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News Release

Vietnam

JLL Market Watch Week June 19, 2017

By JLL


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1. Zara to open store in Hanoi​
The flagship branch of Inditex group, Zara has announced it will make its retail debut in Hanoi with the opening of a store at Vincom Center Ba Trieu in Hanoi in October. Zara has spent several months preparing for the opening of its store in Hanoi including employee recruitment and site selection. Currently, Zara has 2,100 stores in 88 countries, including its store at Vincom Dong Khoi in HCMC.

2. Luxury hotels to boom in HCMC
JLL Vietnam has recently released a report on 26 ideal destinations for hotel investment worldwide. In particular, changes in hotel supply in HCMC shows that the market is moving forward. Namely, the city is predicted to have more than 1,000 new hotel rooms this year, up 30% against 2016. The number of high-end rooms meeting international and domestic standards accounted for 35.4% while those at the medium level accounted for 27.8%. In the 2017-2020 period, HCMC will focus on the luxury segment, which is to provide 48.4% of supply.

3. Interest rates rising, banks stablising
A number of commercial banks have been increasing promotional rates for long-term deposits by 0.1 to 0.2% per annum, along with issuing additional certificates of deposit, in an attempt to safely restructure their reserves. According to the State Bank of Vietnam, credit institutions have reported stable deposit and lending rates for first five months this year. At present, annual lending interest averages 6 to 9% for short-term loans and 9 to 11% for medium and long-term loans, while short-term lending rates for premium customers clock in at 4 to 5% per annum.​.

4. Consumer loans rise nearly 30% by end May
According to the National Financial Supervisory Commission, consumer lending by end May rose 29.7% against the end of 2016. Of the total consumer loans, home renovation loans and home purchase loans accounted for 52.8%, compared with 49% in the end of 2016. At the end of the first quarter of 2017, the banking sector continued to be the economy’s main source of capital supply, accounting for nearly 60% of the total capital supplied via the financial market.. 
5. Vietnam's annual inflation expected at 2.6%
The average inflation during the first five months of this year hit 4.47%, according to the latest report from the government watchdog, the National Financial Supervisory Commission. The indicator will fall towards the end of the year due to stability in food and restaurant prices, at 2.6% amid fluctuations in prices on world markets and adjustments in the cost of public services.​

6. Bui Vien to turn into HCMC's second Walking Street next month
The Bui Vien Walking Street in District 1 will be active on weekend evenings from the middle of next month. The pedestrian road is expected to give visitors the opportunity to experience a more artistic side of Vietnam, performances will be held on two stages on weekend nights between 8:00 pm to 10:00 pm.
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