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News Release

Vietnam

Vietnam Market Weekly Highlight W5 2016

Singaporeans real estate companies and investors have increasingly been showing interest in investing in vacation real estate projects in Vietnam. The prices of Vietnamese real estate in the mid- and high-end segments were lower than that in Singapore.


More M&A deals expected in domestic real estate sector

Mergers and acquisitions (M&As) in the domestic real estate sector are being favoured thanks to the recovery in the market, together with several new policies. Experts said 2014 and 2015 was the breakthrough period for M&As in the market. In the context of the frozen property market, the progress of several estate projects with favourable locations was stagnant as investors were facing financial difficulties. Sharing ideas, Stephen Wyatt, general director of JLL Vietnam, said this year would witness a boom in M&A activities in the property market.



Singaporeans investors show strong interest in vacation homes in Vietnam

Singaporeans real estate companies and investors have increasingly been showing interest in investing in vacation real estate projects in Vietnam. On January 30 and 31, representatives of more than 200 real estate companies from Singapore as well as many investors joined the conference at InterContinental Singapore where Sun Group showcased its projects in Da Nang and Phu Quoc. The prices of Vietnamese real estate in the mid- and high-end segments were lower than that in Singapore.



Apartment proposal draws mixed reactions

The construction ministry is drafting a circular about the classification of apartment buildings, which is drawing mixed opinions from both experts and developers. According to the draft circular, apartment buildings that were put into use from the beginning of July 2015 would be classified into A, B and C. The ministry's housing and real estate market management department said the classification would be based on four criteria: planning and architecture, technical and social infrastructure, apartment quality, and management service quality.



Suppermarkets, malls battle for sales

Supermarkets and malls in HCMC are overflowing with a wide variety of products for the upcoming Tet, which falls on February 8 this year. Besides increasing stocks by many times, they are also offering steep discounts on most items ranging from fresh foods and gift hampers to household utensils and fashion products. The number of customers who have registered for free delivery of gifts has gone up four-fold from last year. It is expected the sales to rise further from now through the New Year.

 

Logistics set for high growth, marine transport expected to benefit

Vietnam's logistics sector is expected to maintain high growth this year, according to a Vietcombank Securities (VCBS) report. The report on the macro-economic situation and stock market prospects stated that seaports and the marine transport ​industry will benefit from free trade agreements (FTAs) that the country has entered into. These include the FTA between Vietnam and the Custom Union of Russia, Belarus and Kazakhstan, the Vietnam – Republic of Korea FTA, the Vietnam – European Union FTA, and the Trans-Pacific Partnership.



Vietnam - an attractive retail market: research

Research conducted by Germany's Statista Market Research Company showed that the scale of Vietnam's retail market could reach USD 100 billion in 2016. With a young population and increasing number of people visiting commercial centres, the country's retail industry holds huge potential. Big retailers from Japan, Thailand, France and Germany have poured into the retail market, creating fierce competition. The Economist Intelligence Unit also expects the retail sector revenue could see stable growth of 2.7% in 2016.



Property brokers required to pass exam, get certified

Property brokers must pass examinations to get certificates to practice, according to the Circular 11/2015/TT-BXD issued by the Ministry of Construction recently. This is being done to revamp the operation of brokers in a real estate market showing signs of recovery. Accordingly, the provincial and municipal construction department would be in charge of organizing the examination at least once a year, or they will authorize eligible organizations such as real estate associations. The certificate would be valid for five years from the date of issuance.



Real estate inventory drops as market deals taper off

The real estate sector reported a reduction of VND 1.75 trillion (USD 77.78 million) in inventory in January from last month to an estimated value of VND 49.1 trillion (USD 2.18 billion). The Department of Housing and Real Estate Management under the Ministry of Construction said that vibrant transactions in the real estate market have tapered off in property inventories in the month. The highest inventories were recorded in residential land with over 6 million square metres, followed by townhouses with 7,474 units



VND 30 trillion property support program still underway: Official

The government's VND 30 trillion (USD 1.33 billion) property support package will continue to be implemented until June 1, an official from the central bank said. State Bank of Viet Nam (SBV) Deputy Governor Nguyen Thi Hong affirmed the continuation at the government's meeting last Friday, after some media reports said several credit institutions had stopped financing within the programme. SBV Circular 11/2013/TT-NHNN, which took effect on 1 June 2013, stated that the programme would be carried out within 36 months from the effective date