Home   »   Property News   »   CBRE Vietnam’s Top Property News Stories – W18/2016
CBRE Vietnam’s Top Property News Stories – W18/2016

​Vietnam: Central Group takes over Big C ops from French Casino for $1.05b, Thai developer Hemaraj plans 2 industrial parks in central Vietnam, FDI tops $6 billion in four months​…

 

CBRE Newspaper Updates on Residential Ads
 

  • No new launch this week.
  • Advertisements:

    • Saigon Mia (District 7)

      • The project consists of 3 blocks: Southern Mia, Northern Mia and Central Mia, each has 27 floors, 2 basements   
      • Total number of units: 872 units
      • Unit size from 50 sqm 
      • Total construction area is 15,126 sqm
    • Wilton Tower (Binh Thanh District)

      • 2 blocks with 22 storeys in a total land area of 7,168 sqm
      • Price from: VND 28 million per sqm
      • Total number of units: 494 units
    • River City (District 7)

      • Total units: 8.000 units (officetel – shophouse) with 12 blocks
      • Total size: 112.585 sqm
      • Average price: VND 33 million per sqm
    • Riva Park (District 4)

      • Total units: 320 units with 18 storeys
      • Average price: from VND 29 million per sqm (excluded VAT)
      • Unit size: 58 – 113 sqm

       

  • One new launch:

    • Season Avenue (Ha Dong District)

      • Date of launched: May 8th, 2016 will launch units in S2 Tower
      • Scale: 4 apartment towers (S1, S2, S3 and S4) with total 1,278 units
      • Average price: from VND 26-31 million per sqm (included VAT)
      • Unit size: 67 – 125 sqm (2-3 bedrooms)
      • Expected completion: 2017
  • Advertisements:

    • Green Stars (Bac Tu Liem District)

      • Total units: 930 units
      • Unit size: 62.2 – 102 sqm (2-3 bedrooms)
      • Average price: VND 22-23 million per sqm (excluded VAT)
      • Scale: Green Stars Tower A (A1, A2, A3) & Green Stars Tower B (B4, B5, B6, B7)
    • Thang Long Victory (Hoai Duc District)

      • Total land area: 31,934 sqm
      • Scale: 2 towers (T1&T2), 25 floors, 1 basement
      • Average price: from VND 13.5 million per sqm (included VAT)
      • Unit size: 59.8 – 93.3 sqm (2 bedrooms)
    • Lam Vien Villas (Gia Lam District)

      • Total land area: 39 hectares
      • Total unit: 68 units (47 terraced, 18 semi-detached, 3 detached villas)
      • Average price: from VND 19-21 million per sqm (included VAT)
      • Unit size: 132 – 371 sqm (2 bedrooms)

Back to top

 

Thai developer Hemaraj plans 2 industrial parks in central Vietnam
Thanh Nien News

 

 

Hemaraj Land and Development Pcl., one of Thailand's top industrial real estate developers, is seeking permission to build two massive manufacturing zones in the central province of Nghe An, the provincial government's website reported on Wednesday. Located near each other in the southeast of Nghe An, one of the industrial parks will cover more than 2,000 hectares and another around 1,100 hectares. 

 

Back to top

​Vietnam: Central Group takes over Big C ops from French Casino for $1.05b
Deal Street Asia

 

 

 

On April 29th, Thai retailer Central Group and its Vietnamese partner, electronics retailing operator Nguyen Kim Group, announced their joint acquisition of Big C Vietnam for US$1.05 billion from the French retailer Casino Guichard – Perrachon SA. The transaction is in line with the Thailand-based Central Group’s strategy of long-term expansion in Vietnam. Additionally, the joint investment in Big C Vietnam along with Nguyen Kim aligns with Central Group’s international strategy of working collaboratively with all local stakeholders.

 

 

Back to top

Foreign firms may be permitted to open 500 sqm retail outlets in Vietnam​
Vietnam Breaking News

 

Foreign-invested enterprises (FIEs) with distribution rights will be able to open retail outlets of up to 500 sqm under a draft decree clarifying the trading of goods by FIEs under the Commercial Law. If it comes into effect the decree will create favorable conditions for the development of convenience stores that open 24/7, which have developed quickly in Vietnam over recent times. MoIT will also release a stipulation that when FIEs establish their first wholesale or retail outlet they must have a license. Such licenses have a term of five years but MoIT can consider and provide an extension on a case-by-case basis.  

Back to top

FDI tops $6 billion in four months​
Vietnam Net

 

Vietnam received as much as US$6.8 billion in foreign direct investment (FDI) by April 20, a year-on-year surge of 85 percent, according to the General Statistic Office (GSO). Of the total, US$5 billion came from 697 newly-registered projects and the remaining US$1.8 billion was from 314 added-capital projects. Also in the first four months of this year, FDI disbursement was estimated to hit US$4.7 billion, up 12% against the same period last year.  

Back to top

Real estate inventory tapers off in April​
Vietnam Breaking News

The real estate sector reported a reduction of nearly VND 3.4 trillion (US$ 152.5 million) in inventory in April, from the previous month, to an estimated value of VND 41.5 trillion (US$ 1.86 billion). According to the Department of Housing and Real Estate Management under the Ministry of Construction, the highest inventories were estimated at more than 6.3 million sqm and valued at VND 21.5 trillion (US$ 964 million). Additionally they were recorded in residential and commercial land for projects located far from cities with insufficient infrastructure.

Back to top

 

France agreed to lend Vietnam EUR 85 million to build urban metro in Hanoi
Cafe F

 

PM recently signed the lending agreement, applying the Vietnam-France financial protocol for the “Hanoi metro network with Nhon – Hanoi station metro as pilot line” project. Ministry of Transportation then re-implemented the lending procedures to Hanoi People’s Committee with the same lending requirements from French government. Typically, the total loan amount is EUR 85 million with the interest rate which is equal to the international lending rate of 0.17%/year in 20 years. [The original article is available in Vietnamese only.]

Back to top

Realty share growth stunted​
Vietnam News

 

According to the Real Estate Association of Việt Nam (VNREA), the liquidity of real estate firms at the end of March reached its highest in four years. Vietstock.vn data also showed that realty firms recorded VND 61.7 trillion (US$ 2.8 billion) in revenue, an increase of 25 per cent over 2014,  and a net income of about VND 6.8 trillion, an increase of 12 per cent. However, of the more than 50 stocks of real estate firms, less than 30 per cent saw growth in their prices within four months. For instance, Sacomreal reported a profit of VND 176.5 billion in 2015, over six times higher than in 2014 thanks to the selling of the Celadon City project. But its shares traded at only VND 9,000 each for the whole quarter.

Back to top

Transnational corporations put Vietnam on the world investment map
Bao Dau Tu

 

In the past few years, many leading US corporations have come to Vietnam to investing and trading. In the context of the Agreement on the Trans-Pacific partnership (TPP) was adopted, Vietnam is increasingly more attractive for US investors. By this time, many leading US corporations had been in Vietnam. These include the presence of Microsoft, Intel, Ford, P & G … and a series of major brands in the field of food and beverage, such as KFC, Burger King, Pizza Hut, Starbucks, Coffee Bea & Tea Leaf, McDonalds … business operations of these enterprises are constantly growing in Vietnam. Especially, the technological giant moved its factory from China to Vietnam to prepare the plan for investment in Vietnam. Nokia and Intel also own their factories in Vietnam and extend their production. After business merger between Alibaba and Lazada, the Chinese website officially comes to Vietnam. [The original article is available in Vietnamese only.]
 

 

Back to top

The inevitable trend

 

Bao Lao Dong

   
More and more foreign and Vietnamese enterprises choose the form of mergers and acquisitions (M&A) to enter the market, expand business or increase competitive advantage. Of these, in addition to the retail businesses, consumer goods there are also several consulting firms, because M&A is a new trend. On 7/2015, Mondelez International Group specialized in trading of confectionery in the US spent US$ 370 million in acquisition of 80% stake in the confectionery business of Kinh Do Group Joint Stock Company (KDC). After the merger, the new company, called Mondelez Kinh Do, owned portfolio of 'confectionery brands including moon cakes and biscuits of Kinh Do; Cosy biscuits, SOLITE; Oreo biscuits; Cadbury etc. It can be said, the trend of M&A will continue to be strong this year when more and more multinational corporations are waiting to acquire Vietnamese potential businesses. This trend cannot be reversed, and it should be looked at a positive aspect, because when Vietnam joins TPP global playground, the domestic enterprises have only one path: Forward or disqualified from the game. Therefore, Vietnamese enterprises only have innovation efforts to survive. [The original article is available in Vietnamese only.]

 

 

Back to top

Vietnam is increasingly more attractive for US investors
An Ninh Thu Do

 

In the past few years, many leading US corporations have come to Vietnam to investing and trading. In the context of the Agreement on the Trans-Pacific partnership (TPP) was adopted, Vietnam is increasingly more attractive for US investors. By this time, many leading US corporations had been in Vietnam. These include the presence of Microsoft, Intel, Ford, P & G … and a series of major brands in the field of food and beverage, such as KFC, Burger King, Pizza Hut, Starbucks, Coffee Bea & Tea Leaf, McDonalds … business operations of these enterprises are constantly growing in Vietnam. Especially, the technological giant moved its factory from China to Vietnam to prepare the plan for investment in Vietnam. [The original article is available in Vietnamese only.]
 
   

Back to top

Hai Phat spent VND 700 billion acquiring Phu Luong Township   

 

Dau Tu BDS

Hai Phat confirmed that the company invested approximately VND 700 billion in acquiring a 4.7-hectare land bank cluster, which is equivalent to 35% total land of this project. The new urban area Phu Luong developed by Trung Viet JSC, locates at Phu Luong ward, and is contiguous with the new urban area Van Phu, Ha Dong District. Until June 2016, Hai Phat JSC is anticipated to start construction of bare shell for villas, terraced houses and officially open new launch to the market. [The original article is available in Vietnamese only.]

Back to top

A Ninh Binh’s billionaire to invest more than US$ 1 billion into project along Red River

 

Cafe F

  The project total investment is estimated to be approximately VND 24,510 billion, which is equivalent to US$1.08 billion. According to the proposal, 30% of total investment is contributed by the investor while the rest would be using commercial loans. The project scale includes 6 dams, 6 small hydropower plants (Level 2) and 7 ports, as well as dredging 288 km of Red River. It is also expected to provide 0.91 billion kWh/year. Xuan Thien, the investor of this mega project, plans the project payback to be within 25 years by selling electricity and collecting waterway fee. [The original article is available in Vietnamese only.]

Back to top

Hanoi launches a bus route linking Hanoi and Noi Bai airport​
Hanoi Times

 

The Hanoi Transport Corporation (Transerco) put into operation a new bus route, the No. 86 route, connecting downtown Hanoi with Noi Bai international airport on April 30. The No. 86 route which costs only VND 30,000 per leg, spans 33 km with eight stops, starting from the Hanoi Station at Le Duan street. Travel time is up to 55 minutes per leg. Buses used in the route are capable of carrying 80 passengers.

Back to top

 

 

 

 

 

 

 

 

 

 

 

 

FOR MORE INFORMATION,CONTACT:

 

Dung Duong MRICS

Director

T +84 8 3824 6125

dung.duong@cbre.com

 

An Nguyen

Director

T +84 4 2220 0220

an.nguyen@cbre.com

 

 
 
 

CBRE | CB RICHARD ELLIS