SINGAPORE developer GuocoLand Group yesterday broke ground on its maiden development in Vietnam - The Canary - and says it is already on the lookout for further development sites.
The US$58 million (S$84 million) investment in The Canary reflects a high level of investor confidence in Vietnam’s booming economy, said a Singapore agency official at the ground-breaking ceremony yesterday.
The 17.5ha development will boast residential, commercial, hotel and educational facilities. It is the first integrated project to be built by a foreign investor in Vietnam, outside the commercial centre Ho Chi Minh City and the capital Hanoi.
It is being built in affluent Binh Duong province, 17km north of Ho Chi Minh City, near the Vietnam- Singapore Industrial Park (VSIP).
The flagship industrial zone was started in 1996 by a consortium of five Singapore firms led by SembCorp Parks, in a venture with Vietnamese state-owned Becamex IDC.
With a gross floor area of 290,000 sq m, The Canary is expected to yield 1,200 homes, in addition to a shopping mall with 85,000 sq m of retail space, a hotel, an international school and a sports complex. Homes will also face the popular 27-hole Song Be golf course.
Centre director Chiong Woan Shin of IE Singapore’s Ho Chi Minh City office told The Straits Times that the project reflects the level of confidence of Singapore companies.
Construction of the residential area’s first phase is under way and due for completion in 2009.
The two- to four-bedroom apartments, ranging from 85 sq m to 160 sq m, will be targeted at locals and expatriates alike, said Mr Lawrence Peh, general manager of Guoco- Land Vietnam.
GuocoLand’s international investment general manager Ho Sing added that the group is looking for more locations in Vietnam for further projects.
CBRE Vietnam’s managing director, Mr Marc Townsend, said he expected the project to be well-received. ‘With so many people working at the VSIP, it will be time- and cost-efficient to live there,’ he said.
The project will be launched for sale next year. He estimates that the homes will be priced at a premium above US$800 per sq m, or S$108 per sq ft - a price fetched by a residential project nearby.
IE Singapore’s Ms Chiong added that more Singapore companies were venturing into Vietnam.
But fast-rising home prices are also proving to be the bane of ordinary Vietnamese and even some expatriates. This is exacerbated by speculators flipping properties for a quick profit.
Property prices have jumped 50 per cent in Vietnam since the start of this year, and in Hanoi and Ho Chi Minh City, they have tripled.
The result is that owning homes in the cities is far beyond the means of most ordinary Vietnamese. The issue is a hot topic in the country’s legislature.
Source : Straits Times - 21 Nov 2007
Showing posts with label Vietnam. Show all posts
Showing posts with label Vietnam. Show all posts
Monday, November 26, 2007
Friday, October 26, 2007
Vietnam is drafting a real estate ownership tax law to curb skyrocketing property prices and speculation amid scenes of people queuing overnight
Vietnam is drafting a real estate ownership tax law to curb skyrocketing property prices and speculation amid scenes of people queuing overnight to join lotteries for apartments, property dealers said.
They said overall property prices have gone up about 50 per cent since the beginning of the year, mainly because investors diverted money from the stock market into property.
Speculation in land and equities in the emerging-market economy is becoming a concern for policy-makers and economists who want to avoid market bubbles and sustain Vietnam’s high growth rates for years to come.
‘In some areas in Hanoi and Ho Chi Minh City, especially in the luxury condominium sector, prices have tripled in the past year alone,’ Nguyen Xuan Dao, chief executive of property developer Vietnam Property Inc, said.
Dealers said most condominium projects in Hanoi and Ho Chi Minh City are sold out before they are even built.
Mr Dao said a 150- square-metre condominium in Hanoi’s Ciputra City, a development by Indonesian developer PT Ciputra Development Tbk, now sells for about US$240,000, compared with about US$80,000 last summer.
This in a country where the GDP annual per capita income is about US$835 this year, although economists believe it is five or six times higher in Hanoi and Ho Chi Minh City.
Property dealers said that according to the draft law, owners who have more than one home would be subject to annual real estate taxes. The law would come into effect in 2010.
Only transfer taxes are now levied on property sales and most transactions are paid in cash, making it difficult for the authorities to track them and collect taxes on capital gains.
Property dealers said that a government plan announced in July to allow Vietnamese living overseas and expatriates to own real estate on a freehold basis had also triggered speculators to buy more property for future re-sale.
‘Most people buy to re-sell and the people who really need a place to live cannot afford the price,’ said Tran Du Lich, director of Ho Chi Minh City Economic Institute.
In Ho Chi Minh City, where most overseas Vietnamese from the United States and Europe choose to resettle, prices have soared between 60 and 100 per cent.
A square metre at luxury project The Lancaster in the heart of business district 1 jumped from about US$3,000 last year to US$4,200 this month. Rents for luxury apartments are up by 20 per cent to about US$35-US$38 per sq m, property management firm CBRE Richard Ellis said.
Last week, hundreds of buyers camped overnight outside the sales office of Singapore’s CapitaLand, to pay deposits for The Vista project on the Saigon River with prices starting at about US$200,000 each.
Other developers, including Taiwanese developer Phu My Hung, asked prospective buyers to pay US$12,000 to participate in a lottery in which only 35 per cent would win the right to buy its apartments. — Reuters
Source : Business Times - 25 Oct 2007
They said overall property prices have gone up about 50 per cent since the beginning of the year, mainly because investors diverted money from the stock market into property.
Speculation in land and equities in the emerging-market economy is becoming a concern for policy-makers and economists who want to avoid market bubbles and sustain Vietnam’s high growth rates for years to come.
‘In some areas in Hanoi and Ho Chi Minh City, especially in the luxury condominium sector, prices have tripled in the past year alone,’ Nguyen Xuan Dao, chief executive of property developer Vietnam Property Inc, said.
Dealers said most condominium projects in Hanoi and Ho Chi Minh City are sold out before they are even built.
Mr Dao said a 150- square-metre condominium in Hanoi’s Ciputra City, a development by Indonesian developer PT Ciputra Development Tbk, now sells for about US$240,000, compared with about US$80,000 last summer.
This in a country where the GDP annual per capita income is about US$835 this year, although economists believe it is five or six times higher in Hanoi and Ho Chi Minh City.
Property dealers said that according to the draft law, owners who have more than one home would be subject to annual real estate taxes. The law would come into effect in 2010.
Only transfer taxes are now levied on property sales and most transactions are paid in cash, making it difficult for the authorities to track them and collect taxes on capital gains.
Property dealers said that a government plan announced in July to allow Vietnamese living overseas and expatriates to own real estate on a freehold basis had also triggered speculators to buy more property for future re-sale.
‘Most people buy to re-sell and the people who really need a place to live cannot afford the price,’ said Tran Du Lich, director of Ho Chi Minh City Economic Institute.
In Ho Chi Minh City, where most overseas Vietnamese from the United States and Europe choose to resettle, prices have soared between 60 and 100 per cent.
A square metre at luxury project The Lancaster in the heart of business district 1 jumped from about US$3,000 last year to US$4,200 this month. Rents for luxury apartments are up by 20 per cent to about US$35-US$38 per sq m, property management firm CBRE Richard Ellis said.
Last week, hundreds of buyers camped overnight outside the sales office of Singapore’s CapitaLand, to pay deposits for The Vista project on the Saigon River with prices starting at about US$200,000 each.
Other developers, including Taiwanese developer Phu My Hung, asked prospective buyers to pay US$12,000 to participate in a lottery in which only 35 per cent would win the right to buy its apartments. — Reuters
Source : Business Times - 25 Oct 2007
Friday, September 28, 2007
VIETNAM, on the back of strong economic growth in recent years, has been attracting record levels of foreign direct investment (FDI) through 2006 and
While its cost competitiveness in manufacturing is drawing in foreign investment, JUSTIN KEAN and ANDREW BROWN look at how Vietnam can boost its attractiveness to move up the value chain
VIETNAM, on the back of strong economic growth in recent years, has been attracting record levels of foreign direct investment (FDI) through 2006 and 2007.
Its entry into the World Trade Organisation and continued government commitment to deregulation has encouraged more foreign firms to invest and operate there. The effect of the accession has resulted in robust demand for office, retail and industrial space.
The question remains, however, whether this is part of an overall strategy by multinational firms to diversify out of existing markets or simply a labour arbitrage, with firms looking for the next low-cost location? Also, why are international firms choosing Vietnam over other low-cost locations in Asia?
There has been much discussion about the ‘China Plus 1′ scenario. At first glance, the logic seems clear. A firm operating in China becomes over-dependent on a single country and looks to diversify. This seems to be the case with Japanese garment manufacturer Uniqlo Co. Previously, the firm was producing 90 per cent of its garments in China. Now, this has been reduced to some 70 per cent. There is an intention to have 30 per cent of production in South-east Asia by 2009. However, although there is an advantage in the resulting diversification, this is often not a key driver.
Anecdotal evidence suggests that this need to expand to cheaper locations is one of the main drivers behind Vietnam’s FDI flows. Taiwanese investment into China, for example, has been trending down for some time, as has Singaporean investment. Firms, therefore, are not exactly pulling out of China. Instead, they are expanding elsewhere. The Taiwanese motorcycle firm Kymco, for example, owns assembly lines in China and Indonesia and is turning next to Vietnam; its rival, San Yang, decided on Indonesia.
Seoul-based Kookmin Bank, which during the 1990s assisted many Korean firms in establishing operations in the Pearl River Delta, is now seeing third- and fourth-generation operational expansions focusing on Vietnam.
The driving factor appears to be cost. It is well-known that the operational costs in China’s east coast cities have increased significantly in recent years. Producers there, many of whom have eagerly invested in China through the 1990s and 2000s, are looking to expand. However, the super profits that were previously readily available in China’s special economic zones no longer exist, with rising wages and rising land prices eating into margins.
When margins are eroded, producers are largely faced with two choices: move to China’s hinterland to access lower wages but place a logistical hurdle between them and their traditional port-based distribution channels. Or set up the next stage of their operations in another low-cost location.
When we look at FDI into Vietnam by sector type, we can see that much of it has been invested to take advantage of the cost arbitrage opportunity that is offered by Vietnam’s low-cost base.
As at end 2006, 68.7 per cent of all investment in Vietnam was in the industrial sector. This is typically the sector where investment decisions are most sensitive to labour rates and set-up costs. Of that industrial investment, only 17.1 per cent found its way into the light industrial sector, which is typically where the most tangible value-add can come from.
FDI into other key value-creating sectors, such as banking and finance, hotel and tourism, and transport and telecom, has remained in single digits in terms of portions of total FDI.
Vietnam clearly has a role to play in the roll-out strategies of MNCs investing in the Asia-Pacific region.
We need to ask, however, for what functions and business processes is Vietnam a favoured location, and for which activity is it still likely to take some time before Vietnam becomes a suitable choice?
Analysis undertaken around this topic shows that Vietnam is ideally suited to low-cost manufacturing where the key components are labour costs and availability. When MNCs look to move up the value chain by undertaking more complex activities, especially ones that rely on high-quality human capital, Vietnam falls behind its competitors in the region.
That is not to say that MNCs have not been able to establish value add production facilities in the country. In fact, there are several case studies of firms that have taken highly complex processes to Vietnam. However, we note that in doing so, there has been considerable work involved in training local workers and bringing suppliers and real estate providers up to speed so that they deliver at the service level required.
In addition to the evolution of a skilled workforce, education of suppliers and development of supply chains in Vietnam, there are other areas that will need improvement. Significant work remains before there is an improvement in English penetration, tertiary qualification levels, the rule of law, security of private real estate ownership and deregulation of Vietnam’s commerce - especially in the areas of banking and finance.
Some progress has, of course, already been made. However, more needs to be done. As our experience in China proved, eventually wage rates will rise and MNCs will look to relocate. In China, however, as low-cost manufacturers have looked elsewhere to produce, constant investment in both hard and soft infrastructure has meant the country continues to be an attractive location.
Research and development, high-technology manufacturing and pharmaceuticals continue to see significant inflows of investment, even as foreign interests look elsewhere to make a quick dollar. That’s a lesson Vietnam seems ready to learn.
Justin Kean is associate director of Asia-Pacific occupier research, Jones Lang LaSalle; Andrew Brown is managing director,Jones Lang LaSalle Vietnam
Source : Business Times - 27 Sep 2007
VIETNAM, on the back of strong economic growth in recent years, has been attracting record levels of foreign direct investment (FDI) through 2006 and 2007.
Its entry into the World Trade Organisation and continued government commitment to deregulation has encouraged more foreign firms to invest and operate there. The effect of the accession has resulted in robust demand for office, retail and industrial space.
The question remains, however, whether this is part of an overall strategy by multinational firms to diversify out of existing markets or simply a labour arbitrage, with firms looking for the next low-cost location? Also, why are international firms choosing Vietnam over other low-cost locations in Asia?
There has been much discussion about the ‘China Plus 1′ scenario. At first glance, the logic seems clear. A firm operating in China becomes over-dependent on a single country and looks to diversify. This seems to be the case with Japanese garment manufacturer Uniqlo Co. Previously, the firm was producing 90 per cent of its garments in China. Now, this has been reduced to some 70 per cent. There is an intention to have 30 per cent of production in South-east Asia by 2009. However, although there is an advantage in the resulting diversification, this is often not a key driver.
Anecdotal evidence suggests that this need to expand to cheaper locations is one of the main drivers behind Vietnam’s FDI flows. Taiwanese investment into China, for example, has been trending down for some time, as has Singaporean investment. Firms, therefore, are not exactly pulling out of China. Instead, they are expanding elsewhere. The Taiwanese motorcycle firm Kymco, for example, owns assembly lines in China and Indonesia and is turning next to Vietnam; its rival, San Yang, decided on Indonesia.
Seoul-based Kookmin Bank, which during the 1990s assisted many Korean firms in establishing operations in the Pearl River Delta, is now seeing third- and fourth-generation operational expansions focusing on Vietnam.
The driving factor appears to be cost. It is well-known that the operational costs in China’s east coast cities have increased significantly in recent years. Producers there, many of whom have eagerly invested in China through the 1990s and 2000s, are looking to expand. However, the super profits that were previously readily available in China’s special economic zones no longer exist, with rising wages and rising land prices eating into margins.
When margins are eroded, producers are largely faced with two choices: move to China’s hinterland to access lower wages but place a logistical hurdle between them and their traditional port-based distribution channels. Or set up the next stage of their operations in another low-cost location.
When we look at FDI into Vietnam by sector type, we can see that much of it has been invested to take advantage of the cost arbitrage opportunity that is offered by Vietnam’s low-cost base.
As at end 2006, 68.7 per cent of all investment in Vietnam was in the industrial sector. This is typically the sector where investment decisions are most sensitive to labour rates and set-up costs. Of that industrial investment, only 17.1 per cent found its way into the light industrial sector, which is typically where the most tangible value-add can come from.
FDI into other key value-creating sectors, such as banking and finance, hotel and tourism, and transport and telecom, has remained in single digits in terms of portions of total FDI.
Vietnam clearly has a role to play in the roll-out strategies of MNCs investing in the Asia-Pacific region.
We need to ask, however, for what functions and business processes is Vietnam a favoured location, and for which activity is it still likely to take some time before Vietnam becomes a suitable choice?
Analysis undertaken around this topic shows that Vietnam is ideally suited to low-cost manufacturing where the key components are labour costs and availability. When MNCs look to move up the value chain by undertaking more complex activities, especially ones that rely on high-quality human capital, Vietnam falls behind its competitors in the region.
That is not to say that MNCs have not been able to establish value add production facilities in the country. In fact, there are several case studies of firms that have taken highly complex processes to Vietnam. However, we note that in doing so, there has been considerable work involved in training local workers and bringing suppliers and real estate providers up to speed so that they deliver at the service level required.
In addition to the evolution of a skilled workforce, education of suppliers and development of supply chains in Vietnam, there are other areas that will need improvement. Significant work remains before there is an improvement in English penetration, tertiary qualification levels, the rule of law, security of private real estate ownership and deregulation of Vietnam’s commerce - especially in the areas of banking and finance.
Some progress has, of course, already been made. However, more needs to be done. As our experience in China proved, eventually wage rates will rise and MNCs will look to relocate. In China, however, as low-cost manufacturers have looked elsewhere to produce, constant investment in both hard and soft infrastructure has meant the country continues to be an attractive location.
Research and development, high-technology manufacturing and pharmaceuticals continue to see significant inflows of investment, even as foreign interests look elsewhere to make a quick dollar. That’s a lesson Vietnam seems ready to learn.
Justin Kean is associate director of Asia-Pacific occupier research, Jones Lang LaSalle; Andrew Brown is managing director,Jones Lang LaSalle Vietnam
Source : Business Times - 27 Sep 2007
Friday, September 7, 2007
Investment in Vietnam complex by US
Investment in Vietnam complex by US
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Vietnam´s President Nguyen Minh Triet has applauded a plan by the Gillmann Group, Fidelity Ventures and partners from the US to invest in a US$5 billion recreational complex in southern Ba Ria-Vung Tau Province.
While receiving Gillmann Group CEO Fred Gillmann, Fidelity Ventures President and Director Xuan Vu (Peter) Nguyen and partner representatives here yesterday, President Triet said Vietnam has spared no efforts to improve its investment environment as it looks to attract more foreign investment to the countrys already significant economic progress.
"An increasing number of foreign investors have flocked to Vietnam in the recent past, creating an impetus for the investors themselves as well as their Vietnamese partners," he
said.
The State leader also pointed to Vietnam´s accession to the World Trade Organisation (WTO) as another advantage for foreign investors and hoped that Gillmann Group and Fidelity Ventures would be successful in Vietnam.
The two guests briefed President Triet of their ambitious plan, saying Vietnam possesses wonderful beaches where resorts and recreational centres should be built to bring in more foreign holidaymakers.
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Vietnam´s President Nguyen Minh Triet has applauded a plan by the Gillmann Group, Fidelity Ventures and partners from the US to invest in a US$5 billion recreational complex in southern Ba Ria-Vung Tau Province.
While receiving Gillmann Group CEO Fred Gillmann, Fidelity Ventures President and Director Xuan Vu (Peter) Nguyen and partner representatives here yesterday, President Triet said Vietnam has spared no efforts to improve its investment environment as it looks to attract more foreign investment to the countrys already significant economic progress.
"An increasing number of foreign investors have flocked to Vietnam in the recent past, creating an impetus for the investors themselves as well as their Vietnamese partners," he
said.
The State leader also pointed to Vietnam´s accession to the World Trade Organisation (WTO) as another advantage for foreign investors and hoped that Gillmann Group and Fidelity Ventures would be successful in Vietnam.
The two guests briefed President Triet of their ambitious plan, saying Vietnam possesses wonderful beaches where resorts and recreational centres should be built to bring in more foreign holidaymakers.
Saturday, September 1, 2007
Gamuda vying for big name in Vietnam
Gamuda vying for big name in Vietnam
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By ANGIE NG
GAMUDA Bhd, which has made a name for itself in various infrastructure projects in Malaysia, the Middle East and Indo-China, is keen to make inroads in the booming construction, property and infrastructure markets in the region.
The group has set its sights on potential markets such as Vietnam and the Middle East.
Gamuda is actively pursuing RM15bil worth of new jobs locally and in other countries and the group is confident of clinching a few billion ringgit of new contracts by the end of the year.
Group managing director Datuk Lin Yun Ling is bullish on Gamuda's foray in Vietnam.
Datuk Lin Yun Ling
“We want to channel our expertise in building large infrastructure and property projects to other developing countries.
“We see our involvement in our maiden project in Hanoi as the start of our long-term participation in Vietnam's growth,” Lin told StarBiz.
Gamuda has teamed up with the Hanoi People's Committee to undertake the Yen So Park integrated development on 500 acres in the south of Hanoi.
Lin said the Vietnam project would provide “two bites of the cherry” for Gamuda – the construction bite was worth RM1.5bil in the first three years while the development portion of RM8bil would be over the next eight years.
The whole project involves setting up sewerage facilities, cleaning up the Yen So lake system, building a world-class public park and other supporting infrastructure costing RM1.5bil in exchange for the 500 acres of land for property development.
The Yen So Park project, which is Gamuda's first in Vietnam, is a prelude to more things to come for Gamuda in the country.
“Vietnam is short of roads, water, power, bridges and sewerage facilities. We believe that once Gamuda delivers the first three construction jobs – park development, relocation of electrical transmission towers and sewerage treatment works in Hanoi – there will be a platform for us to clinch other projects,” Lin told StarBiz.
Construction of the sewerage and park facilities would begin soon while property launches are expected from early next year.
The 500-acre site will be transformed into a new fully integrated central business district in Hanoi comprising high-rise office towers, 4- and 5-star international hotels, a convention centre, shop offices and residential components within a lake and park setting.
“It is like a big blank canvas for us to paint on – we will be creative and design products that will add value to the place.
“Our property development project will transform South Hanoi into a vibrant and modern hub, with clean and pristine lakefronts and lush green parks. It will also help to develop the neighbouring Hoang Mai and Thanh Tri districts,” Lin said.
The priority is to build up the park and the lake to attract attention to the place. The new park will be ready by 2010, in time for Hanoi's centennial celebrations.
“We expect Vietnam's tourism sector to take off strongly and there is a need for more international standard products and destinations. In this context, Yen So Park is a most timely project to add value to the country's tourism landscape,” Lin said.
He said the main challenge in pursuing more property projects in Vietnam was to locate the right land and partners as foreigners were not allowed to buy land for development but could lease the land user rights from state organisations with an average limited holding of 50 years.
Another way is to form a Vietnamese partnership in which a business partner contributes the land rights as a form of capital to the joint-venture company.
An analyst with a local brokerage said Gamuda might participate in two to three more property ventures collectively worth around RM6bil in gross development value in Ho Chi Minh.
“The next exciting project could be a new development in Long An that could generate a gross development value (GDV) of RM5bil,” he added.
Besides Vietnam, Gamuda has been pre-qualified for RM5bil worth of jobs in the Middle East.
In Qatar and Bahrain, it has an outstanding construction order book of RM1.6bil while contracts in Laos and Vietnam are worth RM3.4bil. In Malaysia, it also has projects in hand worth RM6bil.
Currently, it is constructing the RM1.8bil New Doha International Airport and the RM770mil Dukhan Highway in Qatar. It has commenced works on the RM640mill New Sitra Causeway bridges in Bahrain and started preliminary works for the RM1.9bil Nam Theun 1 hydropower project in Laos.
With the increasing number of overseas projects, Gamuda can look forward to strong double-digit earnings growth in the coming years.
Analysts said the inclusion of the RM1.5bil new infrastructure jobs from Vietnam has raised Gamuda’s current outstanding order book of RM9.7bil to RM11.2bil – the highest in the local construction sector.
Meanwhile, the RM8bil GDV from the development of Yen So Park would provide a new stream of property earnings for Gamuda over, at least, the next five years.
Digg this story Add to your del.icio.us account
By ANGIE NG
GAMUDA Bhd, which has made a name for itself in various infrastructure projects in Malaysia, the Middle East and Indo-China, is keen to make inroads in the booming construction, property and infrastructure markets in the region.
The group has set its sights on potential markets such as Vietnam and the Middle East.
Gamuda is actively pursuing RM15bil worth of new jobs locally and in other countries and the group is confident of clinching a few billion ringgit of new contracts by the end of the year.
Group managing director Datuk Lin Yun Ling is bullish on Gamuda's foray in Vietnam.
Datuk Lin Yun Ling
“We want to channel our expertise in building large infrastructure and property projects to other developing countries.
“We see our involvement in our maiden project in Hanoi as the start of our long-term participation in Vietnam's growth,” Lin told StarBiz.
Gamuda has teamed up with the Hanoi People's Committee to undertake the Yen So Park integrated development on 500 acres in the south of Hanoi.
Lin said the Vietnam project would provide “two bites of the cherry” for Gamuda – the construction bite was worth RM1.5bil in the first three years while the development portion of RM8bil would be over the next eight years.
The whole project involves setting up sewerage facilities, cleaning up the Yen So lake system, building a world-class public park and other supporting infrastructure costing RM1.5bil in exchange for the 500 acres of land for property development.
The Yen So Park project, which is Gamuda's first in Vietnam, is a prelude to more things to come for Gamuda in the country.
“Vietnam is short of roads, water, power, bridges and sewerage facilities. We believe that once Gamuda delivers the first three construction jobs – park development, relocation of electrical transmission towers and sewerage treatment works in Hanoi – there will be a platform for us to clinch other projects,” Lin told StarBiz.
Construction of the sewerage and park facilities would begin soon while property launches are expected from early next year.
The 500-acre site will be transformed into a new fully integrated central business district in Hanoi comprising high-rise office towers, 4- and 5-star international hotels, a convention centre, shop offices and residential components within a lake and park setting.
“It is like a big blank canvas for us to paint on – we will be creative and design products that will add value to the place.
“Our property development project will transform South Hanoi into a vibrant and modern hub, with clean and pristine lakefronts and lush green parks. It will also help to develop the neighbouring Hoang Mai and Thanh Tri districts,” Lin said.
The priority is to build up the park and the lake to attract attention to the place. The new park will be ready by 2010, in time for Hanoi's centennial celebrations.
“We expect Vietnam's tourism sector to take off strongly and there is a need for more international standard products and destinations. In this context, Yen So Park is a most timely project to add value to the country's tourism landscape,” Lin said.
He said the main challenge in pursuing more property projects in Vietnam was to locate the right land and partners as foreigners were not allowed to buy land for development but could lease the land user rights from state organisations with an average limited holding of 50 years.
Another way is to form a Vietnamese partnership in which a business partner contributes the land rights as a form of capital to the joint-venture company.
An analyst with a local brokerage said Gamuda might participate in two to three more property ventures collectively worth around RM6bil in gross development value in Ho Chi Minh.
“The next exciting project could be a new development in Long An that could generate a gross development value (GDV) of RM5bil,” he added.
Besides Vietnam, Gamuda has been pre-qualified for RM5bil worth of jobs in the Middle East.
In Qatar and Bahrain, it has an outstanding construction order book of RM1.6bil while contracts in Laos and Vietnam are worth RM3.4bil. In Malaysia, it also has projects in hand worth RM6bil.
Currently, it is constructing the RM1.8bil New Doha International Airport and the RM770mil Dukhan Highway in Qatar. It has commenced works on the RM640mill New Sitra Causeway bridges in Bahrain and started preliminary works for the RM1.9bil Nam Theun 1 hydropower project in Laos.
With the increasing number of overseas projects, Gamuda can look forward to strong double-digit earnings growth in the coming years.
Analysts said the inclusion of the RM1.5bil new infrastructure jobs from Vietnam has raised Gamuda’s current outstanding order book of RM9.7bil to RM11.2bil – the highest in the local construction sector.
Meanwhile, the RM8bil GDV from the development of Yen So Park would provide a new stream of property earnings for Gamuda over, at least, the next five years.
Opportunities abound for foreign investors
Opportunities abound for foreign investors
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VIETNAM has become a magnet for many foreign investors keen to partake in its booming economic growth. From the construction firms to property developers and service industry players, opportunities abound for those looking to get on the “Vietnam economic bandwagon”.
Its membership in the World Trade Organisation on Jan 11 certainly bolstered its standing and marketability in the international arena and the country can look forward to more foreign direct investment (FDI) and expanding trade opportunities.
Vietnam's economy has enjoyed an annual growth of more than 7% since 2001 while its per capita income has doubled to about US$540 in the past decade. Its 8% economic growth last year was the second highest in East Asia, after China, while its annual FDI of over US$10bil, or 4% as a percentage of gross domestic product, is the highest in the region.
The demographics of Vietnam is equally promising – 60% of its population of 86 million are aged 35 and below, and this provides a ready source for the labour and bustling consumer market.
Steven Chu
Foreign investors are encouraged by the continuous improvements they see taking place in the regulatory environment for FDIs.
Gamuda Land Sdn Bhd chief operating officer Steven Chu said although most of the ongoing projects in Vietnam were financed by overseas development assistance facilities, the Vietnamese government was encouraging more private foreign investments.
“It is becoming increasingly easier to do business in Vietnam. In the property sector, we understand the government is looking into more liberalised measures to allow foreign ownership of properties,” he said.
Chu said Gamuda was serious in establishing a long-term business relationship in Vietnam and had set up offices in Hanoi and Ho Chi Minh City.
A significant part of Gamuda's target market for the Yen So Park project in Hanoi will be the expatriate community although they will be on long-term leases since foreigners are not yet allowed to buy property in Vietnam.
Chu said Gamuda would also be targeting the three million Viet Kieu community, or Vietnamese who had fled the country during the Vietnam War and had made good for themselves in their adopted countries, mostly in the US, Europe and Australia. The Viet Kieus are believed to repatriate some US$3bil to US$4bil a year back to Vietnam.
The property sector alone offers immense potential for Malaysian companies to export their expertise.
Rising urbanisation will create a growing demand for companies with expertise in township development and niche lifestyle projects.
The country's growing middle class also means that condominium living and gated and guarded housing will become increasingly popular.
Vietnam faces a severe shortage of quality residential products, Grade A office space, hotel rooms, shop offices and retail centres.
According to international property consultancy Chesterton Petty, the key drivers for the country's real estate market include overseas remittances of US$4bil a year, emerging condominium markets in key cities, conspicuous consumption and changing lifestyles, and the people's lack of access to international real estate investments.
The areas of opportunities include lifestyle residences, condominiums, offices and serviced apartments to cater to an expanding middle class and growing foreign investors and expatriates.
The price of residential properties in Vietnam has escalated to US$1,900 per sq m in Hanoi and US$2,900 in Ho Chi Minh City.
“The average price for luxury apartments is US$1,100 to US$1,900 per sq m and the occupancy rate in serviced apartments has stabilised at around 95%,” Chesterton said in a recent report on Vietnam.
A strong and stable demand for Grade A office space and a limited supply of such property have driven vacancy to less than 1%.
The retail and hotel sectors also offer good growth potential.
Rental for street-front stores in Hanoi are reaching US$120 per sq m with international branded tenants vying for space in high traffic areas.
The largest shopping centre is only 13,000 sq m with rent at US$88 per sq m. Meanwhile, supermarkets are still in short supply. The total retail sales in Vietnam have reached US$20bil last year, a 20.7% increase year-on-year.
Meanwhile, the hotel sector is also seeing much growing potential, going forward. According to the World Travel and Tourism Commission, Vietnam ranks fourth among the top 10 global tourist destinations and the number of tourists is expected to reach 25 million by 2010. – By ANGIE NG
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VIETNAM has become a magnet for many foreign investors keen to partake in its booming economic growth. From the construction firms to property developers and service industry players, opportunities abound for those looking to get on the “Vietnam economic bandwagon”.
Its membership in the World Trade Organisation on Jan 11 certainly bolstered its standing and marketability in the international arena and the country can look forward to more foreign direct investment (FDI) and expanding trade opportunities.
Vietnam's economy has enjoyed an annual growth of more than 7% since 2001 while its per capita income has doubled to about US$540 in the past decade. Its 8% economic growth last year was the second highest in East Asia, after China, while its annual FDI of over US$10bil, or 4% as a percentage of gross domestic product, is the highest in the region.
The demographics of Vietnam is equally promising – 60% of its population of 86 million are aged 35 and below, and this provides a ready source for the labour and bustling consumer market.
Steven Chu
Foreign investors are encouraged by the continuous improvements they see taking place in the regulatory environment for FDIs.
Gamuda Land Sdn Bhd chief operating officer Steven Chu said although most of the ongoing projects in Vietnam were financed by overseas development assistance facilities, the Vietnamese government was encouraging more private foreign investments.
“It is becoming increasingly easier to do business in Vietnam. In the property sector, we understand the government is looking into more liberalised measures to allow foreign ownership of properties,” he said.
Chu said Gamuda was serious in establishing a long-term business relationship in Vietnam and had set up offices in Hanoi and Ho Chi Minh City.
A significant part of Gamuda's target market for the Yen So Park project in Hanoi will be the expatriate community although they will be on long-term leases since foreigners are not yet allowed to buy property in Vietnam.
Chu said Gamuda would also be targeting the three million Viet Kieu community, or Vietnamese who had fled the country during the Vietnam War and had made good for themselves in their adopted countries, mostly in the US, Europe and Australia. The Viet Kieus are believed to repatriate some US$3bil to US$4bil a year back to Vietnam.
The property sector alone offers immense potential for Malaysian companies to export their expertise.
Rising urbanisation will create a growing demand for companies with expertise in township development and niche lifestyle projects.
The country's growing middle class also means that condominium living and gated and guarded housing will become increasingly popular.
Vietnam faces a severe shortage of quality residential products, Grade A office space, hotel rooms, shop offices and retail centres.
According to international property consultancy Chesterton Petty, the key drivers for the country's real estate market include overseas remittances of US$4bil a year, emerging condominium markets in key cities, conspicuous consumption and changing lifestyles, and the people's lack of access to international real estate investments.
The areas of opportunities include lifestyle residences, condominiums, offices and serviced apartments to cater to an expanding middle class and growing foreign investors and expatriates.
The price of residential properties in Vietnam has escalated to US$1,900 per sq m in Hanoi and US$2,900 in Ho Chi Minh City.
“The average price for luxury apartments is US$1,100 to US$1,900 per sq m and the occupancy rate in serviced apartments has stabilised at around 95%,” Chesterton said in a recent report on Vietnam.
A strong and stable demand for Grade A office space and a limited supply of such property have driven vacancy to less than 1%.
The retail and hotel sectors also offer good growth potential.
Rental for street-front stores in Hanoi are reaching US$120 per sq m with international branded tenants vying for space in high traffic areas.
The largest shopping centre is only 13,000 sq m with rent at US$88 per sq m. Meanwhile, supermarkets are still in short supply. The total retail sales in Vietnam have reached US$20bil last year, a 20.7% increase year-on-year.
Meanwhile, the hotel sector is also seeing much growing potential, going forward. According to the World Travel and Tourism Commission, Vietnam ranks fourth among the top 10 global tourist destinations and the number of tourists is expected to reach 25 million by 2010. – By ANGIE NG
Thursday, August 23, 2007
CAPITALAND has signed a conditional joint venture (JV) agreement with Azure City Co to develop a 1,200-unit high-rise condominium project in Ho Chi Mi
CAPITALAND has signed a conditional joint venture (JV) agreement with Azure City Co to develop a 1,200-unit high-rise condominium project in Ho Chi Minh City, Vietnam.
This brings CapitaLand’s pipeline of residential units in Vietnam to 2,800 homes, after venturing there in 2006.
CapitaLand will take a 75 per cent stake in the JV for $48.8 million.
Azure City Co, a local Vietnamese company involved in infrastructure and property, will hold the remaining 25 per cent.
The site is located in Ho Chi Minh City’s District 9 and CapitaLand said it will develop the project over the next three to four years.
CapitaLand Residential CEO Lui Chong Chee said: ‘With the country’s strong economic growth fuelling rapid urbanisation, we see demand for well-built and well-designed homes rising in both metropolitan cities like Ho Chi Minh City and Hanoi, as well as the other major cities in the country.’
This will be CapitaLand’s fourth residential development in Vietnam.
All four are in Ho Chi Minh City. The first is the 750-unit Vista in District 2 and CapitaLand says that the first phase, which was launched in June, has been fully taken up.
A 600-unit development in District 7 will be launched by end-2007.
CapitaLand also announced earlier this month that it will develop a 300-unit landed-housing develop with Azure City Co.
Source : Business Times - 23 Aug 2007
This brings CapitaLand’s pipeline of residential units in Vietnam to 2,800 homes, after venturing there in 2006.
CapitaLand will take a 75 per cent stake in the JV for $48.8 million.
Azure City Co, a local Vietnamese company involved in infrastructure and property, will hold the remaining 25 per cent.
The site is located in Ho Chi Minh City’s District 9 and CapitaLand said it will develop the project over the next three to four years.
CapitaLand Residential CEO Lui Chong Chee said: ‘With the country’s strong economic growth fuelling rapid urbanisation, we see demand for well-built and well-designed homes rising in both metropolitan cities like Ho Chi Minh City and Hanoi, as well as the other major cities in the country.’
This will be CapitaLand’s fourth residential development in Vietnam.
All four are in Ho Chi Minh City. The first is the 750-unit Vista in District 2 and CapitaLand says that the first phase, which was launched in June, has been fully taken up.
A 600-unit development in District 7 will be launched by end-2007.
CapitaLand also announced earlier this month that it will develop a 300-unit landed-housing develop with Azure City Co.
Source : Business Times - 23 Aug 2007
Thursday, August 16, 2007
Gamuda Bhd plans to build US$964mil (RM3.35bil) worth of projects in Vietnam's capital, a Hanoi government official said.
KUALA LUMPUR: Gamuda Bhd plans to build US$964mil (RM3.35bil) worth of projects in Vietnam's capital, a Hanoi government official said.
The company would build a US$711mil complex on a 327ha site that would include a hotel, convention hall, villas and apartments, as well as a US$253mil water-treatment factory to supply the development, said Trieu Dinh Phuc, director of planning and investments.
Gamuda has asked for an additional 73ha for the 50-year project, according to Phuc.
Asian developers, including SP Setia Bhd, are expanding into Vietnam to benefit from economic growth.
Vietnam's gross domestic product may grow as much as 8.3% this year, outpacing 5.6% expansion in South-East Asian economies, the Asian Development Bank said this month.
The project may more than double Gamuda's sales in Vietnam to RM8bil from RM3.5bil, Danny Goh, a Kuala Lumpur-based analyst at Credit Suisse, said in a report.
“We have turned more bullish on the stock,'' Goh said in the report.
He raised his price estimate on Gamuda to RM10.60 from RM9.50 and kept his “outperform'' rating. – Bloomberg
The company would build a US$711mil complex on a 327ha site that would include a hotel, convention hall, villas and apartments, as well as a US$253mil water-treatment factory to supply the development, said Trieu Dinh Phuc, director of planning and investments.
Gamuda has asked for an additional 73ha for the 50-year project, according to Phuc.
Asian developers, including SP Setia Bhd, are expanding into Vietnam to benefit from economic growth.
Vietnam's gross domestic product may grow as much as 8.3% this year, outpacing 5.6% expansion in South-East Asian economies, the Asian Development Bank said this month.
The project may more than double Gamuda's sales in Vietnam to RM8bil from RM3.5bil, Danny Goh, a Kuala Lumpur-based analyst at Credit Suisse, said in a report.
“We have turned more bullish on the stock,'' Goh said in the report.
He raised his price estimate on Gamuda to RM10.60 from RM9.50 and kept his “outperform'' rating. – Bloomberg
Sunday, August 12, 2007
Singapore’s Vita Holdings plans to build a US$41.5 million hotel in Hanoi in what the company said Friday would be its first large property project
Singapore’s Vita Holdings plans to build a US$41.5 million hotel in Hanoi in what the company said Friday would be its first large property project outside the island.
Construction of the 350-room property is expected to begin in early-2008 and be completed before 2010.
It will have a 65 percent stake in it while its Vietnamese partner, Dai Viet Trading Co, the rest.
Vita will bring in $17 million for the five-star project, and Dai Viet will contribute the land component.
Vita chief executive Loo Woei Harng told Singapore's Business Times that his company had been trying to divest its shipping assets and move into property.
“Shipping is a volatile business,” he said. “We think that in the long-term property is a more stable business.”
The company is converting a former primary school into a high-end boutique hotel in Singapore besides seeking more opportunities in Southeast Asia.
Construction of the 350-room property is expected to begin in early-2008 and be completed before 2010.
It will have a 65 percent stake in it while its Vietnamese partner, Dai Viet Trading Co, the rest.
Vita will bring in $17 million for the five-star project, and Dai Viet will contribute the land component.
Vita chief executive Loo Woei Harng told Singapore's Business Times that his company had been trying to divest its shipping assets and move into property.
“Shipping is a volatile business,” he said. “We think that in the long-term property is a more stable business.”
The company is converting a former primary school into a high-end boutique hotel in Singapore besides seeking more opportunities in Southeast Asia.
Singapore's CapitaLand to invest 47.7 mln sgd in Vietnam jv to develop villas
SINGAPORE (Thomson Financial) - Southeast Asia's biggest property developer CapitaLand said Friday it has, through unit CapitaLand (Vietnam) Holdings, entered into a conditional joint venture agreement with an affiliate of Vietnam's Azure City Co, to develop a residential site in Ho Chi Minh City .
CapitaLand said it will inject 47.7 million Singapore dollars for a 75 percent stake in the joint venture company.
The company intends to build about 300 luxury villas on the 117,200 square meter site to be launched by the third quarter next year.
This will be CapitaLand's third project in Vietnam, and in all it has a pipeline of about 1,600 homes in Ho Chi Minh City, the company said.
CapitaLand said it will inject 47.7 million Singapore dollars for a 75 percent stake in the joint venture company.
The company intends to build about 300 luxury villas on the 117,200 square meter site to be launched by the third quarter next year.
This will be CapitaLand's third project in Vietnam, and in all it has a pipeline of about 1,600 homes in Ho Chi Minh City, the company said.
Wednesday, August 1, 2007
RE funds and stocks for Vietnam
RE funds and stocks for Vietnam
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The London-Headquartered Lion Capital and the Hong Kong-based Grandford International Promotions Ltd. on July 10 signed a business contract to co-establish funds mostly for real estate development and stock exchange.
The potential funds will have a designed capital of $100 million each and also help in State-owned enterprises (SOEs) equitisation and be in support of the private economic sector.
Lion Capital Vietnam Fund General Manager Bui Cong Giang said they are looking for projects on industrial parks in key economic zones, marts, new metropolis in Hanoi and HCM City,
bridges, hotels and resorts.
Lion Capital, which has made investment of 2 billion Euro in companies over Europe, received a licence for securities transaction in Vietnam since late 2006 while GrandFord has had long-time Asian experiences in property development, building over 500 bridges in the continent.
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The London-Headquartered Lion Capital and the Hong Kong-based Grandford International Promotions Ltd. on July 10 signed a business contract to co-establish funds mostly for real estate development and stock exchange.
The potential funds will have a designed capital of $100 million each and also help in State-owned enterprises (SOEs) equitisation and be in support of the private economic sector.
Lion Capital Vietnam Fund General Manager Bui Cong Giang said they are looking for projects on industrial parks in key economic zones, marts, new metropolis in Hanoi and HCM City,
bridges, hotels and resorts.
Lion Capital, which has made investment of 2 billion Euro in companies over Europe, received a licence for securities transaction in Vietnam since late 2006 while GrandFord has had long-time Asian experiences in property development, building over 500 bridges in the continent.
Foreign banks flock to Vietnam
Foreign banks flock to Vietnam
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The fast-growing economy, booming financial and stock markets and the issuance of a number of government policies designed to open up the market are regarded as an ideal context for foreign banks to compete in Vietnam´s market.
HSBC and the Standard Chartered Bank are the two leading foreign banks providing retail banking services including asset management, cash transaction management for small and medium sized enterprises and individual customers.
The two banks are planning to introduce other products such as consumer loans, credit cards, and loans with secured assets to foreign individual customers who are living in Vietnam and Vietnamese high-earners.
The government raising the cap on foreign holdings in a commercial bank from 10% to 15% and possibly 20% if the prime minister approves is another good reason for foreign banks to be more excited about a new field of competition. Still, HSBC is the pioneer, boosting its stake holding in Vietnam´s Techcombank to 15%, bringing HSBC´s total holding value in the domestic bank to US$33.7 million.
"After receiving the approval of the State Bank of Vietnam to increase the holding rate, HSBC will ask for the government´s permission to boost its share holdings in Techcombank to 20% with the aim of expanding its operation in one of the fast-growing economies in Asia," said Vincent Cheng HSBC president.
Along with this move, under Vietnam´s WTO commitments in the banking industry, Vietnam allowed foreign banks to set up 100% foreign-owned subsidiary banks in Vietnam from April 1, 2007. This is also the new motivation for foreign banks to facilitate business plans in Vietnam. There are currently a number of foreign banks that have expressed their interest in establishing 100% foreign-owned banks in Vietnam, of which HSBC is one and promoted this plan earliest.
According to Kieu Huu Dung, head of the SBV´s credit institution and bank department, once operating under the form of 100% foreign banks, these banks will be regarded as Vietnamese entities. With prominent advantages in terms of technology, capital and administration, foreign banks will be able to provide services with higher quality and better risk management. These strengths of foreign banks will also create challenges for domestic banks.
Immediately after April 1, 2007, many local banks prepared for new competition by campaigning for the expansion of the branch network, an increase in chartered capital, renewal of technology and cooperation with strategic partners. A series of domestic banks such as Sacombank, VIBank, HDBank and Agribank have promoted the expansion of branches to take advantage of their customer network nationwide instead of just focusing on urban centres.
The central bank also is developing some state-run banks in line with the model of multifunctional financial group including of banking services, insurance, investment, securities brokering, asset management to improve competitiveness while still meeting all development requirements of the economy.
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The fast-growing economy, booming financial and stock markets and the issuance of a number of government policies designed to open up the market are regarded as an ideal context for foreign banks to compete in Vietnam´s market.
HSBC and the Standard Chartered Bank are the two leading foreign banks providing retail banking services including asset management, cash transaction management for small and medium sized enterprises and individual customers.
The two banks are planning to introduce other products such as consumer loans, credit cards, and loans with secured assets to foreign individual customers who are living in Vietnam and Vietnamese high-earners.
The government raising the cap on foreign holdings in a commercial bank from 10% to 15% and possibly 20% if the prime minister approves is another good reason for foreign banks to be more excited about a new field of competition. Still, HSBC is the pioneer, boosting its stake holding in Vietnam´s Techcombank to 15%, bringing HSBC´s total holding value in the domestic bank to US$33.7 million.
"After receiving the approval of the State Bank of Vietnam to increase the holding rate, HSBC will ask for the government´s permission to boost its share holdings in Techcombank to 20% with the aim of expanding its operation in one of the fast-growing economies in Asia," said Vincent Cheng HSBC president.
Along with this move, under Vietnam´s WTO commitments in the banking industry, Vietnam allowed foreign banks to set up 100% foreign-owned subsidiary banks in Vietnam from April 1, 2007. This is also the new motivation for foreign banks to facilitate business plans in Vietnam. There are currently a number of foreign banks that have expressed their interest in establishing 100% foreign-owned banks in Vietnam, of which HSBC is one and promoted this plan earliest.
According to Kieu Huu Dung, head of the SBV´s credit institution and bank department, once operating under the form of 100% foreign banks, these banks will be regarded as Vietnamese entities. With prominent advantages in terms of technology, capital and administration, foreign banks will be able to provide services with higher quality and better risk management. These strengths of foreign banks will also create challenges for domestic banks.
Immediately after April 1, 2007, many local banks prepared for new competition by campaigning for the expansion of the branch network, an increase in chartered capital, renewal of technology and cooperation with strategic partners. A series of domestic banks such as Sacombank, VIBank, HDBank and Agribank have promoted the expansion of branches to take advantage of their customer network nationwide instead of just focusing on urban centres.
The central bank also is developing some state-run banks in line with the model of multifunctional financial group including of banking services, insurance, investment, securities brokering, asset management to improve competitiveness while still meeting all development requirements of the economy.
Thursday, July 12, 2007
Singapore’s SembCorp Industries said on Monday it has joined a consortium that will invest US$103.7 million over the next five years to develop
Singapore’s SembCorp Industries said on Monday it has joined a consortium that will invest US$103.7 million over the next five years to develop an industrial township in north Vietnam.
SembCorp said it has a 40 per cent stake in the project. Other investors include Singapore industrial landlord, Ascendas, developer United Overseas Land and Japan’s Mitsubishi Corp.
Vietnam’s state-owned Investment & Industrial Development Corp. (Becamex IDC) has a 42-per cent stake in the 700-hectare project, which will have industrial, residential and commercial facilities.
‘The township will be developed in phases in tandem with customer demand, with construction expected to commence in early 2008,’ SembCorp said in a statement.
The consortium will inject US$10.3 million through equity while the rest of the investment sum will be met through debt and internally generated funds, SembCorp said.
Source: The Business Times
SembCorp said it has a 40 per cent stake in the project. Other investors include Singapore industrial landlord, Ascendas, developer United Overseas Land and Japan’s Mitsubishi Corp.
Vietnam’s state-owned Investment & Industrial Development Corp. (Becamex IDC) has a 42-per cent stake in the 700-hectare project, which will have industrial, residential and commercial facilities.
‘The township will be developed in phases in tandem with customer demand, with construction expected to commence in early 2008,’ SembCorp said in a statement.
The consortium will inject US$10.3 million through equity while the rest of the investment sum will be met through debt and internally generated funds, SembCorp said.
Source: The Business Times
Keppel Land will embark on a joint venture to develop a residential township on a 509 hectare site north-east of Ho Chi Minh City (HCMC) in Vietnam.
Keppel Land will embark on a joint venture to develop a residential township on a 509 hectare site north-east of Ho Chi Minh City (HCMC) in Vietnam. The initial stage of development of the site, occupying 193 ha, is estimated to cost over US$357 million and will be undertaken in phases.
Called the Dong Nai Township, this latest project highlights a stepped-up drive to increase Keppel Land’s presence in regional markets. Keppel Land’s director of regional investments, Ang Wee Gee, revealed that overseas profits now account for 64 per cent of Keppel Land’s earnings. He added: ‘We want to do this because we want to broaden our earnings base geographically.’
The new township development of about 14,000 units brings Keppel Land’s pipeline of new homes in township developments across Asia to 65,000 units.
‘Today, with a potential critical mass of some 150.8 million sq ft of gross floor area for the development of townships across the region, our strategy is taking flight. We are confident that our focus and edge in townships will thrust the company into its next phase of regional expansion, and create sustainable streams of income for our shareholders,’ added Mr Ang. It is a strategy that will also help Keppel Land reduce its exposure to any single market. ‘Property markets can be very cyclical,’ he noted.
The joint venture involves Keppel Land subsidiary Portsville Pte Ltd, the Dong Nai General Agricultural Service United Cooperative (DONA Co-op) and Vietcombank Fund Management (VCBF). Portsville will take a 45 per cent stake in the joint venture company amounting to US$32 million. DONA Co-op and VCBF will hold the remaining 55 per cent.
The first phase of Dong Nai Township development is expected to be launched in 2009. It will be Keppel Land’s second township in Vietnam. Its first residential township, Saigon Sports City, is on a 64 ha site in HCMC.
Keppel Land also announced yesterday that it had signed memorandums of understanding (MOUs) to form joint venture companies to develop two residential townships in Hanoi.
One of the proposed joint venture projects is a township development on a 407 ha site in Long Bien District. The other development comprises two parcels totalling 949 ha and is located in the Dong Anh District.
Other smaller smaller projects in Vietnam include a high-end condominium in HCMC called The Estella.
The 101-unit waterfront villa development, Villa Riviera, in HCMC was launched in 2006 and fully sold out at between US$400,000 and US$1.5 million per unit.
For the whole region, Keppel Land says it has 78,500 residential units ready for launch from now to 2009. Ongoing launches include the 12,000-unit Taman Sutera in Johor, Malaysia; and the 5,800-unit Botanica in Chengdu, China. The 3,000-unit Saigon Sports City in HCMC, Vietnam; the 7,000-unit Jakarta Garden City in Indonesia and the 4,700-unit Wuxi Township in Wuxi, China will be launched in the second half of this year.
Source: The Business Times, 11 July 2007
Called the Dong Nai Township, this latest project highlights a stepped-up drive to increase Keppel Land’s presence in regional markets. Keppel Land’s director of regional investments, Ang Wee Gee, revealed that overseas profits now account for 64 per cent of Keppel Land’s earnings. He added: ‘We want to do this because we want to broaden our earnings base geographically.’
The new township development of about 14,000 units brings Keppel Land’s pipeline of new homes in township developments across Asia to 65,000 units.
‘Today, with a potential critical mass of some 150.8 million sq ft of gross floor area for the development of townships across the region, our strategy is taking flight. We are confident that our focus and edge in townships will thrust the company into its next phase of regional expansion, and create sustainable streams of income for our shareholders,’ added Mr Ang. It is a strategy that will also help Keppel Land reduce its exposure to any single market. ‘Property markets can be very cyclical,’ he noted.
The joint venture involves Keppel Land subsidiary Portsville Pte Ltd, the Dong Nai General Agricultural Service United Cooperative (DONA Co-op) and Vietcombank Fund Management (VCBF). Portsville will take a 45 per cent stake in the joint venture company amounting to US$32 million. DONA Co-op and VCBF will hold the remaining 55 per cent.
The first phase of Dong Nai Township development is expected to be launched in 2009. It will be Keppel Land’s second township in Vietnam. Its first residential township, Saigon Sports City, is on a 64 ha site in HCMC.
Keppel Land also announced yesterday that it had signed memorandums of understanding (MOUs) to form joint venture companies to develop two residential townships in Hanoi.
One of the proposed joint venture projects is a township development on a 407 ha site in Long Bien District. The other development comprises two parcels totalling 949 ha and is located in the Dong Anh District.
Other smaller smaller projects in Vietnam include a high-end condominium in HCMC called The Estella.
The 101-unit waterfront villa development, Villa Riviera, in HCMC was launched in 2006 and fully sold out at between US$400,000 and US$1.5 million per unit.
For the whole region, Keppel Land says it has 78,500 residential units ready for launch from now to 2009. Ongoing launches include the 12,000-unit Taman Sutera in Johor, Malaysia; and the 5,800-unit Botanica in Chengdu, China. The 3,000-unit Saigon Sports City in HCMC, Vietnam; the 7,000-unit Jakarta Garden City in Indonesia and the 4,700-unit Wuxi Township in Wuxi, China will be launched in the second half of this year.
Source: The Business Times, 11 July 2007
Monday, July 2, 2007
Local ops to drive SP Setia’s growth
Local ops to drive SP Setia’s growth
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By LEONG HUNG YEE
SP SETIA Bhd's local operations will continue to be the engine of growth for the group over the next few years although the group has ventured into international markets.
Divisional general manager (international business development) Teow Leong Seng said the bulk of the group's revenue would still be derived from its local operations.
“We have just started to enter the overseas market and this will take a while to be reflected in our balance sheet,” he said in a briefing in Ho Chi Minh City.
SP Setia has teamed up with government-linked conglomerate Becamex IDC Corp to develop a RM2.1bil township, EcoLakes at MyPhuoc, in Binh Duong province, 40km north of Ho Chi Minh City.
From left: Housing and Local Government Minister Datuk Seri Ong Ka Ting, Becamex IDC Corp chief executive officer Nguyen Van Hung and Tan Sri Liew Kee Sin looking at the model of EcoLakes at Myphouc in Binh Duong province in Ho Chi Minh City, Vietnam
SP Setia and Becamex IDC signed an agreement last week to set up a joint-venture company, SetiaBecamex Joint Stock Co, to undertake the residential project.
Teow said the group expected the project to start contributing to its bottom line in the next financial year.
The country's biggest property developer with a total market value of over RM6bil intends to seal more deals in Ho Chi Minh as well as make a name for itself in Hanoi, Vietnam.
“We are planning to explore another piece of land about 1,000ha within the Binh Duong province,” Teow said
He added that SP Setia was also exploring opportunities in India, China, the Middle East and Pakistan.
“We are conducting feasibility studies for our ventures overseas. We have been discussing with some potential partners, but it is still at the preliminary stage,” Teow said, adding that the group was always on the lookout for new opportunities.
He explained that SP Setia would probably form joint ventures with strong partners in countries that it intended to penetrate with the group having majority control.
Group managing director and chief executive officer Tan Sri Liew Kee Sin expects the group's overseas revenue to increase tremendously over the next few years.
Liew said the company chose Vietnam for its first overseas project because of the country's strong economic growth, sizeable population and stable socio-political climate.
EcoLakes will feature a wide range of residential properties such as link and semi-detached houses, villas, apartments and condominium units.
“EcoLakes at MyPhuoc, spread over 226ha in the heart of MyPhuoc Industrial Park, is similar to our Setia Eco Park township in Shah Alam. We won the Master Plan category of the Fiabci Prix d’Excellence Awards 2007 for Setia Eco Park two weeks ago.
“We are now bringing this award-winning eco concept to Vietnam,” Liew said, adding that the project was scheduled to be completed within eight years.
According to Teow, the project was expected to start within three to six months or early next year once it received all the necessary approvals.
EcoLakes at MyPhuoc consists of five or six phases with about 10,000 residential units and 80 acres for commercial development.
The township will be surrounded by green lungs such as linear parks, jogging tracks and bicycle paths while the centrepiece of the township would be a man-made beach.
“We are very optimistic that the homes in EcoLakes at MyPhuoc will be much sought after,” Teow said.
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By LEONG HUNG YEE
SP SETIA Bhd's local operations will continue to be the engine of growth for the group over the next few years although the group has ventured into international markets.
Divisional general manager (international business development) Teow Leong Seng said the bulk of the group's revenue would still be derived from its local operations.
“We have just started to enter the overseas market and this will take a while to be reflected in our balance sheet,” he said in a briefing in Ho Chi Minh City.
SP Setia has teamed up with government-linked conglomerate Becamex IDC Corp to develop a RM2.1bil township, EcoLakes at MyPhuoc, in Binh Duong province, 40km north of Ho Chi Minh City.
From left: Housing and Local Government Minister Datuk Seri Ong Ka Ting, Becamex IDC Corp chief executive officer Nguyen Van Hung and Tan Sri Liew Kee Sin looking at the model of EcoLakes at Myphouc in Binh Duong province in Ho Chi Minh City, Vietnam
SP Setia and Becamex IDC signed an agreement last week to set up a joint-venture company, SetiaBecamex Joint Stock Co, to undertake the residential project.
Teow said the group expected the project to start contributing to its bottom line in the next financial year.
The country's biggest property developer with a total market value of over RM6bil intends to seal more deals in Ho Chi Minh as well as make a name for itself in Hanoi, Vietnam.
“We are planning to explore another piece of land about 1,000ha within the Binh Duong province,” Teow said
He added that SP Setia was also exploring opportunities in India, China, the Middle East and Pakistan.
“We are conducting feasibility studies for our ventures overseas. We have been discussing with some potential partners, but it is still at the preliminary stage,” Teow said, adding that the group was always on the lookout for new opportunities.
He explained that SP Setia would probably form joint ventures with strong partners in countries that it intended to penetrate with the group having majority control.
Group managing director and chief executive officer Tan Sri Liew Kee Sin expects the group's overseas revenue to increase tremendously over the next few years.
Liew said the company chose Vietnam for its first overseas project because of the country's strong economic growth, sizeable population and stable socio-political climate.
EcoLakes will feature a wide range of residential properties such as link and semi-detached houses, villas, apartments and condominium units.
“EcoLakes at MyPhuoc, spread over 226ha in the heart of MyPhuoc Industrial Park, is similar to our Setia Eco Park township in Shah Alam. We won the Master Plan category of the Fiabci Prix d’Excellence Awards 2007 for Setia Eco Park two weeks ago.
“We are now bringing this award-winning eco concept to Vietnam,” Liew said, adding that the project was scheduled to be completed within eight years.
According to Teow, the project was expected to start within three to six months or early next year once it received all the necessary approvals.
EcoLakes at MyPhuoc consists of five or six phases with about 10,000 residential units and 80 acres for commercial development.
The township will be surrounded by green lungs such as linear parks, jogging tracks and bicycle paths while the centrepiece of the township would be a man-made beach.
“We are very optimistic that the homes in EcoLakes at MyPhuoc will be much sought after,” Teow said.
Wednesday, June 27, 2007
Vietnam consumer confidence still rising
Vietnam consumer confidence still rising
Vietnam has enjoyed a steady increase in consumer confidence, making its way into the world’s top five markets in the first half this year, a survey by a global marketing information company has found.
A market increasingly in the spotlight, Vietnam registered a confidence index of 118, ACNielsen’s latest Global Consumer Confidence Study said.
The index recorded 116 in the second half of last year.
India again led the world with its latest consumer confidence index reaching 137, followed by Norway (132) and Denmark (127), all of them down by two points from November 2006.
The world’s most pessimistic consumers were from Europe, while South Korea (50), Japan (68), and Taiwan (75) remained at the bottom in Asia.
Globally, Portugal, South Korea, Japan, Taiwan and Hungary were the most pessimistic about the job market, state of their personal finances, and readiness to spend.
ACNielsen’s survey polled over 26,000 internet users in 47 markets in Europe, the Asia-Pacific, North America, and the Middle East about their job prospects, state of finances, and what they do with their spare cash.
Over 500 people aged 15 and above were interviewed in Vietnam.
Vietnam has enjoyed a steady increase in consumer confidence, making its way into the world’s top five markets in the first half this year, a survey by a global marketing information company has found.
A market increasingly in the spotlight, Vietnam registered a confidence index of 118, ACNielsen’s latest Global Consumer Confidence Study said.
The index recorded 116 in the second half of last year.
India again led the world with its latest consumer confidence index reaching 137, followed by Norway (132) and Denmark (127), all of them down by two points from November 2006.
The world’s most pessimistic consumers were from Europe, while South Korea (50), Japan (68), and Taiwan (75) remained at the bottom in Asia.
Globally, Portugal, South Korea, Japan, Taiwan and Hungary were the most pessimistic about the job market, state of their personal finances, and readiness to spend.
ACNielsen’s survey polled over 26,000 internet users in 47 markets in Europe, the Asia-Pacific, North America, and the Middle East about their job prospects, state of finances, and what they do with their spare cash.
Over 500 people aged 15 and above were interviewed in Vietnam.
Malaysia, Vietnam to build $600 mln urban town
Malaysia, Vietnam to build $600 mln urban town
Malaysia's leading real estate group sealed a deal with a large Vietnamese property developer Tuesday to form a joint venture and develop a US$600 million housing project in southern Vietnam.
Following the contract between Malaysia’s SP Setia Bhd. And Vietnam’s Becamex IDC Corp., the new entity – SetiaBecame Joint Stock Company – will build the Eco Lakes My Phuoc housing estate in Binh Duong Province’s My Phuoc Industrial-Urban Park, about 40km away from Ho Chi Minh City.
Covering 226 ha, the town will be home to 200,000 residents and include healthcare facilities, an international school and shopping malls.
Developers also aim to construct a man-made beach in the heart of the town.
The venture expects the town to introduce a new standard and style of living to the local real estate market.
SP Setie is Malaysia’s largest property developer with 24 affiliates in construction, urban development, banking and securities.
The group has engaged in other Binh Duong projects in like the Vietnam-Singapore Industrial Zone, the My Phuoc – Tan Van Highway, and the My Phuoc Industrial-Urban IP.
Vietnam’s real estate market is promising on the back of the country’s remarkable economic growth, higher living standards, positive consumer trends, rapid urbanization and a burgeoning tourism industry, according to the property consulting firms’ research.
The housing saturation in Southeast Asian markets is expected to make Vietnam a lucrative option for regional developers.
Another Malaysian urban developer, Gamuda Group, has recently obtained the nod from the Hanoi municipal government to invest $1 billion in a 323 ha integrated commercial complex.
Construction is set to start by the end of this year for completion in eight years.
It includes a convention center, office towers, international five-star hotels, and luxury properties.
Malaysia's leading real estate group sealed a deal with a large Vietnamese property developer Tuesday to form a joint venture and develop a US$600 million housing project in southern Vietnam.
Following the contract between Malaysia’s SP Setia Bhd. And Vietnam’s Becamex IDC Corp., the new entity – SetiaBecame Joint Stock Company – will build the Eco Lakes My Phuoc housing estate in Binh Duong Province’s My Phuoc Industrial-Urban Park, about 40km away from Ho Chi Minh City.
Covering 226 ha, the town will be home to 200,000 residents and include healthcare facilities, an international school and shopping malls.
Developers also aim to construct a man-made beach in the heart of the town.
The venture expects the town to introduce a new standard and style of living to the local real estate market.
SP Setie is Malaysia’s largest property developer with 24 affiliates in construction, urban development, banking and securities.
The group has engaged in other Binh Duong projects in like the Vietnam-Singapore Industrial Zone, the My Phuoc – Tan Van Highway, and the My Phuoc Industrial-Urban IP.
Vietnam’s real estate market is promising on the back of the country’s remarkable economic growth, higher living standards, positive consumer trends, rapid urbanization and a burgeoning tourism industry, according to the property consulting firms’ research.
The housing saturation in Southeast Asian markets is expected to make Vietnam a lucrative option for regional developers.
Another Malaysian urban developer, Gamuda Group, has recently obtained the nod from the Hanoi municipal government to invest $1 billion in a 323 ha integrated commercial complex.
Construction is set to start by the end of this year for completion in eight years.
It includes a convention center, office towers, international five-star hotels, and luxury properties.
China EnerSave spins off Vietnam engineering arms for S$82 mln
China EnerSave spins off Vietnam engineering arms for S$82 mln
Singapore-listed China EnerSave said Tuesday that it has spun off its 46.6 percent-owned Vietnam engineering arm Amanda for US$53 million through a reverse takeover.
China EnerSave builds and operates renewable energy plants in China.
As part of the deal, Amanda Industries Pte Ltd will be sold to die-cast collectibles maker Creative Master Bermuda, which will issue 381.4 million new shares at S$0.215 each to pay China EnerSave and the other shareholders of Amanda.
China EnerSave said it would own 37.7 percent of the enlarged share capital of Creative Master, which will be renamed Amanda Industries Ltd.
Vietnam-based Amanda Industries Pte. Ltd. makes steel parts and parts of gas turbines used in the energy industry.
Provenance Capital was the financial adviser for the transaction, said China EnerSave.
Source: Reuters
Singapore-listed China EnerSave said Tuesday that it has spun off its 46.6 percent-owned Vietnam engineering arm Amanda for US$53 million through a reverse takeover.
China EnerSave builds and operates renewable energy plants in China.
As part of the deal, Amanda Industries Pte Ltd will be sold to die-cast collectibles maker Creative Master Bermuda, which will issue 381.4 million new shares at S$0.215 each to pay China EnerSave and the other shareholders of Amanda.
China EnerSave said it would own 37.7 percent of the enlarged share capital of Creative Master, which will be renamed Amanda Industries Ltd.
Vietnam-based Amanda Industries Pte. Ltd. makes steel parts and parts of gas turbines used in the energy industry.
Provenance Capital was the financial adviser for the transaction, said China EnerSave.
Source: Reuters
Singapore's Carats in $300 mln RTO with Vietnam developer
Singapore's Carats in $300 mln RTO with Vietnam developer
Singapore-listed Carats Ltd., formerly known as Daka Designs, said Tuesday it has inked a memorandum of intent with Citra International Investment for a reverse takeover offer worth at least US$300 million.
Citra is a developer with projects in Vietnam and Cambodia.
Carats said in a statement it would acquire the entire share capital of City Development Pte Ltd, a unit of Citra and a town developer in Hanoi, Vietnam.
Carats said it would issue new shares at between S$0.07 to S$0.08 each as part of the deal, resulting in a reverse takeover of the firm.
Singapore-listed Carats Ltd., formerly known as Daka Designs, said Tuesday it has inked a memorandum of intent with Citra International Investment for a reverse takeover offer worth at least US$300 million.
Citra is a developer with projects in Vietnam and Cambodia.
Carats said in a statement it would acquire the entire share capital of City Development Pte Ltd, a unit of Citra and a town developer in Hanoi, Vietnam.
Carats said it would issue new shares at between S$0.07 to S$0.08 each as part of the deal, resulting in a reverse takeover of the firm.
Danang’s largest domestic investor puts $180 mln into real estate
Danang’s largest domestic investor puts $180 mln into real estate
A private trading company has signed an initial agreement to pour US$180 million into two real estate projects in Danang city on Vietnam’s central coast.
Under the deal signed earlier this week with the city government, Hoang Anh Gia Lai Corp. plans to invest $150 million to build a waterfront hotel-apartment-office-shopping-complex along the Han River in Hai Chau district.
Work on building the complex is scheduled to start early next year and finish in 2010.
The corporation, headquartered in the Central Highlands province of Gia Lai, will also build an estimated $30 million worth of high-end apartments for sale in Thanh Khe district.
Doan Nguyen Duc, chairman of the corporation, urged the city authorities to speed up site clearance to deliver land to the investor for the construction soon.
Additionally, the company is set to begin work on a $25 million resort project in Ngu Hanh Son District in August.
With the fresh investment, Hoang Anh has become the largest domestic investor in Danang with a total of $250 million at work in the city’s property and tourism projects.
Other plans
Hoang Anh – involved in a range of businesses from property to wood processing and tourism – plans to pour trillions of dong into high-end offices, hotels and apartment projects in Vietnam and abroad over the next four years.
The company has plans to open a 4,000-apartment project near the Phu My Hung urban area in South Saigon this year while striving to become a high-end and mid-range apartment leader by 2012 when it hopes to have 15,000 apartments completed.
Hoang Anh has branched out to electricity sector with $90 million invested in the construction of four hydroelectricity plants in the province.
The corporation, with a chartered capital of VND1.04 trillion (US$65 million), aims to list on the domestic stock exchange in the second quarter of 2008.
The group will invest $20 million or more in developing 10,000ha of rubber trees in Laos and 5,000ha more in Vietnam from now until 2012.
There are also plans to merge affiliates Hoang Anh Quy Nhon, Hoang Anh Saigon and Hoang Anh Housing Company into the conglomerate to increase financial capacity.
French investment fund Jaccar and two local biggies - Saigon Securities Inc. and Saigon Commercial Joint Stock Bank - now held 20 percent of the group’s total shares.
Last year, Hoang Anh posted revenue of VND289 billion ($18 million) and after-tax profits of VND50.5 billion ($3.1 million), predicting an expected VND813 billion ($51 million) in revenue and VND158 billion ($10 million) profits this year.
Source: Thanh Nien, VietNamNet – Compiled by Dong Ha
A private trading company has signed an initial agreement to pour US$180 million into two real estate projects in Danang city on Vietnam’s central coast.
Under the deal signed earlier this week with the city government, Hoang Anh Gia Lai Corp. plans to invest $150 million to build a waterfront hotel-apartment-office-shopping-complex along the Han River in Hai Chau district.
Work on building the complex is scheduled to start early next year and finish in 2010.
The corporation, headquartered in the Central Highlands province of Gia Lai, will also build an estimated $30 million worth of high-end apartments for sale in Thanh Khe district.
Doan Nguyen Duc, chairman of the corporation, urged the city authorities to speed up site clearance to deliver land to the investor for the construction soon.
Additionally, the company is set to begin work on a $25 million resort project in Ngu Hanh Son District in August.
With the fresh investment, Hoang Anh has become the largest domestic investor in Danang with a total of $250 million at work in the city’s property and tourism projects.
Other plans
Hoang Anh – involved in a range of businesses from property to wood processing and tourism – plans to pour trillions of dong into high-end offices, hotels and apartment projects in Vietnam and abroad over the next four years.
The company has plans to open a 4,000-apartment project near the Phu My Hung urban area in South Saigon this year while striving to become a high-end and mid-range apartment leader by 2012 when it hopes to have 15,000 apartments completed.
Hoang Anh has branched out to electricity sector with $90 million invested in the construction of four hydroelectricity plants in the province.
The corporation, with a chartered capital of VND1.04 trillion (US$65 million), aims to list on the domestic stock exchange in the second quarter of 2008.
The group will invest $20 million or more in developing 10,000ha of rubber trees in Laos and 5,000ha more in Vietnam from now until 2012.
There are also plans to merge affiliates Hoang Anh Quy Nhon, Hoang Anh Saigon and Hoang Anh Housing Company into the conglomerate to increase financial capacity.
French investment fund Jaccar and two local biggies - Saigon Securities Inc. and Saigon Commercial Joint Stock Bank - now held 20 percent of the group’s total shares.
Last year, Hoang Anh posted revenue of VND289 billion ($18 million) and after-tax profits of VND50.5 billion ($3.1 million), predicting an expected VND813 billion ($51 million) in revenue and VND158 billion ($10 million) profits this year.
Source: Thanh Nien, VietNamNet – Compiled by Dong Ha
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