Download Vietnam Property Market Monitor - Q4 2012
- 1. /pulse/Vietnam Property Market Monitor4Q12Vietnam Nearly one million out of work: According to the Labour Force Key Economic IndicatorsSurvey Report 2012, nearly one million workers remained GDP Growthunemployed. The unemployment rate was higher in urban areas than (2012, y-o-y, in real terms)5.03%in the countryside, showing 3.3% and 1.4% the first three quarters ofCPI Growth9.21%2012, respectively.(2012, y-o-y) The central bank announces minimum lending rate: The minimum Trade Surplus0.25% (2012, % of export)lending rate will be lowered to 12% after 24 December. The Index of Industrial Productionrefinancing and discount rates will drop to 9% and 7% per year, 4.80% (2012, y-o-y)respectively. The actions are part of the efforts of the central bank to Retail Sales Growth6.20%ease the difficulties working against businesses.(2012, y-o-y, in real terms) International Visitor Growth Vietnam FDI disbursements approach USD 11 billion: According to 9.50% (2012, y-o-y)the Ministry of Planning and Investment’s Foreign Investment Agency,FDI disbursements reached about USD 10.46 billion in 2012, lower Source: General Statistics Office, Jones Lang LaSalle Research, 4Q12than the USD 11 billion seen in 2011. Remittances flow into the nation at a fast pace: According to theWorld Bank’s remittance report update for 2012 released last Key Investment TransactionsNovember, the remittances going to Vietnam this year were forecast toNamePrice ($ mil)be USD 9 billion, ranking the country ninth of the top 10 recipients ofGia Phu Apartment- 12.0migrant remittances worldwide. HCMCHo Chi Minh City (HCMC)Source: Jones Lang LaSalle Research, 4Q12 The city’s CPI increases upwards by 0.17%: HCMC’s CPI wasestimated to have increased by 0.17% in December, extending thecity’s 2012 CPI to 4.07%. Garments and footwear saw the sharpest rise of 0.96%, followed by household appliancesand goods. Culture entertainment and tourism increased just 0.29% even at year end. Manufacturing Purchasing Managers’ Index (PMI) rises to a 14-month high: According to HSBC Vietnam,November’s Manufacturing PMI stayed above the neutral 50.5 value for the first time, reaching the highest levelrecorded in 14 months. The improvement in operating conditions indicates that both production levels and neworders resumed in November. Spain cuts funding for Metro Line No. 5: As Spain is experiencing a debt crisis, the country can only provide EUR200 million (USD 256 million) to fund HCMC’s Metro Line No. 5 project instead of the EUR 500 million previouslyplanned. However, Spain plans to help HCMC access other sources of capital, such as banks in Europe. The MetroLine No. 5 project will be developed with total investment capital of some USD 1.85 billion. As Spain’s ODA is onlyequal to around 40% of the amount needed for Phase 1 of the project, HCMC will have to look for additional funding. Big C Pandora opened: On 4 November 2012, Big C Truong Chinh, the chain’s sixth supermarket in HCMC,opened at No.1/1 Truong Chinh Street, Tan Phu District. Big C Truong Chinh occupies over 12,000 sqm on the firstand second floors of Pandora City. Launched during 4Q12 in the Tan Phu District, Pandora City is the newestshopping centre to enter HCMC and features Big C, Megastar and branded food and beverage outlets. Ascott expands in Vietnam with new properties: Ascott announced that it was awarded a contract to manage aserviced residence in HCMC. Under the contract, the new 100-unit Somerset Vista is slated to open in December.The project is part of The Vista, which is being developed by an alliance formed between CapitaLand, Thien DucTrading Construction Company and Phu Gia Investment JSC. Ascot will also manage Vista Residence, a 168-unitproperty within The Vista.