Trade deficit to reach $7.5 billion in first half

 

The Ministry of Planning and Investment expects the trade deficit in the first half of the year to be US$7.5 billion, despite optimism about exports.

 

In a report submitted to the Government this week, the ministry anticipated that the total export revenue in the first six months of the year would be $41.5 billion, up 27.8 per cent against the same period last year, and nearly three times higher than the 10 per cent increase targeted at the start of this year by the National Assembly.

 

Imports, meanwhile, are expected to reach $49 billion, up 26.4 per cent compared with the same period last year.

 

If the ministry's forecast proves accurate, the trade deficit in the first six months of this year will be equal to 18 per cent of the total export value. The NA at the start of the year set the trade deficit ceiling at 16 per cent of total export earnings.

 

The ministry warned in the report that the trade deficit was rising due to an increase in imports, and urged ministries and agencies to take bolder measures to control the trade gap.

 

Last month's trade deficit saw a year-on-year increase of 17.3 per cent to $1.7 billion, the highest level since January this year, according to the General Statistics Office.

 

In January-May, the country's main trade deficit was with Asian countries and territories that included mainland China ($5.4 billion), ASEAN ($3.2 billion), South Korea ($3.1 billion), Taiwan ($3.1 billion) and Thailand ($1.8 billion), the GSO reported.

 

Tax on imported cars, motorbikes proposed

 

The Viet Nam Association of Financial Investors (VAFI) is proposing that the Government impose a new tax on automobiles and motorbikes in order to reduce traffic congestion as well as the nation's trade deficit.

 

VAFI general secretary Nguyen Hong Hai said that the Ministry of Finance should consider a new tax on automobiles and motorbikes in addition to current import taxes, special consumption taxes and value-added taxes, excluding only low-cost motorbikes which are popular in rural areas and vehicles used in public transportation.

 

Increasing imports of cars and motorbikes were one of the leading causes of the growing traffic problem in the nation's cities, Hai said, suggesting the new levy should be set high, at two to 10 times the value of the vehicle.

 

"The State would be able to both reduce the number of cars on the road and cut in half the import value of automobiles and auto parts," Hai said. "The money collected from the fee could then be used to improve roads and public transportation."

 

It was unreasonable for individuals to be enjoying the luxury of a car when the country was facing congested roads, pollution, a massive trade deficit and a shortage of foreign currency, he said.

 

"The tax is necessary now."

 

In a letter sent to the ministries of Finance, Transport, and Industry and Trade, VAFI also requested the Ministry of Industry and Trade to stop licensing new automobile and motorbike assembly plants.

 

"Viet Nam now has sufficient automobile and motorbike assembly capacity to meet the needs of the domestic market," the letter said.

 

Hai also noted that, while manufacturers enjoyed tax breaks for domestic production, they had failed to increase the ratio of local content in the vehicles they produce.

 

Livestock industry aims for 8% growth this year

 

The livestock industry will strive to raise its production value by 7.5-8 per cent and increase the ratio of livestock production from 28 per cent to 30 per cent of the total agricultural output this year, an official said at a conference in HCM City yesterday.

 

The livestock industry aimed to produce 4.2-4.3 million tonnes of meat this year, an increase of 6.5 per cent over last year, said Hoang Kim Giao, director of the Department of Livestock Husbandry under the Ministry of Agriculture and Rural Development.

 

It also aimed to produce 6.5 billion eggs and 330,000 tonnes of milk, an increase of 9.5 per cent and 10 per cent, respectively, he said.

 

Giao said despite difficulties caused by diseases outbreak and climate change, total livestock output last year increased by 6.3 per cent from 2009, meeting the domestic demand.

 

Do Kim Tuyen of the Livestock Production Department said the livestock sector played a very important role in agriculture production in Viet Nam since more than 70 per cent of its population lived in rural areas.

 

However, the small-scale, scattered farms and outdated production techniques of the local livestock industry have led to high production costs, making the country's livestock products less competitive than that of other countries, Tuyen said.

 

In addition, the volatility in animal feed prices and high risk of disease had been also causing difficulties for animal breeders.

 

With an increase in population and living standards, demands for meat and milk products were expected to increase over the coming years, offering a bright outlook for the livestock industry, he said.

 

Giao said to achieve these targets and help the industry develop in a sustainable manner, the country must invest more in technology to modernise its animal husbandry and poultry sectors, shifting from household-based to industrial farming.

 

The sector needed to re-arrange its production system to ensure hygiene and safety in breeding and reduce diseases so as to improve productivity and quality, and protect the environment, he said.

 

In addition, the country's veterinary system should also be consolidated from central to local levels to control and reduce the risk of disease, Tuyen said.

 

The industry also needed to develop a master plan for building animal feed factories, slaughterhouses and meat processing plants with modern technology to raise the efficiency of the industrial operation, he said.

 

The Government should also have policies to encourage development of local sources of raw materials for animal feed production to reduce imports, he added.

 

Improving the quality of animal strains was also vital to the sector's development, Tuyen said.

 

To help local livestock breeders access latest technology and services, the Ministry of Agriculture and Rural Development will co-operate with Thailand-based Company N.C.C. Exhibition Organizer and VEAS Co Ltd to organise an international exhibition on the livestock, dairy, meat processing and aquaculture.

 

The exhibition – ILDEX Viet Nam 2012 – will take place from March 22-24 2012 at the new Sai Gon Exhibition and Convention Centre in HCM City's District 7.

 

Giao said the biennial event would provide visitors with the opportunity to evaluate innovative solutions that can help them improve cost efficiency and product quality, contributing to the development and integration into the international markets of Viet Nam's livestock and aquaculture industry.

 

Japanese firms keen to invest in, buy shares in Vietnamese firms

 

Japanese businesses are seeking to invest in Vietnamese industrial firms or buy company shares.

 

Japan Trade Promotion Organisation representative in Viet Nam Hirokazu Yamaoka said more than 500 Japanese companies came to Viet Nam to learn about investment in the year to March.

 

They were mainly interested in auto and motor spare parts production, electronic appliances, machinery components and packaging materials, he said.

 

Yamaoka described Viet Nam as attractive for investment in production compared with other regional countries thanks to its workforce and low costs.

 

His organisation assisted Japanese firms to make direct contact with leaders of 100 major Vietnamese companies.

 

Japanese companies recently bought into Vietnamese firms. For example, the Asia DI industrial investment fund, a joint venture between Dream Incubator Viet Nam and Orix Company, bought 25 per cent of the shares of the Vietnamese company Nutifood.

 

Earlier, Japan's Nippon Meat Packers and a Vietnamese joint stock company in Long An Province joined hands to set up the Nippon Golden Pig joint venture.

 

Dream Incubator Viet Nam joint stock company director general Shinichiro Hori said it was difficult to see a wave of investment from Japan like that in late 1990s due to the woes in Viet Nam's macro-economy.

 

He said Viet Nam was not as competitive for foreign investment as other nations and low-cost labour was not an advantage because investors needed skilled workers.

 

The Ministry of Planning and Investment says Japan has 1,472 valid foreign-invested projects to date with a total registered capital of US$21.2 billion, ranking fourth among 92 countries and territories investing in Viet Nam.

 

Viet Nam's exports to quake-struck Japan increased to $2.8 billion in the first four months of this year, 10.2 per cent of total exports and a year-on-year rise of 24.4 per cent.

 

Garment exported totalled $464 million, up 42 per cent, and seafood $238 million, up 5.7 per cent. Japan is Viet Nam's third largest garment importer, behind the US and EU.

 

Industry and Trade Ministry spokesman Vo Thanh Ha said that Vietnamese consumer goods, especially agro and seafood products, were profitable exports as they were affordable for middle-income earners in Japan.

 

Viet Nam's raw materials, such as coke, electric cables, electronic spare parts and rubber products were needed by Japan to restore infrastructure after the March 11 disasters.

 

He said Viet Nam's export value accounted for only 1 per cent of Japan's total imports, while China's accounted for 20 per cent, Thailand 2.9 per cent and Malaysia 2.8 per cent.

 

Ha said there were great possibilities for exporters who could meet Japan's rigorous standards and quality requirements.

 

Logistic expo starts in City

 

The two-day second Viet Nam Logistics and Supply Chain Exhibition and Conference (Viet Nam Logso) started in HCM City yesterday, featuring more than 55 worldwide and local exhibitors.

 

Nguyen Thi Xuan Oanh, LogSo account manager, said LogSo helped industry businesses streamline their operations and improve supply chain visibility, maximise operation efficiency and flexibility, cut costs and reduce their carbon footprint.

 

Exhibitors showcase 200 innovative solutions over a total area of more than 3,000 square metres.

 

The event has also seen participation of 80 supply chain experts.

 

The conference and exhibition drew more than 11,000 visitors, featured exhibits and discussions on information technology, logistics, warehouse management and transportation network planning.

 

Business consultancy meetings were held on demand and on a one-on-one basis.

 

The conference assits managers with insight in building supply chains that are both agile enough to fulfill the demand of the market yet sustainable enough to survive.

 

The workshops provide companies, especially SMEs, with solid understanding about supply chain operation and management.

 

Major topics at the conference include new technology and solutions in the industry and the upcoming trends in supply chain management.

 

A VIP CEO Exchange for leading CEOs gives them opportunities for sharing and will exchange best practices to weather the economic storm.

 

The Leading Supply Chain Evolution Award is an annual programme organised by the Viet Nam Supply Chain Insight to celebrate supply chain-solution providers, as well as projects and managers for their contributions to Viet Nam’s supply chain development.

 

Last year's exhibition welcomed 35 exhibitors with 80 solutions offered. More than 5,000 visitors came to the event.

 

Transactions worth US$300,000 were signed, and two contracts worth more than $3 million are still under negotiation.

 

Fund urged to shield investors from insolvent brokerages

 

An official of the State Securities Commission is proposing the establishment of a fund to help protect investors from losses caused by the bankruptcy of stock brokerages. The fund would protect investor holdings in cash and securities held by a brokerage that becomes insolvent.

 

Ta Thanh Binh, deputy head of the commission's market development department, said that this model had already been applied in many foreign countries, including Hong Kong, Singapore and Australia.

 

"For instance, the US passed the Securities Investor Protection Act in 1970, assigning a particular institution called Securities Investor Protection Corporation to pay damages to investors," Binh told the newspaper Nhip cau Dau tu .

 

Under the US system, if a brokerage lacks funds to pay all client claims, the corporation uses its funds to pay up to US$500,000 per client, including a maximum of $250,000 for cash claims.

 

The fund was raised primarily from mandatory contributions from securities companies, Binh said, and was not a form of insurance for securities investors. It would not protect investors when the value of stocks, bonds or other investments decreased.

 

"Securities investor protection is different from insurance in other financial sectors," she said.

 

Under current Vietnamese law, securities firms are already required to offer liability insurance to clients or set up a fund to protect investors, but many securities firms have demonstrated a lack of awareness of the significance of requirement.

 

Binh distinguished the concept from an earlier proposal to establish a fund to stabilise the stock market by buying up securities to boost demand and selling them whenever the market price failed to reflect the real value of the shares.

 

"Such a fund, however, would have basically constituted an administrative interfence in the market, so it wasn't feasible," she said.—

 

Vietnamese group plants 100,000ha of rubber

 

 

 

 

PHNOM PENH — The Viet Nam Rubber Group (VRG) 's four subsidiaries yesterday kicked off a project to plant 100,000ha of rubber trees in Cambodia's Kratie Province under an agreement between the two countries.

 

The subsidiaries are the Dong Nai Kratie, Dong Phu Kratie, Phu Rieng Kratie and Loc Ninh Kratie companies.

 

Addressing the ceremony, Cambodian Deputy Prime Minister Yim Chhay Ly said foreign investors, including the VRG, had played a major role in Cambodia's socio-economic achievements in recent years.

 

The VRG has planted rubber trees in Cambodia since 2007. Its 11 subsidiary companies were allocated more than 95,000ha of land of which 26,000ha were already planted, according to Tran Ngoc Thuan, its general director.

 

It plans to plant 50,000ha of rubber trees in Cambodia this year. The entire project is set for completion by the end of next year, with a total investment of US$200 million.

 

Robusta experiences big month in futures exchange

 

Vietnamese robusta coffee had a big month on the London International Financial Futures and Options Exchange in May, with most stocks managing to meet quality specifications.

 

LIFFE's statistics show that 7,853 lots (equivalent to 78,530 tonnes), or 97 per cent of the more than 8,050 lots of Vietnamese robusta coffee submitted for inspection last month, met the futures market's specifications.

 

They also accounted for 73 per cent of all robusta from around the world.

 

In the period from October 2010 to May 2011, Viet Nam exported 1.1 million tonnes of robusta coffee, used mainly for blending, to become the biggest producer and exporter of this type of coffee.

 

Viet Nam also exports around 25,000 tonnes of arabica coffee, which defines the aroma and taste of the beverage.

 

Firm scoops up Asia-Pacific architecture award

 

Alinco Ltd Co, Viet Nam's top architecture firm, has won the 2011 Asia - Pacific Property Awards in the category of Architecture Multiple Residence for its Tan Son Nhat Golf Course Residential project.

 

Alinco Ltd is the first Vietnamese company to win in this category.

 

The awards are given as part of the long-established International Property Awards and its winners' logos are recognised as a symbol of excellence throughout the global industry

 

Expert highlights benefits of building information

 

Architects and designers in the construction industry should use the building information modelling (BIM) process to save cost and improve efficiency, an industry expert told a seminar held in HCM City on Thursday.

 

The conference, which attracted around 100 architects, designers and consultants, discussed applying BIM to deliver economic, environmental and social benefits, reduce consumption, and save cost and energy.

 

BIM includes data components representing building elements and characteristics such as materials, weight, thermal resistance and other physical properties that determine building performance.

 

It helps analyse heating and cooling requirements and water usage, and select building equipment that reduce energy use.

 

Quang Nam allots 50ha to An Long Viet

 

The central province of Quang Ngai has announced the allocation of a 50ha area in Cam Pho and Thanh Ha communes of Hoi An City for the construction of the An Long Viet Tourism Complex.

 

The US$137 million project received its investment certificate from local authorities during the first month of the year.

 

Key investors include the Hungarian Whitestone Investment Hoi An Company Ltd who has been permitted to use of 11 out of the total 50ha in order to develop a property business.

 

Vinpearl launches luxury, golf projects

 

Vinpearl recently opened two new projects including Vinpearl Luxury Nha Trang and the Vinpearl Golf Course.

 

Located on Hon Tre Island, Nha Trang City, the Vinpearl Luxury Nha Trang covers an area of 1,800sq.m, the first tourism complex in Viet Nam to offer a "five-star plus" service.

 

The Vinpearl Golf Course is the first 18-hole island golf course in Viet Nam, covering an 182ha area in the Vinpearl Nha Trang complex.

 

In addition, Vinpearl announced a new strategy aimed at sustainably developing, investing in and managing luxury tourism projects with two trademarks called Vinpearl Luxury and Vinpearl Resort.

 

Construction of the Ba Thien 2 IZ begins

 

The construction of Ba Thien 2 Industrial Zone, assisted by the VinaCapital Group and the Vina CPK Company Ltd, has been kicked off in the Binh Xuan District of northern Vinh Phuc Province.

 

The US$45.5 million project is set to cover an area of 308ha and will be divided into different phases, the first of which will see the construction of 65ha of infrastructure.

 

Upon completion, the project is hoped to attract investors focused on light industry, electronics and high technology.

 

Cu Chi Golf course attracts new investor

 

The GS Engineering & Construction Corp said that it planned to partner with the CT Group in further developing a 36-hole golf project in Cu Chi District of HCM City.

 

The company confirmed that the project would go ahead as planned, but did not release any information pertaining to the exact shares that each company held.

 

The project, started in 2008, set to have reached completion by 2010, has received several warnings for falling behind schedule.

 

Government bond auction mobilises $97 million

 

The State Treasury successfully mobilised VND2 trillion (US$97 million) through the government bond auction held on Thursday on the Ha Noi Stock Exchange.

 

The auctioned bonds, with two terms of three years and five years worth VND1 trillion ($48.5 million) each, were both sold at the interest rate of 13 per cent per year. Both bonds were issued on May 30 with a face value of VND100,000 ($4.85).

 

Thus, the State Treasury raised over VND19.41 trillion ($942.4 million) worth of government bonds since the beginning of the year.

 

Property developer reveals rising profits

 

Property developer Hoang Anh Gia Lai (HAG) announced its operating result in Q1, with VND717 billion (US$34 million) in revenue, up 36.6 per cent over the same period last year.

 

Therefore, gross profit came to VND343.7 billion ($16.4 million), increasing VND115 billion ($5.5 million). Notably, financial revenue reached VND435 billion ($20.7 million), up 120 per cent.

 

HAG's pretax profit in Q1 reached VND593.7 billion ($28.3 million), up 87 per cent over the same period last year.

 

Two firms set to buy back shares

 

Thu Duc Housing Development Corp (TDH) registered to buy back 2 million of its shares from June 13 to September 13, using its undistributed profit. The company currently does not hold any treasury shares.

 

Meanwhile, Viet Nam Mechanisation Electrification&Construction Joint Stock Co (MCG) will also repurchase its 2.19 million shares as treasury stocks from June 8 to September 5 to stablise its share price. The total number of treasury shares the company is holding is 3.3 billion.

 

Companies announce dividend payouts

 

Both Pomina Steel Corp (POM) and Quang Ninh Construction and Cement Joint Stock Co (QNC) announced they will pay dividends with ex-right date on June 13 and the deadline for registration on June 15.

 

POM will carry out the cash payouts at 20 per cent on June 30, while QNC will pay by shares at 8 per cent.

 

Profiting ship builder reveals new business plan

 

Vinaship Joint Stock Co is targeted to earn VND920 billion (US$43.8 million) in revenue and VND35 billion (US$1.7 million) in pretax profit this year. It also aims to invest around $47.5-52.5 million to buy and build new ships.

 

Vinaship approved the issuance plan to increase its capital from VND200 billion ($9.5 million) to VND300 billion ($14.3 million).

 

The company last year gained VND938 billion ($44.7 million) in revenue and VND53.5 billion ($2.5 million) in pretax profit, up 103.6 and 133.6 per cent respectively compared to 2009.

 

Ha Noi targets 10-12 per cent export growth rate by 2015

 

Ha Noi is aiming to post an annual export growth rate of 10-12 per cent from now to 2015 and 14-15 per cent in the period of 2016-20, as a result of the city's trade development programme being formulated by the municipal Department of Industry and Trade.

The city plans to shift the emphasis of its exports towards processed and high value products and services. By 2020, authorities hope processed goods will account for 65 per cent of the city's total export turnover and services 25 per cent.

 

In addition to maintaining its presence in traditional markets, the city also plans to boost exports to Africa and Eastern Europe.

 

Ha Noi's export turnover reached nearly US$8 billion last year, a year-on-year increase of 26.3 per cent.

 

Among those goods with the highest export turnover were computer components, glass and glass products, garments and agriculture products.

 

Keppel Land starts marketing condo in District 7

 

Singaporean property company Keppel Land Limited and local partner Tan Truong Company will officially launch their mixed-use development in HCMC’s District 7 next week after the developer gauged market demand since its soft launch in January this year.

 

Linson Lim, president of Keppel Land International for Vietnam, Thailand and the Philippines, said on Thursday a positive response from the market prompted the company to officially launch its Riviera Point condo development along the Ca Cam River.

 

Lim said around 70% of the 193 apartments released for sale in the soft launch were sold from VND30.7 million (US$1,460) per square meter.

 

He said the company has set aside some US$200 million to further develop the mixed-use development which is designed with 18 residential towers with a total of 2,400 apartments from two to four bedrooms. Besides, it has spaces for retail shops, food and beverage outlets and recreational facilities.

 

The entire waterfront development will be developed in phases, in which the initial collection of homes comprises 549 units with completion expected in 2014.

 

With this condo development, the Singaporean company has a goal to have 22,000 homes in the Vietnam market, including the ongoing development The Estella project with 1,393 units in District 2.

 

Commenting on the market situation, Lim said the current residential market was challenging for every developer. However, the company set a long-term development strategy in the Vietnamese market as well the markets in Singapore, China, India and Indonesia.

 

“Challenges will be overcome and we are confident our development will continue to draw more home buyers,” he said.

 

The company has planned the second phase of development in its current Saigon Center project in downtown HCMC in the next two months.

 

Lim told the Daily that US$200 million would be used to turn the city’s prime site into a 45-storey mixed-use project that comprises office buildings, serviced apartments and retail components.

 

Keppel Land is one of the largest real estate investors in Vietnam and is on its way to expanding its portfolio of properties in key regions such as Hanoi, HCMC, Dong Nai and Vung Tau City.

 

Last October, the company signed a joint venture agreement with Hung Phu Real Estate Investment Corporation to develop a US$63 million villa development covering some 10 hectares in HCMC’s District 9.

 

Besides, the company marked its fourth partnership with its Vietnamese partners by signing a joint venture agreement with Tien Phuoc Company to develop a US$115 million villa project covering 13.5 hectares in HCMC.

 

The Singaporean developer has earned licenses for 17 property projects in Vietnam with total investment capital of US$2 billion.

 

Vinaliving launches luxury villa project in Danang

 

Vinaliving, the property development brand of fund manager VinaCapital, will officially launch its luxury villa project named Norman Estates at Danang Beach Resort on June 5.

 

The developer says 33 luxury villas of the Norman Estates project are available for purchase on a freehold basis to Vietnamese buyers. Selling prices will be announced at an event taking place taking place on Sunday.

 

The luxury villa development, which is created in conjunction with Greg Norman’s Southern Cross Developments, is the latest addition to an exclusive collection of high-end residential communities located on the selective Greg Norman-designed golf courses around the world. It is the second only Norman-branded villa enclave in Southeast Asia.

 

The Norman Estates enclave is part of the award-winning Danang Beach Resort which has a total investment capital of US$500 million and covers 260 hectares stretching along the beach on Son Tra Dien Ngoc Street in Danang’s Ngu Hanh Son District. The integrated resort will include a five-star hotel, two 18-hole golf courses (1st 18 hole completed and fully operational – “Dunes Course”), a marina, multiple retail and food and beverage facilities, recreational facilities, cultural center and some 500 luxury villas (first 115 villas at Ocean Villas under construction and being delivered to their owners now – note Red Books now being delivered to our Phase 1 owners).

 

Norman Estates is adjacent to the 15th and 16th fairways and greens of The Dunes golf course at Danang Beach Resort. Whilst having its own facilities including a recreation club and associated swimming pools and parklands, owners will also receive rights to enjoy a range of facilities already constructed and operational within Danang Beach Resort including the just completed 3,800 sqm club house, Rocksalt (Ocean Villas Beach Club) and various other recreational amenities.

 

David Henry, VinaCapital Real Estate Managing Director, says “Norman Estates offers an even more luxurious lifestyle proposition than the Ocean Villas, which just received the ‘Best Golf Development in Asia Pacific’ at the 2011 Asia Pacific Property Awards”. The Bloomberg-sponsored awards are among the world’s most prestigious real estate industry accolades, and the project will represent the region at the “World’s Best” category and competition being held in the UK in December 2011.

 

“We are thrilled to work with Greg Norman and his team to bring the Norman Estates community to the Vietnamese market,” Henry says, adding that with only 33 villa units available for sale and some already reserved, the company expects to see strong demand amongst buyers in the coming months as it is tipped to be the country’s next trophy project.

 

Development of the best infrastructure in the country, plus the support of the local government, has turned Danang City into one of five locations attracting most investors (local and international) in tourism property market.

 

Among regions for tourism property development, the city is seen as the most promising market with bustling activities of both supply and demand. Danang is also attracting many hotel management brands such as Marriott International, Starwood, Hyatt, Hilton and Accor, as well as many local and international investors and developers such as VinaCapital.

 

Henry describes Danang as a fantastic location strategically positioned mid-way between Hanoi and HCMC, and now enjoys direct air routes to Japan, Singapore, Korea and shortly, Australia.

 

Henry suggests that Danang has large and long beaches with sufficient land for developers to set up integrated resorts with facilities such as golf courses, hotels, condominiums and villas. Its location close to the famous ‘Hoi An” is only another plus to all visitors to the area.

 

“So Danang has all the right ingredients to make it true international and local tourist destination, and I think over time it will become a beach holiday destination for a lot more Vietnamese families and international guests,” Henry says.

 

The potential destination has witnessed an increasing number of new projects launched into the market, thus competition among developers that have actually mobilized capital and are developing projects is intensifying.

 

Lorien Hamilton, Associate Director of residential sales agent Savills Vietnam, said in a recent snapshot featuring Danang residential market that over 20 large and small projects along the central coast region are providing the market with some 2,100 apartments and 500 villas.

 

Although the supply is increasing pressure on the market, the destination of Danang, according to Hamilton, still attracts investors from big cities like HCMC and Hanoi. The demand remains strong and asking prices of most projects in this region remain stable.

 

The market research company conducted surveys from buyers, running from 2009, and it showed that up to 89% of customers decided to invest in Danang because of its beautiful beaches, while 61% chose this place for its accessibility and 58% came there for the weather ideal for relaxation.

 

The survey also showed that target customers remain wealthy Vietnamese citizens with some 80% of buyers coming from Hanoi, 13% from HCMC and 7% from other provinces in the country, including overseas Vietnamese.

 

The market observer projected that the supply of apartments and villas in the region would continue to increase this year, with about 230 villas from five projects to be launched in the near future subject to the developer mobilizing development finance which is currently pretty tough at this time. However, the Danang market would continue to be attractive to local and foreign investment.

 

Talking about competition, Henry (of Vinaliving) agrees that there is a lot of upcoming competition, but the company remains upbeat and not concerned about the market thanks to the development of the first true integrated resort within Vietnam which is now an award winning project voted “Best Golf Development in Asia Pacific”.

 

Hamilton projected that real estate remained the preferred choice for investors and they likely remain bright in the future. Tourism development and infrastructure system improvement are supporting the tourism property segment. Besides, rental pool programs are proving to be of interest providing additional income returns in addition to capital gains in property value.

 

Like other experts, Hamilton believes that the Vietnamese holiday home market was still young, not highly geared, hence well placed to remain stable throughout real estate cycles in the next 5 to 10 years.