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News Release

Vietnam

Vietnam Market Weekly Highlight W3 2016

Vietnam's real estate market is expected to continue recovery this year after gaining good business results last year, with the market reaping benefits from favorable macro condition.



Strong growth expected in resort market this year

The resort market in Vietnam will see feverish investment due to its great potential, according to experts. Nguyen Tran Nam, chairman of Viet Nam Real Estate Association, said the local economy has gained stability and growth in 2015, while the income of locals has also increased. There is a demand among the people to own a property, which includes a resort product. Meanwhile, the local market has launched many resort projects with large scale, synchronous infrastructure and reasonable selling prices, so the projects have attracted numerous local buyers.



Apartment market in two major cities rising

Vietnam's real estate market is expected to continue recovery this year after gaining good business results last year, with the market reaping benefits from favorable macro condition. A number of property investors have sped up delayed projects. Several apartment projects have been restructured in both size and price in accordance with market demands. The demand growth on the domestic property market will remain positive this year, supported by continued strong investor sentiment and the availability of housing credit, according to JLL Viet Nam.



Central bank to control property loans

The central bank will control property loans to limit risks this year, an official told a meeting in HCM City late last week. State Bank of Viet Nam deputy governor Nguyen Phuoc Thanh said that although credits grew positively with the majority of loans poured into production and business activities last year, many banks pumped too much capital into the real estate market. Xay Dung, a Ministry of Construction newspaper, reported that property loans grew by 18 per cent y-o-y last year, as commercial banks accelerated financing both property developers and homebuyers.



Remittances revive real estate

Real estate attracted one-fifth of remittances to Ho Chi Minh City in 2015, signalling a steady revival of the sector. According to reports by the State Bank of Vietnam (SBV), banks in Ho Chi Minh City have received USD4.76 billion in remittances over the past eleven months. This figure is expected to reach USD5.5 billion after the upcoming Lunar New Year. After the frenzy cooled down, the property market suffered from a supply glut and its appeal to remittances’ owners was dampened.



Walmart execs to discuss cooperation with Vietnam suppliers in Jan 

Vietnamese companies will have the chance to meet and discuss with Walmart executives how to become a qualified supplier for the world’s largest retailer, in an event taking place in Ho Chi Minh City next week. The event will be jointly organized by AmCham, Walmart and the Vietnam Trade Facilitation Alliance (VTFA). The conference will include discussions with Walmart executives and “explanations about how to become a qualified supplier for Walmart’s global supply chains,” the AmCham said on its website.



Vietnamese retailers brace for 7-Eleven entrance

According to Nikkei, in July 2015, the group’s US-based subsidiary Seven Eleven Inc. signed a contract with IFB Vietnam, owner of Pizza Hut’s Vietnamese restaurant chain, to open its first 7-Eleven convenience store in Ho Chi Minh City. The number of establishments is set to reach 100 in the next three years and 1,000 within ten years. Seven & I Holding’s expansion to Vietnam is likely to intensify competition in the retail sector as it coincides with both domestic and foreign retailers’ plans to expand operations in Vietnam.



Japanese agency hosts workshop on urban development in Vietnam

Urban development was the main theme of a workshop on housing in Vietnam, which was jointly held by the Japan International Cooperation Agency (JICA) and Tokyo-Mitsubishi UFJ, Ltd. Bank – Hanoi branch on January 18. Tran Dinh Thien, director of the Vietnam Institute of Economics, said that the Vietnamese economy is on the up and is involved in intensive international integration thanks to the signing of several high-level agreements. At the workshop, participants contributed their ideas on building ‘real homes’ that people want to live in.



Radical restructuring urged to optimize integration oppotunities

Drastic, comprehensive and consistent economic restructuring is needed in order to optimise opportunities brought by the strong international integration process in 2016-2020, experts have said.  A report by the Central Institute for Economic Management showed that the master plan on radical overhaul of the economy in 2011-2015 has brought about positive and profound outcomes. Most remarkable were macro-economic stability, enhanced national safety index and obvious economic recovery trend.