VietRees_Newsletter_45_Week4_Month08_Year08

Weekly Newsletter Vietnam Real Estate A45

Week 4, August

The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month

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Market situation (p.2)

Real estate foreign investment (p.2)

Vietnam in the world (p.3)

Real estate agents (p.3)

Real estate projects and prices (p.5)

Real estate supply for customer groups (p.7)

Real estate legislation (p.7)

Real estate market forecast (p.8)

Construction material market last week (p.8)

Stock market last week (p.8)

This weekly newsletter is shared with partners, clients, members (registered) and internal VietRees together with those who are concerning or interested 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 the occurring damage. Please visit the website www.VietRees.com for further Vietnam Real Estate information. When individuals and organizations quote or publish the information from our newsletter, please cite the source VietRees. According to the statistics on registration for the newsletter, the subjects making reference to the newsletter includes real estate investors; companies or units of government performing management tasks, business marketing, consulting, broking, assessment, real estate finance, construction, banking, architecture, interior decoration; domestic and foreign press agencies; and full of professional investors or individuals who have demand for real estate throughout provinces and cities nationwide; typically Ho Chi Minh, Ha Noi, Da Nang, Can Tho, Hue, Nha Trang, BRVT, Binh Duong, Dong Nai, Ha Tay… We would like to say thanks to the sponsors and all of the readers. We expect to continue to receive your support as well as your comments to improve our newsletter.

VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A45 Page 2

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MARKET SITUATION Reducing registration fees: the real estate market has not “thawed out” yet Lao Dong – 20 Aug, 2008

The information that the registration fees (real estate transfer tax) has been reduced from 2 percent to 0.5 percent is considered as a “tool” to increase the liquidity for the real estate market and generate momemum. But the reality still does not meet the expectation. An enterprise shows that although the reduction of real estate transfer tax also makes the business and transfer easier, it has not been considered as a positive support tool to make the real estate market thaw. In general, the real estate business activities on the whole market are happening slowly. The main reason is that the key to activate the sluggish real estate market has not appeared yet. Because the bank still has not loosened the loan conditions for real estate businesses. Therefore, although the housing demand is very big, the business activities have still been weak due to the financial difficulties. However easy the procedures of the real estate dealing and tranferring are, they are unlikely to stimulate the market.

Building the real estate index: how accurate will it be? SGTT – 22 Aug, 2008

Ministry of Construction has just started the construction of the real estate index piloted in HCMC. Vietnam real estate price market index (VNREMI) is a tool to help customers, especially investors, to follow general movements and trends of the market. Accordingly, they have a whole and system view about the market. 11 real estate companies are invited to attend the meeting and have sent the Ministry of Construction the parameters including real prices of transactions, trading volume and the day number that a real estate is advertised for sale on the market. However, the biggest barrier that many people are concerned is the accuracy of the information. A expert judges that although all companies supply the real transaction prices because of their prestige, there is no exclusion of the posibility that they supply the erronenous information to seek profit. Until now, only some companies such as Vinaland, Metvuong, VietRees, CBRE have built the private real estate index for themselves. Some other companies are building the index or offering the price surveys. However, most of these indexes are price indexes in a narrow area, aiming at the market segment and product segment, so there have still been a lot of differences & limits. As a result, the market has had no standard to recognize the accuracy of the index. The group building VNREMI has also admitted that it is not simple to build targets describing the development of the real estate market in Vietnam; there is no precedent, but it is urgent and necessary. According to an enterprise, while waiting for VNREMI, the price acceptance of the customers is considered as a meter for the accuracy of the indexes.

REAL ESTATE FOREIGN INVETSMENT

One Singaporean real estate company is oriented to Vietnam SGTT – 18 Aug, 2008

The chairman of the second-largest Singaporean real estate company (City Developments Ltd.) has stated that the company would buy back the properties which were distained or sold at lower prices than their real value in Vietnam in early next year in order to do business. The company will focus on the projects of hotels, dwellings and commercial areas at Vietnam.

Daewon-Phong Phu-Thu Duc Housing Development Joint Stock Company invests in real estate projects. TheSaiGonTimes – 21 Aug, 2008

Daewon - Phong Phu -Thu Duc Housing Development Joint Stock Company (established by 4 founders including Phong Phu Corporation, Thu Duc Housing Development Joint Stock Co., Daewon-Thu Duc Housing Development Joint Stock Co. and Daewon Co. Ltd. – Korea) has received the investment license for the real estate project with total investment of over 1,500 billions VND at Minh Khai Ward, Hai Ba Trung District, Ha Noi. The project includes office building complexes, high-rise apartment buildings, low-rise houses, commerce - service areas, suppermarkets, kindergartens and etc.

$1.72 billions USD invested in Phu Quoc island tourism zone Tien Phong – 19 Aug, 2008

A total of 21 investmetn projects have been granted investment lisences in Phu Quoc by Kien Giang Province up to this time. In which, there are two projects with 100 percent foreign-owned capital and two joint-venture projects. These projects are developed on a site of 1,000 hectares along the coast, located in the Western & the Eastern areas of the island suburban district. Additionally, Phu Quoc also has 154 projects approved for investment by the province with a total area of 5,647 hectares and a total registered investment of 889,750,000 USD. The detailed plans of these projects are being excuted in order to start construction of the tourism works.

List of the countries having put the most investment in Vietnam until July, 2008 Source: General Statistics Office

Until July, 2008, Taiwan and Japan has been still leading in the list of countries having put the most investment in Vietnam. Malaysia has climbed from the 6th rank in June, 2008 to the 3rd rank.


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VIETNAM IN THE WORLD

Vietnamese investment abroad has been present at 41 countries and territories Edited by VietRees

Up to now, Vietnam has had 317 investment projects abroad with total registered investment of over 2.5 billions USD, in which the implemented capital has reached approximately 1 billion USD. The average investment has gained 7.8 millions USD/project. Vietnamese enterprises have been present at 41 countries and at all territories of 5 continents. However, most of investment has been poured into Asia, in which Laos is the leading market with 132 projects, occupying nearly 39 percent of the total projects and over 50 percent of the total investment. Vietnamese enterprises have also been present at some countries with petroleum potential including: Angieri (one 243 million USD project), Madagascar (one 117.36 million USD project) or some countries having traditional cooperative relationships such as Russian Ferderal Republic (14 projects with total investment of 198.3 billion USD). Accoding to Foreign Investment Bureau - The Ministry of Planning and Investment, investment activities abroad have transferred from the small-scale projects which invest in simple fields to the big-scale projects requiring high technology. Foreign Investment Bureau has forcasted that in 2008, the overseas investment of Vietnamese enterprises will achieve over 500 million USD, with an increase of 20 percentas compared with the year 2007.

REAL ESTATE AGENTS

Lang Son Market – Phu Loc IV Trade Center opened Lao Dong – 18 Aug, 2008

Ha Noi Real Esate Joint Stock Compnay has just organized the opening ceremony of Lang Son market – Phu Loc IV trade center completed on a site of 40 hectares after nearly 2 years of construction. Lang Son market is a small project with over 100 billions VND in the total capital of 458 billion VND. The market includes 3 storeys which each covers 7,000m2, 10 stairs, 10 elevators, fire fighting and prevention system and auxiliary projects.

Sonadezi list its shares on HCMC bourse Vneconomy – 19 Aug, 2008

HCMC Stock Exchange has licensed Sonadezi Long Thanh Shareholding Company (SZL code) to list 10 million shares with the face value of 10,000 VND/share. The total value of listed shares on HCMC bourse is 100 billions VND. Sonadezi operates in the field of real estate at industrial zones and civil areas; trading in contractor’s yard-transportation; construction - trading in construction materials; trading in services... The head office is placed at Long Thanh industrial zone, Tam Thanh commune, Long Thanh sururban district, Dong Nai province.

Ground-base at La Gi – Binh Thuan residential area worth 100 millions VND VietRees – 19 Aug, 2008

Sacomreal Company has shown that the project of Saigon - Ham Tan residetial area on a site of 10 hectares had the infrastructure completed and had the ground-base advertised for sale at the price of approximately 1 million VND/m2. Customers can receive legal documents after 1 month of transaction. Accoding to Sacomreal, the project of Saigon - Ham Tan residential area aims at the customers who have fair income, small traders and even secondary real estate investors.

Calling investors for Thu Thiem TheSaiGonTimes – 21 Aug, 2008

HCMC People’s Committee has licensed the management board of Thu Thiem urban area Management to call upon investors to construct real estate projects on a site of nearly 100 hectares. The projects calling for investment includes the complex of Internatinal Exbition and Conference Center and Internatinal Finance Center (30 hectares), the observation tower complex combining with multi-function trade centers (20 hectares) and the project of mutil-function recreation sport center (30 hectares), multi-fuctntion trade center – office building belonging to the multi-function area along the East-West Highway (12 hectares). The management board will complete the detailed plan and the design of the main technology infrastructure for the urban area before November, 2008 in order to submit to the Ministry of Construction for appraising and making basics for organization of tendering to choose investors. In addition, the City also assigned Saigon Tourism Corporation to implement the construction of a 6-star hotel with a scale of from 2,300 – 2,500 rooms at the eastern site of about 5.9 hectares.


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Websites of real estate companies in Vietnam Property developers

Ho Chi Minh Company 585 - www.585.com.vn Company 584 - www.congty584.com.vn An Phu - www.anphugroup.vn BCCI - www.bcci.com.vn Daewon - www.daewon.vn Him Lam - www.himlam.com Hoang Anh Gia Lai - www.hagl.com.vn Linh Phong Conic - www.conic.com.vn Nam Long - www.namlongvn.com Phu Long - www.phu-long.com.vn Phu Quoc Land - www.phuquocland.net SacomReal - www.sacomreal.com Sadeco - www.sadeco.com.vn Resco - www.rescovn.com Thai Thinh Capital - www.richlandhill.com.vn Thu Duc House - www.thuduchouse.com Phu My Hưng - www.phumyhung.com.vn Van Phat Hưng - www.vanphathung.com.vn Vietnam Land SSG - www.saigonpearl.com.vn

Ha Noi FPT Land - www.fpt-land.com C.E.O - www.ceoholdings.com.vn Gia Tue - www.giatue.com.vn HUD - www.hud.com.vn HDB Viet Nam - www.hdbgroup.com.vn Keangnam – www.eng.kne.co.kr Nam Cuong – www.namcuong.com.vn Song Hong Land - www.songhongland.com.vn Vinaconex – www.vinaconex.com.vn Vincom - www.vincom.com.vn Viet Hung - www.ecopark.com.vn

Other cities Becamex IDC - www.becamex.com.vn Biconsi - www.biconsi.com.vn Tuan Chau - www.tuanchau-halong.com.vn GNSVINA - www.cozyvill.com Company 579 - www.cecico579.com.vn Duc Manh - www.ducmanhco.com

Brokerage

Ho Chi Minh An Gia - www.angia.com.vn ACBR - www.acbr.com.vn Dat Xanh - www.datxanh.com.vn Dia Loi - www.nhadatdialoi.com.vn Dat Cat - www.datcat.com.vn FICO – www.ficohome.com.vn Kim Son - www.kimson.com.vn Phuc Duc - www.phucduc.com Hung Phu - www.hungphunhadat.com Hung Thinh 2 - www.diaochungthinh.com.vn Hoang Quan - www.hoangquan.com.vn Intresco - www.intresco.com.vn Loc Dien – www.nhadatld.com Nova - www.novahomes.com.vn Phat Hung - www.phathung.com.vn Tan Dien - www.tandien.com.vn Van Hung Phu - www.vanhungphu.com

Ha Noi Cland - www.cland.com.vn Dong Do - www.dongdobds.com Phu Thai Group - www.phuthaigroup.com Petrowaco - www.petrowaco.vn Petrolimex – www.pland.com.vn

Research CBRE - www.cbrevietnam.com Savills Viet Nam - www.savills.com.vn VietRees - www.VietRees.com

Consulting CBRE - www.cbrevietnam.com Dong Duong - www.indochina-consulting.com Eden Real - www.edenreal.com Indochina Land - www.indochinacapital.com Long Gia Khang - www.longgiakhang.com Savills Viet Nam - www.savills.com.vn Vina Capital - www.vinacapital.com VietRees - www.VietRees.com

Evaluation AREV - www.arev.com.vn Hoang Quan - www.thamdinhgia.com Vietland - www.thamdinhgia.com.vn VVFC - www.valuation.vn

Construction Ho Chi Minh CIC8 - www.cic8.com Coteccons - www.coteccons.com.vn Cosaco - www.cosaco.com.vn Hoa Binh - www.hoabinhcorporation.com Hai Thanh - www.haithanh.com.vn Toan Thinh Phat - www.toanthinhphat.com.vn

Ha Noi Constrexim - www.constrexim.com.vn Cavico - www.cavicovn.com HANCIC - www.hancic.com.vn HUD - www.hud.com.vn Incomex - www.incomex.vn

Architect and Interior Decoration Ho Chi Minh A2 Visualization - www.a2viz.com.vn Cat Moc - www.catmoc.com.vn Le Do - www.model&more.com Nha Vui - www.nhavui.com Nha Viet - www.nhavietdecor.com Nha Dep - www.nhadep.com.vn Pho Xinh - www.phoxinh.com.vn

Ha Noi ACT - www.act.com.vn ADKientruc - www.adkientruc.com Ashui – www.ashui.com Kien Truc Ha No - www.kientruchn.com


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REAL ESTATE PROJECT AND PRICES

Assigning land for construction of trade center – apartments at District 4 VietRees – 19 Aug, 2008

HCMC People’s Committee has approved the transfering land-using purpose of the planned project at No. 504 Nguyen Tat Thanh, District 4 to excute the investment project on the construction of trade center and high-end apartments. Saigon Transportation Mechanical Corporation is assigned to cooperate with the Department of Architecture and Planning to define the functions of land use and the standards for the planning of the architecture on the assigned land.

Ha Giang to construct the first industrial zone Vnagency – 20 Aug, 2008

The management board of indutrial clusters in Ha Tinh Province is promoting the construction implementation of Binh Vang Industrial Zone on a site of 255 hectares at Dao Duc commune, Vi Xuyen suburban district. Mineral works, industrial factories processing forest-agricutural products and producing construction material will be placed here. The next areas are the urban area for resettlement, the housing area for workers and the auxiliary service area on a site of 70 hectares. The construction process of the industrial zone is divided into 2 stages lasting from the year 2008 to the year 2020.

One more apartment building project for the civil servants VietRees – 22 Aug, 2008

On August 21st, 2008, Hai Thanh company introduced Hai Thanh 1 apartment building project at Binh Tri Dong B Ward, Binh Tan district, HCMC. The main subjects of this project are the civil servants that receive salaries from the budget and have no house at Binh Tan district. Hai Thanh 1 apartment building has 352 apartments with the average area of 51 - 72m2 and the price of approximately 10 millions VND/m2. This project is expected to be completed in January 2010. The civil servants who buys the house at Hai Thanh 1 apartment building will be loaned about 300 millions VND from the city within 15 years at the annual interest rate of 6.9 percent.

High-grade apartments in HCMC, the percentage increases and decreases in apartment prices over the previous period (month) Prices are forecasted to see a slight increase of 2% in August, 2008 as compared with July, 2008 VietRees – Aug, 2008

Announced prominent real estate developments during the last 2 weeks* Week 3, August 2008 Week 4, August 2008

Ho Chi Minh City Trading centre of Ben Nghe ward ( Dist.1) Dong Nam Cu Chi industrial-residential area (Cu Chi)

Trading center – Apartment 504 Nguyen Tat Thanh (Dist.4)Hai Thanh 1 appartment building (Binh Tan)

Other Areas Cam Ranh 5-star hotel (Khanh Hoa) Dong Thang trade centre (Hai Phong) Tan Thanh resort and tourism site (Vung Tau) Vinh Hai resettlement area (Thanh Hoa) Nui Chua resort (Ninh Thuan)

Binh Vang Industrial - Resettlement area (Hau Giang) Minh Khai ward Complex (Hanoi)

Approved prominent real estate developments in HCM City* July August

Housing, apartment, residential area Vietnam International University Town (H.Mon Dist.) Suburb Area at Thanh My Loi Ward (Quang Trung Co, D.2)Phu Xuan Ward - Anh Tuan Co. HA (N.Be Dist.) Le Minh Xuan Ward HA (B.Chanh Dist.) Phuoc Long A Ward – Phuc Long Co. HA (Dist.9)

Hiep Phu Ward – Hiep Phu Gia Co. Office Building, Truong Thanh Ward – VietNam House HA (Dist.9) 34-35 Ben Van Don Complex (Dist.4) 7/4A Kha Van Can resettlement area (Thu Duc) To be continued...

Office, commercial Complex W.11 (Minh Phu Co, Dist.3) Office 26 Nguyen Thi Dieu (Dist.3) Hoang Phuc Co. Commercial (Dist.6) Horizon Place Complex (Dist.4) Co Giang Ward – Duc Khai Co. Complex (Dist.1)

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

Websites of properties in Vietnam Ho Chi Minh Blooming Park - www.bloomingpark.com Saigon Paragon - www.saigonparagon.com Dragon City - www.dragonland.com.vn Preche - www.preche.com SaigonPearl - www.saigonpearl.com.vn V-Star - www.v-star.com.vn Time Square - www.timessquare.com.vn The Everrich - www.theeverrich.com Tan Da Court - www.tandacourt.com Lancaster - www.lancaster.com.vn The Vista - www.thevista.com.vn

Ha Noi Viglacera Tower - www.viglaceraland.vn My Dinh – Me Tri RA - www.sudicosd.com Bac An Khanh RA - www.vinaconex.com.vn Ha Noi Plaza Hotel - www.charmvit.co.kr Phap Van – Tu Hiep RA - www.hud.com.vn

Other cities

Furama Resort - www.furamavietnam.com Sai Gon – Mui Ne Resort - www.saigonmuineresort.com Sunspa ResortVietnam - www.sunsparesortvietnam.com

Other cities Cozyvill - www.cozyvill.com Flamingo Dai Lai - www.flamingodailai.com Van Phu township - www.dothivanphu.com Dam Vac Golf - www.damvacgolf.com Sanctuary - http://sanctuary.com.vn Ho Tram Strip - www.hotramstrip.com Sai Gon Sunbay - www.ctc-corp.vn Eden Lagi Resort - www.edenreal.com Van Quan – Yen Phuc township - www.hud.com.vn Quoc Te Do Son - www.vietlandgroup.com


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Property Retail Price 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.

Typical apartments in HCM city Other apartments and land lots

Estella, Dist.2 * 125m2 - 3 PN -2,100USD/m2 * 171m2 -3 PN - 1,900USD/m2

V- star, Dist.7 * 118m2 – 18million VND/m2

Sky Garden 3, Dist.7 * 68m2 – 29 million VND/m2 * 71m2 - 29.5 million VND/m2

Blooming Park, Dist.2 * 115m2 – 29 million VND/m2 * 135m2 – 31million VND/m2 Direct contact with the investor1

Phu My, Dist.7 * 83m2 – 23.5 million VND/m2 * 85m2 – 24 million VND/m2

The Everich, Dist.11 * 112m2 – 2,000 USD/m2

Preche, Dist.2 * 147m2 – 2,445 USD/m2

Panaroma, Dist.7 * 164m2 – 44.5 million VND/m2

Saigon Pearl, B.Thanh * 135m2 – 2.200-2,300 USD/m2

The Vista, Dist.2 * 139m2 – 1,800 USD/m2

BMC Hưng Long, Dist.7 * 90m2 – 19.5-23million VND/m2 * 79-137m2 – 20 million VND/m2

The Manor, B.Thanh * 98m2 – 2,600 USD/m2 * 157m2 – 2,850 USD/m2

District Area (m2)

Price (million VND/m2) +/-

Apartment building – HCMC Avalon 7 85.5 15.5 + Sailing Tower 7 137.5 37 Thinh Vuong 7 118 36.5 Constrexim Square 7 125 38.5 - Van Do 8 91 20 Hung Vuong Plaza 11 117 30.5 + Aview BC 88 15.5 Hoang Anh 2 BTA 81 8.5 + My Khang BTH 157 22 Conic Garden BTH 67 32 + Phu Loi NB 89 9.5 Conic Dinh Khiem TP 60 13 + An Lac TP 78.5 16.5

Development land lots – HCMC Binh Trung Dong 2 100 13

Detesco 2 252 30

Binh Phu 2 6 75 30

Phu My-ADC 7 100 22

Hong Quang-13A 8 100 28

Phu Huu 9 152 11.5

Hai Yen BC 100 13.5

Tan Kien BC 100 10 + Thai Son NB 250 12 + Apartment building - Ha Noi Keangnam CG 206 21

Nguyen Phong Sac CG 170 24

The Manor CG 189 32

Tran Duy Hung CG 140 26

Viet Hung - Long Bien GL 81 10

Me Tri Thuong TL 122 16 - My Dinh 1 TL 77 19

Nang Huong TX 117 14

Development land lots – Other provinces Green Square BD 90 8.5

Lan Anh 2 BR-VT 181 2

Lan Truc Thanh CT 147 3.5 HUD DNI 100 2

An Binh DNI 120 3

Dai Duong LA 100 5 1 Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 740 6688, Fax: (84.8) 740 6949

Danang: 225 Huyen Tran Cong Chua - T: (84) 511 836 216 * HCMC: 390 Nguyen Cong Tru, D.1 - T: 8 821 7509 * Hanoi: No.6-1D Trung Yen New Town, Caugiay - T: 4 783 1598


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PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS

60-80m2 houses lure customers Edited by VietRees

Good locations have still played a important role, but not the leading one in the real estate business at Vietnam as before. According to one recent study, the market is favoring the 60 - 80m2 apartments that suit many pockets. And the most suitable prices luring the investors range from 10 to 18 millions VND/m2 with the total value of 600 millions VND to 1.5 billion VND per apartment. Addionally, the payment method is reasonable, the construction progress & the technology infrastructure are good & the traffic is convenient. The subjects are those who buy house at the first time, accounting for about 50 percent, including newly-married spouses, families of 1-2 children and the families who have accumulated cash for years.

Real estate for the low income VietRees

Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment Building in District 12 with 1,000 apartments. Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & Tien Phuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2. HCM City People’s Committee will advance 50.5 billion to carry out the project of Vinh Loc B, Binh Chanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks. Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District. HCM City Cooperative Alliance has developed its construction investment project of housing area at Le Minh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares. 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve resettlement demand in the district. Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500-700 millions VND/unit. People‘s Committee of HCMC has approved the project of the resettlement area on a site of 55,24 hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi. House management of Dist.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, Thu Duc district. In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement area project, Binh Tan district for the civil servants at Binh Tan district.

Dwellings for overseas Vietnamese and foreigners VietRees

The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas Vietnamese buying houses, mainly in HCMC. Those who brought houses are those who come back to the country for their long term and direct investment, scientists, culture researchers invited to come back to the country to become experts and repatriating overseas Vietnamese. To buy houses, beside documents verifying priority subjects, the buyer must present their passport (issued in Vietnam). In the case that house buyers bring foreign passports, they must have certificates of Vietnamese nationality or documents confirming their losing Vietnamese nationality, or certificate of citizenship registration.

REAL ESTATE LEGISLATION

New regulations on compensation, support and resettlement Thanh Nien, 20 Aug, 2008

On August 19th, 2008, the People’s Committee of HCMC announced some amendments to the regulation on the compensation, support and resettlement when the government reclaims the land in HCMC, which will take effect as from August 29th, 2008. The most noticeable point is the compensation for the dwellings, projects and other buildings belonging to households or individuals. Accordingly, the built-on-land dwellings and projects that meet conditions to receive compensation for land are compensated 100 percent of the value of the project according to the new unit price for construction of houses and projects. If the dwellings or projects were built from April 22nd, 2002 and later or suffered the administrative penalty for the illegal construction activities, they will get no compensation or support. In the case that the dwellings or projects built on land do not meet enough conditions to get compensation for land and at the construction time, there have not been the planning and breaches of the service gallery for the technical infrastructure projects and they have to be built before April 22nd2002, they are supported 80 percent of the value of the project according to the new unit price for construction of houses and projects. As for the households and individuals who are using state-owned houses legally, and now, must move away, they will receive supports for accomondation and land and other property compensation such as crop plants, farm produce, domestic animals, and other supports (if any). If the dwellings or land showing state-owned origin are arranged for living purposes by the unauthorised units, organizations and used for living from May 17th, 1995 to April 22nd, 2002, they are supported 50 percent of the value of the houses and land correlating with the private houses owning the same positions. As for the dweliings or land arranged from April 22nd 2002 and later, they will get no support.

Hotels and offices to apply REMI first VietRees, 20 Aug, 2008

The Ministry of Construction has announced plans for a real estate market index (REMI) to regulate the domestic market by the end of this year. Initially, the index will be applied to apartments for lease, offices and hotels in HCM City, starting in the fourth quarter of this year. The index will later be upgraded and applied nationwide. According to Ministry of Construction, the index will show official fluctuations of the real estate market, by updating market information including prices, investors, products, trading times and trading volumes. The Ministry will develop the index for each product in the market, each locality nation-wide, and then build a general index for the entire country.


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

Trend In general, transaction situation of apartments, townhouses and project land in July has been more satisfactory than the previous months. Although the sign of a warming market is less, transactions are coming back. Customers have many choices and a lot of time to consider when buying. Transactions have begun to appear on the market, but not as fast as before. At present and in the future, there may be not many investors, speculators or wholesalers like before. According to VietRees, the number of buyers for real needs will increase. However, due to the inabundance of real needs and finances, they will ponder on this matter. Therefore, the decision making process will take more time than before. There is a slight increase in market prices of projects that investors hasten the progress of infrastructure construction and apartment buildings which are about to be completed and put into use. Although the real estate market is still in a difficult period, some companies, individuals and investment funds still keep investing into properties, especially foreign investors.

Apartment market The apartment segment is warming again due to the large decrease in prices. Additionally, it is difficult for the prices to keep going down while the inflation and prices of construction material are becoming higher and higher. In July, prices of many projects stopped sliding, even with an price increase of 10% in some projects. Customers have not only focused on the apartments with prices of under 1 billion VND as previous months but also learned and really paid attention to high-grade apartments for different purposes, which has caused slight increases in prices of high class projects. In comparision with the previous month, the quantity of customers having a look at apartments of some high-end apartment projects that are about to be put into use in Phu My Hung has significantly increased. Some investors are aiming at the apartment projects on the point of being handed over to customers. These projects can be used for customers’occupancy immediately.

Project land market In general, the land price has stopped suddenly. Most sellers believe that the situation has had less difficulties, prices have gone down too much and they cannot afford to suffer any more losses, so, they have stopped reducing sale prices. Additionally, the majority of projects with price increases have well-built infrastructure, customers can receive land for housing construction and begin building at once. Many projects with substantial price increases are located adjacent to Phu My Hung urban area.

CONSTRUCTION MATERIAL MARKET Construction material prices in HCMC market keep declining Edited by VietRees

According to Vietnam Steel Association, the steel demand in the domestic market is very low now and steel price is dropping dramatically. The selling price is only 17.3 million VND/ton and still on the downtrend. The reduction in steel consumption is due to the decreased construction demand in the rainy season. Additionally, the falling crude oil price in the world also makes the steel prices go down. VSA has petitioned for the reduction of the export duty on steel embryo from 20 percent to 10 percent. In addition, VSA has also petitioned the government to consider and study the foundation of the steel embryo reserve through carrying out the purchase of outstanding steel embryo at the enterprises. Since early August, most construction materials in HCMC have had prices reduced. Steel of all types has had price adjusted for at least 3 times from 4.3 to 4.5 millions VND/ton. Cement prices have also seen a downturn. Cement Ha Tien 1, Holcim, Cotec,etc have fallen by 1,000-2,000 VND/bag. On August 20th, 2008, Ministry of Construction has sent Vietnam Cement Industry Corporation an official document on the adjustment of the cement prices in 2008. Accordingly, there will be 2 price increases of 15 percent, which are expected to happen in August and November.

STOCK MARKET VN-Index back to the uptrend, HASTC - Index also has one dramatic session of point increasing Edited by VietRees Chart Source: Vietstock Up to date 22/08/2008

After the session of adjustment on a downturn on August 21st, both HOSE and HASTC have seen dramatic point increases. VN-Index went up by 17.51 points, HASTC-Index added 6.18 more points. The trading volume on these two transaction centers are still at the high levels. Opening the market in HOSE, the recovery of the market has not shown really clear signs. The selling orders are still more than the buying orders. Some codes keep seeing point decreases. However, at the end of stage 1, VN-Index has also come back to the uptrend and had 4.07 more points as compared with the day before, stopping at the 512.54 point mark. The total trading volume of this stage has attainedapproximately 5 millions units. At the end of the session, VN-Index continues to rocket up after getting 17.51 more points, stopping at the 525.98 point mark. The total trading volume of the whole market has reached over 25.4 millions units with the trading value of 1.025 millions units. At Hanoi transaction centre, HASTC-Index also has a dramatic session of point increasing. With an extra of 6.18 points in the session, HASTC-Index has exceeded the threshold of 160 points and stopped at 162.95 points. The total trading volum of the whole market has been over 11.7 units, equivalent to thevalue of over 551,2 billions VND. There are 24 losers, 3 remained unchanged and 119 gainers on the whole transaction centre.

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