Weekly Newsletter

A49
Vietnam Real Estate Week 3, September

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

Market situation (p.2)

Real estate foreign investment (p.2)

Vietnam in the world (p.3)

Real estate agents (p.3)

Websites of real estate companies in Vietnam (p.4)

Real estate projects and prices (p.5)

Real estate supply for customer groups (p.7)

Real estate legislation (p.8)

Real estate market forecast (p.9)

Construction material market last week (p.9)

Stock market last week (p.9)

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 VietRees – Vietnam Real Estate
MARKET SITUATION
Real estate speculators
withdraw
Tuoi Tre – 16 Sep, 2008
Collecting real estate
NLD – 17 Sep, 2008
REAL ESTATE FOREIGN INVETSMENT
A new urban area to appear
at Vinh Long
VIetRees – 15 Sep, 2008
VinaCapital to construct
a resort at Da Nang
VietRees – 16 Sep, 2008
Ha Cau project offers villas
for sale
TheSaiGonTimes – 18 Sep, 2008
Key economic zones in the
Central attract increasing FDI
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A49 Page 2
In late 2007 and early 2008, the speculators played a decisive role in heating up the real estate market.
The transactions with speculation purposes have accounted for 60 – 90% of the total transactions on the
market. Due to the high inflation, monetary tightening policy, high interest rates and increasing risks of
speculation, most speculators have been obliged to withdraw from the market. The fact that overseas
Vietnameses or foreigners are eligible to buy houses will not have significant effects on the market in the
near future because the procedures have still been difficult. Currently, the construction costs have risen
by 10 – 30% or even doubled as compared with the beginning of this year and this has pushed up the
costs of the output. According to the experts, the real estate market will not have dramatic movements
in the coming time due to the fact that the supply is new and the payable demands have not been
improved yet.
The recent movements have showed that property prices have had tendency to level off. Although the
transactions and the property prices at some areas have been on a slight uptrend, the current
transactions have been mainly affected by those who have the real housing demands and these
seperate movements cannot warm up the market. Although the property prices at the CBDs of the big
cities will remain high, meanwhile, the property prices in the areas that have improved infrastructures will
continue to increase. But the general situation is that the market will still be quiet. According to optimistic
investors, the market will be eventful again in early 2009 or in the end of 2009 at the latest.
According to an expert, besides the supply and the demand, “the wisdom of the crowd” will have a great
control on the real estate market. If the speculators rebuild this “wisdom”, the market can make a quicker
recovery. The new property supply will still be short and the transactions will mainly focus on the ongoing
existing projects.
The real estate prices, especially the prices of apartments and project land have dropped by 40 – 60%
and are levelling off. In the meantime, the market has seen a phenomenon that small and private
investors and even project investors are collecting properties.
The investors are hunting for the apartments and ground-bases of those who have been “holding”
keeping properties thanks to the bank loans in the past time. Currently, these property-holders are unfit
to hold their properties any longer, so they are obliged to sell the properties. Not only small customers
but also big investors are silently collecting the apartments of these kinds. However, because these
customers are using idle money, they are cautiously seeking and waiting for the apartments whose
prices are lower than market prices.
According to an expert, this situation is due to the law of market. When prices go down, there will be
buyers. When the prices become more competitive, the buyers will take advantage of this to buy more.
There also is the posibility that some overseas Vietnameses “walk a step ahead” and take advantage of
market opportunities after receiving the information on extending the subjects of overseas Vietnameses
eligible to own houses in Vietnam.
Vinh Long Provincial People’s Committee has licensed Sterling Capital Partners Asia (Pte) Ltd. Co. to
survey the site of investment for Mekong City new urban area at My Hoa commune, Binh Minh suburban
district. The company will report the survey and the overall planning of the project. The Department of
Planning and Investment has cooperated with the authorized departments and branches to provide
guidelines and necessary information for the company.
VinaCapital Danang Resort Limited Company (belonging to VinaCapital Group) shows that they will
invest in the construction of JW Marriott Danang Resort of 5-star standards at Ngu Hanh Son District, Da
Nang. The project includes 271 guest rooms, restaurants, swimming pools, spas and conference rooms
with a total investment of 60 million USD.
The project is expected to be commenced in the middle of 2009 and completed in 2011. The company
has chosen Marriott International Hotel Management Group to be the long-term manager of the resort.
RDLVINA Company - the sole sales representative for the project of housing area and Ha Cau trade
center - shows that 62 villas will be offered for sale in the first stage.
The project covers a site of 4.6 hectares at Ha Cau ward, Ha Dong City and includes 100 villas, 5 blocks
of 27 - 32 storey apartment buildings and 1 block of 20-storey commercial building comprising offices,
supermarkets and cinemas. This project is invested by Hyundai RNC Construction Co., Ltd with a total
investment of nearly 200 million USD and it is expected to be completed in 2011.
According to Foreign Investment Bureau under the Ministry of Planning and Investment, until the second
quarter, the key economic zone in the central has attracted nearly 469 million USD. Until August, the FDI
has reached over 1.12 billion USD.
Thua Thien Hue has always been the leading in the five localities in attracting FDI, surpassing Danang,
Quang Nam, Quang Ngai, Binh Dinh, increasing from 298 million USD (in the first quarter) to 1 billion
USD (in the end of the August).
Until the end of the August, 5 provinces and cities in the region have 264 valid projects with a total
registered capital of nearly 5.8 billion USD, averaging about 20 million USD for each project.
 VietRees – Vietnam Real Estate
Fields atracting most FDISource: General
Statistics Office
VIETNAM IN THE WORLD
Vietnam is one of the top 10
countries in attracting FDI
Edited by VietRees – Sep, 2008
REAL ESTATE AGENTS
UIDC chooses architectural
design for the project
Kinh Te Do Thi – 15 Sep, 2008
Sacomreal–S signs a brokerage
contract to sell apartments
VietRees – 16 Sep, 2008
BMC – Hung Long pledges
to hand over its project before
the deadline
Dien Dan Doanh Nghiep – 17 Sep, 2008
Dat Xanh opens its branch
at Binh Duong
VietRees – 17 Sep, 2008
Hai Dang seeks design for
Lighhouse
TheSaiGonTimes – 18 Sep, 2008
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A49 Page 3
In comparison with the last month,
oil & gas and heavy industry have
still been the two leading fields in the
list with increases in the number of
projects and the total capital as well.
In spite of a small investment,
service has still been the field
attracting most projects.
According to the ranking of United Nations Conference on Trade and Development, Vietnam stands in
the top 10 countries that attracted the most investment by multinational companies in the period of 2007-
2009. In a special report on Vietnam in August of this year, BCA (Bank Credit Analyst), a prestiged
independent Canadian organization judged that Vietnam is gaining the market share from China,
Thailand and India in the fields of textiles, footwear and electrical components due to low costs. BCA
also told that this would be a good time to invest in Vietnam. Price Water House Coopers – an
international auditing and consulting organization – has put Vietnam first in the top 20 emerging
countries and it has also shown that Vietnam held a great attraction to investors, especially
manufacturing industries including auxiliary ones.
Therefore, in the context of inflation and gloomy global financial market, Vietnam has still attracted
record foreign direct investment inflows. Indirect investment has also come back with 46 foreign
investment funds specializing in investing in Vietnam and mainly aimed at real estate and securities
market. The next thing to do is to improve administrative procedures; hasten the FDI disbursement and
make the real estate and securities market transparent and wholesome in order to consolidate the
confidence of investors.
Urban Infrastructure Development Investment Corporation – UDIC will choose the project of TTAS -
Architecture Construction Consulting JSC for the complex of 29-storey apartment building and service
N04 on Tran Duy Hung Street in Dong Nam urban area, Hanoi with a site of 10,279 m2.
The trading center will be on from the 1st to the 6th storey. The apartments will be on from the 7th to the
29th storey. It is considered to be an architecture design that flexibly meets the distribution of using
functions and creates a maximum approach to the nature.
Seafood JSC No. 4 signed a brokerage contract with Sacomreal Service (Sacoreal-S) to sell Orient
Apartment.
The project of Orient Apartment is located at 331 Ben Van Don Street, Ward 1, District 4, HCMC on a
site of nearly 3,300 m2, including two blocks of 17 storeys with 180 apartments scheduled to be put into
use in late 2009. This contract is executed within 6 months with the number of 100 apartments.
BMC - Construction Materials & Commercial Erection Company has shown that the project of high-class
apartments BMC - Hung Long ensures its the construction process and will open in late 2009. The
company has built the sample apartments since the beginning of the June, 2008 at the project and at
Public Benefit Service Company located on Dao Tri Street, Phu Thuan Ward, District 7, HCMC.
The project of BMC - Hung Long high-class apartments is located at 60/7 Huynh Tan Phat Street,
District 7, including apartments, villas, townhouses, playground… With the selling prices of 18 - 22
million VND/m2, the whole project has been sold out before Lunar New Year 2008.
Dat Xanh Real Estate Construction Service JSC opened the Branch Office My Phuoc 3 at Thoi Hoa
th
commune, Ben Cat suburban district, Binh Duong on September 15 , 2008, which helps make its real
estate investment and business at My Phuoc more convenient and quicker.
In the opening week, Dat Xanh has a promotion program for the clients who buy My Phuoc ground
th th
bases from Sept. 15 to Sept. 20 , 2008 in the whole transaction system. Concurrently, the company
also announced the decision on the recognition of Dat Xanh as a member in the network of real estate
transaction centers of Housing Management Bureau.
Hai Dang Investment JSC has started the competition of architectural design for the project of Lighhouse
complex in Nha Trang with a prize worth 25,000 USD.
Lighthouse Complex has an area of 6,500 m2 and a height of 36 storeys. The project includes high-class
trading service center, 4-star hotel, apartments and offices for lease. The total investment is nearly 100
million USD. It is expected to be completed and put into use in 2012.
VietRees – Vietnam Real Estate
Websites of real estate companies in Vietnam
Property developers
Ho Chi Minh
Company 585 - www.585.com.vn
Company 584 - www.congty584.com.vn
An Phu - www.anphugroup.vn
BCCI - www.bcci.com.vn
Daewon - www.daewon.vn
Him Lam - www.himlam.com
Hoang Anh Gia Lai - www.hagl.com.vn
Linh Phong Conic - www.conic.com.vn
Nam Long - www.namlongvn.com
Phu Long - www.phu-long.com.vn
Phu Quoc Land - www.phuquocland.net
SacomReal - www.sacomreal.com
Sadeco - www.sadeco.com.vn
Resco - www.rescovn.com
Thai Thinh Capital - www.richlandhill.com.vn
Thu Duc House - www.thuduchouse.com
Phu My Hưng - www.phumyhung.com.vn
Van Phat Hưng - www.vanphathung.com.vn
Vietnam Land SSG - www.saigonpearl.com.vn
Ha Noi
FPT Land - www.fpt-land.com
C.E.O - www.ceoholdings.com.vn
Gia Tue - www.giatue.com.vn
HUD - www.hud.com.vn
HDB Viet Nam - www.hdbgroup.com.vn
Keangnam – www.eng.kne.co.kr
Nam Cuong – www.namcuong.com.vn
Song Hong Land - www.songhongland.com.vn
Vinaconex – www.vinaconex.com.vn
Vincom - www.vincom.com.vn
Viet Hung - www.ecopark.com.vn
Other cities
Becamex IDC - www.becamex.com.vn
Biconsi - www.biconsi.com.vn
Tuan Chau - www.tuanchau-halong.com.vn
GNSVINA - www.cozyvill.com
Company 579 - www.cecico579.com.vn
Duc Manh - www.ducmanhco.com
Sponsor:
www.VietRees.com
Brokerage
Ho Chi Minh
An Gia - www.angia.com.vn
ACBR - www.acbr.com.vn
Dat Xanh - www.datxanh.com.vn
Dia Loi - www.nhadatdialoi.com.vn
Dat Cat - www.datcat.com.vn
FICO – www.ficohome.com.vn
Kim Son - www.kimson.com.vn
Phuc Duc - www.phucduc.com
Hung Phu - www.hungphunhadat.com
Hung Thinh 2 - www.diaochungthinh.com.vn
Hoang Quan - www.hoangquan.com.vn
Intresco - www.intresco.com.vn
Loc Dien – www.nhadatld.com
Nova - www.novahomes.com.vn
Phat Hung - www.phathung.com.vn
Tan Dien - www.tandien.com.vn
Van Hung Phu - www.vanhungphu.com
Ha Noi
Cland - www.cland.com.vn
Dong Do - www.dongdobds.com
Phu Thai Group - www.phuthaigroup.com
Petrowaco - www.petrowaco.vn
Petrolimex – www.pland.com.vn
Research
CBRE - www.cbrevietnam.com
Savills Viet Nam - www.savills.com.vn
VietRees - www.VietRees.com
Consulting
CBRE - www.cbrevietnam.com
Dong Duong - www.indochina-consulting.com
Eden Real - www.edenreal.com
Indochina Land - www.indochinacapital.com
Long Gia Khang - www.longgiakhang.com
Savills Viet Nam - www.savills.com.vn
Vina Capital - www.vinacapital.com
VietRees - www.VietRees.com
Viet Nam Real Estate Newsletter A49 Page 4
Evaluation
AREV - www.arev.com.vn
Hoang Quan - www.thamdinhgia.com
Vietland - www.thamdinhgia.com.vn
VVFC - www.valuation.vn
Construction
Ho Chi Minh
CIC8 - www.cic8.com
Coteccons - www.coteccons.com.vn
Cosaco - www.cosaco.com.vn
Hoa Binh - www.hoabinhcorporation.com
Hai Thanh - www.haithanh.com.vn
Toan Thinh Phat - www.toanthinhphat.com.vn
Ha Noi
Constrexim - www.constrexim.com.vn
Cavico - www.cavicovn.com
HANCIC - www.hancic.com.vn
HUD - www.hud.com.vn
Incomex - www.incomex.vn
Architect and Interior Decoration
Ho Chi Minh
A2 Visualization - www.a2viz.com.vn
Cat Moc - www.catmoc.com.vn
Le Do - www.model&more.com
Nha Vui - www.nhavui.com
Nha Viet - www.nhavietdecor.com
Nha Dep - www.nhadep.com.vn
Pho Xinh - www.phoxinh.com.vn
Ha Noi
ACT - www.act.com.vn
ADKientruc - www.adkientruc.com
Ashui – www.ashui.com
Kien Truc Ha No - www.kientruchn.com
 VietRees – Vietnam Real Estate
REAL ESTATE PROJECT AND PRICES
Hong Thinh high-end villa area
VietRees – 15 Sep, 2008
Two more buildings at Saigon
Centre
Thanh Nien – 16 Sep, 2008
Tan Binh traditional market and
trade center to be constructed
VietRees – 17 Sep, 2008
Planning the project of Tan Xuan
- Hoc Mon wholesale market
VietRees – 19 Sep, 2008
High-grade apartments in HCMC,
the percentage increases and
decreases in apartment prices
over the previous period (month)
Prices are forecasted to see a slight increase of
2% in August, 2008 as compared with July, 2008
VietRees – Aug, 2008
Announced prominent real estate developments during the last 2 weeks*
Ho Chi Minh City
Other Areas
Approved prominent real estate developments in HCM City*
Housing, apartment, residential area
Office, commercial
* Note: RA=Residential Area, AP=Apartment Building, HA=Housing Area, RuA=Reurban Area, TA=Tourism Area, IA=Investment Area, UA=Urban Area, ReA=Resettlement area
Websites of properties in Vietnam
Ho Chi Minh
Blooming Park - www.bloomingpark.com
Saigon Paragon - www.saigonparagon.com
Dragon City - www.dragonland.com.vn
Preche - www.preche.com
SaigonPearl - www.saigonpearl.com.vn
V-Star - www.v-star.com.vn
Time Square - www.timessquare.com.vn
The Everrich - www.theeverrich.com
Tan Da Court - www.tandacourt.com
Lancaster - www.lancaster.com.vn
The Vista - www.thevista.com.vn
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A49 Page 5
Hong Thinh Investment Construction - Commerce Co., Ltd. is completing the preparation procedures for
commencing the construction of Hong Thinh villa area on a site of 4.3 hectares at Phu Xuan commune,
Nha Be suburban district, HCMC.
The project includes one national-standard school and 60 single villas or duplex villas that each features
a private cark park basement and necessary conveniences.
Keppel Land Watco I Co. Ltd has shown that Saigon Centre will be developed into a financial centre with
two buildings of 66 storeys and 88 storeys that include high-class retail commercial areas, grade-A
offices, 5-star hotels, observation towers and museums.
People’s Committee of HCM City has licensed Urban Transport Service Co. of Tan Binh District to invest
in the construction of Tan Binh trade and service center at the land plot 172-174M on Ly Thuong Kiet
Street, Ward 8, Tan Binh District.
Meanwhile, the Committee has also guided Department of Architecture-Planning and the People’s
Committee of Tan Binh district to finish the technology infrastructure in order to serve the construction
investment project of Tan Binh trade-service center and Tan Binh traditional market.
The construction investment project of Tan Xuan – Hoc Mon wholesale market invested by HOTRACO
has been licensed by HCM city People’s Committee to adjust the planning of service areas and public
service areas.
Accordingly, 18-storey service area is built on a site of 1.2 hectares. Four bottom storeys include motels,
eating & drinking stores, post offices, banks, transaction offices and etc. The remaining storeys include
mainly apartments used for the resettlement.
Week 2, September 2008 Week 3, September 2008
Thanh Loc Apartment Building (Dist.12), Truong Tho Hong Thinh Villa Area (Nha Be), Saigon Center Financial
Apartment Building (Thu Duc) Center (Dist.1), Tan Binh Trade Center, Tan Xuan Service
Area (Hoc Mon)
Tourism zone & Vina Universal film studio (Quang Ngai), Mekong City new urban area (Vinh Long), JW Marriott
Son Tinh tourism zone (Quang Ngai), Vimeco Complex Danang Resort (Da Nang)
(Ha Noi), Allzeboo resort (Phan Thiet)
August September
Truong Thanh Ward – VietNam House HA (Dist.9), 7/4A Phu Thuan Ward HA (Dist.7), Tan Kien Town ReA (Binh
Kha Van Can ReA (Thu Duc), 13E Phong Phu RA (Binh Chanh), Thanh My Loi B RA (Dist.2), Phuoc Thien RA
Chanh) (Dist.9), 99 Ben Binh Dong AP (Dist.8), Nhon Duc –Phuoc
Kien RA (Nha Be)
Hiep Phu Ward – Hiep Phu Gia Co. office building, 34-35 Tan Thanh Ward complex building (Tan Phu), C6/27 Pham
Ben Van Don complex (Dist.4), 89A Nguyen Dinh Chieu Hung commercial center (Binh Chanh)
office building (Dist.3)
Ha Noi Other cities
Viglacera Tower - www.viglaceraland.vn Cozyvill - www.cozyvill.com
My Dinh – Me Tri RA - www.sudicosd.com Flamingo Dai Lai - www.flamingodailai.com
Bac An Khanh RA - www.vinaconex.com.vn Van Phu township - www.dothivanphu.com
Ha Noi Plaza Hotel - www.charmvit.co.kr Dam Vac Golf - www.damvacgolf.com
Phap Van – Tu Hiep RA - www.hud.com.vn Sanctuary - http://sanctuary.com.vn
Ho Tram Strip - www.hotramstrip.com
Sai Gon Sunbay - www.ctc-corp.vn
Other cities Eden Lagi Resort - www.edenreal.com
Furama Resort - www.furamavietnam.com Van Quan – Yen Phuc township - www.hud.com.vn
Sai Gon – Mui Ne Resort - www.saigonmuineresort.com Quoc Te Do Son - www.vietlandgroup.com
Sunspa ResortVietnam - www.sunsparesortvietnam.com
 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A49 Page 6

Property Retail Price

Updated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can be
original prices or transfer prices at current or at one week prior from the date this newsletter is issued.

Typical apartments in HCM city Other apartments and land lots

Area Price (million
District
(m2) VND/m2)
+/-
Apartment building – HCMC
The LandCaster 1 120 84
Binh Minh 2 108 18
Cantavil 2 98 33 +
Van Do 4 50 24 +
Estella, Dist.2 V- star, Dist.7 Sky Garden 3, Dist.7 Hung Vuong Parkson 5 131 30 -
* 148m2 – 2,150 USD/m2 * 97.6m2 – 22 million VND/m2 * 89m2 – 22.5 million VND/m2
Hoang Anh 2 7 118 16
* 98m2 – 30.6 million VND/m2
E-Home 9 74 8.1
Le Thanh BTA 68 11
Dat Phuong Nam BTH 104 27
New SaiGon NB 121.4 22
Phu My Thuan NB 93.5 9.5 +
Botanic PN 109.5 32.9 +
Sunshine TD 54.5 9.8
Development land lots – HCMC
Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11
Thanh My Loi – P.Nhuan 2 140.5 30 +
* 115m2 – 29 million VND/m2 * 82m2 – 23 million VND/m2 * 119m2 – 2,100 USD/m2
* 135m2 – 31million VND/m2 * 151m2 – 1,850 USD/m2 The Ky 21 2 100 23 +
* 117m2 – 25 million VND/m2
Direct contact with the investor1 Him Lam – Kenh Te 7 100 36 +
Phu My - Van Phat Hung 7 132 22
Phu Loi – Hai Thanh 8 90 11.5
Gia Hoa 9 100 11 +
Khang Dien 9 120 10 -
Dai Phuc BC 100 35
Vinh Loc B BC 114 8
Apartment building - Ha Noi
Doi Nhan BD 106 22 +
Preche, Dist.2 Panorama, Dist.7 Saigon Pearl, B.Thanh Keangnam BD 107 42.5
* 147m2 – 2,222 USD/m2 * 144m2 – 42.7 million VND/m2 * 90m2 – 51 million VND/m2 Chelsea Park CG 100 27.5
* 154.5m2 – 2,360 USD/m2 * 151m2 – 48.3 million VND/m2 * 140m2 – 52.9 million VND/m2 Lang Ha DD 172 27.5 -
Linh Dam HM 78 14.5
Phap Van HM 74 12.2
CT2 Van Khe TX 118 8.8 -
Development land lots – Other provinces
My Phuoc 3 BD 300 1.8 +
Rach Bap BD 100 0.95
Khang Linh BR-VT 224.8 6.2 -

BMC Hung Long, Dist.7 The Manor, B.Thanh Wind Hill BR-VT 180 4.3
The Vista, Dist.2
* 101m2 – 1,700 USD/m2 * 79.3m2 – 19.5 million * 80m2 – 1,800 USD/m2 HUD DNI 144 4.7 +
* 152m2 – 2,000 USD/m2 VND/m2 * 101m2 – 2,550 USD/m2 Thanh Hung DNI 150 3.5
* 137 m2 – 21 million VND/m2 Long Kim 2 LA 88 4.5 +

1
Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 740 6688, Fax: (84.8) 740 6949

Danang: 225 Huyen Tran Cong Chua - T: (84) 511 836 216 * HCMC: 390 Nguyen Cong Tru, D.1 - T: 8 821 7509 * Hanoi: No.6-1D Trung Yen New Town, Caugiay - T: 4 783 1598

Sponsor:
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A49 Page 7

PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS

Social wefare houses for worker
VietRees
* Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1,
Linh Trung Ward, Thu Duc Dist, HCMC. The is .
* Hung Vuong JSC has just put a 5-storey apartment building into use for cadres and workers. The
company continues to petition Tien Giang Provincial People’s Committee to grant a 5.000m2 land area to
construct more apartment buildings for workers with an investment of 100 billions VND.
* Saigon Paper JSC has put an apartment building into use for workers at My Xuan Commune, Tan
Thanh suburban district, Ba Ria - Vung Tau province. The stage 2 of the apartment building is about to
be implemented with a scale of 8 storeys.
th
* Morning of August 28 , 2008, the Ministry of Construction has signed a memorandom for the
cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine.
* Ha Noi Construction Investment JSC (Hancic) has finished 4/10 units of the 5-storey house which
belongs to the housing project for workers at Kim Chung Commune (Dong Anh).
* Construction and Import-Export JSC (Vinaconex) has transferred and put into use 4 blocks of houses
among the total 16 blocks of the housing project for the workers at Thang Long industrial zone.

Real estate for the low income
VietRees
* Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment
Building in District 12 with 1,000 apartments.
* Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & Tien
Phuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2.
* HCM City People’s Committee will advance 50.5 billion to carry out the project of Vinh Loc B, Binh
Chanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks.
* Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District.
* HCM City Cooperative Alliance has developed its construction investment project of housing area at Le
Minh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares.
* 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve
resettlement demand in the district.
* Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500-700 millions VND/unit.
* People‘s Committee of HCMC has approved the project of the resettlement area on a site of 55.24
hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi.
* House management of Dist.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, Thu
Duc district.
* In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement area
project, Binh Tan District for the civil servants at Binh Tan District.
* People’s Committee of Binh Chanh has just cooperated with Hung Vuong university Investment &
Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district.
* People’s Committee of HCM City has just licensed Cho Lon Real Estate JSC to invest in the
construction of the apartment buiding at No. 99 Ben Binh Dong, ward 11, district 8 in order to make the
house reserve at the social welfare housing program.
* People’s Committee of HCM City has promulgated the decision about reclaiming the land areas at
Phuoc Kien, Nhon Duc and Phuoc Loc communes, Nha Be suburban district for the construction of the
resettlement area in order to serve the project of Nhon Duc - Phuoc Kien new urban area.
* The HCM City Union of Housing Co-operatives has prepared to commence the construction of Thanh
Loc apartment building with 238 apartments on a site of 6.600 m2 in District 12. The Union intends to
construct another apartment building with over 200 apartments at Truong Tho ward, Thu Duc district.
* HCMC People’s Committee has ratified the planning of Binh Khanh residential area (Dist.2) which is
built on a site of 384,019 m2 to serve the resettlement of the locals in Thu Thiem new urban area.

Dwellings for overseas Vietnamese The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas
Vietnamese buying houses, mainly in HCMC.
and foreigners
Those who brought houses are those who come back to the country for their long term and direct
VietRees
investment, scientists, culture researchers invited to come back to the country to become experts and
repatriating overseas Vietnamese. To buy houses, beside documents verifying priority subjects, the buyer
must present their passport (issued in Vietnam). In the case that house buyers bring foreign passports,
they must have certificates of Vietnamese nationality or documents confirming their losing Vietnamese
nationality, or certificate of citizenship registration.

Sponsor:
 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A49 Page 8

REAL ESTATE LEGISLATION

The Ministry of Construction has promulgated Circular 16/2008/TT-BXD to provide guidelines on

Circular on bearing capacity inspection, certification of the conditions that ensure the allowable bearing capacity and certification of
and construction quality suitability in terms of the quality of construction works.
VietRees – 15 Sep, 2008 According to the Circular, the public works that gather the people from the grade III and upwards
(including movie theaters, cinemas, stations, hospitals, schools, apartment buildings and etc) are bound
to be confirmed to ensure bearing capacity before coming into use.
As for the new construction works, Certification bodies are in charge of drawning up the drafts for
inspecting and assessing the suitability of the quality in accordance with the sphere and the content of
certification for the agreement of the investors and the owners. The inspections can be carried out when
starting the construction of certified work items. After every inspection, Certification bodies must
promptly send the documents informing the inspection results to the investors and the parties involved.
As for the new construction works, Certification bodies are in charge of drawning up the drafts for
inspecting and assessing the suitability of the quality in accordance with the sphere and the content of
certification for the agreement of the investors and the owners. The inspection content may include
inspecting the quality of designs and construction works through the documents that help complete the
works. If neccessary, the inspection and assessment of the quality of the projects can be carried out
through experiments and surveys.
To ensure the independence and the objectivity, Certification bodies should not take part in inspection,
design, construction and supply of construction materials and equipments, management of projects and
supervision of the construction for the certified projects and work items. Meanwhile, they must be an
independent organization.
This circular replaces the Circular 11/2005/TT-BXD and applies to the organizations and individuals
involved in the certification of conditions that ensure bearing capacity and certification of suitability in
terms of the quality of construction works located in Vietnam. This circular takes effect after 15 days
since the date of its publication on the Official Gazette.

Foreigners with at least 3-month
stay can rent houses
Kinh Te Do Thi – 16 Sep, 2008
The latest official document promulgated by the Ministry of Construction provides the guidelines for
foreigners on transferring the right of apartment leasing. Accordingly, to get permission for house lease
in Vietnam, foreign organizations and individuals have to present the residence permits valid for at least
3 months and their passports when carrying out the procedures for leasing houses. Those who have not
yet been allowed to enter Vietnam are ineligible to rent houses in Vietnam.
The cases of signing lease contracts with foreign organizations that have not yet been allowed to enter
Vietnam are considered to violate the law. In these cases, they are not also allowed to authorize
domestic companies to sell the right of apartment leasing.

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 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A49 Page 9

REAL ESTATE MARKET FORECAST

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

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

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

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

CONSTRUCTION MATERIAL MARKET

Steel prices continue to go down Because the consumption of construction steels has been falling by over 50%, the prices of steel ingots
in the world’s market have plummeted by nearly 200 USD/ton as compared with the last month. As a
Edited by VietRees result, the steel prices in the domestic market have ranged only from 16.5 to 17 million VND/ton.
In the past months, the steel prices in HCMC market were usually 1.5 – 2 million VND/ton higher than
the selling prices at factories. But now, the difference in price is about 500,000 VND/ton. Rolled steel ø6,
ø8 is only 17,500 VND/kg, rising by 1,300 VND/kg as compared with early September. The price of bar
steel ø10 is 125,000 VND/bar (falling by 15,000 VND/bar), ø12 is 179,000 VND/bar (falling by 13,000
VND/bar), ø14 is 242,000 VND/bar (falling by 18,000 VND/bar), ø16 is 316,000 VND/bar (falling by
25,000 VND/bar).
Although the steel supply still continues to increase, most producers of construction steel are facing the
slow consumption of the output. However, this situation is only temporary. The downturn of the steel
market at home and abroad is a good opportunity for enterprises with financial potential to keep hoarding
steel in order to serve production demands when the output market becomes more evenful.

STOCK MARKET

Stock indexes soar on 2 bourses The stock market on weekend days has witnessed
evenful transaction sessions with a remarkable
Edited by VietRees recovery of VN-Index after a series of gloomy days.
Chart source: Vietstock Right at the first order-matching phase, blue-chip
Up to date: 19 Sep,2008
stocks have come back to the considerable amount of
buying orders at ceiling prices. Vn-Index has added
14.86 points (or 3.54%) to close at 434.14 point-level.
The trading volume have rocketed with over 12.2
million units worth more than 428 billion VND. The
consecutive order-matching phases have continued to
happen evenfully, Vn-Index has shot up to 19.79 points
with over 22.48 units.
Vn-Index has closed at 439.06 points with an increase of 19.78 points(or 4.72%) as compared with the
previous session. Ending the session, there are 25.527 million units traded successfully with a total
value of approximatly 856.7 billion VND.
On Hanoi bourse, HaSTC-Index has added 9.66 points (or 7.1%) to close at 145,74 point-level. The total
trading volume has gained 11.6 units worth 325.2 billion VND.

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