Weekly Newsletter

A47
Vietnam Real Estate Week 1, September

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)

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
MARKET SITUATION
A lack of retail premises
before “zero hour”
Vneconomy – 03 Sep, 2008
Apartment building market
is splitting
Thanh Nien – 05 Sep, 2008
REAL ESTATE FOREIGN INVETSMENT
A new urban area to be
constructed at Cau Treo
border gate
TheSaiGonTimes – 31 Aug, 2008
Real estate market lures
Singaporean investors
Vnagency – 24 Aug, 2008
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 2
Although the “zero hour” of the retail business will be officially started in 4 months, the total area of retail
business premises has been scanty.
According to the current statistics, there are 15 trade centers that supply about 150,000 m2 in terms of
premises for the retail market in HCMC. However, with the rapid growth of the retail market, this total
area is insufficient to satisfy the current market. The preparation of a facility system for the retail market
in Vietnam does not keep pace with the operation progress of the market. In the past, the productivity of
leasing premises at trade centers, shopping areas has always reached over 94%, especially “hot” at the
CBD. Additionally, a series of separate stores take advantage of townhouse frontages scattering under
the big hotels such as Sheraton, Caravelle and etc.
Untill late July 2008, the monthly rental of retail premises at the CBDs of HCMC has averaged from 65 –
85 USD/m2/month and the highest monthly rent has gone up to 250 USD/m2/month. The monthly rent at
the regions outside the CBDs is at the average level of 40 USD/m2/month. The highest monthly rent
stays at the trade centers such as Diamond Plaza, Opera View, Parkson and etc.
According to a recent survey, District 1 has been gathering most trade centers and shopping areas in
HCMC, the next is District 5 and District 11 will be extended in the near future. And in the next 3 years,
the supply of premises in HCMC will receive additional premises of approximately 350,000 m2.
Currently, the situation of the apartment market in HCM has seen opposite movements. The prices of
upscale projects have dropped dramatically and become more and more reasonable and competitive. In
contrast, the prices of “middle-class” projects have been pushed up unreasonably.
Saigon Pearl project is cited as an example. The average transaction price of Sai Gon Pearl was
formerly 3,500 USD/m2 but as of now, it is being advertised for sale with the prices of 2,300 – 2,400
USD/m2. Meanwhile, prices of Phu My project (Dist.7) have soared up to 22 million VND/m2 from the
level of 15 million VND/m2. Prices of New Sai Gon project have jumped from 18 million VND to 22
million VND/m2. These price levels are being bravely advertised for sale by many investors. The
apartment market in HCMC has been seeing a clear split between the market share of high-class
apartment and that of middle-class apartment.
According to a real estate expert in HCMC, the prices of high-class apartments are becoming more
reasonable because most of the transactions in this market share are speculations. Currently, most
enterprises have fallen into the lack of capital, so the best way is to make little profit from sales of
upscale products. Additionally, the supply of high-class apartments is becoming more abundant; the
market is suddenly sluggish and consequently, most of projects are offering their products at the original
prices. Regarding middle-class apartments, their prices have been constantly pushed up high because
there are successful transactions from the people having real housing demands in some projects and
many investors have taken advantage of this fact to push up the apartment prices higher.
Due to the difficulties in capital, it is very difficult to have higher prices for apartments at this time. In the
long term, the law of supply and demand will decide the prices reasonably. The rise in prices has just
appeared in theory. In reality, the number of successful transactions is scarce
th
On August 26 , Ha Tinh Provincial People’s Committee and Jiseya Partners Company (Korea) signed a
memorandum for the cooperation to develop a new industrial zone and a new urban area at Cau Treo
international border gate economic zone with the total investment of approximately 1.2 billion USD.
Jiseya Partners will establish a company with 100% foreign-owned capital in order to develop the
industrial zone on a site of 100 hectares and the new urban area on a site of 400 hectares. Additionally,
the company also constructs vocational schools and some other projects.
Although there are many real estate projects in Vietnam, recently, many Singaporean investors are
looking at long-term investment plans for Vietnam. Many investors have carefully studied the land laws,
real estate development laws of Vietnam or they have visited Vietnam directly to learn about the market
and seek investment partners. Means of communication in Singapore have been flooded with the
information on the opportunities and investment environment in Vietnam, especially in HCMC.
In the first 8 months of this year, Singapore has had 56 investment projects in Vietnam with the total
registered capital of over 4 billions USD, ranking the 6th among 36 countries and territories investing in
Vietnam. Additionally, the investors from other countries also have a very high opinion of the potentiality
of Vietnam real estate market. According to an expert, in the near future, Vietnam will receive many
projects from other Asian nations such as Malaysia, Korea, China, Japan and the investors from Europe
and Middle East.
 VietRees – Vietnam Real Estate
List of the localities attracting
most FDI until August, 2008
Source: General Statistics Office
FDI in the past 8 months: the
registered capital up 416.4%
Ha Noi Moi – 03 Sep, 2008
REAL ESTATE AGENTS
150 billion VND invested in
Vinpearl Hoi An ecotourism area
Tuoi Tre – 30 Aug, 2008
Ngan Long villa area to be
inaugurated
Thanh Nien – 31 Aug, 2008
Apartments at Nam Thong
commercial area project to be
officially advertised for sale
VietRees – 01 Sep, 2008
Dieu Hien to develop real
estate projects in HCMC
BDS & TS – 01 Sep, 2008
Investment in construction
of the complex building at
Tan Phu district
VietRees – 03 Sep, 2008
The construction planning
of Thanh My Loi B residential
area ratified
VietRees – 05 Sep, 2008
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 3
Until August, 2008, Ba Ria –
Vung Tau province, HCM City
and Ha Tinh province have still
been the leading localities in the
list as compared with July.
However, only HCMC has seen
the increases in the number of
projects and the total FDI.
In August, 2008, the whole country had 118 licensed foreign-invested projects with the total registered
capital of 1.8 billion USD, raising the total new-level projects (from the beginning of the year till August
nd
22 , 2008) up to 772 projects with the total registered capital of 46.3 billion USD, increasing by 416.4 %
in terms of the registered capital over the same period last year.
The newly-licensed projects mainly focus on the field of services with 23.6 billion USD (accounting for
51% of the total registered capital); industry and construction with 22.5 billion USD (accounting for
48.6% of the total registered capital); the agro-forestry and aquiculture with 200.9 million USD
(accounting for nearly 0.4%). In which, Ba Ria - Vung Tau province is leading with the total registered
capital of 9.3 billion USD (accounting for 20.2% of the total registered capital), the next is HCMC with 7.9
billion USD (accounting for 17.1%), Ha Tinh with 7.9 billion USD (accounting for 17%), Thanh Hoa with
6.2 billion USD (accounting for 13.4%), Phu Yen with 4.3 billion USD (accounting for 9.4%) and Kien
Giang with 2.3 billion USD (accounting for 5%).
Quang Nam Provincial People’s Committee has decided to reclaim the land of Cu Lao Cham Investment
Tourism Commercial JSC (due to the slow construction) and assigned it to Vinpearl Hoi An Tourism
Investment JSC for their implementation of the project of Vinpearl Hoi An ecotourism area with the total
investment of approximately 150 billion VND on a site of over 77.500 m2 at Cua Dai Ward, Hoi An City.
Phu Long Real Estate JSC has prepared to open Ngan Long villa area which belongs to one part of the
Dragon City project located on Nguyen Huu Tho street, Nha Be suburban district with the total
investment of over one billion USD.
The project includes 60 villas for living and for business operation as well. This project is scheduled to be
officially inaugurated in the fourth quater of 2008.
Nam Thong commercial area is located in Nam Long new urban area – Tan Thuan Dong, District 7,
HCMCity. This project is constructed by Nam Long Investment JSC.
This project is the combination of homes and offices, each apartment has an area of 184m2 to over 300
th
m2. This commercial area is expected to be advertised for sale on September 6 , 2008.
Dieu Hien Group shows that they will start the construction of Binh An House 1 high-class apartment
project with 15 storeys at 83 Nguyen Van Troi street, Phu Nhuan district in late 2008. The total
investment is estimated to be over 300 billions VND.
In early 2009, the company will continue to start the construction of Binh An House 2 at Cao Thang
street, District 3. The project is 22-storey high, including high-class apartments, offices for lease and
trade centers. The total investment is over 700 billions VND.
People’s Committee of HCMC has licensed Saigon Trading Group to transfer the land-using purpose at
No. 62 Tan Thanh street, Tan Thanh ward, Tan Phu district in order to invest in the construction of the
complex building, including trade centers, offices for lease and apartments.
The People’s Committee of HCMC has also approved the supplementary planning for the location at
C6/27 Pham Hung, Binh Hung Commune, Binh Chanh suburban district and it will be used for operating
a supermarket and a trade center. The group is the investor and directly doing business.
The People’s Committee of HCMC has just ratified the construction planning of Thanh My Loi B
residential area, Thanh My Loi Ward, District 2. The project is invested by Thanh Nien Xung Phong
Construction and Investment Company (Cinco) with a total area of 178.84 hectares.
The residential area includes infrastructure works to serve the needs of living, learning, working, sport
and entertainment activities and etc. The population is planned to be 21,500 people and the
constructions are planned to be 2 - 25 storey high.
VietRees – Vietnam Real Estate
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
Sponsor:
www.VietRees.com
Brokerage
Ho Chi Minh
An Gia - www.angia.com.vn
ACBR - www.acbr.com.vn
Dat Xanh - www.datxanh.com.vn
Dia Loi - www.nhadatdialoi.com.vn
Dat Cat - www.datcat.com.vn
FICO – www.ficohome.com.vn
Kim Son - www.kimson.com.vn
Phuc Duc - www.phucduc.com
Hung Phu - www.hungphunhadat.com
Hung Thinh 2 - www.diaochungthinh.com.vn
Hoang Quan - www.hoangquan.com.vn
Intresco - www.intresco.com.vn
Loc Dien – www.nhadatld.com
Nova - www.novahomes.com.vn
Phat Hung - www.phathung.com.vn
Tan Dien - www.tandien.com.vn
Van Hung Phu - www.vanhungphu.com
Ha Noi
Cland - www.cland.com.vn
Dong Do - www.dongdobds.com
Phu Thai Group - www.phuthaigroup.com
Petrowaco - www.petrowaco.vn
Petrolimex – www.pland.com.vn
Research
CBRE - www.cbrevietnam.com
Savills Viet Nam - www.savills.com.vn
VietRees - www.VietRees.com
Consulting
CBRE - www.cbrevietnam.com
Dong Duong - www.indochina-consulting.com
Eden Real - www.edenreal.com
Indochina Land - www.indochinacapital.com
Long Gia Khang - www.longgiakhang.com
Savills Viet Nam - www.savills.com.vn
Vina Capital - www.vinacapital.com
VietRees - www.VietRees.com
Viet Nam Real Estate Newsletter A47 Page 4
Evaluation
AREV - www.arev.com.vn
Hoang Quan - www.thamdinhgia.com
Vietland - www.thamdinhgia.com.vn
VVFC - www.valuation.vn
Construction
Ho Chi Minh
CIC8 - www.cic8.com
Coteccons - www.coteccons.com.vn
Cosaco - www.cosaco.com.vn
Hoa Binh - www.hoabinhcorporation.com
Hai Thanh - www.haithanh.com.vn
Toan Thinh Phat - www.toanthinhphat.com.vn
Ha Noi
Constrexim - www.constrexim.com.vn
Cavico - www.cavicovn.com
HANCIC - www.hancic.com.vn
HUD - www.hud.com.vn
Incomex - www.incomex.vn
Architect and Interior Decoration
Ho Chi Minh
A2 Visualization - www.a2viz.com.vn
Cat Moc - www.catmoc.com.vn
Le Do - www.model&more.com
Nha Vui - www.nhavui.com
Nha Viet - www.nhavietdecor.com
Nha Dep - www.nhadep.com.vn
Pho Xinh - www.phoxinh.com.vn
Ha Noi
ACT - www.act.com.vn
ADKientruc - www.adkientruc.com
Ashui – www.ashui.com
Kien Truc Ha No - www.kientruchn.com
 VietRees – Vietnam Real Estate
REAL ESTATE PROJECT AND PRICES
One more high-class urban
area at Ben Tre
Thanh Nien – 31 Aug, 2008
A new urban area at Can Tho
VietRees – 01 Sep, 2008
Constructing a 12-storey office
building on Lieu Giai Street
Ha Noi Moi – 01 Sep, 2008
Phu My Hung oil & gas finance
and commercial center
TheSaiGonTimes – 03 Sep, 2008
High-grade apartments in HCMC, the
percentage increases and decreases
in apartment prices over the previous
period (month)
Prices are forecasted to see a slight increase of
2% in August, 2008 as compared with July, 2008
VietRees – Aug, 2008
Announced prominent real estate developments during the last 2 weeks*
Ho Chi Minh City
Other Areas
Approved prominent real estate developments in HCM City*
Housing, apartment, residential area
Office, commercial
* 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
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 5
The project of Sao Mai high-class urban area is invested by Sao Mai – An Giang Investment and
Construction JSC. The project is built on a site of 12.7 hectares at ward 7, Ben Tre town, including 670
terraced town-house bases of all types with the prices of over 3,100,000 VND/m2.
Buyers paying over 50% of contract value right after signing the contract will be offered 7.5% - 13.5%
discounts over the total contract value.
The People’s Committee of Can Tho City has approved the project of My Hung modern urban area
invested by Hong Loan Real Estate Trading and Construction JSC with a total area of 75 hectares.
The project comprises multifunction urban areas, international hospitals, 5-star hotels, schools, parks,
administrative areas, cultural activity areas... The construction of the project infrastructure is scheduled
to be implemented in early 2009.
st
On September 1 , 2008, the project of “trading head office for displaying and introducing products”
invested by Dien Bien JSC was commenced at 4 Lieu Giai Street, Ba Dinh District, Ha Noi. This project
is designed and consulted by Dong Duong Consultant Investment and Construction JSC with the total
investment of approximately 53 billions VND. The 12-storey building has a total floor area of 4,200m2.
This project is expected to be completed in October, 2009.
Petro Capital and Infrastructure Investment JSC (Petroland) has started the construction of the 30-storey
complex building at the finance and commercial center of Phu My Hung urban area on Tan Trao street,
District 7, HCMC. The project is built on a site of 3,000 m2 with the investment of over 1,000 billion VND,
including business areas, grade A offices for lease and 68 high-class apartments. The project is
scheduled to be completed and put into operation in December, 2010.
Week 4, August 2008 Week 1, September 2008
The Boat Club Residences (Dist.9) Petroland complex building (Dist.7), Complex building at
Tan Thanh ward (Tan Phu), Binh An House 1 (Phu
Nhuan 1), Binh An House 2 (Dist.3)
Xuan Quang Plaza - Nam Long II Residential area (Can Sao Mai high class UA (Ben Tre), My Hung modern UA
Tho), Bai Vong Resort Area (Kien Giang), Con Son Island (Can Tho), Vinpearl Hoi An ecotourism area (Hoi An),
Resort Area (TT-Hue), CT2 Complex (Ha Dong), An Phu Lieu Giai Office building (Hanoi)
Thinh Plaza (Binh Dinh)
August September
Truong Thanh Ward – VietNam House HA (Dist.9), 7/4A Kha Phu Thuan Ward HA (Dist.7), Tan Kien Town ReA (Binh
Van Can ReA (Thu Duc), 13E Phong Phu RA (Binh Chanh) Chanh), Thanh My Loi B RA (Dist.2)
Hiep Phu Ward – Hiep Phu Gia Co. office building, 34-35 Tan Thanh Ward complex building (Tan Phu), C6/27 Pham
Ben Van Don complex (Dist.4), 89A Nguyen Dinh Chieu Hung commercial center (Binh Chanh)
office building (Dist.3)
Ha Noi Other cities
Viglacera Tower - www.viglaceraland.vn Cozyvill - www.cozyvill.com
My Dinh – Me Tri RA - www.sudicosd.com Flamingo Dai Lai - www.flamingodailai.com
Bac An Khanh RA - www.vinaconex.com.vn Van Phu township - www.dothivanphu.com
Ha Noi Plaza Hotel - www.charmvit.co.kr Dam Vac Golf - www.damvacgolf.com
Phap Van – Tu Hiep RA - www.hud.com.vn Sanctuary - http://sanctuary.com.vn
Ho Tram Strip - www.hotramstrip.com
Sai Gon Sunbay - www.ctc-corp.vn
Other cities Eden Lagi Resort - www.edenreal.com
Furama Resort - www.furamavietnam.com Van Quan – Yen Phuc township - www.hud.com.vn
Sai Gon – Mui Ne Resort - www.saigonmuineresort.com Quoc Te Do Son - www.vietlandgroup.com
Sunspa ResortVietnam - www.sunsparesortvietnam.com
 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 6

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

Area Price (million
District
(m2) VND/m2)
+/-
Apartment building – HCMC
The Lancaster 1 120 76.8
An Khang 2 102 25.7 +
Binh Minh 2 108.5 17.7 -
Green Building 3 73 22.4 +
Estella, Dist.2 V- star, Dist.7 Sky Garden 3, Dist.7 Hung Vuong Plaza 5 121.6 35
* 124.6m2 – 2,100 USD/m2 * 97.5m2 – 22 million VND/m2 * 71m2 – 32.7 million VND/m2
My Vien 7 95 33.7
* 119m2 – 16.8 million VND/m2 * 91m2 – 27.5 million VND/m2
My Thuan 8 128.8 8 -
Hoang Thap BCH 98.5 22
Le Thanh BTA 68.4 8.7 +
Tan Tao BTA 91.11 9.3 -
Cuu Long BTH 87 20.5 +
Phu My Thuan NB 90 12.5
An Binh Plaza TD 54.5 9.9
Development land lots – HCMC
Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11
An Phu – An Khanh 2 120 31
* 115m2 – 29 million VND/m2 * 82.1m2 – 23 million VND/m2 * 115m2 – 2,300 USD/m2
* 135m2 – 31million VND/m2 * 160m2 – 1,950 USD/m2 Dong Thu Thiem 2 108 11 -
* 312m2 – 18 million VND/m2
Direct contact with the investor1 Eden 2 300 11.5
Binh Phu 2 6 75 30
An Phu Hung 7 72 26.5
Ba To 8 110 7.5 -
Gia Hoa 9 200 10.5 +
Phuoc Long 9 300 9
Hai Yen BC 100 8.2 -
Apartment building - Ha Noi
Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh Trung Hoa – Nhan Chinh CG 120 26
* 154.5m2 – 2,200 USD/m2 * 144m2 – 42.7 million VND/m2 * 133m2 – 3,000 USD/m2 Vimexco CG 142 27.5
* 136.5m2 – 2,900 USD/m2 Viet Hung GL 81.4 8 -
Mai Huong HBT 45 20
Dai Kim - Dinh Cong HM 55 17.2
Momota HM 90 20
Totosa HM 96 16.15
My Dinh 1 TL 93 15.5
Development land lots – Other provinces
My Phuoc 3 BD 300 3 +

BMC Hung Long, Dist.7 The Manor, B.Thanh Vinh Phu 2 BD 143 5.8 -
The Vista, Dist.2
* 101m2 – 1,700 USD/m2 * 79m2 – 19.5 million VND/m2 * 67.1m2 – 2,100 USD/m2 Thanh Binh BR-VT 301.3 10.5
* 152m2 – 2,000 USD/m2 * 102m2 – 20.8 million VND/m2 * 157m2 – 2,800 USD/m2 Nam Long CT 114 5.5
Licogi 16 DNI 180 2.6
Long Hau 3 LA 116 5.5

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

Sponsor:
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 7

PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS

Social wefare houses for worker
VietRees
* HCMC housing development fund has inaugurated a 5-storey apartment buidling for workers in Quarter
1, Linh Trung Ward, Thu Duc Dist, HCMC. The investor is Saigon Construction Corporation.
* 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 memorandom for the
cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine.

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.

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.
and foreigners Those who brought houses are those who come back to the country for their long term and direct
VietRees 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.

Sponsor:
 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 8

REAL ESTATE LEGISLATION

Realtors could be fined for Imposing fines for breaches in real estate business is a completely new section in the draft decree
amending the Decree 126/2004/ND-CP on levying fines for administrative breaches in construction
avoiding trade centers activites that the Ministry of Construction is drafting.
Thanh Nien – 31 Aug, 2008 Accordingly, organizations or individuals would be fined 50 - 60 million VND if they sell, buy or rent the
properties that are obligatory to be traded through trading centers without going through such centers.
This fine level would also be levied on property transactions that violate the stipulated order and
procedures or regulations on the properties traded through transaction center already. Fines of 60 – 70
million VND would be imposed on the real estate developers operating without business permits; trading
unlicensed properties; violating the construction progress or the regulations on capital mobilization for
investments in the construction of housing development projects. Beside the fines, the business permits
of the violators could also be revoked.
Fines of 70 - 80 million VND would be applied to the violations of the principles on real estate brokerage,
assessment, management and trading centers operation. A 90 milllion VND fine will be applied to the
developers or agents that fake certificates of real estate brokerage and assessment and the violators
would be banned from operating in this field within 5 years from the date of punishment.

Construction Price Index The Ministry of Construction has released the construction price index in the second quarter 2008 with
the purpose of helping the investors and contractors to determine the total investments, cost estimates,
in 2nd quarter, 2008 payments and manage the construction expenditure. It is also the foundation for capital disbursement.
The construction price index is categorized according to 3 areas (including Hanoi, Da Nang and HCMC)
TheSaiGonTimes – 03 Sep, 2008 and 5 types of construction works (including civil construction works, industry works, traffic works,
irrigational works/water conservancy projects and technological infrastructure works). This index shows
the ups and downs in construction prices of works calculated according to construction material price
index, labour prices and machine prices.
The construction index proves a rapid increase in construction prices of works of all types, especially the
types of civil constructions such as dwellings, head offices and hotels.
Although this index has assessed the fluctuations in the costs of construction, equipment, project
management, construction investment consultancy and some other expenses, it has not yet paid
attention to some other important factors (if any) such as the expenses for ground clearance
compensation and resettlement, expenses for the elaboration of the reports evaluating environment
impacts and protection, expenses for hiring foreign consultancy, loan interest rates in the construction
period (for the projects using loans), the working capital in the pilot-production period (for business or
production projects)
The Ministry of Construction also notes that it is needed to base on the features and requirements of the
projects to add into the costs suitably when using these indexes to estimate the total investment.

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 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A47 Page 9

REAL ESTATE MARKET FORECAST

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

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

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

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

CONSTRUCTION MATERIAL MARKET

In August, cement consumption has been slow due to heavy rains across large areas. Cement has seen
Cement agents raise the import an extra decrease of 2,000 - 4,000 VND/sack. Even so, Cement Ha Tien 1 JSC has still raised the prices
st
and cut the sale. Steel sales are by 5,000 VND/sack since September 1 , 2008, up to 65,000 VND/sack. Factories show that the output
will be enough to meet the demand of the construction market in the remaining 4 months of this year.
sluggish but its prices are still high Prices of construction sand and stones of all types have fallen by 20,000 VND/van; bricks have gone
Edited by VietRees
down by 200 - 1,200 VND/brick. Expenses on transportation of construction material at some routes
have also dropped by 15,000 - 20,000 VND/journey.
Although steel prices have been reduced for 3 times by the enterprises in August, 2008, the transaction
has still been gloomy due to the low purchasing power on the market. The most significant price
decreases have happened to bar steel and rolled steel of all types from the pinnacle of 21 - 21.5 millions
VND/ton to 17 – 17.5 milllions VND/ton. Types of iron, steel pipes and corrugated iron have also seen
dramatic price decreases of 5,000 – 20,000 VND. The main cause is that prices of steel and steel
embryo have dropped by 10 – 20% as compared with June. Currently, the enterprises have an inventory
of 220,000 tons of finished steel and 400,000 tons of formerly imported steel embryo. The re-exporting of
steel and steel embryo has stopped when the export tax rate has still remained at 20%.
Regarding the domestic construction material market in the last months of this year, the experts show
that there have been signs of price decreases since early August due to the fact that the supply is higher
than the demand, the prices of oil fuel is low, the inventory of finished steel is large while many
construction works are stagnating due to a shortage of funds and effects of crop factors.
STOCK MARKET
Vn-Index has lost 11.9 points and slide out of
Securities Index on two trading 550 point-level. Meanwhile, HASTC-Index has
floors have lost points also gone down by 5.73 points to end at 189.14
point-level.
Edited by VietRees
After a tough upward session, when opening
Chart Source: Vietstock the market in the morning of September 5th,
HOSE has seen a majority of selling orders.
Up to date 05 Sep, 2008
VN-Index has decreased by 7.21 points as
compared with the previous session, to end at
551.35 points. Entering the order-matching
phase, Vn-Index has recorded an additonal
decrease of 2.94 points as compared with the
first phase, falling below the 550 point-level to
end at 548.41 point-level. Ending the session,
VN-Index has lost a total of 2.94 points to end at 546.66 points (equivalent to a decrease of 2.13%). The
total trading volume on the whole market has reached over 22.7 units worth more than 900.3 billion
VND. As a result, during 3 trading sessions after the National holiday, Vn-Index has recorded 2 upward
sessions and 1 downward session. In sum, VN-Index has added 7.56 points this week.
At Hanoi transaction centre, HASTC-Index has fallen by 5.73 points or 2.94% to end at 189.14 points.
The total trading volume on the whole market has reached 16.7 units with the trading value of over 791.7
billion VND. With 3 trading sessions in the week, HASTC-Index has also recorded 2 upward sessions
and 1 downward session. HASTC-Index has lost 3.29 points as compared with the last trading session
of last week.

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