CBRE Vietnam Real Estate Spotlight – W21 – 2020

May CPI shows slight reduction due to dropping petrol, power, rice prices
Vietnamplus

The consumer price index (CPI) in May decreased by 0.03 percent against the previous month and 1.24 percent against last December, but increased by 4.39 percent year-on-year, the General Statistics Office (GSO) reported on May 29. According to the GSO, in May, four out of the 11 commodity groups experienced price reductions: transport (2.21 percent); culture, entertainment and tourism (0.02 percent); post and telecommunication services (0.02 percent); and garment, headwear and footwear (0.01 percent).

January-May FDI down 17 percent
Vietnamplus

Vietnam attracted a total of US$13.9 billion in FDI in the first five months of this year, a fall of 17 percent year-on-year, the General Statistics Office (GSO) announced on May 29. Processing and manufacturing was the most attractive sector among foreign investors, the GSO said, receiving US$6.9 billion. Among 58 countries and territories registering new projects in Vietnam in the first five months, Singapore was the largest investor, with US$4.3 billion, accounting for 58 percent of the total. Following was Taiwan (China) with US$743 million, China with US$694 million, Hong Kong (China) with US$500 million, and the Republic of Korea with US$441 million.

Quang Yen Economic Zone added to coastal economic zone planning
VIR

According to the plan, Quang Yen EZ will cover an area of 13,000 hectares with the industrial zone having two functional areas, one for urban residences and high-tech areaand one for the sea port, related services, and Dam Nha Mac area. This economic zone is expected to become a trade hub, a cradle for startups thanks to a constellation of advantageous factors, including its geographicial location, infrastructure, and skilled human resources, among others.

German adhesive tape manufacturer to build a 55 million euro plant in Vietnam
Vietnamnews

tesa has recently made a public announcement that it will invest 55 million euro (US$60.3 million) in a tape adhesive plant in Việt Nam, making it the 15th production site that tesa operates worldwide besides large plants in Germany (Hamburg, Offenburg), Italy, the US, and China. The new facility will be located on a 70,000sq.m site in DEEP C Industrial Zones, an industrial park cluster in the port city of Hải Phòng in Northern Việt Nam. Production will start in 2023 with approximately 140 employees in the first phase.

Vietnam to resume e-visa issuance to 80 countries
VnExpress

Vietnam will resume issuing e-visa for citizens from 80 countries under the amended Law on Immigration that takes effect July 1, according to a government resolution. Eligible countries include Belgium, Germany, India and South Korea. Eight international airports which allow foreigners to enter/exit Vietnam using e-visa are: Hanoi’s Noi Bai Airport, Hai Phong's Cat Bi Airport, Da Nang Airport, Thua Thien-Hue Province’s Phu Bai Airport, Khanh Hoa Province’s Cam Ranh Airport, HCMC’s Tan Son Nhat Airport, Can Tho Airport and Kien Giang Province’s Phu Quoc Airport. Foreigners will also be allowed to enter the country via 29 land and sea border gates with e-visas.

Mekong Delta expressway construction to begin in 2024
VnExpress

A $1.4 billion expressway is planned between Kien Giang and Bac Lieu provinces to boost connectivity in the Mekong Delta. The Cuu Long Corporation for Investment Development and Project Management of Infrastructure (Cuu Long CIPM) is working on a feasibility report, and would submit it to the Transport Ministry in July, its CEO, Tran Van Thi, said. Construction of the 225-kilometer Ha Tien – Rach Gia – Bac Lieu Expressway would begin in 2024 and be completed in 2026, he added.

Investors need to consider carefully before buying old apartments
VIR

One of the main issues is that the time it takes to rebuild an apartment building is variable, and consequently has a large impact on payback. After more than 10 years of implementing a plan to rebuild old apartment buildings in Hanoi, only 20 have been renovated, accounting for just 1 per cent of the total in the capital. The city needed a lot of time to fulfill the plan, according to Hanoi's Department of Construction. Experts said there were also problems with reaching compensation agreements with residents of old apartment buildings, causing delays.

Vietnamese take increasingly to cashless payments
Vietnamplus

Non-cash payments have increased sharply, especially through mobile devices and the internet, according to the State Bank of Vietnam. Last year online payments went up by 64 percent in terms of number of transactions and 37 percent in terms of value, while mobile payments surged by 198 percent and 210 percent. Payment trends in the economy have shifted towards non-cash modes and e-banking channels including away from ATMs. Electronic payments for public services have also become popular. By the end of last year some 50 banks linked up with tax and customs departments, and tax collected through them accounted for 95 percent of tax revenues.