CBVN Newsletter 15_En

8/6/2019 CBVN Newsletter 15_En

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NEWSLETTER The Real Estate News & Information Source

www.coldwellbankervn.com

We never stop moving®

this issue

June 2011 – Issue 15Real Estate Credit: The Current Situation, Effects and Out-

look

“The Government having shifted

from economic growth focus to

inflation curb over three months

has not cooled consumer price

index (CPI) surge down ............ P.2

Hanoi: The Intense Race to Gain Market Share

“Inflation control through

monetary tightening policy

has led the property mar-

ket to many difficult situa-

tions. However, Hanoi has

always been the most at-tractive place to investors because of its capital location and

sustainable profit making...”...................................... P. 7

Property Ownership of Foreigners in

Southeast Asia

“Foreigners who come to work or enjoy

their life in Southeast Asia are having

special interests on owning a house in-stead of leasing”............................. P.8

Vietnam Economic Overview ...... P.2

Featured News ............................ P.7

Real Estate Markets .................... P.1

Residential for sales ................. P.1

Hotel ........................................ P.1

New projects ............................ P.1

Legal Updates ............................. P.1



Vietnam Economic Overview

THE CURRENT REAL ESTATE CREDIT

The Government having shifted from economic growth focus

to inflation curb over three months has not cooled consumerprice index (CPI) surge down. According to the latest report

from HSBC, CPI in May 2011 rises by 2.1% against that in April

2011 and by 19.8% over the same period of last year. VND

deposit and lending interest rates also follow the trend to

climb up in order to curb current escalating inflation. The

yearly deposit rates in May shoot up to over 17% and lending

rate for manufacturing and non-manufacturing sectors head-

ing to 20%-22% and 23%-25%, which strongly hits real estate

market. As early March 2011, the State Bank of Vietnam (SBV)

issued provision in which requires credit institutions to applynon-manufacturing outstanding loans ratio not exceeding 22%

from now until 30th

June, 2011 and 16% from now until 31th

December, 2012. As the capital for property industry is tradi-

tionally funded from banking system, the release of monetary

squeeze policy will un-benefit the market as well as its partici-

pants.

THE EFFECTS ON PROJECT INVESTORS The investors whose capital structures mainly loan from credit

institutions and customers suffer the most from the impacts

of monetary squeeze policy. They might be afraid to take risks

or incapable of approaching bank loans due to towering inter-

est rates over enterprise capacity for profit gain while banks,

in addition, are trying to meet the capped ratio of 22% at end

of June. Moreover, the capital mobilization capacity of individ-

ual investors has also been unfeasible since those investors

have alternately left this sector to seek other safer and less

risky funds with higher liquidity.

As a result, discount is considered one of the effective ends

for purchase trigger, capable of raising sales volume, improv-

ing cash flow and paying due debts for banks. For instance,

Kim Chung - Di Trach Project located in Hanoi lowered its

prices by approximately USD952/sqm. The Gelemexico Project

of Gelemexico Group in Le Trong Tan Street, Hanoi also wit-

nessed a similar trend, with its prices decreasing by roughly

USD476/sqm, depending on locations. In Ho Chi Minh City

(HCMC), a number of apartment prices have directly or indi-rectly shrunk and quietly traded. For example, PetroVietnam

Landmark Apartments were advertised with a price tag of

USD967/sqm while a number of real estate trading floors of-

fered USD948/sqm on 18th

May, 2011 .

Real Estate Credit: The Current Situation, Effects and Outlook

“As early March 2011, the State Bank of Vietnam (SBV) issued provision in which requires credit institutions to apply

non-manufacturing outstanding loans ratio not exceeding 22% from now until 30th

June, 2011 and 16% from now

until 31th December, 2012 .” Exchange rate: USD 1 = VND 21,000




In HCMC, Hydraulic Con-

struction Corporation

No.4 transferred The

Thuy Loi 4 Apartment

Project which is located

in Binh Thanh District to

Hydraulic Real Estate

Investment No.4A Com-

pany. Khang An Real Es-

tate Investment Joint

Stock Company (JSC) (KAC) is working on legal procedures to

sell Tan Tao A Residential Project in Binh Tan for Da Cin Hold-

ings Pte - Singapore. Van Phat Hung JSC (VPH) also said it

would sell off the land in small projects to improve its cash

flow. Besides, the super promotion to be a pioneer in the

market is launched as "Leasehold in two years" of the No-

valand ‘Sunrise City Project located on Nguyen Huu Tho

Street, District 7, HCMC. For The Hoang Kim The Gia Project in

Binh Tan District, HCMC, if a group of more than five buyers

register to purchase the apartments, investors will enjoy a

discount of USD4,762 for each apartment. In Ha Noi, Archi-

Land will offer a complete furniture package of USD23,800 for

customers who sign up to buy Villas Green 4 in Yen Bai, Ba Vi

on 11th

June 2011.

THE EFFECTS ON INDIVIDUAL SPECULATORS, INVESTORS

AND REAL HOME BUYERS

For individual speculators and investors who have contributed

capital to real estate projects, especially in high-end segment,

there was a tendency of withdrawing from the property mar-

ket due to high lending rates. Most of them, especially those

from the South, previously used leverage about 60% -70% to

participate in the market. Existing obstacles in approaching

property lending force them to sell out their products without

or with a little profit since they fail for payment of next pro-

ject or high interest rates. This has put the developers in a

dilemma as they cannot launch their sales in the primary mar-

ket on track as scheduled since there was an oversupply of

property stocks in the secondary market at a reasonable price

relative to those from primary one. Some estimated a mid-

end apartment is priced at USD571,429; when they sell it with

loaded price as 10% of initial capital contribution (30% of total

contract value), they will lose only USD1,905. In contrast, if

they keep the apartment and lend 70% of the remaining con-

tract value, payable interest value is up to USD9,524 per year

at the current rate.

THE OUTLOOK

The 2011 outlook for property lending is still gloomy as infla-

tionary pressure on the economy still exists. The Government

is putting a top priority on combating inflation rather than

focusing on economic growth. HSBC forecasts that the infla-

tion may accelerate to 20% in coming months. The SBV is

likely to maintain their tight monetary policy if macroeco-

nomic fundamentals still turn unfavorable for the rest of this

year. Figures from the SBV indicate that lending given to non-

manufacturing sectors accounted for 16.95% of the total lend-

ing in May 2011. Therefore, property market may still suffer

from other tightening policies until year end as lending rates

continue to be lowered to the target number of 16% at the

end of 2011. Vietnam property market may only witness posi-

tive signs in the middle of 2012 when inflation pressures are

eased and macroeconomics is better.

Real Estate Credit: The Current Situation, Effects and Outlook





Highlights


Week 2nd

– 7th

May

USD plummeted. Fed keep interest rates low, continuing buyin

$600 billion bonds to stimulate the economic growth.

Week 9th

– 14th

May

Forex rates declined in 5 consecutive days as SBV adjusted thUSD average inter-bank exchange rate.

Selling prices of commercial banks are continually lower than th

average inter-bank rates; bid/ask prices quoted by banks we

VND20,520-20,620/USD.

Week 16th

– 21st

May

USD selling prices get VND20,880/USD - interbank exchang

rates unchanged at VND20,673/USD on 5 days.

Forex market keeps stable; USD accelerating early 16th

Ma

Floor - ceiling rates of the commercial banks: VND20,466

20,880/USD.

Week 23th

– 28th

May

The official exchange rate touched the bottom as VND20,643

USD dated 28th

May. USD selling prices of banks are alway

VND145-250/USD lower than the ceiling rates.

Week 30th

to 31st

May

The State Bank announces the average interbank exchange rat

unchanged at VND20,643/USD against 30th May, the lowest lev

since the USD price adjustment on 11th

Feb.

Ceiling rates of commercial banks stay at VND20,850/USD, b

selling prices of other banks are VND240 lower than the ceilin

price.

Forex Market Forex Market

Source: Collection



Highlights


Source: Collection

Week 2nd

– 8th

May

World gold prices: down 4.1% at $1,491.6/oz due to profit takin

and USD increase.

Domestic gold prices decrease by VND1 million/tael from VND38

million/tael on 4th

May down to VND37.5 million/tael.

Week 9th

– 15th

May

Local gold: VND37.44 million/tael, a slight decline from previou

week as over VND80,000/tael.

World gold prices range from $1482 - 1525/oz. They bounce bac

at $1,495.1/oz, equal to the opening price early last week.

Week 16th

– 22nd

May

Domestic gold: VND37.51million/tael, sharply increased from pr

vious weekend as VND70,000/tael. The news of gold mixed wit

vonfram makes the turnover fall down.

World gold markets on Monday and Tuesday drop below $1,490

oz, the lowest in the past 5 weeks due to information of Greece

unsolved public debt in addition to IMF General Director arreste

before the EU conference.

Week 23rd

-29th

May

Local market seems bleak despite gold prices increasing b

VND200,000/tael, at VND37.71million/tael.

Week 30th

-31st

May On the morning of 31

stMay, the domestic gold shoot up t

VND37.82 million/tael, a VND100,000/tael increase compared t

30th

May. Despite the peak prices during last three weeks, the loc

gold prices are still lower than the converted world gold price t

over VND500,000/tael.

Gold Market Gold Market



Featured News

Hanoi: The Intense Race to Gain Market

The first quarter of 2011 is a quiet time for Hanoi real estate mar-

ket, due to the fluctuation of exchange rates and interest rates.

Inflation control

through monetary

tightening policy

has led the prop-

erty market to

many difficult situa-

tions.

However, Hanoi has

always been the most attractive place to investors because of its

capital location and sustainable profit making. The problem is,

this market still be dominated by psychological factors such as

rumors and manipulators. Furthermore, people always want to

live in the inner city, for their own good working conditions and

their children’s good education environment.

Lately, the supply has mainly focused on Ha Dong, Tu Liem and

Thanh Xuan districts. In particular, the high-end segment made

up nearly 35% of the new supply, about 2,800 apartments out of

8,000 new units. The total supply now may reach to 20,000 apart-

ments while the sale is rather low compared to the fourth quar-

ter of 2010.

In the mid and low end segments, the main supply was on west-

ern Hanoi, such as Hoai Duc, Tu Liem, Cau Giay, Thanh Xuan and

Ha Dong. These segments have a large proportion in the real es-

tate market and tend to rise sharply in 2011 – 2014.

The quiet market in this time is not only an opportunity to filter

out weak and unwell-prepared companies but also a chance to

help the market grow up strongly and explicitly. At the same

time, the trend of M&A (mergers and acquisitions) will beco

more popular among real estate companies for overcoming the

financial problems. In addition, the healthy competitions in t

period are also bringing more additional benefits to the custo

ers and pushing the property price back to its true value. (rea

its nearest point of value).

So far, the homebuyers are receiving more benefits compared

the developers.

About Developers:

With many pressures from the capitals and competitors, th

have to minimize the costs as well as implement more prom

tions such as:

Create more unique products and develop more value for cu

tomers.

Increase the Research and Development (R&D) activities in

order to make the breakthrough for their products

Invest more on the marketing and sales activities

Understand their customers to build effective customer serv

programs

About Clients:

The demand of hi-end apartments is still high but people ten

to wait for lower prices. More buyers with real needs, fewer

speculators are the features of this current market.

Tendency of real estate investment is still popular because th

is considered a safe place in this turbulent circumstance. More benefits were provided and more chances to buy prop

ties with their true prices.

Based on the market research and analysis data, particularly

the forecasting supply figure on 2011 – 2014, Coldwell Banke

market researchers have predicted a large potential and attr

tive market in Hanoi in the upcoming time.

“ Inflation control through monetary tightening policy has led the property market to many difficult situations. However,

Hanoi has always been the most attractive place to investors because of its capital location and sustainable profit making



Featured News

Property Ownership of Foreigners in Southeast Asia

Thailand

First, foreigners should understand that they could not have

the right to own freehold land in Thailand. There are a few

exceptions as below:

Leasehold : Thailand lease

laws allow foreigners to

have a 30-year maximum

of lease period, and the

possibility to renew it for

30-year additional time.

49% of the total in the

building or development:

Foreigners are also al-

lowed to own condominiums up to this percentage.

Buy land : This only applies for the Thailand registered compa-

nies with majority Thai ownership.

Own or lease land to build factory : Foreign companies with

BOI (Board Of Investment) privileges could have this right.

Buy and own land for residential purposes: If the foreigners

would invest 40 million bath for five consecutive years, they

could have a limited amount of land to use for residential pur-

poses.

Cambodia

The Cambodia land law has followed Thai land law in recent

years, although they would never admit it. Full ownership of

land in Cambodia is prohibited likes in Thailand. Some open

conditions for foreigners to control or own lands are some-

how similar to Thailand:

Leasehold : Cambodia allows a longer period, up to 99-year

maximum lease period.

About condominiums: foreigners are able to own this property

type, but the specific conditions are under construction.

Buy land : The same with Thai, Cambodia registered compa-

nies with majority Cambodian ownership are able to buy land

in Cambodia.

Own or lease land to build factory : Those companies who

have The Cambodia Investment Board (CIB) and the Cambodia

Development Council (CDC) privileges or sponsors could have

this right.

The most special thing is foreigner could become a Cambo-

dian Citizen by paying $50,000 to the Government as a dona-

tion!

“Foreigners who come to work or enjoy their life in Southeast Asia are having special interests on owning a house

instead of leasing. Will it be an apartment, a condominium or an individual house, foreigners should be aware of

some important points of the laws as well as procedures. Here are some compare-highlights for buying a house in

the most four noticeable countries in this region:



Featured News

Property Ownership of Foreigners in Southeast Asia

Laos

Laos citizens are having the land use ownership rights but the

foreigners are prohibited. They can only lease land with the

average period of 30 years. The term of lease could also be

extended on a case-by-case basis.

For building residences, 30 years is the maximum period with

possibility of extension. For investment and business activities,

50 years is maxima with a possible extension. If land lease is a

part of a specific economic zone, foreigners will have maxi-

mum 75 years to lease it. Finally, for diplomatic purposes and

international organizations, 99 years is the maximum time or

the lease time could be based on the agreements between the

two governments.

Vietnam

All Vietnam citizens receive the land-use rights instead of land

ownership. For foreigners, Vietnam is currently pilot a bill to

help them own a house in Vietnam. Under this pilot Decision,

individuals and organizations that working in Vietnam could

have the right to buy and own apartments in housing develop-

ment condominium projects. The maximum lease time is 50

years for individuals and the same period written the certifi-

cate of investment for foreign organizations.

There are 5 objects could have the right to buy and owning

houses in Vietnam, including:

Individuals with direct investment in Vietnam;

Individuals who contribute to Viet Nam country and were

awarded medals by the President of the Socialist Republic of

Vietnam;

Foreign individuals have exceptional contributed to the

country, base on the Prime Minister's decision;

Individuals working in the field of socio-economic field, BA

degree or equivalent and above, who have special knowl-

edge, skills, that Vietnam needs;

Individual married to Vietnamese; FDI Companies have in-

vested in Vietnam under the law on investment and do not

have property trade function, if they have the demand of housing for their employees.



Real Estate Market Overview

Residential for Sales & Serviced Apartments

Ho Chi Minh City

Residential for sales: Changes in price but not equal; Mainly

concentrated on the East of the City (District 2, District 9, Thu

Duc Dist).

Low-end and mid-end segments preferred with many new pro-

jects launched along with big exciting promotions, meeting the

real housing needs of prospects.

7 projects (for low and mid income people) are offered of sales,

adding more 1,563 apartments into the market; These projects

located mainly in suburb districts such as Tan Phu, Binh Tan,

Thu Duc, Binh Chanh.

Average price ranges at VND11-15 million/sqm.

Future outstanding projects: Azure City (Dist.9; V_Center (No

Trang Long st.); CT Plaza (Le Van Sy, Dist. 3); Sovrano Plaza (Dist. 8);

La Bonita (Dist. 8); and project of 974 apartments (District 2) jointly invested by Khang Dien and Capital Land. 6 new pro-

jects accounted for a total area of 147,000sqm, about 15-30 stories.

Thu Thiem Tunnel is going to be completed (September 2011), connecting Dist. 1 to Dist. 2. Accordingly, the surrounding

projects had increased 30-40%. Front land prices in Hanoi Highway go up to VND70-80 million/sqm now; projected land of

An Phu-An Khanh also increased strongly.

Several apartment projects decrease prices to attract buyers: Petrovietnam Landmark Tower: selling price is only from

VND20 million/sqm.

The popular trend of investors: Affordable apartment projects.

Serviced apartment: Ho Chi Minh City now has about 3,500 apartments, mainly in District 1 & District 3. Several projects

have started in May such as CT Plaza Le Van Sy or V_Center will enrich the supply in the future.

Price ranges from $18 - $35/sqm/month depending on rank.

Rent capacity: Grade A - 86%; Grade B - 82%; Grade C got 80%,

Since many international visitors & foreign experts come Vietnam for business and working, projects with high quality and

central location will be the first choice of these customers.

Petrovietnam Landmark Tower



3-5 star Hotels


Market overview

According to figures of Ho Chi Minh City the Department of

Culture - Sports and Tourism, in Q1, HCMC welcome 900,000

international visitors, making up 60% of total tourists to Viet-

nam, a 6% increase against the same period of 2010 and gain-

ing 26% of year target.

Vietnam is considered a safe and inexpensive destination for

tourists. Besides, the weakening of Vietnam Dong plus direct

flights from Myanmar, London, Paris, Laos, Beijing to Ho Chi

Minh City attract more foreigners.

Existing supply

HCM City :

5 star hotels: over 4,160 rooms; 4-star: 1,000 rooms; 3-star:

4,330 rooms.

Room rents: 43% increase over last two quarters due to esca-

lating costs of living5-star: $190/night; 4-star: $150/night; 3-star: $93/night

The operation capacities of 3-5 star hotels are pushed to 82%,

a 7% raise from the previous quarter and 12% over the same

period last year.

Future supply

HCMC, District 1:

10 new hotels are under construction

Some new existing 3-star hotels

Some 2-star hotels being upgraded to 3-star

One 5-star hotel on Dong Khoi Street planned to be built in

2012.

Many 3-5 star hotel plans to meet the increasing demands of

tourists in addition to the trend of incorporation between

hotel and retail construction conducted by local investors.

Office construction sees slow progress but 5-star hotel build-

ing bustling such as Pullman Saigon Centre, Novotel Saigon

Centre, Le Meridien. Novotel StarCity Resort Hoi An (Quang

Nam), StarCity Hotel Halong (Quang Ninh) are expected to be

put into operation in 2011. Besides, other hotels like StarCity

Westlake Hanoi, Nha Trang and StarCity Airport Hotel will be

completed in 2012.

About 750 5-star rooms, 820 4-star rooms and 508 3-star

rooms are planned to provide to the Ho Chi Minh City market

in the period of 2011-2012. Most of these projects are being

built and nearly 83% of the total future supply are located in

CBD.

17 hotel projects will be launched in 2013 such as Majectis 5

star hotel on Dong Khoi Street facing with the front of Nguyen

Hue under expansion. Novotel Saigon Center project (Hai Ba

Trung - Nguyen Dinh Chieu) with 252 4-star rooms is jointly

invested by Que Huong Liberty JSC and Invesco. Accor Group

is the hotel manager.

Perspective of Novotel StarCity Resort



New Projects


No. Projects’ name Developer Location Description

1 High-end Complex of Of-

fice-Apartment in Thanh

Xuan District

HBI Joint

Stock Co

203 Nguyen Huy

Tuong St, Thanh

Xuan Dist, Hanoi

Total area of project is 4.2 ha, includes elemen-

tary school, houses, trading-serviced office,

apartments… with maximum 35 stories

2

Mini Apartment DG Build-

ing DG Land JSC

No.15, alley 191

Pham Van Dong St,

Xuân Dinh, Tu Liem,

Hanoi

7 stories with 30 units (35.5-50.5sqm)

Ground Breaking Ceremony opened on 15th

May.

Expected completion after 10 months

3 Dai Kim Trading- Office-

Apartment Complex

Dai Kim JSC

and Ciri Com-

pany

02 Kim Giang St,

Thanh Xuan Dist,

Hanoi

Total area is 12,500sqm, with 30 stories, 5 com-

mercial floors with facilities, expected comple-

tion in December 2013

4 Project at 9 Tran Thanh

Tong Street

9 Tran Thanh Tong

St, Hai Ba Trung

Dist, Hanoi

Project will be built on area of 11,156sqm with 9

stories and 3 basements, GFA is 71,042sqm.

5

1,000 low-income apart-

ments

Viglacera

Plots NO5B and

NO10B in Dang Xa 1

New Urban Zone,

Gia Lam Dist, Hanoi

2 buildings 12 stories which supply 946 units for

about 3,800 people. Expected completion in

Q1/2012 with total invested capital 560 billion

dong

6

1,000 low-income apart-

ments

HANCO 3

Sai Dong New Ur-

ban Zone, Long

Bien, Hanoi

2 buildings with about 140 apartments for reset-

tlement, and 10 buildings with 844 units for low-

income people, these units has area 45-70sqm/unit. Expected completion in 2014

7 IDC Port and Duy Ha

Urban Zone

Interserco and

Vinaconex

E&C

Ha Nam

Area 85,515sqm. Company invested in 4 pack-

ages: residential land, trading-serviced land,

community land, technical land



New Projects



8

Liem Chinh Urban Zone

Ha Nam Envi-

ronment & Ur-

ban Works JSC

Ha Nam

Area 85,515sqm. Company invested in 4 pack-

ages: residential land, trading-serviced land,

community land, technical land

9 Commercial center in Nam

Dinh city

Apec Nam Dinh city Project’s scale is 1.5ha, in the south of Dao River

10 Ben Rung Industrial Park

and Residential Hai Phong

Project planning is divided into 2 areas: 1,000ha

for Industrial Park and 960ha for Residential.

11

Kosy Urban Zone- Song

Cong

Kosy JSC Thai Nguyen Prov-

ince

Project has area 39ha, including 3 storied-villa on

1.7 ha; 4 storied-conjoined house on 13.7 ha,; 9

storied-commercial center & market on 0.7 ha;

the rest of area is for community works, trees,

services… Total invested capital is nearly 300

billion dong

12Hoa Son Urban Zone

MTV Lideco Co.,Ltd- Hoa Son Hoa Binh Total investment nearly 452 billion dong

13

Ana Mandara Ninh Binh

Resort

Tap Ninh village,

Gia Van com-

mune, Gia Vien

Dist, Ninh Binh

province

Total area of project is 16.2ha, located in Van

Long eco-tourist area. Ana Mandara has 2 seper-

ated areas: Resort and Entertainment Services

14

British University Vietnam

in Ecopark Urban Zone

Hung Yen prov-

ince

Expected area of project is 5.5ha for 10,000 stu-

dents; constructed expenditure for Phase 1 is $20

million, expected completion in 2013.

15 First low-income apart-

ments in Hung Yen prov-

ince

P.H Investment

Group Incorpo-

ration

Hung Yen prov-

ince

856 social apartments, supply for nearly 3,500

people, which will be completed in 2013

16

Huehomes- Truong An

Urban Zone

44 Tran Thai Tong,

Hue City

Project has area 9,000sqm, including apartment

8 stories with 84 units, 13 conjoined apartments,

9 garden-houses, 9 villas. Total invested capital is

110 billion dong, expected beginning in Septem-

ber 2011 and completion in March 2014.



New Projects


Projects’ name Developer Location Description No.

Cyan Hotel and Eco-house

Comlex

Lung Lo 5 In-

vestment and

Development

JSC

Dien Duong com-

mune, Dien Ban

Dist, Quang Nam

province

Total area 38ha including 6 main zones: hotel-

240 rooms, 44 villas 5 star standard, 100 villas

with sea-front view, 55 garden villas… Invested

capital 240 million USD, expected completion in2015.

17

Phuong Trang New Urban Da Nang Bay

Total area nearly 150ha, including villas, con-

joined house, commercial-serviced area, super-

market, park…

18

Trading-Financial Center

in the land of Nha Trang

Airport

Area 180ha of this project in total 230ha of Nha

Trang Airport will replace the area of pilot train-

ing which is moved to Ninh Trung commune,

Ninh Hoa district, Khanh Hoa province.

19

Vinpearl Luxury Resort

and Golf Course

Vinpearl Luxury Nha Trang includes 84 villas in

71,800sqm on Bai Soi. Vinpearl Golf Course has

area 182ha in Dam Gia, Hon Tre, including a 18holes golf course with international standard

and luxury villas.

20

Prince Town Binh Duong

Prince Town has scale more than 2.2ha, invested

capital 500 billion dong, expected completion

within 3 years. Project includes 129 townhouses

combined commercial purpose 100-112sqm, 3

stories and 2 fronts.

21

Ho Tram Strip Tourist

Area

Asian Coast

Development Ba Ria Vung Tau

Total invested capital $4.2 billion, area 160ha,

expected completion in 2013 22

Nam Long-Vam Co Dong

Residential Area

Nam Long In-

vestment JSC Ben Luc, Long An

Scale 335ha, including towhouse, villa, commu-

nity works, hospital, school, golf course…

23

Five Star Township

Dat Xanh Group Phuoc Ly com-

mune, Can Giuoc

district, Long An

20ha, divided into 25 lots (A-Y), 649 lands with

average 111sqm/land

24



New Projects



25

Azure City

Phu Huu ward,

Dist 9, Ho Chi

Minh City

Total area of Project is 61,307sqm; total invested

capital is 100 billion dong. Project is divided into

2 zones: villas & semi-detached townhouse; 3

blocks of apartment and 1 school.

26

V_Center

Viet Thuan

Thanh Co., Ltd

375 No Trang Long

street, ward 13,

Binh Thanh Dist,

HCMC

Project includes 27 stories and 2 basements in

total area 4,580.6sqm, there are luxury apart-

ment, commercial center, luxury restaurants

come along with perfect services and facilities,

expected completion in 2013

27

C.T Plaza C.T Group

369 Le Van Sy, Dist

3, HCMC

Total area is more than 1,400sqm, including 2

basements and 15 stories, invested capital $11

million. This project includes cinema, restaurant,

shopping mall, library, 4 star hotel.

28

Building at 2-6 Dong Khoi

2-6 Dong Khoi & 21

Ngo Duc Ke, Dist 1,HCMC

20-storied building of Commercial-Office-Hotel

has total constructed area 30,000sqm. Capital1,500 billion dong, expected beginning in 2012

and completion in 2014

29

Sovrano Plaza Hoang Quan

Nguyen Van Linh

Street, Dist 8,

HCMC

Complex of Commercial building and high-end

apartment has area 37,600sqm, 3-4 floors of

trading center, 10 blocks of 24-25 storied apart-

ments, invested capital is more than 2,000 bil-

lion dong, expected completion in May 2014

30

La Bonita Building

Thong Hiep

Company

1436 Trinh Quang

Nghi, ward 7, dist 8,

HCMC

Area 12,977.4sqm, including 2 towers 18 stories

with height 66m, 5 floors for commercial area…

31

Project of 974 apartments

Capital Land &

Khang Dien Binh Trung Dong,

Dist 2, HCMC

Area of project is more than 29,000sqm, in-

vested capital is $70 million with 70% from Capi-

tal Land and 30% from Khang Dien



Legal Updates

Updated Information and Law on Land and Real estate

In order to implement the Resolution No. 56/NQ-CP of the

Government simplifying the administrative procedures, the

Ministry of Natural Resources and Environment issued the

Circular No. 16/2011/TT-BTNMT on 20th May, 2011 (effective

from 5th July, 2011) amending and supplementing some ad-

ministrative procedures of granting land use right certificate,

home ownership and other works attached to land

(hereinafter referred to as the “Certificate”).

Thereby, instead of 50 working days as executed previously,

the duration of certificate issuance shall be shortened not

exceeding 33 working days for households, individuals, Over-

seas Vietnamese entitled to own residential houses in Viet-

nam and not exceeding 28 working days for organizations,

religious groups, foreign organizations and individuals since

the date valid dossiers are submitted on.

With regard to the whole process of certificate granting, the

Circular also regulated specific duration of administrative pro-

cedure settlement in each stage for each authority. This

makes competent authorities are initiative to carry out their

obligations transparently. Meanwhile, this also facilitate indi-

viduals and organizations follow up and check their submitted

dossiers.

Since 1st June, 2011, all contracts and transactions related to

land use rights, home ownership and other assets attached to

land shall be notarized by organizations with its functions of

notarization (Notary Public Office or Notary Office). The verifi-

cation of legitimate contracts and transactions relating to real

estate in industrial parks, economic zones, high-tech parks

remains to be implemented as prescribed by applicable laws.

New policy that may affect the psychology of real estate in-

vestors and enterprises in coming time, is the proposal on real

estate status submitted to the Governmental Office by the

Ministry of Construction. If this proposal is approved:

The investor shall have to sell finished houses to its clients,

instead of land plots.

The relevant authorities shall carry out compensation and

land clearance and then hold an auction of land funds, instead

of ownership transfer to the investors.This will change the business plans of investors, especially for

weak-financial-capacity investors in the current context of

credit squeeze.



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Documents

CBVN Newsletter 15_En