The biggest cities in Vietnam are now flush with multi-million dollar luxury apartments built with the latest high-end features Photo: Le Toan Luxury real estate in Vietnam is heating up, luring buyers in with so-called “sky mansions” at a fraction of what their cost would be in the likes of New York City or Hong Kong. According to Bloomberg, Vietnam is experiencing a surge in luxury developments thanks to a booming economy and laws making it easier for foreign buyers to purchase property. While still a developing country, the number of Vietnamese high-net-worth individuals (HNWI) has increased significantly over the last 10 years. With a new supply of luxury high building properties being limited across the city, Bloomberg expects pricing in general to remain strong and units to be quickly absorbed for well-located projects. According to List Sotheby’s International Realty in Singapore, currently one of the fastest-growing economies in the world, … [Read more...] about Luxury property concepts on the rise
Vietnam expands foreign property ownership rules
Benefits for Vietnam in EU deal
Lynette Moey - Managing director Bayer Vietnam Benefits for Vietnam in EU deal Vietnam is one of the 10 members of the ASEAN and has become the EU's second-largest trading partner in the region through this free trade agreement, after Singapore. The EVFTA promises to bring Vietnam and Europe closer together. Once ratified, trade and investment will grow, bringing positive benefits for business and consumers on both sides. Vietnam has long been a favoured investment destination and European businesses have long been proud contributors to the Vietnamese economy and society. The EVFTA will enhance broad and expanding relationships in many key areas, resulting in the creation of jobs, development of expertise, and the transfer of innovative know-how, the generation of tax revenues, and the introduction of cutting-edge technology, as well as the provision of many new goods and services to benefit consumers. The agreement’s strong commitment to open, fair, and rules-based … [Read more...] about Benefits for Vietnam in EU deal
Foreigners acquire taste for property
Despite ownership issues, many foreigners are looking to buy property in Vietnam, Photo: Le Toan Feelings among first buyers Kevin Hawkins, co-executive partner of ZICO Law Vietnam, bought an apartment in Saigon Pearl from a deposit contract from a Vietnamese owner who already paid 95 per cent of the price in 2009. “I have been living here since 2003 and was tired of wasting money on renting a house. Thanks to the pilot programme permitting foreigners to buy houses, now I can make my dream of owning a home come true and register it under my name,” Hawkins told VIR. Meanwhile, Leung Kai Sun Sunny, a buyer from Hong Kong, believes foreigners are mostly waiting to come across the ideal property that ensures long-term benefits. Leung had bought four units in high-end projects in Ho Chi Minh City and said that he received a good yield and much better benefits than what is available in neighbouring countries. “The expense of buying land plots and construction in other … [Read more...] about Foreigners acquire taste for property
Building equality among foreign realty investors
Long gone are the days when foreign investors could legally own only properties in Vietnam by forming a joint venture with a local company to develop a real estate project. By Kevin Hawkins Co-executive partner, ZICO Law Vietnam It has been more than three years since the implementation of the Law on Housing No.65/2014/QH13 and the Law on Real Estate Business No.66/2014/QH13 (LREB) in July 2015 which partially lifted the barriers for foreigners investing in the Vietnamese real estate market and thus opened the floodgate for foreign investment in the sector. With the rapid growth in the economy, development in capital markets, and increase in capital inflow in Vietnam over recent years, it is no surprise that the new laws contributed significantly to the interest and activities of foreign investors in the Vietnamese real estate sector. Current legal landscape The new laws have not only simplified the legislation but also expanded the rights and protections afforded to overseas … [Read more...] about Building equality among foreign realty investors
BUSINESS NEWS IN BRIEF 10/10
VinaCapital officially ends investment in poultry firm Ba Huan Ba Huan JSC, the country's leading pasteurized eggs and poultry meat producer, has decreased its charter capital from VND280 billion (US$12 million) to VND222 billion (US$9.53 million), effectively ending the involvement of VinaCapital, one of the two largest asset management firms in Vietnam, with the company. This results in an increase in the stake holding of domestic shareholders from 66.2% to 83.6%, of which Ba Huan's Director Pham Thi Huan owns 64%. In Feburary, VinaCapital`s flagship fund Vietnam Opportunity Fund (VOF) invested US$32.5 million to acquire a significant minority stake in Ba Huan. However, in early July, Ba Huan sought Prime Minister Nguyen Xuan Phuc's intervention in terminating its partnership with VinaCapital. The firm said there were differences between the English and Vietnamese versions of the agreement and the terms were not what the two parties had agreed initially. Among … [Read more...] about BUSINESS NEWS IN BRIEF 10/10
Pharma firms weigh up FOL removal
More and more pharmaceutical companies are mulling over scrapping their FOL Photo: Dung Minh After about one year of being a foreign partner of Vietnam’s biggest publicly traded drug maker Hau Giang Pharmaceutical JSC (DHG), Taisho Pharmaceutical Holdings, one of the largest pharmaceutical firms in Japan, is preparing to launch products in the Vietnamese market. Holding around a 32-per-cent stake in DHG, Taisho will benefit from a nationwide network of 12 distribution affiliates and 24 branches to gain market share. Opportunities for the Japanese firm to extend its footprint in the lucrative local pharmaceutical market have been boosted by DHG’s decision to scrap its foreign ownership limit (FOL), making it the latest FOL removal case. According to State Capital Investment Corporation’s (SCIC) divestment plan, it will divest the state’s stake in DHG in 2018-2020. SCIC now holds a 43.31-per-cent stake in DHG. Gains or losses Although lifting the FOL is a new … [Read more...] about Pharma firms weigh up FOL removal
Capital market in need of FIE boost
Thin capitalisation is preventing banks from offering sufficient long-term loans to the local business community, Photo: Le Toan Thin capitalisation Many Vietnamese businesses are struggling with a debt-to-equity ratio that is too high to thrive at present. Some will eventually manage the high cost of borrowing to make earnings, while others could be making losses for a year, hoping to pull through in the next. Deputy Prime Minister Vuong Dinh Hue, at the Vietnam Economic Forum on the Capital-Finance Market held in Hanoi last week, cited data by the General Statistics Office of Vietnam showing that 53 per cent of businesses operating in Vietnam made no profit in the year ending on December 31, 2016, and they thus could not fulfil their corporate tax obligations to the country. Although the proportion of those making a profit for the year had significantly improved from the 30 per cent recorded in previous years, Hue nevertheless asked the question: “For an economy in which up … [Read more...] about Capital market in need of FIE boost
BUSINESS IN BRIEF 7/7
HCM City posts GRDP growth of 7.76 percent in year’s first half Ho Chi Minh City posted 585 trillion VND (25.74 billion USD) in the Gross Regional Domestic Product (GRDP) in the first half of 2018, a growth of 7.76 percent from the same period last year, as heard at a meeting on July 3. The meeting was held by the municipal People’s Committee to review the local socio-economic development for the January-June period with Chairman Nguyen Thanh Phong in attendance. The city’s total revenue from retail sales of consumer goods and services rose by 12.5 percent year-on-year to 510.19 trillion VND (nearly 22 billion USD), while its earnings from exports reached 18.12 billion USD, up 7.6 percent year-on-year. Approximately 184 trillion VND (7.9 billion USD) was collected for the State budget during the period, making up about 48.7 percent of the yearly target. Some 21,500 new enterprises were set up with the total registered capital of nearly 249 trillion VND (10.7 billion … [Read more...] about BUSINESS IN BRIEF 7/7
BUSINESS IN BRIEF 29/3
Vietnamese firms urged to deeply explore Cuban market Vietnamese, French firms urged to foster partnerships Domestic pharmaceuticals stocks send good vibes to Abbott and Taisho Since the beginning of the fourth quarter of 2018, pharmaceutical stocks have been forecast to thrive as bustling activities such as state divestitures, mergers and acquisitions (M&A), and notable investments from foreign healthcare firms are being announced left and right. Speaking about the investment and divestment activities between Vietnam-based pharmaceuticals and foreign investors, a representative of State Capital Investment Corporation (SCIC) disclosed that 34.71 per cent capital at Domesco Medical Import Export Joint Stock Corporation (HSX: DMC) is on its divestment agenda in April. US-based multinational healthcare firm Abbott has already expressed a wish to participate in the divestment. In late 2017, Latin American CFR International SpA, DMC’s former largest shareholder, transferred its … [Read more...] about BUSINESS IN BRIEF 29/3
BUSINESS IN BRIEF 9/1
Vingroup, T&T to develop urban railway projects in HanoiThe government of Hanoi City has proposed the Prime Minister allow Vingroup and T&T Group to develop three urban railway projects which the city plans to complete by 2025, Tuoi Tre newspaper reports.The two domestic investors will use their capital to make pre-feasibility studies for these projects.When the projects were announced, many investors expressed interest in Hanoi. However, only Vingroup and T&T Group have registered to take part.Both of them proposed implementing the projects in the build-transfer (BT) format. Particularly, Vingroup registered to build the 38.4-kilometer metro line No. 5 which connects Van Cao and Hoa Lac and metro line No. 2 from Tran Hung Dao to Thuong Dinh with a length of 5.9 kilometers. Meanwhile, T&T Group is keen on metro line No. 4 connecting Me Linh, Sai Dong and Lien Ha, and measuring 54 kilometers in length.The two investors said they would use their own finances to study the … [Read more...] about BUSINESS IN BRIEF 9/1