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News Release

Vietnam

JLL Market Watch Week Jan 23, 2017

Hanoi and HCMC among Top 10 world's most dynamic cities


                 
                       
These are the most dynamic cities in the world - and they're not the ones you'd expect

According to JLL’s 2017 City Momentum Index (CMI) of the global top 30, which examines across 134 cities or metropolitan areas through 42 variables, Ho Chi Minh City and Hanoi are ranked at the second and eighth places respectively among the “high potential” group. These cities continue to attract capital from foreign investors betting on their transition from low-wage manufacturing to high-value activities.

     
    
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Cable car proposed for passengers to reach Tan Son Nhat airport

The cable car developer – Bilco has recently proposed building a cable-propelled transit system for passengers to reach Tan Son Nhat International Airport in Ho Chi Minh City, built in the nearby Hoang Van Thu and Go Vap parks. It would cost around USD 22.32 million to develop, and the construction takes only ten months. The loading capacity is likely to carry 3,000 to 4,500 turns of passengers per hour that will be one of the effective solutions to help the city solve the congestion problem on the entrance to the airport.
  
      
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M&A helps to jolt real estate

Based on stable economic growth and a considerable number of enquiries from both foreign and domestic investors, experts predict that merger and acquisition activity will reach record highs in 2017. According to Mr. Stephen Wyatt, country head of JLL Vietnam, investors are looking at Southeast Asia, in particular Vietnam, further activities will be happened in all sectors of the market and the trend of M&A is expected to see a substantial increase in both transaction volume and value in the last two years.
  
      
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CapitaLand acquires Vietnam-based asset for Grade A office development

CapitaLand Vietnam has currently entered an acquisition of the 0.6-hectare site, a deal is expected to see the disbursement of USD 500 million investment fund dedicated to the Vietnam market. This 240-metre Grade A office tower is the first commercial property located in a prime location in Ho Chi Minh City of the developer, which is directly connected to a future metro station linking the CBD to surrounding districts, and also includes retail units. Construction is predicted to complete in 2020, which is about the same time the metro line is expected to begin operation.

     
    
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Danang to set up four new IPs

Da Nang City will establish four new industrial parks (IPs) by 2020, Mr. Ho Ky Minh, deputy chairman of the municipal People’s Committee, said. Under the province’s plans, the four IPs are Hoa Nhon, Hoa Ninh, Hoa Son IPs and the second phase of the Hoa Cam IP, with the total area of 1,600ha, one-and-a-half-times the total area of the city’s existing industrial parks. All new projects are expected to complete in this year that aims to solve the city’s problem of less space for the operation of regional firms, which has caused pressure on local authorities.
  
      
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Construction of Saigon Safari Park on horizon

Licensed for investment in 2004, the Saigon Safari Park originally planned to build a huge park consisting of a semi-wild animal area, a display of animals from different continents, as well as an amusement park, a golf course, and hotels, with total investment capital of USD 500 million on 485 ha in Cu Chi district. It will be broken ground by Vinpearl in July, 2017 and become the largest eco-tourism safari park in Vietnam and Southeast Asia after completition.

     
    
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Vietnam's Mobile World plans 300 grocery stores

Vietnam’s Mobile World, the local electronics retailer has announced that they plan to open 300 more convenience stores under the Bach Hoa Xanh banner this year. At this point, this grocery store chain has been operating nearly 50 stores in Ho Chi Minh City’s Binh Tan District alone. Bach Hoa Xanh stores each achieve more than USD 44,300 in monthly sales, prompting their rapid expansion strategy in a local market worth an estimated USD 60 billion annually.
  
      
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France's Alstom wins first metro system contract in Vietnam

A consortium led by French rail transport equipment provider Alstom signed a contract with a Hanoi transport agency to provide supply technology and equipment for a metro system for the Hanoi Metro Line 3, which will start commercial operation in 2021. According to Alstom, the 12.5km line is worth around USD 230.22 million, includes 12 stations and one depot at Nhon. The capacity is expected to carry 8,600 people per hour, and will be progressively increased within ten years after its operation commencement.

     
    
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HCM City to launch open-top buses to serve tourists

HCMC-based Anh Viet Tourist Company has asked the city government for permission to launch open-top buses with modern equipment to serve tourists wishing to take city tours. This type of bus would take travelers to popular destinations in the center of the city and District 5. Meanwhile, Prime Minister Nguyen Xuan Phuc has lately approved a plan to test run such buses in seven provinces and cities – Danang, Hanoi, HCMC, Lam Dong, Kien Giang, Quang Nam and Thua Thien-Hue.

     
    
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