Read the research and forecast report for Vietnam. It covers macro economic environment as well as the commercial real estate industry.

1. Q2 2013 | VIETNAM OVERVIEW
research & forecast Report
vietnam
“Certain markets show signs of slight
recovery in the South, but still limited
marketmovementintheNorthofVietnam”
www.colliers.com/vietnam

2. Economy of Vietnam
• Vietnam’s GDP reached 5% in Q2 2013
• Inflation was under control
• FDI exceeded US$10 billion
• Trade deficit came back
• Dong devaluation of 1%
Ho Chi Minh City and Hanoi’ s Economic Update
Ho Chi Minh City Infrastructure Update
Ho Chi Minh City Property Market
Office
• Market Overview
• Rent slightly increased but much more incentives
• Occupancy increased at all grades
Retail
• More international players keep coming in
• More vacancy at shopping malls
Residential
• More launches to benefit the Government’s 30 trillion package
• Further drops in both primary and secondary markets
• Developers are switching to affordable market
Hanoi Property Market
Office
• Six new buildings came online
• Grade A: Stable rent but more incentives
• Grade B: strong drop in both rent and occupancy
Retail
• Stable market, waiting for huge new supply
Residential
• 95% of new launches in affordable segment
• Price continued to decline
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Table of Contents
Q2
2013
Office Retail Residential
Rent Occupancy Demand Rent Occupancy Demand
Primary
price
Secondary
price
Sold
rate
Demand
HCMC stable weak healthy
HANOI weak stable stable
Vietnam Property Market At a Glance

3. VIETNAM | Q2 2013 | ECONOMIC UPDATE
Vietnam is now facing slow economic growth due to inflation limiting measures.
VIETNAM’S GDP REACHED 5% IN Q2 2013
Vietnam’s GDP in Q2 2013 grew 5%, slightly better than last quarter’s
grow rate of 4.89%, with the major contribution from service sector
(increasing 5.92% y-o-y and contributing 2.51% to the total growth).
Meanwhile, the industry sector’s growth slowed down to 1.99% in Q2
2013 from 2.14% in Q2 2012. This modest gain was due to the weak
demand which recovered at a lower than expected. Despite a further
interest rate cut, bad debt still hobbled over the economy. In addition,
credit growth also picked up at a slower pace than expected while pri-
vate investment, manufacturing continued being narrowed down. Al-
though GDP growth rate was not as high as expected, it was reasonable
during this tough time.
INFLATION WAS UNDER CONTROL
Vietnam’s economic policies have succeeded in recovering macroeco-
nomic stability over the past year, which was reflected in the strong
decline of inflation and the increasing trust in domestic currency. Vi-
etnam’s CPI in June increased only 0.05 percent from the previous
month, driving CPI in the first half of 2013 up 2.4% against last De-
cember, the lowest increase rate since 2004. This indicated inflation
may not be a big concern this year. However, it also implied that pur-
chasing power is much lower than last year, as total retail sales only
increased 4.9% in first six months, much lower than the 9.8% increase
last year, warning a difficult year of both production and consumption.
FDI EXCEEDED US$10 BILLION
Vietnam attracted approximately US$10.5 billion of newly registered
and additional capital from foreign investors in the first half of this
year, a 15.9% increase y-o-y. The figure included over US$5.8 bil-
lion of newly-registered capital from 554 FDI projects licensed in the
period. Specifically, the manufacturing sectors drew the most interest
from foreign investors, with total capital of over US$9.3 billion during
the reviewed time, which accounted for 88.9 percent of total regis-
tered investment capital. Besides, among 45 countries and territories
that have invested in Vietnam, Japan ranked first with nearly US$4
billion, followed by Singapore with US$3.4 billion and Russia with over
US$1 billion.
TRADE DEFICIT INCREASED
In Q2 2013. export continued to enjoy steady growth with total earnings
reached US$32.3 billion, 9% higher than Q1 2013. Meanwhile, import
reached US$34.2 billion, rose significantly 17% q-o-q. Finally after
one year, trade deficit increased with US$1.9 billion in this quarter.
However, it should be noted that FDI enterprises were dominating
Vietnam’s export and import turnover. In the first six months of 2013,
foreign investment sector contributed 66% of total export turnover,
reaching US$41.1 billion while it imported a total value of US$35.7
billon, accounted for 56% of total import turnover.
DONG DEVALUATION OF 1%
The State Bank of Vietnam (SBV) also devalued the Dong in June for the
first time since 2011 by 1% against the Dollar to 21,036 to more accurately
represent the supply and demand of foreign currency and to stabilize the
local foreign exchange market.
VIETNAM’S GDP REACHED 5% IN Q2 2013
Vietnam’s GDP in Q2 2013 grew 5%, slightly better than last quarter’s
grow rate of 4.89%, with the major contribution from service sector
(increasing 5.92% y-o-y and contributing 2.51% to the total growth).
Meanwhile, the industry sector’s growth slowed down to 1.99% in Q2
2013 from 2.14% in Q2 2012. This modest gain was due to the weak
demand which recovered at a lower than expected. Despite a further
interest rate cut, bad debt still hobbled over the economy. In addition,
credit growth also picked up at a slower pace than expected while
private investment, manufacturing continued being narrowed down.
Although GDP growth rate was not as high as expected, it was
reasonable during this tough time.
INFLATION WAS UNDER CONTROL
Vietnam’s economic policies have succeeded in recovering
macroeconomic stability over the past one year, which was reflected in
the strong decline of inflation and the increasing trust in domestic
currency. Vietnam’s CPI in June increased only 0.05 percent from the
previous month, driving CPI in the first half of 2013 up 2.4% against
last December, the lowest increase rate since 2004. This indicated
inflation may not be a big concern this year. However, it also implied
that purchasing power is much lower than last year, as total retail
sales only increased 4.9% in first six months, much lower than the
9.8% increase last year, warning a difficult year of both production and
consumption.
FDI EXCEEDED US$10 BILLION
Vietnam attracted approximately US$10.5 billion of newly registered
and additional capital from foreign investors in the first half of this year,
a 15.9% increase y-o-y. The figure included over US$5.8 billion of
newly-registered capital from 554 FDI projects licensed in the period.
Specifically, the manufacturing sectors drew the most interest from
foreign investors, with total capital of over US$9.3 billion during the
reviewed time, which accounted for 88.9 percent of total registered
investment capital. Besides, among 45 countries and territories that
have invested in Vietnam, Japan ranked first with nearly US$4 billion,
followed by Singapore with US$3.4 billion and Russia with over US$1
billion.
TRADE DEFICIT CAME BACK
In Q2 2013. export continued to enjoy steady growth with total
earnings reached US$32.3 billion, 9% higher than Q1
2013. Meanwhile, import reached US$34.2 billion, rose significantly
17% q-o-q. Finally after one year, trade deficit came back with US$1.9
billion in this quarter. However, it should be noted that FDI enterprises
were dominating Vietnam’s export and import turnover. In the first six
months of 2013, foreign investment sector contributed 66% of total
export turnover, reaching US$41.1 billion while it imported a total value
of US$35.7 billon, accounted for 56% of total import turnover.
DONG DEVALUATION OF 1%
The State Bank of Vietnam (SBV) also devalued the Dong in June for
the first time since 2011 by 1% against the Dollar to 21,036 to more
accurately represent the supply and demand of foreign currency and
stabilize the local foreign exchange market.
VIETNAM’S GDP GROWTH RATE
VIETNAM’ S CPI MONTH-ON-MONTH
EXPORT & IMPORT TURNOVER
REGISTERED & DISBURSED FDI
After inflation was controlled, Vietnam is now facing slow economy growth
VIETNAM ECONOMIC GROWTH | Q2 2013
2%
3%
4%
5%
6%
7%
8%
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Source: GSO, Colliers International, Q2 2013
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: GSO, Colliers International, Q2 2013
2011 2012 2013
0
5
10
15
20
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$billion
Source: GSO, Colliers International, Q2 2013
Registered capital Disbursed capital
-20%
0%
20%
40%
-20
0
20
40
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$billion
Source: GSO, Colliers International, Q2 2013
Exportturnover Importturnover
Trade balance Growth rate of export turnover
Growth rate of importturnover
VIETNAM’S GDP REACHED 5% IN Q2 2013
Vietnam’s GDP in Q2 2013 grew 5%, slightly better than last quarter’s
grow rate of 4.89%, with the major contribution from service sector
(increasing 5.92% y-o-y and contributing 2.51% to the total growth).
Meanwhile, the industry sector’s growth slowed down to 1.99% in Q2
2013 from 2.14% in Q2 2012. This modest gain was due to the weak
demand which recovered at a lower than expected. Despite a further
interest rate cut, bad debt still hobbled over the economy. In addition,
credit growth also picked up at a slower pace than expected while
private investment, manufacturing continued being narrowed down.
Although GDP growth rate was not as high as expected, it was
reasonable during this tough time.
INFLATION WAS UNDER CONTROL
Vietnam’s economic policies have succeeded in recovering
macroeconomic stability over the past one year, which was reflected in
the strong decline of inflation and the increasing trust in domestic
currency. Vietnam’s CPI in June increased only 0.05 percent from the
previous month, driving CPI in the first half of 2013 up 2.4% against
last December, the lowest increase rate since 2004. This indicated
inflation may not be a big concern this year. However, it also implied
that purchasing power is much lower than last year, as total retail
sales only increased 4.9% in first six months, much lower than the
9.8% increase last year, warning a difficult year of both production and
consumption.
FDI EXCEEDED US$10 BILLION
Vietnam attracted approximately US$10.5 billion of newly registered
and additional capital from foreign investors in the first half of this year,
a 15.9% increase y-o-y. The figure included over US$5.8 billion of
newly-registered capital from 554 FDI projects licensed in the period.
Specifically, the manufacturing sectors drew the most interest from
foreign investors, with total capital of over US$9.3 billion during the
reviewed time, which accounted for 88.9 percent of total registered
investment capital. Besides, among 45 countries and territories that
have invested in Vietnam, Japan ranked first with nearly US$4 billion,
followed by Singapore with US$3.4 billion and Russia with over US$1
billion.
TRADE DEFICIT CAME BACK
In Q2 2013. export continued to enjoy steady growth with total
earnings reached US$32.3 billion, 9% higher than Q1
2013. Meanwhile, import reached US$34.2 billion, rose significantly
17% q-o-q. Finally after one year, trade deficit came back with US$1.9
billion in this quarter. However, it should be noted that FDI enterprises
were dominating Vietnam’s export and import turnover. In the first six
months of 2013, foreign investment sector contributed 66% of total
export turnover, reaching US$41.1 billion while it imported a total value
of US$35.7 billon, accounted for 56% of total import turnover.
DONG DEVALUATION OF 1%
The State Bank of Vietnam (SBV) also devalued the Dong in June for
the first time since 2011 by 1% against the Dollar to 21,036 to more
accurately represent the supply and demand of foreign currency and
stabilize the local foreign exchange market.
VIETNAM’S GDP GROWTH RATE
VIETNAM’ S CPI MONTH-ON-MONTH
EXPORT & IMPORT TURNOVER
REGISTERED & DISBURSED FDI
After inflation was controlled, Vietnam is now facing slow economy growth
VIETNAM ECONOMIC GROWTH | Q2 2013
2%
3%
4%
5%
6%
7%
8%
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013Source: GSO, Colliers International, Q2 2013
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: GSO, Colliers International, Q2 2013
2011 2012 2013
0
5
10
15
20
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$billion
Source: GSO, Colliers International, Q2 2013
Registered capital Disbursed capital
-20%
0%
20%
40%
-20
0
20
40
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$billion
Source: GSO, Colliers International, Q2 2013
Exportturnover Importturnover
Trade balance Growth rate of export turnover
Growth rate of importturnover
VIETNAM’S GDP REACHED 5% IN Q2 2013
Vietnam’s GDP in Q2 2013 grew 5%, slightly better than last quarter’s
grow rate of 4.89%, with the major contribution from service sector
(increasing 5.92% y-o-y and contributing 2.51% to the total growth).
Meanwhile, the industry sector’s growth slowed down to 1.99% in Q2
2013 from 2.14% in Q2 2012. This modest gain was due to the weak
demand which recovered at a lower than expected. Despite a further
interest rate cut, bad debt still hobbled over the economy. In addition,
credit growth also picked up at a slower pace than expected while
private investment, manufacturing continued being narrowed down.
Although GDP growth rate was not as high as expected, it was
reasonable during this tough time.
INFLATION WAS UNDER CONTROL
Vietnam’s economic policies have succeeded in recovering
macroeconomic stability over the past one year, which was reflected in
the strong decline of inflation and the increasing trust in domestic
currency. Vietnam’s CPI in June increased only 0.05 percent from the
previous month, driving CPI in the first half of 2013 up 2.4% against
last December, the lowest increase rate since 2004. This indicated
inflation may not be a big concern this year. However, it also implied
that purchasing power is much lower than last year, as total retail
sales only increased 4.9% in first six months, much lower than the
9.8% increase last year, warning a difficult year of both production and
consumption.
FDI EXCEEDED US$10 BILLION
Vietnam attracted approximately US$10.5 billion of newly registered
and additional capital from foreign investors in the first half of this year,
a 15.9% increase y-o-y. The figure included over US$5.8 billion of
newly-registered capital from 554 FDI projects licensed in the period.
Specifically, the manufacturing sectors drew the most interest from
foreign investors, with total capital of over US$9.3 billion during the
reviewed time, which accounted for 88.9 percent of total registered
investment capital. Besides, among 45 countries and territories that
have invested in Vietnam, Japan ranked first with nearly US$4 billion,
followed by Singapore with US$3.4 billion and Russia with over US$1
billion.
TRADE DEFICIT CAME BACK
In Q2 2013. export continued to enjoy steady growth with total
earnings reached US$32.3 billion, 9% higher than Q1
2013. Meanwhile, import reached US$34.2 billion, rose significantly
17% q-o-q. Finally after one year, trade deficit came back with US$1.9
billion in this quarter. However, it should be noted that FDI enterprises
were dominating Vietnam’s export and import turnover. In the first six
months of 2013, foreign investment sector contributed 66% of total
export turnover, reaching US$41.1 billion while it imported a total value
of US$35.7 billon, accounted for 56% of total import turnover.
DONG DEVALUATION OF 1%
The State Bank of Vietnam (SBV) also devalued the Dong in June for
the first time since 2011 by 1% against the Dollar to 21,036 to more
accurately represent the supply and demand of foreign currency and
stabilize the local foreign exchange market.
VIETNAM’S GDP GROWTH RATE
VIETNAM’ S CPI MONTH-ON-MONTH
EXPORT & IMPORT TURNOVER
REGISTERED & DISBURSED FDI
After inflation was controlled, Vietnam is now facing slow economy growth
VIETNAM ECONOMIC GROWTH | Q2 2013
2%
3%
4%
5%
6%
7%
8%
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Source: GSO, Colliers International, Q2 2013
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: GSO, Colliers International, Q2 2013
2011 2012 2013
0
5
10
15
20
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$billion
Source: GSO, Colliers International, Q2 2013
Registered capital Disbursed capital
-20%
0%
20%
40%
-20
0
20
40
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$billion
Source: GSO, Colliers International, Q2 2013
Exportturnover Importturnover
Trade balance Growth rate of export turnover
Growth rate of importturnover
VIETNAM’S GDP REACHED 5% IN Q2 2013
Vietnam’s GDP in Q2 2013 grew 5%, slightly better than last quarter’s
grow rate of 4.89%, with the major contribution from service sector
(increasing 5.92% y-o-y and contributing 2.51% to the total growth).
Meanwhile, the industry sector’s growth slowed down to 1.99% in Q2
2013 from 2.14% in Q2 2012. This modest gain was due to the weak
demand which recovered at a lower than expected. Despite a further
interest rate cut, bad debt still hobbled over the economy. In addition,
credit growth also picked up at a slower pace than expected while
private investment, manufacturing continued being narrowed down.
Although GDP growth rate was not as high as expected, it was
reasonable during this tough time.
INFLATION WAS UNDER CONTROL
Vietnam’s economic policies have succeeded in recovering
macroeconomic stability over the past one year, which was reflected in
the strong decline of inflation and the increasing trust in domestic
currency. Vietnam’s CPI in June increased only 0.05 percent from the
previous month, driving CPI in the first half of 2013 up 2.4% against
last December, the lowest increase rate since 2004. This indicated
inflation may not be a big concern this year. However, it also implied
that purchasing power is much lower than last year, as total retail
sales only increased 4.9% in first six months, much lower than the
9.8% increase last year, warning a difficult year of both production and
consumption.
FDI EXCEEDED US$10 BILLION
Vietnam attracted approximately US$10.5 billion of newly registered
and additional capital from foreign investors in the first half of this year,
a 15.9% increase y-o-y. The figure included over US$5.8 billion of
newly-registered capital from 554 FDI projects licensed in the period.
Specifically, the manufacturing sectors drew the most interest from
foreign investors, with total capital of over US$9.3 billion during the
reviewed time, which accounted for 88.9 percent of total registered
investment capital. Besides, among 45 countries and territories that
have invested in Vietnam, Japan ranked first with nearly US$4 billion,
followed by Singapore with US$3.4 billion and Russia with over US$1
billion.
TRADE DEFICIT CAME BACK
In Q2 2013. export continued to enjoy steady growth with total
earnings reached US$32.3 billion, 9% higher than Q1
2013. Meanwhile, import reached US$34.2 billion, rose significantly
17% q-o-q. Finally after one year, trade deficit came back with US$1.9
billion in this quarter. However, it should be noted that FDI enterprises
were dominating Vietnam’s export and import turnover. In the first six
months of 2013, foreign investment sector contributed 66% of total
export turnover, reaching US$41.1 billion while it imported a total value
of US$35.7 billon, accounted for 56% of total import turnover.
DONG DEVALUATION OF 1%
The State Bank of Vietnam (SBV) also devalued the Dong in June for
the first time since 2011 by 1% against the Dollar to 21,036 to more
accurately represent the supply and demand of foreign currency and
stabilize the local foreign exchange market.
VIETNAM’S GDP GROWTH RATE
VIETNAM’ S CPI MONTH-ON-MONTH
EXPORT & IMPORT TURNOVER
REGISTERED & DISBURSED FDI
After inflation was controlled, Vietnam is now facing slow economy growth
VIETNAM ECONOMIC GROWTH | Q2 2013
2%
3%
4%
5%
6%
7%
8%
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Source: GSO, Colliers International, Q2 2013
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: GSO, Colliers International, Q2 2013
2011 2012 2013
0
5
10
15
20
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$billion
Source: GSO, Colliers International, Q2 2013
Registered capital Disbursed capital
-20%
0%
20%
40%
-20
0
20
40
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$billion
Source: GSO, Colliers International, Q2 2013
Exportturnover Importturnover
Trade balance Growth rate of export turnover
Growth rate of importturnover
P.1 | Colliers International

4. HO CHI MINH & HANOI | Q2 2013 | ECONOMIC UPDATE
P.2 | Colliers International
CPI showed growth in both Hanoi & HCMC
HO CHI MINH CITY ECONOMIC UPDATE
HCMC’s GDP growth in Q2 2013 was recorded at 8.1%, showing an
improvement from the 7.6% growth in last quarter. During the first
half of this year, the city’s GDP was estimated at VND340,654 trillion,
growing 7.9% y-o-y and 0.2 pts lower than the growth in the same
period last year.
CPI in June 2013 went up 0.12% m-o-m and 2.78% y-o-y. It should be
noted that CPI has increased only 0.78% over the end of 2012, which
is the lowest increase in the last twelve years. In addition, average CPI
of the first half 2013 went up 2.86% y-o-y, incredibly lower than the
increase of 11.12% in the same period last year.
In the first six months, total retail sales in HCMC reached VND288,912
billion, a 11.7% y-o-y increase. Also in the meantime, HCMC recorded
a total foreign exchange turnover of US$22,639 million, increased
11.2% y-o-y, and still enjoyed a trade surplus of US$1 billion. Both
export and import showed notable increases of 6.2% and 15.5% y-o-y
respectively.
In terms of attracting foreign investment, it is estimated that during Q2
2013, FDI in HCMC reached US$130 million from 114 projects, which
notably doubled the capital attracted last quarter. During the first six
months of 2013, the city’s FDI reached only US$189 million. Compar-
ing to the US$541 million attracted last year, it is expected that the
Government needs be more active in some legal procedures and other
incentives to make HCMC more attractive to investors.
HANOI ECONOMIC UPDATE
Hanoi’s GDP growth in Q2 2013 reached at 7.67%, an further advance
0.07% in growth from last quarter. During the first half of this year,
service show the greatest improvement of 8.5% follow by construction
and industry at 7.46%.
CPI started to pick up again at 0.08% on June after 3 month of nega-
tive grow from March to May, y-o-y from June 2012 estimated at
5.43%. Higher CPI would prove to be a challenge to economic growth
in Hanoi, especially the price of petroleum, which play a heavy role in
CPI, is not under direct control of the government.
Hanoi’s Foreign Investment is looking at $300.5 mil USD new invest-
ment capital spreading in 104 new and adjusted investment projects, a
reduce of 15.5% in term of number and 21.2% in term of capital. This
reflected the trend in world economy. Major interest of Foreign invest-
ment in Hanoi is retail.
In the tourism industry, total international visitors to Hanoi reached
nearly 930,000, which significantly increased 21.5% compared to the
first six month last year.
www.colliers.com/vietnam
RETAIL SALES GROWTH RATE
FOREIGN INVESTMENT CAPITAL
GDP GROWTH RATE
CPI MONTH-ON-MONTH
HO CHI MINH CITY ECONOMIC UPDATE
HCMC’s GDP growth in Q2 2013 was recorded at 8.1%, showing
an improvement from the 7.6% growth in last quarter. During the
first half of this year, the city’s GDP was estimated at VND340,654
trillion, growing 7.9% y-o-y and 0.2 pts lower than the growth in the
same period last year.
CPI in June 2013 went up 0.12% m-o-m and 2.78% y-o-y. It should
be noted that CPI has increased only 0.78% over the end of 2012,
which is the lowest increase in the last twelve years. In addition,
average CPI of the first half 2013 went up 2.86% y-o-y, incredibly
lower than the increase of 11.12% in the same period last year.
In the first six months, total retail sales in HCMC reached
VND288,912 billion, a 11.7% y-o-y increase. Also in the meantime,
HCMC recorded a total foreign exchange turnover of US$22,639
million, increased 11.2% y-o-y, and still enjoyed a trade surplus of
US$1 billion. Both export and import showed notable increases of
6.2% and 15.5% y-o-y respectively.
In term of foreign investment attraction, it is estimated that during
Q2 2013, FDI in HCMC reached US$130 million from 114 projects,
which notably doubled the capital attracted last quarter. Totally the
first six months of 2013 witnessed the city’s FDI reached only
US$189 million. Comparing to the US$541 million attracted last
year, it is expected that the Government needs be more active in
some legal procedures and other incentives to bring HCMC become
as attractive as before.
HANOI ECONOMIC UPDATE
Hanoi’s GDP growth in Q2 2013 reached at 7.67%, an further
advance 0.07% in growth from last quarter. During the first half of
this year, service show the greatest improvement of 8.5% follow by
construction and industry at 7.46%.
CPI started to pick up again at 0.08% on June after 3 month of
negative grow from March to May, y-o-y from June 2012 estimated
at 5.43%. Higher CPI would prove to be a challenge to economic
growth in Hanoi, especially the price of petroleum, which play a
heavy role in CPI, is not under direct control of the government.
Hanoi’s Foreign Investment is looking at $300.5 mil USD new
investment capital spreading in 104 new and adjust investment
projects, a reduce of 15.5% in term of number and 21.2% in term of
capital. This reflected the trend in world economy. Major interest of
Foreign investment in Hanoi is retail.
In the tourism industry, total international visitors to Hanoi reached
nearly 930,000, which significantly increased 21.5% compared to
the first six month last year.
3
HO CHI MINH CITY & HANOI ECONOMIC UPDATES | Q2 2013
CPIs in both two major cities started to rise back in June
6%
7%
8%
9%
10%
11%
12%
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Source: GSO, Colliers International, Q2 2013
Ho Chi Minh City Ha Noi
-1.0%
0.0%
1.0%
2.0%
3.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2012 2013
Source:ColliersInternational,Q2 2013
Ho Chi Minh Ha Noi
-
500
1,000
1,500
2,000
2,500
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$million
Source:GSO, Colliers International,Q2 2013
Ho Chi Minh city Hanoi
5%
10%
15%
20%
25%
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Source:GSO, Colliers International,Q2 2013
Ho Chi Minh City Hanoi
www.colliers.com/vietnam
RETAIL SALES GROWTH RATE
FOREIGN INVESTMENT CAPITAL
GDP GROWTH RATE
CPI MONTH-ON-MONTH
HO CHI MINH CITY ECONOMIC UPDATE
HCMC’s GDP growth in Q2 2013 was recorded at 8.1%, showing
an improvement from the 7.6% growth in last quarter. During the
first half of this year, the city’s GDP was estimated at VND340,654
trillion, growing 7.9% y-o-y and 0.2 pts lower than the growth in the
same period last year.
CPI in June 2013 went up 0.12% m-o-m and 2.78% y-o-y. It should
be noted that CPI has increased only 0.78% over the end of 2012,
which is the lowest increase in the last twelve years. In addition,
average CPI of the first half 2013 went up 2.86% y-o-y, incredibly
lower than the increase of 11.12% in the same period last year.
In the first six months, total retail sales in HCMC reached
VND288,912 billion, a 11.7% y-o-y increase. Also in the meantime,
HCMC recorded a total foreign exchange turnover of US$22,639
million, increased 11.2% y-o-y, and still enjoyed a trade surplus of
US$1 billion. Both export and import showed notable increases of
6.2% and 15.5% y-o-y respectively.
In term of foreign investment attraction, it is estimated that during
Q2 2013, FDI in HCMC reached US$130 million from 114 projects,
which notably doubled the capital attracted last quarter. Totally the
first six months of 2013 witnessed the city’s FDI reached only
US$189 million. Comparing to the US$541 million attracted last
year, it is expected that the Government needs be more active in
some legal procedures and other incentives to bring HCMC become
as attractive as before.
HANOI ECONOMIC UPDATE
Hanoi’s GDP growth in Q2 2013 reached at 7.67%, an further
advance 0.07% in growth from last quarter. During the first half of
this year, service show the greatest improvement of 8.5% follow by
construction and industry at 7.46%.
CPI started to pick up again at 0.08% on June after 3 month of
negative grow from March to May, y-o-y from June 2012 estimated
at 5.43%. Higher CPI would prove to be a challenge to economic
growth in Hanoi, especially the price of petroleum, which play a
heavy role in CPI, is not under direct control of the government.
Hanoi’s Foreign Investment is looking at $300.5 mil USD new
investment capital spreading in 104 new and adjust investment
projects, a reduce of 15.5% in term of number and 21.2% in term of
capital. This reflected the trend in world economy. Major interest of
Foreign investment in Hanoi is retail.
In the tourism industry, total international visitors to Hanoi reached
nearly 930,000, which significantly increased 21.5% compared to
the first six month last year.
3
HO CHI MINH CITY & HANOI ECONOMIC UPDATES | Q2 2013
CPIs in both two major cities started to rise back in June
6%
7%
8%
9%
10%
11%
12%
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Source: GSO, Colliers International, Q2 2013
Ho Chi Minh City Ha Noi
-1.0%
0.0%
1.0%
2.0%
3.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2012 2013
Source:ColliersInternational,Q2 2013
Ho Chi Minh Ha Noi
-
500
1,000
1,500
2,000
2,500
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$million
Source:GSO, Colliers International,Q2 2013
Ho Chi Minh city Hanoi
5%
10%
15%
20%
25%
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Source:GSO, Colliers International,Q2 2013
Ho Chi Minh City Hanoi
RETAIL SALES GROWTH RATE
FOREIGN INVESTMENT CAPITAL
GDP GROWTH RATE
CPI MONTH-ON-MONTH
HO CHI MINH CITY ECONOMIC UPDATE
HCMC’s GDP growth in Q2 2013 was recorded at 8.1%, showing
an improvement from the 7.6% growth in last quarter. During the
first half of this year, the city’s GDP was estimated at VND340,654
trillion, growing 7.9% y-o-y and 0.2 pts lower than the growth in the
same period last year.
CPI in June 2013 went up 0.12% m-o-m and 2.78% y-o-y. It should
be noted that CPI has increased only 0.78% over the end of 2012,
which is the lowest increase in the last twelve years. In addition,
average CPI of the first half 2013 went up 2.86% y-o-y, incredibly
lower than the increase of 11.12% in the same period last year.
In the first six months, total retail sales in HCMC reached
VND288,912 billion, a 11.7% y-o-y increase. Also in the meantime,
HCMC recorded a total foreign exchange turnover of US$22,639
million, increased 11.2% y-o-y, and still enjoyed a trade surplus of
US$1 billion. Both export and import showed notable increases of
6.2% and 15.5% y-o-y respectively.
In term of foreign investment attraction, it is estimated that during
Q2 2013, FDI in HCMC reached US$130 million from 114 projects,
which notably doubled the capital attracted last quarter. Totally the
first six months of 2013 witnessed the city’s FDI reached only
US$189 million. Comparing to the US$541 million attracted last
year, it is expected that the Government needs be more active in
some legal procedures and other incentives to bring HCMC become
as attractive as before.
HANOI ECONOMIC UPDATE
Hanoi’s GDP growth in Q2 2013 reached at 7.67%, an further
advance 0.07% in growth from last quarter. During the first half of
this year, service show the greatest improvement of 8.5% follow by
construction and industry at 7.46%.
CPI started to pick up again at 0.08% on June after 3 month of
negative grow from March to May, y-o-y from June 2012 estimated
at 5.43%. Higher CPI would prove to be a challenge to economic
growth in Hanoi, especially the price of petroleum, which play a
heavy role in CPI, is not under direct control of the government.
Hanoi’s Foreign Investment is looking at $300.5 mil USD new
investment capital spreading in 104 new and adjust investment
projects, a reduce of 15.5% in term of number and 21.2% in term of
capital. This reflected the trend in world economy. Major interest of
Foreign investment in Hanoi is retail.
In the tourism industry, total international visitors to Hanoi reached
nearly 930,000, which significantly increased 21.5% compared to
the first six month last year.
HO CHI MINH CITY & HANOI ECONOMIC UPDATES | Q2 2013
CPIs in both two major cities started to rise back in June
6%
7%
8%
9%
10%
11%
12%
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Source: GSO, Colliers International, Q2 2013
Ho Chi Minh City Ha Noi
-1.0%
0.0%
1.0%
2.0%
3.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2012 2013
Source:ColliersInternational,Q2 2013
Ho Chi Minh Ha Noi
-
500
1,000
1,500
2,000
2,500
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$million
Source:GSO, Colliers International,Q2 2013
Ho Chi Minh city Hanoi
5%
10%
15%
20%
25%
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Source:GSO, Colliers International,Q2 2013
Ho Chi Minh City Hanoi
RETAIL SALES GROWTH RATE
FOREIGN INVESTMENT CAPITAL
GDP GROWTH RATE
CPI MONTH-ON-MONTH
HO CHI MINH CITY ECONOMIC UPDATE
HCMC’s GDP growth in Q2 2013 was recorded at 8.1%, showing
an improvement from the 7.6% growth in last quarter. During the
first half of this year, the city’s GDP was estimated at VND340,654
trillion, growing 7.9% y-o-y and 0.2 pts lower than the growth in the
same period last year.
CPI in June 2013 went up 0.12% m-o-m and 2.78% y-o-y. It should
be noted that CPI has increased only 0.78% over the end of 2012,
which is the lowest increase in the last twelve years. In addition,
average CPI of the first half 2013 went up 2.86% y-o-y, incredibly
lower than the increase of 11.12% in the same period last year.
In the first six months, total retail sales in HCMC reached
VND288,912 billion, a 11.7% y-o-y increase. Also in the meantime,
HCMC recorded a total foreign exchange turnover of US$22,639
million, increased 11.2% y-o-y, and still enjoyed a trade surplus of
US$1 billion. Both export and import showed notable increases of
6.2% and 15.5% y-o-y respectively.
In term of foreign investment attraction, it is estimated that during
Q2 2013, FDI in HCMC reached US$130 million from 114 projects,
which notably doubled the capital attracted last quarter. Totally the
first six months of 2013 witnessed the city’s FDI reached only
US$189 million. Comparing to the US$541 million attracted last
year, it is expected that the Government needs be more active in
some legal procedures and other incentives to bring HCMC become
as attractive as before.
HANOI ECONOMIC UPDATE
Hanoi’s GDP growth in Q2 2013 reached at 7.67%, an further
advance 0.07% in growth from last quarter. During the first half of
this year, service show the greatest improvement of 8.5% follow by
construction and industry at 7.46%.
CPI started to pick up again at 0.08% on June after 3 month of
negative grow from March to May, y-o-y from June 2012 estimated
at 5.43%. Higher CPI would prove to be a challenge to economic
growth in Hanoi, especially the price of petroleum, which play a
heavy role in CPI, is not under direct control of the government.
Hanoi’s Foreign Investment is looking at $300.5 mil USD new
investment capital spreading in 104 new and adjust investment
projects, a reduce of 15.5% in term of number and 21.2% in term of
capital. This reflected the trend in world economy. Major interest of
Foreign investment in Hanoi is retail.
In the tourism industry, total international visitors to Hanoi reached
nearly 930,000, which significantly increased 21.5% compared to
the first six month last year.
HO CHI MINH CITY & HANOI ECONOMIC UPDATES | Q2 2013
CPIs in both two major cities started to rise back in June
6%
7%
8%
9%
10%
11%
12%
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Source: GSO, Colliers International, Q2 2013
Ho Chi Minh City Ha Noi
-1.0%
0.0%
1.0%
2.0%
3.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2012 2013
Source:ColliersInternational,Q2 2013
Ho Chi Minh Ha Noi
-
500
1,000
1,500
2,000
2,500
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
US$million
Source:GSO, Colliers International,Q2 2013
Ho Chi Minh city Hanoi
5%
10%
15%
20%
25%
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Source:GSO, Colliers International,Q2 2013
Ho Chi Minh City Hanoi

5. HO CHI MINH CITY | Q2 2013 | INFRASTRUCTURE
Infrastructure developments behind schedule, but some bright points appeared
HO CHI MINH CITY
On June 11, HCMC People’s Committee signed a contract with Hitachi
regarding Metro Line No. 1 Package 3, which covers electrical and
mechanical works, rolling stock for the first phase of the city's metro
network. The total value of the contract is around US$381 million and
includes the delivery of 17 three-car trains, signaling systems, tel-
ecommunications, power supplies, platform screen doors, automatic
fare collection, and depot facilities. Under a separate agreement, Hi-
tachi will also provide maintenance services for five years from the
operation of the project, which is expected to begin in 2018. Line 1’s
construction began last year on the 17km elevated section, which is
being built by a consortium of Sumitomo and Cienco.
HCMC is planning to upgrade four bridges, including Bong Bridge
(spanning District 1 - Binh Thanh District ), Kieu Bridge (District 1
- Phu Nhuan District ), Le Van Sy Bridge (District 3) and Hau Giang
Bridge (District 6), with a total cost of US$37 million. Most of the
money will be funded by World Bank loans. The construction of four
bridges will be in accordance with the committed term of the loan
agreement and is expected to complete in June 2014.
The downtown area of HCMC will be expanded into five areas, with
motorbikes and personal cars to be banned in the core area, according
to the approved urban master plan by the city Department of Planning
and Architecture. The area, which will have an expected population of
248,000 people, will have trams, shuttle buses and waterway traffic
facilities along canals. The department is working out a schedule for
implementing the plan, which was consulted by Japan’s Nikken Sekkei
Ltd.
Saigon Bridge No. 2, a major connection in the East of HCMC on Ha-
noi Highway, is showing very good construction progress. Until June
2013, this US$71 million project has finished 84% of total construction
work and is expected to put into operation in early November 2013,
which is 5 months ahead of schedule.
www.colliers.com/vietnam
HO CHI MINH CITY
On June 11, HCMC People’s Committee signed a contract with
Hitachi regarding Metro Line No.1 Package 3, which covers
electrical and mechanical works, rolling stock for the first phase
of the city's metro network. The total value of the contract is
around US$381 million and includes the delivery of 17 three-car
trains, signaling systems, telecommunications, power supplies,
platform screen doors, automatic fare collection, and depot fa-
cilities. Under a separate agreement, Hitachi will also provide
maintenance services for five years from the operation of the
project, which is expected to begin in 2018. Line 1’s construction
began last year on the 17km elevated section, which is being
built by a consortium of Sumitomo and Cienco.
HCMC is planning to upgrade four bridges, including Bong
Bridge (spanning District 1 - Binh Thanh District), Kieu Bridge
(District 1 - Phu Nhuan District), Le Van Sy Bridge (District 3)
and Hau Giang Bridge (District 6), with a total cost of US$37
million. Most of the money will be funded by World Bank loans.
The construction of four bridges will be in accordance with the
committed term of the loan agreement and is expected to com-
plete in June 2014.
The downtown area of HCMC will be expanded into five areas,
with motorbikes and personal cars to be banned in the core
area, according to the approved urban master plan by the city
Department of Planning and Architecture. The area, which will
have an expected population of 248,000 people, will have trams,
shuttle buses and waterway traffic facilities along canals. The
department is working out a schedule for implementing the plan,
which was consulted by Japan’s Nikken Sekkei Ltd.
Saigon Bridge No. 2, a major connection in the East of HCMC
on Hanoi Highway, is showing very good construction progress.
Until June 2013, this US$71 million project has finished 84% of
total construction work and is expected to put into operation in
early November 2013, which is 5 months ahead of schedule.
4
METRO LINE 1 FOUND NEW PARTNER
FOUR BRIDGES TO BE UPGRADED
SAIGON BRIDGE NO. 2
NEW HCMC CENTER MASTER PLAN
Source: Colliers International, Q2 2013
Infrastructure developments behind schedule, some projects are progressing
HO CHI MINH CITY INFRASTRUCTURE | Q2 2013
Source: Colliers International, Q2 2013
Source: Colliers International, Q2 2013
Source: Colliers International, Q2 2013
www.colliers.com/vietnam
HO CHI MINH CITY
On June 11, HCMC People’s Committee signed a contract with
Hitachi regarding Metro Line No.1 Package 3, which covers
electrical and mechanical works, rolling stock for the first phase
of the city's metro network. The total value of the contract is
around US$381 million and includes the delivery of 17 three-car
trains, signaling systems, telecommunications, power supplies,
platform screen doors, automatic fare collection, and depot fa-
cilities. Under a separate agreement, Hitachi will also provide
maintenance services for five years from the operation of the
project, which is expected to begin in 2018. Line 1’s construction
began last year on the 17km elevated section, which is being
built by a consortium of Sumitomo and Cienco.
HCMC is planning to upgrade four bridges, including Bong
Bridge (spanning District 1 - Binh Thanh District), Kieu Bridge
(District 1 - Phu Nhuan District), Le Van Sy Bridge (District 3)
and Hau Giang Bridge (District 6), with a total cost of US$37
million. Most of the money will be funded by World Bank loans.
The construction of four bridges will be in accordance with the
committed term of the loan agreement and is expected to com-
plete in June 2014.
The downtown area of HCMC will be expanded into five areas,
with motorbikes and personal cars to be banned in the core
area, according to the approved urban master plan by the city
Department of Planning and Architecture. The area, which will
have an expected population of 248,000 people, will have trams,
shuttle buses and waterway traffic facilities along canals. The
department is working out a schedule for implementing the plan,
which was consulted by Japan’s Nikken Sekkei Ltd.
Saigon Bridge No. 2, a major connection in the East of HCMC
on Hanoi Highway, is showing very good construction progress.
Until June 2013, this US$71 million project has finished 84% of
total construction work and is expected to put into operation in
early November 2013, which is 5 months ahead of schedule.
4
METRO LINE 1 FOUND NEW PARTNER
FOUR BRIDGES TO BE UPGRADED
SAIGON BRIDGE NO. 2
NEW HCMC CENTER MASTER PLAN
Source: Colliers International, Q2 2013
Infrastructure developments behind schedule, some projects are progressing
HO CHI MINH CITY INFRASTRUCTURE | Q2 2013
Source: Colliers International, Q2 2013
Source: Colliers International, Q2 2013
Source: Colliers International, Q2 2013
HO CHI MINH CITY
On June 11, HCMC People’s Committee signed a contract with
Hitachi regarding Metro Line No.1 Package 3, which covers
electrical and mechanical works, rolling stock for the first phase
of the city's metro network. The total value of the contract is
around US$381 million and includes the delivery of 17 three-car
trains, signaling systems, telecommunications, power supplies,
platform screen doors, automatic fare collection, and depot fa-
cilities. Under a separate agreement, Hitachi will also provide
maintenance services for five years from the operation of the
project, which is expected to begin in 2018. Line 1’s construction
began last year on the 17km elevated section, which is being
built by a consortium of Sumitomo and Cienco.
HCMC is planning to upgrade four bridges, including Bong
Bridge (spanning District 1 - Binh Thanh District), Kieu Bridge
(District 1 - Phu Nhuan District), Le Van Sy Bridge (District 3)
and Hau Giang Bridge (District 6), with a total cost of US$37
million. Most of the money will be funded by World Bank loans.
The construction of four bridges will be in accordance with the
committed term of the loan agreement and is expected to com-
plete in June 2014.
The downtown area of HCMC will be expanded into five areas,
with motorbikes and personal cars to be banned in the core
area, according to the approved urban master plan by the city
Department of Planning and Architecture. The area, which will
have an expected population of 248,000 people, will have trams,
shuttle buses and waterway traffic facilities along canals. The
department is working out a schedule for implementing the plan,
which was consulted by Japan’s Nikken Sekkei Ltd.
Saigon Bridge No. 2, a major connection in the East of HCMC
on Hanoi Highway, is showing very good construction progress.
Until June 2013, this US$71 million project has finished 84% of
total construction work and is expected to put into operation in
early November 2013, which is 5 months ahead of schedule.
METRO LINE 1 FOUND NEW PARTNER
FOUR BRIDGES TO BE UPGRADED
SAIGON BRIDGE NO. 2
NEW HCMC CENTER MASTER PLAN
Source: Colliers International, Q2 2013
Infrastructure developments behind schedule, some projects are progressing
HO CHI MINH CITY INFRASTRUCTURE | Q2 2013
Source: Colliers International, Q2 2013
Source: Colliers International, Q2 2013
Source: Colliers International, Q2 2013
HO CHI MINH CITY
On June 11, HCMC People’s Committee signed a contract with
Hitachi regarding Metro Line No.1 Package 3, which covers
electrical and mechanical works, rolling stock for the first phase
of the city's metro network. The total value of the contract is
around US$381 million and includes the delivery of 17 three-car
trains, signaling systems, telecommunications, power supplies,
platform screen doors, automatic fare collection, and depot fa-
cilities. Under a separate agreement, Hitachi will also provide
maintenance services for five years from the operation of the
project, which is expected to begin in 2018. Line 1’s construction
began last year on the 17km elevated section, which is being
built by a consortium of Sumitomo and Cienco.
HCMC is planning to upgrade four bridges, including Bong
Bridge (spanning District 1 - Binh Thanh District), Kieu Bridge
(District 1 - Phu Nhuan District), Le Van Sy Bridge (District 3)
and Hau Giang Bridge (District 6), with a total cost of US$37
million. Most of the money will be funded by World Bank loans.
The construction of four bridges will be in accordance with the
committed term of the loan agreement and is expected to com-
plete in June 2014.
The downtown area of HCMC will be expanded into five areas,
with motorbikes and personal cars to be banned in the core
area, according to the approved urban master plan by the city
Department of Planning and Architecture. The area, which will
have an expected population of 248,000 people, will have trams,
shuttle buses and waterway traffic facilities along canals. The
department is working out a schedule for implementing the plan,
which was consulted by Japan’s Nikken Sekkei Ltd.
Saigon Bridge No. 2, a major connection in the East of HCMC
on Hanoi Highway, is showing very good construction progress.
Until June 2013, this US$71 million project has finished 84% of
total construction work and is expected to put into operation in
early November 2013, which is 5 months ahead of schedule.
METRO LINE 1 FOUND NEW PARTNER
FOUR BRIDGES TO BE UPGRADED
SAIGON BRIDGE NO. 2
NEW HCMC CENTER MASTER PLAN
Source: Colliers International, Q2 2013
Infrastructure developments behind schedule, some projects are progressing
HO CHI MINH CITY INFRASTRUCTURE | Q2 2013
Source: Colliers International, Q2 2013
Source: Colliers International, Q2 2013
Source: Colliers International, Q2 2013
P.3 | Colliers International

6. HO CHI MINH CITY | Q2 2013 | OFFICE MARKET
P.4 | Colliers International
Effective rental price lowered with incentives to increase occupancy.
MARKET OVERVIEW
Besides several new small Grade C buildings, there was no notable
new supply in the office market in Q2 2013. The temporary pause in
supply has helped push occupancy up from the last quarter but strong
pressure is still pushing on rent as tenants are more selective and
demanding.
Landlords tended to hold and even increase asking rents at some high
profile buildings; however actually the achievable rents and incentives
are more open for negotiation by landlords. Typically new tenants will
be offered three months rent free and one month for fitting out. But
in some particular cases, to attract multinational anchor tenants, land-
lords are willing to offer much more. This has become a market prac-
tice and tenants have much more power to bargain.
RENT MOVEMENT
Q2 2013 witnessed Grade A asking rent rose 1.6% to US$38.8/ sq m/
month. Grade A market rents found its bottom in the second quarter
last year and since increased if only slightly. However, it should be
noted that rents only went up at the old and mature buildings. Asking
rents at new Grade A buildings kept softening and these landlords is
likely to do whatever it takes to secure new tenants rather than leaving
their buildings vacant.
Grade B and C rents still suffer with the downward pressure as price
is their only bargaining tool. While Grade B rents decreased 0.6% to
US$20.0/ sq m/ month, Grade C went down 2.2% to US$15.4/ sq m/
month. Some new Grade B buildings with attractive rents and decent
quality, including Ree Tower, Empress Building or A&B Tower, man-
aged quick uptake of space.
OCCUPANCY RATE
Occupancy rates for the office market has grown in all three grades.
Grade B showed the strongest improvement in occupancy with 1.7
points up from last quarter. Grade A and Grade C meanwhile showed
modest increases, only 0.9 and 0.1 point respectively. Overall, 87% of
the whole office market in HCMC was already occupied.
It is felt that landlords have succeeded in using pricing tactic to build
up occupancy. However one more important reason is that new supply
has been coming on a slower pace than before, leaving more time for
existing buildings to fill up.
OUTLOOK
Up until 2014 it is expected that new supply will not be the major prob-
lem as some projects being delayed and developers being aware of
market absorption. The issue is on the demand side instead, including
the economic situation and the power of tenants. Tenants will be more
aggressive in negotiating rents and incentives and it seemed that they
are dominating the battle. Achievable rents therefore are expected to
keep softening but occupancy will increase.
www.colliers.com/vietnam
MARKET OVERVIEW
Besides several new small Grade C buildings, there was no
notable new supply in the office market in Q2 2013. The
temporary pause in supply has helped push occupancy up from
the last quarter but strong pressure is still pushing on rent as
tenants are more selective and demanding.
Landlords tended to hold and even increase asking rents at
some high profile buildings; however actually the achievable
rents and incentives are more open for negotiation case by
case. Typically new tenants will be offered three months rent
free and one month for fitting out. But in some particular cases,
to attract multinational anchor tenants, landlords are willing to
offer much more. This has become a market practice and
tenants have much more power to bargain.
RENT MOVEMENT
Q2 2013 witnessed Grade A asking rent rose 1.6% to US$38.8/
sq m/ month. It seemed that Grade A market found its bottom in
the second quarter last year and still enjoyed the short-term up
trend. However, it should be noted that rents only went up at the
old and mature buildings. Asking rents at new Grade A buildings
kept softening and these landlords is likely to do whatever it
takes to secure new tenants rather than leaving their buildings
vacant.
Grade B and C rents still suffered the down trend as price is
their strongest advantage. While Grade B rents decreased 0.6%
to US$20.0/ sq m/ month, Grade C went down 2.2% to US$15.4/
sq m/ month. Some new Grade B buildings with attractive rents
and decent quality, including Ree Tower, Empress Building or
A&B Tower, managed to fill up really quickly.
OCCUPANCY RATE
Occupancy rate brought a brighter picture for the office market
by growing in all three grades. Grade B showed the strongest
improvement in occupancy with 1.7 points up from last quarter.
Grade A and Grade C meanwhile showed modest increases,
only 0.9 and 0.1 point respectively. Overall, 87% of the whole
office market in HCMC was already occupied.
It is felt that landlords have succeeded in using pricing tactic to
build up occupancy. However one more important reason is that
new supply has been coming on a slower pace than before,
leaving more time for existing buildings to fill up.
OUTLOOK
Up until 2014 it is expected that new supply will not be the major
problem as some projects being delayed and developers being
aware of market absorption. The matter is on the demand side
instead, including the economy condition and the belief of
tenants. Realizing their power, tenants will be more aggressive
in negotiating rents and incentives and it seemed that they are
dominating the battle. Achievable rents therefore are expected
to keep softening but occupancy will become healthier.
SUPPLY BY GRADE, Q2 2013
RENTAL RATE BY GRADES, Q2 2013
OCCUPANCY RATE BY GRADES, Q2 2013
ESTIMATED FUTURE SUPPLY
5
Price was sacrificed to fill spaces, along with more rent free and incentives
HO CHI MINH CITY OFFICE MARKET | Q2 2013
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q12013
Q22013
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
5
15
25
35
45
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
US$/sqm/month
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
70%
75%
80%
85%
90%
95%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2013 2014 2015 2016 Onward
Source: Colliers International, Q2 2013
www.colliers.com/vietnam
MARKET OVERVIEW
Besides several new small Grade C buildings, there was no
notable new supply in the office market in Q2 2013. The
temporary pause in supply has helped push occupancy up from
the last quarter but strong pressure is still pushing on rent as
tenants are more selective and demanding.
Landlords tended to hold and even increase asking rents at
some high profile buildings; however actually the achievable
rents and incentives are more open for negotiation case by
case. Typically new tenants will be offered three months rent
free and one month for fitting out. But in some particular cases,
to attract multinational anchor tenants, landlords are willing to
offer much more. This has become a market practice and
tenants have much more power to bargain.
RENT MOVEMENT
Q2 2013 witnessed Grade A asking rent rose 1.6% to US$38.8/
sq m/ month. It seemed that Grade A market found its bottom in
the second quarter last year and still enjoyed the short-term up
trend. However, it should be noted that rents only went up at the
old and mature buildings. Asking rents at new Grade A buildings
kept softening and these landlords is likely to do whatever it
takes to secure new tenants rather than leaving their buildings
vacant.
Grade B and C rents still suffered the down trend as price is
their strongest advantage. While Grade B rents decreased 0.6%
to US$20.0/ sq m/ month, Grade C went down 2.2% to US$15.4/
sq m/ month. Some new Grade B buildings with attractive rents
and decent quality, including Ree Tower, Empress Building or
A&B Tower, managed to fill up really quickly.
OCCUPANCY RATE
Occupancy rate brought a brighter picture for the office market
by growing in all three grades. Grade B showed the strongest
improvement in occupancy with 1.7 points up from last quarter.
Grade A and Grade C meanwhile showed modest increases,
only 0.9 and 0.1 point respectively. Overall, 87% of the whole
office market in HCMC was already occupied.
It is felt that landlords have succeeded in using pricing tactic to
build up occupancy. However one more important reason is that
new supply has been coming on a slower pace than before,
leaving more time for existing buildings to fill up.
OUTLOOK
Up until 2014 it is expected that new supply will not be the major
problem as some projects being delayed and developers being
aware of market absorption. The matter is on the demand side
instead, including the economy condition and the belief of
tenants. Realizing their power, tenants will be more aggressive
in negotiating rents and incentives and it seemed that they are
dominating the battle. Achievable rents therefore are expected
to keep softening but occupancy will become healthier.
SUPPLY BY GRADE, Q2 2013
RENTAL RATE BY GRADES, Q2 2013
OCCUPANCY RATE BY GRADES, Q2 2013
ESTIMATED FUTURE SUPPLY
5
Price was sacrificed to fill spaces, along with more rent free and incentives
HO CHI MINH CITY OFFICE MARKET | Q2 2013
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q12013
Q22013
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
5
15
25
35
45
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
US$/sqm/month
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
70%
75%
80%
85%
90%
95%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2013 2014 2015 2016 Onward
Source: Colliers International, Q2 2013
MARKET OVERVIEW
Besides several new small Grade C buildings, there was no
notable new supply in the office market in Q2 2013. The
temporary pause in supply has helped push occupancy up from
the last quarter but strong pressure is still pushing on rent as
tenants are more selective and demanding.
Landlords tended to hold and even increase asking rents at
some high profile buildings; however actually the achievable
rents and incentives are more open for negotiation case by
case. Typically new tenants will be offered three months rent
free and one month for fitting out. But in some particular cases,
to attract multinational anchor tenants, landlords are willing to
offer much more. This has become a market practice and
tenants have much more power to bargain.
RENT MOVEMENT
Q2 2013 witnessed Grade A asking rent rose 1.6% to US$38.8/
sq m/ month. It seemed that Grade A market found its bottom in
the second quarter last year and still enjoyed the short-term up
trend. However, it should be noted that rents only went up at the
old and mature buildings. Asking rents at new Grade A buildings
kept softening and these landlords is likely to do whatever it
takes to secure new tenants rather than leaving their buildings
vacant.
Grade B and C rents still suffered the down trend as price is
their strongest advantage. While Grade B rents decreased 0.6%
to US$20.0/ sq m/ month, Grade C went down 2.2% to US$15.4/
sq m/ month. Some new Grade B buildings with attractive rents
and decent quality, including Ree Tower, Empress Building or
A&B Tower, managed to fill up really quickly.
OCCUPANCY RATE
Occupancy rate brought a brighter picture for the office market
by growing in all three grades. Grade B showed the strongest
improvement in occupancy with 1.7 points up from last quarter.
Grade A and Grade C meanwhile showed modest increases,
only 0.9 and 0.1 point respectively. Overall, 87% of the whole
office market in HCMC was already occupied.
It is felt that landlords have succeeded in using pricing tactic to
build up occupancy. However one more important reason is that
new supply has been coming on a slower pace than before,
leaving more time for existing buildings to fill up.
OUTLOOK
Up until 2014 it is expected that new supply will not be the major
problem as some projects being delayed and developers being
aware of market absorption. The matter is on the demand side
instead, including the economy condition and the belief of
tenants. Realizing their power, tenants will be more aggressive
in negotiating rents and incentives and it seemed that they are
dominating the battle. Achievable rents therefore are expected
to keep softening but occupancy will become healthier.
SUPPLY BY GRADE, Q2 2013
RENTAL RATE BY GRADES, Q2 2013
OCCUPANCY RATE BY GRADES, Q2 2013
ESTIMATED FUTURE SUPPLY
Price was sacrificed to fill spaces, along with more rent free and incentives
HO CHI MINH CITY OFFICE MARKET | Q2 2013
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q12013
Q22013
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
5
15
25
35
45
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
US$/sqm/month
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
70%
75%
80%
85%
90%
95%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2013 2014 2015 2016 Onward
Source: Colliers International, Q2 2013
MARKET OVERVIEW
Besides several new small Grade C buildings, there was no
notable new supply in the office market in Q2 2013. The
temporary pause in supply has helped push occupancy up from
the last quarter but strong pressure is still pushing on rent as
tenants are more selective and demanding.
Landlords tended to hold and even increase asking rents at
some high profile buildings; however actually the achievable
rents and incentives are more open for negotiation case by
case. Typically new tenants will be offered three months rent
free and one month for fitting out. But in some particular cases,
to attract multinational anchor tenants, landlords are willing to
offer much more. This has become a market practice and
tenants have much more power to bargain.
RENT MOVEMENT
Q2 2013 witnessed Grade A asking rent rose 1.6% to US$38.8/
sq m/ month. It seemed that Grade A market found its bottom in
the second quarter last year and still enjoyed the short-term up
trend. However, it should be noted that rents only went up at the
old and mature buildings. Asking rents at new Grade A buildings
kept softening and these landlords is likely to do whatever it
takes to secure new tenants rather than leaving their buildings
vacant.
Grade B and C rents still suffered the down trend as price is
their strongest advantage. While Grade B rents decreased 0.6%
to US$20.0/ sq m/ month, Grade C went down 2.2% to US$15.4/
sq m/ month. Some new Grade B buildings with attractive rents
and decent quality, including Ree Tower, Empress Building or
A&B Tower, managed to fill up really quickly.
OCCUPANCY RATE
Occupancy rate brought a brighter picture for the office market
by growing in all three grades. Grade B showed the strongest
improvement in occupancy with 1.7 points up from last quarter.
Grade A and Grade C meanwhile showed modest increases,
only 0.9 and 0.1 point respectively. Overall, 87% of the whole
office market in HCMC was already occupied.
It is felt that landlords have succeeded in using pricing tactic to
build up occupancy. However one more important reason is that
new supply has been coming on a slower pace than before,
leaving more time for existing buildings to fill up.
OUTLOOK
Up until 2014 it is expected that new supply will not be the major
problem as some projects being delayed and developers being
aware of market absorption. The matter is on the demand side
instead, including the economy condition and the belief of
tenants. Realizing their power, tenants will be more aggressive
in negotiating rents and incentives and it seemed that they are
dominating the battle. Achievable rents therefore are expected
to keep softening but occupancy will become healthier.
SUPPLY BY GRADE, Q2 2013
RENTAL RATE BY GRADES, Q2 2013
OCCUPANCY RATE BY GRADES, Q2 2013
ESTIMATED FUTURE SUPPLY
Price was sacrificed to fill spaces, along with more rent free and incentives
HO CHI MINH CITY OFFICE MARKET | Q2 2013
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q12013
Q22013
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
5
15
25
35
45
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
US$/sqm/month
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
70%
75%
80%
85%
90%
95%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
Source: Colliers International, Q2 2013
Grade A Grade B Grade C
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2013 2014 2015 2016 Onward
Source: Colliers International, Q2 2013

7. HANOI | Q2 2013 | OFFICE MARKET
Limited uptake of space due to less demand and oversupply
MARKET OVERVIEW
During Q2 2013, six new office buildings came online in Hanoi, bringing
the total supply to approximately 1.5 million sq m NFA. These include two
Grade A buildings in Hoan Kiem and four grade B buildings in the West
(new CBD), bringing the supply up over 100,000 sq m.
As more supply has been coming online, rents continue to be a concern
for owners and developers. Tenants now have the motivation to move out
of old buildings in the CBD to higher quality and less expensive options
in outlying districts. Those with 5 years contract from the thirst of office
space in 2008-2009 now coming for better choices. Landlord are fighting
to keep their current tenants as well as attracting new one. Many innova-
tive incentives have been offered around the places to keep a decent, fair
price among all tenants yet attractive enough for new or renew contracts.
Property management probably would play more and more important role
on retain a better tenant list as service is directly affect the daily life and
representation of all offices.
GRADE A MOVEMENT
During Q2 2013 Grade A rents remained steady since the end of last year.
Rent was recorded at US$38.70/ sq m/ month, which was almost
unchanged q-o-q since the beginning of the year, however, there are
incentives that ease up situation for companies during the hard time
of the economy.
Excluding the new buildings, Grade A have maintain occupancy rate since
last year. Average occupancy in the Grade A market was at around
72%. Some Grade A buildings with more flexible negotiation on con-
tract and better sales scheme continue to absorb new tenants as well
as retain their own reaching their 90% occupancy rate. Grade A in the
West side filling up almost 10,000 sq m with their space with aggres-
sive strategy.
GRADE B MOVEMENT
Grade B segment continued on a downward slope, with average rents
lowering from US$20.70/ sq m/ month in Q1 2013 to US$17/ sq m.
The average occupancy saw an decrease of 7 percentage points, down
to 73% in this quarter. This was due to new building coming to the
market. Without them the occupancy rate would remain about same as
last quarter. With landlords lowering their rents to fill up their space.
OUTLOOK
A significant amount of supply of over 150,000 sq m will come online
through the end of the year. As a “tradition” in Hanoi, the new landlord
is very confident about their buildings, with high price and no key ten-
ants, new buildings in Hanoi usually suffer low occupancy rate at the
beginning as a result.
P2 | COLLIERS INTERNATIONAL
www.colliers.com/vietnam
MARKET OVERVIEW
During Q2 2013, six new office buildings came online in Hanoi,
bringing the total supply to approximately 1.5 million sq m NFA.
These include two Grade A buildings in Hoan Kiem and four
grade B buildings in the West (new CBD), bringing the supply up
over 100,000 sq m.
As more supply has been coming online, rents continue to be a
top concern. Tenants now have the motivation to move out of
old buildings in the CBD to higher quality and less expensive
options in outlying districts. Those with 5 years contract from the
thirst of office space in 2008-2009 now coming for better
choices. Landlord are fighting to keep their current tenants as
well as attracting new one. Many innovative incentives have
been offered around the places to keep a decent, fair price
among all tenants yet attractive enough for new or renew
contracts. Property management probably would play more and
more important role on retain a better tenant list as service is
directly affect the daily life and representation of all offices.
GRADE A MOVEMENT
During Q2 2013 Grade A rents remained steady since the end of
last year. Rent was recorded at US$38.70/ sq m/ month, which
was almost unchanged q-o-q since the beginning of the year,
however, there are incentives that ease up situation for
companies during the hard time of the economy.
Excluding the new buildings, Grade A have maintain occupancy
rate since last year. Average occupancy in the Grade A market
was at around 72%. Some Grade A buildings with more flexible
negotiation on contract and better sales scheme continue to
absorb new tenants as well as retain their own reaching their
90% occupancy rate. Grade A in the West side filling up almost
10,000 sq m with their space with aggressive strategy.
GRADE B MOVEMENT
Grade B segment continued on their slop downward, with
average rents lowering from US$20.70/ sq m/ month in Q1 2013
to US$17/ sq m.
The average occupancy saw an decrease of 7 percentage
points, down to 73% in this quarter. This was due to new
building coming to the market. Without them the occupancy rate
would remain about same as last quarter. With landlords
lowering their rents to fill up their space.
OUTLOOK
A significant amount of supply of over 150,000 sq m will come
online through the end of the year. As a “tradition” in Hanoi, the
new landlord is very confident about their buildings, with high
price and no key tenants, new buildings in Hanoi usually suffer
low occupancy rate at the beginning.
GRADE A OFFICE PERFORMANCE
ESTIMATED FUTURE SUPPLY
GRADE B OFFICE PERFORMANCE
SUPPLY BY GRADE, Q2 2013
6
Source: Colliers International, Q2 2013
The market is struggling to fill up vacant spaces
HANOI OFFICE MARKET | Q2 2013
0
80,000
160,000
240,000
320,000
400,000
480,000
Cau
Giay
Ba
Dinh
Hai Ba
Trung
Tu
Liem
Thanh
Xuan
Dong
Da
Hoan
Kiem
Ha
Dong
Others
sqm
Source:Colliers International,Q2 2013
P2 | COLLIERS INTERNATIONAL
MARKET OVERVIEW
During Q2 2013, six new office buildings came online in Hanoi,
bringing the total supply to approximately 1.5 million sq m NFA.
These include two Grade A buildings in Hoan Kiem and four
grade B buildings in the West (new CBD), bringing the supply up
over 100,000 sq m.
As more supply has been coming online, rents continue to be a
top concern. Tenants now have the motivation to move out of
old buildings in the CBD to higher quality and less expensive
options in outlying districts. Those with 5 years contract from the
thirst of office space in 2008-2009 now coming for better
choices. Landlord are fighting to keep their current tenants as
well as attracting new one. Many innovative incentives have
been offered around the places to keep a decent, fair price
among all tenants yet attractive enough for new or renew
contracts. Property management probably would play more and
more important role on retain a better tenant list as service is
directly affect the daily life and representation of all offices.
GRADE A MOVEMENT
During Q2 2013 Grade A rents remained steady since the end of
last year. Rent was recorded at US$38.70/ sq m/ month, which
was almost unchanged q-o-q since the beginning of the year,
however, there are incentives that ease up situation for
companies during the hard time of the economy.
Excluding the new buildings, Grade A have maintain occupancy
rate since last year. Average occupancy in the Grade A market
was at around 72%. Some Grade A buildings with more flexible
negotiation on contract and better sales scheme continue to
absorb new tenants as well as retain their own reaching their
90% occupancy rate. Grade A in the West side filling up almost
10,000 sq m with their space with aggressive strategy.
GRADE B MOVEMENT
Grade B segment continued on their slop downward, with
average rents lowering from US$20.70/ sq m/ month in Q1 2013
to US$17/ sq m.
The average occupancy saw an decrease of 7 percentage
points, down to 73% in this quarter. This was due to new
building coming to the market. Without them the occupancy rate
would remain about same as last quarter. With landlords
lowering their rents to fill up their space.
OUTLOOK
A significant amount of supply of over 150,000 sq m will come
online through the end of the year. As a “tradition” in Hanoi, the
new landlord is very confident about their buildings, with high
price and no key tenants, new buildings in Hanoi usually suffer
low occupancy rate at the beginning.
GRADE A OFFICE PERFORMANCE
ESTIMATED FUTURE SUPPLY
GRADE B OFFICE PERFORMANCE
SUPPLY BY GRADE, Q2 2013
Source: Colliers International, Q2 2013
The market is struggling to fill up vacant spaces
HANOI OFFICE MARKET | Q2 2013
0
80,000
160,000
240,000
320,000
400,000
480,000
Cau
Giay
Ba
Dinh
Hai Ba
Trung
Tu
Liem
Thanh
Xuan
Dong
Da
Hoan
Kiem
Ha
Dong
Others
sqm
Source:Colliers International,Q2 2013
MARKET OVERVIEW
During Q2 2013, six new office buildings came online in Hanoi,
bringing the total supply to approximately 1.5 million sq m NFA.
These include two Grade A buildings in Hoan Kiem and four
grade B buildings in the West (new CBD), bringing the supply up
over 100,000 sq m.
As more supply has been coming online, rents continue to be a
top concern. Tenants now have the motivation to move out of
old buildings in the CBD to higher quality and less expensive
options in outlying districts. Those with 5 years contract from the
thirst of office space in 2008-2009 now coming for better
choices. Landlord are fighting to keep their current tenants as
well as attracting new one. Many innovative incentives have
been offered around the places to keep a decent, fair price
among all tenants yet attractive enough for new or renew
contracts. Property management probably would play more and
more important role on retain a better tenant list as service is
directly affect the daily life and representation of all offices.
GRADE A MOVEMENT
During Q2 2013 Grade A rents remained steady since the end of
last year. Rent was recorded at US$38.70/ sq m/ month, which
was almost unchanged q-o-q since the beginning of the year,
however, there are incentives that ease up situation for
companies during the hard time of the economy.
Excluding the new buildings, Grade A have maintain occupancy
rate since last year. Average occupancy in the Grade A market
was at around 72%. Some Grade A buildings with more flexible
negotiation on contract and better sales scheme continue to
absorb new tenants as well as retain their own reaching their
90% occupancy rate. Grade A in the West side filling up almost
10,000 sq m with their space with aggressive strategy.
GRADE B MOVEMENT
Grade B segment continued on their slop downward, with
average rents lowering from US$20.70/ sq m/ month in Q1 2013
to US$17/ sq m.
The average occupancy saw an decrease of 7 percentage
points, down to 73% in this quarter. This was due to new
building coming to the market. Without them the occupancy rate
would remain about same as last quarter. With landlords
lowering their rents to fill up their space.
OUTLOOK
A significant amount of supply of over 150,000 sq m will come
online through the end of the year. As a “tradition” in Hanoi, the
new landlord is very confident about their buildings, with high
price and no key tenants, new buildings in Hanoi usually suffer
low occupancy rate at the beginning.
GRADE A OFFICE PERFORMANCE
ESTIMATED FUTURE SUPPLY
GRADE B OFFICE PERFORMANCE
SUPPLY BY GRADE, Q2 2013
Source: Colliers International, Q2 2013
The market is struggling to fill up vacant spaces
HANOI OFFICE MARKET | Q2 2013
0
80,000
160,000
240,000
320,000
400,000
480,000
Cau
Giay
Ba
Dinh
Hai Ba
Trung
Tu
Liem
Thanh
Xuan
Dong
Da
Hoan
Kiem
Ha
Dong
Others
sqm
Source:Colliers International,Q2 2013
MARKET OVERVIEW
During Q2 2013, six new office buildings came online in Hanoi,
bringing the total supply to approximately 1.5 million sq m NFA.
These include two Grade A buildings in Hoan Kiem and four
grade B buildings in the West (new CBD), bringing the supply up
over 100,000 sq m.
As more supply has been coming online, rents continue to be a
top concern. Tenants now have the motivation to move out of
old buildings in the CBD to higher quality and less expensive
options in outlying districts. Those with 5 years contract from the
thirst of office space in 2008-2009 now coming for better
choices. Landlord are fighting to keep their current tenants as
well as attracting new one. Many innovative incentives have
been offered around the places to keep a decent, fair price
among all tenants yet attractive enough for new or renew
contracts. Property management probably would play more and
more important role on retain a better tenant list as service is
directly affect the daily life and representation of all offices.
GRADE A MOVEMENT
During Q2 2013 Grade A rents remained steady since the end of
last year. Rent was recorded at US$38.70/ sq m/ month, which
was almost unchanged q-o-q since the beginning of the year,
however, there are incentives that ease up situation for
companies during the hard time of the economy.
Excluding the new buildings, Grade A have maintain occupancy
rate since last year. Average occupancy in the Grade A market
was at around 72%. Some Grade A buildings with more flexible
negotiation on contract and better sales scheme continue to
absorb new tenants as well as retain their own reaching their
90% occupancy rate. Grade A in the West side filling up almost
10,000 sq m with their space with aggressive strategy.
GRADE B MOVEMENT
Grade B segment continued on their slop downward, with
average rents lowering from US$20.70/ sq m/ month in Q1 2013
to US$17/ sq m.
The average occupancy saw an decrease of 7 percentage
points, down to 73% in this quarter. This was due to new
building coming to the market. Without them the occupancy rate
would remain about same as last quarter. With landlords
lowering their rents to fill up their space.
OUTLOOK
A significant amount of supply of over 150,000 sq m will come
online through the end of the year. As a “tradition” in Hanoi, the
new landlord is very confident about their buildings, with high
price and no key tenants, new buildings in Hanoi usually suffer
low occupancy rate at the beginning.
GRADE A OFFICE PERFORMANCE
ESTIMATED FUTURE SUPPLY
GRADE B OFFICE PERFORMANCE
SUPPLY BY GRADE, Q2 2013
Source: Colliers International, Q2 2013
The market is struggling to fill up vacant spaces
HANOI OFFICE MARKET | Q2 2013
0
80,000
160,000
240,000
320,000
400,000
480,000
Cau
Giay
Ba
Dinh
Hai Ba
Trung
Tu
Liem
Thanh
Xuan
Dong
Da
Hoan
Kiem
Ha
Dong
Others
sqm
Source:Colliers International,Q2 2013
P.5 | Colliers International

8. HO CHI MINH CITY | Q2 2013 | RETAIL MARKET
P.6 | Colliers International
Decrease in public spending, tenants downsizing , closing or re-negotiating leases
MARKET OVERVIEW
There was no new supply in the retail market in Q2 2013, even several
developments looked almost ready to open. It is likely that they are
waiting for a better time for grand opening as currently the economy
is still moving quite slow. Meanwhile the existing retail malls experi-
enced a very difficult quarter with occupancy significantly decreased
as tenants are moving out.
However it is good to note that HCMC remains an attractive destina-
tion for foreign retailers. In May, NTUC FairPrice, a large retailer from
Singapore, started their operation in HCMC by forming a joint ven-
ture with domestic retailer Saigon Co.op to set up a new supermarket
chain. The joint venture opened their first hypermarket called Co-op
Xtra in Thu Duc District with much larger scale than the normal Co.op
supermarkets.
Most lately, in the middle of July, the world’s most famous fast food
chain, McDonald’s, has officially announced their appearance in Viet-
nam through a franchise to Good Day Hospitality Company. Their first
restaurant will be opened in early 2014 and will serve all McDonald’s
popular menu.
MARKET PERFORMANCE
Average rents continued to decrease in Q2 2013 by 3% to US$49.7/
sq m/ month. More important, occupancy showed a notable drop by 4
percent points from 89.6% in the last quarter.
Only the department stores managed to maintain their rent at US$60.8/
sq m/ month thanks to stable high occupancy at nearly 100%. Podium
sector meanwhile suffered slight decline with rent decreasing 3.1% to
US$54.1/ sq m/ month and occupancy down to 64.6%. Besides, shop-
ping malls recorded rent softened by 4.5% to US$46.6/ sq m/ month
but occupancy still dropped dramatically 7 points to 84%. This was
mostly due to lots of tenants at the two Vincom buildings have moved
out because of bad business result.
This proved that as the society is tightening budget on retail goods and
services, retail developments are facing lots of difficulties. Therefore,
several malls planned to close for renovation or even changed to an-
other business, particularly the Alta Plaza in Tan Binh District which
was turned into a convention center and Thien Son Plaza in District 7
was closed to restructure.
OUTLOOK
Approximately 100,000 sm of retail space is waiting to come online
until the end of the year and therefore a strong pressure is expected
to put on the market performance. Consequently hope is all on the
demand side, as the Government is loosening the policies to encourage
the society purchasing power. However these efforts are not likely to
take effect in a short time; therefore retail rent is believed to continue
its down trend. Retail malls who locate outside the CBD will need to
think of new way to attract foot traffic such as F&B area, cinema com-
plex and popular anchor tenants.
www.colliers.com/vietnam
MARKET OVERVIEW
There was no new supply in the retail market in Q2 2013, even
several developments looked almost ready to open. It is likely
that they are waiting for a better time for grand opening as
currently the economy is still moving quite slow. Meanwhile the
existing retail malls experienced a very difficult quarter with
occupancy significantly decreased as tenants are moving out.
However it is good to note that HCMC remains an attractive
destination for foreign retailers. In May, NTUC FairPrice, a large
retailer from Singapore, started their operation in HCMC by
forming a joint venture with domestic retailer Saigon Co.op to
set up a new supermarket chain. The joint venture opened their
first hypermarket called Co-op Xtra in Thu Duc District with
much larger scale than the normal Co.op supermarkets.
Most lately, in the middle of July, the world most famous fast
food chain, McDonald’s, has officially announced their
appearance in Vietnam through a franchise to Good Day
Hospitality Company. Their first restaurant will be opened in
early 2014 and will serve all McDonald’s popular menu.
MARKET PERFORMANCE
Average rents continued to decrease in Q2 2013 by 3% to
US$49.7/ sq m/ month. More important, occupancy showed a
notable drop by 4 percent points from 89.6% in the last quarter.
Only the department stores managed to maintain their rent at
US$60.8/ sq m/ month thanks to stable high occupancy at nearly
100%. Podium sector meanwhile suffered slight decline with rent
decreasing 3.1% to US$54.1/ sq m/ month and occupancy down
to 64.6%. Besides, shopping malls recorded rent softened by
4.5% to US$46.6/ sq m/ month but occupancy still dropped
dramatically 7 points to 84%. This was mostly due to lots of
tenants at the two Vincom buildings have moved out because of
bad business result.
This proved that as the society is tightening budget on retail
goods and services, retail developments are facing lots of
difficulties. Therefore, several malls planned to close for
renovation or even changed to another business, particularly the
Alta Plaza in Tan Binh District which was turned into a
convention center and Thien Son Plaza in District 7 was closed
to restructure.
OUTLOOK
Approximately 100,000 sm of retail space is waiting to come online
until the end of the year and therefore a strong pressure is expected
to put on the market performance. Consequently hope is all on the
demand side, as the Government is loosening the policies to
encourage the society purchasing power. However these efforts are
not likely to take effect in a short time; therefore retail rent is
believed to continue its down trend. Retail malls who locate outside
the CBD will need to think of new way to attract foot traffic such as
F&B area, cinema complex and popular anchor tenants.
EXISTING SUPPLY, Q2 2013
AVERAGE MARKET PERFORMANCE
PERFORMANCE BY TYPES, Q2 2013
ESTIMATED FUTURE SUPPLY
7
Tough economy, less spending, more tenants were closing their stores
HO CHI MINH CITY RETAIL MARKET | Q2 2013
-
100,000
200,000
300,000
400,000
500,000
600,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Colliers International, Q2 2012
Podium Department store Shopping centre
40.0
45.0
50.0
55.0
60.0
75.0%
80.0%
85.0%
90.0%
95.0%
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
US$ sq m/ month
Source: Colliers International, Q2 2013
Average occupancy Average rent
30.0
40.0
50.0
60.0
70.0
80.0
90.0
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
Podium Department store Shopping centre
Source: Colliers International, Q2 2013
US$ sq m/ month
Average occupancy Average rent
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2013 2014 2015 2016 Onward
Source: Colliers International, Q2 2013
www.colliers.com/vietnam
MARKET OVERVIEW
There was no new supply in the retail market in Q2 2013, even
several developments looked almost ready to open. It is likely
that they are waiting for a better time for grand opening as
currently the economy is still moving quite slow. Meanwhile the
existing retail malls experienced a very difficult quarter with
occupancy significantly decreased as tenants are moving out.
However it is good to note that HCMC remains an attractive
destination for foreign retailers. In May, NTUC FairPrice, a large
retailer from Singapore, started their operation in HCMC by
forming a joint venture with domestic retailer Saigon Co.op to
set up a new supermarket chain. The joint venture opened their
first hypermarket called Co-op Xtra in Thu Duc District with
much larger scale than the normal Co.op supermarkets.
Most lately, in the middle of July, the world most famous fast
food chain, McDonald’s, has officially announced their
appearance in Vietnam through a franchise to Good Day
Hospitality Company. Their first restaurant will be opened in
early 2014 and will serve all McDonald’s popular menu.
MARKET PERFORMANCE
Average rents continued to decrease in Q2 2013 by 3% to
US$49.7/ sq m/ month. More important, occupancy showed a
notable drop by 4 percent points from 89.6% in the last quarter.
Only the department stores managed to maintain their rent at
US$60.8/ sq m/ month thanks to stable high occupancy at nearly
100%. Podium sector meanwhile suffered slight decline with rent
decreasing 3.1% to US$54.1/ sq m/ month and occupancy down
to 64.6%. Besides, shopping malls recorded rent softened by
4.5% to US$46.6/ sq m/ month but occupancy still dropped
dramatically 7 points to 84%. This was mostly due to lots of
tenants at the two Vincom buildings have moved out because of
bad business result.
This proved that as the society is tightening budget on retail
goods and services, retail developments are facing lots of
difficulties. Therefore, several malls planned to close for
renovation or even changed to another business, particularly the
Alta Plaza in Tan Binh District which was turned into a
convention center and Thien Son Plaza in District 7 was closed
to restructure.
OUTLOOK
Approximately 100,000 sm of retail space is waiting to come online
until the end of the year and therefore a strong pressure is expected
to put on the market performance. Consequently hope is all on the
demand side, as the Government is loosening the policies to
encourage the society purchasing power. However these efforts are
not likely to take effect in a short time; therefore retail rent is
believed to continue its down trend. Retail malls who locate outside
the CBD will need to think of new way to attract foot traffic such as
F&B area, cinema complex and popular anchor tenants.
EXISTING SUPPLY, Q2 2013
AVERAGE MARKET PERFORMANCE
PERFORMANCE BY TYPES, Q2 2013
ESTIMATED FUTURE SUPPLY
7
Tough economy, less spending, more tenants were closing their stores
HO CHI MINH CITY RETAIL MARKET | Q2 2013
-
100,000
200,000
300,000
400,000
500,000
600,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Colliers International, Q2 2012
Podium Department store Shopping centre
40.0
45.0
50.0
55.0
60.0
75.0%
80.0%
85.0%
90.0%
95.0%
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
US$ sq m/ month
Source: Colliers International, Q2 2013
Average occupancy Average rent
30.0
40.0
50.0
60.0
70.0
80.0
90.0
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
Podium Department store Shopping centre
Source: Colliers International, Q2 2013
US$ sq m/ month
Average occupancy Average rent
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2013 2014 2015 2016 Onward
Source: Colliers International, Q2 2013
MARKET OVERVIEW
There was no new supply in the retail market in Q2 2013, even
several developments looked almost ready to open. It is likely
that they are waiting for a better time for grand opening as
currently the economy is still moving quite slow. Meanwhile the
existing retail malls experienced a very difficult quarter with
occupancy significantly decreased as tenants are moving out.
However it is good to note that HCMC remains an attractive
destination for foreign retailers. In May, NTUC FairPrice, a large
retailer from Singapore, started their operation in HCMC by
forming a joint venture with domestic retailer Saigon Co.op to
set up a new supermarket chain. The joint venture opened their
first hypermarket called Co-op Xtra in Thu Duc District with
much larger scale than the normal Co.op supermarkets.
Most lately, in the middle of July, the world most famous fast
food chain, McDonald’s, has officially announced their
appearance in Vietnam through a franchise to Good Day
Hospitality Company. Their first restaurant will be opened in
early 2014 and will serve all McDonald’s popular menu.
MARKET PERFORMANCE
Average rents continued to decrease in Q2 2013 by 3% to
US$49.7/ sq m/ month. More important, occupancy showed a
notable drop by 4 percent points from 89.6% in the last quarter.
Only the department stores managed to maintain their rent at
US$60.8/ sq m/ month thanks to stable high occupancy at nearly
100%. Podium sector meanwhile suffered slight decline with rent
decreasing 3.1% to US$54.1/ sq m/ month and occupancy down
to 64.6%. Besides, shopping malls recorded rent softened by
4.5% to US$46.6/ sq m/ month but occupancy still dropped
dramatically 7 points to 84%. This was mostly due to lots of
tenants at the two Vincom buildings have moved out because of
bad business result.
This proved that as the society is tightening budget on retail
goods and services, retail developments are facing lots of
difficulties. Therefore, several malls planned to close for
renovation or even changed to another business, particularly the
Alta Plaza in Tan Binh District which was turned into a
convention center and Thien Son Plaza in District 7 was closed
to restructure.
OUTLOOK
Approximately 100,000 sm of retail space is waiting to come online
until the end of the year and therefore a strong pressure is expected
to put on the market performance. Consequently hope is all on the
demand side, as the Government is loosening the policies to
encourage the society purchasing power. However these efforts are
not likely to take effect in a short time; therefore retail rent is
believed to continue its down trend. Retail malls who locate outside
the CBD will need to think of new way to attract foot traffic such as
F&B area, cinema complex and popular anchor tenants.
EXISTING SUPPLY, Q2 2013
AVERAGE MARKET PERFORMANCE
PERFORMANCE BY TYPES, Q2 2013
ESTIMATED FUTURE SUPPLY
Tough economy, less spending, more tenants were closing their stores
HO CHI MINH CITY RETAIL MARKET | Q2 2013
-
100,000
200,000
300,000
400,000
500,000
600,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Colliers International, Q2 2012
Podium Department store Shopping centre
40.0
45.0
50.0
55.0
60.0
75.0%
80.0%
85.0%
90.0%
95.0%
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
US$ sq m/ month
Source: Colliers International, Q2 2013
Average occupancy Average rent
30.0
40.0
50.0
60.0
70.0
80.0
90.0
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
Podium Department store Shopping centre
Source: Colliers International, Q2 2013
US$ sq m/ month
Average occupancy Average rent
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2013 2014 2015 2016 Onward
Source: Colliers International, Q2 2013
MARKET OVERVIEW
There was no new supply in the retail market in Q2 2013, even
several developments looked almost ready to open. It is likely
that they are waiting for a better time for grand opening as
currently the economy is still moving quite slow. Meanwhile the
existing retail malls experienced a very difficult quarter with
occupancy significantly decreased as tenants are moving out.
However it is good to note that HCMC remains an attractive
destination for foreign retailers. In May, NTUC FairPrice, a large
retailer from Singapore, started their operation in HCMC by
forming a joint venture with domestic retailer Saigon Co.op to
set up a new supermarket chain. The joint venture opened their
first hypermarket called Co-op Xtra in Thu Duc District with
much larger scale than the normal Co.op supermarkets.
Most lately, in the middle of July, the world most famous fast
food chain, McDonald’s, has officially announced their
appearance in Vietnam through a franchise to Good Day
Hospitality Company. Their first restaurant will be opened in
early 2014 and will serve all McDonald’s popular menu.
MARKET PERFORMANCE
Average rents continued to decrease in Q2 2013 by 3% to
US$49.7/ sq m/ month. More important, occupancy showed a
notable drop by 4 percent points from 89.6% in the last quarter.
Only the department stores managed to maintain their rent at
US$60.8/ sq m/ month thanks to stable high occupancy at nearly
100%. Podium sector meanwhile suffered slight decline with rent
decreasing 3.1% to US$54.1/ sq m/ month and occupancy down
to 64.6%. Besides, shopping malls recorded rent softened by
4.5% to US$46.6/ sq m/ month but occupancy still dropped
dramatically 7 points to 84%. This was mostly due to lots of
tenants at the two Vincom buildings have moved out because of
bad business result.
This proved that as the society is tightening budget on retail
goods and services, retail developments are facing lots of
difficulties. Therefore, several malls planned to close for
renovation or even changed to another business, particularly the
Alta Plaza in Tan Binh District which was turned into a
convention center and Thien Son Plaza in District 7 was closed
to restructure.
OUTLOOK
Approximately 100,000 sm of retail space is waiting to come online
until the end of the year and therefore a strong pressure is expected
to put on the market performance. Consequently hope is all on the
demand side, as the Government is loosening the policies to
encourage the society purchasing power. However these efforts are
not likely to take effect in a short time; therefore retail rent is
believed to continue its down trend. Retail malls who locate outside
the CBD will need to think of new way to attract foot traffic such as
F&B area, cinema complex and popular anchor tenants.
EXISTING SUPPLY, Q2 2013
AVERAGE MARKET PERFORMANCE
PERFORMANCE BY TYPES, Q2 2013
ESTIMATED FUTURE SUPPLY
Tough economy, less spending, more tenants were closing their stores
HO CHI MINH CITY RETAIL MARKET | Q2 2013
-
100,000
200,000
300,000
400,000
500,000
600,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Colliers International, Q2 2012
Podium Department store Shopping centre
40.0
45.0
50.0
55.0
60.0
75.0%
80.0%
85.0%
90.0%
95.0%
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
US$ sq m/ month
Source: Colliers International, Q2 2013
Average occupancy Average rent
30.0
40.0
50.0
60.0
70.0
80.0
90.0
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
Podium Department store Shopping centre
Source: Colliers International, Q2 2013
US$ sq m/ month
Average occupancy Average rent
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2013 2014 2015 2016 Onward
Source: Colliers International, Q2 2013