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News Release

Vietnam

JLL Market Watch Week Nov 13, 2017

By JLL


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1. Hosting APEC opens up new FDI opportunities​
For the second time in its history, Vietnam is set to host the Asia-Pacific Economic Cooperation (APEC) Leaders’ Week, especially the APEC CEO Summit 2017 with the participation of CEOs from the world’s leading business groups. Many of them have expressed interest in investing in Vietnam, including ExxonMobil with the $10-billion Blue Whale gas-to-power complex project and Walmart with the ambition to set its foot in Vietnam’s retail market. Thus, After the Summit, Vietnam expects to shake hands with more business groups from APEC economies and attract more investment capital to numerous sectors, including processing and manufacturing and real estate, as well as new sectors in the framework of the Industrial Revolution 4.0.

2. APEC 2017 to discuss challenges of Industrial Revolution 4.0
The 4.0 industry revolution will bring about a new face as it will have a significant impact on all aspects of life in Vietnam, the 21 APEC economies, and all nations around the globe. Facing the Industrial Revolution 4.0, the greatest challenge in developing countries like Vietnam concerns labor, and then the development of each country. If Vietnam fails in this revolution, it will lag far behind.
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3. RoK to provide $1.5 bln in ODA for Vietnam
The Republic of Korea (RoK) will provide 1.5 billion USD in official development assistance (ODA) for Vietnam for 2016-2020 via the Korea Economic Development Cooperation Fund (EDCF). Since 1993, the RoK has offered 2.7 billion USD in ODA to Vietnam to carry out nearly 60 projects, mostly in transport infrastructure, urban development, health care, and water supply and drainage.
4.  City eyes large tax on second homes
The HCM City People’s Committee has proposed that the Ministry of Construction apply a high tax on second and subsequent homes, as well as when there are a high number of real estate transactions within a year. In Viet Nam, housing purchases increased as average income per capita rose from US$1,400 in 2013 to $2,200 in 2016. It is expected to rise to $3,400 by 2020. 

5. State turns inward for PPP plans
According to Deputy Minister of Transport Nguyen Nhat, Vietnam lacks the type of guarantee mechanism requested by international groups and in line with global norms. The country currently cannot offer a guarantee for investors’ revenue and exchange rate risks. “Thus the project will be built with a plan to mobilise over VND63 trillion ($2.86 billion) worth of private investment, of which VND13 trillion ($590.9 million) will be from investors and VND50 trillion ($2.27 billion) from bank loans, aimed at targeting domestic investors,” Nhat told VIR.​
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