Real Estate News October 2016

Here you will find a few headlines from the Vietnamese market:

Vietnam starts building northern coastal region's tallest tower
A 45-storey tower in the northern city of Hai Phong, which will be the tallest of its kind in Vietnam’s northern coastal region once completed. The 148 meter high building is developed by Vingroup, within the company’s Vinhomes Riva City Hai Phong urban area. The tower, fully covered with environmentally-friendly glass, is a complex of a modern trade-service center and the 300-room Vinpearl Hotel City, the first-ever five-star hotel in the port city, spanning a total area of 30,000 square meters. The project is slated for completion by the end of next year and is scheduled for commission in late 2018.

HCMC spends nearly VND 900 billion building parallel road with HCMC Long Thanh - Dau Giay expressway 
The HCM City People’s Committee has approved the feasibility study of a road that runs parallel to the HCM City-Long Thành-Dầu Giây Expressway. According to the feasibility study submitted to the committee by a private company, the parallel road will start at Mai Chí Thọ Street and run through the Nam Rạch Chiếc Residential Area to Ring Road No. 2 at the An Phú Interchange. The construction of the road is expected to start next year under the Build-Transfer contract and is estimated to cost VND900 billion (US$40 million).

New signal for real estate market: The number of newly registered real estate companies is nearly doubled to 2.5 times the amount of capital
According to data from the General Statistics Office, in the first 9 months, the number of newly registered enterprises is above 81,000. In particular, the number of new companies in real estate sector reached impressive figures and outperformed other sectors. Total registered capital was VND629.1 billion which was 19.2% higher than number of enterprises and 49.5% higher than the registered capital over the same period in 2015. The average registered capital of an enterprise also increased by 25.4% (reached VND7.7 billion).

The State Bank (SB) requires commercial banks explain clearly about the 30,000 billion package's interest rate 
SB suggested banks to have effective communication activities, explain and notify particularly about the policy, interest rate to customers so that they could better understand and coordinate with banks in order to shorten the implementing progress of the program. Specifically, customers are individuals that buy, rent social housing; commercial housing, new construction or repair of houses will have the disbursement deadline on December 31st 2016 and applied favorable interest rates of the program. Disbursements after this day will come from commercial banks' source and apply their interest rate.
By the end of September, the 30,000 billion credit package for housing has been disbursed 28,345 billion, which account for more than 86% of the total amount of the package.

VinMart+ stores to reach 1,000 by end of 2016 
The group currently runs 650 shops across the nation. Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade said the convenience stores help boost Vietnam’s retail market. The Ministry has offered numerous incentives to support convenience stores to enhance domestic consumption. The group set a retail development strategy involving the construction purchase of 100 VinMart supermarkets and 1,000 VinMart+ convenience stores by 2017. The strategy aims to provide perfect service and quality goods for consumers.

Ministry Start dismantling Tax Department from 12th October 
Tax Department is an architectural icon of Saigon for 130 years and used to be the oldest commercial center in HCMC. It was built in the 80s of 19th century and became the familiar image of the city residents. However, from 12th October, the construction company has started railing Tax Department to prepare for constructing a new building at the same place of this location. This new building is called Satra Tax Plaza with 40 floors high. It will be launch in Quarter 1/2017 and is scheduled for completion in 2020 at the same time when Metro Line 1 will be put in use.

Ho Chi Minh City will spend more than VND5.700 billion investing in Binh Khanh and Cat Lai Bridge 
HCMC People’s Committee has asked the government to allow building Binh Khanh, Cat Lai Bridge and new route parallel to Highway 50 in order to connect infrastructure with Long An Province. The reason of these projects comes from the flow of vehicles crossing through Cat Lai ferry increasing. Moreover, the flow of goods from the industrial park along Highway 51 and Nhon Trach urban area was transported from Hanoi Highway to the port system on Saigon River which causes more traffic jam to this highway. The construction of these bridges replacing for Binh Khanh ferry will directly link the transportation of the South of HCMC in order to develop the advantages of local areas and creating efficient transportation services.