VietRees_Newsletter_57_Week2_Month11_Year08

Weekly Newsletter Vietnam Real Estate A57

Week 2, November

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.3)

Vietnam in the world (p.3)

Real estate agents (p.3)

Websites of real estate companies in Vietnam (p.4)

Real estate projects and prices (p.5)

Real estate supply for customer groups (p.7)

Real estate legislation (p.8)

Real estate market forecast (p.8)

Construction material market last week (p.9)

Stock market last week (p.9)

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.

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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A57 Page 2

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MARKET SITUATION

Real estate still in eye-shot of foreign investors Lao Dong – 12 Nov, 2008

According to the real estate experts, although the Vietnamese real estate market has still had certain difficulties, the market will recover within the next 6 -12 months because the demand of the market is still there. This is considered to be a good period for seeking opportunities to invest in effective projects, especially projects that are hungry for capital to be completed. According to the forecast, the construction expense will continue to decrease in the first quarter of 2009. In addition, the capital of the banks onto real estate will be opened up and the interest rate at that time will be lower than at present. This is a good condition for the investors to complete the unfinished projects as well as develop some more new projects to stimulate demand. Additionally, the field of hotel & tourism of Viet Nam has drawn the special interest of foreign investors. According to them, the supply in the market has not yet met the growing demand. The trade and shopping centers have also been located in an eye-shot of foreign investors. Foreign investors have shown that the Vietnamese real estate industry could pick up at the end of the next year. If any investor accepts the current risks, the gained profit will be very high in the future. The tendency of the Vietnamese real estate industry will be stable and on the significant upturn when the crisis passes by. The Vietnamese real estate market will continue to receive the capital from the foreign investment funds.

Real estate market: both regions go down VietRees – 14 Nov, 2008

According to Ho Chi Minh City weekly real estate price survey of Sacomreal and Vinaland in the recent time, the prices of most projects in the city have seen no movement or an average decrease of 5 - 7%. In addition, the real estate enterprises and investors have forecasted that the real estate projects are likely to see further decreases in the last few months of this year. The “remedy” for reducing the loan interest of the credit organizations from 18 - 19.5% down to 15 - 16% has not solved the price decreases of Ho Chi Minh City real estate market. In spite of the attractive prices and the lower interest rate, the market has not seen any satisfactory movement. At the transaction centers in district 2, 6, 7, etc, there have been some phone calls a week. The volume of successful transactions in the real estate projects has drawn almost no interest. According to the real estate experts, the real estate business cannot take effect with the interest rate of 15 - 16% per year. The greatest wishes of the real estate industry at this moment in time are greater options to refinance debt and an applied interest rate that is more feasible. In Hanoi city, currently, the volume of transactions at the transaction centers as well as the brokerage centers is now very weak. The expectation of the new price decreases of the buyers, property owners are holding up the sale price of their property, which has made the rate of successful transactions on the market dropped dramatically. The main reason is that although the apartment building prices in Hanoi have declined as compared to the peak of 2007, they have not yet met the expectations of those who have real housing demands. Some people have invested in buying the real estate in the period of high prices. Until now, although the apartment prices have fallen, they have kept the goods and kept the prices in order to avoid profit reductions. According to a report of CBRE on Hanoi housing market, in the third quarter, the prices have slid by 10% as compared to the period before Tet holidays of 2008, but the buyers have been waiting for the projects with more competitive prices. Regardless of the fact that the associations and enterprises have suggested the greater options to refinance debt and the capital subsidization, but according to the State Bank, although the real estate prices have go down, they have still turned around the value axis and needed to develop more slowly and directly towards stability. It is forecasted to have a competition wave in the reduction of bank interest rates in the near future.

Hunting for buyers Lao Dong – 14 Nov, 2008

When Ho Chi Minh City real estate market enters the fever, many people have had to scramble for apartment purchases. And then, transferring the contracts of apartment sale & purchase also earns from several thousands to tens thousands of USD. Many investors flock into mortgaging their assets to trade in real estate. Until now, the rule and order of supply and demand on the real estate market is being reestablished: the sellers seek the buyers. The investors have been looking for many ways to sell goods, from promotions to discounts. The simple ways are applying the program of “buy apartment, get LCD” or drawing the winners of motorbikes, overseas tours, etc. More complicated ways are supporting bank interest rates, adding more options, etc. In addition, the investment companies are studying to adjust the apartment prices more reasonably to improve the output. The level of price adjustment has been calculated based on the price decrease of some key construction material products such as iron and steel, cement, etc. According to some enterprises, to exist in the frozen market situation, enterprises have to aim at those who have real housing demands. However, these people consider and make careful comparison when buying houses, unlike those who buy houses to invest. As a result, they have to apply many promotion programs to attract customers. Once the order on the real estate market is reestablished, the biggest benefit for customers is that they have been returned their important position, that is, they have right to choose. In addition, the prices of the new ground bases and apartment buildings on the market have been adjusted to the level at which the investors cannot make any more adjustment.


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REAL ESTATE FOREIGN INVETSMENT

Completing documents of 8 billion USD project in Quang Nam TheSaiGonTimes – 12 Nov, 2008

The construction project of Dragon Beach ecotourism zone with the total estimated investment of 8 billion USD in Quang Nam has continued to complete the documents after receiving the feedback from the authorized departments and branches. The project is invested by Dragon Beach Company (the joint-venture between 2 American companies are Global C & D Inc. and Tano Capital, LLC). The project is expected to be constructed on a site of 400 hectares in Dien Duong commune, Dien Ban suburban district, including the items such as hotels, resorts, international fair centers, entertainment areas with many games & prizes for foreign visitors.

Total FDI in Viet Nam until October, 2008 Source: General Statistics Office

Until October, 2008, the whole country had 953 newly licensed FDI projects with a total investment of over 58 billion USD.

VIETNAM IN THE WORLD Vietnam ranked 3rd in attracting Asian businessmen Kinh Te Do Thi – 14 Nov, 2008

According to the documents announced by Asia Business Council (ABC), Vietnam has been ranked third, before USA and only behind China and India in attracting Asian businessmen. In 2006, nearly 80% of the consulted businessmen stated that they invested in the Chinese market. But until 2007, this percentage has decreased by 64% and it has been only 61% in 2008. Conversely, the number of Asian businessmen investing in Vietnam in 2008 has increased by 28% as compared to 2007. ABC’s businessmen have explained that Vietnam and India have still maintained the attractively cheap salaries. In addition, after joining WTO in 2007, the Vietnamese economy has been much more open. Asia Business Council, established in 2001, locates the headquarters in Hong Kong and gathers nearly 70 businessmen representing for the industrial and commercial companies that mainly operate in Asia. Although ABC is an unofficial organization, the ideas that it has offered have drawn the considerable attention from businessmen.

REAL ESTATE AGENTS

Adding a 16,000 m2 office area for rent in the North of Ha Noi Ha Noi Moi – 10 Nov, 2008

CB Richard Ellis Vietnam, the exclusive marketing agent of Plaschem Plaza project has shown that Plaschem Plaza office tower on Nguyen Van Cu street, Long Bien district, Ha Noi has finished the phase of building ridge and been completing the final works. The Plaschem Plaza is 16 storeys high with an area of 16,000 m2 for lease. Currently, the rent of the office is expected to be about 25 USD/m2 (including service tax).

VinaCapital establishes one more real estate fund TheSaiGonTimes – 11 Nov, 2008

VinaCapital Group plans to raise from 300 – 500 million USD to establish one more new fund, focusing on the real estate field called VinaLand Partners which is expected to be opened in the early 2009. The new fund will follow a limited model of shareholders, focusing on investing in the real estate projects. This fund will not be listed on the stock market. Vinaland Partners will not invest in the “hot” fields such as high-class apartments or offices because this market is leveling off. Instead of this, it will invest in the projects that are easy to develop and in high demand of the market such as high-class hotels, resorts, etc.

Eden Real introduces new services Thanh Nien – 11 Nov, 2008

Eden Real Estate One-Member Co. Ltd (Eden Real) has opened the operation management services for the projects of apartment buildings, offices, trade centers in order to increase the life expectancy as well as the value of real estate, meeting the demands of the customers who are the residents of high-rise apartments. This helps increase the brand name value of the projects and investors. The management services of Eden Real also aim at reducing the unnecessary operation costs, creating the advantages in competing with other high-rise apartments and limiting the complaints about the residence in the apartment buildings.

DETECH Land opens its real estate transaction center Kinh Te Do Thi – 12 Nov, 2008

DETECH Land Real Estate JSC (DETECH Land) has carried out upgrading and improving the real estate transaction center located at 107 Nguyen Phong Sac street, Cau Giay district into the standard DETECH Land real estate transaction center with the professional support of and Housing and Real Estate Market Management Bureau (Ministry of Construction). It is expected to be opened on November 14th, 2008. This will be the real estate transaction center with a highly professional scope and level, focusing on the service networks of buying, selling, leasing and leasing-to-lease in urban areas, residential areas, trade centers, etc. Meanwhile, it also supports the legal services relevant to real estate.

Opening Samland real estate transaction center. VietRees – 13 Nov, 2008

Sacom Real Estate JSC (Sacom Group) official opened Samland real estate transaction center at 61 Nguyen Huu Canh street, ward 22, Binh Thanh district, Ho Chi Minh city on November 10th 2008. The main works are introducing the projects invested by the company and seeking the opportunities for cooperation, joint venture and investment association with the domestic and overseas enterprises. In addition, the transaction center also serves the demands in terms of real estate business, consigning, assessment, etc.


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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 SacomReal - www.sacomreal.com Tan Dien - www.tandien.com.vn

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

Other cities Dieu Hien - www.dieuhien.com.vn Thien Loc - www.thienlocnhadat.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 Hop Nhat - www.uniland.com.vn Indochina Land - www.indochinacapital.com Long Gia Khang - www.longgiakhang.com Savills Viet Nam - www.savills.com.vn Vina Capital - www.vinacapital.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 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 Noi - www.kientruchn.com

Other Countries Architects 61, Sing - www.a61.com.sg DP Architects, Sing - www.dpa.com.sg SWA, USA - www.swavietnam.com Ong&Ong, Sing - www.ong-ong.com RSP Vietnam, Sing - www.resp.com.sg Surbana Vietnam, Sing - www.surbana.com


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REAL ESTATE PROJECT AND PRICES

The largest construction project in Hai Phong SGGP – 08 Nov, 2008

Hai Phong city has prepared the final conditions to start the construction of the urban complex project and the industrial zone in the Northern of Cam River in 2009 in Thuy Nguyen suburban district. The project is invested by Vietnam – Singapore industrial zone and urban development SJC. A 1,600-hectares area and an investment of 1 billion USD are used for constructing the infrastructure system of the industrial zones, urban areas and the completed services at the communes along the North of Cam River. The first phase is expected to be completed in 2015.

Investing in retail industry in Da Nang Tuoi Tre – 13 Nov, 2008

The People's Committee of Da Nang city has licensed Bai Tho SJC (Bai Tho Group) to invest 20 billion VND in renovating and completing the area A - Da Nang trade and supermarket center in order that this project can be put into operation in January 2009. With an area of 14,000 m2, the Da Nang trade and supermarket center will plan approximately 150 kiosks and the complexes in order to operate the services of eating and drinking, entertainment, etc.

One more large-scale project in Can Tho VietRees – 14 Nov, 2008

The trade – service – urban area on Nguyen Van Cu street (from the Rach Ngong bridge to provincial road 923), Can Tho city has just been ratified by the People's Committee of Can Tho city. The service-commerce development is built on a site of 73 hectares, including a system of commercial buildings, high-class apartments, offices for lease, supermarkets, etc.

In general, the price of high-class apartments in Ho Chi Minh City have tended to keep going down after the slight increase in August Edited by VietRees – Nov, 2008

Announced prominent real estate developments during the last 2 weeks*

Week 1, October 2008 Week 2, November 2008

Ho Chi Minh City Apartment building - offices at Binh Quoi (Binh Thanh) Apartment building at Phu Thuan Ward (Dist.7)

Other Areas Thanh Nien Detesco office building (Hanoi) The Oil & Gas - Finance Trade Center (Da Nang) The urban area of Gia Hung Company (KonTum) The tourism site of Sai Gon-Tay Nguyen Co. (KonTum)

Industrial - urban area North of Cam river (Hai Phong) Complex on Nguyen Van Cu Street (Can Tho)

Approved prominent real estate developments in HCM City*

October November

Housing, apartment, residential area Apartment building No.1 – No.31 Calmette Street (Dist.1) Resettlement area at Phu My Ward (Dist.7) An Phu Ward residential area (Dist.2) Housing area at Nhon Duc Province (Nha Be) Housing area at Dong Hung Thuan Ward (Dist.12)

Apartment building - offices at Binh Quoi (Binh Thanh) Apartment building at Phu Thuan Ward (Dist.7) Apartment building at Thao Dien Ward (Dist. 2)

Office, commercial Complex of Vietnam – Japan cultural park (Dist.2)

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

Cantavil, Dist.2 * 150m2 – 2,450 USD/m2

V- star, Dist.7 * 119m2 – 20 million VND/m2

Sky Garden , Dist.7 * 68.66m2 - 26.9 million VND/m2

* 88m2 – 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 * 91m2 – 23 million VND/m2 * 114m2 – 25 million VND/m2

The Everich, Dist.11 * 115m2 – 1,700 USD/m2 * 161m2 – 1,900 USD/m2

Preche, Dist.2 * 154.56m2 – 2,560 USD/m2

Panorama, Dist.7 * 138m2 – 37.6million VND/m2


Saigon Pearl, B.Thanh * 135m2 – 2,450 USD/m2

* 141m2 – 2,300 USD/m2

The Vista, Dist.2 * 101m2 – 1,700 USD/m2 * 142.2m2 – 2,180 USD/m2

New SaiGon, Nha Be * 100m2 – 20 million VND/m2


The Manor, B.Thanh * 86m2 – 2,530 USD/m2

* 156.15m2 – 2,800 USD/m2

Dist. Area (m2)

Price (million VND/m2) +/-

Apartment building – HCMC The Avalon 1 104 86.4 The Lancaster 1 165 75.2 + B27 2 62 13.5 Binh Minh 2 109 17 + Orient Apartment 4 72.72 28 - Hung Vuong Plaza 5 121 27 + An Phu 6 83 15 Phu Loi 1 8 70 12.6 Hoang Thap – Trung Son BC 97.5 18.5 The Mansion BC 84 13.5 Phu My Thuan NB 95.6 9.1 + Phuc Yen TB 77 13.7 - SunView TD 73.5 10.5 Khang Phu TP 79 13.5 - Development land lots – HCMC An Phu – An Khanh 2 200 26 + An Phu Hung 7 110.2 30 + Him Lam 8 95 10.5 Hung Phu 9 180 7 Long Thanh My 9 100 7 Hai Yen BC 100 8.2 Lang Viet Kieu Phong Phu BC 140 16 Hong Linh NB 251 6.5

Phu Xuan – Van Phat Hung NB 132 8 - Apartment building - Ha Noi M5 BD 149 30 Dich Vong CG 123 21.5 + Trung Hoa – Nhan Chinh CG 75 22.5 - Trung Yen CG 134.5 25 - Thai Thinh DD 146 25 - My Dinh 1 TL 124 18.5 + Nang Huong TX 68 13.8 + Development land lots – Other provinces

Bau Bang High Land Park BD 450 25 Hiep Thanh 3 BD 140 2.8 My Phuoc 3 BD 300 1.28 - Khang Linh BR-VT 87.5 7.5 Wind Hill BR-VT 180 4.2 HUD DNI 232 2 - Licogi DNI 144 2.5

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

Social welfare houses for worker VietRees

* Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1, Linh Trung Ward, Thu Duc Dist, HCMC. * Hung Vuong JSC has just put a 5-storey apartment building into use for cadres and workers. The company continues to petition Tien Giang Provincial People’s Committee to grant a 5.000m2 land area to construct more apartment buildings for workers with an investment of 100 billions VND. * Saigon Paper JSC has put an apartment building into use for workers at My Xuan Commune, Tan Thanh suburban district, Ba Ria - Vung Tau province. The stage 2 of the apartment building is about to be implemented with a scale of 8 storey. * Morning of August 28th, 2008, the Ministry of Construction has signed a memorandum for the cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine. * Ha Noi Construction Investment JSC (Hancic) has finished 4/10 units of the 5-storey house which belongs to the housing project for workers at Kim Chung Commune (Dong Anh). * Construction and Import-Export JSC (Vinaconex) has transferred and put into use 4 blocks of houses among the total 16 blocks of the housing project for the workers at Thang Long industrial zone. * The housing area of 7,000 m2 (380 rooms) for 1,500 workers of Dong Quang Knit Limited Company at Hai Son industrial cluster (Duc Hoa Ha commune, Duc Hoa suburban dist., Long An province) has just been put into use. The total investment cost of this housing area is 20 billion VND. (02/10/2008) * The 4-storey apartment building at cluster 5, ward 8, Vinh Long town that serves the cadres, employees, professional serviceman and etc has been ratified by Vinh Long Provincial People's Committee with a total investment of over 37 billion VND. (03/10/2008)

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. * People’s Committee of Binh Chanh has just cooperated with Hung Vuong university Investment & Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district. * People’s Committee of HCM City has just licensed Cho Lon Real Estate JSC to invest in the construction of the apartment building at No. 99 Ben Binh Dong, ward 11, district 8 in order to make the house reserve at the social welfare housing program. * People’s Committee of HCM City has promulgated the decision about reclaiming the land areas at Phuoc Kien, Nhon Duc and Phuoc Loc communes, Nha Be suburban district for the construction of the resettlement area in order to serve the project of Nhon Duc - Phuoc Kien new urban area. * The HCM City Union of Housing Co-operatives has prepared to commence the construction of Thanh Loc apartment building with 238 apartments on a site of 6.600 m2 in District 12. The Union intends to construct another apartment building with over 200 apartments at Truong Tho ward, Thu Duc district. * HCMC People’s Committee has ratified the planning of Binh Khanh residential area (Dist.2) which is built on a site of 384,019 m2 to serve the resettlement of the locals in Thu Thiem new urban area. * Dat Lanh has cooperated with Truong Son Vanguard Youth General Squad to build apartments for low-income people at Dist.12 * Go Vap People’s Committee and Go Vap Public Benefit Service Co. have bought back the house reserve belonging to Phu Gia Hung high-end apartments, Duong Quang Ham Street, Ward 15, Go Vap Dist. and Dong Hung Thuan 1, 2 apartment buildings, Dist. 12 to serve the resettlement of the locals at Tham Luong project - Ben Cat - Nuoc Len ditch. * Approximately 184,000 apartments belonging to the investment program in the construction of the social welfare houses in the stage of 2009 – 2015 with the total investment of about 49,000 billion VND have been submitted to the government for approval. (30/09/2008) * 800 social welfare houses for lease - lease to purchase will be built at 19A and 21A plots, Viet Hung urban area in 2009, which have been ratified by The People’s Committee of Ha Noi City. (16/10/2008) * 462 units of Khang Gia 3 apartment building (Go Vap Dist.) invested by Khang Gia Real Estate Investment – Development JSC will be used for the resettlement demands. (27/10/2008)

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.


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REAL ESTATE LEGISLATION

Announcing policy before reclaiming land VietRees – 14 Nov, 2008

Ha Noi city People's Committee has just promulgated the new regulations on land reclamation, handover, leasing and transferring the land use purposes to invest in the housing projects at the rural residential areas. Accordingly, before reclaiming the land, the People’s Committee of the district – suburban district has taken responsibilities for directing and popularizing the policy, the regulations on land reclamation, compensation, support and resettlement. The People's Committees at the commune level take the responsibility for publicizing the documents on the policy of land reclamation at the headquarters of the People's Committees and the residential areas whose land is reclaimed on the radio communication system at the commune level. According to the new regulations, before announcing the land reclamation to the people, the overall project on compensation, support and resettlement must be ratified. After 20 days from the date of receiving the reclamation information, the Department of Natural Resources - Environment has submitted the People's Committee to decision on land reclamation, handover and leasing.

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

General trends on HCM market The transaction situation of apartments, townhouses and project land in October has continued to go down compared to September and the previous months, the offered prices for sale have fallen after leveling off in October. The decrease in the land prices (- 5%) is somewhat higher than that of apartment prices (-1%, -2%) compared to the previous month. Generally, regarding the market situation in the third quarter and the fourth quarter, the prices seem more stable but the rate of successful transactions has still not seen any sign of prosperity and appeared to be worse to some extent. The number of successful transactions has been on the downturn. According to the surveys of VietRees, in many trading floors (transformed from the previous center transaction) and the newly born trading floors, the transactions have almost mainly focused on properties with low values such as projects of apartments and ground bases in the areas around HCMC. The townhouse transactions in the existing urban area have also significantly decreased as compared to many previous months due to the difficult situation of the real estate field and the whole economy. According to the forecasts of VietRees, many transaction centers will close down from now until late 2008 and early 2009.

Apartment market The supply of apartments belonging to the average and low segment is quite limited, so the market of this segment has also not seen any movement compared to the previous month. The successful apartment transactions do mainly belong to this segment. The investors are beginning to implement the new apartment projects of the average low segment, but in at least 2 years, the new market will have more supplies of the new apartments of this type. According to VietRees, the construction material prices in the past 2 months have declined, which has created favorable conditions for the investors to implement or speed up the construction progress of the projects, especially for this segment. The high-grade apartment prices have slightly decreased in the past month. According to VietRees, the prices have fallen down by approximately 2% as compared with September 2008. The domestic customers of this segment are gradually scaling down. The investors are looking for the new directions aiming at the Vietnamese overseas who are in need of buying houses in Vietnam. However, according to VietRees, there are many difficulties in approaching as well as successfully trading with this group of customers in the short term (1 - 2 years).

The market of project land plots According to VietRees, the land market has continued to decline as compared with September, 2008 and the average decrease is recorded at -5%. The price fluctuations are explained that the project land has a special connection with the ups and downs of the stock market and the interest of the investors when most of the project land is being held by the investors and there are few of the people who have real demands. Similarly to September, the successful transactions of the project land are much lower than that of the apartments which is currently quite limited.


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CONSTRUCTION MATERIAL MARKET

Construction material prices continue to slide down, construction situation still gloomy Edited by VietRees

At this same time every year, the construction material prices were often high because the construction season began. However, currently, this market has been rather gloomy. The construction material prices have plummeted. According to the store owners in HCMC, the construction material prices have been sliding down. In which, the largest decreases have happened to the construction steel of all types. The prices of rolled steel and bar steel have now declined by over 11 million VND/ton. The retail prices of rolled steel 6 - 8 have slid a further 4 million VND, down to 10 million VND/ton. The prices of streaked steel 12 - 16 have ranged from 110,000 - 199,000 VND/bar, fallen by 31,000 - 56,000 VND/bar. According to Vietnam Steel Association’s estimation, the total volume of consumed steel on the market was 120,000 tons in October 2008, which is the fourth month of decrease since the end of the second quarter. The prices of steel and iron have decreased due to the dramatical price reduction in the world. In addition, the consumption has been slow; many producers have to reduce the selling prices to preserve the capital. Not only steel, and iron but also construction materials of all types such as brick, sand, stone have also plunged. Hollow brick is only 500 VND/brick, the price of sand and stone is only 200,000 VND/truck and the cement prices are only about 70,000 VND/sack, decreasing by 20,000 VND. According to a contractor, as compared with 2007, the construction season of this year has seen the signs of cooling down. In addition, the labor cost has increased by 40% as compared to the last year. This is the reason that has made many people who have the demands for house construction hesitantand are waiting for further price decreases. Moreover, because the purchasing power has now been so weak, the real estate companies have not yet developed new projects.

STOCK MARKET

Prospering along with US stock market, VN-Index adds 5.43 points and HASTC-Index ups 2.43 points Edited by VietRees Chart Source: Vietstock Up to date: 14 Nov, 2008

Before the opening time of the morning session 14th, Nov, the positive signals of US stock market has made the transaction situation more evenful. In the first order-matching phase, VN-Index has added 11.51 points, reaching 357.75 points. Until the consecutive order-matching phase, although a large volume of selling orders was launched, VN-Index has still kept the decrease of 6.38 points, up to 352.62 points. The total trading volume has reached nearly 11.5 million units. Ending the session, VN-Index has added a total of 5.83 points (or 1.84% increase) to close at 352.07 points. The total trading volume of the whole market has reached 14.1 million units worth over 447.5 billion VND. In sum, after one trading week, with 3 upward sessions and 2 downward sessions, VN-Index has lost 13.9 points (3.8%) as compared to the last week. At Hanoi bourse, HASTC-Index has come back on the upturn when adding 2.43 points, up tp 113.07 points. The total trading volume of the whole market has reached nearly 8 million units worth over 212.76 billion VND. HASTC-Index has also seen 3 upward sessions and 2 downward sessions after one trading week. As compared to the last week, HASTC-Index has lost 3.29 points (down from 116.36 points to 113.07 points).