TVSI_2007_Real estate Sector report

VIETNAM REAL ESTATE OVERVIEW
V I E T N A M
MARKETS INDEXES
VN index:
1.046,86
HaSTC index: 309,74
R E A L
E S T A T E
3 0 ,
S E P T E M B E R ,
2 0 0 7
30/09/2007
VIETNAM ECONOMY OUTLOOK…………………………………………………………..………..2
LEGAL FRAMEWORK………………………………………………………………………...……………..2
CITIES ARE ATTRACTIVE IN REAL ESTATE INVESTMENT……………...……….3
KEY CHALLENGES………………………………………………………………………..……………….….3
INDUSTRY OVERVIEW………………………………………………………………………………......4
OFFICE MARKET……………………………………………………………………………………………..……4
Ho Chi Minh Office market………………………………………………………………………….……...5
Hanoi Office market…………………………………………………………………………………………...6
APARTMENT FOR LEASE……………………………………………………………………………………..9
Apartment for lease in HCMC…………………………………………………………………………....9
Apartment for lease in Hanoi……………………………………………………………………………..9
HOANG XUAN QUYEN
APARTMENT FOR SELL……………………………………………………………………………………...11
Head of Research
Apartment for sell in HCMC……………………………………………………………………………...11
Quyenhx@tvsi.com.vn
Apartment for sell in Hanoi……………………………………………………………………………...11
RETAIL MARKET………………………………………………………………………………………………..12
HCMC retail market…………………………………………………………………………………………..12
GIANG THI THU TRANG
Hanoi retail market…………………………………………………………………………………………...13
Manager, Research
INDUSTRIAL ZONES MARKET…………………………………………………………………………..14
Tranggtt@tvsi.com.vn
TOURISM AND LEISURE ACCOMMODATION…………………………………………………...15
Trading Rules: Land and real estate are Housing Law: 2005 &2007 is lining up
allocated
according two steps. First, hold- to be a positive for the property marGROWTH TRENDS
ANALYSIS……………………………………………………………………...17
ers of land/ real estate are given certifi- ket. Significant changes in real estate
TRAN THI KIM DUNG
Associate, Research
Dungttk@tvsi.com.vn
Driver for future growth…………………………………………………………………………………...17
cates by the state and second, land use investment laws in July 2006 is to offer
right or asset on land are traded. In spite certain ownership concessions to
MAJOR INVESTMENT
of MARKETS………………………………………………………………………..18
cumbersome legal procedures, FDI overseas Vietnamese citizens for exinvestment in infrastructure, road, bridge, ample. Also, foreign individuals or
APPENDIX...…………………………………………………………………………….……………………..23
hotel, leasing offices, appartment, resort,
etc., is increasing. It is estimated over 1.5
billions USD commited and invested.
Foreign investment fund such as Kumho
HEAD OFFICE: Asiana, Posco, Indochina Capital, Aldy,
Construction,
5th, HiPT Building, LG
152 Engineering
Thuy Khueand
street,
Tay Ho
Tamashek, VinaCapital... are presently
interested and
invested
significant
of
Tel: 84-4: 7 280 921
Fax:
84-4:
7 280part
920
capital in real estate sector.
HOCHIMINH BRANCH:
companies, who build houses in Vietnam for leases, will be issued with
housing certificates of ownership for
the duration of their investments.
When a developer sells a property, the
purchaser
be issued
the certificate.
District,will
Hanoi,
Vietnam
Upon the expiry of the certificates,
foreign
investors
must transfer the
Websit:
www.tvsi.com.vn
houses developed to the state.
No 193-203 Tran Hung Dao street, District 1, Hochiminh City
Tel: 84-8: 9 207 545
Fax: 84-8: 9 207 542
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
VIETNAM ECONOMY OUTLOOK
•
•
High economic growth rate was recorded over
past five years of 8% and expected to reach
8.5% in 2007 and 8.3- - 8.7% till 2010. GDP
per capita is projected to reach 1,000 USD by
the year 2010. In particular, industrial and construction sector achieved higher rate of 10.7%
in 2006 and contributed to 42% of GDP.
Real estate is believed to be attractive investment sector with nearly USD 4 billions pouring
in.
•
Reported CPI of 6.1% over the first half. Tight
money policy is taken by Central Bank to control inflation under two digits. We believe infla-
Accession to WTO since 2007 will further accel-
tion rate would reach 10% by the year end.
erate private investment through tax cut, favorable investment climate and economic reform. Over the first 9 months of 2007, FDI was
reported to attract USD 9.6 billions, increasing
38% as compared with the same last year period.
Inflation is projected to move higher this year.
• VN Dong is slightly depreciated against USD,
around 16,200 VND by the end 2007.
•
Momentum for population growth is increasing
this year – the year of “Golden Pig” as it is believed to be a good year for newly born babies.
LEGAL FRAMEWORK
Legal frameworks: Real estate market is presently governed by four state laws: 1). Land law
Asiana, Posco, Indochina Capital, Aldy, LG Engi-
2003; 2) Housing land 2005; 3). Law on real es-
neering and Construction, Tamashek, VinaCapi-
tate 2006 and 4). Law on tax of land use right
tal... are presently interested and invested signifi-
transfer 1999; and 43 Decrees, 60 Circulars, 49
cant part of capital in real estate sector.
Decisions, 20 governmental and National Assembly... total of 518 written documents. But conflicts
were still observed among those existing documents.
Housing Law: 2005 &2007 is lining up to be a
positive
for
the
property
market.
Significant
changes in real estate investment laws in July
2006 is to offer certain ownership concessions to
Trading Rules: Land and real estate are allocated
overseas Vietnamese citizens for example. Also,
according two steps. First, holders of land/ real es-
foreign individuals or companies, who build houses
tate are given certificates by the state and second,
in Vietnam for leases, will be issued with housing
land use right or asset on land are traded. In spite
certificates of ownership for the duration of their
of cumbersome legal procedures, FDI investment
investments. When a developer sells a property,
in infrastructure, road, bridge, hotel, leasing of-
the purchaser will be issued the certificate. Upon
fices, appartment, resort, etc., is increasing. It is
the expiry of the certificates, foreign investors
estimated over 1.5 billions USD commited and in-
must transfer the houses developed to the state.
vested. Foreign investment fund such as Kumho,
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
CITIES ARE ATTRACTIVE IN REAL ESTATE INVESTMENT
Vietnam presents now the same opportunities as Thailand did some twenty years ago. Hanoi capital, Ho
Chi Minh City (HCMC) – the largest commercial trading and business and various cities including islands
and resorts offering investors an unrivalled choice of residential and commercial opportunity at currently
very attractive prices.
KEY CHALLENGES
•
Overcrowding business and quality control of the buildings are ongoing issues in Vietnam’s property
market.
•
“Hung” land planning (Quy hoach treo) – the situation in which land was planned to use for industrial
and commercial purposes but still not put into operation which cause severe problem for land holders
who could not do anything on their land but did not receive compensation for land recovery.
•
Enforcement of law is weak and less effective.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
INDUSTRY OVERVIEW
OFFICE MARKET
•
First “International Standard” Grade A Office: Before
economic reform referred to as “Doi Moi/ Open Door” that
began in 1986, there was no foreign direct investment
(FDI) in real estate, and so Vietnam had no “International
Standard” office properties until the latter of the 1990’s.
The “First Wave” of FDI in a largely untouched market
brought with a large number of foreign companies, mostly
from Asian countries, into Vietnam. This sudden change
caught the office sector largely unaware, causing a shortage in office supply in Vietnam, particularly in the biggest
and fastest growing city HCMC and in Hanoi (where international aid agencies are located). This undersupply
started to be alleviated in 1993, when a boom in international standard office construction began. As the result,
Saigon Centre (HCMC) is the first with “International
Standard” Grade A office building completed in 1996.
‘International standard’ buildings can best be described as
being those that have been designed and constructed in
accordance with widely recognized international standards
(Grades A, Grades B, Grades C), and with the others as
Grades D-E.
•
Ten years from “Asian Economic Crisis”: Soon after the first “International Standard” Grade A
officer building completed in 1996, the wider regional ‘Asian Economic Crisis’ put an end to any existing investors’ hopes of making a ‘quick-buck’ in international standard office construction. It also put
a halt to all of the projects that were still on the drawing board (even if already licensed) and many
that were already underway. This period saw rents fall by 30-50% as average vacancy rates rose
from 25% in Hanoi and HCMC in 1996 to 48-50% in 1997 and 1998. Ten years later, thanks to the
expanding and strong FDI injecting, many of the projects licensed in the mid to late 1990’s never
made it the construction stage after ‘long-delayed’ have been leased out to sub-investors, typically
for 10 terms as coffee shop-restaurants, or are being re-licensed to new foreign investors, such as
the USD$525 million ‘Black Hole of Saigon’; Saigon ‘Space-Ship’; or Asiana Plaza. A couple of the better sites have been acquired by new investors and are now under construction, such as Avalon and
Times Square.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
HOCHIMINH CITY OFFICE MARKET
Grade A & B office supply is limited meanwhile
Table 1: Office Stock at the beginning of the quarter
demand outstrips are the real situation of Ho Chi
Minh City Apartment market in recent ten years.
Beginning of the year 2004, rent offices in center
areas such as district 1, district 3 were certainly
the first option of companies and organizations,
recently it is expanded into Tan Binh district, district 5 and district 7 due to limitation of space in
center areas. On the first six months in 2007,
standard offices were fully booked at ratio 99% of
grade B office, 100% of grade A, and 96% of
grade C.
Table 2: Take up and Vacancy of HCMC Office Building
B-grade and C grade are $33, $25 and $22/m2/
month respectively. These estimated prices are 1731% higher than in 2006. In fact, the prices go beyond these estimated numbers. In the first half of
2007, the numbers are $37, $29 and $23/m2/month
for A-grade, B-grade and C grade lease office respectively; the increases of 39%, 33% and 30% respectively compared to 2006.
Experts also think that the market will not be
“cooler” until 2010 despite of the significant rise in
the supply while the demand will increase at a dizzy
pace. First, Vietnam is a destination of many interThe imbalance between the need and supply of
national corporations and they much area of floors
office leasing certainly leads to the boost in lease
as office. Second, in the next years, domestic and
prices in high-grade and low-grade office that be-
Vietnam-based foreign firms have an urge need for
yond the expect of real estate set. According to
expand their business, thus they also need much
CBRE, the leasing prices early 2007 of A-grade,
floor of office.
VIETNAM
REAL
ESTATE
OVERVIEW
Table 3: Expected Future Supply Office Spacy
TVSI-RESEARCH
DEPARTMENT
According to Hochiminh Real Estate Association, the
city will have more 27 projects on office leasing
with the total area of 150,000 m2. These projects
include: E-Town 2 in Cong Hoa street (Tan Binh
dis.), Petro Vietnam Tower with 30,000 m2 floor in
Le Duan street (dis. 1), Opera View building in
Dong Khoi street (dis. 1), Itaxa building (dis. 3),
12-stores E-star Building in Vo Van Tan street (dis.
3), VFC Tower in Ton Duc Thang street (dis. 1), Alpha Tower (dis. 3). However, because of the huge
demand, there is no vacant space in these projects.
Yet, in the next 3 years, quite a few real estate projects will have been completed and put into operation, it is estimated that the supply and demand will
rich equilibrium. Hence, the leasing prices will be
climbing at a gradual pace until 2010. Then, it’s
probable that the prices would return the current
level if no abnormal change occurs.
New office supply over the next five years is
expected to be mainly from the following
major projects:
The US$95.8 million Financial Tower (Bitexcoland
Tower) in HCMC – 70,000 m2 by 2010
Table 4: Price of some cities
Cities
Price
Ho Chi Minh City
35-40 USD/ m2
The US$89.8 million Twin Tower in HCMC
Hanoi
30-35 USD/ m2
The US$59.9 million 1 BIS Building in HCMC
Manila
9-12 USD/ m2
The US$59.9 million Saigon 3 Commercial Building in HCMC
Bangkok
17-23/ USD/ m2
The US$54.9 million VCB Tower in HCMC
Hong Kong
51-55/ USD/ m2
The US$49.9 million Le Loi Plaza in HCMC
Singapore
38-41/ USD/ m2
The US$89.8 million Time Square in HCMC
The US$45.3 million Harmony Point in HCMC
Gemadept Building in HCMC
Sourse: CBRE Vietnam
Kumho Asiana Plaza
VietcomBank Tower – 77,000 m2
A & B Tower – 60,000m2
28-storey Incombank Office Building in HCMC by Industrial Commercial Bank of Vietnam
US$55 million BDIV 40-story office building in HCMC – to commence work in early 2008
HANOI OFFICE MARKET
VIETNAM
REAL
ESTATE
OVERVIEW
Hanoi office leasing market shares common situation
TVSI-RESEARCH
DEPARTMENT
Table 5: Hanoi Commulative Stock and new supply
with Hochiminh’s. Up to quarter 1 end, there is
101,695 m2 office floor had been already in used,
only 1,297 was available. Of 1,297 m2 available,
nearly 1000m2 belongs to Metropole Business Centre.
However, this building is transforming from office
leasing to hotel business, thus, indeed there is no Agraded office leasing available. It’s the extremely
large demand that makes newly-completed buildings
bearing no room left. Opera Business Center – locating in front of The Great Theatre – run of room before
it was officially inaugurated. Similarly, businesses and
embassies have just hired all of the 18,000m2 of
newly-built Pacific Place in Ly Thuong Kiet street.
Table 6: Take up and Vacancy of Grade A&B Office
From the beginning of the year, Hanoi has
18,820 m2 additional office floor of A grade being put into operation, but all of them is full. As
A-graded building is run of off space, businesses
have to use B-graded office, this helps fill the
vacant in all B-grade office and ultimately make
them run out of space too. Of 142,509 m2 of
graded-B office floor, 99% has been full. The
situation deteriorated when North Asia Tower
was forced to cut off several top stores while was
going to inaugurate.
Table 7: Average Rental of HN Grade A Office
Office leasing prices are getting higher and higher. In
2006, the prices increased ceaselessly, A-graded office leasing prices rose 5% against 2006’s IV quarter.
A-graded prices are about $34.4/m2 monthly and Bgrade’s is $22.3 excluding VAT. As the growth of
large demand, it’s predicted that A-grade’s prices will
boost 15-20% in the end of the year and the next
year to come.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
B-grade’s prices will be under pressure of falling
slightly as a series of new buildings are due to be
completed, such as
VIT building in Kim Ma
street, Viglacera in Tran Duy Hung street, will
supply about 62.000 m2 . However, the floor will
soon be filled with first comers
The situation also offers opportunities to investors. By
2010, several building will have been put into operation including A-graded office buildings such as BIDV
Tower (40,000m2) in Tran Quang Khai street, Capital
Tower (30,000m2) in Tran Hung Dao street, and Hanoi City Complex (40,000m2) in Lieu Giai street.
Other investors are searching for land space to build
more high-grade office but facing difficulties in finding
a good location. Thus, the supply of office floor is not
able to have a big boost, and the prices tend to increase in years to come.
That finding a good location to build office in the
downtown is challenging, investors now tend to
move the focus to My Dinh area. Beside 5-star
hotel projects worth million dollars, there are
several building projects of Vinaconex
(44,800m2) and Cavico Vietnam (34,400m2)
New office supply over the next five years is
expected to be mainly from the following
major projects:
The US$43.9 million BIDV Tower in Hanoi –
33,000 m2
US$320 million Exchange City in Hanoi
US$300 million West Lake project in Hanoi
US$500 million complex in Hanoi by South
Korea’s Keangnam Group
US$240 million complex in Hanoi by Singapore’s Antara Koh Development
Hanoi Complex by Luxembourg-owned Coralis Viet Nam Ltd
30-storey VNPT Towers in Hanoi by Vietnam Posts & Telecommunications Corporation
US$1 billion integrated commercial (Yen So Park) project in Hanoi by Malaysia’s Gamuda Land, to be developed over 2007-2015 period
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
APPARTMENT FOR LEASE
APPARTMENT FOR LEASE IN HOCHIMINH CITY
Apartment for lease demand in HCM city is always
high meanwhile the supply is limited, especial in
international standard building. 7 A-graded building,
equivalent to 500 apartments, can satisfy just a
tiny part of the demand. According to CBRE Vietnam (Real estate Management and Marketing Company), despite the 15% prices boost against the
previous quarter (from $25 – 40/m2/month), 98%
of newly-completed luxurious apartments have
been rented or bought. The prices are expected to
continue to rise.
In general, the supply of high-grade apartments in
Hanoi and HCM city will keep rising slightly stably in
2007. Almost apartments are sold and hired in 3
months after inauguration. According to real estate
experts and brokers, the 2006’s high demand will
be maintained in 2007 and even rising vigorously.
However, the hot luxurious apartment market will
be coolened in the next 5 years as new projects will
be completed.
APPARTMENT FOR LEASE IN HANOI
In the first quarter of 2007, many luxurious buildings have been completed and put into operation.
But it has not yet meet the demand of the market.
It makes the “high-grade apartment fever” happened several years ago return in recent months
Table 8: HCMC Serviced Apartments
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
A-grade office lease prices rise up to $35/m2/month.
The reason is that the supply has made no increase.
The coverage ratio in this market in Hanoi and HCM
city is 99% because of the shortage in the supply.
Before, investors used to build apartments mainly
for sale, currently they have paid more attention
to building apartments for lease. According to
CBRE, lease prices for 3-4 bedrooms apartments
in Ciputra urban center is about $800-14000
monthly, for a villa about $900-2800/month.
High-grade apartments in city center acquire the
coverage ratio of 95%. Meanwhile, leasing apartment demand is still on a big rise because more
and more foreigners are coming to Vietnam to do
business as Vietnam has joined the WTO.
B-graded apartments, such as Hoa Binh Towers
(in Hoang Quoc Viet street), MDC Tower (in Kim
Ma street) offer a leasing prices of $100-200/m2/
month. A-grade apartments’ leasing prices is up
to $180-250/m2/month (Pacific Place in Ly
Thuong Kiet street). Despite of high lease prices,
lease contract of these apartments was signed
since the building was initially built.
Luxurious apartment investment is a profitable playing field attracting investors. In quarter II, Opera
Business Center and Pacific Place were inaugurated.
In Ciputra urban center, the first phase of the project
has been completed and the second phase is under
construction (expect to bring about 8,000 high-grade
apartments)
In The Manor project, the project’s owners have begun to take part in the The Gradern building complex
which is due to be completed in year end. Also in Hanoi, a group of Korean investors are prompt in begin
their projects in Western West Lake. Once this project completed, it’s estimated that there would be
about 4,800 luxurious departments and villas put
into the market.
However, experts believe that the currently hot market will be coolened in the next 5 year when a dozen
of projects in this field get to the market
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
APPARTMENT FOR SELL
APPARTMENT FOR SELL IN HOCHIMINH CITY
Trends:
•
New money flow from stock market into property.
•
Buyers become more and more savvy, so developer’s brand plays a more and more important role.
•
More buyers have real needs and there will not
be as many as speculators as previously.
Ability to borrow from banks, purchasing apartment
is easier and easier.
Forcast:
•
Demand forcasted to be increased 7% - 10%
from now to 2012.
•
Strong investment wave from Asia: Korea, Japan, Singapore. Keen on buying projects being
licensed and contructed instead of leasing land,
developing from the beginning. They are the
reasons for increasing in apartment supply
from now to 2010.
•
Price of high-class apartments keep rising during the next three years, and after that It will
be expected to be stable
APPARTMENT FOR SELL IN HANOI
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Trends:
•
Foreign developers are interested in large projects.
•
Korean developers are very active and will be
key players in future.
•
Japanese developers are also active and interested in serviced apartment market.
•
Local developers dominate small and medium
projects
Forcast:
•
Strong sales outlook for quality projects.
•
Growing demand for good quality pro-
ject.
• High demand for quality projects in
prime location.
•
RETAIL MARKET
HOCHIMINH CITY RETAIL MARKET
Ability to borrow from local banks.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Trends:
•
HCM City retail market in particular and Vietnam in general is seem to be one of the most
global potential and attractive
•
Nowadays, more and more famous brand is
getting into Vietnam at high request in building position and quality. And the International
Retail Group will hold the big market share for
high-class goods.
Forcast:
•
Supply of space for retail is increasing up to 2010 but still not meet the actual market demand. The
International Estate Development Group will have strong invest in retail market while Internal Estate
investor is investing in apartment and house for rent.
•
Rental price keeps rising during the period of 2007 -2010, and it will be expected to be stable.
HANOI RETAIL MARKET
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Trends:
High occupancy
Strong and increasing demand.
New entrance of Esprit, Mango, Estée Lauder
Limited supply
Forcast:
Increasing rental
International retailers are active to look for
opportunities and
to prepare for their enst
try after 1 January 2009.
Local retailers are active to expand prior to
1st January 2009.
Internationally
Land
Rent
Annualized
Equivalent
$/sqm
(/50 yrs)
HCMC
30-108
0.6-2.16
Beijing
54-73
1.08-1.46
Manila
50-55
1.00-1.10
Bangkok
Kuala Lumpur
57
49-99
1.14
0.98-1.98
INDUSTRIAL ZONE MARKET
▪ Industrial Parks (IPs) & Export Processing
Zones (EPZs) Contribution:
new projects opened up in HCMC, Dong Nai and
Binh Duong in southern Vietnam.
The Vietnamese government’s policy of decentralization has seen Industrial Parks (IPs) and Economic
Processing Zones (EPZs) being established in different cities across the country, with Hanoi, HCMC, Hai
Phong and Da Nang housing large centers, and medium-sized cities playing host to smaller centers.
Locality number of projects registered capital
(Millions dollars):
Dong
Nai:
94.497.87225,9;
HCMC
208.353.10163,63;
Binh
Duong:
130.306.99114.36; Thai Nguyen: 3.147.65 44,48;
Hanoi: 68 130.38 51,62; Hai Phong: 16 84.65
Almost half of the foreign investment capital regis- 52,43; Quang Ninh: 12 82.53 42.25; Vinh Phuc:
tered in Vietnam during 2004 came through the 20 73.95 37.27; Binh Thuan: 4 59.50 18.25; Tay
country's IPs. Just over USD$1 billion or 45% of the Ninh: 11 57.51 40.00.
total capital registered via new foreign investment In total, the zones absorbed just over $2 billion of
projects set up last year, was earmarked for Viet- freshly registered foreign investment, including
nam' EPZs, a 33% increase on a 2003. There were 40% of the total added by foreign investors to 358
232 projects established in the IZs and EPZs in projects as supplemented capital. These figures
2004, an increase of 10%. Three quarters of all
represented a 33% rise in unit volume and 40%
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
increase in capital. Most expanded projects were
based in Dong Nai, Binh Duong, Long An, HCMC
and Hanoi.
· After tax losses can be carried forward for a maximum period of 5 years.
▪ Investment Incentives: Development zones in
Vietnam can be classified into four categories: industrial parks; enterprise processing zones; open
economic zones; and hi-tech parks. It is important
for an occupier to perform due diligence when selecting a zone since while most offer similar preferential policies to companies, benefits will depend
on the nature of the business and how it is structured in Vietnam. But some standard policies for
foreign manufacturing companies include:
The above preferential CIT rates can also apply to
companies engaged in either business sectors that
are specially encouraged (eg computers, sugar, cotton & afforestation) and / or geographical areas
(provincial Wards in Districts) with difficult economic social conditions. Depending upon the exact
location, the type of business, and whether or not a
new business is engaged in production or services,
an exemption from CIT maybe granted for upto four
years from when a profit is first registered, and
then a further 50% reduction obtained for upto an
additional nine years. However, for a new manufacturing businesses looking to locate in an established
IP in one of the more popular provinces, a CIT exemption shall usually be granted for between two
and four years after first turning a profit with the
possibility of a further 50% tax reduction for upto
four years, largely depending upon whether the export ratio is less than 50%, less than 80%, or more
than 80% of total production.
- A Corporate Income Tax (CIT) rate of 10% for
export processing manufacturers and those in HiTech Parks & Open Economic Zones.
· A CIT rate of 15% for manufacturers in IPs and in
service sectors in EPZs.
· A CIT rate of 20% for companies in service sectors in IPs.
· VAT zero rating for companies involved in certain
business sectors in EPZs.
· The 2004 abolition of profits remittance tax and
standardization of CIT to 28%.
TOURISM AND LEISURE ACCOMMODATION
▪ Vietnam - the New Asian Destination : Many
Tourists have seen Hong Kong, Thailand people
have heard about Vietnam and many and Singapore and Vietnam are something countries have a
historic relationship with new to them. Vietnam
has very exciting opportunities as a new destination. Many people have heard about Vietnam and
many countries have a historic relationship with
Vietnam such as France, the US, Australia and
China.
Many believe that Vietnam will become the next
Thailand in terms of its tourist and second home
appeal. Currently Vietnam is around 20 years behind Thailand in terms of its development, the
number of tourists it attracts and also the prices
charged for real estate but the rate of development
by which
Vietnam is improving is incredibly rapid.
Vietnam shares great natural attraction and appeal
with Thailand and yet currently it offers a real estate investor far greater and broader potential for
profit and long term investment success. Therefore
while one can compare Vietnam to Thailand in
terms of its beauty and charm, one cannot tie Vietnam’s potential to that of Thailand’s because Vietnam is beginning to emerge as an incredibly attractive real estate investment hotspot on many unique
levels.
The number of foreign tourists rose by over 12%
for the first five months of 2007, compared with the
same period in 2006.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
▪ Hotels & Restaurants: Both Hanoi and HCMC
stretching down, interrupted to the Gulf of Thailand,
are experiencing a shortage of high-rated hotel
and from which one can quite clearly see Cambodia.
rooms. Since late 2006, Hanoi government has
According to some unofficial sources, there are
licensed five domestic and foreign investors to
about 100 resorts operational throughout Vietnam.
develop high-grade hotels with a total worth of
Other sources say about 50 luxury resorts have
US$1.2 billion, providing a total of 2,200 five-star
been developed in the central region alone.
rooms. The HCMC government is also planning to
license more high-rated hotels to resolve the
sever shortage of quality rooms in the city. HCMC
currently has eight new and expansion hotel projects (such as the Time Square, the Kumho Asiana Plaza, the Kim Do complex, and the Majestic
Hotel) underway and due for completion by 2010.
A tourism official says there are more than 100 resorts operational in Vietnam, but only 20 or so are
up to interna-tional standards. Due to the lack of a
long -term strategy and a zoning plan, the overall
picture for resort development in Vietnam is still
unclear. Luxury resorts like the Furama in Da Nang
City; the Ana Mandara & Sofitel VinPearl Resort &
Hotel building activity however is not just confined
Spa in Khanh Hoa (Nha Trang); Le Domaine de Tam
to the two ‘mega cities’ Hanoi and HCMC. Several
Hai in Quang Nam (Hoi An); and the Victoria & Life
resort-type and tourist related projects are underway or planned in other parts of Vietnam – where
the theme ‘eco-tourism’ has been used in their
promotion.
High hotel occupancy rates of 70 - 75% in the last
few years have already provided impetus for a
steady increase in hotel spending over the next
five years. After growing at an estimated 8% in
2006, investment is expected to surge to over
15% in 2007, strengthening to 23-24% per annum over the following two years to 2009, before
falling back slightly to 19% in 2010 and 13% in
2011.
▪ Great potential for the development of resorts: With a coastline of more than 3,000 km
and many islands, Vietnam has great potential for
the development of resorts.
Over the past 15 years many resorts have been
developed and many, many more planned at
beautiful beaches, especially those on the coast
from the central region down to the south, such
as Da Nang,Quang Nam, Khanh Hoa, Phan Thiet,
Vung Tau, Mui Ne & Phu Quoc - which is the size
of Singa1pore and with virgin rain-forest
Resorts chains have now become familiar names to
many luxury travelers and even the hundreds-ofthousands of ‘back-packers’ because of their offpeak-season discounts.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
GROWTH TRENDS ANALYSIS
DRIVER FOR FUTURE GROWTH
Urban infrastructure development
Current lack of supply
Emerging availability of
mortgages
Growing FDI Commitments
(>7.5%)
Growing remittances from
3mm overseas Vietnamese
Developing real estate laws
▪ Population trends & urban infrastructure development: Vietnam is one of the most densely
populated countries in Asia. Its population growth
rate in has been declining steadily over the past 30
years, from over 2% prior to 1990 to 1.26% per annum in the five years to 2000. The population
growth rate to 2010 is expected to maintain the high
level of 1.3%, as past high fertility rates mean that
more young people than ever are entering their child
-bearing years. This effect will be increased The
need to migrate to the urban areas for work is responsible for high population growth in the main cities, particularly in HCMC. However, the lack of urban
development in Vietnam has resulted in the urban
population being located overwhelmingly located in
just three cities by a decline in death rates due to a
rising life expectancy in Vietnam. Total population is
projected to increase from 77.6 million in 2000 to
82.7 million in 2005 and 88.4 million in 2010.
Over 50% of the population lives in the two large
deltas, the Red River and Mekong deltas, this includes the three main cities (Hanoi, Hai Phong and
HCMC). These regions represent 18% of Vietnam’s
land area and 70% of its economic activity. HCMC,
which has an urbanization rate of over 85%,
Comparable urbanization rates
Country
Urbanization
rates
Vietnam
27%
India
28%
China
32% -34%
USA
75% - 80%
Sourse: JP Morgan
Da Nang, 80% and Hanoi, 65%. These cities
are heavily strained in terms of housing, infrastructure and other resources. Five other cities
have urbanization rates in the 40-50% range,
with another four cities being in the 30-40%
range. These cities are increasing their level of
urbanization, but the lack of infrastructure required to support economic growth and increasing population has stifled the urbanization process.
VIETNAM
REAL
ESTATE
OVERVIEW
▪ Strong and consistent growth: Shortage
might be the best word to describe the current
real estate market. Whether it is hotel, serviced
apartment, retail or the office segment, demand
is outstripping supply as a result of high economic growth, strong investment and tourism,
and conspicuous domestic consumption.
The outlook for real estate & property over the
period 2007- 2011 is positive. With Vietnam’s
economic growth forecast to remain at 7-8% per
annum over the period, we expect demand
across the property market to strengthen further
amid tightening supply.
Developers are already responding to rising rentals for all types of property and expectation of
strong demand growth generated from strong
economic growth and rising foreign and domestic
investment following Vietnam’s WTO accession in
early 2007. This will be assisted further by the
government’s plans to continue the development
of the residential sector as it seeks to achieve its
Housing Plan goals, and its infrastructure expenditure as part of its campaign to become an industrialized nation by 2020.
The residential sector over the forecast period
will be underpinned by rising demand for highend housing as well as for mass residential housing. Increasing expatriate numbers working and
living in Vietnam will drive up demand for highend housing units. In the mass residential market, we expect demand to increase in tandem
with rising household incomes due to employment and wages growth in a strong economic
environment. An expansion of the private sector
– driven by rising foreign direct investment and
domestic investment will offer more employment
opportunities in the private sector. With rising
household income and improving mortgage
terms, we expect demand for mass residential
housing to pick up over the forecast period.
The WTO accession will see further market deregulation especially in the financial and services
TVSI-RESEARCH
sectors. As a result, we expect demand for premium grade office buildings from foreign bank to
exert further pressure on rents over the course of
2007. A larger amount of new office supply is expected only from 2008. There is also a shortage
of retail space supply. Demand for retail space is
strengthening with rising household incomes and
arrivals of international retailers in Vietnam. The
hotel sector is also experiencing a shortage of
rooms in higher-rated hotels. Average hotel occupancy rate has remained at above 70% in recent
years, backed by rising foreign visitors. Over the
forecast period there will be a number of hotels
that will be constructed as part of mixed commercial projects in HCMC and Hanoi. Outside these
two cities, a number of resort-style accommodation projects are approved or planned for construction in medium-sized cities over the next five
years.
The development of Vietnam as a holiday destination is rapidly taking hold. In 2004 for example
tourism numbers shot up by almost 24% and this
is a pattern that the Vietnamese are keen to see
emerge. Foreign investors have already realized
the potential of the tourism sector and a joint
Vietnamese and American consortium has already
committed one billion US dollars to the development of tourism and recreation facilities for example. Currently in the planning stages or under
construction are six championship golf courses, a
five star hotel resort, a marina, a yacht club and
substantial villa and apartment accommodation to
let to holiday makers. This particular billion dollar
investment is being centered upon the Uong Bi
Township and Nha Trang City in Khanh Hoa Province but investment opportunities are not limited
to any one particular area of the country when it
comes to tourism in Vietnam and the Vietnamese
government is actively and successfully encouraging tourism based investment. Such is the appeal
of the entire country that an investor can pick and
choose from well established locations such as
Nha Trang or emerging destinations where infrastructure has yet to improve but where land
prices are incredibly cheap and the potential for
the future is very strong.
MAJOR INVESTMENT MARKETS
HOCHIMINH CITY (HCMC)
DEPARTMENT
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
HCMC has a rapidly developing economy, well
educated population and modern facilities. Average municipal economic growth is forecast to be
11.5% in 2005, compared to the country's average over the past 10 years of 7.4%. Residence'
average per capita income was US$1,800 in 2004
(compared to USD$420 nationally), and city authorities estimate that it will reach USD$3,000 by
2010.
HCMC covers 2,095 sq.km, divided into 24 districts hosting an official population of more than
6.12 million. The southern business capital is a
major transport centre, well connected by road,
rail, water and air to the rest of the country, and
internationally. The city has a network of rivers
and canals spanning 2,900 hectares, which are
convenient for both navigation and irrigation. The
city's power, water and telecommunications are
reliable. There are 14 industrial parks (IPs) and
export processing zones (EPZs) in HCMC: Tan
Thuan, Linh Trung 1&2, Tan Tao, Hiep Phuoc, Le
Minh Xuan, Tay Bac Cu Chi, Cat Lai, Phong Phu,
Binh Chieu, Tan Binh, Vinh Loc and Tan Thoi Hiep.
What most people (and maps) refer to as Ho Chi
Minh City, infact only accounts for some 26% of
the total area. The remaining 74% is basically
split between the south-eastern mangroves &
swamps of Nha Be , Binh Chanh & Can Gio Districts; and the northern-western low lands of Cu
Chi & Hoc Mon. The city is undergoing
‘urbanization' so rapidly, that by 2020 the 17
HANOI
Hanoi, the capital of Vietnam, located in the central of Red River Delta, has nearly a thousand
years of being a socio-cultural-economic and political centre of the country. Hanoi is a relatively
small city (921sq.km compared with HCMC's
2,095 sq.km) with 12 Districts : Soc Son, Dong
Anh & Gia Lam - northeast of the Red River (663
sq.km) - and Tu Liem, Thanh Tri, Tay Ho, Cau
Giay, Thanh Xuan, Hai Ba Trung, Dong Da, Hoan
Kiem and Ba Dinh – of which the last 7 represent
the central and ancient core (84 sq.km).
The central part of Hanoi is densely populated
with about 1.5 million people and the Director of
the local Management of Urban Projects recently
said, "There is nowhere in the world like Hanoi
with houses less than 10 square meters or 1 meter wide." The residents of these extraordinary
‘inner city districts are expected to have a population
of 5.8 million to 6.4 million, while the suburban area
will have 3 million to 4 million residents.
Between 1999-2004 Ho Chi Minh City's populations
experienced an increase of more than 1 million people or an average of 200,000 inhabitants a year, according to Municipal Economic Institute & the city's
Planning and Construction Institute, which also said
that migrants account for 30% of the city's 7 million
people.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
houses that are deemed too thin and potentially
dangerous are now being be encouraged to either
sell up to their neighboring owners or hand them
over to city authorities.
flooding, no playgrounds for children, and no easy
access for firefighting services were considered
the main problems. An area of particular concern
was Hanoi 's Old Quarter, which was established in
the 11 the Century on an area of only 180 hectares
A recent survey by the Hanoi 's Land & Housing but occupied by more than 85,000 residents. The
Service stated that the majority of 4-6 storey capital city's population has increased remarkably
apartment blocks in Hanoi were in serious states in recent decades. The city was home to more than
of disrepair. Many of these blocks were built in the 3 million in 2004, with an average density of
1960's and 5% must be destroyed as soon as 17,868 people per kilometer. However, this rate is
possible, while 62% are in need of upgrades. Ha- much higher in the central districts. The most
noi has 67 residential areas, of which 42, with a densely populated is Hoa n Kiem District and espetotal area of 53,500 square meters, are on the list cially Hang Bo Commune. The high density populafor urgent improvement. The main reasons for the tion results in the fact that each person in these
deterioration include illegal changes to the de- areas has an average living space of only 2 square
signs (expanding) and sinking caused by weak meters. This has hit the city's infrastructure sysfoundations. In a recent "Housing Environment & tem hard, especially in the Old Quarter, where
Basic Environment in Hanoi ” seminar, experts many generations still live in the same house tosaid that about 40% of Hanoians are living in gether. Many families often share just one toilet
houses in a poor condition and with a bad envi- and an alley only 1 meter wide. The city's outdated
ronment. The seminar was the first one to discuss fresh water supply pipeline can only satisfy 40the environment of people living in the old resi- 50% of demand, while the drainage system in
dential quarters and the ancient streets of Hanoi . these living quarters is a major cause of local enviNo sunlight, not enough fresh water, regular
ronmental pollution.
BEACH & REGINONAL TOURIST DESTINATION
Over the years there have been numerous ‘Monster’
tourism-based projects planned and god-knows how
many smaller ones. None of the “professionally” invested project has ever been built – though several
are now being resuscitated and others planned. The
following is an abbreviated list of the most
‘financially significant’ of those and that are in the
most promising tourist areas:
Da Lat - Dankia Suoi Vang : A group of Japanese
companies comprising Mitsui, Mitsubishi, Sutnitomo
& Limtec have signed a letter of intent to invest
USD$1.2 billion to tap potentials of the Dankia-Suoi
Vang zone for 70 years (Note – the current maximum ordinarily permitted is 50 years). The Prime
Minister has agreed ‘in principle’ to the wholly foreign-owned investment scheme by the Japanese
investors. Situated about 22 km from Da Lat, the
plan is to develop an “International Standard” attractive urban town called the Romantic Town Dalat's Flower. An official from the provincial Service
of Trade & Tourism said that the investors wanted
to turn the area into a temperate town as a retreat
for Japanese ‘grey’ tourists, especially elderly people. As presented in the planning outline, the 5,071
hectare area, including 3,000 hectares of forest, will
become a big town with 30,000 villas, 3 high end
hotels, a 36 hole golf course, an opera house &
entertainment area with sports facilities, and – of
course – state of the art hospital to keep the residents alive as long as possible. The town will be
divided into three phases and basic construction
should be finished by 2017.
Phu Quoc Island - Rockingham Asset Management : The Los Angeles based property firm hopes
to develop a USD$1.5 billion resort complex which
will include an airport, seaport, sports and cultural
areas and town, would become the most attractive
tourist spot in Asia and plans to turn 600 sqkm
into an internationally recognized aqua-ecological
venue as well as a trade and cultural exchange
centre.
In 2005, the PM approved plans to turn Phu Quoc
and its surrounding 26 smaller island into an
“international tourism centre” able to receive 2-3
million tourists a year by 2020.
A total of 3,800 hectares or 6.3% of the island's
total natural area will be devoted to tourist facilities. For comparison, in 2001 about 45,000 foreign
tourists traveled to the whole province - Kien
Giang.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
As at the date of writing there is STILL, unbelievably ZERO Foreign Direct Investment on the island
(other than the small old Australian backed pearl
farm), which at 560 sqkm is MUCH bigger than
Phuket, Ko Samui and similar to Singapore’s 699
sqkm, with VIRGIN FOREST going to the seashore &
wild monkeys and endangered species in the dense
impenetrable forest.
Aquaba : Suoi Nuoc Resort plans to build 60
apartments, 33 town houses & 6 villas on a 2.2
hectare site costing USD$9.5 million along the
beach of Mui Ne in Phan Thiet Units in the 2No 7
floor blocks with all be fully furnished and cost
upto USD$200,000 with the larger 3 room town
houses from USD$200,000 and the 4 room villas
about USD$525,000.
There is also no domestic investment, other than
the modest 200 room resort from the ubiquitous
SaigonTourist – though they are, and have been
planning for many, many years, to construct a golf
course & casino. The island’s master-plan encourages the development of recreational & sport areas
and envisages 4 golf courses, a horse-race track &
water sport courses to be built. To emphasis the
increasing economic importance of the island, in
early 2006 the government approved a project to
build a USD$160 million 800 hectare international
airport capable of handling more than 2.5 million
passengers a year as well as Airbus A320s, A321s &
Boeing 767s when it is completed in 2008-10. Another positive sign, is the announcement by a Japanese & Australian JV that they intended to develop
a USD$1 billion 1,000 mega watt thermoelectric
plant transmit more electricity to the island to
lessen the number of frequent black-outs.
Nha Trang / Khanh Hoa - Vinpearl : The
USD$28.5 million property opened in December
2003 with 500 rooms and a swimming pool that
the owners claim is the largest in a hotel in Southeast Asia. It has sine been through many of the
hotel management companies and is now with Accor and called Sofitel VinPearl Resort & Spa. It is
the first stage of the total development of the
whole 360sqkm island including a USD$7 million
3.3 km cable car network supported by 9 pillars in
the form of Paris' Eiffel tower to connect the island
to the mainland; a USD$15 million marina with
Vietnam’s first yacht club & food court; a second 4
star hotel & golf course complex with 20 hectares
for 5 star villas; more villa compounds on either
side of the cable car including a USD$24 million
project called Phu Quy on 71 hectares with beachfront with USD$20 million worth of infrastructure
to turn the area into a waterfront resort community - in a similar vein Australia's Gold Coast and
Singapore's Sentosa. The developer – Ukranian
Viet Kieu – are also behind the USD$40 million
Vincom City Towers shopping & office complex in
Hanoi.
Phan Thiet-Mui Ne / Binh Thuan - Disneyland :
Seven US investors want to build a Disneyland style
theme park and resort in the coastal town of Phan
Thiet, 300 kilometers north of Ho Chi Minh City.
South Fork Development Company has applied to
develop a USD$1 billion resort. The American investors include many of the world's biggest names in
film, entertainment and amusement parks. Disneyland Paris, Tokyo Disney, Disney's California Adventure, MGM. Warner Bros and Hong Kong Disney are
all slated to become involved. The investors expect
to attract “five-star” visitors from around the world
by transforming Phan Thiet into a world class resort. The project will cover 600 hectares, encompassing 5 coastal resorts with about 900 rooms,
two 18 hole golf courses and a 6,000 seat international conference centre. A central area named
“Downtown Asia” will feature cultural specialties
from Asian nations, a leisure area modeled on Disneyland and a park. The five resorts will be built
with different architectural styles and all will be designed to top international standards as the American investors behind the project do not want to see
mid level products so, for example, the two golf
courses will be designed by USA Nicklaus Designs,
an internationally reputed golf course designer.
Vinh Phuc - Flamingo Resort : Situated in Vinh
Phuc province , the resort will feature a 200 room
5 star resort, 400 villas of 300-2,000 sqm selling
for about USD$410 / sqm included the cost for
land and infrastructure at about USD$295 as well
as shopping centers, a post office, kindergarten,
cinema and swimming pools overlooking several
artificial lakes in Dai Lai lake, located on 115 hectares 10 km from Noi Bai (Hanoi) airport and 40
km from downtown Hanoi. The complex is located
next to a proposed 36 hole golf course and close to
two others.
Ba Ria-Vung Tau - Saigon Atlantis : In early
2006 the government – at last - approved the long
touted USD$300 million Saigon Atlantis Golf Resort
by the coastal city of Vung Tau close by HCMC. The
project will be developed on a 300 hectare site in
Cua Lap 6km east of the city and will comprise a 5
star 1,000 room hotel; 70-80 villas; recreation facilities; a shopping centers; restaurants & slot ma-
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
machine area. The original concept was for a 1,200
investor is prepared to build the entire infrastruc-
room hotel and casino project providing employ-
ture for the site, 200 apartments and an 18 hole
ment for up to 20,000 with, in the 1st Stage : a
golf course before proceeding with the casino. The
hotel & casino costing USD$150 million; in the 2nd
Stage : a restaurant area, golf course, manor
houses, international bank & helicopter landing pad
to transport guests from HCMC; and the 3rd
project has received strong support from Quang
Nam authorities, as well as many ministry officials,
who hoped it would stimulate economic develop-
Stage : sports & entertainment facilities including a
ment in the poverty stricken province. The Prime
swimming pool, water park, sailing area, theatre,
Minister has expressed his “in principle” agreement.
exhibition area & trading centre. The developer –
Dai Tay Duong Resort - was a Joint Venture between Thuan Phat Co Ltd & United International
Business Limited of Hong Kong. In 2005 the US
based Winvest Investment LLC got involved and it
is understood that they have acquired some or all
Ha Long Bay / Quang Ninh : Tuan Chau International Tourism & Recreation Resort near Ha Long : US firms Andy Dye Group & Tree Group have set up
the Ha Long Bay Group JV which plans to invest
of the foreign partner’s interest in a 50 year JV
USD$1 billion in three initial projects. Andy Dye,
that is “renewable” for an additional 30 years. Ini-
founded in 1923, now has about 200 golf courses
tially the developer intended to build a casino in
worldwide and Tree, established 20 years ago, has
the resort, but in 2004 this and several other huge
built a series of luxury hotels in the US, mainland
USD$1+ billion casino projects like Vina Las Vegas
in Quang Nam, in Chu Lai, in Lang Son, in Da Lat &
Quang Ninh were refused permission.
China, Hong Kong, Malaysia and other countries.
About USD$400 million is earmarked for a complete
revamp of the 250 hectare Tuan Chau to build two
Hoi An / Quang Nam - Vina Las Vegas : Golban
18-hole golf courses, a golf club, a 5 star hotel, 640
C&D and the financial group Lehman Brothers hope
condominiums, 300 luxury villas, 50 estate lots
to invest USD$1 billion in a casino resort on the
(“for billionaires and international figures” according
coast of Dien Ban District about 60 km north of
to the MoU), a marina & yacht club, a helicopter
Tam Ky, the provincial capital of Quang Nam covering 540 hectares and extending from the sea to
the Co Co River. They believe that the stunning
coastline and proximity to Da Nang and Chu Lai
pad, an underwater and adventure sports areas.
The two other projects, which will cost USD$550600 million, are a 108 hole golf course at Yen Trung
airports and World Heritage sites make the location
Lake in Quang Ninh Province's Uong Bi Town and a
ideal. The proposed license duration is 50 years
5-6 star hotel in Nha Trung in the central Khanh
and the original plan included construction of 500
Hoa Province. The 1,000 hectare Yen Trung com-
apartments, 15,000 premium hotel rooms, a com-
plex will cover 6 international standard golf courses
mercial conference & exhibition centre, a health
and a golf club, 2,000-2,500 luxury villas and 300
spa, a 36 hole golf course, a marine activity area &
park, and last but not least 4 casinos with auxiliary
facilities for foreigners. It is understood that the
condominiums. Details of the 400 room hotel in Nha
Trang are still being finalized.
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
APPENDIX
Appendix 1: Real Estate Company list
Miền Bắc
Miền Trung
Miền Nam
Tổng công ty gốm và thủy
tinh xây dựng (Viglacera)
Công ty kinh doanh nhà
Thừa Thiên Huế
Tổng công ty xây dựng Sài
Gòn
628 Hoàng Hoa Thám- Tây
Hồ- Hà Nội
30 Hùng Vương, TP Huế,
tỉnh Thừa Thiên Huế
62 Nguyễn Đình Chiểu, p.
Đa Kao, quận 1, TP. Hồ Chí
Minh
Tổng công ty gồm 33 đơn vị
thành viên
Tổng công ty xây dựng
nông nghiệp và phát triển
nông thôn
68 Trường Chinh, Đống Đa,
Hà Nội
Tổng công ty có 25 đơn vị
thành viên và 11 liên doanh
với nước ngoài
Công ty xây dựng và kinh
doanh nhà ở Nghệ An
Tổng công ty vật liệu xây
dựng số 1 (Sài Gòn)
59 đường Trần Phú, TP
Vinh, Nghệ An
9 - 19 Hồ Tùng Mậu, Lầu 4,
Quận 1, Tp.Hồ Chí Minh
Tổng công ty bao gồm 13
đơn vị hạch toán độc lập và
5 đơn vị hạch toán phụ
thuộc
Tổng công ty gồm có 26
đơn vị thành viên hạch toán
độc lập và 8 chi nhánh hạch
toán phụ thuộc văn phòng
Tổng công ty xuất nhập
khẩu xây dựng Việt Nam
(Vinaconex)
34 Láng Hạ, Đống Đa, Hà
Nội
Công ty xây dựng và phát
triển nhà Bình Thuận
Tổng công ty xây dựng số 4
(Sài Gòn)
số 116 Nguyễn Hội, Phan
Thiết, Bình Thuận
Số 205 Đường Nguyễn Xí,
P.26, Quận Bình Thạnh, Tp.
Hồ Chí Minh
Tổng công ty có 14 đơn vị
thành viên
Tổng công ty gồm 81 đơn vị
thành viên trong đó có 8
văn phòng đại diện
Tổng công ty lắp máy Việt
Nam (Lilama)
Công ty Xây dựng - phát
triển đô thị Bình Định
124 Minh Khai, Hai Bà
Trưng, Hà Nội
161 Trần Cao Vân, TP Qui
Nhơn
Tổng công ty gồm 22 đơn vị
thành viên
Tổng công ty đầu tư phát
triển đô thị và khu công
nghiệp
14 Kỳ Đồng- Q3- TP Hồ Chí
Minh
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Công ty quản lý và khai
thác nhà đất Thành phố Đà
Nẵng
Công ty quản lý kinh doanh
và phát triển nhà Khánh
Hòa
63 Thái Phiên Đà Nẵng
03 Nguyễn Thiện ThuậtNha Trang
Tổng công ty xây dựng công
nghiệp Việt Nam
Công ty kinh doanh và phát
triển nhà Lâm Đồng
Công ty cổ phần phát triển
Nam Sài Gòn
5 Láng Hạ, Ba Đình , Hà Nội
21 Trần Phú, Phường 3
Thành phố Đà Lạt.
29/1 Nguyễn Bỉnh Khiêm,
Quận 1, TP Hồ Chí Minh
Tổng công ty đầu tư và phát
triển nhà Hà Nội
Công ty Kinh doanh nhà
Đồng Nai
Công ty xây dựng và phát
triển nhà Vĩnh Long
34 Hai Bà Trưng, Hòan
Kiếm, Hà Nội
121 Phan Chu Trinh, TP
Biên Hòa, Tỉnh Đồng Nai
Số 80, đường Trần Phú,
phường 4, thị xã Vĩnh Long,
tỉnh Vĩnh Long
Tổng công ty xây dựng và
phát triển hạ tầng (Licogi)
Sở Địa chính Nhà đất thành
phố Đà Nẵng
Công ty xây lắp An Giang
Thanh Xuân, Hà Nội
57 Quang Trung ĐN
Tổng công ty xây dựng Hà
Nội
57 Quang Trung. Hà Nội
Tổng công ty gồm 23 đơn vị
thành viên
Tổng công ty bao gồm 20
đơn vị hạch toán độc lập
Tổng công ty gồm 19 đơn vị
thành viên
Số 316/1A Trần Hưng Đạo,
TP Long Xuyên
Tổng công ty bao gồm 14
công ty hạch toán độc lập, 3
công ty và 1 chi nhánh hạch
toán phụ thuộc Văn phòng
Tổng công ty, 2 đơn vị hành
chính sự nghiệp
Tổng công ty đầu tư phát
triển hạ tầng (HUD) .
Tổng công ty có 6 công ty
thành viên hạch toán độc
lập, 1 chi nhánh phía Nam
hạch toán phụ thuộc.
Tổng công ty Sông Đà
Nhà G10 - Thanh Xuân Nam
- Quận Thanh Xuân - Hà Nội
Tổng công ty có 25 đơn vị
thành viên
Công ty xây dựng và kinh
doanh nhà Phú NhuậnTPHCM
117 Nguyễn văn Trỗi- P12Q11- TPHCM
Công ty xây dựng và kinh
doanh nhà Chợ Lớn
432 An Dương Vương, P4,
Q5, TP HCM
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Công ty kinh doanh nhà Hải
Dương
Công ty cổ phần Địa ốc Sài
Gòn.
Số 12 phố Nguyễn Du,
TPHải Phòng
Số 63-65 đường Điện Biên
Phủ, P.15 Q. Bình
Thạnh .TP.HCM
Công ty kinh doanh phát
triển nhà Hà Nội
Công ty Cổ phần phát triển
nhà Bà Rịa - Vũng Tàu
xã Tứ Hiệp, huyện Thanh
Trì, Hà Nội
02 Trương Công Định - P2 TP Vũng Tàu
Công ty Đầu tư phát triểnXây lắp công nghiệp dân
dụng
Công ty Phát triển nhà tỉnh
An Giang
193-195 Khâm Thiên- Đống
Đa- Hà Nội
7-9 Nguyễn Trãi TP Long
Xuyên - An Giang
Công ty Hà Đô- Bộ quốc
phòng
Công ty TNHH Tư vấn-TMDịch vụ Địa ốc Hoàng Quân
Số 8 Láng Hạ, Ba Đình, Hà
Nội
373 Huỳnh Văn Bánh, P11,
Phú Nhuận, TP HCM
Công ty cổ phần đầu tư XD
và XNK Phục Hưng
Công ty Xây dựng và Phát
triển nhà Bến Tre
B4- Tổ 111- Hoàng CầuP.Ô Chợ Dừa- p.Đống ĐaHà Nội
105D-Phường 8 TX Bến Tre
Công ty cổ phần đầu tư xây
dựng Ba Đình
Công ty Xây dựng-Thương
mại Sài Gòn 5
46 Nguyễn Trường Tộ, Ba
Đình, Hà Nội
2A Lý Thường Kiệt, P12 Q5 TP HCM
Công ty TNHH Đại Ngọc
Công ty Dịch vụ Phát triển
Đô thị
Số 8- Ngõ 27- B1, phố Cát
Linh, Đống Đa, Hà Nội
60 Trương Định Q3 TP HCM
Công ty TNHH thương mại
du lịch và dịch vụ Lâm Bình
Công ty Cổ phần Địa ốc
Long An
6, BT1, Biệt thự bán đảo
Linh Đàm, Thanh trì, Hà Nội
Đường Bảo Định, P2,TX Tân
An, Long An
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Công ty liên doanh Vinapon
Development Co.ltd
Công ty Phát triển và Kinh
doanh nhà
649 Kim Mã, Ba Đình, Hà
Nội
36 Bùi Thị Xuân, Q1,
TPHCM
Công ty đầu tư xây dựng và
xuất nhập khẩu Việt Nam
Công ty Cổ phần Thế Kỷ
Mới
39 Nguyễn Đình Chiểu, Hà
nội
Lầu 4, 65 Lê lợi, Q1, TPHCM
Công ty xây dựng Hồng Hà
Công ty Xây dựng và Kinh
doanh nhà Cần Giờ
Số48 Đoàn Trần Nghiệp, Hà
Nội
Công ty cổ phần đầu tư xây
dựng nhà đất
152 Nguyễn Ngọc Nại, quận
Thanh Xuân, Hà Nội
603 Bến Bình Đông, P13,
Q8 TPHCM
Công ty Đầu tư Phát Triển
nhà và Khu công nghiệp
Đồng Tháp
Số 6 Lý Thường Kiệt, P1, TX
Cao Lãnh, Đồng Tháp
Công ty đầu tư xây dựng và
hợp tác quốc tế Hùng Vương
Công ty Cổ phần Phát triển
Hạ tầng Sài Gòn
63 Hàng Trống, Hoàn Kiếm,
Hà Nội
05 Phùng Khắc Khoan,
Phường Đa Kao, Q1, TPHCM
Công ty Bảo hộ Lao động và
Thiết bị điện
18 Hàng Nón - Phường
Hàng Gai - Hà Nội
Công ty Kinh doanh phát
triển nhà ở tỉnh Nam Định
236 Trần Hưng Đạo - TP
Nam Định
Công ty Đầu tư xây dựng
phát triển đô thị số 4
622 Bà Triệu – phường Điện
Biên- TP Thanh Hóa
VIETNAM
REAL
ESTATE
OVERVIEW
Công ty Thiết kế Xây dựng
nhà (CTy tư vấn đầu tư và
phát triển Đô thị)
69 Quán Thánh – Quận Ba
Đình- Hà Nội
Công ty Đầu tư-Xây dựng
Hà Nội
76-An Dương- Yên PhụQuận Tây Hồ- Hà Nội
Công ty Cổ phần Đầu tư An
lạc
466 Nguyễn Chí Thanh, Hà
Nội
Công ty TNHH Thái Nam
68 Phạm Ngọc Thạch - Q3 TP HCM và 26 Nguyễn Văn
Ngọc - Q. Ba Đình - Hà Nội
TVSI-RESEARCH
DEPARTMENT
REAL
ESTATE
265,257
812,458
669,935
HASTC 180,085
HASTC 435,360
133,169
HOSE
HOSE
HOSE
SIC
SVC
HBC
ITA
SJS
HASTC
HASTC
HASTC
HOSE
HOSE
HOSE
SIC
SVC
HBC
ITA
SJS
Listed
floor
RCL
Ticker
Main Ratios
193,242
22,238
21,011
30,188
47,967
27,917
26,787
17,450
13,375
12,419
12,687
108,539
09M2007
23,416
2,006
BVPS
36%
24%
154%
31%
18%
36%
2,006
30%
19%
56%
138%
24%
37%
09M2007
Sales/Assets
1,593,932 542,694
1676%
19659%
1927%
1014%
131%
53%
2,006
340
9,450
461%
6927%
574%
531%
214%
18%
27,830
5,639,990
187,792
62%
62%
294%
80%
86%
44%
28%
139%
314%
136%
214%
09M2007
274
383
114
34
581
157
2,006
2,006
416
333
175
42
420
188
09M2007
4,695
3,081
4,934
5,341
3,296
2%
2%
10%
0%
3%
14%
2,006
19%
21%
19%
3%
0%
20%
09M2007
Money/Assets
40,000,000 23,969
79,998,200 3,306
5,640,000 1,604
12,873,410 2,992
2,200,000 154
6,991
09M200
7+Q4.06
EPS
DEPARTMENT
1,500,000 6,300
Collect money period (days)
5,000,000
246,468 45,000,000
211%
2,006
2,200,000
1,500,000
68,761 12,873,410
7,252
10,487
Sales/Equity
474,962119,845
627,752148,773
373,8409,044
09M2007
Outstanding shares
TVSI-RESEARCH
2,006 09M2007 31.12.2006 30.09.2007
+Q4.06
Net income
1,118,606 38,520
62,838
71,496
09M2007
Cost good sold/
inventory
1,071,470 336,109
205,615
137,089
33,090
73,985
2,006
936,224
268,861
356,589
46,224
33,356
09M2007
Net Sales
2,227,768 352,763
70,045
172,185
38,390
35,124
2,006
Owner' Equity
1,464,145 3,278,110 570,902
09M2007
HASTC 202,843
2,006
RCL
Total Assets
Listed
floor
OVERVIEW
Ticker
Key numbers
Appendix 2: Financial Ratios
VIETNAM
REAL
ESTATE
HASTC
HASTC
HOSE
HOSE
HOSE
SIC
SVC
HBC
ITA
SJS
HASTC
HASTC
HASTC
HOSE
HOSE
HOSE
RCL
SIC
SVC
HBC
ITA
SJS
Listed
Ticker floor
HASTC
RCL
Ticker
Listed
floor
34%
17%
27%
16%
27%
19%
1%
0%
7%
3%
13%
35%
58%
39%
53%
40%
21%
17%
67%
68%
40%
44%
17%
17%
2006 09M20
07
36%
42%
4%
28%
1%
13%
2006
40%
39%
7%
6%
12%
15%
09M200
7
22%
26%
13%
22%
1%
27%
18%
11%
10%
19%
16%
31%
09M200
7
ROE
69%
72%
27%
89%
52%
29%
TVSI-RESEARCH
DEPARTMENT
13%
10%
7%
9%
0%
5%
12%
8%
4%
8%
3%
5%
6%
66%
6%
69%
0%
33%
2006
73%
46%
154%
18%
61%
240%
314%
153%
173%
114%
121%
09M2007
86%
2006
70%
46%
139%
14%
44%
44%
237%
313%
149%
155%
95%
80%
09M2007
26%
24%
59%
49%
32%
83%
09M2007
Quick ratio
42%
61%
47%
60%
79%
83%
2006
2006
7%
36%
35%
46%
1%
25%
09M200
7
Current ratio
37%
11%
0%
13%
64%
1%
09M20
07
09M200
7
ROA
62%
0%
0%
21%
52%
0%
2006
7%
8%
1%
3%
51%
0%
09M2007
61%
73%
48%
63%
109%
33%
32%
60%
52%
83%
83%
09M2007
83%
2006
Total Debt/Total
Equity
18%
12%
1%
2%
30%
0%
2006
Construction in
Current liabili- Long term liabiliFinancial Investprogress/
ties/Owner's eq- ties/Owner's eqments/Assets
Assets
uity
uity
2006
45%
60%
45%
60%
65%
25%
09M2007
Fixed Assets/
Assets
2006
2006
1%
0%
3%
9%
6%
34%
09M2007
Owner's eqNet income/Net
uity/
sales
Resourses
27%
25%
48%
3%
29%
16%
2006
Inventory/
Assets
OVERVIEW
09M2007
Receivable/
Assets
2006
Financing ratios
Appendix 2: Financial Ratios
VIETNAM
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Appendix 3: Financial Reports
HBC– Hoa Binh Construction and Real Estate Corporation
Balance sheet
Income statement
Unit: VND 1000
Unit: VND 1000
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Appendix 3: Financial Reports
SIC - Song Da Investment Development Joint Stock Company
Balance sheet
Income statement
Unit: VND 1000
Unit: VND 1000
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Appendix 3: Financial Reports
RCL - Cholon Real Estate Joint Stock Company
Balance sheet
Unit: VND 1000
Income statement
Unit: VND 1000
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Appendix 3: Financial Reports
SVC - Saigon General Service Corporation
Balance sheet
Unit: VND 1000
Income statement
Unit: VND 1000
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Appendizx 3: Financial Reports
ITA - Tan Tao Industrial Park Corporation
Balance sheet
Unit: VND 1000
Income statement
Unit: VND 1000
VIETNAM
REAL
ESTATE
OVERVIEW
TVSI-RESEARCH
DEPARTMENT
Appendix 3: Financial Reports
SJS - Song Da Urban & Industrial zone Investment and Development Joint Stock Company
Balance sheet
Unit: VND 1000
Income statement
Unit: VND 1000