Cost-Handbook-Vietnam-2014-Langdon & Seah Vietnam Co LTD PDF

2
LANGDON & SEAH VIETNAM CO LTD
Copyright Statement and information caveat

Seventh Edition 2014
Langdon & Seah Vietnam Co Ltd
All rights reserved. No part of this publication
may be produced, copied, stored or transmitted
in any form without prior written permission from
Langdon & Seah Vietnam Co Ltd.
The information contained herein should be
regarded as indicative and for general guidance
only. Langdon & Seah Vietnam Co Ltd makes
no representation, expressed or implied, with
regard to the accuracy of the information herein
and cannot accept any responsibility or liability
for any errors or omissions that may be made.
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handbook are current as at 4th Quarter 2013.
Credits to KPMG, Jardine Lloyd Thompson.

CB Richard Ellis.
Langdon & Seah Vietnam Co Ltd would like to
acknowledge the invaluable support and advice from
the following organisations:
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http://www.kpmg.com
-DUGLQH/OR\G7KRPSVRQ
http://www.jltasia.com
&%5LFKDUG(OOLV
http://www.cbrevietnam.com
Project featured on Cover Page:

1. The One, Ho Chi Minh City, Vietnam
(upper left side)
2. Pullman Saigon Center, Ho Chi Minh City, Vietnam
(middle)
3. Saigon Center Phase 2&3, Ho Chi Minh City, Vietnam
(upper right side)
4. Lavenue Crown, Ho Chi Minh City, Vietnam
(lower left side)
5. Marriott Hotel, Ha Noi City, Vietnam
(lower right side)
TABLE OF CONTENT
3DJH1R
Table of Content
Calendars
Introduction
6
8
9
1. CONSTRUCTION COST DATA

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Construction Costs for Selected Asian Cities
0 (&RVWVIRU6HOHFWHG$VLDQ&LWLHV

Utility Costs for Selected Asian Cities

32

48
2. GENERAL CONSTRUCTION DATA

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Import Duties
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56

3. PROPERTY INVESTMENT
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Contractor Selection Strategies
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81

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4. VIETNAM BUSINESS ENVIRONMENT
Language
Accounting System
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Taxation
Insurance
:RUNIRUFH

96
96

100
104

27+(5,1)250$7,21
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IDD Codes and Time Differences
Conversion Factors
Some Interesting Facts
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126
128
130

CALENDARS
S M
S M
S
1
2014
S M
30 31
S
1
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
2 3 4 5 6 7 8
9 10 11 12 13 14 15
2 3 4 5 6 7 8
9 10 11 12 13 14 15
19 20 21 22 23 24 25
26 27 28 29 30 31
16 17 18 19 20 21 22
23 24 25 26 27 28
16 17 18 19 20 21 22
23 24 25 26 27 28 29
S M
S M
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
JAN
6
13
20
27
T W
1 2
7 8 9
14 15 16
21 22 23
28 29 30
T
3
10
17
24
APR
S M
T
1
W
2
T
3
F
4
11
18
25
F
4
S
5
12
19
26
S
5
FEB
4
11
18
25
T W T
1
5 6 7 8
12 13 14 15
19 20 21 22
26 27 28 29
S
3
10
17
24
31
F
1
S
2
MAY
A
3 4 5 6 7 8 9
10 11 12 13 14 15 16
20 21 22 23 24 25 26
27 28 29 30 31
17 18 19 20 21 22 23
24 25 26 27 28 29 30
21 22 23 24 25 26 27
28 29 30
S M
S M
30
2 3
S M
1
7 8
T
2
9
F S
3 4
10 11
OCT
29 30
6 7 8 9 10 11 12
13 14 15 16 17 18 19
W
1
8
JUN
15 16 17 18 19 20 21
22 23 24 25 26 27 28
S M T W T
1 2 3 4
7 8 9 10 11
14 15 16 17 18
JUL
S M
31
F
2
9
16
23
30
MAR
AUG
T
NOV
S
1
8
SEP
F S
5 6
12 13
19 20
T W T F S
2 3 4 5 6
9 10 11 12 13
DEC
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31
S M
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
15 16 17 18 19 20 21
22 23 24 25 26 27 28
2015
T
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
JAN
18 19 20 21 22 23 24
25 26 27 28 29 30 31
S M
W
1
8
T
2
9
F S
3 4
10 11
APR
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
S M
5
T
7
W
1
8
T
2
9
F S
3 4
10 11
JUL
FEB
S M
31
F
1
S
2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
S M T
1 2
7 8 9
14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
21 22 23 24 25 26 27
28 29 30
S M
S M
MAY
A
30 31
2 3
T
4
W
5
T
6
1
8
AUG
12 13 14 15 16 17 18
19 20 21 22 23 24 25
9 10 11 12 13 14 15
16 17 18 19 20 21 22
26 27 28 29 30 31
23 24 25 26 27 28 29
S M
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
OCT
18 19 20 21 22 23 24
25 26 27 28 29 30 31
MAR
29 30 31
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
NOV
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
W T F S
3 4 5 6
10 11 12 13
17 18 19 20
JUN
T
1
6 7 8
13 14 15
W
2
9
16
T
3
10
17
SEP
F S
4 5
11 12
18 19
20 21 22 23 24 25 26
27 28 29 30
S M
T
1
6 7 8
13 14 15
W
2
9
16
T
3
10
17
F S
4 5
11 12
18 19
DEC
20 21 22 23 24 25 26
27 28 29 30
INTRODUCTION
INTRODUCTION
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future annually published handbooks, focuses on the
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major cities in Asia.
The handbook is structured to serve as a general
reference guide on construction cost indicators in Asia.
The information contained in this handbook has been
compiled by Langdon & Seah Vietnam Co Ltd. Any
further information and/or if advice relating to particular
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Langdon & Seah Vietnam Co Ltd
INTRODUCTION
CONSTRUCTION COST DATA
Construction Market 2014 Outlook

Major Rates for Selected Asian Cities
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Construction Costs for Selected Asian Cities
M&E Costs for Selected Asian Cities
Utility Costs for Selected Asian Cities

CONSTRUCTION MARKET 2014 OUTLOOK
Whether it is good or evil, whether life in itself is pain
RUSOHDVXUHZKHWKHULWLVXQFHUWDLQWKDWLWPD\SHUKDSV
EHWKLVLVQRWLPSRUWDQWEXWWKHXQLW\RIWKHZRUOGWKH
coherence of all events, the embracing of the big and
the small from the same stream, from the same law of
cause, of becoming and dying.
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and who lived through the tempest and maelstrom
of early twentieth century Europe. As in the times of
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uncertain times.
As our global economy moves forward the world has in

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economic events, notably on a global shared philosophy
of liberal trade as witnessed through the expansion of
various regional trade pacts.
What does remain incoherent however is the dichotomy of
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to over perform in 2014. Quantitative easing has caused
much of the growth in markets over the last 18 months but
soon the QE will reduce and the debts and expectations will
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economies and markets in the medium term.
12
There remain some good news and some bad news

for the future and all of this only leads us to look ahead
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THE GLOBAL ECONOMY 2014

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growth below 2% and the Euro zone is disturbingly
only forecasting 0.5 to 1% growth.
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of the 18th Central Committee will initiate both social
demographic changes, such as the relaxation of the
one child policy and economic reforms in respect to
the potential opening up of markets which are currently
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IROORZLQJ 3ULPH 0LQLVWHU $EHV VLJQLILFDQW ILVFDO
injections and monetary easing will now further
develop his third initiative which will focus on
structural reforms to develop a more flexible and
liberal market place. These measures in China
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growth in 2014.
It is most likely however that the economic growth driver
for 2014 will be Asia whilst the West will be coming
to terms with debt issues that have emanated from
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since the Second World War, demographics tailwinds
are becoming headwinds through aging populations,
banks are still recovering and building up capital and
thus credit lines to business remain constrained.
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World has at least emerged from the worst economic
crisis since the 1940s with some positives. Notably
import substitution and global protectionism have not
13

CONSTRUCTION MARKET 2014 OUTLOOK
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in recent years but we have started to witness some
further developments in 2013. There have also been
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between Canada and Europe.
The trading blocks which are evolving are seen as
both a reaction to the recent limited development of
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of free trade and it is positive that these blocks have
increased their participants and in retaliation to
the risk of trade protectionism which had failed to
emerge since the 2008 crisis.
THE VIETNAM ECONOMY 2014
14
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an improvement both upon our prediction at the
beginning of the year and particularly upon the
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will generally be attributable to; exports (Vietnam
is producing trade surpluses) and an increase in
Foreign Direct Investment.
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although interest rates have been falling there remains
a capping on funding into the domestic sector.
The level of nonperforming loans compared with
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that money supply to the economy will remain
constrained and until the level of nonperforming
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issue has recently been active on various debt
purchasing schemes.
State Investment has been falling since 2009 stimulus
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for the infrastructure sector but we are noticing after
a rather procrastinated period that there is activity in
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Industry (DTI) through funding and cooperation with
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a framework of workable legislation and furthermore
various initiatives agencies are being established in
collaboration with the private sector.
CONSTRUCTION MARKET 2013
The macro position as described above has severely
affected the construction market in Vietnam and
construction output had fallen in 2011 and 2012 there
ZDVPLQLPDOSLFNXSLQEXWVWLOOZHOOEHORZ*'3
growth and we do not expect much excitement
within the construction market in 2014. Although we
note the increase in FDI into Vietnam we suspect this
will be focused upon asset purchase in an oversupplied
market rather than on construction.
The infrastructure market yields opportunities and
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There is a desperate need for all forms of infrastructure
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considered and developed by the government as
mentioned above we have seen some greater activities
in this sector over the past 12 months.
15
1,544 1,155

16

1,000
1,500
2,000
2,500
3,000
3,500
4,000

FDI BY SECTORS AS OF NOVEMBER 2013
Sector
No. of
projects
1 Industry and construction 12,518

0DQXIDFWXULQJ

405

12,484
342

92%
1,020
9,830
3,630
0LQLQJ
81
3,262
2,606
Electricity, gas and

water production and
distribution
91
9,530
2,043
Information and
Communication
903
3,995
2,241

3,315

31
1,285
316
501
3,354

2%
2,581
13,022

6%
Water supply & Waste

treatment

122,168
Accommodation
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Construction

Registered Legal
Legal
Capital
Capital Capital
(mn US$) (mn US$) (%)
Agriculture & Forestry &

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3 Service
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IT
Art & Entertainment
141

Logistics

1,083
)LQDQFH%DQNLQJ
Insurance

1,322

+HDOWKFDUH 6RFLDOZHOIDUH
89
1,312

Science & Technology
1,488
1,508
891
Education and Training
169

169
Administration & Support

ing services

194
101
2WKHUV
126

159
15,600
229,233
78,338
Total
100%
(Source: Vietnam Investment Review)
1.35
2'$&RPPLWPHQW
2'$'LVEXUVHPHQW 1.24
0.00
1999
2.15
(Source: Ministry of Planning and Investment)
1998
2.20
Billion US$
1.00
2.00
3.00
4.00
5.00
6.00

8.00
9.00
1.65
2000
2.40
1.50
2001
2.40
1.52
2002
2.46
1.42
2003
2.83
1.65
2004
3.44

2005

2006
4.44
2.18

5.43
2.25
2008
5.91
4.10
2009
8.06
3.54
2010

3.65
2011

3.65
2012

4.50
2013

VIETNAM ANNUAL ODA
19
20
(Source: General Statistics Office)
5.8
5.89 6.05 6.23 6.35 6.62 6.96 6.48 6.65 6.41 5.04
2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013f
3URSRUWLRQRI*'3 5.35
1
PROPORTION OF GDP (%)
1.63
(Source: General Statistics Office)
1.94

2.39
2.82
3.35
4.09
4.94
5.8
6.19

5.08
5.82
2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013f
Note: 2013 from Jan to Sep
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Billion US$
CONSTRUCTION OUTPUT
21
22
21,000 - 22,900
178,000 - 195,000
225,000 - 250,000
164,000 - 175,000
kg
kg
m2
m2
7. Mild steel rod reinforcement
8. High tensile rod reinforcement
6DZQIRUPZRUNWRVRIWVRIVXVSHQGHGVODEV
6DZQIRUPZRUNWRFROXPQVDQGZDOOV
1,730,000 - 1,900,000 270 - 300
11. 112.5mm thick brick walls
1,315,000 - 1,500,000 270 - 290
m3
6. Reinforced concrete grade 30
21,000 - 23,200
40 - 50
40 - 50
40 - 50
3.70 - 4.20
3.70 - 4.20
60 - 70
m3
20 - 25
5. Mass concrete grade 15
66,000 - 72,000
m3
330,000 - 365,000
18 - 22
18 - 22
+DUGFRUHEHGEOLQGHGZLWKQHPDWHULDOV
70,000 - 77,000
RM
12
850
480
17.50
15.00
150
150
150
1.10
27.50
15.00
12
1.10
28.50
480
1,050
900
330
35
40
30
RP000
JAKARTA#
130.00
124.00
43.00
3.00
3.20
3.60
B$
BRUNEI
2,700
2,200
600
120
150
150
BAHT
KUALA
BANGKOK#
LUMPUR
3. Remove excavated materials off site
64,000 - 70,000
m3
2. Excavating for footings not exceeding 1.5m deep
VND
1. Excavating basement not exceeding 2m deep
Unit
HO CHI MINH#
DESCRIPTION
1
MAJOR RATES FOR SELECTED ASIAN CITIES
23
33,000 - 36.200
kg
kg
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6WHHOZRUNDQJOHVFKDQQHOVDWVDQGWKHOLNH
475,000 - 520,000
m2
$OXPLQLXPFDVHPHQWZLQGRZVVLQJOHJOD]HG
70,000 - 77,000
230,000 - 255,000
298,000 - 625,000
m2
m2
m2
17. 20mm Cement and sand (1:4) plaster to walls
&HUDPLFWLOHVEHGGHGWRRRUVFUHHGPV
PPEURXVSODVWHUERDUGFHLOLQJOLQLQJ
Average expected preliminaries
8 - 12
6 - 12
3.50 - 4.50
30 - 45
50 - 70
18 - 25
18 - 25
6.50 - 8.00
6.50 - 8.00
12 - 17
180
800
1,200
200
200
55
55
7,000
1,200
58.00
5-8
5.00
26.00
30.00
8.00
9.00
3.20
3.50
160 - 210
The above costs are at 4th Quarter 2013 levels, exclusive of preliminaries and contingencies unless otherwise stated.
5DWHVDUHQHWWRI9$7
* 5DWHIRUPPJ\PVXPERDUG
7ZRFRDWVRIHPXOVLRQSDLQWWRSODVWHUHGVXUIDFHV
67,000 - 72,000
51,000 - 55,000
16. 25mm Cement and sand (1:3) paving
29,800 - 33,000
55 - 60
2,550,000 - 2,800,000 350 - 500
m2
.OLSORN&RORUERQGPPSUROHGVWHHOVKHHWLQJ
220
6 - 10
25
130*
140
65
55
25
25
1,100
24
900
850
1$
kg
kg
m2
m2
49
m3
5,000
m3
48
3,800
m3
250
3,000
300
350
m3
PHP
MANILA
m3
Unit
DESCRIPTION
30.00 - 35.00
40.00 - 45.00
40.00 - 45.00
1.60 -1.75
1.60 -1.75
300
320
320
10.20
10.20
1,200
1,000
202.00^
155.00 -170.00
800
230
160
170
HK$
HONGKONG
50.00
45.00-50.00
16.50
16.50
S$
SINGAPPORE**
5.00
5.10
70
58
80##
70
70
5.00
5.10
68
500
400
168
105
25
30
RMB
SHANGHAI
571
525
155
33
27
22
RMB
BEIJING
1
25
13 - 17
43.00
290.00
4.80 - 5.80
4.80 - 5.80
11.00
15.50
65.50
30.00
3.50 - 4.00
10 - 15
800
2,500
33
35
120
130
330
500
50
8 - 10
1$
780+
11
10
25
26
130
150
32
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++ 5DWHIRU$OXPLQLXPZLWKDQRGL]HGQLVKPPWKLFN
A5DWHIRUOHDQFRQFUHWHEOLQGLQJ
5DWHLQFOXGLQJGXPSLQJFKDUJHV
5DWHIRUGRXEOHJOD]HGZLQGRZ
5DWHIRUPPWKLFNFRQFUHWHEORFNZDOOV
8 -15
950
9,500++
115
105
350
350
1,200
1,300
400
m2
m2
kg
kg
m2
m2
m2
m2
m2
3-8
1$
650
12.00
10.00
35
28
160
170
35
26
6.00
55
55
60
m3
kg
kg
m2
m2
500
m3
450
m3
6.00
68
170
20
m3
25
50
65
65
5.50
5.50
400
360
130
45
40
18
RMB
RMB
Unit
CHONGQING/
CHENGDU
SHENZHEN/
GUANGZHOU
DESCRIPTION
5.70
5.50
70
80
70
82
82
5.70
5.70
80
500
420
170
30
33
28
RMB
DALIAN
500
410
150
35
25
22
RMB
SHENYANG
1

180
25
m2
m2
m2
5 -10
1$
5 -10
30
150
130
22
28
10.00
10
750+
1$
5 -10
30
120
165
26
25
11.32
11
700+
5DWHIRUGRXEOHJOD]HGZLQGRZ
130
m2
20
kg
20
kg
10.00
m2
10
1$
550
m2
1$
5 -10
32
140
140
40
37
12.00
12
700+
28
10
250
250
280
m3
m3
kg
kg
m2
m2
1,050
m3
1,000
10
80
850
110
130
m3
MOP
MACAU
m3
Unit
DESCRIPTION
810
550
525
63
61
5,600
4,750
3,450
NA
165
145
Rs
INDIA@
43,000
25,200
25,200
1,145
1,120
75,500
62,400
28,500
9,700
1,850
1,850
KRW
SEOUL^^
1
29
35
m2
kg
kg
7 - 11
160
950
1,250
295
360
95
95
4800
1250
37,900
6 - 11
7,750
25,500
63,000
8,500
3,050
1,500
1,450
310,000
@ All UDWHVDERYHDUH6XSSO\ )L[EDVHGRQSURMHFWVLQ%DQJDORUHDQGDUHQHWWRI9$7DQG6HUYLFH7D[0XPEDLFRVWVDUHJHQHUDOO\KLJKHU
AA5DWHVLQFOXGHODERXUFRVWVDQGDUHQHWWRI9$7
6 - 12
120
m2
450
m2
500
m2
120
100
35
1$
2,100
m2
30
Detached houses, high end
Terraced houses, average standard
Apartment, high rise, high end
INDUSTRIAL
HOTELS
OUTLINE SPECIFICATION
,QFOXGLQJSXEOLFDUHDWRXWDQG0 (EXWH[FOXGLQJVKRSWRXW
$SDUWPHQWXQLWVZLWKWRXWLQFOXGLQJDLUFRQGLWLRQLQJNLWFKHQFDELQHWVDQGKRPHDSSOLDQFHV
EXWH[FOXGLQJGHFRUDWLYHOLJKWWWLQJVDQGORRVHIXUQLWXUH
$SDUWPHQWXQLWVZLWKJRRGTXDOLW\WRXWLQFOXGLQJDLUFRQGLWLRQLQJNLWFKHQFDELQHWVDQGKRPH
DSSOLDQFHVEXWH[FOXGLQJGHFRUDWLYHOLJKWWWLQJVDQGORRVHIXUQLWXUH
+RXVHV ZLWK WRXW LQFOXGLQJ DLUFRQGLWLRQLQJ NLWFKHQ FDELQHWV DQG KRPH DSSOLDQFHV EXW
H[FOXGLQJGHFRUDWLYHOLJKWWWLQJVORRVHIXUQLWXUHJDUGHQDQGSDUNLQJ
+RXVHVZLWKJRRGTXDOLW\WRXWLQFOXGLQJDLUFRQGLWLRQLQJNLWFKHQFDELQHWVDQGKRPHDSSOLDQFHV
EXWH[FOXGLQJGHFRUDWLYHOLJKWWWLQJVORRVHIXUQLWXUHJDUGHQDQGSDUNLQJ
5& VWUXFWXUH FXUWDLQ ZDOO LQFOXGLQJ SXEOLF DUHD WRXW WHQDQW DUHD ZLWK UDLVHG RRUFDUSHW
painted wall and false ceiling.
%XVLQHVVKRWHOVWDU
1) Interior decoration
)XUQLWXUH[HGDQGPRYDEOH
6SHFLDOOLJKWWLQJVFKDQGHOLHUVHWF
/X[XU\KRWHOVVWDU
2SHUDWLQJ6XSSOLHVDQG(TXLSPHQW26 (H[FOXGHG
Industrial units, shell only (Conventional single 5& VWUXFWXUH ZLWK VWHHO URRI DQG 0 ( WR PDLQ GLVWULEXWLRQ EXW H[FOXGLQJ DLUFRQGLWLRQLQJ
storey framed unit)
heating and lighting
2ZQHU RSHUDWHG IDFWRULHV ORZ ULVH OLJKW ZHLJKW 5&VWUXFWXUHLQFOXGLQJVPDOORIFHZLWKVLPSOHWRXWDQG0 (EXWH[FOXGLQJDLUFRQGLWLRQLQJ
industry
and heating.
0HGLXPKLJKULVHRIFHVDYHUDJHVWDQGDUG
+LJKULVHRIFHVSUHVWLJHTXDOLW\
OFFICE /
COMMERCIAL 2XWRIWRZQVKRSSLQJFHQWUHDYHUDJHVWDQGDUG
5HWDLOPDOOVKLJKHQG
%XGJHWKRWHOVVWDUPLGPDUNHW
DOMESTIC
Apartment, high rise, average standard
BUILDING
1
CONSTRUCTION COST SPECIFICATION
31
,QFOXGLQJWRXWORRVHIXUQLWXUHDQGDLUFRQGLWLRQLQJ
*HQHUDOKRVSLWDOSXEOLFVHFWRU
([FOXGLQJPHGLFDODQGRSHUDWLQJHTXLSPHQW
Sports clubs, multi purpose sports/leisure centres Dry sports (no swimming pool) and are for leisure type schemes including main sports hall,
GU\ VSRUWV ZLWK DLUFRQGLWLRQLQJ DQG LQFOXGLQJ ancillary sports facilities, changing and showers, restaurant/cafe, bar, ect. Costs include Furni
WXUH)LWWLQJVDQG(TXLSPHQW)) (
FF&E
Notes:
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EXLOGLQJZLOOGHSHQGXSRQWKHGHVLJQDQGPDQ\RWKHUIDFWRUVDQGPD\YDU\IURPWKHJXUHVVKRZQ
7KHFRVWVSHUVTXDUHPHWUHDUHEDVHGRQ&RQVWUXFWLRQ)ORRU$UHDV&)$PHDVXUHGWRWKHRXWVLGHIDFHRIWKHH[WHUQDOZDOOVH[WHUQDOSHULPHWHULQFOXGLQJOLIW
shafts, stairwells, balconies, plant rooms, water tanks and like.
$OOEXLOGLQJVDUHDVVXPHGWRKDYHQREDVHPHQWVH[FHSWRWKHUZLVHVWDWHGDQGDUHEXLOWRQDWJURXQGZLWKQRUPDOVRLODQGVLWHFRQGLWLRQ
7KHFRVWH[FOXGHVVLWHIRUPDWLRQZRUNVH[WHUQDOZRUNVODQGFRVWSURIHVVLRQDOIHHVQDQFHDQGOHJDOH[SHQVHV
4. The standard for each category of building varies from region to region and do not necessary follow that of each other.
5. All costs are in US$/m2 (CFA). Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
OTHERS
,QFOXGLQJWRXWDQGDLUFRQGLWLRQLQJEXWH[FOXGLQJHGXFDWLRQDOHTXLSPHQW
Students residences
5&VWUXFWXUHQDWXUDOYHQWLODWLRQQRIDFDGHHQFORVXUH
Schools (primary and secondary)
0XOWLVWRUH\FDUSDUNVDERYHJURXQGOHYHOV
Underground/basement car park (<3 levels)
32
- 810
- 1,050
- 600
- 850
- 700
- 875
- 445
- 555
1,000 - 1,300
1,300 - 1,500
1,650 - 1,900
690
800
500
650
OFFICE/COMMERCIAL
2XWRIWRZQVKRSSLQJFHQWUHDYHUDJHVWDQGDUG
Retail malls, high end
HOTELS
%XVLQHVVKRWHOVVWDU
/X[XU\KRWHOVVWDU
580
745
385
455
HO CHI MINH##
DOMESTIC
Apartments, high rise, average standard
Apartments, high rise, high end
7HUUDFHGKRXVHVDYHUDJHVWDQGDUG
'HWDFKHGKRXVHVKLJKHQG
DESCRIPTION
885
1,495
825
1,095
610
1,175
410
1,170
1,285 - 1,775
2,225 - 2,570
2,475 - 2,855
770
1,110
685
845
410
980
285
955
KUALA
LUMPUR
804 993 520 791 -
1,104
1,293
820
1,091
820
804 - 1,104
1,136 1,137 - 1,437
865
780 - 1,080
931
1,029 - 1,329
884
1,199
631
1,041
BRUNEI
1,199 - 1,325 1,520 - 1,820

1,515 - 1,736 2,144 - 2,444
1,767 - 1,893 2,201 - 2,501
663 884 663 868 -
694 1,010 505 852 -
BANGKOK##
US$/m2
700
1,040
600
650
720
1,000
440
1,120
1,100 - 1,300
1,500 - 1,700
1,600 - 1,800
630
930
540
600
640
880
340
920
JAKARTA#
1
CONSTRUCTION COSTS FOR SELECTED ASIAN CITIES
33
VND 21,120
1$
- 680
- 395
- 460
- 580
- 775
-
625
350
320
400
810
RM 3.19
1,115 - 1,370
460
270
280
360
745
550 - 615
350 - 460
580
330
435
455
695
410 - 515
350 - 460
BAHT 31.69
1$
568 - 757
189 - 316
1$
1$
1$
1$
521 - 631
IDR 11,400
1$
1,823 - 2,123
B$ 1.24
450 - 550
290 - 320
1$
1$
1,000 - 1,500
320 - 350
290 - 320
1$
412 - 712
603 - 903
705 - 1,005
1,622 - 1,922
505 - 805
371 - 671
The above costs are at 4th Quarter 2013 levels, inclusive of preliminaries and contingencies unless otherwise stated.
5DWHVDUHQHWWRI9$7
5DWHVDUHQHWWRI9$7DQGFRQWLQJHQFLHV
Exchange Rate Used : US$1 =
OTHERS
8QGHUJURXQGEDVHPHQWFDUSDUNVOHYHOV
6FKRROVSULPDU\DQGVHFRQGDU\
6WXGHQWVUHVLGHQFHV
6SRUWVFOXEVPXOWLSXUSRVHVSRUWVOHLVXUHFHQWUHV
GU\VSRUWVZLWKDFDQGLQFOXGLQJ)) (
*HQHUDOKRVSLWDOVSXEOLFVHFWRU
INDUSTRIAL
,QGXVWULDOXQLWVVKHOORQO\&RQYHQWLRQDOVLQJOH
VWRUH\IUDPHGXQLWV
Owner operated factories, low rise, light weight
LQGXVWU\
34
880 - 940
1,200 - 1,250
620 - 700
1,300 - 1,410
840 - 890
1,280 - 1,390
750 - 880
1,100 - 1,140
1,200 - 1,350
1,295 - 1,390
1,600 - 1,670
OFFICE/COMMERCIAL
HOTELS
%XVLQHVVKRWHOVVWDU
/X[XU\KRWHOVVWDU
MANILA*
DOMESTIC
DESCRIPTION
2,480 - 2,680
3,160 - 3,600
3,160 - 3,600
2,000 - 2,200
2,200 - 2440#
2,200 - 2,360
2,360 - 2,600
1,560 - 1,760
2,360 - 3,520
2,000 - 2,240
2,520 - 3,360
SINGAPORE**
3,750 - 4,000
3,950 - 4,550
4,550 - 5,250
2,880 - 3,420
3,630 - 4,400
2,880 - 3,420
3,950 - 4,550
2,880 - 3,420
3,900 - 4,550
3,950 - 4,600
5,300 - 5,850
HONG KONG^
US$/m2
1,305
1,630
980
1,795
735
1,875
570
815
1,060 - 1,305
1,795 - 2,285
2,285 - 2,935
980
1,305
735
1,305
670
1,650
490
735
BEIJING$
1
35
1,080 - 1,480
760 - 1080^^
1$
1,840 - 2,000
2,280 - 2,440
3,160 - 3,320
S$ 1.25
1,350 - 1,500
PHP 43.2
1$
490 - 510
500 - 550
450 - 500
680 - 750
700 - 800
1,200 - 1,450
840 - 1,080
445 - 455
HK$7.80
4,850 - 5,450
2,120 - 2,630
1,260 - 1,470
2,450 - 2,600
2,050 - 2,450
3,550 - 4,050
2,220 - 2,780
1$
735
410
570
410
980
815
490
735
570
1,305
1$
570 - 655
RMB 6.13
1305 - 630
5DWHVDUHH[FOXVLYHRIFRQWLQJHQFLHVDQGLQFOXGH9$7
5DWHVDUHQHWWRI*67DQGH[FOXVLYHRIFRQWLQJHQFLHV
A5DWHVDUHH[FOXVLYHRIFRQWLQJHQFLHV
+RXVHVDUHEXLOWWRVKHOODQGFRUHVWDQGDUG21/<ZKHUHDOOWHQDQWRURFFXSDQWDUHDVDUHXQIXUQLVKHG
,QFOXGHVUDLVHGRRUDQGFHLOLQJWRWHQDQWHGDUHDVEXWH[FOXGHVRIFHFDUSHWVQRUPDOO\XQGHUWHQDQWVWRXW
AA2SHQRQDOOVLGHZLWKSDUDSHW
OTHERS
6WXGHQWVUHVLGHQFHV
INDUSTRIAL
VWRUH\IUDPHGXQLWV
LQGXVWU\
36
735 - 815
1,795 - 1,960
490 - 525
735 - 815
980 - 1,305
1,305 - 1,630
1$
1,385 - 1,795
1,060 - 1,305
1,795 - 2,445
2,445 - 2,935
OFFICE/COMMERCIAL
HOTELS
%XVLQHVVKRWHOVVWDU
/X[XU\KRWHOVVWDU
SHANGHAI$
DOMESTIC
DESCRIPTION
1,060 - 1,170
1,710 - 1,890
2,335 - 2,575
820 - 905
1,125 - 1,245
780 - 860
1,150 - 1,270
565 - 620
935 - 1,035
425 - 470
580 - 640
SHENZHEN
GUANGZHOU$
1,060 - 1,305
1,960 - 2,445
1$
895 - 1,060
1,140 - 1,550
700 - 915
1,225 - 1,630
540 - 685
865 - 1,140
425 - 520
585 - 685
CHONGQING
CHENGDU$
US$/m2
1,075 - 1,190
1,630 - 2,120
1$
895 - 980
1,225 - 1,385
735 - 815
1,225 - 1,385
570 - 655
945 - 1,060
425 - 490
570 - 620
SHENYANG$
1

540 - 865
385 - 425
425 - 470
270 - 300
800 - 885
1$
RMB 6.13
1,630 - 2,120
RMB 6.13
1$
1$
815 - 1,140
410 - 570
570 - 735
410 - 570
1,060 - 1,305
530 - 585
570 - 655
RMB 6.13
1$
1$
375 - 440
1$
1$
1$
1$
490 - 655
1$
620 - 685
375 - 410
1$
1$
1$
1$
1$
RMB 6.13
OTHERS
6WXGHQWVUHVLGHQFHV
INDUSTRIAL
VWRUH\IUDPHGXQLWV
LQGXVWU\
38
620 - 720
1,175 - 1,290
455 - 520
620 - 685
930 - 995
1,270 - 1,340
815 - 915
1,255 - 1,420
1,110 - 1,205
1,875 - 2,120
1$
OFFICE/COMMERCIAL
HOTELS
%XVLQHVVKRWHOVVWDU
/X[XU\KRWHOVVWDU
DALIAN$
DOMESTIC
DESCRIPTION
2,880 - 3,270
3,920 - 4,760
4,760 - 6,010
2,170 - 2,800
2,800 - 3,070
2,040 - 3,070
3,220 - 3,950
1,880 - 2,300
2,620 - 4,010
3,220 - 3,830
3,920 - 5,260
MACAU***
US$/m2
675 - 750
1,050 - 1,250
1,340 - 1,475
360 - 390
450 - 480
350 - 380
500 - 525
475 - 550
725 - 870
325 - 350
430 - 455
INDIA@
1,630 - 1,995
2,360 - 4,080
2,715 - 4,425
1,180 - 1,540
1,400 - 1,860
1,135 - 1,770
1,360 - 2,175
1,225 - 1,500
1,500 - 1,815
1$1$
2,260 - 3,450
SEOUL##
1
39
1,560 - 1,880
950 - 1,280
1,880 - 2,250
1,500 - 1,750
1$
1$
MOP 7.99
1$
RMB 6.13
1$
1$
1$
390 - 410
1$
1$
1$
1$
1$
INR 63
550 - 600
230 - 250
180 - 200
225 - 250
250 - 280
500 - 525
295 - 350
275 - 330
KRW 1,110
1$1$
970 - 1,025
545 - 670
1,810 - 1,930
1,080 - 1,150
1,470 - 1,540
1$1$
660 - 810
# 5DWHVDUHEDVHGRQSURMHFWVLQ%DQJDORUHDQGDUHQHWWRI9$7DQG6HUYLFH7D[0XPEDLFRVWVDUHJHQHUDOO\KLJKHU
5DWHVDUHQHWWRI9$7DQGH[FOXVLYHRIFRQWLQJHQFLHV
5DWHDQGH[FOXVLYHRIFRQWLQJHQFLHVDQGDQ\PDQDJHPHQWFRQWUDFWIHH
OTHERS
6WXGHQWVUHVLGHQFHV
INDUSTRIAL
VWRUH\IUDPHGXQLWV
LQGXVWU\
40
1,665,000 - 2,373,000
1$
1$
1$
1,330,000 - 1,822,000
2,005,000 - 2,390,000
1$
1$
1$
1,768,000 - 2,233,000
275,000 - 524,000
ELECTRICAL SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
HYDRAULIC SERVICES
2IFHV
VND/m2
HO CHI MINH
MECHANICAL SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
DESCRIPTION
25 - 55
225 - 465
140 - 157
260 - 600
200 - 275
85 - 215
355 - 460
60 - 90
285 - 460
285 - 410
205 - 290
RM/m2
790 - 950
3,300 - 3,500
1,950 - 2,090
3,850 - 4,350
2,600 - ,3050
2,990 - 3,520
4,500 - 4,900
1,550 - 1,590
4,800 - 5,200
4,600 - 4,900
4,500 - 4,600
BAHT/m2
KUALA
BANGKOK##
LUMPUR
16 - 39
233 - 292
194 - 233
292 - 381
221 - 317
252 - 317
181 - 226
23 - 39
292 - 336
207 - 246
214 - 246
B$/m2
BRUNEI
150 - 230
630 - 840
350 - 550
630 - 890
550 - 700
630 - 840
780 - 920
240 - 560
780 - 1050
690 - 830
690 - 900
RP000/m2
JAKARTA$
1
M&E COSTS FOR SELECTED ASIAN CITIES
41
645,000 - 1,070,000
1$
1$
1$
440,000 - 554,000
590,000 - 1,125,000
1$
1$
1,200,000 - 1,700,000
670,000 - 970,000
FIRE SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
LIFTS/ESCALATORS
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
88 - 400
54 - 190
85 - 370
85 - 110
63 - 105
60 - 80
45 - 65
65 - 95
65 - 86
20 - 25
36 - 45
175 - 240
25 - 30
18 - 45
1,100 - 1,150
1$
1,100 - 1,190
230 - 490
500 - 580
790 - 860
730 - 750
790 - 890
790 - 850
790 - 890
750 - 790
1,500 - 1,750
810 - 950
1,205 - 1,420
9 - 32
4 - 19
12 - 45
12 - 36
11 - 26
32 - 39
12 - 19
26 - 49
32 - 66
26 - 52
11 - 19
61 - 84
12 - 41
38 - 60
330 - 900
1$
330 - 840
250 - 670
320 - 670
210 - 310
90 - 160
210 - 310
210 - 250
210 - 250
90 - 160
630 - 910
150 - 230
630 - 900
The above costs are at 4th Quarter 2013 levels, exclusive of contingencies unless otherwise stated.
*HQHUDOO\ZLWKRXW$&
** Excludes special power supply.
5DWHVDUHEDVHGRQQHWWHQFORVHGDUHDDQGQHWWRI9$7
$OOUDWHVDUHQHWWRI9$75DWHVIRU(OHFWULFDO6HUYLFHVDUHH[FOXGLQJJHQVHW5DWHVIRU+\GUDXOLF6HUYLFHVDUHH[FOXGLQJ673
5DWHVIRU0HFKDQLFDO6HUYLFHVUHIHUVWR$&095DWHVRQO\
1$
1$
1$
536,000 - 534,000
,QGXVWULDO
Hotels
Shopping Centres
Apartment
42
3,000 - 4,300
650 - 1,500
3,000 - 6,500
2,125 - 4,500
600 - 3,000
3,300 - 6,000
2,000 - 3,500
4,700 - 9,000
3,060 - 6,000
3,600 - 6,300
900 - 2,000
ELECTRICAL SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
HYDRAULIC SERVICES
2IFHV
PESOS/m
MANILA^
MECHANICAL SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
DESCRIPTION
30 - 60
175 - 280
55 - 145
200 - 385
170 - 330
110 - 250
180 - 290
35 - 130
150 - 325
170 - 285
100 - 190
S$/m
SINGAPORE^^
350 - 450
1,550 - 2,300
550 - 800
1,800 - 2,500
1,700 - 2,300
1,000 - 1,550
1,800 - 2,500
100 - 200
2,000 - 2,500
2,100 - 2,600
750 - 1,550
HK$/m
HONG KONG
95 - 140
460 - 670
320 - 450
705 - 898
481 - 663
253 - 386
760 - 1000
170 - 280
910 - 1110
790 - 950
140 - 380
RMB/m2
BEIJING
1
43
70 - 180
45 - 115
55 - 120
60 - 100
45 - 125
35 - 60
25 - 55
30 - 60
40 - 60
25 - 55
20 - 40
100 - 195
50 - 90
80 - 160
700 - 1,200
550 - 750
550 - 850
850 - 1,000
450 - 850
500 - 650
300 - 400
500 - 700
500 - 650
100 - 150
200 - 300
900 - 1,200
350 - 450
650 - 1,000
*HQHUDOO\ZLWKRXW$&
^ Transformer included in Electrical Services.
AA5DWHVDUHQHWWRI*67DQGDUHH[FOXGLQJ%$6
1,600 - 2,900
1$
1,800 - 3,000
595 - 2,000
800 - 1,800
650 - 1,200
600 - 900
650 - 1,100
550 - 9,00
600 - 1,300
FIRE SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
LIFTS/ESCALATORS
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
700 - 1,300
1,950 - 4,000
595 - 1,400
1,400 - 2,600
,QGXVWULDO
Hotels
Shopping Centres
Apartment
294 - 577
145 - 400
232 - 520
327 - 520
175 - 289
180 - 265
150 - 225
220 - 375
220 - 375
70 - 135
95 - 140
370 - 480
140 - 200
170 - 230
44
593 - 651
305 - 431
651 - 830
520 - 651
252 - 368
110 - 163
ELECTRICAL SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
HYDRAULIC SERVICES
2IFHV
115 - 155
495 - 715
285 - 415
635 - 855
450 - 610
260 - 415
715 - 970
140 - 250
1,000 - 1,250
660 - 890
115 - 355
RMB/m2
RMB/m2
761 - 966
173 - 289
971 - 1,265
1,050 - 1,103
310 - 410
SHENZHEN
GUANGZHOU
SHANGHAI
MECHANICAL SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
DESCRIPTION
1$
1$
1$
2,100 - 2,500
2,100 - 2,300
750 - 1000
1$
1$
2,100 - 2,500
1,800 - 2,400
650 - 800
MOP/m2
MACAU
70 - 130
450 - 700
300 - 400
550 - 800
450 - 700
250 - 350
700 - 1,000
150 - 250
750 - 1,200
600 - 1,000
100 - 300
RMB/m2
CHONGQING
CHENGDU
1
45
220 - 300
150 - 250
280 - 380
250 - 380
50 - 100
280 - 550
135 - 390
220 - 495
325 - 495
165 - 325
FIRE SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
LIFTS/ESCALATORS
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
275 - 450
140 - 405
225 - 435
305 - 430
114 - 250
210 - 325
130 - 250
260 - 386
230 - 345
60 - 115
80 - 105
365 - 460
105 - 140
135 - 240
1$
1$
600 - 800
450 - 700
450 - 600
1$
1$
700 - 900
500 - 600
150 - 200
1$
1,000 - 1,200
350 - 450
650 - 800
*HQHUDOO\ZLWKRXW$&
89 - 131
368 - 488
137 - 184
168 - 226
,QGXVWULDO
Hotels
Shopping Centres
Apartment
350 - 600
150 - 350
300 - 500
300 - 450
140 - 250
180 - 250
150 - 250
200 - 330
220 - 330
50 - 100
70 - 120
300 - 400
70 - 130
120 - 200
46
600 - 700
1$
700 - 800
600 - 900
100 - 300
450 - 650
1$
700 - 900
500 - 600
300 - 400
30 - 120
ELECTRICAL SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
HYDRAULIC SERVICES
2IFHV
RMB/m2
SHENYANG
MECHANICAL SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
DESCRIPTION
70 - 120
470 - 690
1$
720 - 920
520 - 620
220 - 320
600 - 700
1$
700 - 800
600 - 700
100 - 300
RMB/m2
DALIAN
33,000 - 57,000
270,000 - 395,000
125,000 - 165,000
375,000 - 490,000
215,000 - 250,000
140,000 - 180,000
219,000 - 290,000
91,000 - 159,000
210,000 - 340,000
148,000 - 245,000
94,000 - 173,000
KRW/m2
SEOUL#
600 - 900
3,400 - 4,750
2,000 - 3,350
3,800 - 5,200
3,200 - 4,300
1,500 - 2,250
3,800 - 5,400
1,750 - 3,100
4,750 - 5,200
3,700 - 4,850
2,100 - 2,650
INR/m2
INDIA@
1

150 - 230
1$
130 - 230
50 - 150
50 - 130
300 - 550
1$
300 - 500
140 - 230
120 - 250
FIRE SERVICES
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
LIFTS/ESCALATORS
2IFHV
,QGXVWULDO
Hotels
Shopping Centres
Apartment
300 - 550
1$
250 - 350
150 - 250
120 - 200
150 - 230
1$
150 - 230
150 - 200
60 - 150
1$
200 - 300
120 - 170
100 - 150
49,000 - 64,000
16,000 - 25,000
118,000 - 175,000
59,000 - 84,000
29,000 - 41,000
42,000 - 68,000
28,000 - 32,000
58,000 - 91,000
44,000 - 72,000
33,000 - 68,000
21,000 - 32,000
70,000 - 110,000
28,000 - 57,000
49,000 - 75,000
750 - 950
500 - 650
1,100 - 1,600
1,150 - 1,500
700 - 900
950 - 1,250
450 - 600
1,100 - 1,400
900 - 1,050
500 - 600
400 - 700
3,200 - 4800
875 - 1,600
1,400 - 1,950
*HQHUDOO\ZLWKRXW$&
5DWHVDUHQHWWRI9$7
#5DWHVDUHEDVHGRQSURMHFWVLQ%DQJDORUHDQGDUHQHWWRI9$7DQG6HUYLFH7D[0XPEDLFRVWVDUHJHQHUDOO\KLJKHU
1$
200 - 300
120 - 170
100 - 200
,QGXVWULDO
Hotels
Shopping Centres
Apartment
48
GUANGZHOU
BEIJING
BRUNEI
BANGALORE
BANGKOK
KUALA LUMPUR
HO CHI MINH +
COUNTRY
0.058 0.124
Baht : 31.69
WK4XDUWHU
0.07
0.08
0.13
0.13
RMB 6.29
RMB 6.13
RMB 6.29
RMB 6.13
WK4XDUWHU
WK4XDUWHU
WK4XDUWHU
0.008 - 0.12
B$1.24
WK4XDUWHU
0.008 - 0.12
B$1.24
0.039-0.093
WK4XDUWHU
INR 63
WK4XDUWHU
WK4XDUWHU
0.072-0.1814
0.061 0.106
Baht : 30.46
WK4XDUWHU
INR 54
0.068 - 0.142
RM 3.19
WK4XDUWHU
0.071 - 0.148
RM 3.06
WK4XDUWHU
0.279 0.474
0.268 0.456
0.087 0.089
0.084 0.086
0.64
0.65
0.31
0.32
0.13

0.088 - 0.355
0.13
0.088 - 0.355
0.058 - 0.162
0.238-0.572
0.058 - 0.162
0.102-0.118
2.855-5.099
0.179 - 0.627
0.104-0.326
0.186 - 0.654
0.113 - 0.141
0.123 - 0.135
0.56
0.55
1.01
0.99
0.492 - 0.532
0.492 - 0.532
0.952
3.835-6.323
0.300 0.499
0.312 0.519
0.649 - 0.715
0.677 - 0.745

0.25 - 0.54+++

0.111++
WK4XDUWHU
VND 21,120
WK4XDUWHU
0.102

1.40
1.33
1.23
1.24
0.306
0.306
0.921
0.952
0.946
0.978
0.63
0.59
1.06++++
1.05++++
US$/litre
US$/m3
0.23 - 0.53+++
US$/m
Diesel
Commercial/
Industrial
WATER
Domestic
++
US$1=
VND 20,865
US$/kwh
US$/kwh
WK4XDUWHU
Commercial/
Industrial
ELECTRICITY
Domestic
Exchange
Rate Used
1$
1$
1$
1$
0.411
0.411
1$
1$
1$
1$
1$
1$
1$
1$
US$/litre
Unleaded

1.31

0.427
0.427
1.238
1.37

1.242
0.66
0.62
1.13-1.15+++++
1.13-1.16+++++
FUEL
US$/litre
Leaded
1
UTILITY COST FOR SELECTED ASIAN CITIES
49
SINGAPORE^
SEOUL
NEW DELHI
MANILA
JAKARTA
CHONGQING
SHANGHAI
MACAU
HONG KONG
S$ 1.22
S$ 1.25
WK4XDUWHU
WK4XDUWHU
0.21^^
0.22^^
0.06
WK4XDUWHU KRW 1058.40
0.062-0.113
0.08
INR 63
WK4XDUWHU
0.061-0.116

0.100
0.083
0.08
0.09
0.21^^
0.22^^
0.074
1.44^^^
1.48^^^
0.387
0.295
0.240-1.087
0.124-0.142
0.066
0.250 - 1.135

0.111-0.120

0.412
0.119
0.57
0.233
0.095

1.67^^^^
1.71^^^^
1.490
1.398
1.717-3.743
1.792-3.907

1.101
0.442
0.74
0.72
0.82
0.56
0.59

0.59
0.16(peak)
0.077(normal)
0.186(peak)
0.055(normal)
0.098(peak)
0.048(normal)
0.101(peak)
0.050(normal)
0.66ooo
0.66ooo
0.59
0.59
0.47
0.55 to 0.66o
0.16oo
0.16oo
0.83
0.12
0.55 to 0.66o
0.83
0.12
0.16oo
0.16oo
0.1
0.1
WK4XDUWHU KRW 1086.00
INR 54
PHP 43.20
WK4XDUWHU
WK4XDUWHU
PHP 42.00
IDR 11400
WK4XDUWHU
WK4XDUWHU
IDR 9600
RMB 6.13
WK4XDUWHU
WK4XDUWHU
RMB 6.29
RMB 6.13
WK4XDUWHU
WK4XDUWHU
RMB 6.29
MOP 7.99
WK4XDUWHU
WK4XDUWHU
MOP 7.98
HK$ 7.80
WK4XDUWHU
WK4XDUWHU
HK$ 7.80
WK4XDUWHU
1.31^^^^^
1.26^^^^^
1.28
1.63
0.843
0.87
0.976
0.980
0.482
0.442
1.2
1.17
1.25
1.22
1.68
1.55
1.61
1.56
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
1.85^^^^^^
1.77^^^^^^
1.78
1.79
1.127
1.259
1.188
1.255
0.570
0.470

1.27-1.35
1.24-1.31
1.52
1.43
2.12
2.15
50
HO CHI MINH
+
All rates are VAT inclusive

'RPHVWLFHOHFWULFLW\UDWHVDUHDSSOLHGWRWKH.:DERYHZDUGV

+++
Water (used in norm = US$ 0.21; used over norm = US$0.50)
'2

8QOHDGHGSHWURODVDW2FW
BANGKOK

8QOHDGHG *DVRKRO
For normal tariff with consumption not exceeding 150 kWh per month
BEIJING

8QOHDGHGJDVROLQH
GUANGZHOU

8QOHDGHG
HONGKONG
66
(OHFWULFLW\'RPN:K 86N:K 86N:K 86N:K 86N:K

86$ERYHN:K 86%DVHGRQWDULIIVFKHPHRI&/3+ROGLQJ/LPLWHGDQGLVFKDUJHGRQELPRQWKO\FRQVXPSWLRQ
66
:DWHU'RPP )2&P 86P 86P$ERYHP 86P
MACAU
R
:DWHU&RQVXPSWLRQFKDUJH86PIRUPRUEHORZ86PIRUPWRPDQG86PIRUPRUDERYH2WKHUFKDUJHV

'HSHQGLQJRQPHWHUVL]HPPPP0HWHUUHQWDO 86PRQWK
oo
Electricity tariff are composition of demand charges, consumption charges, fuel clause adjustment and government tax
Notes
1
51
&KDUJHVIRURUGLQDU\XVHUVHJ%XVLQHVVJRYHUQPHQWEXLOGLQJVVFKRROVDVVRFLDWLRQVKRVSLWDOVDQGRWKHUVRQO\6SHFLDOXVHUVHJJDPLQJLQGXVWULHV

hotels, saunas, golf courses, construction, public infrastructures and other temporary consumption) are excluded.
SHANGHAI

8QOHDGHG 86OLWUH8QOHDGHG 86OLWUH

CHONGQUING

8QOHDGHG 86OLWUH8QOHDGHG 86OLWUH

MANILA

$FWXDO%LOLQJ,QFOXGHPLVFFKDUJHVVXFKDV(QYLURQPHQWDO&KDUJH&XUUHQF\([FKDQJH5DWHDGMXVWPHQW&(5$9$7HWF

(OHFWULFLW\'RPN:KN:K&RPP,QGN:K:DWHU'RPPP&RPP,QGP
SEOUL
3OXVHOHFWULFLW\EDVLFUDWHVGRPHVWLF86PRQWK86.ZK.:KEHORZLQXVHDQGFRPPHUFLDO86PRQWK86.ZK.:K
below in use)
3OXVZDWHUEDVLFUDWHVGRPHVWLF86PRQWKZLWKLQPXVDJHDQGFRPPHUFLDO86PRQWKZLWKLQPXVDJH
SINGAPORE
A
$OOUDWHVDUHQHWWRI*67

^^
Electricity tariff is based on low tension power supply
AAA
'RPHVWLFZDWHUUDWHLQFOXGHVFRQVHUYDWLRQWD[ ZDWHUERUQHIHHDQGLVDQDYHUDJHIRUWKHVWPH[FOXGHVDQLWDU\DSSOLDQFHIHH
AAAA
1RQGRPHVWLFZDWHUUDWHLQFOXGHVFRQVHUYDWLRQWD[DQGZDWHUERUQHIHHH[FOXGHVDQLWDU\DSSOLDQFHIHH
AAAAA $VDW2FWREHU

AAAAAA 8QOHDGHGSHWURODVDW2FWREHU
RRR
Notes (continued)
GENERAL CONSTRUCTION DATA
Material Price Indices

Import Duties
Progress Payments
Estimating Rules of Thumb
54
Quarter
VND/T
Index
(Base
QI/2008)
,QDWLRQ
Steelbar (D12-D15)
$VND/m
Index
(Base
QI/2008)
,QDWLRQ
Concrete (Grade 250)
0.00%
100.00

0.00%
100.00
11,200,000
I
16.80%
116.80

29.63%
129.63
14,518,000
II
2008
14.36%

904,000
19.20%
154.51

III

125.59
850,000

12,000,000
IV
I
10,940,000

130.00
3.51%
II
10,990,000
98.13
0.46%

130.00
0.00%
2009
III
11,820,000
105.54

130.00
0.00%
IV
12,220,000
109.11
3.38%

130.00
0.00%
I
0.00%
130.00

1.90%
111.18
12,452,500
II
0.00%
130.00

103.48
11,590,000
2010
III
0.00%
130.00

114.55
12,830,000
IV
0.00%
130.00

120.00
13,440,000
I
0.00%
130.00

11.83%
134.20
15,030,000
II
0.00%
130.00

131.52

2011
III
10.25%
143.32

8.11%
142.19
15,925,000
IV
0.00%
143.32

0.00%
142.19
15,925,000
I

139.63
945,000
0.00%
142.19
15,925,000
II
0.00%
139.63
945,000
0.00%
142.19
15,925,000
2012
III
19.29%
166.56

2.48%
16,320,000
IV

163.86
1,109,000
0.00%
16,320,000
I
0.01%

1,109,090
0.00%
16,320,000
II
0.00%

1,109,090

135.45

III
0.00%

1,109,090

120.89
13,540,000
2013
IV
0.00%

1,109,090

120.00
13,440,000
(Source: Ho Chi Minh City Departments of Construction and Departments of Finance Year 2008-2013)
Year
,QDWLRQ
0.00%

31.04%

0.00%
0.00%
0.00%
0.00%

0.00%
2.65%

15.52%
0.00%
0.00%
5.96%
3.49%
0.00%
0.00%
0.00%
0.00%
0.00%
Index
(Base
QI/2008)
100.00
99.69
130.64
130.43
128.59
128.59
128.59
128.59
128.59
124.80

129.41
149.49
149.49
149.49
158.40
163.93
163.93
163.93
163.93
163.93
163.93
$VND/m3

1,255
1,255
1,255
1,255
1,255
1,218
1,209
1,209
1,241
1,263
1,459
1,459
1,459
1,546
1,600
1,600
1,600
1,600
1,600
1,600
Cement (PCB40)
2
MATERIAL PRICE INDICES
55
80.00
90.00
100.00
110.00
120.00
130.00
140.00
150.00
160.00

180.00
II
2008
III I
2009
III I
Steelbar (D1D25)
II
II
2010
III I
II
Concrete (*Uade 250)
V
2011
III I
2012
III I
Cement 3&%40)
II
II
2013
III I

IMPORT DUTIES
MFN/WTO
CEPT
ACFTA
AKFTA
Non-AKFTA
AJCEP 3
VJEPA 2
AANZFTA
AIFTA
VAT Tariff
Marble
kg
10
10
(1)
17
19
20
15
10
Granite
kg
10
10
(1)
17
19
20
15
10
&DUSHQWU\RI:RRG
kg
10
Porland cement
kg
35
20
10
1000
XQLW
35
15
28
30
20
30
10
&HUDPLFURRQJWLOHV
kg
45
15
34
37.5
20
40
10
&HUDPLFRRUKHDUWK
wall tiles
m2
45
15
34
37.5
20
40
10
&HUDPLFVDQLWDU\[WXUHV
of porcelain
kg
35
15
15
35
38
20
40
10
0XOWLSOHZDOOHGLQVXODWLQJ
XQLWVRIJODVV
m2
25
30
30
20
10
*ODVVPLUURUXQIUDPHG
kg
25
30
30
20
10
Concrete steel
kg
15
12.5
10
10
U,I or H section of steel

KHLJKWXQGHUPP
kg
10
18
22
20
10
$OOXPLQLXPGRRUV
windows, frames and
thresholds
m2
15
10
11.5
10
13
10
Air conditioner (window

RUZDOOPRXQWHGQRW
exceeding 26,38 kW
XQLW
30
15
14
13
20
18.5
10
Passenger lifts
XQLW
10
(2)
10
:DWHUSXPS
XQLW
20
21
22.5
20
28
10
Electric genset
XQLW
20
15
30
30
20
10
&HUDPLFEXLOGLQJEULFNV
RRULQJEORFNV
56
Special Tariff
Unit
DESCRIPTION
DOOJXUHV
(1): Thailand
0DOD\VLD7KDLODQG

0)1:72 0RVW)DYRUHG1DWLRQ:RUOG7UDGH2UJDQLVDWLRQ
1RUPDO7D[5DWH )DYRXUHG7D[5DWH[

&(37$)7$ &RPPRQ(IIHFWLYH3UHIHUHQWLDO7DULII6FKHPH$6($1)UHH7UDGH$UHD
$6($1&KLQD)UHH7UDGH$UHD

$&)7$
$6($1.RUHD)UHH7UDGH$UHD

$.)7$
: ASEAN-Japan Comprehensive Economic Partnership
AJCEP 3
: Vietnam-Japan Economic Partnership Agreement
VJEPA 2

$$1=)7$ $XVWUDOLD$6($11HZ=HDODQG)UHH7UDGH$JUHHPHQW
$6($1,QGLD)UHH7UDGH$JUHHPHQW
$,)7$
:KHUHWKH0)1:72WD[WDULIIRIDJRRGVLWHPVSHFLHGLQWKH,PSRUW7DULIILVORZHUWKDQ
Special tariff according to different trade agreement, the import tax tariff applicable to
VXFKJRRGVLWHPVKDOOEHWKH0)1:72WD[WDULII
PROGRESS PAYMENTS
The following graph and table are an indication of the
rate of expenditure for construction projects.
The rate of expenditure is an average rate and will
YDU\ IURP SURMHFW WR SURMHFW ZKHQ VSHFLF SURMHFW
circumstances are taken into account.
No account has been made for retention.
100%
Progress Claims
80%
60%
40%
20%
0%
0%
20%
40%
60%
80%
100%
Project Period
CONTRACT
CUMMULATIVE
PROGRESS
CLAIMS
CONTRACT
PERIOD
CUMMULATIVE
PROGRESS
CLAIMS
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2%
5%
8%
13%
18%
24%
30%
36%
43%
50%
55%
60%
65%

80%
85%
90%
95%
100%

64%
0%

82%

92%
95%
98%
100%


ESTIMATING RULES OF THUMB
Structural Design Concrete Ratios
The following is a range of concrete ratios for building
superstructure design in Viet Nam
&RQFUHWHRRUDUHD P3/m2
)RUPZRUNRRUDUHD P2/m2
5HLQIRUFHPHQW
NJP3
0.5 m3/m2
3.0 m2/m2
250 kg/m3
to
to
to
Average External Wall/Floor Ratio

P2/m2
P2/m2
P2/m2
5HVLGHQWLDO$SDUWPHQWV
2IFH
+RWHO
Average Internal Wall/Floor Ratio
P2/m2
P2/m2
P2/m2
5HVLGHQWLDO$SDUWPHQWV
2IFH
+RWHO
Air - Conditioning
$YHUDJH
57P2RIRRUDUHD

The above ratios are indicative and for reference purposes

only. They do not account for buildings with special shapes,
FRQJXUDWLRQVRUSDUWLFXODUO\VPDOOIRRWSULQWV
Indicative Dimensions for Sports Grounds
Length
58
Tennis Court
6TXDVK&RXUW
%DVNHWEDOO&RXUW
Volleyball Court
%DGPLQWRQ&RXUW
,FH5LQN
6RFFHU3LWFK
40 m
P
P
30 m
P
P
P
Width
20 m
P
P
20 m
P
P
P
The above dimensions are for a single court with appropriate

clearance. No Spectator seating or support area has been
allowed.
Densities of Common Materials
Concrete
Cement
Sand
*UDYHO
6WHHO
2,400 kg/m3
1,441 kg/m3
1,600 kg/m3
NJP3
NJP3
Water
6RIWZRRG
+DUGZRRG
$OXPLQXP
Soil (compact)
1,000 kg/m3
NJP3
NJP3
NJP3
2,100 kg/m3
Concrete Strength (in accordance with TCVN 3118 - 1993)

&</,1'(5
&8%,&
15cm x 30cm 15cm x 15cm
3VL
0SD
0SD

6,000
41
49
5,000
34
41
4,000
28
34
3,000
21
25

&</,1'(5
&8%,&
15cm x 30cm 15cm x 15cm
0SD
3VL
0SD

40
5,800
33
35
5,000
29
30
4,400
25
25
3,600
21

15
2,200
13
03D 3VL
03D&\OLQGHUFP[FP 03D&XELFFP[FP
Reinforcement

Bar Dia.
(mm)

8

20

32
40
Weight/m
(kg/m)

0.395

2.466

6.313
9.864
Perimeter
(mm)

25.13

62.83

100.53
125.66
Area
(mm2)

50.26

314.16

804.25
1256.64
Composition of Concrete (per m3)

0L[
1:3:6
1:2:4
1:1:2
&HPHQW
216 kg
308 kg
540 kg
6DQG
0.45 m3
0.43 m3
0.38 m3
Average Loads
Lorry (24 ton)
Concrete truck (24 ton)
%DUJH
$JJUHJDWH
0.90 m3
0.86 m3
P3
Volume
10.0 m3
5.5 m3
P3
Dimensions for Standard Parking Space,

Loading / Unloading Bays and Lay - bys

/HQJWK

3ULYDWH&DUV7D[LVDQG
Light Vans
5m
&RDFKHVDQG%XVHV
P
Lorries
11 m
Container Vehicles
16 m
:LGWK
0LQLPXP
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2.5 m
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3.5 m
3.5 m
2.4 m
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4.1 m
3.5 m
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and the lower most projection from the ceiling including any
lighting units, ventilation ducts, conduits or similar.
59
PROPERTY INVESTMENT
Building Control and Procedures

Project Closed Out Procedures
Typical Submission Flowchart
Key Planning Parameter
%XLOGLQJ$UHDV'HQLWLRQV
Procurement Strategies
Contractor Selection Strategies
Property Overview
PROPERTY INVESTMENT
BUILDING CONTROL AND PROCEDURES
3URMHFW&ODVVLFDWLRQ
3URMHFWVDUHFDWHJRUL]HGEDVHGRQWKHVFDOHQDWXUH
and source of fund in accordance with Appendix 01
RI WKH 'HFUHH 1'&3 GDWHG )HEUXDU\
2009. Special projects under the jurisdiction of the
3ULPH0LQLVWHUV2IFHHQFRPSDVVWKHPRVWQDWLRQDO
LPSRUWDQWSURMHFWDQGRUWRSVHFXULW\SURMHFW3URMHFWV
FODVVLHG DV *URXS $ XQGHU WKH MXULVGLFWLRQ RI WKH
0LQLVWHUVRI0LQLVWULHVHQFRPSDVVLQIUDVWUXFWXUHDQG
SRUWV VHDSRUWV DQG DLUSRUWV RLO DQG JDV FXOWXUDO
and sensitive projects to national defense and all
SURMHFWVRYHU91'ELOOLRQRUHTXLYDOHQWWR86'
PLOOLRQ *URXS % SURMHFWV HQFRPSDVV DOO RWKHU
SURMHFWVDQGIDOOXQGHUWKHMXULVGLFWLRQRI3URYLQFLDO
3HRSOHV &RPPLWWHHV DQG UHTXLUH UHJLVWUDWLRQ RQO\
for investment licenses and applies to projects with
a manufacturing and export earnings component. A
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for all other projects.
Project Investment Appraisal
62
Developers must carry out the project investment

report (feasibility study report) and the basic design
IRUSURMHFWLQYHVWPHQWDSSUDLVDOLQFOXGLQJWKH3ODQQLQJ
&HUWLFDWHDSSOLHGWRWKH3HRSOHV&RPPLWWHHRIWKH
relevant province. The information of basic design to
be included encompasses address and description
RIODQGSORWIXQFWLRQRIODQGSORWUHGOLQHERXQGDU\
and exit and connection with the existing transportation
and infrastructure including power, water, storm
water drainage, waste water treatment, overall
dimension and existing level, construction boundary,
construction density, plot ratio, schedule of land
XVHDUHDDQGVFKHGXOHRIRRUDUHDPD[LPXPRRU
height and building height, parking lot ratios, principle
of architectural, structure and infrastructure design,
environmental impact plan, fire protection plan,
design standards and building codes. The project
investment appraisal is in accordance with the
CirFXODWLRQ77%;'GDWHG0DUFK
PROPERTY INVESTMENT
Technical Design and Detailed Design

Developers using foreign design consultancies must
ensure their projects undergo a Design Evaluation
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&KDLUPDQRIWKH3HRSOHV&RPPLWWHHRIUHOHYDQWSURYLQFH
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provincial Construction Department. The Technical
Design and Detailed Design must be in line with the
previous approved basic design including the
compliance of design standards and building codes,
the integrity of project, the well protection of environment
DQGWKHVDIHW\LQWKHHYHQWRIUHFLUFXPVWDQFHV
Construction Permit
8QGHU WKH /DZ RQ &RQVWUXFWLRQ LQYHVWRUV PXVW UVW
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construction can commence. The construction permit
LVQRWUHTXLUHGIRUWKHSURMHFWVRIUHVLGHQWLDOGHYHORSPHQW
LQGXVWULDODQGSURFHVVLQJ]RQHVKLWHFKSDUNVKRXVLQJ
development of which the master plan 1/500 was
approved by authority. There are also a few exceptions
to this in case of residential developments which shall
EHJRYHUQHGE\QHZO\SXEOLVKHGODZVRI5HVLGHQWLDO
The investor of residential development projects shall
submit an application dossier of all the mentioned
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,PSDFW $VVHVVPHQW DQG )LUH 3URWHFWLRQ ZKLFK DUH
LVVXHG E\ WKH 3URYLQFLDO 'HSDUWPHQW RI 1DWLRQDO
5HVRXUFHV DQG (QYLURQPHQW DQG 3URYLQFLDO )LUH
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dossier shall contain design implementation
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rental contracts. The basic inclusions are mandatory
and they are location and description of works,
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boundary demarcation, overall site plan, major
cross sections, main elevations, structural framing
plans and foundation designs, environmental and
safety technical details, principle of materials,
PROPERTY INVESTMENT
63
PROPERTY INVESTMENT
BUILDING CONTROL AND PROCEDURES (cond)
schematic line diagrams of infrastructure connection
of power, telecommunication, water supply, storm and
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FRPSRQHQWV &RQVWUXFWLRQ 3HUPLW DSSOLFDWLRQV ZLOO
be checked against various compliances in respect
of boundaries and interference with neighboring
properties and approved planning (site coverage, plot
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WLPHO\QRWLFHWRWKHLQYHVWRURIDQ\QRQFRPSOLDQFHIRU
their remedy and resubmission to allow the implementation
stage to commence.
Site Clearance
A plan for site clearance and/or resettlement shall be

submitted at the same time as the application for the
investment license and resettlement carried out prior to
site clearance taking place for construction. The time
limit for site clearance should comply with the project
LPSOHPHQWDWLRQVFKHGXOH5HVHWWOHPHQWLVEDVHGRQWKH
principle of providing similar or better conditions and
governmental regulations on principles, methods and
D SULFH IUDPHZRUN VKDOO EH DGRSWHG E\ WKH 3HRSOHV
Committee for determination of compensation levels.
This is a matter for great uncertainty and foreign investors
are advised to seek vacant possession prior to transfer
of land use right to the joint venture.
64
Supervision of Construction
Independent Supervision of construction works by
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UHTXLUHPHQW 7KH VXSHUYLVRU\ UROH HQFRPSDVVHV
TXDOLW\ FRQWURO DQG FRPSOLDQFH FKHFNLQJ VFKHGXOH
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hygiene control during construction. The safety
and environment control are conducted regularly
and continuously during the implementation phase.
The Supervisor is also responsible for arranging
independent inspections witnessing of testing and
commissioning data and assistance in compilation
of the dossier for putting the building into operation
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PROPERTY INVESTMENT
Commencement of Construction
Construction of works may only commence after
satisfying the following conditions: the site area being
ready to be handed over, either in whole or in section
and free of encumbrances; a construction permit;
approved design drawings for execution of building; a
FRQVWUXFWLRQFRQWUDFWVXIFLHQWFDSLWDOIXQGVWRHQVXUH
the building schedule in accordance with the approved
building schedule in the investment license; measures
to ensure safety and minimum environmental impact
during the construction process. Construction All
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DOOUHTXLUHGLQVXUDQFHVLQDFFRUGDQFHZLWKFRQGLWLRQV
of contract are recommended to be effected prior to
commencement of any physical construction works on
Site.
PROPERTY INVESTMENT
65
PROPERTY INVESTMENT
PROJECT CLOSED OUT PROCEDURES
%HIRUH DQ LQYHVWRU FDQ UHFHLYH UHQWDO LQFRPH DQG
occupy the premises for its intended use, the receipt
of approval must be received by the provincial
&RQVWUXFWLRQ'HSDUWPHQWRUWKH0LQLVWU\RI&RQVWUXFWLRQ
depending on the category and size of the project.
The Construction Department will receive a dossier

complete with independent testing and commissioning
data (prepared by an independent party not the original
designer) for piling, structure, electricity and earthing,
environmental impact with regard to water and waste
GLVSRVDOQDOFKHFNLQJDQGDSSURYDORIUHSURWHFWLRQ
UHTXLUHPHQW 7KH GRVVLHU QHHGV WR KDYH 0LQXWHV WR
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7HVWLQJ%RG\&RQWUDFWRUDQG'HVLJQHULQFOXGLQJWKH
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66
PROPERTY INVESTMENT
TYPICAL SUBMISSION FLOWCHART
LOCAL PARTNER
FOREIGN PARTNER
ESTABLISHMENT OF LEGAL COMPANY
PT: 1 month
AT: 1.5 month
Total : 2.5 months
PT: 0.5 month

AT: 2 months
Total : 2.5 months
SUBMIT & OBTAIN IN-PRINCIPLE

APPROVAL OF THE LOCATION / PROJECT
FROM MASTER PLANNING DEPT.
SIGN A JV CONTRACT &

AGREEMENT FOR FUTURE
TRANSFER OF ASSETS
SUBMIT & OBTAIN APPROVAL FOR THE

DEVELOPMENT PLANS (LAND USE) FROM
RESOURCES AND ENVIRONMENT DEPT.
PT: 0.5 month

AT: 3 months
Total : 3.5 months
REGISTER A JV COMPANY
- SUBMIT AND OBTAIN APPROVAL FOR RED BOOK TRANSFER FROM
LOCAL PARTNER TO JV CO. FROM RESOURCES AND ENVIRONMENT DEPT.
PT: 0.5 month

AT: 1.5 month
Total : 2 months
- SUBMIT AND OBTAIN APPROVAL FOR INVESTMENT LICENSE FROM DEPT.

OF PLANNING & INVESTMENT
- SUBMIT AND OBTAIN APPROVAL FOR FIRE FIGHTING APPRAISAL FROM

FIRE FIGHTING DEPT.
PT: 1 month
AT: 4 months
Total : 5 months
- SUBMIT AND OBTAIN APPROVAL FOR ENVIRONMENTAL IMPACT

APPRAISAL FROM RESOURCES AND ENVIRONMENT DEPT.
SUBMIT AND OBTAIN APPROVAL FOR PLANNING TASK AND PLANNING

APPROVAL SCALE 1/500 FROM PEOPLE COMMITTEE OF THE DISTRICT
PT: 1 month
AT: 2 months
Total : 3 months
SUBMIT AND OBTAIN APPROVAL FOR BUILDING PLANS FROM
CONSTRUCTION DEPT.
Legend: PT: Preparation Time

AT: Approval Time
Note: Time indicated is based on past project experience and serve as a guide only
PROPERTY INVESTMENT

PROPERTY INVESTMENT
KEY PLANNING PARAMETER
MAXIMUM SITE COVERAGE
Maximum site coverage of linked houses and villa houses
Land plot area
(m2/house)
75
100 200 300 500
0D[LPXPVLWH
coverage (%)
100 90
80

60
50

40
Maximum site coverage of condominium buildings

Building height Maximum site coverage (%) according
to land plot area
measured from
10,000
18,000 35,000
ground level (m)
m2
m2
m2
m2

65
63
60
19

60
58
55
22

55
52
25

53
51
48
28

50
48
45
31

48
46
43
34

46
44
41

44
42
39
40

43
41
38
43

42
40

46

41
39
36
>46

40
38
35

The maximum site coverage of urban public building such as

educational, healthcare, cultural buildings, sport centres and
market in the new urban development area is 40%.
68
PROPERTY INVESTMENT
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EXLOGLQJV EXLOW RQ D ODQG SORW RI DUHD P GHSHQGLQJ
RQ LWV ORFDWLRQ LQ XUEDQ DUHDV DQG VSHFLF SODQQLQJ VROXWLRQ
IRUODQGSORWWKHPD[LPXPVLWHFRYHUDJHFDQEHDVVSHFLHG
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GLVWDQFH EHWZHHQ EXLOGLQJV WKH VHWEDFN DUHDV DQG SDUNLQJ
lot must be complied with the current regulation.
Building height
measured from
ground level (m)
Maximum site coverage (%) according

to land plot area
3,000
10,000
18,000
m2
m2
m2
m2

80

68
65
19
80
65
63
60
22
80
62
60

25
80
58
56
53
28
80
55
53
50
31
80
53
51
48
34
80
51
49
46

80
49

44
40
80
48
46
43
43
80

45
42
46
80
46
44
41
>46
80
45
43
40
For those built on a land plot of area <3.000m2, the site coverage
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EXWWKHUHTXLUHPHQWRIWKHPLQLPXPGLVWDQFHEHWZHHQ
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with the current regulation.
MINIMUM LANDSCAPING RATIO FOR CONSTRUCTION
LAND LOTS
Type of building
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house, villa)
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PROPERTY INVESTMENT
Minimum of ratio for

landscape (%)
20
20
30
30
30
20
20
69
PROPERTY INVESTMENT
KEY PLANNING PARAMETER (contd)
MINIMUM OF CAR PARKING LOT
Type of building
Minimum car parking lot
+RWHOIURPVWDU
standard upward
4 bedrooms / 1 lot
+LJKJUDGHRIFHIRUHLJQ
DIIDLUVRIFHV
100m2RRUDUHDORW
Super market, shopping

mall, conference centre,
exhibition, show room
and display center
100m2RRUDUHDORW
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condominium
1 apartment / 1.5 lot
MINIMUM OF PARKING SPACE
Type of vehicle

Minimum area of
parking space
Car parking space
25 m2
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3 m2
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0.9 m2
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40 m2
Truck parking space
30 m2
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the number of parking lot must be at least 50% of
WKHSDUNLQJORWVVSHFLHGLQWKHWDEOHDERYH
ROAD FOR FIRE PROTECTION
Width of road >3.5 (m)
Clearance height > 4.25 (m)
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PROPERTY INVESTMENT
BUILDING AREAS DEFINITIONS

7KH IROORZLQJ JXLGHOLQHV DUH GHULYHG IURP WKH 5,&6
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Gross External Area (GEA)
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Includes:
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Areas occupied by internal walls and partitions
Columns, piers, chimney breasts, stairwells, liftwells,
and the like
Atria with clear height above, measured at base
level only
Internal balconies
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DVDOHYHORRUPHDVXUHGKRUL]RQWDOO\
+RUL]RQWDORRUVZKHWKHUDFFHVVLEOHRUQRWEHORZ
VWUXFWXUDOUDNHGRUVWHSSHGRRUV
0H]]DQLQHDUHDVLQWHQGHGIRUXVHZLWKSHUPDQHQW
access
Lift rooms, plant rooms, fuel stores, tank rooms which
are housed in a covered structure of a permanent
nature, whether or not above main roof level
2XWEXLOGLQJVZKLFKVKDUHDWOHDVWRQHZDOOZLWKWKH
main building
Loading bays
Areas with a headroom of less than 1.5m
3DYHPHQWYDXOWV
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Conservatories
PROPERTY INVESTMENT

PROPERTY INVESTMENT
BUILDING AREAS DEFINITIONS (contd)
Excludes:
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UHHVFDSHV
Canopies
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9RLGVRYHURUXQGHUVWUXFWXUDOUDNHGRUVWHSSHGRRUV
*UHHQKRXVHVJDUGHQVWRUHVDQGWKHOLNHLQUHVLGHQWLDO
property
Gross Internal Area (GIA)

*URVV,QWHUQDO$UHDLVWKHDUHDRIDEXLOGLQJPHDVXUHGWR
WKHLQWHUQDOIDFHRIWKHSHULPHWHUZDOOVDWHDFKRRUOHYHO
Includes:

Areas occupied by internal walls and partitions

&ROXPQVSLHUVFKLPQH\EUHDVWVVWDLUZHOOVOLIWZHOOV
other internal projections, vertical ducts, and the like
level only
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6WUXFWXUDOUDNHGRUVWHSSHGRRUVDUHWREHWUHDWHG
DVDOHYHORRUPHDVXUHG
+RUL]RQWDO RRUV ZLWK SHUPDQHQW DFFHVV EHORZ
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corridors, smoke lobbies, etc.)
0H]]DQLQHDUHDVLQWHQGHGIRUXVHZLWKSHUPDQHQW
access
Lift rooms, plant rooms, fuel stores, tank rooms
which are housed in a covered structure of a
permanent nature, whether or not above main
roof level
PROPERTY INVESTMENT
Service accommodation such as toilets, toilet

lobbies, bathrooms, showers, changing rooms,
cleaners rooms, and the like
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9RLGVRYHUVWDLUZHOOVDQGOLIWVKDIWVRQXSSHURRUV
Loading bays
Areas with a headroom of less than 1.5m
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Conservatories
Excludes:
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([WHUQDORSHQVLGHGEDOFRQLHVFRYHUHGZD\VDQG
UHHVFDSHV
Canopies
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like in residential property
Gross Floor Area (GFA)

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the internal structural face of the enclosing walls.
Includes:
Areas occupied by partitions, columns, chimney

EUHDVWVLQWHUQDOVWUXFWXUDORUSDUW\ZDOOVOLIWZHOO
and the like
Lift, plant, tank rooms and the like above main roof
slab
PROPERTY INVESTMENT

PROPERTY INVESTMENT
BUILDING AREAS DEFINITIONS (contd)
Note:
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tiered terraces and the like should be measured
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Excludes:
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of the building which are not enclosed spaces
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the like). These should each be shown separately
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should be shown separately.
Net Internal Area (NIA)

Net Internal Area is the usable area within a building
measured to the internal face of the perimeter walls
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level only
Entrance halls
Notional lift lobbies
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usable areas
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Area occupied by ventilation/heating grills
Area occupied by skirting and perimeter trunking
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demountable partitions, whether or not perma
nent, and the like, where the purpose of the divi
sion is partition of use, not support, provided the
area beyond is not used in common
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PROPERTY INVESTMENT
Excludes:
Those parts of entrance halls, atria, landings and

balconies used in common
Toilets, toilet lobbies, bathrooms, cleaners rooms,
and the like
Lift rooms, plant rooms, tank rooms (other than
those of a trade processcnature), fuel stores, and
the like
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Corridors and other circulation areas where used
in common with other occupiers or of a permanent
essential nature (e.g. fire corridors, smoke lobbies,
etc.)
Areas under the control of service or other external
authorities including meter cupboards and statutory
service supply points
Internal structural walls, walls enclosing excluded
areas, columns, piers, chimney breasts, other
projections, vertical ducts, and the like
The space occupied by permanent and continuous
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and ducting in so far as the space it occupies is
rendered substantially unusable
Areas with headroom of less than 1.5m
Areas rendered substantially unusable by virtue
fhaving a dimension between opposite faces of
less than 0.25m
Vehicle parking areas (the number and type of
spaces noted)
Building Footprint
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but is generally understood to mean the area of the land
upon which the building sits (excluding all basements),
measured to the outside face of external walls.
PROPERTY INVESTMENT

PROPERTY INVESTMENT
PROCUREMENT STRATEGIES
Overview
The primary consideration in the choice of procurement

strategy is the need to obtain overall value for money
during the entire life of the facility and each method
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In Vietnam the following is currently prevalent.

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KLJKH[WHQW
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3XEOLF3ULYDWH
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ORZH[WHQW
ULVLQJH[WHQW

QHZDQG
promoted extent
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competition and the process is covered by the Law of
Tendering promulgated in 2006 intended primarily for
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FDSLWDO E\ D VWDWH HQWLW\ DQG IRU 9LHWQDPHVH 3ULYDWH
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Tendering although it is advisable. The law recognizes
open tendering, limited tendering and competitive
tendering. For state projects tenders are normally
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for compliances.
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checking financial and technical competencies.
Tenders are usually open for 90 days.
The FIDIC suite of contracts is widely used for Vietnam
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QRZZLGHO\DFFHSWHG7KHUHDUHRIFLDOWUDQVODWLRQVRI
some of the FIDIC forms and the Vietnam Consultant
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Vietnam adopt FIDIC also.
PROPERTY INVESTMENT
a) Traditional Lump Sum

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basis using a modified FIDIC Contract which in
its unamended form is a measure and value contract.
7KLV PHWKRG UHTXLUHV DSSRLQWPHQW RI LQGHSHQGHQW
GHVLJQFRQVXOWDQWVE\WKHHPSOR\HUDQGDVXIFLHQWO\
developed design preferably frozen prior to tender.
%LOOV RI 4XDQWLWLHV DUH XVXDOO\ SURYLGHG IRU LQIRUPDWLRQ
only to the contractor who normally provide their
RZQ TXDQWLWLHV ZLWK WKHLU WHQGHU IRU FRPSDULVRQ
purposes only and only the rates are contract rates
with any errors and omissions not being subject to
UHPHDVXUHPHQWDIWHUWKHOXPSVXPLVQDOL]HG3ULPH
costs sums for nominated subcontracts for mechanical
DQGHOHFWULFDODQGOLIWVXEFRQWUDFWVDUHZLGHO\XVHG
E&RQVWUXFWLRQ0DQDJHPHQW
7KLVIRUPRISURFXUHPHQWLVRIWHQSRUWUD\HGDVIDVW
track as tender packages are often let successively
throughout the design process with no need to wait until
detail design is complete. A construction management
FRQVXOWDQW LV HQJDJHG QRUPDOO\ IRU D [HG SHUFHQWDJH
fee to procure and manage the individual trade contracts
which are placed by the employer. This necessitates
effective cost management as the total construction
EXGJHW LV QRW QDOL]HG XQWLO WKH QDO SDFNDJHV DUH OHW
7KHHPSOR\HUEHDUVQRWDQLQVLJQLFDQWULVNLQWHUPVRI
price certainty, delays, disruption, design and coordination
problems. Clients adopting this approach need to be
conversant with the local environment and have the
UHTXLVLWHLQKRXVHVNLOOVWRGHDOZLWKLVVXHVDVWKH\DULVH
c) Framework Agreements
)UDPHZRUNDJUHHPHQWVUHIHUUHGVRPHWLPHVDVFDOORII
FRQWUDFWVEHWZHHQLQYHVWRUVZLWKDSLSHOLQHRISURMHFWV
DQG FRQWUDFWRUV FDQ UHVXOW LQ VLJQLFDQW VDYLQJV WR
both parties using any of the procurement options
above. The advantages are time reduced for tendering
and negotiations, improved processes and knowledge
transfer, bulk order costs savings, reduced confrontation
DQGHFRQRPLHVRIVFDOHGXHWRFRQWLQXLW\RIZRUNRZ
All these advantages are extremely important in the
Vietnam context because it is of paramount importance
to maintain healthy relationships between employers
and contractors as unforeseen events are prevalent
during the design and procurement stages in Vietnam.
PROPERTY INVESTMENT

PROPERTY INVESTMENT
PROCUREMENT STRATEGIES (contd)
G3XEOLF3ULYDWH3DUWQHUVKLS333

333 LV WKH JHQHULF WHUP IRU WKH UHODWLRQVKLSV IRUPHG

between the private sector and public bodies often
with the aim of introducing private sector resources
and / or expertise in order to help provide and deliver
SXEOLF VHFWRU DVVHWV DQG VHUYLFHV 7KH WHUP 333 LV
used to describe a wide variety of working arrangement
from loose, informal and strategic partnerships to
GHVLJQEXLOGQDQFHDQGRSHUDWHW\SHVHUYLFHVFRQWUDFW
DQGIRUPDOSRLQWVRIMRLQWYHQWXUHFRPSDQLHV7KH333
mechanisms would help attract commercial capital and
other sources of capital that private investors will seek
IRU 333 SURMHFWV ,Q WKDW ZD\ LQYHVWPHQW HIFLHQF\
will be improved while public debts controlled at safe
levels. Investors of projects will be chosen via competitive
ELGGLQJLQRUGHUWRPD[LPL]HEHQHWVDQGFUHDWHHTXDO
RSSRUWXQLWLHV IRU GRPHVWLF DQG IRUHLJQ LQYHVWRUV 2Q
1RYHPEHU WKH 3ULPH 0LQLVWHU RI 9LHWQDP
authorized the issue of detailed regulations covering
WKHSLORWLQJRILQYHVWPHQWLQWKHIRUPRI3XEOLF3ULYDWH
3DUWQHUVKLSV333VLQ9LHWQDP7KH3335HJXODWLRQV
EHFDPHHIIHFWLYHRQ-DQXDU\DQGZLOOFRQWLQXH
WR EH LPSOHPHQWHG RYHU WKH QH[W WKUHH WR YH \HDUV
7KH 9LHWQDPHVH *RYHUQPHQW LQWHQGV WR FDUU\ RXW
333SURJUDPPHDFFRUGLQJWRDOLVWRIGHQHGSURMHFWV
to ensure that investors are provided with carefully
SUHSDUHGSURMHFWVZLWKDYLHZWRFUHDWLQJDUHDO333
commercial market in Vietnam. In the coming years
the government will carry out some pilot projects. The
333 SURMHFWV LQ WKH FRXQWU\ ZLOO FRQFHQWUDWH RQ FRUH
WHFKQLFDOLQIUDVWUXFWXUHWKDWUHTXLUHVPXFKFDSLWDODQG
furthermore, mechanisms to mobilize private investment:
L 5RDGV URDG EULGJHV URDG WXQQHOV IHUU\ URDG
VWDWLRQVLL5DLOZD\UDLOZD\EULGJHVUDLOZD\WXQQHOV
(iii) Airports, sea ports and river ports; (iv) Clean
ZDWHUVXSSO\V\VWHPVZDWHUGUDLQDJHV\VWHPVOLTXLG
and solid waste collection and treatment systems; (v)
3RZHUSODQWVHOHFWULFLW\WUDQVPLVVLRQFDEOHVYL+RVSLWDOV
YLL2WKHULQIUDVWUXFWXUHSURMHFWV
PROPERTY INVESTMENT
Technically advanced or highly

complex building
Complexity
PROPERTY INVESTMENT
Desire to transfer complete risk
Facility to recover cost direct

from construction
Contractor input to economic

construction
3URIHVVLRQDO
5HVSRQVLELOLW\
5LVN
Avoidance
Damage
5HFRYHU\
%XLOGDELOLW\
Single contractual link
Need for design team to report

to sponsor
5HVSRQVLELOOLWW\
Avoid prohibitive cost of change
Variations
Design prestige
Quality
3UHFRQVWUXFWLRQSULFHFHUWDLQW\
Cost
Appropriateness of Contract Strategy

Design
Construction
and
Management
Construct
Management
Contracting
Early Completion
Tracditional
Timing
PPP
Objectives
Project Criteria
Parameter
Prime
Contracting
Framework
Agreements
Table A - Procurement Strategy

PROPERTY INVESTMENT
Table B - Risk Allocation
80
PROPERTY INVESTMENT
CONTRACTOR SELECTION STRATEGIES

There are four tiers of contractor available for tendering
IRUHLJQLQYHVWPHQWSURMHFWVWKHVHWLHUVDUHQRWRIFLDO
FODVVLFDWLRQV
Tier 1
)RUHLJQ FRQWUDFWRU IURP -DSDQ .RUHD

6LQJDSRUH+RQJ.RQJ(XURSH
Australia
Tier 2
)RUHLJQ FRQWUDFWRU IURP &KLQD 5XVVLD

7DLZDQDQG0DOD\VLD
Tier 3
/RFDOSULYDWHDQG-RLQW6WRFNFRQWUDFWRUV
Tier 4
State contractors
There is a considerable diversity between these tiers

LQWHUPVRIJHQHUDOH[SHUWLVHWHFKQRORJLFDONQRZKRZ
KXPDQUHVRXUFH VNLOOV DQG WUDLQLQJ ZKLFK OHDGV WR D
GLIIHUHQW ULVN SUROH IRU GHOLYHU\ RI EXLOGLQJV WR WLPH
TXDOLW\ DQG FRVW WDUJHWV 7KH ORZHVW WLHUV XVH OHVV
PRGHUQHTXLSPHQWPDFKLQHU\DQGV\VWHPIRUPZRUN
and have much lower human resource costs. This is
inevitably leading to higher tender returns. A rigorous
SUHTXDOLFDWLRQ SURFHGXUH LV UHFRPPHQGHG ZLWK
weighted scoring in line with project objectives eg.
lowest cost objective will have an inevitable impact
RQTXDOLW\DQGWLPH
$ W\SLFDO SUHTXDOLFDWLRQ DVVHVVPHQW PLJKW FRYHU
(indicative weighting for Vietnam 1 through 10,
10 highest)
Vietnam experience (if foreign) 8
3URMHFWW\SHH[SHULHQFHORFDODQGIRUHLJQ
Financial capacity (particularly local) 8
3ODQWDQGHTXLSPHQWLQYHQWRU\SDUWLFXODUO\ORFDO
Direct labour strength (local and foreign) 6
PROPERTY INVESTMENT
81
PROPERTY INVESTMENT
CONTRACTOR SELECTION STRATEGIES (contd)
3URSRVHGMRLQWYHQWXUHVXEFRQWUDFWLQJDUUDQJHPHQWV
ORFDODQGIRUHLJQ
3ODQQLQJDQGSURJUDPPLQJFDSDELOLW\SDUWLFXODUO\ORFDO
Cognizance of international procedures, codes and
VSHFLFDWLRQVORFDO
Financial capacity (local)
Local contractors now have access to bank funding
EXW VKRXOG QRW EH H[SHFWHG WR QDQFH SURMHFWV E\
SXQLWLYH FDVKRZ DUUDQJHPHQWV 0RVW FRQWUDFWV DUH
OHW ZLWK LQYHVWRUV SD\LQJ DGYDQFH SD\PHQWV
ZKLFK LV UHFRXSHG IURP VXEVHTXHQW PLOHVWRQH RU
interim payments. Deductions for defective works
DQG OLTXLGDWHG GDPDJHV PD\ FRPSRXQG SUREOHPV
so careful diplomacy is often more productive. Claims
for additional costs due to prevailing market conditions
are more common in todays climate but also for
misinterpretation of contract obligations making the
QHHGIRUJRRGTXDOLW\FRQWUDFWGRFXPHQWDWLRQHVVHQWLDO
Plant and Equipment Inventory (local)
82
6WDWHUPVWHQGWRVKDUHRUSRROSODQWDQGHTXLSPHQWIRU
H[DPSOH WRZHUFUDQHV DQG SLOLQJ ULJV ,W LV RIWHQ
impossible to determine the true owner of plant
DQG HTXLSPHQW RQVLWH LQ WKH HYHQW RI SUHPDWXUH
demobilization.
,W LV HVVHQWLDO WKDW WKH SUHTXDOLILFDWLRQ SURFHVV
GHWHUPLQHVWKDWDFRQWUDFWRURZQVSODQWRIVXIFLHQW
size, capacity and suitable state of repair as contractors
PD\QRWKDYHIXOOFRQWURORIOHDVHGHTXLSPHQWVXGGHQO\
UHTXLUHGRQRWKHUMREVLWHV
Direct labour strength (local)
7KH VRXUFH RI ODERXU VXSSO\ DOVR EHLQJ YHULHG DV
ODERXU VWUHQJWK PD\ EH WRSSHGXS E\ LPSRUWLQJ
PROPERTY INVESTMENT
unskilled and untrained workers from remote provinces,

who often are not legally resident at their working
destination.
Contractors should be asked to prove their direct labour
UHFRUGV DQG GHFODUH DQ\ ODERXU RQO\ VXEFRQWUDFWLQJ
arrangements. The tier 1 contractors will not have
DQ\IXOOWLPH GHGLFDWHG ODERXU RQ WKHLU SD\UROO7LHU
2 contractors often import workers from their home
country for the project duration and shall be responsible
for all associated costs and taxes.
Labour is not usually permitted to reside on site.
Contractors shall provide details of training curriculums
for each trade discipline when tendering as well as
health and safety programmes.
Proposed sub-contracting arrangements (local)
6XEFRQWUDFWLQJLVSUHYDOHQWLQ9LHWQDPVRLWLVHVVHQWLDO
to check the percentage of work subcontracted out
WR HQVXUH TXDOLW\ FRQWURO LVVXHV DUH PLQLPL]HG ,W
LV KLJKO\ XQOLNHO\ WKDW DQ\ RQH UP ZLOO SRVVHVV WKH
UHTXLUHGKXPDQUHVRXUFHDQGSODQWDQGHTXLSPHQWWR
FRPSOHWH D SURMHFW XVLQJ LQKRXVH UHVRXUFHV )RUHLJQ
contractors largely act as management function
providing only project engineers, site supervisors,
KHDOWK DQG VDIHW\ RIFHUV DQG SODQQHUV %RWK IRUHLJQ
and local contractors rarely directly employ foremen,
JDQJOHDGHUVRULQGHHGVNLOOHGDQGXQVNLOOHGRSHUDWLYHV
These arrangements are perfectly normal and accepted
but it is preferable to know in advance the exact
arUDQJHPHQWVEHLQJSURSRVHGWRHQVXUHQRFRQLFWVRI
interests with other projects and to understand fully the
amount of control the appointed contractor has on the
works he is engaged to undertake.
Planning and programming capability (local)
7KLV FDSDELOLW\ QHHGV FDUHIXO YHULFDWLRQ IURP WKH
ORZHVWWLHUFRQWUDFWRUV7KHXVHRIUVWSULQFLSOHWLPH
PROPERTY INVESTMENT
83
PROPERTY INVESTMENT
CONTRACTOR SELECTION STRATEGIES (contd)
resourced planning is rarely used. The approach
adopted is often rule of thumb whereby planners
determine critical activity durations using their
knowledge of other projects. Floor/structure cycle
times are often inconsistent and the lack of recording
and reutilization of historical data means the planning
process can be crude at best. Time or delay is a
perennial problem in Vietnam sometimes due to
employer delays such as site clearance or permit issues
or neutral delays such as weather but contractor
culpable delays should not be of any surprise. The use
of critical path analysis, planned impacted analysis,
window analysis and collapsed asbuilt are not widely
known in Vietnam. This means time recovery analysis
and the implementation of acceleration measures are
not readily adopted and time for completion can
become unpredictable. The input of experienced
3URMHFW0DQDJHPHQWPLJKWEHLQYDOXDEOHLQUHGXFLQJ
delays and formulating time recovery plans.
International experience (local)

7KHLQX[RIIRUHLJQLQYHVWHGSURMHFWVKDVEURXJKWZLWKLW
DQLQX[RIGLIIHUHQWVWDQGDUGVDQGSURFHGXUHVQRUPDOO\
from the source country. It is essential to determine the
degree of exposure local contractors have had to
international standards, procedures and indeed
expectations. The Vietnamese Codes and Standards
whilst detailed need to be used concurrently with
international standards such as American, Australian,
%ULWLVKRU-DSDQHVHVWDQGDUGVDQGVSHFLFDWLRQVDVWKH\
DUH QRW FRPSUHKHQVLYH HQRXJK WR VWDQGDORQH RQ DQ
international standard project. There is no uniform and
ZLGHO\DFFHSWHGVWDQGDUGRUVSHFLFDWLRQ7KHQHWWUHVXOW
LV D K\EULG ZKHUH HYHU\ SURMHFW KDV D XQLTXH DQG
bespoke set of standards depending on the investor
and his consultant source country. The appointed design
team will naturally look to use their familiar off the
VKHOIVSHFLFDWLRQVDQGWHQGHULQJFRQWUDFWRUVVKRXOG
84
PROPERTY INVESTMENT
be asked to list the standards they have successfully

built for the key trades and building elements. There
is a move to produce a set of consolidated Vietnamese
standards but this is some way off and the hybrid
approach will continue for some time to come.
+RZHYHUQRLQWHUQDWLRQDOVWDQGDUGVKDOORYHUULGHDQ\
mandatory Vietnam building code or standard. Design
FRQVXOWDQWV VKRXOG SURYLGH D WUDQVODWHG ELOLQJXDO
YHUVLRQ RI WKHLU VSHFLFDWLRQV DQG ORFDOO\ UHJLVWHUHG
GHVLJQUPVVKDOOSURYLGHORFDOL]DWLRQRIWKHGHVLJQ
to obtain local approvals. The contractors should also
be asked to list investments such as system formwork
and their use of recent technology and list previous
employers and consultants whom they have worked
with.
PROPERTY INVESTMENT
85
PROPERTY INVESTMENT
PROPERTY OVERVIEW
,Q WKH ODWHVW UHSRUW 'RLQJ %XVLQHVV
8QGHUVWDQGLQJ5HJXODWLRQVIRU6PDOODQG0HGLXP6L]H
(QWHUSULVHVE\:RUOG%DQN9LHWQDPUDQNVWKRXWRI
189 economies reviewed for ease of doing business.
$OWKRXJKWKHUHSRUWQGVWKDW9LHWQDPKDVLPSOHPHQWHG
UHIRUPVWKHKLJKHVWQXPEHULQ(DVW$VLD3DFLF
since 2005, the countrys ranking has not improved
much over the years (it was ranked 98/189 last year),
signaling that the country needs to do even more in
order to improve its position on the list.
3RVLWLYH VHQWLPHQW LV DOVR UHSRUWHG FRPLQJ EDFN DV

43% of respondents in a survey had a positive outlook
for Vietnams economy in the next 12 months, the
KLJKHVW LQ WZR \HDUV DFFRUGLQJ WR D 3ULYDWH (TXLW\
5HSRUWLVVXHGE\*UDQW7KRUQWRQ9LHWQDPLQ
PLG1RYHPEHU7KHUHSRUWUHYHDOVWKDWSRWHQWLDO
JURZWK KDV EHHQ WKH UVW FRQVLGHUDWLRQ RI LQYHVWRUV
when investing in Vietnam that was chosen by 23%
of respondents. Transparency in business activities is
WKHVHFRQGLPSRUWDQWIDFWRUIRUSULYDWHHTXLW\LQYHVWRUV
while the third most important factor when investing in
9LHWQDPLVFDVKRZ
86
)XUWKHU HPSKDVLVLQJ WKH PDFURHFRQRPLF SURJUHVV

which is being made, it is highlighted with the successful
SXUFKDVHE\WKH9$0&RIDEDWFKRI91'WULOOLRQRI
LPSDLUHG ORDQV IURP$JULEDQN LQ HDUO\ 2FWREHU
6LQFHWKHQ9$0&KDVFXWGHDOVWREX\GHEWVIURP
credit institutions, totaling an original debt of around
91' WULOOLRQ ZLWK DURXQG 91' WULOOLRQ ZRUWK RI
special bonds issued. This is considered as a sign that
real and genuine progress can be made to truly reform
Vietnams economy.
Continued review and evolution of legislation, as well
as further development of infrastructure (seven steel
\RYHUV DW WKH EXVLHVW URXQGDERXWVLQWHUVHFWLRQV
7DQ6RQ1KDW%LQK/RL2XWHU5LQJ5RDG6DLJRQ
%ULGJHHWFKDVSURYLGHGIXUWKHULPSHWXVIRUWKHUHDO
estate market, and the wider economy, as it continues
on its long road to recovery towards the end of 2013.
PROPERTY INVESTMENT
5HVROXWLRQ14&3HIIHFWLYHRQ-XQHWKH
6WDWH%DQNRI9LHWQDPZLOOSURYLGH VRIW ORDQV ZRUWK
VND9 trillion (approximately US$428 million) for real
HVWDWH FRPSDQLHV GHYHORSLQJ ORZFRVW KRPHV RU
FRQYHUWLQJUHODWLYHO\KLJKHUFODVVKRPHVWRORZFRVW
homes at a low annual rate of 6%. Although the main
IRFXVRIWKHORDQSDFNDJHLVORZFRVWKRXVLQJDQG
the conversion of more expensive properties, the
expected positive impact of the package is to create
VSLOORYHUHIIHFWVWKDWUHYLYHWKHZLGHUSURSHUW\PDUNHW
and building supplies industry. As a further part of
WKH5HVROXWLRQ14&3WKH1DWLRQDO$VVHPEO\
has approved to cut corporate income tax.
,Q DGGLWLRQ WKH *RYHUQPHQWV FRQWLQXHG YRFDO
support for increased foreign investment in the
country is heartening, but to be truly effective, swift
and concise deliverables must be seen as opposed
to speculation as to possible changes. Nevertheless,
applause is necessary where steps in the right
direction are being made. Discussions for improving
the foreign investment climate in Vietnam have
included:
5DLVLQJWKHFHLOLQJIRUIRUHLJQLQYHVWRUVLQOLVWHG
companies from 49% to 60%;
5DLVLQJWKHIRUHLJQRZQHUVKLSLQORFDOEDQNVWR
49% from the current 30% in a near future;
/RRVHQHG UHTXLUHPHQWV IRU IRUHLJQ EX\HUV WR
DFTXLUH UHVLGHQWLDO SURSHUW\ LQ 9LHWQDP 7KH
5HVROXWLRQ 4+ RQ DOORZLQJ IRUHLJQ
individuals to buy accommodation in Vietnam,
LVJRLQJWRHQGLWVYH\HDUSLORWSURJUDPDWWKH
end of 2013. A new law is being reviewed by
WKH*RYHUQPHQWWRUHSODFHWKLVUHVROXWLRQZLWK
a number of improvements that would remove
same some of the issues that foreigners and
foreign companies face if they would like to buy
property in Vietnam. The revised resolution will
be applied in early 2014.
A potential single visa for tourists to Vietnam,
Thailand and Cambodia;
PROPERTY INVESTMENT

PROPERTY INVESTMENT
PROPERTY OVERVIEW (contd)
OFFICE SECTOR
*LYHQWKHOLPLWHGQHZVXSSO\ZKLFKKDVFRPHWRPDUNHW
during 2013, and continued demand from companies
centralising their operations and consolidating their
RFFXSDWLRQDO UHTXLUHPHQWV YDFDQF\ OHYHOV LQ WKH
*UDGH $ DQG % PDUNHWV ZHUH UHGXFHG LQ 4
'XULQJWKHTXDUWHUQHWDEVRUSWLRQLQWKH*UDGH$DQG
%VHFWRUVUHDFKHGVPDQLQFUHDVHRI
TRTDQGRYHUWKHVDPHSHULRGLQ7KH
FRQVHTXHQFHRIWKHVWURQJWDNHXSZLWQHVVHGLVWKDW
both new and existing properties have managed to
KROG UHQWDO OHYHOV UP LQ VRPH FDVHV IRU WKH PRVW
popular properties, there has been evidence of mild
rental rises.
7KHSHUIRUPDQFHRIQHZO\FRPSOHWHGEXLOGLQJVLQWKH
ODVWWZRTXDUWHUVKDVUHYHDOHGDQHZWUHQGLQEXLOGLQJ
development. Those buildings with sustainable and
HIFLHQW GHVLJQ DWWUDFW PRUH WHQDQWV $V ORQJ DV D
SURSHUW\ FDQ VDWLVI\ LWV RFFXSLHUV LQ WHUP RI TXDOLW\
GHVLJQDQGORFDWLRQLWFDQEHTXLFNO\OOHGDVWKHUHLV
VWLOOGHPDQGIRUKLJKHQGRIFHVSDFHLQWKHPDUNHW
88
As we enter into a new cycle, options for tenants,

HVSHFLDOO\WKRVHZKRGHPDQGWUXO\LQWHUQDWLRQDOOHYHO
SURSHUWLHV RU D ODUJH RRU SODWH DUH DJDLQ EHFRPLQJ
OLPLWHG ,Q WKH +&0&V &%' RQO\ HLJKW EXLOGLQJV RI
ERWK*UDGH$DQG%SURYLGHRYHUVPFRQWLJXRXV
VSDFH DQG FXUUHQWO\ RQO\ IRXU RI WKHP KDYH D RRU
plate over 1,000 sm. Therefore, some landlords have
become more aggressive in their pricing strategies,
recognising the lack of competition for their own buildings.
It appears that the top seven or eight properties in
+&0&V'LVWULFWDUHQRZGHWDFKLQJWKHPVHOYHVIURP
the rest of the market. These properties are already
raising rents whilst those in the next tier down, be it
$RU%DUHDFWLQJLQDPRUHVWDEOHPDQQHU7HQDQWV
ZKRUHTXLUHDWRSWLHUSURSHUW\RUDODUJHVSDFHRIRYHU
1,000 sm would be wise to act sooner rather than later
if looking for options in 2014 owing to limited availability.
PROPERTY INVESTMENT
RESIDENTIAL SECTOR
After a long period negativity, the residential sector
continues to strengthen.
2QDEULJKWQRWHWKHUHKDYHEHHQDORWRIDFWLRQVIURPWKH
*RYHUQPHQWWRDFWLYHO\VXSSRUWWKHUHVLGHQWLDOSURSHUW\
market, including the credit package of VND30,000
billion to homebuyers, the adjustment in the deposit
rate cap and the dong devaluation. 5% VAT would be
DSSOLHGWRKRXVHVL]HGEHORZVPDQGSULFHGEHORZ
VND15 million psm. The level of deduction applicable
WR SHUVRQDO WD[ SD\HU FDPH WR HIIHFW VLQFH -XO\
2013. All these efforts worked together encouraging
prospective home buyers to look at new and existing
developments as a realistic option.
As 2013 progressed, the market saw a sharp
increase in the numbers of projects being advertised,
the amount of advertisements themselves and the
QXPEHURIQHZODXQFKHV$SSUR[LPDWHO\XQLWVZHUH
ODXQFKHGLQ4VKRZLQJDVLJQLFDQWLQFUHDVHRI
TRTDQG\R\7KHPDMRULW\RIWKLVVXSSO\
ZDVLQ WKH DIIRUGDEOH VHJPHQW DFFRXQWLQJ IRU
of the new launches (or secondary phase launches).
The rise in the number of new launches represented
VRPHGHYHORSHUVUHIRXQGFRQGHQFHLQWKHPDUNHW
These included large established developers such as
&DSLWD/DQG3KX0\+XQJ&RUSRUDWLRQDQG1DP/RQJ
The developers faith in the market was repaid as new
ODXQFKHVVDZVRPHQRWDEOHEX\HUDFWLYLW\2QHDIIRUGDEOH
project launched towards the end of September received
a crowd of over 600 keen visitors and sold over 100
units during the weekend. Another recent launch of a
KLJKHQG SURMHFW LQ 'LVWULFW ZDV ZHOOUHFHLYHG ZLWK
towards 50 units being sold. The success seen in
+&0& KDV EHHQ PLUURUHG LQ QHLJKERXULQJ SURYLQFHV
ZLWK D SURMHFW LQ %LQK 'XRQJ 3URYLQFH DOVR UHSRUWLQJ
increased sales velocity.
1HZ SULFH UDQJHV LQ WKH KLJKHQG VHJPHQW DUH JHWWLQJ
FORVHU WR EX\HUV H[SHFWDWLRQ 86 SVP
plus other attractive incentives. It should be emphasised
that sales were witnessed at both the affordable projects
DQG WKH KLJKHQG GHYHORSPHQWV ZLWK HQFRXUDJLQJO\
PROPERTY INVESTMENT
89
PROPERTY INVESTMENT
longer payment terms. This translated to the last
SD\PHQWSD\DEOHRQHRUWZR\HDUVDIWHUWKH
KDQGRYHU$OVRFRPSOHWHGRUQHDUO\FRPSOHWHGSURMHFWV
received higher buyers interest as they could see and
feel the products to be handed over, as opposed to the
fear that the developer failed to deliver as happened in
the past.
The strategies being employed in the condominium
sector will be continued and spread to the North when
WKH PDUNHW VHHV PRUH SURMHFWV DUH EHLQJ WWLQJ RXW
%HLQJ HQKDQFHG ZLWK WKH QHZ UHVROXWLRQV IURP WKH
*RYHUQPHQW WKH PDUNHW ZLOO FRQWLQXH WR VKRZ JUDGXDO
improvement in 2014 when mortgage costs have now
UHDFKHG LWV YH \HDU ORZV ZKLOH WKH *RYHUQPHQWV
support package for the social and affordable housing
PDUNHWVWDUWVWRIHHGWKURXJK+RZHYHUPDUNHWFRQGHQFH
UHPDLQVORZVRWKHSLFNXSLQWUDQVDFWLRQVZLOORFFXU
JUDGXDOO\+HQFHLQRXURXWORRNIRUQH[W\HDUZHH[SHFW
the recovery to gather pace only in the second half
as macroeconomic conditions improve while prices for
real estate projects will take even longer to recover.
RETAIL SECTOR
90
The retail market continues to see an interesting mix

RISRVLWLYHDQGQHJDWLYHQHZV5HWDLOHUVUHPDLQEXOOLVK
on the market, wanting to grow their access to the
VWURQJGHPRJUDSKLFVRIWKHFLW\+RZHYHUWKHKHDGOLQH
QXPEHUV SURGXFHG E\ &%5( LQ WKH ODWHVW TXDUWHU
appeared to show a differing story for landlords, who
have witnessed tenants moving out and rentals softening.
With no new supply coming to the market recently, the
QHJDWLYHQHWDEVRUSWLRQUHHFWHGWHQDQWVGLVVDWLVIDFWLRQ
with the rentals charged at major shopping centres
DQG WKH DPRXQW RI IRRW WUDIF ZKLFK WKH\ DUH DEOH WR
JHQHUDWH+RZHYHUUHWDLOHUVGLGQRWDFWXDOO\VKXWGRZQ
their business; they simply relocated, moving out of
WKH RYHUSULFHG &%' UHWDLO FHQWUHV WR KLJKVWUHHW
shophouses in the centre or on the periphery, which
offered more affordable rates and attract larger footfall.
7KHVH UHWDLOHUV ZHUH QGLQJ LW LQFUHDVLQJO\ GLIFXOW WR
MXVWLI\ WKH UHQWDOV FKDUJHG E\ &%' PDOOV ZKLFK DUH
RQO\MXVWOHVVWKDQWKRVHLQ%DQJNRNZKHUHIRRWWUDIF
PROPERTY INVESTMENT
DQGVSHQGLQJSRZHUZDVVLJQLFDQWO\KLJKHU
$FFRUGLQJWR*I.HFRQRPLFPDWWHUVDSSHDUHGWRWRS
WKHOLVWRIFRQFHUQVIRUWRGD\V$VLD3DFLFFRQVXPHUV
Consumers were reducing spending amid worries
about recession, unemployment and high prices. In
WKLV FRQWH[W ) % DQG FRQYHQLHQFH VWRUHV ZKLFK
provide the basic needs, still remained active. Zen
3OD]DSURYLGHVDJRRGH[DPSOHRIDODQGORUGUHVSRQGLQJ
to these trends, in announcing the conversion of its
UHWDLO VSDFH RQ WKH UVW WKUHH RRUV IURP DOO IDVKLRQ
EUDQGV WR ) % ZKLFK SODQQHG WR UHRSHQ E\ HDUO\
November.
As growth of the average Vietnamese income has
reduced from 55% in 2008 to 32.8% in 2012, the
retail market has also slowed down. The recovery of
WKHHFRQRP\ZLOOEHIROORZHGE\WKHSLFNXSRIWKHUHWDLO
market, but in the meantime landlords must remain
responsive to the needs of retailers.
6XSSO\ LQ WKH QH[W IRXU TXDUWHUV LV OLPLWHG WR IRXU
GHYHORSPHQWVZLWKWZRUHWDLOFHQWUHVLQ'LVWULFW%RWK
7KDR'LHQ3HDUODQG&DQWDYLO3UHPLHUDUHWWLQJRXW
ZKLFK ZLOO UHTXLUH WZR WR WKUHH TXDUWHUV WR FRPSOHWH
7LPHV6TXDUHDQG6DLJRQ$LUSRUW3OD]DDUHH[SHFWHG
to open in Q4/2013.
7KH$VLD3DFLFDUHDKDVGULYHQUHWDLOJURZWKLQUHFHQW
years and is expected to continue due to its strong
demographics and economic potential growth.
-DSDQHVH0RQJROLDQ EDUEHFXH FKDLQ %DU % 4 3OD]D
plans to expand across Asia with 50 new outlets in
0DOD\VLD ,QGRQHVLD 9LHWQDP &DPERGLD DQG
0\DQPDULQWKHQH[WYH\HDUV&HQWUDO3DWWDQDWKH
UHWDLOSURSHUW\DQGPDQDJHPHQWDUPRI&HQWUDO*URXS
ZKLFKRSHUDWHV&HQWUDO3OD]D&HQWUDO:RUOGDQG&HQWUDO
Festivals, says an investment worth 15 billion baht
(US$468 million) will be spent on three new shopping
PDOOV LQ 0DOD\VLD ,QGRQHVLD DQG 9LHWQDP ZLWKLQ WKH
QH[W YH \HDUV 0RUHRYHU )OLJKW WKH $PHULFDQ
specialty retailer of travel products, has expressed its
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DQG-DSDQ
Developers traditionally try to charge the highest
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PROPERTY INVESTMENT
91
PROPERTY INVESTMENT
long term, a sustainable mix of planned retail is an
essential element in assuring continuing rental income.
7DNH WKH 9LHWQDPHVH UHDO HVWDWH FRPSDQ\ 9LQ*URXS
as an example, which has recently launched a brand
9LQ.&RULHQWHGDWFKLOGUHQ7KHUVW9LQ.&IRFXVLQJ
on offering products and services for a childs full
development, will be developed at Times City urban
FRPSOH[ LQ +DQRL FRYHULQJ RYHU VP :KHQ
ODXQFKHG 7LPHV &LW\ ZLOO EHFRPH WKH UVW PRGHO RI
shopping centres, medical care and educational services
GHGLFDWHG WR FKLOGUHQ7KH VHFRQG 9LQ.& LV SODQQHG
IRU WKH +&0& 9LQFRP &HQWHU DQG ZLOO EH UHSOLFDWHG
across the country in locations such as Da Nang,
4X\ 1KRQ &DQ 7KR 4XDQJ 1LQK DQG +DL 3KRQJ
The groups proactive strategy promises to introduce
a new trend to the Vietnamese retail market. The
performance of this new strategy remains to be seen,
however, it again highlights the importance of a proper
sustainable tenant mix.
SERVICED APARTMENT SECTOR
The serviced apartment sector has seen an increasingly

fragile backdrop during recent times, as both rents and
occupancy have fallen. The tough operating conditions
that are being faced are owing to a continually
H[SDQGLQJXQLYHUVHRIEX\WROHWLQYHVWRUVXVLQJWKH
bottom of the market as their opportunity to expand
or begin their property investment portfolios; and the
increasingly tightened housing budget. In Q3/2013,
&%5(HQTXLULHVIURPKRXVLQJEXGJHWVEHORZ
nearly tripled while decreasing by one third in the
GHHSSRFNHWUDQJH86DVFRPSDUHGWRWKH
SUHYLRXVTXDUWHU
To cope with the largely trimmed housing budget,
landlords of all grades have implemented various
LQQRYDWLYHZD\VWRVXUYLYH,QVWHDGRITXRWLQJRQ
a monthly basis, they offer daily/weekly packages
and even weekend deals like hotels; (2) In addition
to marketing in newspapers or their own websites,
projects of all scales now use online booking agents
(Agoda, Trip Advisor, etc.), which were previously
XVHG E\ ODUJHVFDOH SURMHFWV DQG ,QVWHDG RI
SURYLGLQJDIXOO\IXUQLVKHGDSDUWPHQWZLWKDOOVHUYLFHV
some offer different service and furniture packages,
LQFOXGLQJ$Q3KX3OD]D6DLJRQ3DYLOORQHWF
92
PROPERTY INVESTMENT
The volatility seen in vacancy combined with largely

VRIWHQHG UHQWV ZDV WKH UHVXOW RI JHQXLQHO\ HUFH
FRPSHWLWLRQ IURP EX\WROHW ODQGORUGV SURYLGLQJ
JRRGTXDOLW\ DFFRPPRGDWLRQ IRU ERWK H[SDWULDWH DQG
domestic renters. With sales continuing to grow at
VRPHKLJKHQGUHVLGHQWLDOSURMHFWVDQGJLYHQWKHPRUH
DIIRUGDEOHDQGH[LEOHSD\PHQWWHUPVDYDLODEOHPDQ\
individual owners are using this as an investment
opportunity as an alternative to other traditional
investment sectors such as the stock market or gold.
%X\WROHWDSDUWPHQWVW\SLFDOO\IRXQGLQ'LVWULFWVRU
DUH RIWHQ KDOI RU WKLUG RI WKH SULFH RI D VHUYLFHG
apartment and thus with housing budgets still being
constrained, represent a logical choice for tenants.
The serviced apartment sector is probably more
closely linked to FDI than other markets. With an
LQFUHDVH RI \R\ VHHQ LQ WKH UHJLVWHUHG )', LQ
WKHUVWQLQHPRQWKVLWLVEHOLHYHGWKDWWKLVVHFWRULV
QRW VDWXUDWHG 2I FRXUVH WKH VHUYLFHG DSDUWPHQW
business may not experience the popularity seen
between 1995 and 2005, but it is still a valid sector
WR FRYHU +RZHYHU VLQFH WKH H[SDWULDWH SRSXODWLRQ
has been changing, the economy since 2008 has
not performed so well and there are numbers of
alternatives becoming available in District 2, District
%LQK7KDQK'LVWULFWDQG7DQ%LQK'LVWULFWODQGORUGV
and prestigious international operators such as The
$VFRWW /LPLWHG 6HGRQD ,QWHUQDWLRQDO ,+* )UDVHUV
+RVSLWDOLW\ WKRXJK UHPDLQLQJ RSWLPLVWLF DERXW WKH
markets potential, have to build a completely different
type of building and provide different services, different
packaging and different sizes from 2014 onwards.
(Reproduced by kind permission of
CB Richard Ellis)
PROPERTY INVESTMENT
93
VIENAM BUSINESS
ENVIRONMENT
Language
Accounting System
Banks
Government Administration
Taxation
Insurance
Workforce
FINANCIAL
LANGUAGE
9LHWQDPHVH ZDV GHFODUHG WKH RIFLDO ODQJXDJH RI
9LHWQDPLQDVPXFKDVRIWKHYRFDEXODU\LV
borrowed from Chinese and the intonation is similar to
Cantonese. It is spoken by approximately 90% of the
Vietnamese population and ranked as the worlds 15th
most spoken language. English, however, is widely
used in the business community.
ACCOUNTING
$FFRXQWLQJ UHFRUGV DUH UHTXLUHG WR EH PDLQWDLQHG LQ

91')RUHLJQLQYHVWHGEXVLQHVVHQWLWLHVFDQVHOHFWD
foreign currency to be used for their accounting records
DQG QDQFLDO VWDWHPHQWV SURYLGHG WKDW WKH\ PHHW DOO
UHTXLUHPHQWV VSHFLHG LQ &LUFXODU 77%7&
LVVXHGE\WKH0LQLVWU\RI)LQDQFH0R)$FFRXQWLQJ
UHFRUGVDUHUHTXLUHGLQ9LHWQDPHVHODQJXDJHEXWWKLV
FDQEHFRPELQHGZLWKDFRPPRQO\XVHGIRUHLJQODQ
JXDJH$WWKHHQGRIDQDQFLDO\HDUWKHHQWLW\PXVW
SHUIRUPDSK\VLFDOFRXQWRILWV[HGDVVHWVFDVKDQG
inventory.
96
&RPSDQLHVRSHUDWLQJLQ9LHWQDPDUHUHTXLUHGWRFRP
ply with the Vietnam Accounting System (VAS). It is
possible to diverge from the standard VAS, but this
LVVXEMHFWWRVSHFLFDSSURYDOIURPWKH0R)7KHWD[
authorities treat VAS non compliance as a basis for tax
reassessment and imposition of penalties, including
withdrawal of CIT incentives, disallowance of expense
deductions for CIT purposes and disallowance of input
VAT credits/refunds.
7KHDQQXDOQDQFLDOVWDWHPHQWVRIDOOIRUHLJQLQYHVWHG
business entities must be audited by an independent
auditing company operating in Vietnam. Audited
DQQXDO QDQFLDO VWDWHPHQWV PXVW EH FRPSOHWHG
ZLWKLQGD\VIURPWKHHQGRIWKHQDQFLDO\HDU7KHVH
QDQFLDOVWDWHPHQWVVKRXOGEHOHGZLWKWKHDSSOLFDEOH
OLFHQVLQJERG\0R)ORFDOWD[DXWKRULW\'HSDUWPHQWRI
6WDWLVWLFVDQGRWKHUORFDODXWKRULWLHVLIUHTXLUHGE\ODZ
FINANCIAL
BANKS
%DQNLQJ LQGXVWU\ RI 9LHWQDP LV FRQVLGHUHG DV \RXQJ
in terms of integration to worldwide, until in 1990, it
ZDV RQO\ UHVWUXFWXUHG WR VHSDUDWH WKH 6WDWH %DQN RI
9LHWQDP IURP FRPPHUFLDO EDQNV 7KH 6WDWH %DQN RI
Vietnam acts as a central bank and a supervisory
institution and is also a main share holder in
VWDWHRZQHGFRPPHUFLDOEDQNV62&%/DWHUPRUH
forms of commercial banks are established especially
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5% of the population regularly using banking service,
DQG KROGLQJ EDQN DFFRXQWV LW KDV SURYLGHG
good opportunities for growth, however, competition
in banking sector is considered as very harsh.
%HVLGHV 9LHWFRPEDQN 9LHWLQEDQN $JULFXOWXUH %DQN
%,'9 DV WRS RI 62&% WRS MRLQW VWRFN EDQNV FDQ EH
QDPHGDV$&%6DFRPEDQN7HFKFRPEDQN,QGRYLQD
%DQN DV WRS RI MRLQW YHQWXUH EDQN 1RZDGD\V LQ WKH
banking sector, we can see a variety range of plenty
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40 jointstock banks, and 40 foreign invested banks
RU EUDQFKHV RI IRUHLJQ EDQNV UHSUHVHQWDWLYH RIFHV
MRLQWYHQWXUH EDQNV LQ SOD\JURXQG$OWKRXJK DOO WKH
ELJQDPHVRIIRUHLJQEDQNVVXFKDV&LWLEDQN+6%&
6WDQGDUG &KDUWHUHG %DQN$1= DUH DOO SUHVHQFH LQ
Vietnam, the banking system is still characterized by
WKHVWURQJGRPLQDQFHRIPDUNHWVKDUHE\62&%
2IFLDO FXUUHQF\ LQ 9LHWQDP LV 91' KRZHYHU ODZV
allow local and foreign entities and individuals to hold
foreign currency at bank accounts as deposit/savings
and funds received/transferred from foreign countries
in freely. Nevertheless, domestic payment, usage or
cross border outward transfer of foreign currency is
prohibited or limited to certain kinds of transactions
DQGLWUHTXLUHVVXSSRUWLQJGRFXPHQWV
%DQNV FDQ SURYLGH FXVWRPHUV ZLWK DOO NLQGV RI VHUYLFHV
however, it is more characterized by commercial
banking market rather than having a clear division
on investment banking and commercial banking.
FINANCIAL

FINANCIAL
BANKS (contd)
98
Commercial banking services are such as deposits,

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made in both VND or foreign currencies and deposit is
LQFOXGLQJFXUUHQWDFFRXQWVDYLQJDFFRXQWVDQG[HG
deposit from 1 months to 24 months. Interest rate for
VND is always higher than foreign currencies (currently
DYHUDJH91'LQWHUHVWUDWHLVSDFRPSDUHGWR
USD interest rate at 1.2% p.a). Loan services comprises
of short term loan (under 1 year), medium term loan
(from 1 to 5 years) and long term loan (over 5 years.)
Loans in foreign currencies (popular USD) are restricted
to companies who have the proceeds in foreign currency.
*HWWLQJ ORDQV LQ 86' LV DOVR DOZD\V FKHDSHU WKDQ
loans in VND especially for those who having source
RIIXQGIURPWKHLUH[SRUW%DQNVDOZD\VRIIHUDFUHGLWOLQHWR
WKHLUFXVWRPHUVWRQDQFHDOOWKHLUQHHGLQVKRUWWHUP
working capital or long time investment in machineries
or factories. Credit line may be used for loan
disbursement, trade finance or bank guarantee
VHUYLFH 7UDGH QDQFH FDQ EH OLVWHG DV /& VHUYLFH
VLJKW RU XVDQFH /& ELOOV IRU FROOHFWLRQ '3 RU '$
L/C negotiation, shipping guarantee, factoring. The
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'3DQG'$ZKLOHIDFWRULQJ VHUYLFH LV UDUHO\ XVHG
%DQN JXDUDQWHH VHUYLFHV DUH FRPSULVHG RI PDQ\
types, some commonly used in the economy are such
as bid bond, performance bond, warranty guarantee,
payment guarantee or advance payment guarantee
Fee for issuance of bank guarantee is 2% p.a. of the
guarantee value plus a small amount charge on doc
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for them a bank guarantee by deposit fund to bank or
from a credit line offered by bank.
FINANCIAL
GOVERNMENT ADMINISTRATION
The National Assembly is the highest representative
organ of the people and the highest organ of the state
SRZHURIWKH6RFLDOLVW5HSXEOLFRI9LHWQDP0HPEHUV
DUHHOHFWHGIRUDYH\HDUWHQXUHWKURXJKQDWLRQZLGH
elections. Sittings of the National Assembly are held
twice a year and have full constitutional and legislative
powers. The standing committee of the National Assembly
is responsible for enforcement of laws. Its functions
DUHFDUULHGRXWWKURXJKWKH0LQLVWULHV6WDWH&RPPLWWHHV
DQG *HQHUDO 'HSDUWPHQWV E\ SURPXOJDWLQJ DQG
H[SODLQLQJWKH&RQVWLWXWLRQODZDQGGHFUHHODZV
7KH&RXQWU\V3UHVLGHQWLVWKHKHDGRIVWDWHHOHFWHG
by the National Assembly from among its members to
UHSUHVHQWWKH6RFLDOLVW5HSXEOLFRI9LHWQDPLQLQWHUQDO
DQGIRUHLJQDIIDLUV7KH9LFH3UHVLGHQWLVSURSRVHGE\
WKH 3UHVLGHQW DQG HOHFWHG E\ WKH 1DWLRQDO$VVHPEO\
from the representatives. The National Defense and
Security Council has the duty to mobilize all forces and
SRWHQWLDOVRIWKHFRXQWU\WRGHIHQGWKH+RPHODQG
7KH*RYHUQPHQWLVWKHH[HFXWLYHRUJDQRIWKH1DWLRQDO
Assembly and shall report to the National Assembly,
the National Assembly standing committees and the
&RXQWU\V3UHVLGHQW7KH*RYHUQPHQWFRQVLVWVRIWKH
3ULPH0LQLVWHU'HSXW\3ULPH0LQLVWHU0LQLVWHUVDQG
+HDGV DW PLQLVWHULDO OHYHO 7KH 3ULPH 0LQLVWHU LV
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Assembly and has the term of 5 years. The Deputy
3ULPH0LQLVWHUVDUHWKHDVVLVWDQWVRIWKH3ULPH0LQLVWHU
DQGPD\EHGHOHJDWHGE\WKH3ULPH0LQLVWHUGXULQJKLV
DEVHQFH7KH0LQLVWHUVDQG+HDGVDWPLQLVWHULDOOHYHOV
take on the State management of allotted branches
RUHOGV
7KH 3HRSOHV 6XSUHPH &RXUW LV WKH KLJKHVW MXGLFLDO
RUJDQRIWKH6RFLDOLVW5HSXEOLFRI9LHWQDP7KHFRXUW
FRQVLVWV RI WKH 7ULEXQDO 3UHVLGHQW 9LFH 7ULEXQDO
3UHVLGHQW MXGJHV WKH MXURU DQG WKH VHFUHWDU\ RI WKH
FRXUW 0RUHRYHU WKH FRXUW LV FRPSRVHG RI WKH MXGJH
&RXQFLO MXGJH &RPPLWWHH WKH 0LOLWDU\ &RXUW DQG
criminal court, civilian court, the court of appeal and
the assistant apparatus.
FINANCIAL
99
FINANCIAL
TAXATION
TAXATION IN THE REAL ESTATE INDUSTRY
I. Corporate Income Tax (CIT)
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from transferring or leasing property are subject to
Corporate Income Tax (CIT) at the standard tax rate
RI IURP -DQXDU\ DQG VXEVHTXHQWO\
UHGXFHGWRIURP-DQXDU\
:LWKHIIHFWIURP-XO\D&,7UDWHRIVKDOO
be applicable to income from selling, leasing and
financial leasing of social housing. Aside from this,
real estate developers generally are not given preferential
tax rates, tax holidays or other tax reductions except
for special cases such as projects located in poor
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residential houses for the poor or workers.
For advanced payments for properties under development,

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either at 25% on provisional income if the corresponding
expenses can be determined and matched with the
revenue or 1% on advanced payments if not.
100
:KHUHWKHHQWHUSULVHVXEOHDVHVRXWDSURSHUW\LIWKH
lessee pays a lump sum for a number of years and
certain conditions are met then the lessor is able to
recognise revenue by one of two methods: (i) on allocated
RQD\HDUE\\HDUEDVLVRULLDOXPSVXPEDVLV
Losses incurred in a given year can be consecutively
FDUULHGIRUZDUGIRU\HDUV:LWKHIIHFWIURP-DQXDU\
XQGHUWKHQHZ/DZRQ&,71R4+
losses from real estate transfer activities can be offset
against the taxable income of other business activities
of the relevant tax year.
/DQG XVH ULJKWV /85V ZLWK LQGHQLWH WHUPV PD\
QRWEHGHSUHFLDWHGIRUWD[SXUSRVHV+RZHYHU/85V
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activities, can be amortized over the prescribed land
use duration.
FINANCIAL
$Q\ JDLQV IURP WKH UHYDOXDWLRQ RI D /85 IRU FDSLWDO

contribution purposes related to residential housing for
sale should be recognized as other income at once in
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capital contribution in the case of income generating
asset projects can generally be recognized as income
over a period of up to ten years.
II. Value Added Tax (VAT)
7KHWUDQVIHURID/85ZLWKRXWDQ\UHODWHGLQIUDVWUXFWXUH
LVQRWVXEMHFWWR9$7&RQYHUVHO\WKHWUDQVIHURI/85
with an infrastructure and building component is
JHQHUDOO\ VXEMHFW WR 9$7 DW +RZHYHU WKH ODQG
value can generally be excluded from the revenue
subject to VAT. Input VAT incurred for construction
costs can generally be claimed as an input VAT credit.
2XWSXW 9$7 ZLOO DOVR EH DSSOLHG WR WKH DGYDQFHG RU
deposit amounts.
,QDGGLWLRQZLWKHIIHFWIURP-XO\D9$7UDWH
RI DSSOLFDEOH WR FRQWUDFWV RI VHOOLQJQDQFLDO
OHDVLQJQDQFLDO OHDVLQJ IRU VRFLDO KRXVLQJ ZKLFK
VDWLVI\ WKH VWLSXODWHG FRQGLWLRQV 0RUHRYHU D
VAT rate deduction is applied to selling, leasing and
QDQFLDO OHDVLQJ RI FRPPHUFLDO KRXVLQJ LQFOXGLQJ
FRPSOHWHGDSDUWPHQWVZLWKRRUDUHDVRIOHVVWKDQ
P2 and a selling price of less than VND15 million/m2.
III. Stamp Duty
Stamp duty is payable at the transfer of title of real
HVWDWHSURSHUW\E\WKHEX\HU6RPHVSHFLFWUDQVIHUV
may be exempted from the stamp duty. Stamp duty
is imposed at 0.5% on the value of the property up to
VND 500 million (approx. USD 25,000) per asset per
transaction.
IV. Foreign Contractor Tax (FCT)
Foreign companies with no legal entity set up in
9LHWQDP LH FODVVLHG DV D )RUHLJQ &RQWUDFWRU RU
FC) supplying goods and services to Vietnamese
FINANCIAL
101
FINANCIAL
TAXATION (contd)
buyers and deriving income from Vietnam (e.g. a
construction contractor or project management
service) are subject to Vietnamese FCT.
VAT and CIT are the two components of the FCT.
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Full registration method with maintenance of books
and accounts in Vietnam under Vietnam Accounting
System; (ii) Deemed Withholding method and (iii) the
+\EULGPHWKRGZKLFKFRQVLVWVRISD\LQJ9$7RQWKH
conventional deduction method like a Vietnamese
company but paying CIT on a Deemed Withholding
method basis.
The Deemed Withholding method is the most common
approach in practice by which the contracting Vietnamese
SDUW\LVUHVSRQVLEOHIRUUHJLVWHULQJZLWKKROGLQJOLQJ
and paying the FCT due from each payment made to
the FC. The applicable rates vary depending on the
nature of goods and services provided. For projects
having a substantial portion of local purchases, the
+\EULG PHWKRG LV RIWHQ DSSOLHG VR WKDW WKH )&V FDQ
claim credit on the input VAT incurred on local purchases
but can still pay the CIT on a deemed basis.
V. Personal Income Tax (PIT)
102
*HQHUDOO\UHDOHVWDWHRWKHUWKDQDSURSHUW\XVHGDV
D VROH UHVLGHQWLDO SURSHUW\ DQG VRPH RWKHU VSHFLF
exempt transactions) transferred by an individual is
VXEMHFW WR 3,7 3URSHUW\ WUDQVDFWLRQV VXEMHFW WR 3,7
include the transfer of the right to buy, and the transfer
of the right to lease.
7\SLFDOO\D9LHWQDPWD[UHVLGHQWKDVWRSD\3,7XQGHU
one of the following two methods:
(i) At 25% on the net gain assessed by the difference
between the transaction price less the cost and relevant
expenses; or
(ii) 2% on the transfer price, if the cost cannot be
determined.
FINANCIAL
+RZHYHUUHFHQWSUDFWLFHKDVLQGLFDWHGWKDWLLDERYH
would apply in most cases.
7KHWUHDWPHQWRIQRQ9LHWQDPHVHWD[UHVLGHQWVLVOHVV
FRPSOLFDWHGDVWKH\VLPSO\PXVWSD\3,7DWRIWKH
transfer price.
VI. Non-agricultural land-use tax
,QDGGLWLRQHIIHFWLYH-DQXDU\QRQDJULFXOWXUDO
ODQGXVHWD[1$/87LVJHQHUDOO\DSSOLFDEOHWRWKH
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residential, production or business purposes.
The calculation of the tax liability is generally based
on the land area, price of land (normally set by the
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)RU UHVLGHQWLDO ODQG KROGLQJ D PXOWLRRU EXLOGLQJ RU
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establishment, the applicable tax rate is 0.03%.
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H[LVWLQJ ODQG XVHUV DUH UHTXLUHG WR VXEPLW DQ LQLWLDO
WD[GHFODUDWLRQIRUWKH\HDUDWWKHWD[RIFHRI
WKH UHOHYDQW GLVWULFW QR ODWHU WKDQ -XQH
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there is no change in tax payer or tax liability. If there
LVDQ\FKDQJHWKHWD[SD\HULVUHTXLUHGWRVXEPLWDQ
amended declaration within 30 days following the date
on which the change takes effect. The tax payer may
RSWWRSD\WKHQRQDJULFXOWXUDOODQGXVHWD[RQRQHRII
basis or twice a year but the annual payment of tax
may not be later than 31 December each year.
NALUT exemption and reduction can be granted to
certain types of land including land related to investment
projects in the sectors eligible for special investment
incentives, investment projects in geographical areas
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VSHFLFFDVHV
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103
FINANCIAL
INSURANCE
Overview
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and terms are generally a function of the world market with
due consideration given to local factors however it should
be noted that VAT of 10% applies to insurance premiums
on policies written within Vietnam. While the overall ability
to insure large or complicated risks entirely within Vietnam
is limited, the Vietnamese insurance industry can
nonetheless insure any size risk through reinsurance
arrangements with international reinsurance organisations.
The leading reinsurers and those who carry more than
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RU%E\$0%HVWRU%DDE\0RRG\VRUHTXLYDOHQW
104
Vietnam passed a comprehensive Insurance Law in

December 2000 which took effect on April 1, 2001. The
Amendment of Insurance Law has been passed last year
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as: the insurance market is professional & open, foreign
insurers are allowed to establish a branch in Vietnam or
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gives the power to the government to release detailed
guidance and to license such transactions. The Decree
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provide guidance on the implementation of the Amended
Insurance Law. In addition, the government issued Circular
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provide guidance on penalties for administraion offences
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as of December 2011.
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interest in considering more technical coverages such as
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costs or liability of a particular project.
Construction insurance still tends to be left to the contractor to
arrange rather than the owner which can give rise to gaps
in cover when projects are delayed or split into smaller
packages. There may also be gaps when the project
passes from construction to operation.
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Compulsory Insurances in Vietnam

Compulsory insurances are regulated in insurance laws &
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Insurance Class
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Companies (Stockbrokers)
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VND50,000,000 to VND70,000,000 is imposed for
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Companies
Professional Indemnity for Architects & Engineers
Effected. Waiting for guidance. Government

project owners often required & referred to
this regulation
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Construction Works Insurance
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performing Radiation Jobs
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employees under the Vietnamese labour law the purchase
of worker compensation insurance can act as a risk transfer
method to protect against these liabilities.
FINANCIAL
105
FINANCIAL
INSURANCE (contd)
106
Market Players
Insurers
There are numerous domestic and foreign companies
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for construction sectors in Vietnam.
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Insurance (SVI)
There is only one reinsurer:
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Brokers
As insurance is best arranged through a licensed
insurance broker who can help companies to assess
the underlying risks and then arrange appropriate
insurance on their behalf, there are a number of licensed
insurance brokers.
International:
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Savoye Willis
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WORKFORCE
The population of Vietnam is circa 90 million with
a labour force estimated at over 53 million (as the
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which the probation period is 60 days and the maximum
working time is restricted to ten hours per day and
forty eight hours per week. This new Labor Code also
allows for the practice of labour subleasing which may
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demands in the labor market although already popular
in Vietnamese Industrial area.
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operating in localities of region is USD 128 per month
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November 2013).
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heavy protectionist policy for Vietnamese working for
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salary for Social insurance plus 3% of basic salary
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for Unemployment insurance. The Social insurance
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The employer (except for contractors) shall annually
determine the demand for foreign workers for positions
in which Vietnamese workers are not competent, and
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RIWKHSURYLQFHVRUFHQWUDODIOLDWHGFLWLHVKHUHLQDIWHU
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provinces shall issue written approval to the employer
for the employment of foreign workers in each position.
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2013). During the implementation, any change in labor
FINANCIAL

FINANCIAL
WORKFORCE (contd)
demand made for foreign workers should be reported
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provinces.
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workers, the invitation to tender must specify the
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are needed for the contract. It is prohibited to employ
foreign workers to do the jobs that can be satisfactorily
done by Vietnamese workers, especially manual jobs
and unskilled jobs.
The assessment and selection of contractors must

comply with the regulations on employment in the
invitation to tender and other regulations on tendering
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dated 05th September 2013)
108
Foreigners working for enterprises, organizations or

for individuals in Vietnam must have work permits
granted by the provincial/municipal agencies in charge
of the State management over labor; such work permits
shall be valid for a period of time corresponding to the
labor contracts term / agreements term but for no
PRUH WKDQ PRQWKV 3XUVXDQW WR WKH 'HFUHH
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FINANCIAL
109
OTHER INFORMATION
Vietnam Map
Domestic Routes
Relevant Websites
Public Holidays
Prime Rates
IDD Codes and Time Differences
Conversion Factors
Some Interesting Facts
Vietnam Key Data
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OTHER INFORMATION
VIETNAM MAP
112
(Source: Wikimedia)
OTHER INFORMATION
DOMESTIC ROUTES
DISTANCE
FLIGHT TIME
MILES/KMS OUTBOUND RETURN

HA NOI TO
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Da Lat
662/1065
1:40
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HO CHI MINH CITY TO
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(Source: Vietnam Airlines)
OTHER INFORMATION
113
OTHER INFORMATION
RELEVANT WEBSITES
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114
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Vietnam National Administration of Tourism
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9LHWQDP5HJLVWHU2IFH
OTHER INFORMATION
http://www.chinhphu.vn
http://www.mps.gov.vn
http://www.moha.gov.vn
http://www.moj.gov.vn
http://www.mpi.gov.vn
http://www.mof.gov.vn
http://www.moit.gov.vn
http://www.agroviet.gov.vn
http://www.mt.gov.vn/
http://www.moc.gov.vn/
http://www.monre.gov.vn
http://mic.gov.vn
http://www.molisa.gov.vn/
http://www.cinet.gov.vn/
http://www.most.gov.vn/
http://www.moh.gov.vn
http://www.moet.gov.vn
http://www.mofa.gov.vn
http://www.sbv.gov.vn
http://www.gso.gov.vn
http://www.tcvn.gov.vn/
http://www.vietnamtourism.com/
http://www.customs.gov.vn
http://www.vr.org.vn/
OTHER INFORMATION
115
OTHER INFORMATION
PUBLIC HOLIDAYS
2014
Vietnam
Normal Scheduled Holidays
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-DQ
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3,4 Feb #
Liberation Day of Saigon

International Labour Day
30 Apr
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National Day
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Christmas Day
2 Sep
9 Apr
25 Dec
# substitue for 1 & 2 Feb (Sat and Sun)
China
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116
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Labour Day %
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National Day#
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01 Feb
02 Feb
05 Apr
0D\
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08 Sep
2FW
2FW
2FW
* 3 - 6 Febrary 2014 are holidays, 26 January 2014 and 8

Febrary 2014 are working days.
$ 7 April 2014 is holiday.
% 2 & 3 May 2014 are holidays, 4 May 2014 is working day.
+ 31 May 2014 and 1 June 2014 are holidays.
^ 6 & 7 September 2014 are holidays.
# 4 - 7 October 2014 are holidays, 28 September 2014 and 11
October 2014 are working days.
OTHER INFORMATION
2014
HongKong
7KHUVWGD\RI-DQXDU\
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7KHQGGD\RI/XQDU1HZ<HDU
7KHUGGD\RI/XQDU1HZ<HDU
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Labour Day
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Tuen Ng Festival
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The day following Chinese
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Festival
Christmas Day
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Christmas Day
-DQ
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01 Feb
02 Feb*
03 Feb
05 Apr
18 Apr
19 Apr
21 Apr
0D\
0D\
-XQ
-XO
09 Sep
2FW
2FW

25 Dec
26 Dec
* As the 3rd day of the Lunar New Years day in 2014 falls on a
Sunday, the day following the 4th day of Lunar New Year will be
designated as an additional general holiday.
OTHER INFORMATION

OTHER INFORMATION
PUBLIC HOLIDAYS (contd)
2014
Macau
118
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(DVWHU0RQGD\
The day before Easter
the Day before Easter
Labour Day
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Festival
National Day
The day following National Day
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National Day
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All Souls Day
All Souls Day
Feast of the Immaculate Conception
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of Immaculate Conception
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Winter Solstice
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Winter Solstice
Christmas Eve
Christmas Day
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-DQ
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01 Feb*
02 Feb*
03 Feb@#
04 Feb@#
05 Apr*
$SU#
18 Apr#

19 Apr
21 Apr@#
0D\
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09 Sep*#
2FW
2FW
2FW
2FW#
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02 Nov
03 Nov@
08 Dec#

20 Dec*
22 Dec
23 Dec@

24 Dec#
25 Dec#
26 Dec#
31 Dec@
# Banks Holiday
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@ Special Holiday Granted by Chief Executive for staff in Public
Administration
OTHER INFORMATION
2014
Brunei
1HZ<HDUV'D\
3URSKHW0XKDPPDGV%LUWKGD\
&KLQHVH1HZ<HDU
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National Day
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Anniversary of the
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Christmas Day
-DQ
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23 Feb
0D\
0D\
-XO
-XQH
-XO
-XO
-XO
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2FW
2FW
25 Dec
* Subject to Change
** Replacement for Fridays / Sundays
Fridays and Sundays are government off days
Singapore
1HZ<HDUV'D\
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Labour Day
Vesak Day
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Deepavali*
Christmas Day
-DQ
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1 Feb
18 Apr
0D\
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9 Aug
2FW
2FW
25 Dec
* Subject to changes
# The following Monday will be a public holiday.
OTHER INFORMATION
119
OTHER INFORMATION
2014
Philippines
A. Regular Holidays
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Labour Day
Independence Day
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(LGXO$GKD
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Christmas Day
5L]DO'D\
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18 Apr
09 Apr
0D\
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25 Aug
2FW
30 Nov
25 Dec
30 Dec
B. Special Holidays
(Non-Working Holidays)
120
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All Saints Day
All Souls Day (Additional)
Christmas Eve (Additional)
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19 Apr
21 Aug
01 Nov
02 Nov
24 Dec
31 Dec
OTHER INFORMATION
2014
Malaysia
1HZ<HDUV'D\
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Labour Day
Wesak Day
.LQJ$JRQJV%LUWKGD\
+DUL5D\D$LGLOWUL
National Day
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Deepavali*
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Christmas Day
-DQ
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01 Feb
0D\
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31 Aug#
16 Sep
2FW
2FW
2FW
25 Dec
* Subject to change
** Except Johor, Kelantan, Kedah, Perlis &Terengganu
# The following Monday will be an additional public holiday
Indonesia
1HZ<HDUV'D\
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International Labour Day
Waicak Day
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National Independence Day
Idul Fitri*
Idul Adha Day
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Christmas Day
-DQ
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18 Apr
0D\
0D\
0D\
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$XJ
-XO
-XO
2FW
2FW
25 Dec
* Subject to changes
OTHER INFORMATION
121
OTHER INFORMATION
2014
Thailand
1HZ<HDUV'D\
&KLQHVH1HZ<HDU
0DNKD%XFKD'D\
&KDNUL0HPRULDO'D\
Songkran Festival
National Labour Day

Coronation Day
5R\DO3ORXJKLQJ&HUHPRQ\'D\
9LVDNKD%XFKD'D\
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122
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13 Apr
14 Apr
15 Apr

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5 Dec
10 Dec
31 Dec
1 Substitute for 6 April 2013(Saturday)

2 Substitute for 13 Apr 2013(Saturday) and 14 Apr 2013 (Sunday)
3 Substitute for 5 May 2013(Sunday)
4 Substitute for 6 April 2014(Sunday)
OTHER INFORMATION
2014
India
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Sankranthi
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National Foundation day
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8 Sep
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25 Dec
123
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2014
Taiwan
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1 Feb
2 Feb
3 Feb
4 Feb
28 Feb
04 Apr
05 Apr
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08 Sep
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124
OTHER INFORMATION
PRIME RATES (as at 4th Quarter 2013)
RATE (%)
COUNTRY
Australia*
4Q
2009
4Q
2010
4Q
2011
4Q
2012
4Q
2013
3.21

4.50
3.25
2.50
%UXQHL
5.50
5.50
5.50
5.50
5.50
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5.40
5.60
6.90
6.40
6.15
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10.25
10.25

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5.00
5.00
5.00
5.00
5.00
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8.50

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6.50
6.50
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1.60
1.60
1.20
1.20
0DFDX
5.25
5.25
5.25
5.25
5.25
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5.55
6.30
6.60
6.60
6.60
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10.01

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14.32
13.52

11.29
10.38
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6.540

5.320
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5.38
5.38
5.38
5.38
5.38
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10.50
9.00
9.00
9.00
9.50
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2.38
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2.50
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0.50
0.50
0.50
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3.25
3.25
3.25
3.25
3.25
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8.00
9.00
9.00
9.00
9.00
Australia* = O/N Cash Rate

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Egypt *** = Overnight Lending Rate
New Zealand^ = SME Overdraft Rate
(Previously Business Base Lending Rate)
Pakistan^^= Weighted Average Lending Rate
South Korea+ = Call Rate of The Bank of Korea
(Implementation date is Nov 22nd 2012)
Thailand # = Minimum Loan Rate % per annum
(avg based on local bank)
Vietnam## = Min and in VND per year
Japan### =Long-term prime rate % per annum
(Implementation date is Dec/10/2010)
OTHER INFORMATION
125
OTHER INFORMATION
IDD CODES & TIME DIFFERENCES
126
OTHER INFORMATION
* Allowance should be made for seasonal time variations
OTHER INFORMATION

OTHER INFORMATION
CONVERSION FACTORS
128
OTHER INFORMATION
OTHER INFORMATION
129
OTHER INFORMATION
SOME INTERESTING FACTS
Vietnams history can roughly be divided into the following

periods:
130
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years (Neolithic) ago, cultures in the area included Son
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Government
Country Name
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3UHVLGHQW
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6RFLDOLVW5HSXEOLF
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2nd September 1945
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National Language
Vietnamese
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Cambodia 1,228 km,
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VTNP
Land Area
VTNP
Water
VTNP
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arable land 20.14% permanent
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VTNP
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3,444 km (excludes islands)
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4,639 km
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phosphates, coal, manganese,
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rare earth elements, bauxite,

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Economy
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LANGDON & SEAH VIETNAM CO LTD

Copyright Statement and information caveat

LANGDON & SEAH VIETNAM CO LTD

Credits to KPMG, Jardine Lloyd Thompson.

Project featured on Cover Page:

1. CONSTRUCTION COST DATA

2. GENERAL CONSTRUCTION DATA

LANGDON & SEAH VIETNAM CO LTD

LANGDON & SEAH VIETNAM CO LTD

CONSTRUCTION COST DATA

Construction Market 2014 Outlook

CONSTRUCTION COST DATA

LANGDON & SEAH VIETNAM CO LTD

As our global economy moves forward the world has in

CONSTRUCTION COST DATA

There remain some good news and some bad news

THE GLOBAL ECONOMY 2014

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

LANGDON & SEAH VIETNAM CO LTD

THE VIETNAM ECONOMY 2014

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

LANGDON & SEAH VIETNAM CO LTD

1,544  1,155

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

1 Industry and construction 12,518

Electricity, gas and

Water supply & Waste

LANGDON & SEAH VIETNAM CO LTD

Agriculture & Forestry &

Science & Technology

Education and Training

Administration & Support

(Source: Vietnam Investment Review)

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

(Source: Ministry of Planning and Investment)

VIETNAM ANNUAL ODA

(Source: General Statistics Office)

LANGDON & SEAH VIETNAM CO LTD

PROPORTION OF GDP (%)

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

(Source: General Statistics Office)

Note: 2013 from Jan to Sep

7. Mild steel rod reinforcement

8. High tensile rod reinforcement

1,730,000 - 1,900,000 270 - 300

11. 112.5mm thick brick walls

1,315,000 - 1,500,000 270 - 290

6. Reinforced concrete grade 30

5. Mass concrete grade 15

3. Remove excavated materials off site

2. Excavating for footings not exceeding 1.5m deep

1. Excavating basement not exceeding 2m deep

LANGDON & SEAH VIETNAM CO LTD

MAJOR RATES FOR SELECTED ASIAN CITIES

1,544 1,155

Administration & Support