Real Estate News November 2016

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

Hanoi is going to have eco & golf projects in Thuong Tin District
According to general scheme of Hanoi to 2030 and vision to 2050, Thuong Tin district is allowed to create a project of eco & golf, resort for SAPA NHP Vietnam JSC. The total area is 62.6 ha including commercial facilities, offices, villas, green zone and golf area.

Hanoi invests over VND2,000 billion to expand Tam Trinh Street in twice 
The total budget for this project is 2,066.79 bil VND with a length of 3,577.7 meters with the starting point in Minh Khai road, the end in the intersection with Ring Road no. 3. Total recalled land for this project is 111,956 sqm in Mai Dong, Hoang Van Thu, Yen So ward of Hoang Mai district. When this road is available, the pressure on the traffic flow in southern part of capital would be reduced, which enhances the development of economic and social issues.

Stability of exchange rate is beneficial for economic development 
The foreign exchange market is the abundant liquidity of foreign currency. Foreign reserves are reported to be more than $40 billion which is the highest number this year. The exchange rate of VND/USD for one year forward can break most forecasts when it has continued remaining stable over 10 months. The new exchange rate regime is really effective and reduces the mentality of hoarding from people and the banks. The exchange rate is not constrained for holding, but it is operated “freely” along with the market instead.

Removing barriers to M&A  
The process of withdrawing state capital to equitize (partially privatize) state-owned enterprises (SOEs) in parallel with other positive signals of the economy will boost M&A deals in the coming time. However, it is necessary to resolve existing difficulties to ensure the effectiveness of M&A deals. Real estate has been among sectors seeing many successful M&A deals in recent times. In the first quarter of 2016, the Novaland Group acquired projects totaling about 30ha of land in the Nam Rach Chiec residential area, Ho Chi Minh City, from VinaCapital. In another deal, Singapore's Keppel Land Limited acquired 40 percent of stock at the Empire City Company Limited by pouring US$93.9 million in the latter's joint venture partners, including Gaw Capital Partners, Tien Phuoc Real Estate Joint Stock Company, and Tran Thai Real Estate Joint Stock Company.

Sunwah Group announces a new $100 million investment in Vietnam
Sunwah Group announces a new $100 million investment in Vietnam. The new investment is organized as an investment company called Sunwah Vietnam Investment Company (SVIC), a subsidiary of Sunwah Group. Mr. Louis Nguyen, CEO of Sunwah Kingsway Vietnam (SKV) and Saigon Asset Management (SAM), has been assigned as the Investment Advisor.

Vietnam plans new law for venture capital investments 
Vietnam plans to implement a new law that will govern the establishment of domestic venture capital funds, and help funnel investments into startups in the country, that has become an emerging markets standout with steady growth. According to the Communist party’s draft socioeconomic plan, Vietnam will target 7 per cent growth annually until 2020. The draft law on support for small and medium enterprises (SME), which is expected to be passed during the country’s third parliamentary session this year, has a dedicated section for startup companies, which it calls “innovative businesses”.

Extending Ben Thanh - Suoi Tien Metro to Bien Hoa, Di An, Binh Duong     
The Management Authority for Urban Railways (MAUR) has proposed City’s People’s Committee to suggest People’s Committees of Dong Nai and Binh Duong provinces to coordinate in extending the urban railway Ben Thanh – Suoi Tien
(Metro line 1) to the 2 areas above. According to MAUR, Japan International Cooperation Agency (JICA) in Vietnam also announced that they cannot commit to further support long term investment.