The global real estate market fluctuates in a complicated way, the volume of real estate transactions worldwide is estimated to reduce 15% in 2016 compared to 2015.

Vietnam is one of the most attractive destinations for retailers in Southeast Asia due to the booming economy. Demand for office will increase sharply as many foreign companies will come and set up offices in Vietnam in 2016.

Being an export-oriented economy, with export accounting significantly for 80% of nominal GDP, Vietnam is attracting a large and increasing amount of foreign investment. With the rising demand for land and industrial plants, this segment will continue to be an attractive investment channel. Statistics show that only 500 out of 90,000 foreigners are homeowners, therefore the demand in the rental apartments segment is relatively high.

The GDP growth over years, policies to attract investment, along with tourists are driving forces for the hotel market of Vietnam. The number of 5-star hotel still accounts for a large portion in the market, despite the increasing supply from 3-star hotels.

Being the most clearly affected segment from the real estate cycle, luxury apartments recorded the return of a series of delayed and newly invested projects. During the period from 2010 to 2014, after a long time of quiet, the value of land, villas, townhouses continuously decreased over the years. In 2015, along with the recovery of the real estate sector in general, the segment of apartments and townhouses also showed signs of growth with a series of new projects and existing projects which were restarted and offered on the market.

Vietnam is regarded as an attractive market compared to other countries in the ASEAN, as the economy and real estate market are being improved. Therefore, many foreign investors will continue to seek opportunities for cooperation and investment in productive assets in major cities of Vietnam.

Typical businesses having the highest real estate revenue in 2015 showed the orientation and clear division according to each specific segment, the competitive advantages as well as supportive policies of the government.

Besides, previously, if Vietnam’s retail market was primary with only three big brands including Metro, Big C and Saigon Co-op, the until now many well-known brands have been formed and developed in industry including domestic and foreign investors.

  Abbreviation 3
  Executive Summary 4
1. Business environment 7
1.1 Macroeconomic Situation 7
 

Figure of GDP, 2010 – H1/2016

Table of CPI by categories of commodities in the first 6 months of 2016

Figure of Average interbank interest rates, 2010 – 2015

Figure of Import – Export by quarter, Q1/2014 – Q2/2016

 
1.2 Legal Barriers 10
1.3 Impacts of Trade Agreements 16
  The integration process of Vietnam since 1995  
2. Global Real Estate Market 19
2.1 Real estate markets in some countries 19
  Figure of House price movements in the US, 5/2012 – 5/2016  
2.2 Real estate markets in some regional countries 25
  Figure of House price/Income in some countries, 2015  
3. Vietnam Real Estate Market 28
3.1 Definition and Features 28
3.2 Periods of Fluctuation 33
  Figure of Real estate cycles in Vietnam  
3.3 Market Movements 37
3.3.1 Real Estates for Lease 38
 

Figure of Total supply and vacancy rates by category as of Q2/2016e in Hanoi

Table of Typical deploying projects, Q2/2016 in Hanoi

Figure of Retal supply structure by region, Q2/2016 in Hanoi

Figure of Vacancy rates and rents, Q2/2016 in Hanoi

Figure of Commercial centre supply, 2010 – Q2/2016e in Hanoi

Figure of Rents and vacancy rates of commercial centres, 2010 – Q2/2016e in Hanoi

Figure of Total supply as of Q2/2016 in Ho Chi Minh City

Figure of Retail supply structure by region, Q2/2016 in Ho Chi Minh City

Figure of Rents movements, Q1 – Q2/2016 in Ho Chi Minh City

Table of Typical deploying projects, Q2/2016 in Ho Chi Minh City

Figure of Commercial centre supply, 2007 – Q2/2016e in Ho Chi Minh City

Figure of Rents and vacancy rates of commercial centres 2007 – Q1/2016e in Ho Chi Minh City

Figure of New supply and vacancy rates of class A offices, 2010 – 2015 in Hanoi

Figure of Total supply by region, Q2/2016 in Hanoi

Figure of Office rents, 2010 – Q2/2016 in Hanoi

Figure of Average price by region, Q2/2016 in Hanoi

Table of Typical deploying plans, Q2/2016 in Hanoi

Figure of Supply and vacancy rates of offices, 2010 – Q2/2015 in Ho Chi Minh City

Figure of Total supply and rents by classes, Q2/2016 in Ho Chi Minh City

Figure of Office rents, Q1/2015 – Q2/2016 in Ho Chi Minh City

Table of Plans deployed in Q1/2016 in Ho Chi Minh City

Figure of Total supply and vacancy rates by region, Q2/2016 in Hanoi

Figure of Rents by region, Q1/2016 in Hanoi

Table of Noticeable projects in the coming time in Hanoi

Figure of Total supply and vacancy rates, Q2/2016 in Ho Chi Minh City

Figure of Rents by region, Q2/2016 in Ho Chi Minh City

Table of Noticeable projects in the coming time in Ho Chi Minh City

Figure of Vacancy rates (%) in Ho Chi Minh City

Figure of Rents for available factories, 2011 – Q2/2016 in Ho Chi Minh City

Figure of Land rents by region, 2011 – Q2/2016 in Ho Chi Minh City

Figure of Supply by classes, 2005 – Q1/2016 in Hanoi

Figure of Price movements of apartments by classes, Q1/2011 – Q2/2016 in Hanoi

Figure of Rents and occupancy, Q1/2012 – Q1/2016 in Hanoi

Table of Typical projects under construction in Hanoi

Figure of Total supply of apartment for rent, Q3/2014 – Q2/2016 in Ho Chi Minh City

Table of Deploying projects in Q2/2016 in Ho Chi Minh City

Figure of Net absorption and rents for apartments, Q1/2011 – Q1/2016 in Ho Chi Minh City

Figure of Total hotel supply, Q1/2014 – Q2/2016 in Hanoi

Figure of Business situation, Q1/2014 – Q2/2016 in Hanoi

Figure of Hotel supply, Q1/2014 – Q2/2016 in Ho Chi Minh City

Figure of Rents and occupancies, Q1/2014 – Q2/2016 in Ho Chi Minh City

Figure of Rents and occupancies, Q2/2016 in Ho Chi Minh City

 
3.3.2 Real Estates for Sales 65
 

Figure of Supply of apartments for sales, 2008 – Q2/2016 in Hanoi

Figure of Price movements of apartments in the secondary marrket, Q1/2008 – Q1/2016 in Hanoi

Table of Projects, Q2/2016 in Hanoi

Table of Typical projects in 2017 in Hanoi

Figure of Supply and sales of premium apartments, 2010 – Q2/2016 in Ho Chi Minh City

Figure of Apartment prices in Ho Chi Minh City, Q4/2014 – Q2/2016

Figure of Prices of premium apartments, 2010 – 2015 in Ho Chi Minh City

Table of Noticeable projects in the last 6 months of the year in Ho Chi Minh City

Table of Noticeable projects in Q2/2016 in Ho Chi Minh City

Figure of Purchase structure by purposes, 6 months/2016 in Ho Chi Minh City

Figure of Lending rates of commercial banks, 6/2016 in Ho Chi Minh City

Figure of Total supply of villas and townhouses, Q1/2014 – Q2/2016 in Hanoi

Figure of Price fluctuations in the secondary market, Q1/2014 – Q2/2016 in Hanoi

Figure of Supply of villas and townhouses, Q1/2014 – Q2/2016 in Ho Chi Minh City

 
3.4 Risks and Challenges 76
3.4.1 Risks 77
3.4.2 Challenges 79
 

Table of 20 cities having the highest rates of house prices out of income per capita in the world in 2015

Figure of House prices/income in Vietnam, 2011 – 6/2016

Figure of Real estate inventory value, 2013 – Q2/2016

 
3.4.3 SWOT 81
3.5 Driving Forces 82
 

Figure of Investment for infrastructure in GDP, 1995 – 2013

Figure of Urbanization levels, 2010 – 2015

Figure of Disposable income and household spending, 2008 – 2017f

Figure of Real estate outstanding loans, 2012 – 6/2016

Figure of Structure of real estate outstanding loans, 6 months/2016

Figure of Average lending rates, 2011 – 2015

Figure of FDI by industry in the first 6 months of 2016

Figure of Population structure by classes, 2013 – 2020f

Figure of Consumer Confidence Index, Q1/2014 – Q1/2016

Figure of Number of foreign tourists, 2010 – Q2/2016

 
3.6 M&A Trend 92
  Table of M&A deals in the first 6 months of 2016  
4. Enterprise Analysis 95
 

Table of Some noticeable foreign real estate investors in vietnam

Table of Top real estate enterprises with the highest revenue in 2015

Figure of Revenue growth, 2014 -2015

Figure of Profit growth, 2014 -2015

Figure of Selling expenses, 2014 – 2015

Figure of General and administrative expenses, 2014 – 2015

Figure of Interest costs, 2014 – 2015

Figure of Total assets turnover 2015

Table of Financial Indicators

Table of Business Performance Indicators

Figure of Supermarket distribution in 3 regions of Vietnam

Figure of Retail shares in Vietnam

 
5. Appendix 119
  List of infrastructure projects in the period 2010 – 2030 120
  Financial Statements 126

– Vingroup – Jsc.

– FLC Group Jsc.

– Binh Duong Trade & Development Jsc.

– Ha Do Group Jsc.

– Kinh Bac City Dvelopment Holding Corporation

– Dat Xanh Real Estate Service & Construction Corporation

– Hoang Quan Consulting – Trading – Services Real Estate Corporation

– Nam Long Group

– Khang Dien House Trading and Investment sc.

– Sao Mai Group Corporation

– Song Da Urban & IZ Investment &Development Jsc.