CBRE Vietnam Real Estate Spotlight – W22 – 2020

Vietnam economy gradually reboots in May
VnExpress

The economy is slowly recovering from the impacts of Covid-19 and social distancing in April as rising consumption and manufacturing figures in May indicate. Sales of products and services rose 27 percent to VND385 trillion ($16.6 billion), with revenues from lodging and food almost doubling. The number of air passengers quadrupled to 563,700 as domestic routes reopened, and the number of people using roads and trains tripled. The number of newly registered companies rose 36 percent to 10,700 while the number of suspended businesses fell by 19 percent.

More monetary easing measures forecast in 2020
Vietnamnews

The State Bank of Vietnam (SBV) is expected to further take monetary easing measures to support the country’s GDP growth target of above 5 per cent this year in light of a weak economic outlook, experts forecast. The SBV cut its benchmark interest rates by 50 basis points on May 12. Accordingly, the refinancing rate was reduced to 4.5 per cent from 5.0 per cent, discount rate to 3.0 per cent from 3.5 per cent, and the overnight inter-bank lending rate to 5.5 per cent, from 6.0 per cent with effect from May 13.
 

Quy Nhon Port opens transport service route to Northeast Asia
Vietnamnews

The port of Quy Nhon launched a direct transport service to Northeast Asia on Wednesday. Ho Lien Nam, head of the port’s sales department told Vietnam News Agency that to expand production and business, the port has opened many new transport service routes, including a route from Quy Nhon port to Northeast Asia, connecting central Vietnam with South Korea, Japan and China. Nam estimated that the service will transport about 1,400 containers, equivalent to about 17,000-19,000 tonnes of goods each month. The port planned to run the route once a week now and increase to twice a week by the middle of August.

Vietnam’s largest island likely to welcome foreign tourists back
VnExpress

Phu Quoc Island could soon allow foreign tourists in on a trial basis as part of the country's roadmap to resuming international tourism. Deputy Minister of Culture, Sports and Tourism Trinh Thi Thuy said the tourism ministry has been working on a pilot plan to bring international tourists to select islands, with Phu Quoc among those considered. The ministry has assigned the Vietnam National Administration of Tourism and Vietnam Tourism Association to work with Kien Giang authorities to bring foreign tourists to Phu Quoc, Vietnam's largest island off the Mekong Delta province of Kien Giang.

Ministry promotes technology transfer, investment promotion
Vietnamnews

The Vietnam Climate Innovation Centre (VCIC) under the Ministry of Science and Technology is implementing programmes to help domestic firms find strategic partners in technology, finance and trade. During a conference in Hanoi on Monday, Pham Duc Nghiem, Deputy General Director of National Agency for Technology Entrepreneurship and Commercialization Development (NATEC) cum VCIC PMU Director, said the support would help local firms better have access to the global value chain.

Vietnamese airlines resume most domestic routes
Vietnamnews

Vietnamese airlines have resumed most domestic flights after the country has gone almost 50 days without community transmission of the coronavirus. While international routes are still mostly stopped, opening more domestic routes is seen as key to getting airlines and the local economy back on their feet. Vietnam Airlines started reopening domestic routes nationwide early last month after getting approval from the Government and the Civil Aviation Authority of Vietnam (CAAV). Jetstar Pacific, VietJet Air, Bamboo Airway and VASCO have all started reopening of domestic routes, but for the aviation industry to fully recover, besides the domestic market, international flights need to gradually return, first of all in Southeast Asia and Northeast Asia.

Tiki, Sendo inform authorities of merger plan
VnExpress

In a move likely to intensify competition, major e-commerce platforms Tiki and Sendo have informed authorities that they plan to merge. Among major competitors that the two home-grown platforms will face are Singapore-based Shopee and Lazada. In the first quarter this year, Shopee ranked top in terms of monthly web traffic, followed by Tiki, Lazada and Sendo, according to data from research company iPrice Group. Tiki’s major stakeholders are China’s e-commerce giant JD.com and Vietnam’s gaming firm VNG, while tech giant FPT is Sendo’s biggest stakeholder.

Developers can ride funding waves
VIR

Competitive prices, along with advantages in climate and natural resources, are helping Vietnamese second home and holiday properties become one of the hottest investment channels in the country. The Ministry of Culture, Sports and Tourism has issued a “Stay At Home with Vietnam” programme to promote domestic tourism with many promotions and incentive packages by both the hospitality and airlines sectors.