the implementation and mobilization of the gold lending of credit institutions which are licensed
to conduct foreign exchange.

• From April 13-19, the SBV continually increased USD prices, up to VND20,773/USD on 19 April. However, USD purchase
quotes dropped.

USD prices started to cool down on April 20 and continued to decrease in the week-end sessions. According to experts, the
above-listed rates show the commitment of the SBV that "they will manage relatively flexible exchange rate in both direc-
tions – both increase and decrease to tailor the forex supply and demand in the market."

Below is the information and events in the foreign exchange market over the week:

13 April: Inter-bank average exchange rate on 13 April is quoted at VND20,723 per dollar by the SBV, unchanged from the previous
two days but still at a record high.

Today, the Chinese yuan suddenly bounced to the highest level in 17 years due to predictions of policy makers to continuously
provide more measures to curb inflation.

The yen devalues after 4 consecutive increase sessions in 2 days against the euro.

Investors expect the European governments will continue to raise interest rates after the increase last week.

14 April: Inter-bank average exchange rate quoted today by the SBV increased by VND5, down to VND20,718 after two consecutive
days of record highs.

15 April: Market forecast showed that the debt crisis in many European countries including Spain and Greece will be curbed; the
ECB will continue to raise the base rate.

Against the dollar, the euro closely follows its peak in 15 months.

The US dollar fell to its lowest level since early April against the yen because of news of unexpected increases in number of the 1st-
time unemployed in the US and consumer price index rose more slowly than predicted by experts.

More market forecasts indicate that the FED can continually maintain base rates at record lows.

In early session yesterday, the euro devalued as a result of the worry that Greece will restructure their debt; the government bond
rate hit record high.

Inter-bank average exchange rate quoted today by the SBV increased VND5 against 14 April, hitting its highest record:
VND20,723/USD.

18 April: On the forex market today, USD interbank rate is lifted by VND5, formally establishing a new peak at VND20,728/USD.

19 April: USD interbank rate continues to set a new level: VND20,733/USD, a VND5 increase compared to the old record set last
weekend. Under this scenario from a few weeks, while interbank rates rise, USD purchase prices quoted at commercial banks will
all increase. However today, when USD selling price of banks increased by VND5, the USD purchase quote showed declines, widen-
ing the gap between buying and selling.

20 April: Today, the SBV reduced the inter-bank average exchange rate to VND20,728/USD, from VND20,733/USD on April 19. On
the world market, the US dollar continues to weaken against most other major currencies. In the Tokyo market, at the session on
21 April, the USD had been sold out.

The same day, the SBV had a meeting with commercial banks to get suggestions from such banks for implementation of establish-
ment of future management mechanisms for gold trading and gold markets as well as reviewing gold mobilization and lending of
credit institutions which are licensed to conduct foreign exchange.

21 April: USD exchange rate continues to cool down by VND5 to VND20,723/USD. Thus, USD inter-bank has increased by VND30
from the date on which the exchange rate has been adjusted (February 11) and increased by VND65 compared to the lowest level
over last two months (VND20,658/USD)

In the international forex market, the greenback has continued to devalue due to increasing demand for currencies with high inter-
est rates. It is the successful national debt auction of Spain that makes the demand continually dominate over the market.

22 April: USD interbank rate decreased for 3 consecutive days. Most of the banks quote USD price below the ceiling rate from
VND15 – 30/USD.
 REAL ESTATE MARKET SUMMARY
Hanoi
PROJECTS
• Construction of Bright City Complex begins with an investment of VND1.8 trillion, located on Road 32,
extended toward the west of My Dinh by 5km. The project consists of four 35-story buildings on area of
15,493sqm by the investor Thang Long Co., Ltd.

• Bemes Kien Hung Apartment (Thanh Tri District) was offered at the price of VND21 million/sqm,
including 500 apartments in block CT4A with areas from 61-110sqm/unit.

• Soc Son District would stop implementing six projects with total investment of more than VND48
billion, including the construction of the road toward East-West Street.

• Hanoi People's Committee approved investment of Thanh Lam Dai Thinh 2 Urban Area - With HUD as
the investor, the project has a total investment of VND1.846 trillion on an area over 55ha, located in Thanh
Lam and Dai Thinh Commune, Me Linh District, Hanoi City.

• Hanoi People's Committee approved the construction of Apartment Building project for staffs and
soldiers from the Institution of Strategy and Public Security Science (Ministry of Public Security) as well as
for staff of some other agencies of the City.

• FTP transferred 89 Lang Ha building project, specific transferred value has not been disclosed.
According to FPT representative, if FPT continues to invest in this project, they will have to input an addi-
tional VND600 billion into the project while the usability value is not high.

• Topping Out Ceremony of Indochina Plaza Hanoi - This is the multi-functional complex of office,
5-story commercial center and apartments. Total number of apartments is 390 units.

• Implementation of 11 projects of social housing on total area 21ha, with nearly 12,000 apartments.

• Construction of Sunny Garden City Urban Area (24.4ha) next to Thang Long Boulevard, 14km from
National Conference Centre. The project consists of 330 garden villas and each lot has areas from 180-
530sqm and 300 apartments with areas from 90-156sqm. The owner is CEO Investment Joint Stock Com-
pany (CEO Group).

• Project New Urban Thanh Lam-Dai Thinh 2 continues to be implemented - 6 plots for constructing
1,456 high-rise apartments with areas from 45-60sqm/unit to serve the needs of low-income people. The
developer is Housing and Urban Development Group and the project is expected for completion in Q2/2015.

• Adjustment of the detailed planning of Bac Co Nhue-Chem into high-rise residential lands of social
housing and houses for staff of National Political Publishing House.

• Approved planning 1/500 of housing area of High Command of Hanoi Capital - The land area is over
6ha, located in Yen Nghia Ward, Ha Dong District. The owner of project is Housing and Urban Investment
and Development Co., Ltd - Ministry of National Defense.

• Approved partial adjustment Land Use Planning at plot B3-4/CN5 in Sai Dong, Viet Hung Ward, Long
Bien District. Approximately 9,725 sqm of land changed functions in order to construct the apartment com-
plex for sale combined with Sai Dong commercial services and social infrastructure sector. The rest of the
area (about 90,749sqm) is reserved for industrial and storage land.

• Revenue of the hotel market in Q1 reduced by the inflation and the devaluation of Dong, as well as
fluctuations in interest rates impacting market demand.

• Villas priced at VND130million/sqm - Tu Liem, Tay Ho and Cau Giay Districts led the secondary offer-
ing at an average price above VND130 million/sqm (USD6,400/sqm). Me Linh and Quoc Oai Districts have
the lowest offered prices from USD800-1,200/sqm.

• Invested capital of The South of Dai Co Viet Street project increased to VND1 trillion - Completion
time is adjusted to Q2/2015. The owner is Housing Renovation and Development JSC, and the project
includes residential condominiums, public works services and state offices.

INFRASTRUCTURE
• Le Trong Tan Street will open to traffic in July, hand over plan for the developer (Geleximco) would
be completed on 21st April at the latest.

• Construction of Ring Road 2 and 5 crossing Nhue River to Ring Road 4 with length approximately
7,300m is expected for construction from Q1/2012 to Q2/2016.

• Investment of more than VND 1.1 trillion to build transportation roads in Thanh Tri to connect two
roads around Chu Van An monument, with total length over 3.6km.

• Completion of National Highway 32 project (Cau Dien-Nhon) set for July, which is the announce-
ment of the Hanoi People's Committee to the Department of Transportation. Accordingly, the construction
units must quickly execute the progress and cleanup for the entire traffic route in June.

• VND70 trillion to build No. 4 Belt Road - According to oriented research, No. 4 Belt Road has a total
length of about 98km, stretching across 16 districts of four provinces.

POLICIES

• Inspection of building works - City leaders asked to select experienced and well-qualified survey con-
sultants and designers with legal status for the project implementation. At the same time, these responsible
people are required to inspect and monitor the quality of surveys and construction designs. If investors
cannot monitor the project, they must hire other qualified consultants.

• Antique Villa at 33 Tran Phu is banned from selling - This decision based on The Villa Fund Manage-
ment Project by Hanoi People's Committee issued on 21/01/2009. According to the official letter, it can’t
replace the villa by a high-rise building or a building with a larger density than these villas.

• Inspection of issuance of land use rights certificate (LURC) before 15th June - Hanoi People's Com-
mittee has released their decision on the administrative inspection and the observance of the legal provi-
sions on the issuance of land use right certificates and home ownership certificates for districts and towns.
Eighteen districts and towns must hold inspections of LURC and home ownership certificate before 15 June
2011.

• Expanding the range of entities that are entitled to rent social houses - these will now include people
who contract with administrative organizations and state authorities.

• Continued sale of state-owned houses - On 13 April, Hanoi Construction Department chaired the
meeting on the sale of state-owned houses under Decree 61. Accordingly, the People's Committees of
districts should urgently issue certificates for the self-managed housing fund (currently about 32,000 units).

Ho Chi Minh City

PROJECTS

• Bids for the first land lots in Thu Thiem Urban Area, District 2 aim to find potential investors for office
building projects in the future. As planned, this area spans approximately 23,000sqm and will be developed
as commercial buildings with multi-functional services with maximum heights of 12 stories.

• Xi Riverview Palace offers apartments, located in Thao Dien, District 2, for three apartment buildings
with prices ranging from USD2,300-2,600/sqm.

• Apartments offered in 4th stage of Lotus Garden Tan Phu Project - Apartments have areas from 52-
86sqm, priced at VND15.5-19million/sqm with expected handover in late Q1/2012.

• Developer to be designated for the 11,000sqm quadrilateral project at Nguyen Hue - Ho Tung Mau -
Huynh Thuc Khang - Ngo Duc Ke Street. This land has drawn investment since 2007, yet construction has
not been executed so far.

• Land dispute at 112 Nguyen Thi Minh Khai Street: Pending to wait for leader’s solution - Vice Chair-
man of HCMC People’s Committee (PC) has directed to suspend construction of Viettinbank headquarters
which is in dispute with the Le Quy Don High School and the Vice Chairman will report this to Municipal
Party Committee and the PC Chairman for instruction.

• Apartments offered at Investco Babylon project: 250 units with areas of 68-185sqm, located in Tan
Thanh Ward, Tan Phu District. The owner is Investco, with construction beginning in Q3/2010 and expected
handover in Q4/2012.

POLICIES

• People can only select resettlement housing in the solution content of construction by Ho Chi Minh
City People's Committee plans to renovate and rebuild the old houses that are damaged and degraded in
Ho Chi Minh City for the period of 2011-2015. Accordingly, people involved in this project only have the
choice of resettlement instead of compensation as a commercial housing project (can choose one of these
options as monetary compensation, resettlement or temporary housing awaiting arrangements for resettle-
ment).

• Ho Chi Minh City People's Committee has official letter related to land interchange of plot 112 Nguyen
Thi Minh Khai, District 3 for Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).
Accordingly, the consistent policy is finding for Vietinbank another location whose planning and area are
suitable with the current one. The land located at 112 Nguyen Thi Minh Khai, District 3 is recovered for Le
Quy Don High School expansion subject to approved plan.

• Declaration for the land compensation unit price for three projects in District 9 and Cu Chi District on
13 April. The highest price is VND9.2 million/sqm on Nguyen Xien Street.

• Plans in place to demolish of 30 old apartments according to renovation and reconstruction draft of
downgraded old houses in 2011-2015. The project has been consulted with relevant departments by the
Construction Department.

Bac Ninh
Construction of 6ha for 300 conjoined villas, located in An Binh Commune, Thuan Thanh District. Phu
Truong An Trading JSC is the project investor and developer.

Quang Ninh
• Inspections for resort real estate projects were set for the afternoon of 14 April. According to the Min-
istry of Planning and Investment program, the Department of Planning and Investment is responsible for
coordinating with the provincial People's Committee Office to complete reports about the state manage-
ment and implementation of investments in real estate, tourism and resorts in Quang Ninh.

• Completion of site clearance for Metro in Ha Long Bay within April - The 2.5ha retail center project in
Ha Tu Ward, Ha Long City is expected to be launched and opened in 2011. The project owner, Metro Cash
& Carry Group, has been handed over 2.28ha for the project. One household still does not cooperate in the
site clearance.

• Two foreign banks invested in Mao Khe thermal power plant - The plant was started on 8 July 2009.
Expected to put into operation in late 2012, the plant will provide approximately 2.6 billion kWh for the
national grid per year.

Hai Phong
Vinaconex ITC offering 210 villas of Cat Ba Amatia - The complete villas have a price range from VND2.8-3
billion per unit, depending on location. Cat Ba Amatia has an area of more than 172ha with an investment
of USD1 billion.

Vinh Phuc
Dai Lai Paradise Resort by Nhat Hang Company found their distributor. The project has 250 plots of ecologi-
cal villas with areas from 200-500sqm and four zones: Bich Son (for foreigners), Phu Thanh (for the intelli-
gentsia), Hong Phat (for businessman), and Van Thuan (for politicians).

Hoa Binh
• Approval 1/500 detailed planning for the 8.5ha Royal Park Residential, located in between of Lang-
Hoa Lac Road and National Highway 21. The project is located on the hillside and villas have areas from
400-2,000sqm. The total investment is over VND31 billion with Linh Phuong Investment JSC as the investor.

• On 10 April, Melody Sky Villas were offered for sale in Hoa Binh with a price of VND1.2 billion per unit
with areas from 300-400sqm. The entire infrastructure, landscape and public areas are expected to be com-
pleted in Q3/2012.

Ha Nam
Scaling up Minh Hai Urban Area from 76ha to 86ha located on Duy Minh and Duy Hai Communes, Duy Tien
District. Ha Nam Provincial People's Committee has agreed to the 1/500detailed plan for construction by
Detech Land Real Estate JSC.

Nghe An
Upcoming offer for sale of villas in Cua Lo Golf Resort project. The project includes an 18-hole golf course,
golf club, restaurants and other services for golf, Wonder beach amusement park, 3-5 star hotel with 500-
seat conference room and seven villa resorts with 300 units. The project is invested by Cua Lo Golf Corpora-
tion with a total capital of VND1.5 trillion

Quang Ngai
Construction of 115ha golf course in Dung Quat Economic Zone in Van Tuong Urban, including 18-hole golf
course occupying an area of about 76ha. HUD is the investor.

Da Nang
• 360 low-income apartments are offered at VND5.2 million/sqm (about VND300-500 million per unit,
depending on area). The project includes eight 7-story blocks with 805 apartments.

• Ecorio project has launched on a total area of 59.5ha. The project has been developed on an area of
18ha with 147 houses and villas with ecological functions of a luxury resort.

• The Summit coastal resort offered for sale on 16 April - located on Ngo Quyen Street, Son Tra Dis-
trict, the project has 356 apartments with areas of 50-100sqm (1-3 bedrooms). Apartments with one to two
bedrooms are priced from VND900 million to VND1.2 billion.

• USD1.6 billion investment in Golden Hills project with an area of 400ha in Lien Chieu District. The pro-
ject is expected to be completed in 2014.

• Relocation of nearly 1,700 households for resettlement in 2011, in which 1,460 households will hand
over their site in 2010 and 230 households will hand over in 2011.

Khanh Hoa
• Sales opened at Nha Trang Star City condominium hotel in Nha Trang with prices from VND1 billion -
StarCity is 4-star hotel with an area of 2,400sqm providing more than 280 rooms, including 66 condotels
(apartment combined with luxury hotel).

• Approved residential planning located in Ngoc Thao islet, Ngoc Hiep Ward, Nha Trang City, with 60ha
for 3,800 people (estimated population in 2020).

Ninh Thuan
Approval for investment in Thap Cham 1 Residential with 23,400sqm in area and investment of VND35
billion, including more than 1,800sqm for schools, 20,600sqm for apartment buildings and green parks with
the remaining area for public works.

Dong Nai
VinaLiving launched Dai Phuoc Lotus show flat of Sen Phuong Nam Villas project - is deploying in southern
area of Dong Nai Province. The project has 332 villas with areas from 210-350sqm.

Binh Duong
Land plots H26 in My Phuoc 3 Urban Area offered, with 150sqm areas priced from VND250 million.

Binh Phuoc
Commencement of 7ha residential area in Tien Thanh Commune, Dong Xoai Town, including housing,
flower gardens, transportation, kindergarten and public infrastructure in which transportation accounts for
38.5%. The project is invested by Thien Phuc Loi Real Estate Company – Binh Phuoc branch.

Long An
• Comprehensive inspection of land use management - Long An has deployed 14 inspections for plan-
ning, planning and land use management in 14 districts throughout the province, now surveying data from
2001-2010. The inspections are expected to finish in September 2011.

• Allocation of 7.5ha land for Phuc Long residential resettlement construction located in Phuc Long
Industrial Park, Long Hiep Commune, Ben Luc District. The work is planned on an area of 7.5ha, including
residential construction and public utilities such as kindergarten, post office, supermarket, commercial
financial services and parks.

Ba Ria - Vung Tau

"Billion USD" projects delayed because of site-clearance - the three projects with large foreign direct invest-
ment (FDI) delayed in Ba Ria - Vung Tau are Saigon Atlantic Hotel, The Magic World Parks and Skybridge
Dragon Sea.

Can Tho
Approval of 1/2000 plan for urban area and Mekong Delta University, with total area of 320ha, located in
Cai Rang and Phong Dien Districts, Can Tho City. The project covers 163ha of Can Tho Urban Area, Mekong
Delta University at 102ha and two 55ha resettlement areas.

Hau Giang
Adjustment of the master plan of Vi Thanh Urban – general planning to 2030 for 18,400sqm of land for edu-
cation is adjusted to residential land with medium density. According to the approved master plan, the total
area for urban development is approximately 1,500-2,000ha, of which about 1,100-1,250ha is civil land.

(NATIONAL) POLICIES
• Low-income housing will take 30 days for evaluation, according to documents issued by the Ministry
of Construction. Within 30 days from the date of submission, the Provincial People's Committee shall
appraise and send documents to investors.

• Upcoming Domestic real estate investment fund is subject to the draft just launched by State Securi-
ties Commission of Vietnam. Particularly, this is the first time that guideline regulations of the fund estab-
lishment have been provided.

• Before putting into service, the apartment must have a safety bearing certificate - Circular
03/2011/TT-BXD issued by Ministry of Construction on 6 April 2011 is applied to local and international
organizations or individuals whose operations require them to be surveyed, appraised and to get certificates
of bearing safety eligibility and quality construction work conformity across Vietnam.

• Ministry of Finance has issued Circular No. 39/2011/TT-BTC on guidance for some regulations
released by the Prime Minister about state-owned real estate arrangement and settlement. The circular
comes into effect from 10 May 2011.

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.

Newsletter • Issue 13