VIETNAM REAL ESTATE REPORT Q1/2019 · 2019. 3. 15. · VIETNAM REAL ESTATE REPORT Q1/2019. 2 ... In...
Transcript of VIETNAM REAL ESTATE REPORT Q1/2019 · 2019. 3. 15. · VIETNAM REAL ESTATE REPORT Q1/2019. 2 ... In...
1
VIETNAM REAL ESTATE REPORT Q1/2019
2
Executive summary 4 3.3.1 Real estate for rent 43
1. Business environment 7 3.3.2 Real estate for sale 70
1.1 Macroeconomic situation 7 3.4 Risks and challenges 83
1.2 Legal framework 11 3.4.1 Risks 84
1.3 Impact of trade agreements 21 3.4.2 Challenges 87
2. World Real Estate Market 24 3.4.3 SWOT 89
2.1 Real estate market in some countries in the world 24 3.5 Housing development planning 90
2.2 Real estate market in some countries in the region 30 3.6 Driving forces 92
3. Vietnam Real Estate Market 33 3.7 M&A trend 102
3.1 Industry concepts and characteristics 33 4. Enterprise analysis 107
3.2 The period of volatility of Vietnam Real Estate Market 38 5. Appendix 136
3.3 Movement of the real estate market 42 Financial statements 137
Content
3
RS Real estate
MC Ministry of Construction
FIA Foreign Investment Agency
GSO General Statistics Office
VNAT Vietnam National Administration of Tourism
VNREA Vietnam Real Estate Association
VIRAC Vietnam Industry Research And Consultant JSC
Abbreviations
4
Vietnam after a long time developed the
"bubble" with the virtual price and then fall into
recession, house prices gradually return to real
value.
Vietnam is one of the most attractive
destinations for retailers in Southeast Asia due
to the booming economy.
Executive summary
Content is intentionally removed for demo purpose
5
Executive summary
With an export-oriented economy, with
exports accounting for a significant portion of
80% of nominal GDP,
The rate of GDP growth over the years and
policies to attract investment, as well as
tourists in recent years, is driving forces for the
hotel market in Vietnam.
Content is intentionally removed for demo purpose
6
Vietnam is seen as an attractive market
compared to other ASEAN countries,
In addition, the former when the retail market
of Vietnam with only three big men in the
industry such as Metro, Big C or Saigon Co.op,
has formed and developed with many big
names in the domestic retail industry
Executive summary
Content is intentionally removed for demo purpose
7
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Impact of trade agreements
Content
1. Business environment
1.1 Macroeconomic situation
8
Source: VIRAC, GSO
Source: VIRAC, GSO
CPI fluctuations by month, 1/2015 –
12/2018
GDP growth by quarter, 2015 –2018
Content is intentionally removed for demo purpose
9
Source: VIRAC, GSO
1. Business environment
1.1 Macroeconomic situation
Source: VIRAC, GSO
CPI by commodity group, 2018
Consumer Confidence Index, 2014 –2018
Content is intentionally removed for demo purpose
10
1. Business environment
1.1 Macroeconomic situation
Source: VIRAC, GSO
Source: VIRAC, FIA
FDI, 2014 –2018e USD billion
Average lending interest rate applied to USD, 2011 – 2018
Content is intentionally removed for demo purpose
11
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Impact of trade agreements
Content
12
1. Business environment
1.2 Legal framework
Content is intentionally removed for demo purpose
Real estate business law effective from 1 July 2015 has some notable changes as follows:
Sale or lease of houses to be formed in the future, investors must be guaranteed by credit institutions:
Real estate business must establish enterprise:
Investors of real estate projects are allowed to transfer all or part of the project
Disclaiming that all real estate transactions must be through a real estate trading platform:
13
1. Business environment
1.2 Legal framework
Content is intentionally removed for demo purpose
Handling the recovery of real estate projects:
The Vietnam Bank for Social Policies (VBSP) will mobilize capital and provide loans to implement social support policies:
Expanding the scope of real estate business activities of domestic organizations and individuals:
14
1. Business environment
1.2 Legal framework
Content is intentionally removed for demo purpose
The 2014 Revised Housing Law, effective from July 1, 2015, has some noteworthy points:
Foreigners are allowed to buy and own houses in Vietnam:
Expanding the beneficiaries of social support policies :
15
1. Business environment
1.2 Legal framework
Content is intentionally removed for demo purpose
16
1. Business environment
1.2 Legal framework
Circular 06/2016 amending and supplementing some articles of Circular 36/2014/TT-NHNN
A detailed walk-through map is included in the flat area and the sections
are not included.
Source: VIRAC, Circular 03/2014/TT-BXD)
Content is intentionally removed for demo purpose
17
1. Business environment
1.2 Legal framework
On 12/15/2016, Circular No. 28/2016/TT-MC
Content is intentionally removed for demo purpose
18
1. Business environment
1.2 Legal framework
The Ministry of Construction has issued two circulars effective from the beginning of February 1977 relating to apartment buildings and real estate
brokers:
Content is intentionally removed for demo purpose
19
1. Business environment
1.2 Legal framework
Content is intentionally removed for demo purpose
General regulations
On 13/4/2018, the Ministry of Finance announced the draft report submitted to the Government on the proposal for the draft property Tax Law.
20
1. Business environment
1.2 Legal framework
Content is intentionally removed for demo purpose
21
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Impact of trade agreements
Content
1. Business environment
1.3 Impact of trade agreements
22
Vietnam's integration process since 1995 to present
By the end of 2018, Vietnam has signed, implemented, and is negotiating a total of 17 free trade agreements (FTAs).
Content is intentionally removed for demo purpose
23
1. Business environment
1.3 Impact of trade agreements
Trans-Pacific Partnership Agreement - TPP:
Content is intentionally removed for demo purpose
24
2. World Real Estate Market
2.1 Real estate market in some countries in the world
2.2 Real estate market in some countries in the region
Content
25
US Real estates
Source: VIRAC, National Association of Realtors
USD
2. World Real Estate Market
2.1 Real estate market in some countries in the world
House price movement in the US, , 5/2012 – 12/2018
Content is intentionally removed for demo purpose
26
2. World Real Estate Market
2.1 Real estate market in some countries in the world
Total investment capital in global real estate market, 2008-2017Billion
USD
Source: VIRAC, Statista
Content is intentionally removed for demo purpose
27
2. World Real Estate Market
2.1 Real estate market in some countries in the world
Content is intentionally removed for demo purpose
In Europe:
Ireland’s real estate market:
UK’s real estate market :
28
2. World Real Estate Market
2.1 Real estate market in some countries in the world
Content is intentionally removed for demo purpose
Germany’s real estate market:
Russia’s real estate market :
29
2. World Real Estate Market
2.1 Real estate market in some countries in the world
Content is intentionally removed for demo purpose
In Asia and Oceania:
Australia’s real estate market:
New Zealand’s real estate market:
China’s real estate market:
30
In the Middle East housing market:
2. World Real Estate Market
2.1 Real estate market in some countries in the world
Content is intentionally removed for demo purpose
31
2. World Real Estate Market
2.1 Real estate market in some countries in the world
2.2 Real estate market in some countries in the region
Content
32
2. World Real Estate Market
2.1 Real estate market in some countries in the region
Content is intentionally removed for demo purpose
In ASEAN countries:
Myanmar’s real estate market:
.
Indonesia’s real estate market:
33
Source: VIRAC, numbeo.com
Home/income price indices in some Asian countries, 2019
2. World Real Estate Market
2.1 Real estate market in some countries in the region
Content is intentionally removed for demo purpose
Malaysia’s real estate market:
34
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.4 Risks and challenges
3.5 Housing development planning
3.6 Driving forces
3.7 M&A trend
Content
35
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
Overview of real estate market
Content is intentionally removed for demo purpose
36
According to the Department of Housing Management - Ministry of Construction real estate is divided into three categories:
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
Content is intentionally removed for demo purpose
37
Basic characteristics of real estate
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
Content is intentionally removed for demo purpose
38
Characteristics of investment in real estate business in Vietnam
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
Content is intentionally removed for demo purpose
39
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
Source: VIRAC, GSO
Source: VIRAC, GSO
Number of enterprises in Vietnam real estate business, 2010-2017
Number of labours in Vietnam real estate business, 2010-2017
Vietnam real estate business’s revenue, 2010-2017
40
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
Billion
VND
Source: VIRAC, GSO Source: VIRAC, GSO
Vietnam real estate business’s before-tax profit, 2010-2017
41
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.4 Risks and challenges
3.5 Housing development planning
3.6 Driving forces
3.7 M&A trend
Content
42
Periods of real estate in Vietnam
Source: VIRAC
3. Vietnam Real Estate Market
3.2 The period of volatility of Vietnam Real Estate Market
Content is intentionally removed for demo purpose
Content is intentionally removed for demo purpose
43
Before 1990:
The first real estate fever (1993-1994):
The first freeze (1995-1999):
The second real estate fever (2001-2002):
3. Vietnam Real Estate Market
3.2 The period of volatility of Vietnam Real Estate Market
Content is intentionally removed for demo purpose
44
The second freeze (2002-2006):
The third real estate fever (2007-2009):
The third freeze (2009-2013):
2014 – now:
3. Vietnam Real Estate Market
3.2 The period of volatility of Vietnam Real Estate Market
Content is intentionally removed for demo purpose
45
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.4 Risks and challenges
3.5 Housing development planning
3.6 Driving forces
3.7 M&A trend
Content
46
Vietnam's economy is on a growth trajectory in terms of GDP and other economic indicators. Personal income and family expenses are gradually
improving which also has a positive impact on the retail real estate market.
Forecast:
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Retail market
Retail market
Content is intentionally removed for demo purpose
47
Retail market – Hanoi
Source: VIRAC, VNREA
m²
Typical projects are scheduled for 2019-2020
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Retail market
Total supply by category, Q4/2018
Content is intentionally removed for demo purpose
48
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Retail market
Source: VIRAC, VNREA
Supply structure by region, Q4/2018
Vacancy rates and rental prices, Q4/2018
Content is intentionally removed for demo purpose
49
The area of supply for commercial centers always accounts for a large
proportion of over xx% of the retail supply area.
Source: VIRAC, VNREA
Source: VIRAC, VNREA
Thousand m²
USD/ m²/ month
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Retail market
Rental supply of commercial center, 2010-2018
Rental price and vacancy rates of commercial center, 2010-2018
Content is intentionally removed for demo purpose
50
m²
Source: VIRAC, VNREA
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Retail market
Retail market – Ho Chi Minh city Total supply, Q4/2018
Retail supply structure by region, Q4/2018
Content is intentionally removed for demo purpose
51
Typical projects are expected to be completed in 2019-2020
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Retail market
Source: VIRAC, VNREA
VND/m²/monthVacancy rate and rental prices, Q4/2018
Content is intentionally removed for demo purpose
52
Source: VIRAC, VNREA
Source: VIRAC, VNREA
Thousand m²
USD/ m²/ month
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Retail market
Supply of commercial center for lease 2007-2018
Rental price and vacancy rate of commercial centers, 2009-2018
Content is intentionally removed for demo purpose
53
Source: VIRAC tổng hợp, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Retail market
Structure of retail area for rent by purpose, 2015 Structure of retail area for rent by purpose, 2018
Source: VIRAC tổng hợp, VNREA
Lĩnh vực F&B ngày càng chiếm tỉ trọng cao hơn trong trung tâm thương mại.
Content is intentionally removed for demo purpose
54
Office market
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Office market
Content is intentionally removed for demo purposeForecast:
55
Thousand m²
Source: VIRAC, VNREA
Source: VIRAC, VNREA
Thousand m²
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Office market
Office market – Hanoi New supply and vacancy rate of grade A offices, 2010-2018
Total supply by region,Q4/2018
Content is intentionally removed for demo purpose
56
Source: VIRAC, VNREA
USD/m²/month
Source: VIRAC, VNREA
USD/ m²/ month
Typical projects under construction, 2019
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Office market
Average rental price by area, Q4/2018
Office rental price, Q1/2015-Q4/2018
Content is intentionally removed for demo purpose
57
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Office market
Big office deals (>1,000m²) in Hanoi, 2018
Source: VIRAC , VNREA
Source: VIRAC, VNREA
Structure of office for rent by industry, 2018
Content is intentionally removed for demo purpose
58
Office market – TP.HCM
Thousand m²
Source: VIRAC, VNREA
Source: VIRAC, VNREA
Thousand m²
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Office market
USD
Office supply and vacancy rate, Q1/2016-Q4/2018
Total supply and rental price by category, Q4/2018
Content is intentionally removed for demo purpose
59
Typical projects under construction
Source: VIRAC, VNREA
Source: VIRAC, VNREA
USD/ m²/ month
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Office market
Office rental price, Q1/2015-Q4/2018
Content is intentionally removed for demo purpose
60
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Office market
Source: VIRAC, VNREA
Source: VIRAC, VNREA
Big office deals in HCMC, 2018
Structure of office for rent by industry, 2018 Structure of co-working space for rent by enterprise, 2018
Content is intentionally removed for demo purpose
61
Forecast:
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Industrial zone market
Industrial zone market
Content is intentionally removed for demo purpose
62
Industrial zone market – HanoiHa
Source: VIRAC, VNREA
Source: VIRAC, VNREA
VND thousand/ m²/ lease term
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Industrial zone market
Rental price by area, Q4/2018
Total Supply by Region, Q4/2018
Content is intentionally removed for demo purpose
63
Source: VIRAC, VNREA
Typical projects in the period 2018-2020
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Industrial zone market
Content is intentionally removed for demo purpose
64
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Industrial zone market
Ha
Source: VIRAC, VNREA
USD/ m²/ lease term USD/ m²/ month
Source: VIRAC, VNREA
Northern Industrial Zone
Average rental price for the Northern
Industrial Zone, Q4/2018
Total supply and vacancy rate of Northern Industrial
Zone, Q4/2018
Content is intentionally removed for demo purpose
65
Source: VIRAC, VNREA
Source: VIRAC, VNREA
VND thousand/ m²/ lease term
Ha
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Industrial zone market
Industrial zone market – Ho Chi Minh cityTotal supply and vacancy rate, Q4/2018
Rental price by area, Q4/2018
Content is intentionally removed for demo purpose
66
Source: VIRAC, VNREA
Typical projects in the period 2018-2025
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Industrial zone market
Vacancy rate, 2011- 2018
Content is intentionally removed for demo purpose
67
There is a continuous increase in demand
Source: VIRAC, VNREA Source: VIRAC, VNREA
USD/m²/lease termUSD/m²/month
Rental price for land by area, 2011 – 2018
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Industrial zone market
Rental price for factories available, 2011 – 2018
Content is intentionally removed for demo purpose
68
Apartment for rent is the main segment serving foreigners living and working in Vietnam.
Forecast:
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Apartment for rent
Apartment for rent
Content is intentionally removed for demo purpose
69
Source: VIRAC, VNREA
Source: VIRAC, VNREA
Apartment
USD/m²/month
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Apartment for rent
Apartment for rent – Hanoi Total Supply by Category, 2005- 2018
Apartment rental price by category, Q1/2013- Q4/2018
Content is intentionally removed for demo purpose
70
Source: VIRAC, VNREA
USD/ apartmenM/
month
Typical Serviced Apartments in Hanoi, 2019
Source: VIRAC
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Apartment for rent
Apartment rental price and rental capacity, Q1/2015- Q4/2018
Content is intentionally removed for demo purpose
71
Apartment for rent – Ho Chi Minh city
Source: VIRAC, VNREA
Apartment
Source: VIRAC, VNREA
Typical projects under construction, 2019
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Apartment for rent
Total supply of apartments for rent, Q1/2015- Q4/2018
Content is intentionally removed for demo purpose
72
Source: VIRAC, VNREA
USD/m²/month
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Apartment for rent
Apartment rental prices by class, Q4/2016- Q4/2018
Content is intentionally removed for demo purpose
73
Forecast:
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Hotel market
Hotel market
Content is intentionally removed for demo purpose
74
Source: VIRAC, VNREA
Source: VIRAC, VNREA
USD/room/night
Room
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Hotel market
Hotel market – Hanoi Hotel total supply, Q1/2016 – Q4/2018
Rental price and capacity, Q1/2016- Q4/2018
Content is intentionally removed for demo purpose
75
Rental price and capacity, Q4/2018
VND thousand/room/night
Source: VIRAC, VNREA
Source: VIRAC, VNREA
VND
thousand/room/night
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.1 Real estate for rent – Hotel market
Room
Hotel market – Ho Chi Minh city
Source: VIRAC, VNREA
Average rental price and capacity, Q1/2016- Q4/2018
Hotel total supply, Q1/2015 – Q4/2018
Content is intentionally removed for demo purpose
76
Forecast:
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Apartment for sale
Apartment for sale
Content is intentionally removed for demo purpose
77
Thousand m²
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Apartment for sale
Apartment for sale – Hanoi
The housing market has increased sharply since 2013.
Housing supply in Hanoi, 2008- 2018
Content is intentionally removed for demo purpose
78
Both primary and secondary market prices showed signs of a rise from
2014 to 2015 due to the recovery of the market.
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Apartment for sale
Price fluctuation of apartment for sale, Q1/2008 – Q4/2018
Content is intentionally removed for demo purpose
79
Source: VIRAC, VNREA
Typical projects are projected to complete
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Apartment for sale
Project Investor LocationCompletion
time
Number of
Apartments
Selling price
(USD/m²)
Content is intentionally removed for demo purpose
80
Source: VIRAC, VNREA
Apartment
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Apartment for sale
Apartment for sale – Ho Chi Minh city New supply and number of apartments sold,
2010- 2018
Content is intentionally removed for demo purpose
81
USD/m²
Source: VIRAC, VNREA
USD/m²
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Apartment for sale
Source: VIRAC, VNREA
High-end apartment segment's price, 2010- 2018Offer price for apartment in Ho Chi Minh City, Q1/2015 –
Q4/2018
Content is intentionally removed for demo purpose
82
Project Investor LocationCompletion
time
Number
of
apartme
nts
Selling
price
(USD/m²)
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Apartment for sale
* Selling price does not include taxes and discounts.
Typical projects are open for sale
Content is intentionally removed for demo purpose
83
Source: VIRAC
BankInterest
rate(*)
Maximum
loan(**)
Maximum
repayment period
(years)
Lending rates of commercial banks, Q4/2018
If popular-segment customers mainly buy to stay, luxury-segment
customers still mainly have money to buy for investment or wait for selling
out.
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Apartment for sale
Source: VIRAC, VNREA
Structure of buying houses by purpose in HCM, 2016
Content is intentionally removed for demo purpose
84
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Villa and townhouse market
Villa and townhouse market
Content is intentionally removed for demo purpose
85
Source: VIRAC, VNREA
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Villa and townhouse market
Villa and townhouse market - HanoiApartment
Total villa/townhouse supply, Q1/2015- Q4/2018
Price fluctuation of villas and townhouses,
Q1/2014- Q4/2018
Content is intentionally removed for demo purpose
86
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Villa and townhouse market
Project Investor Location Completion time Number of
apartments
Selling price
(USD/m² )
Typical projects are expected to to complete
Source: VIRAC
Content is intentionally removed for demo purpose
87
Source: VIRAC, VNREA
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Villa and townhouse market
Villa and townhouse market - Ho Chi Minh city
ApartmentTotal villa/townhouse supply, Q1/2014- Q4/2018
Content is intentionally removed for demo purpose
From 2019 to 2020, it is predicted that xx,xxx villas/townhouses will be supplied on the market.
88
3. Vietnam Real Estate Market
3.3 Movement of the real estate market - 3.3.2 Real estate for sale – Villa and townhouse market
Project Investor Location Completion
time
Number of
apartments
Selling price
(USD/m² )
Typical projects are expected to complete
Source: VIRAC
Content is intentionally removed for demo purpose
89
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.4 Risks and challenges
3.5 Housing development planning
3.6 Driving forces
3.7 M&A trend
Content
90
The subjective risks from the investor side
3. Vietnam Real Estate Market
3.4 Risks and challenges – 3.4.1 Risks
Content is intentionally removed for demo purpose
91
3. Vietnam Real Estate Market
3.4 Risks and challenges – 3.4.1 Risks
Objective risks from macro elements
Content is intentionally removed for demo purpose
92
Source: VIRAC, numbeo.com
No. City, country
name
Country House price on
income (times)
20 cities with the highest average income per capita in 2017 in
the world
Source: VIRAC, numbeo.com
Time
House price on income in Vietnam, 2011 – 2017
3. Vietnam Real Estate Market
3.4 Risks and challenges – 3.4.2 Challenges
Content is intentionally removed for demo purpose
93
Source: VIRAC, MOC
VND trillion
3. Vietnam Real Estate Market
3.4 Risks and challenges – 3.4.2 Challenges
Stock value of real estate, 6/2015-11/2018
Content is intentionally removed for demo purpose
94
3. Vietnam Real Estate Market
3.4 Risks and challenges – 3.4.2 Challenges
Content is intentionally removed for demo purpose
95
S W
O T
3. Vietnam Real Estate Market
3.4 Risks and challenges – 3.4.3 SWOT
Content is intentionally removed for demo purpose
96
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.4 Risks and challenges
3.5 Housing development planning
3.6 Driving forces
3.7 M&A trend
Content
97
On 11/30/2011, the Prime Minister approved and approved Decision No. 2127/QD-TTg on national housing development strategy to 2020 and vision
to 2030:
3. Vietnam Real Estate Market
3.5 Planning
Content is intentionally removed for demo purpose
98
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.4 Risks and challenges
3.5 Housing development planning
3.6 Driving forces
3.7 M&A trend
Content
99
In South East Asia
Vietnam
Area of land
Area of sea
Population (2017)
GDP (2017)
Income per capita (2017)
GDP growth rate (2017)
Vietnam
3. Vietnam Real Estate Market
3.6 Driving forces – Geographical location
Content is intentionally removed for demo purpose
Hà Nội
Trường Sa
Đồng Nai
Phú Yên
Khánh Hòa
Đồng Tháp
An Giang
CàMau
Bắc Ninh
Hải Phòng
Hoàng Sa
Bình Định
Bình Phước
Hồ ChíMinh
Tiền Giang
Bến Tre
Thanh Hóa
Cần Thơ
Hưng Yên
Nam Định
10
0
3. Vietnam Real Estate Market
3.6 Driving forces – Geographical location
Population distribution in Vietnam
Content is intentionally removed for demo purpose
101
Proportion of logistics cost in Vietnam’s GDP in 2016,
compared to other countries
Source: VIRAC collects
3. Vietnam Real Estate Market
3.6 Driving forces – Infrastructure
Content is intentionally removed for demo purposeInvest capital in types of transportation,2010-2015
102
Source: VIRAC, World Bank
3. Vietnam Real Estate Market
3.6 Driving forces – Infrastructure
Content is intentionally removed for demo purpose
Source: VIRAC, World Bank Source: VIRAC, World Bank
LPI Index ranks of ASEAN countries, 2010-2018
LPI Index rank of Vietnam, 2007- 2018
103
Largest urban areas of Vietnam
Estimated 2017
Rank City name Under
Population
(million
people)
Source: VIRAC
3. Vietnam Real Estate Market
3.6 Driving forces – Advantages of infrastructure and population
Content is intentionally removed for demo purpose
104
Level of urbanization, 2010 - 2017
Disposable income and household expenditures, 2008 – 2017f
Source: VIRAC, GSO
Source: VIRAC, GSO
3. Vietnam Real Estate Market
3.6 Driving forces – Urbanization rate and disposable income
Content is intentionally removed for demo purpose
105
Source: VIRAC, MOC
VND trillion
Source: VIRAC, MOC
3. Vietnam Real Estate Market
3.6 Driving forces – Outstanding credit of real estate
Outstanding credit of Real estate, 12/2012-12/2018
Structure of real estate credit balance, 2018
Content is intentionally removed for demo purpose
106
Structure of population by stratification (expenditure), 2013 – 2020f
Source: VIRAC, BCG
Million people
Source: VIRAC
3. Vietnam Real Estate Market
3.6 Driving forces – The development of the middle class and consumer confidence index
Content is intentionally removed for demo purpose
107
Vietnam is one of the fastest growing travel destinations in Southeast
Asia
Source: VIRAC, TCDL
Million people
3. Vietnam Real Estate Market
3.6 Driving forces – Tourism potential
Number of tourists, 2011-2018
Content is intentionally removed for demo purpose
108
3. Vietnam Real Estate Market
3.6 Driving forces – Tourism potential
Content is intentionally removed for demo purpose
Vietnam’s revenue in real estate business, 2010-2022f
Source: VIRAC, TCDL
109
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.4 Risks and challenges
3.5 Housing development planning
3.6 Driving forces
3.7 M&A trend
Content
110
In 2018, real estate market witnessed many large-sacle M&A transactions of over x billion USD.
3. Vietnam Real Estate Market
3.7 M&A trend
Content is intentionally removed for demo purpose
111
3. Vietnam Real Estate Market
3.7 M&A trend
Content is intentionally removed for demo purpose
Outstanding M&A transactions in real estate business in 2018
112
4. Enterprise analysis
Content
3. Types of real estate
Real estate enterprise analysis
Vingroup - JSC
Vinhomes Sky Lake, Pham Hung-Nam Tu Liem-Hanoi, Vingroup
100
Content is intentionally removed for demo purpose
114
Overview of FLC Group:
Five-star resort and golf complex Quy Nhon, Binh Dinh
3. Types of real estate
Real estate enterprise analysis
Content is intentionally removed for demo purpose
115
Kinh Bac City Development Corporation
3. Types of real estate
Real estate enterprise analysis
Que Vo Industrial Park, Que Vo District, Bac Ninh Province, KBC
Content is intentionally removed for demo purpose
116
Nova Real Estate Investment Corporation:
3. Types of real estate
Real estate enterprise analysis
Residential project in Richstar, Tan Phu, HCMC, Novaland
Content is intentionally removed for demo purpose
117
Khang Dien House Trading and Investment Joint Stock Company
3. Types of real estate
Real estate enterprise analysis
Lucasta Villa, District 9, Ho Chi Minh City
Content is intentionally removed for demo purpose
Nam Long Investment Corporation
118
3. Types of real estate
Real estate enterprise analysis
Camellia and Ehome, Nam Long
Content is intentionally removed for demo purpose
119
Phat Dat Real Estate Development Joint Stock Company
3. Types of real estate
Real estate enterprise analysis
Residential area of EverRich 2 (River City), District 7, HCMC, Phat Dat real
estate development
Content is intentionally removed for demo purpose
120
3. Types of real estate
Real estate enterprise analysis
Quoc Cuong Gia Lai Joint Stock Company
Quoc Cuong Gia Lai Residence
Content is intentionally removed for demo purpose
121
3. Types of real estate
Real estate enterprise analysis
Green Land Real Estate Group:
Sunview Town Residence – Dat Xanh Group
Content is intentionally removed for demo purpose
122
3. Types of real estate
Real estate enterprise analysis
Binh Duong Business and Development Joint Stock Company (TDC):
TDC Plaza apartment building in Binh Duong, Hoa Phu, Thu Dau Mot,
Binh Duong
Content is intentionally removed for demo purpose
Overview of AEON Group and AEON MALL Vietnam Co., Ltd Major shopping centers of AEON in Vietnam
Location Shopping center Floor square Total investment
3. Types of real estate
Real estate enterprise analysis
123
Content is intentionally removed for demo purpose
124
Overview of Lotte Group
3. Types of real estate
Real estate enterprise analysis
Hanoi
Hoàng Sa
Hồ Chí Minh
Trường SaCần Thơ
Phú Quốc
Vũng Tàu
Đà Nẵng
Content is intentionally removed for demo purpose
125
MEGA MARKET VIET NAM COMPANY LIMITED (formerly METRO Cash &
Carry VIETNAM)
3. Types of real estate
Real estate enterprise analysis
Content is intentionally removed for demo purpose
126
Overview of BIG C
3. Types of real estate
Real estate enterprise analysis
Content is intentionally removed for demo purpose
127
Vincom Retail Joint Stock Company:
3. Types of real estate
Real estate enterprise analysis
Content is intentionally removed for demo purpose
128
Vincom Plaza Shopping Center
3. Types of real estate
Real estate enterprise analysis
Content is intentionally removed for demo purpose
129
Sai Gon Co.op. Investment and Development Joint Stock Company
3. Types of real estate
Real estate enterprise analysis
Content is intentionally removed for demo purpose
130
TOP REAL ESTATE ENTERPRISES WITH HIGHEST REVENUE 2017
Enterprise Location Tax codeTotal assets
(VND million)
Net revenue
(VND million)
3. Types of real estate
Real estate enterprise analysis
Content is intentionally removed for demo purpose
131
3. Real estate enterprise analysis
Target group of business results
VND million
Source: VIRAC
Net revenue growth, 2016 - 2017
Content is intentionally removed for demo purpose
132
3. Real estate enterprise analysis
Target group of business results
Source: VIRAC
VND
million
Gross profit growth, 2017
Content is intentionally removed for demo purpose
133
3. Real estate enterprise analysis
Target group of business results
Source: VIRAC
Liquidity ratio, 2017
Content is intentionally removed for demo purpose
134
3. Real estate enterprise analysis
Target group of business results
Source: VIRAC
Receivable turnover, 2016 - 2017
Content is intentionally removed for demo purpose
135
3. Real estate enterprise analysis
Financial indicators
Source: VIRAC
Solvency. 2017
Content is intentionally removed for demo purpose
136
Source: VIRAC
Source: VIRAC
Asset turnover ratio, 2017
Fixed asset turnover, 2017
Content is intentionally removed for demo purpose
3. Real estate enterprise analysis
Financial indicators
137
Source: VIRAC
Source: VIRAC
Enterprise management expenses/ Net revenue, 2016 - 2017
Interest Expense/Net revenue, 2016 - 2017
Content is intentionally removed for demo purpose
3. Real estate enterprise analysis
Financial indicators
138
Source: VIRAC
Sale expenses/ Net revenue, 2016 - 2017
Content is intentionally removed for demo purpose
3. Real estate enterprise analysis
Financial indicators
139
Source: VIRAC
Profit ratio , 2017
Content is intentionally removed for demo purpose
3. Real estate enterprise analysis
Financial indicators
140
3. Real estate enterprise analysis
Retail enterprises
Source: VIRAC
Distribution of supermarkets in Vietnam, by region,
2017
Content is intentionally removed for demo purposeRetail market share in Vietnam, 2016
Source: VIRAC
141
5. Appendix
Content
142
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
Appendix
Financial statements
Vingroup
Content is intentionally removed for demo purpose
143
No-Va Real Estate Investment Corporation
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
Content is intentionally removed for demo purpose
144
FLC Group
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND million 2016 2017
I. Cash flow from business activities
Depreciation of fixed assets
Unrealized foreign exchange gain/loss
Net cash flows from operating activities
II. Cash flow from investment activities
Spending on procurement, construction of fixed assets and other
non-current assets
Net cash flows from investing activities
III. Cash flow from financial activities
Net cash flows from financing activities
Effect of exchange rate difference in foreign currency
Net cash flows during the year
Content is intentionally removed for demo purpose
145
Khang Dien Housing Investment & Trading JSC
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
STATEMENTS OF CASH FLOWS
Unit: VND million 2016 2017
I. Cash flow from business activities
Depreciation of fixed assets
Unrealized foreign exchange gain/loss
Net cash flows from operating activities
II. Cash flow from investment activities
Spending on procurement, construction of fixed assets and other
non-current assets
Net cash flows from investing activities
III. Cash flow from financial activities
Net cash flows from financing activities
Effect of exchange rate difference in foreign currency
Net cash flows during the year
Content is intentionally removed for demo purpose
146
Nam Long Investment JSC
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
Content is intentionally removed for demo purpose
147
Dat Xanh Real Estate Service & Construction JSC
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
Content is intentionally removed for demo purpose
148
Kinh Bac City Development Share Holding Corporation
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
Content is intentionally removed for demo purpose
149
Quoc Cuong Gia Lai Joint Stock Company
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
Content is intentionally removed for demo purpose
150
Phat Dat Real Estate Development JSC
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
Content is intentionally removed for demo purpose
151
Binh Duong Construction and Development JSC
Appendix
Financial statements
BALANCE SHEET
Unit: VND million 2016 2017
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term financial investments
III. Short-term receivables
1. Customer receivables
IV. Inventory
B. NON-CURRENT ASSETS
TOTAL ASSETS
A. LIABILITIES
I. Short-term debt
1. Short-term debt and loan
2. Taxes and amounts payable to the state
II. Long-term debt
1. Long-term debt and loan
2. Long-term provisions
B. EQUITY
TOTAL SOURCES
REPORT ON BUSINESS RESULTS
Unit: VND million 2016 2017
Net revenue
Cost of goods sold
Gross profit
Financial income
Financial expenses
Interest expenses
Selling expenses
General and administrative expenses
Net profit from business activities
Gross accounting profit before tax
Current corporate income tax expense
Deferred corporate income tax expenses
Profit after tax
Content is intentionally removed for demo purpose
REPORT DISCLAIMER
REPORT DISCLAIMER
This document has been prepared in good faith on the basis of information available at the date of publication without any
independent verification. VIRAC has produced this report for private circulation to professional clients only. All information and
statistical data herein have been obtained from sources we believe to be reliable and made to ensure the accuracy of the contents of
the pages of the report at the time of preparation. Such information has not been independently verified and VIRAC makes no
representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and
materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use.
You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it
outside your organisation, or place it on a website for public access without the express written permission of VIRAC.
SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US:
VIETNAM INDUSTRY RESEARCH AND CONSULTANCY (VIRAC JSC.,)
6th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam
Website: http://virac.com.vn/
Email: [email protected] | Tel: +84 463289520
Thank you !