Archive | June, 2010

Da Nang – Quang Ngai new highway project – development opportunities for central Vietnam

30 Jun
Vnre.blogspot.comMinistry of Traffic (MOT) has recently submitted to the Government for investment approval of the new Da Nang – Quang Ngai highway project. According to the proposal, this highway will connect the territory of Da Nang and two other provinces being Quang Nam and Quang Ngai.
Currently, the determination of land boundary for project demarcation to hand over to the local authorities of each province that the highway passing has basically completed. In details, the total area of land within for clearance is about 984ha, of which, about 73ha residential land and 451ha agricultural land.

According to the proposal that the MOT submitted to the Government, this highway passes through the territory of Da Nang and two other provinces, Quang Nam and Quang Ngai. On the map the highway route lies to the west of national road 1A and the North – South railway, starts at the juncture of national road 1A, south of Da Nang City and ends at the point of connection to national road 11 south of Quang Ngai city and has total length of 139.5 km.

The highway is divided to two paths: one that has total length of 131.49 km and the other connecting from Quang Ngai City to the east route that avoids La Ha town of 8.02 km long and is located on national road 1A.

With the total investment up to VNS 29,203 billion (equivalent to US$ 1.537 billion), the Da Nang – Quang Ngai high way project is the largest segment of highway connecting north – south of Vietnam.

MOT also proposed to the Government for Vietnam Highway Investment and Development Company (VEC) to be the developer of this project with BOO investment method (Build – Operate – Ownership) to facilitate the mobilization of resources from financial institutions in the world to ensure the project high investment capital required.

Reported by Diep Linh/ CAND

Six-star Halong Star Hotel

30 Jun

Local people believe Vietnam’s protector, the mother dragon, created Halong Bay. There are few better locations than this in South-east Asia: a Unesco World Heritage site of 1,900 limestone islands just off Vietnam’s north-east coast.

Integral to Halong Star’s master plan is maintaining and enhancing the natural beauty of the area: captivating terrain and extensive, unbroken views of the water and islands.

Halong Star is a high-end, low density development just two hours from the Vietnamese capital, Hanoi, with good road, rail and port links to China. The project will create jobs, boost the country’s economy and help to position Halong Bay as one of the world’s premier tourist destinations.

Located 200 metres above the bay, it will accommodate up to 4,000 residents and guests in three unique hotels, serviced villas, townhouses, apartments, complemented by top flight leisure and retail facilities, all with extensive, unbroken views of Halong Bay.

Halong Star will bring traditional flavor to the contemporary architecture that makes up this integrated resort, commercial, and residential development, with a world class design team on board to turn this Vietnamese vision into a reality.

The construction works on Ha Long Star Hotel was started in 2007. The participants included UAE-based Limitless Co, the US International Real Estate Investment Co and Vietnam-the US Ha Long Joint Stock Co.

The project has chartered capital of $550 million, to be built in an area of 40 hectares, including a six-star hotel and about 100 high-end villas.

For further information, please contact:

Limitless company – Member of Dubai World Group
Add: Al Khail Road, PO Box 261919 Dubai, UAE
Tel: 971.4435 8888 – Fax: 971.4435 8889.

Thu Duc House invests 890 billions VND in Centum Wealth Complex project

30 Jun
Vnre.blogspot.comThu Duc Housing Development Joint Stock Co (coded TDH) has invested 890 billion dong in construction project of Centum Wealth Complex that covers an area of 11,582 square metres in Hiep Phu Ward, Dist 9, HCM City.

This complex includes trading centres, high-class apartments, swimming pool, and sport complex with synchronous infrastructure facilities.

At present, the company was conducting procedures for establishing Bach Phu Thinh (Centum Wealth) Co Ltd with chartered capital of 178 billion dong, in which TDH contributed 90.79 billion dong and Daewon Co 87.22 billion dong.

Source: Vietstock/ Intellasia

Investors vanish from the apartment market

30 Jun
Vnre.blogspot.comVietnam’s apartment market has been oddly quiet for several months. Insiders say that in HCM City, speculators have gone to the sidelines.

A number of real estate developers are about to launch medium and low-cost apartment developments into the market. Though demand seems to be weak, the developers think their flats are exactly what people who have real demand for accommodations need.

Apartments selling slowly despite price cuts

Big real estate dealers in HCM City such as Sacomreal and Vinaland describe the apartment market as stable over the last six months, with no big price fluctuations.

In the second quarter of 2010, at least ten apartment projects went on the market in the southern metropolis. Most of the apartments bear price tags of between 12 and 15 million dong per square metre, a levels that fits the pockets of medium income earners.

In Thu Duc District alone, apartments are on offer at a number of projects: My An, Truong Tho, Sun View, Riverside 4S, Hiep Binh Chanh residential quarter and New Tower. However, though many wish to buy low and medium cost apartments, the purchasing power remains very low, according to the real estate dealers.

Further upscale, developers of a lot of medium and high class apartment developments recently have had to offer special inducements to clients, including price reductions of up to two million dong per square meter, or eight percent, at the My Duc project in Binh Thanh district. Some developers are giving buyers longer to settle their contracts.

Real estate brokers say that the developer of Everich II project has decided to cut his asking price to $1300 per square metre from $1600. The builder emphasizes that there has been no reduction in the quality of the development; instead he has reduced his profit margin to attract more buyers

Where are the speculators?

Various reasons are cited to explain the quiet housing market. Vinaland’s chairman, Tran Minh Hoang, says that in current circumstances, having to pay personal income tax is a concern for many who have been trading in flats. Moreover, they lack ready sources of capital.

Therefore, “in the real estate market now, the buyers are mainly those who really plan to live in the homes they buy. The speculators are on the sidelines. That takes a lot of liquidity and energy out of the market.”

The unsalability of apartments can also be explained by the fact that many potential customers have lost confidence in real estate developers. There have been too many lawsuits in the last year. A common complaint is that developers collect advance payments from buyers but fail to implement projects. Because “one rotten apple spoils the barrel,” insiders say, apartments have been selling very slowly.

Le Hoang Chau, Chairman of the HCM City Real Estate Association, pins the blame on high lending interest rates. Currently, banks are insisting on getting 18 to 20 percent per annum from people seeking home loans, while charging businessmen only 12.5 to 13 percent per annum.

Source: SGTT

Overseas Vietnamese can buy house in Vietnam unlimited

30 Jun
Vnre.blogspot.comPrime Minister just signed a Decree 71/2010/ND-CP details and guide the implementation of the Housing Law. This Decree takes effect from 08/08/2010 to replace Decree No. 90/2006/ND-CP dated 06/09/2006 of the Government.

Objects to be applied as organizations and individuals at home and abroad; foreigner investing in housing development in Vietnam; organization and individual owns houses, use houses and participate in housing transactions in Vietnam; the appraratus of the state at all levels of housing areas; organization or individual not belong to cases above but whose activities related to housing sector.

Many conditions

This Decree shall come into life, the Vietnamese residing abroad are facilitated more if they want to buy houses in Vietnam. The duration of home ownership of Overseas Vietnamese are stable, long-term.

Accordingly, Overseas Vietnamese have right to own home ownership in Vietnam if they have Vietnam citizenship, the original Vietnamese operate on direct investment avtivities in Vietnam under the investment law; persons have contributed to the country, scientists, culturist, who have special skills that agencies and organizations of Vietnam needs and working in Vietnam; persons have spouses who are Vietnam citizen live in the country. Or persons are Vietnam agencies issued visa and permitted to reside in Vietnam for three months, they have right to own a single house or an apartment for themself and family living in Vietnam.

These subjects can buy houses in Vietnam unlimited number and type of housing through purchase or receive donated, inherited or received on housing transfer land use rights in the project housing development of real estate company.

Will fine if violation detected

Although there are many advantages to Overseas Vietnamese who wish to buy house in Vietnam but also decree made many sanction if these objects infringe. Accordingly, if the Vietnamese residing in foreign countries have forged paperwork or other violations to own more than one house in Vietnam will not be issued a certificate home ownership with there property. If the certificate has been granted ownership, the house must be sold within 120 days from violations detected. After the time-limit property will be revoked certificates for home ownership has been granted, the house has not sold under the ownership of the State of Vietnam.

In addition content related to housing for overseas Vietnamese, Decree 71 also detailed regulations on ownership, management and use of housing, including apartments, villas in urban; housing transactions; rights own houses in Vietnam for Vietnamese settled in foreign and organizations, foreigner individual, the state management of housing.

Reported by Gia Minh/ SGTT

Cushman & Wakefield distributes Sunrise City

30 Jun
Vnre.blogspot.comCushman & Wakefield (C&W) – represents for diversified clients from companies to large corporations are ranked 500 biggest companies by Fortune announces, officially become distributor highclass products at Sunrise City of Novaland.
Sunrise City is one of the first projects of Novaland in Hochiminh City, providing around 1,800 luxury apartments class-A standards, particularly penthouses have floor wide 700m2 and up to 70.000m2 floor area for trade center, shopping services. Total investment is over 500 million dollars. At present, C&W also is distributing high-quality projects such as The Vista, Mulberrylane of CapitaLand, Cantavil Hoan Cau of Daewon Hoan Cau …

Reported by D.Pham/ NLD.

More real estate exchange

– On June 29, Binh Duong Business and Development Corporation (stock code: TDC) commissioned MyLand real estate exchange at Prime Building, No.107-109 Nguyen Dinh Chieu Street, District 3 – HCMC.

At the same day, the TDC showed land products of the Moon River village villa project belongs to Thoi Hoa ecological urban (My Phuoc 4, Ben Cat District, Binh Duong Province).

Moon River village eco-villa project has a total area of 10ha, divided into different sub-zones such as semi-houses, double villas, single villa… flexible area from 145-495m ², price only from 1.8 millions VND per m².

Reported by N.Hang/ NLD.

The Estella – Update for June 2010

30 Jun
Vnre.blogspot.comLocated within Ho Chi Minh City’s exclusive expatriate community, The Estella is just a few minutes away from all the excitement of the city. Find prestigious educational establishments close by, such as The International School and British International School. At The Estella, accessibility will never be a compromise.

-> The Estella – Shine above the rest

Cavico Signs Transport Tunnel Construction Agreement for Noi Bai – Lao Cai Highway

29 Jun
Vnre.blogspot.comCavico Corp., a leading infrastructure development company based in Vietnam, today announced that its majority owned subsidiary, Cavico Bridge and Tunnel JSC signed a transport tunnel construction agreement with Korea-based Doosan Heavy Industries & Construction Co., Ltd. for the Noi Bai – Lao Cai Highway. The expected revenue value for this new contract is $5.8 million, excluding value added VAT. In March 2010, Cavico announced the contract for a road construction contract related to this project for $2.1 million.
According to the terms of this new agreement, Cavico’s scope of work will be to construct a 530 meters long, 26 meters wide, and 8.6 meters high transport tunnel. Cavico expects to complete its portion of the project in 20 months. Doosan will supply the main construction materials such as concrete, steel and anchors, which have been valued of approximately $2 million and not included in the contract value.

Doosan Heavy Industries was awarded Package A6, a 40 kilometer-long highway section which stretches from An Thinh village to Chau Que Thuong village, Van Yen province. The total value of this project is approximately $140 million. This section of the highway will meet the requirements for speeds up to 80 kilometer per hour, with four lanes for regular traffic, two emergency lanes and a middle divider. In addition, the highway section under construction will have 18 bridges with a total length of 1,982 meters that is to be constructed, with one service station and one bus station.

The Noi Bai – Lao Cai Highway project is owned by Vietnam Expressway Corporation, which is part of the Department of Transportation. The highway will be 260 kilometers long with a required capital investment of $1.3 billion, which will be funded by a combination of preferred and normal loans from the Asian Development Bank (ADB), a multilateral finance institution that promotes economic and social progress in the Asia-Pacific region. This project is close to the northern part of country and is considered one of the nationally critical projects that is aimed on strengthening overall Vietnamese-Chinese cooperation, focused on improving the economic conditions and activities in Lao Cai and its neighboring regions.

“We are very pleased to be awarded this additional agreement for construction work on the Noi Bai – Lao Cai Highway project. The bidding process was highly competitive and we are thrilled to have won this contract,” commented Mr. Hai Thanh Tran, vice president of Cavico. “As the market leader in the field of tunnel construction in Vietnam, we are confident that our skilled team will complete this project efficiently and hope to secure additional contracts associated with this major highway project.”

About Cavico Corp.

Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam. The company employs more than 3,500 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia.

Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the Company’s primary competitive advantages is its ability to nurture a project “from concept through completion” with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico’s project partners include top multi-national corporations and government organizations. The Company employs more than 3,500 full-time, part-time, and seasonal workers. For more information, visit Information on the Company’s Web site or any other Web site does not constitute a portion of this release.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, the Company’s ability to complete projects in the time frame specified; anticipated revenue from the projects to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company’s planned expansions, and predictions and guidance relating to the Company’s future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Cavico Corp.
Timothy Pham
Vice President and Director


Investor Relations
Truc Nguyen
Managing Director (ext. 418)

Christopher Chu
Director (ext. 426)

Media Relations
Ivette Almeida
Managing Director (ext. 455)

Source: Market Wire/Cavico Corp

Vietnam House to sell VIP villas in July

29 Jun
Vnre.blogspot.comVietnam House Joint Stock Company said it will sell eleven VIP villas as part of the The Boat Club Residences Project, located in Ho Chi Minh City’s District 9, in the beginning of July.
The villas, complete with parks and fountains, are located at the confluence of the Tac and Rach Mon rivers and were designed by a Singapore company.

VIP villa owners enjoy amenities including a marina by Tac River, swimming pool, beautiful landscape and parks lining the rivers.

The entire project is expected to finish by the end of the year.

To date, some customers have registered to buy VIP villas at a price of approximately VND10 billion (US$500,000) each.

Reported by Thanh Huong/ SGGP Daily

Condo market inches up in second quarter

29 Jun
Vnre.blogspot.comAn increase in the number of transactions in the second quarter has made for a positive sentiment in the local property market, after it went through the first quarter of this year with a decrease in trading activity in land-lots and apartments.
Unlike the Hanoi market, which witnessed land-lot fever in April and May, cooling from early this month, the property market in HCMC was quieter, but apartment transactions recorded a significant increase, especially in more affordable apartments, which continued to dominate the market.

Guy Major, director of sales of Savills Vietnam, has given the Daily a quick review of the HCMC condo market, saying the second quarter saw a 24% increase in supply and 26% increase in absorption rate. Three thousand one hundred apartments came on to the market and 2,200 were sold in the second quarter of this year.

“We witnessed steady deal-flow in the second quarter, and, with some exciting, competitively priced, exclusive new projects to be launched in the next few months, we are expecting to be very busy,” Major says.

According to Savills, affordable apartments continued to dominate the market, accounting for 73% of the 2,200 apartments absorbed by the market in the second quarter.

Observing the market over the past year, some property experts say the apartment market has been stable in price, not increasing and not falling sharply. Most projects launched recently offered apartments with prices ranging from VND12 million to VND15 million per square meter.

Among the projects, Dat Gia Real Estate Company has launched a condo project named Babylon Residence 1, in Cay Keo Street, Tam Phu Ward, in the fringe district of Thu Duc. Two blocks of 21 stories in the condo will provide the market 688 apartments of from 75 to 240 square meters with prices starting around VND14 million to VND15 million per square meter.

Last week, Dat Xanh Real Estate Construction and Services put its Phu Gia Hung Apartment project at 15 Ward in Go Vap District on a marketing program. Two blocks of 14 stories will supply the market 234 apartments of from 52 to 93 square meters, with prices starting from VND13 million per square meter.

In another project, Viet Au Corporation plans to launch 600 apartments in its Lotus Garden in Trinh Dinh Thao Street, in HCMC’s Tan Phu District, in the next quarter. The developer has not yet announced the selling prices, but it says its apartments’ selling prices will range from VND13 million to VND15 million per square meter.

Speaking at a seminar at Sofitel Saigon Plaza in downtown HCMC last week, Le Tham Duong, head of the business-management faculty of the HCMC University of Banking, commented on the trend of affordable project development, saying the market demand was driving developers to adjust their products to join the race.

The recent difficulty helped separate segments in the market, in which Grade C apartments take a major share because of huge demand.

Do Thi Loan, general secretary of the HCMC Real Estate Association, says the HCMC expansion plan will offer opportunities for developers and homebuyers in the years to come. Under the plan, districts including 2, 7, 9, 12, Thu Duc, Binh Tan and Tan Phu will be attached to other existing districts.

Loan says homebuyers cannot find any affordable condo projects in the central business districts, but they can in the developing districts where there are land-lots for low-cost condo development.

Transport will be more convenient in the future, because infrastructure development shortening the distance from fringe districts to the city center is under construction. The East-West Highway, Ben Thanh-Suoi Tien Metro, HCMC-Trung Luong Highway and Thu Thiem Tunnel are among the infrastructure projects that will facilitate traffic from the outlying districts to the city center.

Savills anticipates more supply and more demand in the next quarter, and it forecasts transaction levels even further dominated by Grade C apartments; demand levels are high, at the right price.

Source: The Saigon Times