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CBRE Vietnam Real Estate Spotlight – W22 2018

Multimillion-dollar bridge leading to Diamond Islet opens in HCMC, Vietnam will have a 350km/h high speed railway, US$806.5 million of FDI poured into real estate…

 

US$806.5 million of FDI poured into real estate

NDH

Up to May 20, Vietnam has attracted 1,076 newly licensed FDI projects with registered capital of US$4.657,4 million, up 14,6% in number of projects and 16.8% in registered capital, compared with those of the same period of 2017. If the additional registered capital of the licensed projects from previous years is included, the FDI in real estate field will reach US$806.5 million. In the first 5 months of the year, there were 43 provinces and central cities having new licensed FDI projects, of which HCMC had the largest registered capital of US$540,9 million, accounting for 11,6% of the total newly licensed capital. South Korea is the largest investor with US$1.019,5 million, accounting for 21,9% of the total new registered capital.

 

 

Multimillion-dollar bridge leading to Diamond Islet opens in HCMC
Tuoitre News

The three-kilometer-long, 22-meter-wide bridge spans the Giong Ong To River, a tributary to the Saigon River. The structure connects District 2 with Diamond Island, the site of several luxury apartment buildings, along with exit ramps leading to a large uptown residential area closer to the city center. Before the bridge opened, Diamond Islet residents used Dong Van Cong Street in District 2 to commute to neighboring districts, causing frequent congestion. The bridge, therefore, is expected to relieve the situation by serving as an alternate route during rush hours. The structure cost VND347 billion (US$15 million) to build and was completed nearly two months behind schedule

 

 

Vietnam will have a 350km/h high speed railway
CafeLand

The North-South express railway will be built in 3 phases and it is expected to be put into operation at the speed of 350km/h after 2050.

This high-speed railway on the North-South axis is expected to be built with the following phases: By 2020, to study the plan on building a new high-speed railway. From 2020 to 2030, to build a new high-speed railway (with an initial speed of 160 km/h to under 200 km/h). By 2050, to strive to complete the entire railway on the North-South axis. After 2050, the railway will be deployed and used at the speed of 350 km/h.

 

 

Bamboo Capital, Pavillion Corporation eye Vietnam’s largest water-borne project
VIR

Envisioned as artificial islands in Danang Bay, Lotus Island could become the largest water-borne project in Vietnam to date, simultaneously, it will mark a breakthrough in foreign investment capital inflow in Vietnam. Bamboo Capital, Pavillion Corporation, and Danang Food JSC have expressed interest in developing the project named Lotus Island in the waters of Danang Bay with a total investment capital sum of $8 billion. The original goal of the Lotus Island project is to build a special economic zone by constructing artificial islands that form functional areas, such as residential areas, casinos, financial centres, duty-free zones, golf courses, and other infrastructure. The project would be located about 1 kilometre from the coast and connected to the mainland by modern bridges.   

 

 

Cam Ranh International Airport is going to operate, Nha Trang real estate benefit
VnEconomy

The international passenger terminal project of Cam Ranh International Airport is expected to operate in Q2 2018. At that time, it is expected that the increase in tourist arrivals will lead to a rise in hotel room occupancy. This is a leverage for Nha Trang’s real estate/resort market to develop further. This aviation project was invested VND3,735 billion, started in September 2016. After 2 years of construction, it has been put into operation. In the first phase of operation, Cam Ranh International Airport will receive an average of 2.5 million passengers a year, expected to reach 8 million by 2030. Also, many direct flights from Thailand, China, Cambodia, Malaysia, Korea, Hong Kong, Russia, Indonesia … to Cam Ranh are and continue to be opened. Nha Trang’s real estate market will have a strong turnaround and investors are fully entitled to expect a more potential and profitable market.

 

 

Hanoi: Approval of Planning for Dong Mai, 226 ha
VnEconomy

Land area is about 226 ha, with a population of 19,500. The area is divided into 2 parts: ecological residential area and social housing area for disadvantaged military officers in Dong Mai.
The area includes: public area for sport activities, residential area, parks, parking lots, lands for schools. Building heights are from 1 to 8-floor. The maximum height for ecological low-rise housing is 3-floor, and the height for social housing is 8-floor. The project is planned by Phong Phu Investment & Development JSC, and expected completion time is within nine months.
North East Dong Mai is adjacent to Ring Road 4. North West is adjacent to Yen Nghia Commune and Highway 6. South East is adjacent to Thanh Oai Industrial Cluster. South Dong Mai is adjacent to Binh Hoa Commune, Thanh Oai District.

 

 

Hanoi pulls plug on floating lotus-shaped theater project
Tuoitre News

The controversial project sought to build a lotus-shaped 2,000-seat theater within an under-construction CV1 Park, located at the intersection of Duong DInh Nghe with Pham Hung Streets in Cau Giay District. The project was approved in July 2017, and expected to be the biggest and most modern theater in Hanoi. The theater was planned to float on a 4-ha area of water. 
The project was said to be a waste of money, having inappropriate and mundane design, and would not be full occupied with such a large capacity. 
The project is cancelled by its own private developer due to surplus of theaters in the neighborhood, and this decision has been approved by the administrators already.

 

 

Deputy PM pushes CPI measures
The Jakatar Post

Deputy Prime Minister urged to keep CPI growth below 4% in 2018 by minimizing external impacts on domestic prices. CPI growth in the first four months was in line with the plan thanks to price management efforts, but higher prices of oil, gas, pork and food in the global market in the past two months put pressure on domestic inflation. CPI growth is 3.01% for the first 5 months in 2018. 
Floods, prices of health care and education services, increase in basic salary, and environmental tax on fuels would put more pressure on CPI. Stable demand for fresh food, centralized bidding program for drugs & medical equipment, stable interest rate, low production cost of power, adjusted road fees of BOT, and control for rice export, pig farms, and fruits export to China can help to ease the pressure

 

VND1000 billion worth project has been transferred 
Zing News

Binh Duong Trading and Development JSC just transfer wholly the project named Uni Galaxy. Total value of this deal is about VND1,138 billion. This project is the third phase of Uni Town Shophouse, constructed in an area of 56,000 sm in Thu Dau Mot City. Average selling price is expected to be VND20.3 million/sm. 

Initially planned, Uni Galaxy started four years ago with a total investment of VND1,585 billion. Of which, construction cost was VND660 billion. Estimated revenue from this project is approximately VND1,823 billion.

 

 

Approval of the construction plan for Phan Thiet Airport 

CafeF

The Prime Minister asked the local government to complete the detailed planning and allow for partial socialization of the project. The project must be completed with transparency and without waste. 

Other projects being approved as the same time include National coastal road project through Binh Thuan, planning for titan.

 

 

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Information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the market.

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