VietRees Newsletter 40 Week3 Month07 Year08

8/14/2019 VietRees Newsletter 40 Week3 Month07 Year08

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Vietnam Real Estate Newsletter A40

The first weekly electronic newsletter is released weekly and nationwide, specially for real estate companies, professional investors and individuals in need of real estate.

Editorial Board: VietRees Market Information Department and renow.com.vnNewsletter A40 Week 3 July, 2008

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This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or nterested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsible for he occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenient tracking or

getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].

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Weekly issuedto 7,000 registeredmembers,

approximately20,000 reads

per week or

80,000 readser month

Section A GeneralMarket Information

completely presents thewhole market with hot

news, foreigninvestment, real estatecompany, real estate

new developments andall necessary legal

news.Section B ResearchResults & Statistics

provides marketstatistics including

pricings of developments, marketprices and construction

materials prices, realestate overall statistics,

newly announceddevelopments every

week and month,approved developments

for construction andVietRees forecasts on

the market and VN-Index stats.

Section C Utilities &Speciality News consists of usefulselected articles,

reports and analysis.

Please stay tunedwith the

Real EstateInvesting Newsletter

issued by VietRees everymonth. The newsletter

introduces fully legitimatedevelopments that are

calling for investment and

acquisition.

Joining with VietRees todevelop this weekly newsletter

SECTION A - GENERAL MARKET INFORMATION

A1-MARKET HOT NEWS

Source: PhapLuat

Source: Lao Dong 1. The rise of cheap pricehouses

16 Jul, 2008

2. Capital still pours into realestate projects

17 Jul, 2008

Real estate transaction volume through real estateagents has gone up by 15% compared with June.Purchasing power has mainly focused on houses of under 800 million VND and separate houses of under 2billion VND. Despite prosperous signs in transactions,real estate business circle says that the market has stillnot thawed and only the segment of cheap price houseshas been evenful. Customers are those in real demand

and cash inflow is from accumulated money, not bankloans. There has been little movement in land or high-end apartments in Dist.2, Dist.7, Dist.9, Nha Be, BinhChanh.It is forecasted that in late 2009, the real estate marketwill recover. However, from business point of view,some real estate companies say that by November 2008we would know whether the market will recover or not.At present, the apartment segment has been warmingagain because prices have decreased significantly andsome investors have accepted to sell at loss to reinvestin other projects. Real estate business circles also saythat this is a golden chance to invest in real estatebecause in comparison with securities channel, gold andforeign currency, investment in real estate has sufferedthe least risks. That explains the reason why domesticinvestors barter away projects but foreign capital stillstrongly pours into this channel.

Although real estate market has frozen, a mass of big scale projects keep being developed. Domesticand foreign capital worth billions of USD are stillpouring into investment for projects. According toexperts, Vietnam real estate market, especially HoChi Minh City, is the market that gets the strongestattraction in Asia at present.In general, from late June to early July, the real

estate market in Ho Chi Minh City has seen no signof prosperity; purchasing power is not considerablecompared with sale demand. However, within thismonth, real estate investors have had somemovement and preparations for projects worthbillions USD such as the super project of VietnamInternational University Town (Berjaya Land Berhad),Tan Hung Newtown (Tan Hung Co.), Horizon PlaceResidential Complex (Aseana BDC). Not onlyprojects in development are bustling but alsoprojects that will be developed in future will beevenful.An expert says, Vietnam real estate is getting intodifficulties but it will start to recover and put an end to

this frozen period within next year. Some Japaneseand Korean investors still judge that Vietnam isholding the growth rate ranked in top list of Asia.

A2-REAL ESTATE FOREIGN INVESTMENT

Source: Vnagency Source: VietRees3. Brunei licensed to invest in4,3 billion USD into Phu Yen 12 Jul, 2008

4. Taeil S&D intends to investin Thu Thiem 14 Jul, 2008

Peoples Committee of Phu Yen Province grantedinvestment permit for high-end complex tourism areawith total investment of over 4.3 billion USD to New CityProperties Development - Brunei Company Ltd on 11July, 2008.

The project will be executed until 2017 on a site of 565hectares in An Phu, An Chan commune and the Southurban area of Tuy Hoa City.The tourism area includes 4.300 rooms of 5-star hotels,8.900 rooms of 4-star hotels, 160 high-class villas, 36-hole Golf Course and other service constructions.

Management Board of Thu Thiem new urban area isstudying the proposal of Taeil S&D company (ShindoIndustrial Development Corporation - Korea) aboutinvesting in Thu Thiem new urban area with totalinvestment of 900 million USD.

The proposed project covers an area of approximately 38 hectares and includes 3 areas: (1)resettlement apartment buildings with communityactivity zone, culture-sports centers..., (2) a complexwith 8 blocks of high rise office buildings, high-ranking apartment buildings, culture-trade center...,(3) 40-storey bank finance center.

Insightful Real Estate Market Information And Research : Please contact VietRees, theprofessional real estate researching and consulting company in Vietnam. We specialized ininspecting demands and performing behavioral analysis on current customers, targetedcustomers and potential customers in the real estate business sector in order to assist andadvise real estate companies developing a perfect business and marketing plan thatsucceeds in satisfying customer demands to its best. Furthermore, VietRees carries out awide variety of researches including possibility analysis, competition analysis, mediamarketing analysis and real estate valuating services.

Information regardingpublishing:On June 14 th 2008, VietReesand The NOW Group renow.com.vn have signedan agreement on cooperatingand developing the VietnamReal Estate Newsletter.


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This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or nterested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenientracking or getting full information. Should you need any queries or register to receive the newsletter, please contact via [email protected].

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A3-REAL ESTATE COMPANY EVENT

Source: Tuoi Tre Source: KT & DT 5. New ecotourism area in Phu Yen

12 Jul, 2008

6. 4 more enterprises intend to establishreal estate trading floor 15 Jul, 2008

On 11 July 2008, Peoles Committee of Phu Yen province signedinvestment certificate for the project of Hon Ngoc - Bai Tramecotourism area invested La Perla-Tashun development limitedcompany ( in joint venture with Dutch ), with total investment of 161billions VND.The project is developed on a site of nearly 90 hectares at XuanCanh commune, Song Cau suburban district, Phu Yen province withservices: hotels, resorts, villas for rent, sports tourism...

Vincom Joint-Stock Company, 18 Engineering and ConstructionJoint-Stock Comapny, Tai Tam Limited Company, Tai Nguyen Joint-Stock Company sent written proposals and received official approvalfrom Ministry of Construction in establishing real estate tradingfloors. Enterprises should be in direct contact with the Real EstateMarket and Housing Management Bureau, the Real Estate Marketand Housing Research Center to get instructions on developingconstruction of real estate trading floors.

Source: VietRees Source: TheSaiGonTimes7. Resco owns a new member company

17 Jul, 2008

8. Eden opens real estatetransaction office

17 Jul, 2008 HCMC Peoples Committee has just approved policy on shifting ThuThiem Investment Development Limited Company ( one member ) directly under Sai Gon Real Estate Corporation.Therefore, Resco will solve backlogs of Rach Ong Hoa housing areaproject transferred from Thu Thiem Investment Development LimitedCompany (one member) and post capital increases and decreasesand debts in the accounts according to regulations.

On July 16 th , One Member Limited Company (Eden Real) openedfirst transaction office in its real estate service business andmarketing network at E1.1 My Phuoc St., Tan Hung Ward, Dist. 7.Besides consultancy, marketing and dealing in real estate projects,office also operates in tourism field, exit and entry consulting serviceand visas.

A4-REAL ESTATE DEVELOPMENTS NEWS

Source: TheSaiGonTimes Source: Thanh Nien9. Work starts on a $32 million USDComplex 14 Jul, 2008

10. One more resettlement apartmentbuilding in District 8 15 Jul, 2008

Thang Long 14-storey Complex including trade center, apartmentsand office buildings with its investment of $32 millions USDcommenced on July 14 th, 2008 in Tan Binh District, Ho Chi MinhCity.Thang Long Tower is a tripartite cooperation project between threecompanies comprising Dai Tech Corp, Beta Company and Vina-Thang Long Company (Korean). The project is expected to be builtwithin 14 months.

HCMC Peoples Committee has approved Rach Lao resettlementapartment building project invested by Phu Nhuan housing businessand construction company.The whole reserve of houses located in the project is intended for resettlement of households whose houses suffer clearance inDistrict 8. Department of Planning - Architecture and Department of Construction will provide investors with guidelines and support inoder to ensure commencement in August, 2008.

NBVNBNN

Source: VietRees Source: VietRees11. Work starts on Da Sa ecotourism site

15 Jul, 2008

12. Work starts on Vinh Yen Plaza tradecenter 16 Jul, 2008

Da Sa resort ecotourism site has just been commenced on July 14 th,2008 with total area of 150 hectares in Lac Duong District, Lam

Dong Province and invested by Hoai Nam Ha Noi LimitedCompany.Total capital at first stage is 150 billion VND used for construction of resort-villa, high-class hotel, arts and crafts village, entertainmentarea, cable hanger, heliport, subway,

Soiva-Vietnam Group has officially started construction of Vinh YenPlaza trade center at Khai Quang Ward, Vinh Yen City.

The project has total area of 1.8 hectares and total investment of 300 billions VND.The project includes shopping complex on floors, hotels, mini hotels,entertainment area, sports hall, conference centers and high-classvilla areas.


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A5-LEGAL NEWS

Source: VietRees Source: Thanh Nien13. Construction introduces urban planninglaws. 15 Jul, 2008

14. Restrictions on small land ownerslifted. 16 Jul, 2008

Morning of 15 July 2008, the Ministry of Construction has organizedto introduce the project of Urban Planning Laws. With 7 chapters,75 clauses, the draft focuses on matters relevant to organization of,establishing, ratifying urban planning; organization of planning andurban development management, capital for setting up urbanplanning; commending and rewarding or tackling breaches in urbanplanning activities. The purpose of laws project is to intensify therole of people in process of establishing and performing urbanplanning. Within duration of 30 working days, as from the date thaturban planning project is ratified, the Peoples Committee at alllevels are responsible for officially announcing the planning topublic. If those who are in charge of the announcement do notannounce or make any overdue or wrong announcement they willbe dealt with by the law.Constructions located on a site of under 15m2 will not be grantedbuilding permits. Owners of constructions should request demolitionpermits when they want to demolish their constructions. Demolilitonpermit should specify methods, duration and regulations,requirements of safety guarantee and environment protection duringdemolition time.

According to the 8 th draft of Urban Planning Laws announced on 15July by Ministry of Construction, the Drafting Board has liftedrestrictions on small land owners.In the draft, the Ministry rescinded the regulation that stated:Concerning land less than 15 square meters in area, thegovernment shall not compensate land users with real estate or housing, but with cash only.The draft also did away with the following decree: There shall be nopermits allowing further construction or refurbishing of housingleading to an increase of area awarded to users of land less than 15

square meters. The directive went on to encourage merging smalllands in urban area into adjoining lands under legal forms.To guarantee architectural space at urban centre lines, Ministry of Construction has put forward general proposals that detaild planningof centre lines at 1:500 scale should ensure effective exploitation of land reserves on two sides of roads; in addition, study onarchitectural space; specific setbacks should ensure areas asperfect entities and itensify theirs specifics.


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SECTION B RESEARCH RESULTS & STATISTICS

B1. PROVINCES ATTRACTING MOST FDI IN THE PAST 6 MONTHS B4. APARTMENTS AND DEVELOPMENT LANDS PRICES

With total investment of over 8 billions USD,Taiwan is leading the listwith 64 projects. The nextis Japan with 7.1 billionsUSD for 47 projects. It isstill Korea who hasinvested in most projects

13 projects.

B2. FOREIGN COMPANIES MAKE STRONG INVESTMENT IN HO CHI

MINH REAL ESTATE MARKETEstimated in real prices, investment during the first 6 months of year 2008 has reached265.4 thousands of billions VND, increased by 21.1% over the same quarter of previous year. State capital sector has increased by 15.2%. Non-state capital sector has increased by 15.1%, FDI has increased by 37.7%.Regarding inflation restraint, until 28 May 2008, totally 28 ministries and departments,43 localities, 8 economic corporations and state-owned enterprises carried out their running a check on projects that use investment of State owned budget. 618 projectswith total investment of 1450 billions VND were put off and stopped being developed,construction progress of 377 projects was obliged to decrease with total investment of 2533 billions VND.FDI has continued to increase greatly, from early year to 20 June, 2008, 478 projectswere granted investment permit with the total registered capital of 30.9 billions USD.Despite 29.5% decrease in the number of projects, there has been a 324.3% increasen capital over the same quarter of year 2007. If included 661.2 million USD at

supplementary level of 158 projects granted investment permits, total FDI of the wholenation during the first 6 months has achieved 31.6 billions USD, 3.7 times higher thanhe same quarter of year 2007, far exceeding the FDI of 21.3 billions USD in Vietnam

for the whole year 2007.Source: General Statistics Office - Edited by VietRees B3. VN-INDEX

Source: Vietstock Up to date 18/07/2008

Updated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can be original prices or transfer prices at current or at one week prior from the date this newsletter is issued.

District Area (m2) Price (millionVND/m2) +/-

Apartment building HCMCBinh Minh 2 108 17 +Blooming Park 2 95 29Van Do 4 85 22 -Garden Plaza 1 7 124 38 -Grand View 7 115 36.5 +My Khanh 7 195 36 +Carina 8 99 16.5My Thuan 8 95 9.5Thai An - Quang Trung 12 69 11.5Gia Phu BTA 65 10.5An Loc GV 63 13.5Botanic Tower PN 113 30 +Development land lots HCMC An Phu - An Khanh 2 100 28 +Thanh My Loi 2 200 18The ky 21 2 100 30Him Lam KinhTe 7 150 30Nam Long 7 366 48Phu My - ADC 7 120 19Trung Son 8 120 33Phu Nhuan 9 294 8Codesco 12 161 6.5Phu Xun - VPH NB 144 10Apartment building - Ha Noi My Dinh CG 186 22Vimeco CG 144 26M5 DD 149 28Lilama HBT 114 22Linh Dam HM 140 17.5Viet Hung HM 77 15Happy House Garden LB 96 10Nang Huong TX 117 14 +Development land lots ProvinceLan Anh 2 BR-VT 100 2Long Dien BR-VT 135 3

Nam Can Tho CT 100 3.5An Vien DNI 109 1.5Phuoc An - Long Tho DNI 122 3 +Tan Do LA 105 3

B5. ANNOUNCED PROMINENT REAL ESTATE DEVELOPMENTS DURING THE LAST 4 WEEKSWeek 4, June 2008 Week1, July 2008 Week 2 July, 2008 Week 3 July/2008

HCMCity

Tan Thuan Tay Residential Area(D.7), Long Truong WardResidential Area (D.9)

Vietnam International Universitytown (H.Mon D.), ResettlementArea W.22 (B.Thanh D.), HorizonPlace Complex (D.4)

5-star hotel - trade center (D.1)

Thang Long Tower (Tan Binh Dist.),Rach Lao Resettlement ApartmentBuidling (Dist.8)

Other Areas

The Long Chau Villas &Residences (H.Long) Vi ThanhCommune RA (H.Giang), Bao Son

Paradise (H.Tay), Golf Course Hotel Sea Links (P.Thiet)

Trang Cat UA and Industrial Park(H.Phong), Long Dien ApartmentArea (V.Tau), Marketing Center

at Bac An Khanh UA (H.Tay),Tan Phu Thanh RA (H.Giang)

An Tay UA (B.Duong), BenLuc RA (L.An), Hue NhaRuong Ecotourism Area

(Hue), Trung Hung New UA(H.Noi)

Thuan An Ecotourism Site (P.Quoc),Phu Yen Toursim Complex - Hon NgocBai Tram Eco tourism (P.Yen), Da Sa

Ecotourism Site (L.Dong), Vinh YenPlaza Trade Center (V.Phuc)


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B6. APPROVED PROMINENT REAL ESTATE DEVELOPMENTS IN HO CHI MINH CITYJune: Vinh Loc B RA (D. Binh Chanh), Van Phuc Gia Company HA (H.Mon), 38,4ha RA (D.2),Hung Phu Company HA (D.9), Thu Thiem Software Park (D.2), An Phu Dong Ward De TamCompany HA (D.12), Truong Tho Ward Tin Nghia Company AP (T.Duc D.), Office Building Conference Center 31 Le Duan (D.1), Hoang Phuoc Company HA (D.12), P.13 584 CompanyAP (B.Thanh D.), Hoa Thanh Ward AP (T.Phu D.), Commercial Building 01W Dien Bien Phu(B.Thanh D.), AP For Reurban 147 Nguyen Chi Thanh AP and Commercial Building 258 LeHong Phong (D.5), Hiep Binh Phuoc Ward AP (T.Duc D.), Tan Chanh Hiep Ward HA (D.12)

July: Complex W.11 (Minh Phu Co, D.3), VietnamInternational University Town (VIUT) (H.Mon D.), SuburbArea at Thanh My Loi ward (Quang Trung Co, D.2),Horizon Place Complex (D.4), Descon AP (D.2), HoangPhuc Company Commercial (D.6), Phu Xuan Ward - AnhTuan Company HA (N.Be D.), Ward 4 Commercial (D.4),Le Minh Xuan Ward HA (B.Chanh D.)

RA: Residential Area, AP: Apartment Building, HA: Housing Area, RuA: Reurban Area, TA: Tourism Area, IA: Investment Area, UA: Urban Area.

B7. REAL ESTATE MARKET FORECAST* The situation of real estate market For Sale during the last 6 months shows that prices are maintaining the current downturn. Many properties on consignmenthave not been asked to be purchased. According to VietRees, the reason is that the instability of market was exposed clearly and buyers insecurity becameworse when they got puzzled about the real value of real estate and kept expecting further price decreases. Prices of high-end apartment buildings have beenplummeted and prices of ground base in some areas have gone up too much higher than the real value.

* The current time has been considered to be difficult for many real estate companies because the market has been selecting and promising a lot of newchanges. Real estate enterprises are getting in trouble because bank loans for house purchase have tightened. One of the steps taken by these enterprises iso cut down every cost and expand the progress, delay or stop implementing projects, and wait for a better market to deploy. In the market, there is a tendencyhat some enterprises have shifted towards investing in other fields to maintain their operation and overcome this current period.

* According to VietRees, individual investors or those who are in real demand and have available capital but bank loans can re considered house buying at thisime. Real estate enterprises should reconsider and choose the projects of high feasibility and efficiency to implement. It is advisable to regard customers asthe core and guarantee their interests; investment porfolio should aim at customers who have real demands and avoid focusing on segments of secondarynvestors. Besides, it is neccessary for enterprises to raise capital from many different sources including joint venture with foreign partners. However, in reality,aising capital from joint venture with foreign parters currently also has difficulties because they are more punctilious about choosing, evaluating and consideringhan before. Investors must be more professional when conducting any negotiation with these foreign partners.

* Note: Information on market forecast is only updated every 4 periods ( after one month) by VietRees

B8. CONSTRUCTION MATERIALS MARKET PRICES REPORT B9. CONSTRUCTION MATERIALS MARKET PRICES Construction material prices, especially steel prices, have had a suddenncreasing tendency from early July until now, which has prolonged

construction duration of many projects in building operations; contractorsand investors have felt extremely worried. At present, it is difficult not onlyor investors to make decisions on building but also for contractors toeceive projects.

Viet Nam Cement Industry Corporation forecast that market demand,especially in Ha Noi and HCM City will increase dramatically during the 4thquarter 2008. Therefore, Vicem has directed its units to ensure the stabilityn its activities and maintain high output in the 4th quarter. Simultaneously, it

will prepare a supply reserve to meet market demand at each area;coordinate with distributors to strictly supervise sale prices and productquality in order to avoid causing any market fluctuation; actively searchmore import sources of raw materials (clinke, cement powder) witheasonable prices to serve production and reserve for 1st quarter 2009.

Vicem has also presented the expected demand for cement in the last 6months with a number of 19-20 million tons, in which ViCem strives to reach

a supply of 8-9 million tons (in which 4th quarter occupies 5 million tons).Compared with the previous month, sale prices of iron sheet continue toignificantly increase from 2.500 - 4.000 VND/kg (14.7% - 29.7%). Theeason for this price hike is soaring import prices and increasing value of he USD over VND. In the market, rolled steel prices are about 19.6 - 19.9

million/ton but there is no product in many places.Edited by VietRees

Type of goods (Source: HCMC Department of Finance)

Unit Price(VND)

Ha Tien Cement PCB40 50kg pack 72.000

Holcim Cement PCB40 50kg pack 72.000

Chinfon Cement PCB40 50kg pack 67.000

Steel bloom D6 kg 19.800

Steel bars D10 bar 148.000

Square wave zinc iron sheet-K 1,07m, 3,5 zem m 54.500

Square wave zinc iron sheet- K 1,07m, 5 zem m 99.200

Binh Minh plastic pipe, 21x1,6mm in diameter m 80.000

Binh Minh plastic pipe 27x1,8mm in diameter brick 1.200

Hollow brick, nail 190x90x90 Tuynel Dong Nai brick 1.200

Stone 2x4 m3 230.000

Sand m3 200.000Sand (base for concrete) m3 230.000

Dong Nai decoration tiles (grade A1) tile 3.300

Thick, thin glazed tiles (grade A1) tile 1.000

Coric decoration tiles (30x30) m2 71.500


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This is a weekly newsletter issued by VietRees Vietnam Real Estate. This is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or nterested in Vietnam real estate market changes. Although the information is selected, synthesized from all reliable sources, this newsletter is only for reference and VietRees is not responsibleor the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. VietRees states clearly the original sources and dates for your convenient

ki g g tti g f ll i f ti Sh ld d i gi t t i th l tt l t t i k t @Vi tR

Sponsor:

SECTION C: UTILITIES & SPECIALITY NEWS

C1. REAL ESTATE BROKERAGE TRAINING CENTERS C6. TRENDS IN INVESTMENT AND DEVELOPMENT OF REALESTATE PROJECTSVietRees has updated a list of 40 agents granted training licenses and certificateswith regard to brokerage, pricing & management and operating real estate tradefloor. Most of these agents are located in Ha Noi and Ho Chi Minh City and theres only 1 agent in Da Nang and 1 agent in Can Tho.

C2. FEATURED ARCHITECTURAL DESIGN COMPANIESSWA, M, www.swavietnam.com Ong&Ong Co., Ltd., Singapore, www.ong-ong.comSurbana Vietnam, Singapore, www.surbana.comRSP Vietnam, Singapore, www.resp.com.sg Archiects 61 Pte., Ltd., Singapore, www.a61.com.sg DP Architects Pte., Ltd., Singapore, www.dpa.com.sg

C3. HOUSING NEEDS FOR FOREIGNERSAccording to Statistics of Construction Ministry, at present, approximately 80,000foreigners are living and working in Vietnam, of whom 21,000 are fully capable of buying houses in Vietnam. In Hanoi, total housing area for foreigners to lease hasreached about 220,000 s.q.m, whereas in Ho Chi Minh City, this number hasripled.

Houses for lease are mainly villas, terraced houses and apartments with a leaseerm of 3-5 years. Ministry of Construction envisages that in the coming time there

are about 10,000 foreigners in need of buying houses with total square area of 1.5 millions s.q.m.

C4. DEMAND OF WELFARE HOUSES FOR LOW INCOME EARNERSAND RESETTLEMENT IN HCM CITY HCM City has developed the project of 30.000 welfare houses since the last 5years, yet currently only 30% is done. Regarding houses for cadres,workers,officials in the whole city, 17/49 projects serves over 3.600 apartments and over 4.700 ground bases. Most of projects were executed more slowly than committeddate of investors by an average period of from 12 to 18 months.According to Department of Construction, (1) HCM City includes 3 exportprocessing zones and 11 industrial zones in which housing areas need to be builtfor nearly 218.000 workers; (2) 30.000 houses for resettlement and (3) houses for approximately 11.000 young officials and cadres.

C5. REAL ESTATE FOR THE LOW INCOME Extra hundreds of thousands of apartments to be built for low-ncome earners

* Sai Gon Gia Dinh Real Estate Company and Hoa Binh Phu Yen Companybuild Thoi An Apartment Building in District 12 with 1.000 apartments.* Construction Company No. 8 (CIC8) will invest in construction of 10.000 KeppelLand apartments and Tien Phuoc Company will build a resettlement area

ncluding 1.900 apartments at An Phu, Binh Khanh, District 2.* HCM City housing development fund will build low- income houses in District 12.* HCM City Peoples Committee will advance 50.5 billion to carry out the projectof Vinh Loc B, Binh Chanh residential area for resettlement with hundreds of ownhouses and 40 apartment blocks.

* Construction Company No. 5 will invest in construction of 500 apartments atWard 22, Binh Thanh District.* Dat Lanh Company has granted construction permit for 30-40m2 apartmentspriced at 200-300 millions VND/unit.* Besides, VinaCapital and Chinese, Korean Groups are expediting projects of apartments worth below 400 millions USD/unit.* HCM City Cooperative Alliance has developed its construction investmentproject of housing area at Le Minh Xuan Commune, Binh Chanh SuburbanDistrict on a site of 67.49 hectares.VietRees

According to VietRees analysis, in aspect of project developmentand investment, the current real estate market is witnessing somefollowing trends:Current trends in investment and development of real estateprojects1. Domestic enterprises with powerful financial potential, mainlycorporations, still keep developing, but their progress may beslower than before.2. Most of enterprises are still expecting and trying to stay in thefield, but instead of doing it on their own as before, now theseagents have turned joint-ventures, called for cooperation,investment and integration. 3. Some medium and small enterprises with unstable structuresand some individuals that own and tend to develop former projects are having difficulties in project implementation and havenot found out suitable partners. Now they are aiming at projecttransfer.Before this situation, one reality is that many foreign investors arehunting for projects of domestic companies to undertake, transfer or carry out joint-venture. According to study of VietRees, someadvantages that make foreign investors much interested in thisform include: clear legal situation of projects, avoidance of siteclearance compensation, furthermore, some projects only needinvestment to be implemented quickly. In addition, investmentcosts is sometimes a little lower than in reality because projectland of project management are taken back due to their slower implementation than in stipulation.Recently, VietRees Investment Promotion Department has beenreceiving many requests from domestic investors who haveprojects in need of investment or transfer and requests of foreigninvestors about searching properties as well. As a supplier of fullservices, a deep market understanding and working experienceswith foreign partners, VietRees would like to offer advices toproject managers interested in calling for foreign investment intheir projects as follows:Advice for project management interested in calling for foreign investment 1. Fully prepare documents about project (especially for legaldocuments of projects).2. Carefully study price of transfer or equity capital (for cooperation form or joint-venture form).3. Regarding projects planned in details, a clear and logicalbudget distribution sheet for investment and detailed design of every portfolio in the overall project required.4. Submit an analysis table of successfulness and feasibility level(profitability level) of projects.5. For joint - venture forms, project managers should havecarefully and clearly prepared financial reports on enterprisessituations, and these reports should be carried out byprofessional audit companies.6. Additionally, a small yet important factor is to learn aboutbusiness culture and national culture of foreign investors in order to clear their very concerns and satisfy their requirements.VietRees

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VietRees Newsletter 40 Week3 Month07 Year08

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