VietRees_Newsletter_56_Week1_Month11_Year08

Weekly Newsletter
A56
Vietnam Real Estate Week 1, Nov

The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month
joining to develop the newsletter VietRees, a member of

Market situation (p.2)

Real estate foreign investment (p.2)

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.9)

Construction material market last week (p.9)

Stock market last week (p.9)

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VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A56 Page 2

MARKET SITUATION

Real estate prices continue to The prices of apartments and ground base in Ho Chi Minh City have dropped by 40 - 60% compared to
the beginning of 2008. However, according to many opinions, the prices will drop further because many
decline investors cannot secure additional capital.
Thanh Nien – 04 Nov, 2008 In fact, there are many projects whose prices are assessed at the “hottest” period of the properties. As a
result, the offered prices have been very high. The readjustment will create the liquidity for the market,
stimulating the demands and creating a more reasonable price level for the market.
According to an expert, the difficulties that the real estate market has suffered from the beginning of this
year until now have still been inconsiderable as compared with the difficulties in the near future. The
maturity of the loan contracts from the banks has been often at the end of the year, while the difficulties
in capital rising and the frozen transactions still exist. This is the reason that pushes the real estate
prices down to a new bottom in a few months.
Many investors have volunteered to reduce the prices, the investors and speculators have sold off to
regain the capital, a mortgage release from the banks, etc. These signs show that the new lower price
levels will be established on the real estate market. This is also the hope of many people who have the
real housing demands and are waiting for the opportunities to buy houses at the new bottom prices.

Open door for real estate loans In the context that a series of small and medium enterprises have been short of capital and the economy
has seen the signs of deflation, the commercial bank system has had a surplus of 90,000 billion VND
Tien Phong – 04 Nov, 2008 which has been “a very big waste”. This number is considered as quot;the dead capitalquot; and the most
effective way is to reduce the loan interests so that more enterprises can approach the capital sources.
The State banks have cut the basic interest down to 12% per year and allowed the commercial banks to
extend the lending in the fields that they have still hesitated for a long time, especially the property
market and the medium and small enterprises, which is considered to be a positive signal. Because at
the present, 80% of the enterprises are facing difficulties in capital raising and many enterprises may go
bankrupt because they cannot borrow the money.
According to the experts, it is advisable for the commercial banks to be cautious about real estate loans,
but they should not equate all of the projects. Currently, about 95% of real estate enterprises have to ask
for bank loans. If the banks refuse the loans, the enterprises will go broke. The banks should consider
the priority for the good projects that have completed about 80 - 90%. Therefore, the whole Ho Chi Minh
City real estate association and real estate enterprises have shown that the best way to save the market
is by providing working capital.
And if the commercial banks open door for real estate loans as the State banks require, the market will
recover in a short time.

Real estate finds few buyers but According to experts, although the prices of most of the high-grade apartments have decreased as
compared with 6 months ago, they are still higher than the middle of 2007. This has brought about the
prices still high fact that a series of the middle class apartments, home and individual ground base have still not seen
SGGP – 05 Nov, 2008 any price decrease. The property prices now are still at least 50% higher, even doubling and tripling.
This is caused by the fact that the investors or speculators are keeping the prices to take profit.
A paradox that anyone could see until this time is that although the real estate market is freezing, the
prices have still not decreased significantly. There are 2 main reasons for this. Firstly, the speculators
collected goods at the time when the prices are too high, so now they cannot reduce the prices.
Secondly, many investors associate with each other or look at each other to offer no discount. Many
speculators or investors are still hoping that after the Tet holidays, the market will definitely recover and
the prices will be back to uptrend. However, they forget that with such sky-high prices, the majority of the
people with housing demand really cannot afford it.
The typical way that many speculators apply to keep the prices is to advertise that they buy a large
number of their projects at the high prices in order to create quot;virtual demandsquot;.

REAL ESTATE FOREIGN INVETSMENT

50 million USD invested in Megastar Megastar Land real estate joint stock company (Vina Megastar Group JSC) has signed a contract with
Nikken Sekkei Group (Japan) to establish the project planning of Megastar Yen My II industrial zone
Yen My II industrial zone (Hung Yen).
Ha Noi Moi – 04 Nov, 2008 The industrial zone is built on a site of 130 hectares with a total investment of 50 million USD. The
project is close to Highway 39, Hung Yen town, including many industries: production, electrical
installation, electronic, steel manufacture and steel products, etc.

Hue leading in attracting FDI With 67 projects granted investment licenses and the total registered capital of over 2.3 billion USD,
Thua Thien Hue province has climbed up to the leading position among the key economic zones of the
Nguoi Lao Dong – 03 Nov, 2008 central region in attracting foreign direct investment (FDI).
The foreign investment projects in Thua Thien Hue have mainly focused on the fields of producing
cement, beer & wine, mine ores, transportation, garment, hotel, restaurant, resort, etc. Few projects
have focused on the fields of agro-forestry production and processing agricultural – forestry – aquatic
products. In which, tourism is always the strength of the province and also is the field attracting most
investment.

Sponsor:


Countries/ territories leading
in the list attracting FDI until
October, 2008
Source: General Statistics Office

With nearly 15 billion USD,
Malaysia has become the country
topping the list of the countries
investing most in Viet Nam until
October 2008.
Although Taiwan has just ranked
the second in the total capital, it
has been the country with the
highest number of projects.

VIETNAM IN THE WORLD
Vietnam ups 6 grades in the global According to the board ranking business environments worldwide (including 82 countries) announced on
business rankings 19th Nov, 2008 by a US-based branch of Economic Intelligence Unit, Vietnam has moved up 6 ranks
from the rank 71st for the 2004 - 2008 to the rank 65th for the 2009 - 2013 periods.
Edited by VietRees
The main cause that has helped Vietnam’s ranking increase is that the business environment has been
improved after Vietnam joins WTO. Additionally, the company writes that in 2009 - 2010, Vietnam will
improve the operation environment for private enterprises in line with the implementation of new
legislation and until the 2011 - 2013 period, many state-owned enterprises will be privatized. In the
meantime, the reformed personal income tax system will come to effect in January, 2009.
The company forecasts that the real GDP growth of Vietnam in 2009 will drop to 5.3%. However,
according to the company, foreign investors are still confident about the business future in Vietnam.

REAL ESTATE AGENTS
Van Phat Hung invests in new Van Phat Hung JSC has shown that Phu My apartment building (Dist.7, HCM City) has now completed
the structure works and implemented over 50% of the finishes in order to hand over the houses in the
projects early second quarter of 2009.
Nguoi Lao Dong – 01 Nov, 2008
In the near future, the company will invest more in the new projects in District 2, District 7, Binh Tan
District, Nha Be suburban district, etc. The company plans to list its shares at HCMC stock transaction
center in 2009.

Thu Duc House opens two more Thu Duc House JSC has just opened two real estate transaction centers at 74 Pham Ngoc Thach Street,
District 3 and 6A Dinh Bo Linh Street, Binh Thanh District, Ho Chi Minh city.
real estate transaction centers
According to the company, they would expand many more transaction centers in Da Nang, Hanoi, Binh
BDS & TS – 03 Nov, 2008
Duong, etc. Meanwhile, the company will develop some projects to serve the average income people in
the near future.

Tin Nghia buys back a tourism On the morning of November 3rd, 2008, Tin Nghia company - Dong Nai has signed a contract to buy the
Oriental hotel - tourism zone worth over 4 million USD in Champasak province, Laos. Located on the Sa
zone in Laos Rau mountain, 5-star Oriental is built on a site of approximately 23 hectares. Tin Nghia will continue to
TheSaiGonTimes – 03 Nov, 2008 complete the first phase of the project, including 4 motels (112 rooms), 1 central building with the
services of shopping, entertainment, spa, restaurant, etc, which are in the construction progress.
In addition, Tin Nghia has also established Tin Nghia JSC – Laos to operate the investment and
business activities here.

Dat Viet Group opens its real Dat Viet Group officially opened its real estate transaction center at No.147 Hoang Van Thai street,
Thanh Xuan district, Ha Noi on November 3rd, 2008 with a total area of 600 m2, specializing in the fields
estate transaction center relevant to real estate such as brokerage business (sale - purchase transaction, transfer, lease & for
Kinh Te Do Thi – 03 Nov, 2008 lease); assessment (assessing projects, houses, works, etc); consulting (consulting on setting up the
domestic and foreign projects, legal formalities, land prices, etc), advertising, auction, real estate
management, training and offering refresher courses in terms of real estate field.

Opening Thanh Nien Detesco Thanh Nien Detesco Building SJC, with 2 shareholders - Thanh Nien Communication JSC and Detesco
company – was officially opened in Hanoi on the morning of November 5th, 2008. The company will
Building SJC focus on the construction of office buildings for lease, entertainment-sport centers, high-grade trade
Thanh Nien – 06 Nov, 2008 centers, etc.
The company has also begun to implement the construction of Thanh Nien - Detesco office building and
trade center with 26 storeys on a site of 1,325 m2 at 125 Van Cao Street, Ba Dinh District, Hanoi.

Sacomreal opens a new branch On November 4th, Sacomreal company officially opened Dong Nam branch at No.170 Khanh Hoi Street,
Ward 6, District 4, HCM City. The branch will trade in the products that are invested and distributed by
VietRees – 06 Nov, 2008 Sacomreal. Meanwhile, it will promote the brokerage activities and property leasing in the city.
The company has also shown that in early November 2008 the customers will be paid the original capital
and bond-interest of Phu My project, District 7 that they bought in March 2008. Until now, the market has
been sluggish, as a result, the company will recount the new selling prices expected to be from 18 to 24
million VND/m2.

Sponsor:


Websites of real estate companies in Vietnam

Property developers Brokerage Evaluation
Ho Chi Minh Ho Chi Minh AREV - www.arev.com.vn
Company 585 - www.585.com.vn An Gia - www.angia.com.vn Hoang Quan - www.thamdinhgia.com
Company 584 - www.congty584.com.vn ACBR - www.acbr.com.vn Vietland - www.thamdinhgia.com.vn
An Phu - www.anphugroup.vn Dat Xanh - www.datxanh.com.vn VVFC - www.valuation.vn
BCCI - www.bcci.com.vn Dia Loi - www.nhadatdialoi.com.vn
Daewon - www.daewon.vn Dat Cat - www.datcat.com.vn Construction
Him Lam - www.himlam.com FICO - www.ficohome.com.vn
Ho Chi Minh
Hoang Anh Gia Lai - www.hagl.com.vn Kim Son - www.kimson.com.vn
CIC8 - www.cic8.com
Linh Phong Conic - www.conic.com.vn Phuc Duc - www.phucduc.com
Coteccons - www.coteccons.com.vn
Nam Long - www.namlongvn.com Hung Phu - www.hungphunhadat.com
Cosaco - www.cosaco.com.vn
Phu Long - www.phu-long.com.vn Hung Thinh 2 - www.diaochungthinh.com.vn
Hoa Binh - www.hoabinhcorporation.com
Phu Quoc Land - www.phuquocland.net Hoang Quan - www.hoangquan.com.vn
Hai Thanh - www.haithanh.com.vn
SacomReal - www.sacomreal.com Intresco - www.intresco.com.vn
Toan Thinh Phat - www.toanthinhphat.com.vn
Sadeco - www.sadeco.com.vn Loc Dien - www.nhadatld.com
Resco - www.rescovn.com Nova - www.novahomes.com.vn
Thai Thinh Capital - www.richlandhill.com.vn Phat Hung - www.phathung.com.vn Ha Noi
Thu Duc House - www.thuduchouse.com SacomReal - www.sacomreal.com Constrexim - www.constrexim.com.vn
Phu My Hưng - www.phumyhung.com.vn Tan Dien - www.tandien.com.vn Cavico - www.cavicovn.com
Van Phat Hưng - www.vanphathung.com.vn HANCIC - www.hancic.com.vn
Vietnam Land SSG - www.saigonpearl.com.vn Ha Noi HUD - www.hud.com.vn
Incomex - www.incomex.vn
Cland - www.cland.com.vn
Ha Noi Dong Do - www.dongdobds.com
FPT Land - www.fpt-land.com Phu Thai Group - www.phuthaigroup.com Architect and Interior Decoration
C.E.O - www.ceoholdings.com.vn Petrowaco - www.petrowaco.vn Ho Chi Minh
Gia Tue - www.giatue.com.vn Petrolimex – www.pland.com.vn A2 Visualization - www.a2viz.com.vn
HUD - www.hud.com.vn Cat Moc - www.catmoc.com.vn
HDB Viet Nam - www.hdbgroup.com.vn Other cities Nha Vui - www.nhavui.com
Keangnam - www.eng.kne.co.kr Dieu Hien - www.dieuhien.com.vn Nha Viet - www.nhavietdecor.com
Nam Cuong - www.namcuong.com.vn Thien Loc - www.thienlocnhadat.com.vn Nha Dep - www.nhadep.com.vn
Song Hong Land - www.songhongland.com.vn Pho Xinh - www.phoxinh.com.vn
Vinaconex - www.vinaconex.com.vn Research
Vincom - www.vincom.com.vn CBRE - www.cbrevietnam.com Ha Noi
Viet Hung - www.ecopark.com.vn Savills Viet Nam - www.savills.com.vn ACT - www.act.com.vn
VietRees - www.VietRees.com ADKientruc - www.adkientruc.com
Other cities Ashui – www.ashui.com
Becamex IDC - www.becamex.com.vn Consulting Kien Truc Ha Noi - www.kientruchn.com
Biconsi - www.biconsi.com.vn CBRE - www.cbrevietnam.com
Tuan Chau - www.tuanchau-halong.com.vn Dong Duong - www.indochina-consulting.com Other Countries
GNSVINA - www.cozyvill.com Eden Real - www.edenreal.com Architects 61, Sing - www.a61.com.sg
Company 579 - www.cecico579.com.vn Hop Nhat - www.uniland.com.vn DP Architects, Sing - www.dpa.com.sg
Duc Manh - www.ducmanhco.com Indochina Land - www.indochinacapital.com SWA, USA - www.swavietnam.com
Long Gia Khang - www.longgiakhang.com Ong&Ong, Sing - www.ong-ong.com
Savills Viet Nam - www.savills.com.vn RSP Vietnam, Sing - www.resp.com.sg
Vina Capital - www.vinacapital.com Surbana Vietnam, Sing - www.surbana.com

Sponsor:


REAL ESTATE PROJECT AND PRICES
Starting the construction of Danang On November 5th, 2008, PetroVietNam Finance Corporation (PVFC) started the construction of Danang
Oil & Gas Finance Center at lot A2.1 + 300 on 30/4 Street, Hoa Cuong Bac Ward, Hai Chau District, Da
Oil & Gas Finance Center Nang city with a total investment of over 245 billion VND. The center is built on a site of approximately
TheSaiGonTimes – 05 Nov, 2008 1,260 m2 with 15-storeys and 2 basements. The project is expected to be put into operation in 2010.
This will be the operation center for the finance/ banking, organizing the investment activities and bank-
finance services of PVFC in the Central region.

Add over 1,000 billion VND to Mang The urban area project has consisted of about 150 high-grade villas in Mang Den national eco-tourism
Den tourism zone site invested by Gia Hung Real Estate JSC. Kon Tum provincial People's Committee has approved this
project with a total investment of nearly 450 billion VND. In addition to the construction of a new urban
Vnagency – 06 Nov, 2008 area, Gia Hung has also been licensed to develop the eco-tourism services and resorts within the project
scope.
At the same time, Saigon - Tay Nguyen Investment JSC has also registered to invest 600 billion VND in
the project of cultural – ecological – resort tourism zone at Mang Den tourism zone. The project includes
50 resort villas, wild animal areas and organizes the activities of hunting, elephant riding, mountain
climbing, telpher, etc for tourists.
The project is expected to be put into operation in 2011.

Ho Chi Minh City approves two new The People's Committee of Ho Chi Minh City has licensed Saigon Cosmetic JSC to be the investor of
the project of the high-grade apartment building and office at No.762 B Binh Quoi (Xo Viet Nghe Tinh),
apartment building projects Ward 28, Binh Thanh District.
VietRees – 06 Nov, 2008 Previously, the People's Committee of Ho Chi Minh City has also licensed Vien Dong Land Investment
JSC to invest in the construction of the high-rise apartment building project with an area of approximately
11,590 m2 at Phu Thuan Ward, District7.
High-grade apartment prices at
HCMC are not changed compared
with September, 2008
Edited by VietRees – Oct, 2008

Announced prominent real estate developments during the last 2 weeks*
Week 4+, October 2008 Week 1, November 2008
Ho Chi Minh City Khang Gia 3 Resettlement apartment building (Go Vap Dist.) Apartment building - offices at Binh Quoi (Binh Thanh)
Apartment building at Phu Thuan Ward (Dist.7)

Other Areas Dien Phu urban area (Gia Lai) Thanh Nien Detesco office building (Hanoi)
IGS Nam Son Hap Linh urban-industrial zone (Bac Ninh) The Oil & Gas - Finance Trade Center (Da Nang)
Tau Voi tourism site (Ha Tinh) The urban area of Gia Hung Company (KonTum)
The tourism site of Sai Gon-Tay Nguyen Co. (KonTum)

Approved prominent real estate developments in HCM City*
October November
Housing, apartment, residential area Apartment building No.1 – No.31 Calmette Street (Dist.1) Apartment building - offices at Binh Quoi (Binh Thanh)
Resettlement area at Phu My Ward (Dist.7) Apartment building at Phu Thuan 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)

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 Ha Noi Other cities
Blooming Park - www.bloomingpark.com Viglacera Tower - www.viglaceraland.vn Cozyvill - www.cozyvill.com
Saigon Paragon - www.saigonparagon.com My Dinh – Me Tri RA - www.sudicosd.com Flamingo Dai Lai - www.flamingodailai.com
Dragon City - www.dragonland.com.vn Bac An Khanh RA - www.vinaconex.com.vn Van Phu township - www.dothivanphu.com
Preche - www.preche.com Ha Noi Plaza Hotel - www.charmvit.co.kr Dam Vac Golf - www.damvacgolf.com
SaigonPearl - www.saigonpearl.com.vn Phap Van – Tu Hiep RA - www.hud.com.vn Sanctuary - http://sanctuary.com.vn
V-Star - www.v-star.com.vn Ho Tram Strip - www.hotramstrip.com
Time Square - www.timessquare.com.vn Sai Gon Sunbay - www.ctc-corp.vn
The Everrich - www.theeverrich.com Other cities Eden Lagi Resort - www.edenreal.com
Tan Da Court - www.tandacourt.com Furama Resort - www.furamavietnam.com Van Quan – Yen Phuc township - www.hud.com.vn
Lancaster - www.lancaster.com.vn Sai Gon – Mui Ne Resort - www.saigonmuineresort.com Quoc Te Do Son - www.vietlandgroup.com
The Vista - www.thevista.com.vn Sunspa ResortVietnam - www.sunsparesortvietnam.com
Sponsor:


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
Distri Area Price (million
ct (m2) VND/m2)
+/-
Apartment building – HCMC
International Plaza 1 95 48
The Lancaster 1 120 68.8 -
An Thinh 2 140 24.5 +
Binh Minh 2 126 15.5 -
Cantavil, Dist.2 V- star, Dist.7 Sky Garden , Dist.7 Orient Apartment 4 98.8 28.5
* 112m2 – 2,500 USD/m2 * 97.56m2 – 15 million VND/m2 * 71m2 – 29.7 million VND/m2 Hung Vương Plaza 5 132 26.5 -
* 257m2 – 23.7 million VND/m2 Noble Apartment 6 58 13
Phu Loi 1 8 68.82 12.6
Phu My Thuan NB 93 8.7 -
Phuc Yen TB 91 14.5
Sunview TD 88.5 10.5
Fortuna TP 76 12.5 -
Khang Phu TP 74 16.5
Development land lots – HCMC
Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 An Phu – An Khanh 2 200 23.5
* 115m2 – 29 million VND/m2 * 83m2 – 19 million VND/m2 * 112m2 – 1,650 USD/m2 An Phu Hung 7 72 29
* 135m2 – 31million VND/m2
* 150m2 – 1,750 USD/m2 Nam Long 9 90 11 +
Direct contact with the investor1
Bac Rach Chiec 9 140 11.2
Long Phuoc 9 278 3.6
13C BC 85 11.5
6B – Binh Hung BC 150 12.5
Trung Son BC 120 52
Phu Xuan – Van Phat Hung NB 126 9 -
Apartment building - Ha Noi
Dich Vong CG 93 13.7 -
Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh Trung Hoa – Nhan Chinh CG 145.5 30 +
* 154.56m2 – 2,430 USD/m2 * 138m2 – 37.6million VND/m2 * 135m2 – 2,250 USD/m2 Trung Yen CG 110 26 +
* 146m2 – 39.7 million VND/m2 * 141m2 – 2,300 USD/m2 Thai Thinh DD 68 25.5
Happy House Garden LB 74.54 11.5 +
My Dinh 1 TL 127.5 17.5 -
Nang Huong TX 100 13.2 -
Development land lots – Other provinces
My Phuoc 3 BD 300 1.53 +
Truong Son BD 85 3
Lan Anh 2 BR-VT 100 1.8

The Vista, Dist.2 New SaiGon, Nha Be The Manor, B.Thanh Thanh Binh BR-VT 330 9

* 101m2 – 1,700 USD/m2 * 99m2 – 20.4 million VND/m2 * 74m2 – 2,200 USD/m2 Wind Hill BR-VT 180 4.2

* 142.2m2 – 2,180 USD/m2 * 121m2 – 18.6 million VND/m2 * 100m2 – 2,425 USD/m2 HUD DNI 100 3.2
Licogi 16 DNI 174 2.3 -

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

Sponsor:


PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS
Social wefare houses for worker * Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1,
Linh Trung Ward, Thu Duc Dist, HCMC.
VietRees
* 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 storeys.
th
* Morning of August 28 , 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 * 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.
VietRees
* 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 buiding 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)
The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas
Dwellings for overseas Vietnamese Vietnamese buying houses, mainly in HCMC. Those who brought houses are those who come back to
and foreigners the country for their long term and direct investment, scientists, culture researchers invited to come back
VietRees 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.
Sponsor:


REAL ESTATE LEGISLATION

New regulations on granting The HCM City Department of Construction has given detailed notice of the conditions/ procedures
relevant to individuals submitting the registration forms for the granting of the certificates of real estate
certificates of real estate brokerage and assessment.
brokerage and assessment The certificates of real estate brokerage and assessment are granted to the individuals doing business in
Thanh Nien – 03 Nov, 2008 terms of real estate services in Vietnam. The individuals granted the certificates have to meet the
following conditions: (1) The individuals who are not civil servants. (2) Having enough civil capacity, not
being in the situation of holding responsibility for criminal activity or imprisonment. (3) Having the
certificates of finishing the refresher training courses on real estate brokerage and assessment. Only the
individuals asking for the granting of the certificates of real estate assessment should have college or
university degrees. (4) Having the documents asking for the granting of the certificates of real estate
brokerage in accordance with the regulations.
Those who ask to be granted or re-issued the certificates should have permanent residences or long-
term temporary residences in HCMC or permanent residences outside the HCMC boundary; finish the
training courses on real estate brokerage and assessment at the training centers (including branches)
licensed to organize the training programs in HCMC by the Ministry of Construction.
In the following cases, the certificates of real estate brokerage and assessment will be revoked and not
re-issued within 5 years from the date of having the decision on revoking the certificates: (1) Those who
are granted the certificates lose the civil capacity. (2) The statements in the documents asking for the
granting of the certificates are not honest. (3) The certificates have been erased and changed. (4) Those
who are granted the certificates let out the certificates to others for lease. (5) Those who are granted the
certificates violate the regulated principles of practice. (6) Those who are granted the certificates violate
the regulations and their certificates are revoked following the regulations of the law.
The time of performing the registration for the granting of the certificates of real estate brokerage and
assessment begins on November 10th, 2008.
In the case that foreigners have had the valid certificates of real estate brokerage and assessment
issued by foreign countries, they are eligible to use their certificates to practice in Viet Nam. However,
the certificates must be translated into English and notarized or certified in accordance with the
regulations of Vietnamese law. In addition, the certificates must be sent to the Department of
Construction at the locality where they practice for its monitoring and managing.

According to the new regulations on acknowledging the land-use rights and granting the land use right
Hanoi promulgates new regulations certificates, (which have been promulgated by the People’s Committee of Hanoi city) there are 4 types of
on land use rights land in the city that are not acknowledged the land use rights and 8 types of land that are not granted the
Vneconomy – 06 Nov, 2008 certificates of land-use rights.
The cases that do not acknowledge the land-use rights include: the land that is not used or for borrow or
used for the wrong purposes, etc; the land that does not continue to be used after being executed
following Decision No. 09 of the government; the land that is used for business operation, production, or
services yet is decided to be removed due to its unsuitability to the planning or due to the environmental
pollution; the land that receives the decision of being taken back to carry out the projects.
In addition, the city has also stipulated 8 types of land that will not be granted the certificates, including:
the public land generally used in the residential areas; the land assigned for investment projects
management (construction – transfer); the land used for public work management; the land used for the
management of big rivers and lakes; the agricultural land belonging to the public land reserve; the
leased land of other people except for the leased land of the state, industrial zones, hi-tech zones,
economic zones; the land areas used for the management of the revoked land reserve.
Within 15 - 30 days (from the date of receiving full valid documents), the Department of Natural
Resources and Environment of the city will take responsibility for inspecting the reality of the land use to
grant the certificate of land use rights and submitting it to the city People's Committee for their deciding
of recognizing the land-use rights.

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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

CONSTRUCTION MATERIAL MARKET
Construction material and Currently, although the retail prices of the construction materials have continued to plummet by 10% to
over 50%, the purchasing power has still been quite weak. The steel prices at the factories in the late
construction prices go down October have gone down to 11.05 - 11.35 million VND/ton. On the market, the retail prices of rolled steel
Edited by VietRees 6, 8 down to approximately 11 million VND/ton. The streaked steel of all types have slid down to 110,000
- 325,000 VND/bar. Cement Ha Tien 1 has been only approximately 70,000 VND/sack, the prices of
other brand names have ranged from 64,000 - 68,000 VND/sack. The brick prices have also dropped by
800 - 1,200 VND/brick. Sand and stone prices have fallen by 10,000 - 30,000 VND/truck. According to a
construction contractor, the raw construction prices has now declined from 2.7 - 3 million VND/m2 (in
October, 2008) to 2.3 - 2.6 million VND/m2. The reduction in the construction prices has contributed to
the reduction of other expenses, for example, the design expense has declined by 15 - 20% accordingly.
According to the owners of the construction material stores, the reason that has made the steel price
decrease is that the steel ingot prices in the world has dramatically dropped by nearly 70% as compared
with July. In addition, the consumption has been slow while many producers have been trying to reduce
the selling prices to take back the capital to pay the due loans. However, the total construction price is
hard to go down more because according to the construction companies, the labor costs cannot
decrease to keep the labor. According to the contractors, it is a suitable time for the investors to speed
up the construction progress of the projects and this is an opportunity for those who have demands for
constructing and renovating their houses at the end of the year.

STOCK MARKET
Two bourses flooded with red color, With the psychology of predicting the downward adjustment of
the market after many upward days, the purchase power today
VN-Index loses over 13 points, has been quite limited whereas a mass of selling orders are
HASTC-Index loses 5.76 points launched.
Edited by VietRees Ending the first phase, the large supply has made VN-Index
fall by 13.26 points (or 3.49%) down to 366.25 points. The
Chart Source: Vietstock trading volume has significantly decreased but it has still been
Up to date: 30 Oct, 2008 standing at the rather high level with 4.48 million units worth
148.1 billion VND. Entering the consecutive order-matching,
the purchase power has somewhat gone up, VN-Index has
slowly decreased accordingly. However, the rising trend of selling out has plunged very current effort.
Ending the second phase, VN-index has continued to drop by 14.02 points (or 3.69%) to close at 365.49
points. Closing the last session of the week, the whole market has lost 13.54 points (or 3.57%) to close
at 365.97 points. The whole market has 17.34 transacted units worth 545.317 billion VND. This index
has officially put an end to 7 consecutive upward sessions.
After the first week of November, Ho Chi Minh bourse has seen 4 upward sessions and 1 downward
session. Vn-Index has added 18.92 points (or 4.45%) as compared with the closing session of last week.
At Ha Noi bourse, after 2 upward sessions and 3 downward sessions, HASTC-Index has closed the
session on 7th Nov at 116.36 points, decreasing by 5.76 points (or 4.72%). The transaction value has
reached 329.87 billion VND with 12.26 shares.

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