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CBRE Vietnam Real Estate Spotlight – W23 2018

Expected to build the ring road in Nhon Trach – Tan Van – HCMC in Q2 2018, US$43 million to be spent for tunnel to ease traffic jam in HCMC, Kien Giang Province halts licenses for sea encroachment projects…


WB & ANZ release updated economic forecasts



Growth in Vietnam remains robust but high capacity-use rates may limit further expansion, according to the World Bank’s “Global Economic Prospects: East Asia and Pacific – The Turning of the Tide?” report released on June 5. The country is forecast to grow by 6.8% this year before moderating to 6.5% in 2019 as capacity constraints become more binding. 
With first quarter GDP growth at 7.4% y-o-y, ANZ expects some pull-back in growth momentum towards a more sustainable rate of 6.8% for 2018 as a whole, followed by 7.0% in 2019. According to the ANZ Greater Mekong Outlook report released on June 1, first quarter growth was unseasonably strong, having tended to be at its lowest at the beginning of previous years and followed by an acceleration over the course of the remainder of the year. In terms of production, the agricultural sector grew 4.1 per cent year-on-year; the fastest rate since the series was rebased in 2012. Industry also bucked historical trends by growing 10.1% y-o-y




Malaysia’s Berjaya Land sells Vietnam’s finance center project to Vinhomes

Deal Street Asia

Malaysia’s Berjaya Land Bhd (BLand) has finally decided to sell its entire stake at Berjaya Vietnam Financial Center Limited (BVFC) to the country’s biggest real estate developer Vingroup for VND884.93 billion ($38.9 million). In a statement with Bursa Malaysia, BLand said, it was selling off the entire 32.5% of total capital contribution in BVFC to local firms Vinhomes JSC and its subsidiary Can Gio Tourist City Corp. BVFC, which has not commenced operations, is developing the proposed project comprising an office building, a five-star hotel, serviced residences and a shopping mall on a 6.64- hectare land in HCMC. Vinhomes will also potentially purchase Berjaya Vietnam International University Town One Member Ltd Liability Co (BVIUT) from BLeisure Cayman, having injected capital into the unit and effectively raising its stake in the firm to 99.2%. BLeisure Cayman, which is left with a 0.8 per cent stake in BVIUT, plans to dispose of the stake in the near future.




HCMC recovered 11.600 sm of land in District 7

HCMC People's Committee has announced the decision to recover the land area of 11,644 sm land on the cadastral map in Tan Kieng Ward, District 7 due to violations of land legislation. Ho Chi Minh City People's Committee said this land was issued by General II Import – Export JSC in March 1986 for use in expanding their warehouse. However, in August 1987 General II Import – Export JSC had leased Duc Thanh Trading Co., Ltd this area, which was subject to land reclamation in accordance with the Land Law of 3013 and has not yet recovered.



Dong Hoi deal latest in Best Western’s Vietnam signing streak

TTG Asia

Best Western Hotels & Resorts has signed an MoU for a new upscale beach resort in Dong Hoi, the capital of Vietnam’s Quang Binh province, as it continues expanding to new parts of the country. Scheduled to open in 2020, Best Western Premier Quang Binh will overlook the East Sea and feature will feature 501 rooms and suites, all equipped with bathrooms, workspaces and complimentary Wi-Fi.
Guests in the executive rooms and suites will be offered unlimited access to a beachfront lounge, where they can enjoy a series of exclusive services and privileges. Hotel facilities include a restaurant, outdoor infinity pools, a spa, children’s playground and gym. A business centre and meeting rooms will also be available for special events and corporate gatherings. Developed by FLC Quang Binh One Member, Best Western Premier Quang Binh will feature two wings connected by a glass sky bridge. 



Kien Giang Province halts licenses for sea encroachment projects

People’s Committee in the Mekong Delta province of Kien Giang decided to halt issuance of license of sea encroachment projects. According to the province’s steering board of ocean encroachment project, two ocean encroachment sections have formed in Rach Gia bay with total area of 520 ha. Of the projects, Rach Gia project kicked off in 1999 as per the Prime Minister’s decision in the area of 420 hectare and the 100 hectare northwest section kicked off in 2015 plus a 16 hectare natural alluvial ground. The Rach Gia project has been location of 60,000 people and construction of administrative section, headquarter, hospitals and schools.



Expressway projects are expedited

Vietnam is making moves to fast-track the appraisal of sub-projects of the eastern spur of the North-South Expressway project to facilitate the shortlisting of potential investors, scheduled to start next month. The 29-kilometre Nha Trang-Cam Lam section is one of the eight sections of the project to be developed under the public-private partnership (PPP) format. It has a total investment capital of VND5.13 trillion (US$228 million), with VND2.53 trillion (US$112.44 million) to be sourced from the state budget and VND2.6 trillion (US$115.55 million) to be contributed by investors.



Hanoi will have 37 km long urban railway connecting the two ends of the city

According to the approved plan, the urban railway No. 8 has a route from Son Dong-Mai Dich- Ring Road 3-Linh Nam-Duong Xa (37 km long, 25 stations, 2 Depot, 8 locations connected to the other urban railway) is a belt route combined with radial routes to connect the suburbs to the city center and vice versa. Urban railway No. 8 after completion according to the plan will connect the residential areas, large urban areas of Hanoi in the district of Hoai Duc, Cau Giay, Thanh Xuan, Hoang Mai, Gia Lam. The investment plan for urban railway No. 8 projects according to the approved plan is after 2020.



"Super project" ring road 1 – Hoang Cau – Voi Phuc starts in 2018
Lao Dong

Ring road 1 (Hoang Cau – Voi Phuc), with a length of about 2.27 km, is expected to start in the fourth quarter of 2018. Up to 31.01.2018, the PMU disbursed VND1,532.6 billion, reaching 85%. The total number of households involved in site clearance is about 2,328 households. The demand for resettlement is about 2,239 units. Total investment of the project is about VND7,779 billion , of which the construction cost is only VND785 billion, the land clearance is over VND6,000 billion, which is allocated from the city budget and other sources in the public investment plan period 2017-2020.



Expected to build the ring road in Nhon Trach – Tan Van – HCMC in Q2 2018 

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.



US$43 million to be spent for tunnel to ease traffic jam in HCMC


HCMC is planning to spend over VND1 trillion (US$43.8 million) to build a tunnel in An Phu intersection in District 2 to tackle traffic congestion. According to the Department, the city People’s Committee sent a document to the Ministry of Transport on the tunnel project in order to solve traffic gridlock. As per the project, the four-lane tunnel will connect HCMC- Long Thanh – Dau Giay. Total investment is prediceted worth VND1,047 billion. City authorities expect to complete the project soon to settle the traffic congestion between Mai Chi Tho Street and motorway HCMC-Long Thanh-Dau Giay. However, the Vietnam Expressway Corporation (VEC) announced the project can begin only by 2020 because from now to December, 2019, 15 paper works relating to the project must be finished.












Dung Duong MRICS


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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.