Real estate market

Minister of Construction Nguyen Thanh Nghi said the ministry will change the policies related to the development of affordable housing by adopting a new mindset.

Trinh Tuan Anh, a resident in District 2, Ho Chi Minh City plans to invest VND6 billion ($260,870) in real estate, in a townhouse in the satellite area of Ho Chi Minh City to capitalise on lucrative opportunities in this area. He will spend part of his money and borrow the remaining 50-60 per cent from a bank to pay for the townhouse. He believes that property prices are currently attractive in some potential areas while the bank lending rates are reasonable.

With real estate being the most profitable investment channel, low interest rates drive buyers towards bank loans to buy property

The low interest-rate level helps drive property demand. Several individual investors are pouring capital into the real estate market by taking advantage of financial leverage from bank loans as well as their own savings.

A representative of a real estate firm in Ho Chi Minh City said that with real estate being the most profitable investment channel for investors and low-interest rates, buyers are pinning high hopes on the bank loans to buy property projects, especialy those with bank guarantee.

In addition, the State Bank of Vietnam (SBV) promulgated Circular No.08/2020/TT-NHNN on amending and supplementing a number of articles of Circular No.22/2019/TT-NHNN dated November 15, 2019 by the Governor of the SBV on prescribing limits and prudential ratios in the operations of banks and foreign bank branches. Accordingly, the maximum ratio of short-term capital sources until the end of September 30, 2021 of foreign banks is 40 per cent and from October 1, 2023 it will be adjusted to 30 per cent.

“Banks will be more cautious in screening and selecting real estate projects to provide financial and credit products for both investors and buyers,” Trinh said.

With the roadmap of implementing credit-tightening regulations on real estate, banks will offer gurantees for projects developed by capable and reliable developers which have high chances of success in the future.

The real estate market has recently witnessed several tie-ups between banks and developers, including Novaland Group and Vietinbank – one of the four largest state-owned commercial banks of Vietnam. In the first phase of the partnership, VietinBank will provide capital for Novaland’s mergers and acquisitions (M&A) activities of component projects in eco-smart city Aqua City in Dong Nai. Tourism real estate projects like NovaWorld Phan Thiet (Binh Thuan) and NovaWorld Ho Tram (Ba Ria-Vung Tau) will continue to be researched and elicit cooperation under the contents of this strategic cooperation contract.

The tie-up between Novaland and VietinBank will create synergies for both sides as well as the whole real estate market

Vietinbank’s credit package not only offers Novaland more cost-effective financial solutions but also improves the returns for investors. At the same time, investors will have an opportunity to enjoy better interest rates than the market average, reduce liquidity risks, and optimise cash flow for investors.

Giants shake hands to investors’ benefit

The tie-ups make sense as the real estate market shows signs of recovery from the COVID-19 pandemic. Thanks to the successful containment of the pandemic, the real estate market remains stable with more positive sentiments and balanced supply and demand. There has been a growing trend of residents moving to satellite cities around Ho Chi Minh City in line with suburbanisation and urban upgrade policies. Therefore, buyers have a lot more choices in terms of products and financial support from banks.

In the first stage of strategic cooperation, VietinBank provides home loan services at Eco-smart city Aqua City ( Dong Nai)

In particular, VietinBank will provide preeminent financial sponsorship packages for the individual customers of Novaland while cooperating with Novaland to develop preferential credit package policies for its employees and customers who transact at Novaland and vice versa.

VietinBank will provide a full range of products and services: working capital needs, medium- and long-term loans, loan guarantees for Novaland’s contractors, factoring, international payment; at the same time providing service packages, payment, card issuance, domestic and international money transfer for Novaland and its member units, among others, with a competitive credit policy, pricing, and fees. VietinBank and its members will also be given priority to use convenient services in Nova Group’s ecosystem such as resort tourism, healthcare, education, and entertainment.

Tran Minh Binh, general director of VietinBank said that the strategic cooperation agreement between VietinBank and Novaland will strengthen cooperation at a higher level between the two units through financial services, banking, technology, brand name communication, joint venture, association, and supporting each other to expand and develop business activities.

“The specific programme will be implemented with suitable goals for each phase through the signing of separate agreements and contracts,” he said.

Aqua City is the first project benefiting from the partnership. Covering an area of 1,000 hectares, this is one of the most remarkable urban complexes in the eastern part of Ho Chi Minh City developed Novaland. Phoenix Island in Aqua City, which is the first island urban model, is attracting thousands of visitors weekly. The project not only captures the market’s attention but also creates a driving force for the landed property market in Eastern Ho Chi Minh City in the past two years.

In light of the partnership between Novaland and VietinBank, buyers of townhouses, villas, and shophouses in Phoenix will enjoy better interest rates and other incentives to reduce opportunity costs and liquidity risks while earning higher returns in the future.

From April 1, 2021, Aqua City applies a special promotion programme. With initial capital from only VND820 million (35,650), buyers can pay 30 per cent of the product value until handover. Buyers also receive a cheque worth VND100 million ($4,350), preferential discounts of up to VND80 million ($3,480) for Novaland shareholders, as well as many other attractive incentives. To receive attractive investment opportunities or discover the prosperous ecological living space at Pheonix, please visit the project website or call the hotline 0943797979 for detailed information.

The Indochina Kajima joint venture will be assisted by VietinBank’s know-how in financial services and more

With an investment commitment of $1 billion in Vietnam, Indochina Kajima aims to develop a portfolio of resorts, urban hotels, residential areas, offices, and industrial projects. It is committed to creating innovative real estate, enriching the communities in which it operates.

The company’s first statement in Vietnam is Wink Hotels – a chic, fun, vibrant hotel brand born in Vietnam for Vietnam with a pipeline of over 20 hotels across the nation. Indochina Kajima last month celebrated the opening of Wink Hotel Saigon Centre in District 1, which was followed by a groundbreaking ceremony for a luxury resort project in Bai Nom, in the central province of Phu Yen.

The company is also looking to develop industrial and logistics real estate in major markets such as Ho Chi Minh City, Haiphong, Bac Ninh, Danang, Vinh Phuc, Dong Nai, and Binh Duong.

“This partnership aims to strengthen cooperation at a higher level between Indochina Kajima and VietinBank in activities including financial services, banking services, branding, and communications,” said VietinBank CEO Tran Minh Binh “Both companies will leverage advantages and strengths to support one another in our business expansion and development, in compliance with the laws.”

Indochina Capital CEO Peter Ryder added, “Indochina Kajima has a clear strategy that addresses the current and future demands of the market while maintaining unwavering commitment to architectural excellence, environmental sustainability, and social responsibility. We believe all our developments are more than just a building or a brand, but all part of a lifestyle movement, changing the way people travel, work and live. We are proud to have VietinBank join us as a strategic partner in this transformational journey.”

VietinBank is a leading commercial bank in Vietnam in terms of total assets and accounting for nearly 12 per cent of lending market share, with stable capital and a solid customer base. VietinBank has maintained its position as a key commercial bank, a major contributor to the development of Vietnam’s banking industry, and to the socioeconomic development of the nation.

VietinBank has been a partner to Indochina Kajima in various projects and the bank will be providing banking and financial services to Indochina Kajima’s future projects in Haiphong, Hanoi, and Phu Yen, among others

Indochina Capital, founded in 1999, is one of Vietnam’s leading real estate advisory, investment, and development companies with a portfolio of iconic landmarks including the Four Seasons the Nam Hai, Six Senses Con Dao, Hyatt Regency Danang, Indochina Plaza Hanoi, and Indochina Riverside Towers Danang.

Founded back in 1840, Kajima Corporation is one of Japan’s top contractors and real estate developers with a global footprint including some of the world’s most iconic properties, such as the Four Seasons Hualalai in Hawaii, Saint Endréol Resort in France, and Senayan Square in Jakarta.

Indochina Capital first entered into a joint venture with Kajima Corporation in 2016. to launch real estate development platform Indochina Kajima. The venture is fully committed to creating innovative real estate developments that build value for partners, clients, and investors, while providing fulfilling opportunities for employees and enriching the communities in which it operates.

The central coast province defines tourism as a key economic sector, expecting it would make up 14% of the province’s GDP by 2025.

The central province of Phu Yen is emerging as an attractive market for real estate investment, especially in large-scale hospitality projects.

Two luxury resort complexes of Xuan Dai Bay and Crystal Holidays Marina Phu Yen. Photo: Everland Group

This April, the province witnessed construction of two luxury resort complexes of Xuan Dai Bay and Crystal Holidays Marina Phu Yen kicked off in Xuan Dai ward, Song Cau town.

Built in an area of 37 ha, the two international-standard resort tourism projects of Everland Group have a total investment of VND2.2 trillion (US$95.1 million). The complexes will provide nearly 1,000 hotel rooms and 200 villas for the hospitality market.

The biggest advantage of the projects is the scenic views of Xuan Dai Bay national landscape and Vung Lam relic they offered to  their guests.

Becoming top holiday destination

Attending the opening ceremony held recently in Phu Yen, Nguyen Trung Khanh, General Director of the Vietnam National Administration of Tourism said: “The decision of the Vietnamese company to invest in the project in the Xuan Dai Bay area is a perfectly right direction, as it will tap into the location with picturesque natural landscapes.”

The projects are in line with the province’s tourism development strategy under the motto of conservation, embellishment and sustainable exploitation of natural resources, especially marine ones, Khanh said.

“Phu Yen defines tourism as a key economic sector, expecting it would make up 14% of the province’s GDP by 2025,” Tran Huu The, Chairman of the Phu Yen Provincial People’s Committee said. “The local authority will have many attractive policies to attract big tourism projects here.”

In recent years, the province has promoted investment in infrastructure development and tourism. Tuy Hoa airport has been upgraded and expanded with an annual capacity of five million passengers and able to accommodate wide-body aircraft. In addition, the widened traffic routes would shorten the travel time between Phu Yen and other provinces, will also give travel agents more convenience in scheduling tours.

Condotel Apec Mandala Grand Phu Yen resort project. Photo: Apec Group

Thanks to these advantages, many large domestic and foreign real estate corporations are implementing a series of large-scale real estate projects.

In early April, Indochina Kajima, a joint-venture between Indochina Capital, the real estate developer in Vietnam and Kajima Corporation, the Japanese general contractor and real estate developer kicked off a US$1-billion luxury resort project at Bai Nom beach.

Peter Ryder, General Director of Indochina Capital expected the project will turn Phu Yen into one of Asia’s top holiday destinations.

Last year, Phu Yen attracted 43 new projects with a total capital of VND8.8 trillion (US$383.7 million).

Typical projects are Vingroup-owned commercial center and townhouse project at Tuy Hoa city, the five-star Condotel Apec Mandala Grand Phu Yen resort project with a capital of more than VND1.1 trillion (US$47.6 million) invested by Apec Group, TH True Milk Group-invested complex of golf course, eco-villa and resort with an area of more than 1,000ha.

Le Dinh Vinh, Chairman and General Director of Everland Group, expected the company’s project will contribute to positioning Song Cau brand and the province on the global tourism map.

Becamex IDC was awarded as one of the Top 10 Prestigious Industrial Real Estate Companies

The Top 10 Prestigious Industrial Real Estate Companies are assessed and ranked by Vietnam Report and media partners based on three important criteria, including financial capacity shown in the most recent financial statements, media prestige evaluated via the media coding method – encoding articles related to the company on influential media channels, as well as the survey of relevent stakeholders in February and March 2021.

The recognition reflects the incessant efforts of Becamex IDC in the challenges caused by the COVID-19 pandemic, which affects all industrial park and real estate development. However, the company has achieved its business targets, spent billions of dongs on corporate social responsibility activities like supporting residents suffering natural disaster damages, taking care of heroic Vietnamese mothers, and building houses for disadvantaged people. The company also provides some relief measures for tenants and workers by reducing management and housing fees.

With over 30 years of experience in industrial and urban infrastructure development, Becamex IDC has achieved tremendous success in Binh Duong. The company has replicated the successful models across the country, making significant contributions to the socio-economic development of other provinces.

There are some of the core values making Becamex IDC a reputable brand. It lies on the company’s strategy to develop integrated townships and industrial parks associated with trade and services, social housing, and resettlement areas. Becamex’s projects are surrounded by high-quality transportation as well as healthcare and education ecosystems to meet the needs of all walks of life. The self-contained complex is its unique selling point, creating added value for both investors and residents.

Placing people at the centre of all of its strategies, Becamex IDC values the role of citizens and investors whether in site clearance compensation or investment promotion activities. Thus, the company takes the responsibility of building a complete and sustainable ecosystem for people to settle down and lead a better life.

Becamex IDC is a pioneer in developing social housing projects in Binh Duong to meet the residential demand of workers in industrial zones. The company has so far developed 120,000 such apartments for around 300,000 across Binh Duong such as Dinh Hoa, Hoa Loi (Thu Dau Mot city), Viet-Sing (Thuan An city), My Phuoc (Ben Cat town), and Bau Bang (Bau Bang district).

The social housing projects are developed with beautiful landscapes and on-site amenities like parks, sports areas, and flower gardens. They have both areas for rent and for sale at preferential prices with financial support from banks. The projects are surrounded by urban areas, high-end and modern apartment buildings, serving the needs of investors and residents.

VSIP Group, a joint venture between Becamex IDC and Sembcorp (Singapore), came second

In addition, Becamex IDC is known as Vietnam’s leading transport infrastructure developer. In Binh Duong, the company has built transport projects connecting townships and industrial zones in Binh Duong with the neighbouring provinces to improve connectivity in the key southern economic zone. The well-connected transport system has shortened logistics costs for investors, lower products costs, as well as increase Binh Duong’s competitiveness to lure investors and talents.

Some notable projects include the expansion of National Highway 13; projects connecting with Ring Road 2, 3, and 4; the project to renovate and upgrade the landscape of My Phuoc-Tan Van road; and North Tan Uyen-Phu Giao-Bau Bang route. In addition, Becamex IDC focuses on developing Bus Rapid Transit connecting with urban areas.

The company continues to work with JICA to negotiate funding for the extension project of Ben Thanh-Suoi Tien Metro Line to Binh Duong and Dong Nai. The company is carrying out projects of inland container depot – An Tay River Port as well as inter-regional freight railway project of Binh Phuoc-Binh Duong-Ho Chi Minh City-Dong Nai and Ba Ria-Vung Tau.

Becamex IDC also places an emphasis on education to support high-quality workforce development. The company has invested in a comprehensive education system at many levels, from preschool to university, typically the development of Eastern International University (EIU) in line with international standard.

Other projects include Becamex Business Incubator, Industry 4.0 Lab, Open Library at EIU, Fablab, and Techlab, which lays the foundations to create an innovative ecosystem in Binh Duong. Thanks to these efforts, Binh Duong has now joined the global innovation startup chain through cooperation with Block71 of the National University of Singapore.

Becamex has invested in two international hospitals namely My Phuoc General Hospital and Becamex International Hospital with 1,000 beds each. The hospitals are equipped with modern equipment, experienced doctors and medical staff to meet the healthcare needs of workers, experts, and residents in the locality.

Furthermore, the company has actively organised community activities to improve the spiritual lives of residents. Some programmes like Japan Cultural Festival, local football tournaments as well as Becamex Cup have created a healthy playground for workers and local people. Meanwhile, Becamex’s running programme to welcome the New Year has also attracted thousands of runners.

The integrated townships and industrial parks invested by Becamex IDC have set an example for other companies to follow suit. The company has actively entered into strategic cooperations with major domestic and foreign partners such as Sembcorp Group (Singapore) in the field of foreign investment attraction for industrial development; Tokyu Corporation (Japan) to promote services and urban development; NTT Group (Japan) in the field of IT and telecommunications infrastructure development; Warburg Pincus (US) implemented new models of logistics and cross-border e-commerce.

Becamex IDC has a team of highly qualified staff with foreign language skills. The company has marketing teams in many countries across all continents from Asia to Europe and the Americas. Becamex IDC not only approaches multinational businesses but also proactively works with domestic and international organisations and diplomatic missions to ensure fast and accurate communications in both offline and online channels.

In addition, Becamex IDC regularly coordinates with the People’s Committees of provinces to actively implement investment promotion seminars and conferences, supporting the connection between authorities, businesses, and employees to solve the problems of investors as well as ensuring the sustainable livelihoods of people.

Recently, Becamex IDC has developed key performance indicators (KPIs) for the entire corporation. The company is also striving to build a culture of innovation, fully digitise the whole system, as well as adopt the environmental quality management system according to ISO 14001-2015 standards.

At the same time, Becamex IDC continues to update and upgrade new ecosystems to meet the requirements of the digital economy era and the Fourth Industrial Revolution. It commits to accompanying with Binh Duong province to implement the Smart City project, Binh Duong innovation area, as well as develop high-quality services in Binh Duong New City.

The business strategy and achievements are the reason why Vietnam Report and its media partners select Becamex IDC to be in the Top 10 Prestigious Industrial Real Estate Companies in 2021. The award is also the result of Becamex’s continuous innovation and creativity to create prosperous and sustainable values. It once again confirms the company’s great contribution to the socio-economic development of the locality, the region, and the whole country.