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Jardine Matheson Group will build a complex in the "Golden land" of Hochiminh City

30 Sep
VNREAt the conference (afternoon 9/28/2010) with Mr.Le Hoang Quan – Chairman of HCM City People’s Commettee, Chairman and CEO of Jardine Matheson, Mr Anthony Nightingale proposed: Jardine Matheson Group of UK will build a combination of retail and office for lease in the city center after 15 years present in Vietnam market with many investment projects.
As expected, this building will used the lower floors for retail stores, while the upper floors are the leasing office. According to the opinion of Mr. Nightingale: “We need a good location in the city center, which will build a combination similar to the works of Jardines in Hong Kong and Singapore.”

At the moment, Jardine Matheson is cooperating with the Phu My Hung company to build a supermarket in District 7, not far from the Crescent Lake.

After 15 years of operating in Vietnam, Jardine Matheson has five representative offices, three companies with 100% foreign-owned, 4 joint ventures.

The land 164 Dong Khoi has total area of 9700 m2, surrounded by Nguyen Du and Dong Khoi and Ly Tu Trong, including land area of the HCMC Department of Culture, Sports & Tourism approximately 7100 m2, 2600 m2 the remaining area of 145 households living in this area.

There have been about 66 participating investors would invest in the land. In particular, there are some big investors with equity above U.S $1 billion., such as Indochina Capital, Hong Kong Land, Queensland and Vina Capital…

Reported by Thu Hien

Mapletree invests $70 million to build the third logistics park in Vietnam

13 Sep
VNREAccording to Mr Huynh Quang Hai, General Director of Vietnam-Singapore Industrial Park & Township Development Joint Stock Company (VSIP JSC), expected in late September, the Mapletree Bac Ninh Logistics Park project worth $70 million by Mapletree (Singapore) will be starting construction in VSIP Bac Ninh Integrated Township and Industrial Park.

This is the third logistics park that Mapletree invests in Vietnam. As planned, on the area of 55 hectares, Mapletree will develop the bonded and non-bonded warehouse, or built to rent. In this area, Mapletree will also build an Inland Container Depot (ICD). When complete, the logistics will provide about 280,000m2 of modern warehouse.

In last February, Mapletree received a certificate of investment in VSIP Bac Ninh. This logistics has strategical location in VSIP Bac Ninh, 20 km from Hanoi Capital, with convenient traffic to go to the seaport and airport, also very close to the border of Vietnam – China.

Reported by Nguyen Duc – VIR.

Started construction Tau Voi Lake tourism-service project

18 Aug – On the 15th August, at Ky Thinh commune (Ky Anh District, Ha Tinh Province), Polaris KTY International Vietnam Ltd. celebrated breaking ground ceremony for the Tau Voi lake tourism-service area project. The ground breaking ceremony was a remarkable event with the participation of Mr.Nguyen Thanh Binh – The Secretary of Ha Tinh Province Party Committee, Mr.Dinh Xuan Viet – The Deputy Secretary of Provincial Party Dinh Xuan Viet and Mr.Vo Kim Cu – The Chairman of the Ha Tinh Province People’s Commitee…
With the total investment of $1.8 billion (which is equivalent to more than 33,000 billion VND) Tau Voi lake tourism-service area project includes some main items: exhibition center, offices, parks, houses for rent, 2-5 star hotels, sport-entertainment-amusement parks, shopping centers…

As the investor said, some parts of the project will be completed in 2011, supply local citizens with thousands employments.

CapitaMalls to Seek Shopping-Center Ventures in Vietnam After China, India

6 Aug
Vnre.blogspot.comCapitaMalls Asia Ltd., the retail property unit of Southeast Asia’s biggest developer, may seek shopping-center ventures in Vietnam after expanding in markets including China and India.
Singapore-based CapitaMalls may collaborate with its parent company CapitaLand Ltd. to explore “interesting opportunities” in Vietnam, Chief Executive Officer Lim Beng Chee said. CapitaLand, which is building homes in the nation, said this year it expects properties in Vietnam to make up 10 percent of its assets in three to five years from about 1.5 percent now.

“If they come across something interesting that we could look at for a shopping mall, we can tap on their expertise to go into the market,” Lim said in an interview in Singapore late yesterday.

CapitaMalls is seeking retail projects in Vietnam as the economy expanded 6.4 percent in the three months through June, compared with 5.8 percent in the first quarter. The company also plans to invest S$800 million ($592 million) to S$1 billion in the second half in Singapore, Malaysia and China, it said yesterday.

The retail property operator will also open three more malls in China by the end of the year in addition to the four properties it recently acquired, Lim said.

“There is definitely a positive outlook on retail in the region,” said Ong Choon Fah, head of research at DTZ Debenham Tie Leung in Singapore, a real-estate consulting group. Lifestyle changes in the region “will support retail, but it’s very competitive. There will be some that do exceedingly well, and there will be some that fall to the wayside.”

CapitaMalls said yesterday its second-quarter profit fell 24 percent to S$113.1 million as it booked a smaller gain from the increase in value of its properties. Without the one-time changes, earnings would have increased six times, it said.

In Singapore, CapitaMalls plans to eventually offer its ION mall development along the Orchard Road shopping belt to CapitaMall Trust, the island state’s biggest real-estate investment trust, which it manages. The sale will only be considered when the property is “stabilized,” Lim said.

Reported by Kristine Aquino/Bloomberg

Reality of FDI Investment for Real Estate

3 Aug
Vnre.blogspot.comThe State Bank of Vietnam (SBV) said the credit growth was over 8 percent as of end-May 2010 while the full-year target was 25 percent. Outstanding real estate loans totalled VND192 trillion (US$10 billion), up 4.54 percent from the start of the year. Notably, many large foreign-invested property projects are using loans from Vietnamese banks, not foreigners.
Domestic enterprises in dilemma

Mr Nguyen Ngoc Bao, Director of Monetary Policy under the SBV, said the recent volatility of property market did not originate from credit activities. However, the central bank will closely monitor real estate lending in order to avoid the risk of real estate bubble and more importantly to ensure the safety of banking system.

Sharing this standpoint, Ms Duong Thu Huong, Secretary General of the Vietnam Banks Association, pitched the rationality of curbing real estate loans. The tightened property lending backed by the Government and the State Bank is aimed to remind lenders of channelling capital into manufacturing and commercial activities while clearing adverse impacts off the banking system as well as the economy in case the real estate rubble inflates.

However, some experts argued that tightened credit control on property market is now not necessary. For banks, more real estate lending in the context of high interest rate helps them achieve credit growth purpose, and, in fact, property loans are carefully appraised by banks and imposed high interest rates. For real estate companies, the credit squeeze will send many to trouble. Giving reasons for this argument, Dr Vo Tri Thanh, Deputy Director of Central Institute of Economic Management (CIEM), said: “With the credit growth of nearly 8 percent in the first five months and real estate loans accounting for 10 percent of total outstanding loans, or an equivalent of VND192 trillion, there is still room for real estate lending.”

He noted that the fixed proportion of 10 percent and 15 percent for real estate lending (over outstanding loans) is difficult, citing that different macroeconomic conditions will lead to a different lending proportion. We should not impose the same rate for many years.

Truth of FDI capital

Recently, concerns of real estate lending intensified as there is information that costly foreign-invested projects are using loans provided by domestic banks. Foreign investors reportedly need to invest only US$50-10 million to carry out the projects because they can lend latter. For example, the US$170 million Mulbert Lane project in Mo Lao (Hanoi) borrows US$60 million from Vietinbank. Indochina Capital borrowed US$44 million from Vietcombank to build its Indochina Plaza Hanoi and US$39 million to carry out Hyatt Regency Danang Resort & Spa. Investment capital for Indochina Riverside Tower project in Da Nang and The Nam Hai in Quang Nam province is borrowed. Even, Phu My Hung borrows US$63 million from five Vietnamese banks to construct Crescent Mall. This is against Vietnam’s expectation of attracting foreign finances to supplement domestic savings shortfall and increase foreign exchange reserves.

Many begin to worry about financial capacity of foreign investors as well as corollaries on the real estate market in the near future. In the first five months of 2010, foreign investors registered to invest US$7.5 billion in Vietnam, including US$1.28 billion for real estate, accounting for 17 percent of total registered capital. In fact, Vietnam does not have any method to accurately calculate foreign investors’ investment expenditure. Worse, the borrowing of foreign investors will take away the chance of domestic companies in accessing credit sources for development.

It is undeniable that foreign investors are playing an important part in socioeconomic development but it is an alarm when they use domestic resources, instead of exotic capital.

Reported by LuongTuan/ VCCI News

FPT invests US$925 million in Da Nang City

2 Aug
Vnre.blogspot.comThe People’s Committee of the central Da Nang city has recently granted a license to the FPT Da Nang Urban Joint Stock Company, under FPT Group, to invest in the FPT Da Nang Industrial Urban Zone.
The urban zone covering 181 hectares at Hoa Hai Precinct, Ngu Hanh Son Urban District in Da Nang City, includes the 25ha FPT University, a 33ha software park, and, consequently, the FPT University with 1,500 teachers and staff members can enroll around 10,000 students while the software park can provide jobs for 3,000 engineers.

The project has a total investment capital of US$925 million and is designed by the American SOM Company (Skidmore, Owings and Merrill LLP). It is expected that the first phase of the project will be completed by 2012.

Reported by Vu Hung/ QDND

Phan Thiet: Investment US$ 500 million in Doi Bach Duong tourism complex

27 Jul
Vnre.blogspot.comRecently, People’s Committee Binh Thuan province has granted investment certificate for Doi Bach Duong (Poplar Hill) tourist complex project at Tien Thanh Commune, Phan Thiet city by Poplar Hill Limited company invested. With an area of about 265 hectares and total investment of approximately $ 475,868,000.
The Poplar Hill tourist complex project will have many types of various services including: villas, hotels, restaurants, cultural center, shopping center, hospital, spa and other types of entertainment and sports as martial arts, yachts, art museums … to meet a variety of domestic and foreign traveller. The project is expected to be implemented from August 2010. When completed and put into operate, the project will contribute to various types of tourism in the province.

Source: Binh Thuan DPI