Real Estate News December 2016

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

Applying tax on 2nd house
According to experts, if the 2nd house is taxed, it would reduce speculation. In fact, in some countries in the world, the taxation on the 2nd house and above has been applied. In Vietnam, if enforced, it is important to have a database of national land to ensure the correct and full, fair taxation between the rich and poor. Some comments are concerned that if the proposal is implemented, then house buyers will have other people naming their house buyings.

Hanoi: 10-month foreign investment jumps 2.6 times year on year 
Hanoi attracted 445 foreign invested projects with total registered capital of 2.8 billion USD between January and October, rising by 2.6 times in the same period in 2015. Approx. 1.2 billion USD of the registered capital was implemented during the period. Big foreign investments were poured into some industries that the capital city is strong at, noting that in the hi-tech sector, 300 million USD was committed for the building of a Samsung research and development Centre More than 22,000 new businesses with registered capital of over 203 trillion VND (about 9.1 billion USD) have been born in the city since the beginning of 2016, respectively rising by 19 percent and 42 percent from a year earlier.

Hanoi to add 5 trade centers to master plan
Five trade centers will be added to the plan for wholesale and retail networks in Hanoi by 2020 and vision to 2030 under Decision No. 6239 from the Hanoi People’s Committee. The additions are primarily located in suburban districts. Four are Grade 1 trade centers. By 2020 Vietnam targets are having 1,200-1,500 supermarkets, 180 business centers, and 157 shopping centers, with retail revenue totaling 179 billion USD. Assessing the prosperity of Vietnam’s retail market, market researchers and experts believe it has great prospects and will record high growth in the years to come. Generally supermarkets and shopping centers are considered to have the most promising outlook and are a strength to the foreign retailers.

7-Eleven recruiting in Vietnam 
Japan’s 7-Eleven convenience store chain is quietly recruiting three positions on, an online recruitment website in Vietnam, though it is still to announce the opening of its first store in the country. The Seven System Vietnam JSC (7-Eleven) is recruiting for three positions, the website said: a quality assurance manager, a fresh food associate, and a marketing associate. Applicants must have three years of experience and two years of experience for the first two positions while no experience is necessary for the third position, and will work in Ho Chi Minh City. 7-Eleven expects to open its first store in Vietnam by Spring 2017. These recruitment efforts are the first step in those plans coming into reality.

Vietnam: Realty firm Novaland sells stakes worth $120m to 18 investors  
Ho Chi Minh City-based property developer Novaland has successfully sold part of stakes to a consortium of investors for 120 million USD, according to a report on Bloomberg. This was part of Novaland’s fundraising schedule, ahead of the company’s IPO plan, Novaland had earlier announced. “Novaland will conduct private placements to prominent financial investors in order to increase the charter capital to VND6 trillion,” the company posted on its website.

A VND5,300 billion-project is set to start on the golden land in District 1, revealing developer Van Thinh Phat 
On Dec 2nd, Saigon Diamond Corp will hold a groundbreaking ceremony of the SJC Tower project, which is located on a quadrilateral bounded by 4 routes of Le Loi – Nam Ky Khoi Nghia – Le Thanh Ton – Nguyen Trung Truc, Ben Thanh Ward, District 1. Notably, this project is related to Van Thinh Phat Group and other related firms. Accordingly, on the website of Vietnam Infrastructure and Property Development Group Corporation (VIPD) also disclosures information as one of the first-class project’s developers in the centre of this city.

HCMC seeks investors for Metro project 
Ho Chi Minh City is seeking 1.9 billion USD for the second phase of metro line No 5, which extends from the new Can Giuoc Bus Station in District 8 to the Bay Hien intersection in Tan Binh District. Le Nguyen Minh Quang, director of HCM City Management Authority for Urban Railways (MAUR), said the city would seek investment from many sources, including ODA loans and loans through public-private partnerships. Total investment for the second phase is more than 2.4 billion USD, including construction cost and site clearance.