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CBRE Vietnam’s Top Property News Stories – W21/2016

Vietjet inks $11.3b Boeing agreement, Ho Chi Minh City will create the best conditions for Fulbright , City seeks VND74.35 trillion for flood control projects…

CBRE Newspaper Updates on Residential Ads

One new launch
- River City (District 7)
  - Date of official launch: 28th May, 2016
  - Total units: 8.000 units (officetel – shophouse) with 12 blocks
  - Total size: 112.585 sqm
  - Average price: VND 33 million per sqm
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Sky 9 (District 9)
- Total land area: 18,333 sqm
- Unit sizes: 46 – 74.24 sqm (2-3 bedrooms)
- 3 blocks, 15 – 18 storeys
- Price: from VND756 million/unit
Docklands Saigon (District 7)
Total construction area: 7.024 sqm
Scale: 356 units, 20 storeys, 2 basements
Unit sizes: 74 – 128 sqm (1-3 bedrooms)
Price: from VND32 million/sqm
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
Wilton Tower (Binh Thanh District)

Two new launches:
- Season Avenues – Summer Suites (Ha Dong District)
  - Date of official launch 29th May, 2016,
  - Unit size: 71 – 115.5 sqm (2-3 bedrooms)
  - Scale: 40-floor building, 286 units
  - Price: from VND 28 million (included basic furniture)
- West Bay Tower A – Ecopark (Hung Yen Province)
- Date of oficial launch 28th May, 2016 with total units launched 504 units
- Unit size: 45 – 90 sqm (1-2 bedrooms)
- Price: from 20 million (included basic furniture)
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Eco Green City (Thanh Xuan District)
- Date of re-launch 21st May, 2016
- Total land area: 20,234 sqm
- Unit sizes: 55 – 105 sqm ( 2-3 bedrooms)
- Price: from VND26 million (included basic furniture)
D Le Pont D’or (Dong Da District)
Total construction area: 5,363 sqm
Scale: 308 units, 23 levels, 4 basements
Unit sizes: 63 – 130 sqm ( 2-3 bedrooms)
Price: from VND47 million/ sqm (included fully furnished)

Reforms can spur GDP growth
Vietnam Investment Review

Vu Viet Ngoan, chairman of the National Financial Supervisory Commission, recently talked about the current economic situation and highlights the measures necessary to put country back on track for stable growth. He said that slowing GDP growth may continue at least in this year's first half, possibly even extending to the third quarter. Therefore, it is important to find new motivating forces to boost growth. In the current context, the state sector does not have much room for further growth, so we should rely on the two remaining FDI and private sectors.

VN property firms get BCI awards
Vietnam News

Asia’s leading construction solution provider BCI at a ceremony held on Friday in HCM City gave awards to the top 10 Vietnamese architectural firms and property developers. The portfolios of the architecture firms contain US$3.4 billion worth of property construction, which is expected to start this year. The portfolios of the top developers are worth about $2.8 billion.

Jan-May FDI approvals soar 136% y-o-y
The Saigon Times

Foreign investors have registered nearly US$3.3 billion for new and operational projects this month, taking the total foreign direct investment (FDI) figure in the January-May period toUS$10.16 billion, up 136.4% year-on-year. Of the 60 nations and territories investing in Vietnam in the first five months, South Korea is the biggest investor with US$3.42 billion pledged for new and operational projects, followed by Luxembourg with US$1.25 billion, and Singapore with US$907.1 million

Central Group halts acquisition spree in Vietnam, gets bridge loan for Big C deal
Deal Street Asia

Local property developers Vingroup and Tan Hoang Minh Group reached an agreement on Tuesday to jointly invest in luxury real estate projects across Vietnam. The terms of the partnership were not disclosed. The duo targets at providing real estate assets that are of the same quality as in the Asian region. Both are strong players in the northern market of Vietnam.

Foxconn acquires Microsoft’s smartphone facility in Vietnam
Vietnam Net

Thai retailer Central Group said it will put a hold on its acquisition spree in Vietnam, after the recent aggressive expansion in the country, to focus on making profit over the next three years, according to different media reports. Central Group’s biggest equity investment in Vietnam was the $1.1 billion deal to own over 30 Big C Vietnam supermarkets, which was reported to be accommodated by the sale of Big C Thailand unit to rival TCC Holding and its subsidiary Berli Jucker. But the 50 billion baht realisation from offloading the remaining 25 per cent in Big C Thailand will be used for other purposes, while Central Group secured a bridge loan from Bangkok Bank to finance the Vietnam deal, according to the Bangkok Post. Despite the halt in further acquisitions, the Thai group still considers Vietnam as a very important market, buoyed by a growing economy and high purchasing power.

Vinpearl invests in the 300-hectare golf course in Long Bien and Gia Lam district, Hanoi
Cafe F

On May 23rd, Hanoi People’s Committee promulgates the announcement No.138/TB-UBND adjusting of golf course list in Hanoi. Specifically, Hanoi approves the proposal of Vinpearl Joint Stock to invest in Hanoi Vinpearl golf course. Accordingly, the golf course covers an area of 293.88 hectares, including: Section 1 with scale of 87.5 hectares locating on Phuc Loi and Giang Bien, Long Bien district; Section 2 scale of 140.99 hectares locating on Duong Ha and Phu Dong, Gia Lam district. [The original article is available in Vietnamese only.]

Mekong Capital fund to invest 112 million USD
Vietnam Plus

Mekong Capital's fourth fund Mekong Enterprise Fund III Limited Partnership (MEF III) plans to invest US$ 112 million in Vietnam, according to announcement on May 16th. In the first three years, the fund is expected to make a total of 12 investments of between US$ 8 million and US$ 15 million over a period of 10 years in Vietnam. Additionally, the fund also invests in firms which carry out their businesses both online and offline, especially in the retail sector

City equitizes 32 SOEs in 2014-2015
The Saigon Times

HCMC had 32 State-owned enterprises (SOEs) going public and VND2.53 trillion (US$113.5 million) in State capital divested from noncore business operations in 2014-2015, according to a recent report of the city government. Finance and Investment Company (HFIC), said the report on equitization of SOEs managed by the city government. The HCMC government expects 33 SOEs to go public in 2017-2018 and 20 others in 2017-2018 and seven enterprises to remain as SOEs. In April last year, a number of SOEs in the city pledged to pull State capital out of noncore businesses. They included Saigon Industry Corporation (CNS), Saigon Trading Group (Satra), Saigonjewelry Holding Co. (SJC), Saigon Agriculture Incorporation, Ben Thanh Group, Saigontourist Holding Company, Saigon Real Estate Corporation (Resco), Tan Thuan Industrial Promotion Company Limited (IPC), Saigon Pharmaceutical Company (Sapharco), Liksin Package Printing Industry Corporation, Saigon Water Corporation (Sawaco), and Saigon Construction Corporation.

Vietjet inks $11.3b Boeing agreement

Vietnam News

Vietjet finalised an order with Boeing for 100 737 MAX 200 airplanes yesterday, valued at approximately US$11.3 billion according to current list prices. This is the largest single purchase of commercial airplanes in Vietnam's aviation industry. The signing ceremony was witnessed by Vietnam President Tran Dai Quang and US President Barack Obama. In her speech, Vietjet President and CEO Nguyen Thi Phuong Thao said the airline's investment in a new fleet is part of its strategy to focus on developing its international route network, including long-haul flights, in the near future. The airplanes purchased under this deal will be delivered to Vietjet from 2019 to 2023. The latest aircraft addition will increase Vietjet's fleet to more than 200 aircraft by the end of 2023, the carrier said in its latest statement. An agreement was also inked between Vietjet and Pratt & Whitney Co, a subsidiary of United Technologies Corporation, yesterday. Following this deal which is worth $3.04 billion, the US firm will supply Vietjet with aircraft engines to power the airline's recent order of A320NEO and A321NEO aircraft and will also be responsible for the technical and maintenance services for this fleet.

Ho Chi Minh City will create the best conditions for Fulbright
The Saigon Times

At 12 am today, 25 ^thMay, at Rex Hotel, Ho Chi Minh City People's Committee Chairman Nguyen Thanh Phong has awarded decision to establish Fulbright University (Fulbright University Vietnam – FUV) in the presence of the US Secretary John Kerry and Secretary of HCMC Dinh La Thang. City leaders pledged to create the best conditions for this field to train high-quality human resources for the city. [The original article is available in Vietnamese only.]

Ministry wants water supply zoning plan for Mekong Delta improved

The Saigon Times

Deputy Minister of Construction Phan Thi My Linh has urged Vietnam Water, Sanitation and Environment Joint Stock Company (Viwase) to improve a water supply zoning plan for the Mekong Delta for submission to the Prime Minister. Consultant Viwase is improving the water supply zoning plan for the delta until 2030 with a vision towards 2050. The objective until 2030 is to build an Interregional water supply system in combination with existing and newly-built water plants in the region to ensure that 100% of urbanites, 90% of suburbanites and 25% of rural residents have access to running water.

City seeks VND74.35 trillion for flood control projects
The Saigon Times

The HCMC government will have to find at least VND74.35 trillion (US$3.34 billion) to fund flood control projects in 2016-2020, according to a report on flood control solutions released at the HCMC Party Committee meeting on Tuesday. The city expects the amount to come from official development assistance (ODA) loans, the city's budget, enterprises and other sources.

Vingroup is going to build the highest building of the Middle Vietnam in Thanh Hoa Province
Cafe F

People’s Committee of Thanh Hoa has just approved the Vingroup investment project in new urban area in Dien Bien ward, Thanh Hoa city. In particular, the new urban area in Dien Bien ward is included a complex shopping mall, a 33-floor hotel (excluding technical floor, roof-top and basements), and shophouse area. The expected completion is in Q4/2018. Total used land would be about 40,628.8 sqm (including 4 facades which are nearly Le Hoan, Tran Phu, Nguyen Du and Trieu Quoc Dat street in Thanh Hoa Province). The total expected investment is about VND1,729 billion. [The original article is available in Vietnamese only.]