TVSI_2007_Real estate Sector report
Transcription
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 [email protected] 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 [email protected] 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 [email protected] 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