Weekly Newsletter

A50
Vietnam Real Estate Week 4, 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)

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
MARKET SITUATION
High-grade offices in HCMC
still lure customers
Vneconomy – 23 Sep, 2008
Land prices continue to go down
Lao Dong – 24 Sep, 2008
REAL ESTATE FOREIGN INVETSMENT
One more high-end resort to
appear in Da Nang
VietRees – 22 Sep, 2008
Korea constructs a resort in
Hai Phong
Vnagency – 26 Sep,2008
Hai Phong attracts a lot of FDI
into real estate
Vneconomy – 22 Sep, 2008
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A50 Page 2
According to a study, the segment of grade-A offices for rent in HCMC has still been growing strongly. In
the third quarter of 2008, all grade-A offices have reached rental rates of nearly 100%.
The main reason that helps the segment of grade-A offices for rent in HCMC still develop in a good
condition is due to the fact that Vietnam continues to attract a high level of FDI and most of the
enterprises with economic potential desire to lease high-grade offices to affirm their brand names.
Additionally, the construction progress is slower than expected, which has cause a short supply of
suitable office space. This is also why this segment remains attractive. The demand is higher than the
supply, therefore, the rental prices of grade-A offices in HCMC have still been on the uptrend and
averaged about 79.3 USD/m2/month until the end of the second quarter 2008. This price level has
increased by 26% over the last quarter and 94% over the same period of the last year. In fact, the
demand of leasing grade-A offices (renewing the existing leases or taking out new leases) in HCMC
mainly comes from the foreign companies operating in the fields of finance, insurance, real estate,
information technology and etc.
And this demand has been forecasted to keep growing, but with a decreasing speed. Additionally, about
119,000 m2 for grade-B offices scheduled to be completed within the next 12 months will offer
customers alternative options.
After 2 months of being stabilized, HCMC land prices have continued to decrease by 500,000 VND –
2,000,0000 VND/m2. However, the demand has not yet returned.
Most projects that do not own favorable locations have fallen into significant price decreases, especially
the projects in District 9. Projects of over 20 million VND/m2 from the beginning of 2008 until now have
been 7 - 8 million VND/m2. Although land prices have dropped by over 60%, the purchase power has
still not gone up. Addionally, real estate agents have also raised the commission from 1% to 2% in the
situation of many difficulties in seeking customers. The middle grade projects that have sponged on the
former real estate fever have to suffer non-stop price decreases. The prices of the projects with
favorable locations have still remained fairly high although they have lost a half of their value as
compared with the peak time. In early July, when real estate market had suddenly warmed up, the
transaction figures have soared, many people believe that real estate prices have gone down to the
bottom. Yet, till the early September, the real estate market has seen little difference from the first
months of 2008.
According to experts, the market in July began to warm up due to the trend of changing investment
channel from securities into real estate. By and large, there have not been powerful-enough driving force
to break the frost on the real estate market. In which, bank credit has been unable to show its important
role. Although loan interest has been cut down, it is still too high and make it difficult to borrow money for
the investments in real estate. Many experts say that the real estate market has little possibilities to
recover before the end of 2009 & land prices will continue the trend of slowly adjusting to market trends.
Life Resorts (Holland) and Hoang Tra Tourism Company will develop the construction of the Da Nang
Life Resort project along Da Nang beach. The project is built on a site of 4.5 hectares, including 182
rooms, 15 detached villas, restaurants, spas, body building clubs, casinos and conference center areas.
The total investment is estimated to be approximately 25 million USD. The resort is expected to be put
into use in the third quarter of 2009.
Life Resorts group intends to develop other projects in Ninh Binh, Sapa and Ha Long.
On September 25th, 2008, Amco Mibaek Vina Co., Ltd ( Korea) started the construction of Song Gia
Resort with a total investment of 580 million USD.
It is built on a site of 637 hectares at Luu Kiem commune, Thuy Ngan suburban district, Hai Phong city.
The project includes 27-hole golf courts, international hospitals, commercial areas, entertainment areas,
villas, cluster of 5-star hotels etc. The first stage of this project is expected to be completed in 2010 and
the whole-project will be completed in 2015.
Although the first 9 months of the year 2008 had not ended, the total registered investment of the new
FDI projects and the FDI projects increasing their investment in Hai Phong City have reached 1.3 billion
USD, five-fold increase as compared with the whole year 2007. The number of the projects investing in
real estate, the construction of urban areas and buildings have accounted 70% of the total projects. This
is the highest FDI of the city until now.
In the previous years, it is industrial zones that have mainly lured FDI at Hai Phong. However, in 2008,
the tendency of attracting FDI has focused on the real estate field, the construction of urban areas,
modern buildings and offices for lease.
From now to the late 2008, the city will execute to grant the investment license to 2 construction projects
of industrial zones, urban areas and services in Hai An district. These two projects are invested by
Singapore and Taiwan.
 VietRees – Vietnam Real Estate
List of the countries leading
the investment in Vietnam
until August, 2008
Source: General Statistics Office
VIETNAM IN THE WORLD
Vietnam - the most attractive
new emerging market
Tuoi Tre – 23 Sep, 2008
REAL ESTATE AGENTS
Sky Garden 3 apartment is
27 million VND/m2
Nguoi Lao Dong – 20 Sep, 2008
CBRE announces the selling
prices of apartments at Vincom
Park Place
Kinh Te Do Thi – 21 Sep, 2008
HUD invests in projects abroad
Vneconomy – 22 Sep, 2008
Toan My Gia real estate transaction
center opened
Xay Dung Paper – 24 Sep, 2008
TDH invests in the housing
business in America
Vnagency – 26 Sep,2008
One more real estate transaction
center opened
Sai Gon Giai Phong – 26 Sep, 2008
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A50 Page 3
In comparison with the last month,
the order of countries/territories
investing in Vietnam has still been
unchanged. Most of the countries
have increased the number of
projects and investment as well.
Only Brunai has not had any more
project.
Vietnam is seen as the most attractive new emerging market, topping the list of 10 tomorrow’s high
growth according to the report on ”tomorrow’s market” revealed by UKTI (UK Trade and Investment
organization). Accordingly, the next priority markets are Mexico, the United Arab Emirates, Ukraine,
Indonesia, Singapore, Poland, South Africa, Argentina and Saudi Arabia.
According to the report, among BRIC markets, China and India are chosen as investment destinations
by most potential investors. Beyond the BRIC, Vietnam is shaping up as the most attractive new
emerging market due to the low cost base and sizeable population in labour age. It shows that Vietnam
begins to compete with China – the lowest-cost manufacturer at present.
Although the remaining economies in the list may not compare with China and India in terms of
population, they have made progress in market reforms, trade liberalization and governance – the
important factors for investors to consider their investment.
In late September, 2008, Phu My Hung joint venture company will invite customers who decided their
orders by lot to come and choose an apartment in Sky Garden 3 project, district 7 – the second stage.
The company has also begun to collect money for capital contribution because the basement has been
completed. Due to ups and downs on the market, Sky Garden 3 – the second stage has averaged about
27 million VND/m2. It is expected that there will be 2 or 3 banks financing customers in the purchase of
Sky Garden 3 apartments – the second stage.
CBRE Vietnam has just been authorized to exclusively market the Vincom Park Place (Vincom 2) project
by Vincom Joint-Stock Company with 25 storeys at 114 Mai Hac De street, Hai Ba Trung district, Ha Noi.
The project is expected to be completed and put into use in October, 2009.
In the beginning of October, 2008, CBRE will officially offer the apartments of this project for sale with
the average prices of approximately $3,600 USD/m2 for fully-furnished apartments.
The Housing and Urban Development Corporation (HUD) has signed a memorandum for the
cooperation with Cuba’s Palmares Group to invest in the construction of a 36-hole golf court and a
complex of tourism-service-dwellings in Colodera, Bauta town. These projects are built on a site of 300 –
400 hectares. The two parties will establish a join-venture company to execute the projects.
Additionally, HUD also registered with Cubanacan – the leading Tourism Group in Cuba in order to make
a cooperative investment in a five-star hotel on a site of 9.22 hectares at Santa Lucia, Camaguey City.
The third project is the cooperation with Gran Caribe to renovate the Capri hotel in La Habana City.
th
In the morning of September 24 , 2008, AZ AMAZING has opened its new member - Toan My Gia Real
Estate Co., Ltd (TMGREAL) - and officially opened Toan My Gia Real Estate transaction center at 37
Huynh Tinh Cua Street, Ward 8, District 3, HCM city.
On this occasion, AZ-Amazing, Hoa Phat Land, CityLand, TMGREAL and Coldwell Banker Viet Nam
also signed a contract for a comprehensive cooperation in the field of real estate business.
Thu Duc Housing Development JSC (TDH) is planning to implement the project of investment,
development and trade for housing areas at California and Missisippi (America) with a total investment of
6 million USD.
TDH will have a joint venture with another company based at California. Then, this joint venture will
invest in the housing construction at Missisippi.
th
February 25 , 2008 has inaugurated Saigonland standard real estate transaction center at 631 Le Hong
Phong Street, Ward 10, District 10 on a site of 400 m2.
The center includes full modern equipments with functions and services such as: real estate and assest
brokerage, assessment and aution; construction design consultancy, legal-financial investment
consultancy; training, practising, offering refresher courses to learners in terms of real estate.
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 A50 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
Three more high-rise apartment
buildings at Co Nhue new urban
area
Kinh Te Do Thi – 22 Sep, 2008
Dat Xanh invests in the apartments
at District 12
VietRees – 23 Sep, 2008
Starting construction of Happy Plaza
apartment building
Thanh Nien – 23 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 A50 Page 5
Nam Cuong Group has implemented the construction of 3 high-rise apartment buildings at Co Nhue new
urban area, Co Nhue commune, Tu Liem suburban district.
The project includes CT1, CT2 building clusters of 13 storeys; CT3 building cluster (including four A, B,
C, D buildings of from 15 to 18 storeys) with 680 apartments on a site of 90 – 250 m2. Each building is
equipped with 3 elevators and 2 stairwells.
Dat Xanh Real Estate Constructions and Service JSC has cooperated with Truong Son Vanguard Youth
General Squad to build Thien Quy apartment project at Thanh Xuan ward, district 12, HCM city in order
to make the reserve of house for the average income people.
With a total investment of 157.5 billion VND, the project is located on a site of 6626.3 m2, including 14
storeys with 216 apartments of 50 – 110 m2. This project is designed by Saigon Auditing & Consulting
Co. It is scheduled to be commenced in early November, 2008 and completed after 24 months. Thien
Quy apartments are designed with the accompanying amenities: sport centers, trade centers,
hospitals,kindergartens, parks and etc.
Thanh Tung private enetrepriese has chosen Binh Dinh Construction Company to be the contractor in
charge of the pile drilling for the project Happy Plaza apartment building located at land plot A10, Tan
kien Commune, Binh Chanh Suburban District, HCMC.
The project is built on a site of nearly 1 hectare, including 2 buildings of 24 floors. In which, the ground
floor and the mezzanine floor are used for trade and community activities. The remaining floors are used
for apartments.
Week 3, August 2008 Week 4, September 2008
Hong Thinh Villa Area (Nha Be), Saigon Center Financial Thien Quy apartment buidling (Dist.1), Happy Plaza
Center (Dist.1), Tan Binh Trade Center, Tan Xuan Service apartment building (Binh Chanh)
Area (Hoc Mon)
Mekong City new urban area (Vinh Long), JW Marriott Apartment cluster at Co Nhue urban area (Hanoi), Life
Danang Resort (Da Nang) Resort (DaNang), Song Gia Resort (HaiPhong)
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), Phuoc Thien RA
(Dist.9), 99 Ben Binh Dong AP (Dist.8), Nhon Duc –Phuoc
Kien RA (Nha Be)
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), Tan Binh
office building (Dist.3) commercial – service center (Tan Binh)
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 A50 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 73.6 +
An Phu 2 77.7 23.2
Fideco River View 2 138 33.6
H1 Hoang Dieu 4 70 25
Estella, Dist.2 V- star, Dist.7 Sky Garden 3, Dist.7 Hung Vuong Plaza 5 130 35 +
* 124.6m2 – 2,100 USD/m2 * 119.2m2 – 18 million VND/m2 * 81m2 – 31.5 million VND/m2
Grandview 7 118 44.8
* 161m2 – 28.3 million VND/m2
Parkview 7 100 35
E-Home 9 60 16 +
Green Building 9 92.8 22.4
Thuan Viet 11 77 24.9
Botanic PN 93 31.2
Sunview Building TD 88.5 10
Ruby Land TP 116 17
Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 Development land lots – HCMC
* 115m2 – 29 million VND/m2 * 82m2 – 23 million VND/m2 * 112m2 – 1,800 USD/m2 Thanh My Loi 2 200 16 +
* 135m2 – 31million VND/m2 * 94m2 – 20.3 million VND/m2 * 119m2 – 2,200 USD/m2
The ky 21 2 236 22
Direct contact with the investor1
Him Lam – Kenh Te 7 100 36 +
Nam Thong 2 7 144 58
Van Phat Hung 7 220.5 21 -
Hai Yen BC 105 8.8
Kien Cuong BC 105 17
Phi Long BC 99 11.5
Sadeco – Phuoc Kieng NB 200 11
Apartment building - Ha Noi
Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh
Dich Vong CG 84 20
* 154.7m2 – 2,200 USD/m2 * 121m2 – 41.3 million VND/m2 * 84.5m2 – 3,150 USD/m2
Nam Trung Yen CG 66.2 19.6
* 144m2 – 45.8 million VND/m2 * 135m2 – 3,000 USD/m2
Vimexco CG 96 27
Lang Ha DD 164 29 +
Vincom Residence HBT 83 57.6
Dai Kim HM 122 14.5
Phap Van HM 93 13 +
Development land lots – Other provinces
My Phuoc 3 BD 300 1.9 +
Vinh Phu 2 BD 143 6
The Vista, Dist.2 BMC Hung Long, Dist.7 The Manor, B.Thanh Khang Linh BR-VT 80 5.4 +
* 135m2 – 1,700 USD/m2 * 80m2 – 22 million VND/m2 * 98m2 – 2,700 USD/m2 Lan Anh 5 BR-VT 100 2.5
* 142m2 – 2,100 USD/m2 * 102.6m2 – 21.8 million * 124m2 – 3,000 USD/m2 HUD DNI 120 2.8 +
VND/m2
Licogi DNI 240 2.8

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 A50 Page 7

PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS

Social wefare houses for worker
VietRees
* Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1,
Linh Trung Ward, Thu Duc Dist, HCMC. The is .
* 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.
* 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.

Real estate for the low income
VietRees
* Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment
Building in District 12 with 1,000 apartments.
* Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & Tien
Phuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2.
* HCM City People’s Committee will advance 50.5 billion to carry out the project of Vinh Loc B, Binh
Chanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks.
* Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District.
* HCM City Cooperative Alliance has developed its construction investment project of housing area at Le
Minh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares.
* 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve
resettlement demand in the district.
* Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500-700 millions VND/unit.
* People‘s Committee of HCMC has approved the project of the resettlement area on a site of 55.24
hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi.
* House management of Dist.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, Thu
Duc district.
* In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement area
project, Binh Tan District for the civil servants at Binh Tan District.
* People’s Committee of Binh Chanh has just cooperated with Hung Vuong university Investment &
Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district.
* People’s Committee of HCM City has just licensed Cho Lon Real Estate JSC to invest in the
construction of the apartment 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
District and Dong Hung Thuan1, 2 apartment buildings (District 12) to serve the resettlement of the locals
at Tham Luong project - Ben Cat - Nuoc Len ditch.

Dwellings for overseas Vietnamese The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas
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
REAL ESTATE LEGISLATION
There must be supervisors for
construction survey activities
Ha Noi Moi - 23 Sep, 2008
Legal capital is not needed for
real estate service business?
Phap Luat – 23 Sep, 2008
Free register for weekly newsletter: Please send your email to marketnews@VietRees.com * Sponsor and advestising: T: (08) 948 5574 - E: properties@VietRees.com
www.VietRees.com Viet Nam Real Estate Newsletter A50 Page 8
According to the official document No.1912/BXD-HDXD that was promulgated by Ministry of
nd
Construction on September 22 , 2008 and provides guidelines on the certificate of supervising
construction survey activities, it is ruled that to manage the quality of construction works, the
construction survey must be supervised constantly.
The investors have to assign the people with suitable professional qualifications to supervise the
construction survey activities. In the case of having no professionally qualified people, investors can hire
the people to perform the supervision.
Currently, the government has not had regulations on granting the certificates of supervising
construction survey activities. However, the individuals who want to take part in the construction
activities should have the qualifications or certificates suitable for the undertaken works. These
qualifications or certificates should be issued by legal training centers. Therefore, the investors need to
consider and assign (or hire) the professionally qualified people who are trained and experienced in the
supervising tasks suitable for the undertaken works.
nd
On September 22 , 2008, the Ministry of Construction has sent Hanoi Department of Planning and
Investment an official document No.1917/BXD – HDXD to provide guidelines on the operation conditions
for real estate including real estate business and real estate service business.
Accordingly, the enterprises that do real estate business should meet the conditions (regulated at the
real estate business law and the Decree No. 153/2007/ ND-CP of the government) and have legal
capital of 6 billion VND. Regarding the enterprises that do real estate service business (brokerage,
assessment, consulting and etc), there is no regulation on legal capital.
These are legal foundations for Hanoi Department of Planning and Investment as well as other
functional organizations to consider and answer the queries of the investors...
 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A50 Page 9

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
In general, the situation of real estate transactions in August is slowler than July due to the psychology
of keeping off buying houses in lunar July. However, selling prices have come back to the uptrend.
Customers have more and more options to buy the properties whose prices are getting closer to their
real values.
According to the surveys of VietRees at the brokerage centers and transaction centers in HCMC, most
of them have had only fews customers in HCMC. However, the prices of the real estate advertised for
sale have levelled off or seen a slight decrease of 2 - 5% as compared with the last month. This reason
of this price increase has been explained that construction materials prices in the past period have gone
up dramatically, inflation has risen, the actual incomes of the people have dropped and most importantly,
the sellers have been expecting the recovery of the market; as a result; the prices have become higher.
Increasing prices have been recorded at the projects in good locations and ensure the progresses of the
construction (the investors are continuing construction) and especially at the projects in which the
houses are about to be handed over or the infrastructures have been somewhat completed and the
construction speed is prompt.

Apartment market The sale and purchase of apartments or house on an installment plan in August, 2008 has drawn
interest from the buyers with real demands. Due to the fact that the banks have tightened real estate
loans, many investors have flexibly implemented the way of selling houses on installment plans for many
years to raise the capital for their projects.
According to the recent market surveys of VietRees, in addition to the previous factors such as location,
prices and convenient traffic; payment method and the money to pay in the first installment when
purchasing project houses are also drawing a lot of interest from buyers.
The apartments with small areas of 50 - 80 m2 and the value of below 600 - 800 million VND are seeing
a sign of decreasing attraction. The reason is that the supply is significantly increasing while the inflation
and the bank interest rates are rising sharply, therefore, the rent is not as high as the bank interest.
Tenants now have more options than before. As a result, many apartments are left vacant because there
is no tenant.

The market of project land plots
Similarly to July, on the whole, land prices have seen no decline and in some cases increased. The
sellers think that the situation has become less difficult and they will not accept any more loss.
Therefore, they will not try to sell properties at all costs like before. Land prices of some projects located
in Nha Be, Dist.2, Dist.7 have risen by 0.5 to 2 million VND/m2. Transactions have appeared on the
market although they are much less than in the beginning of the year.

CONSTRUCTION MATERIAL MARKET

In the past 2 weeks, the cement prices in HCMC and some Southern provinces have been seeing the
Prices of steel, iron and cement signs of sluggishness, even the products of some firms have been decreasing by 1,000 – 2,000
still continue to go down VND/sack. The retail prices of Ha Tien 1 cement and Holcim cement are ranging from 68,000 – 70,000
Edited by VietRees VND/sack. However, the cement prices in some areas have come back to the uptrend, fluctuating
between 68,000 and 73,000 VND/sack.
At HCMC market, the construction steel prices continue to go down as compared with last week. Rolled
steel Ø6, Ø8 is 17,000 VND/kg, falling by 500 VND/kg. Bar steel of all types have dropped by 4,000 –
6,000 VND/bar. The steel and iron enterprises show that the prices of these commodities will continue to
decline due to the fact that the purchasing power is still very weak although the steel factories have also
reduced the steel prices by 700,000 – 800,000 VND/ton and the prices of steel ingots in the world have
nd
also dropped dramatically. In order to deal with those difficulties, on September 22 , 2008, the Ministry
of Finance has decided to reduce the export tax on steel ingots to 10% from 20%. However, Viet Nam
Steel Association has just petitioned Prime Minister for a tax cut to 2% and the route down to 0%.
According to the Association, although the export tax on steel ingots is at 0%, the steel ingots export of
enterprises still suffer losses.

STOCK MARKET

Stocks on two bourses continue In the last session of the week, two bourses have
continued to increase points significantly. Ending the
to thrive first phase, VN-Index has rocketed by 19.83 points (or
Edited by VietRees 4.22%) to close at 490.26 points with over 8 million
traded units. The consecutive order-matching continues
Chart source: Vietstock in an evenful atmosphere. However, the pressure of
Up to date: 26 Sep, 2008 selling out have decreased the points of Vn-Index,
ending the second phase. Vn-Index has added 14.07
points (or 2.99%) to close at 484.50 points with a
significant increase in the total trading volume. Ending
the session, Vn-Index has gone up by 13.38 points (or
2.84%) to close at 14.07 points (or 2.99%) to close at
483.81 points.
In sum, after two consecutive weeks of decline, VN-Index has added a total 44.75 points (or 10.19%) as
compared with the point-level at the end of the last week. The transaction on the whole market has been
improved as compared with the session yesterday. The whole market has seen 22.350 traded units
worth 874.114 billion VND with a 25% increase in the trading volume and value as compared with the
previous session.
At Hanoi bourse, HASTC – Index has increased by 3.27 points(or 2.08%) to close at 160.31 points. The
transaction has seen a large number of 13.39 million traded shares with a turnover of 495.45 billion
VND.

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