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Terrific demand for high-grade apartments
15:55' 11/11/2006 (GMT+7)
Soạn: HA 951965 gửi đến 996 để nhận ảnh này

VietNamNet Bridge – While the real estate market remains stagnant with low purchasing power, the high-grade apartment segment is turning away customers.

Recently, investors in well-known apartment buildings in Hanoi, including Bitexco’s ‘The Manor’ and ‘The Garden’ or Ciputra, have even decided to raise the selling prices.

The decision seems be contrary to the current situation, while many houses and apartments are unable to find customers. However, the investors have every reason to do that. Though Bitexco has raised the selling prices of the apartments at The Manor and The Garden by 5-20%, there are always more clients than apartments for sale.

David Arnsdorff, Director of Nam Thang Long Urban Area Development Company, said that the company had decided to inject money in two 300-apartment ‘The Parkland’ towers after it had finished the first stage of investment in the area. The apartment prices at the two towers are higher than that at the buildings completed before. He said that 50% of the apartments have already been sold.

Analysts said that the stagnant market does not mean that people do not have demand for accommodation. Investors who can provide good quality products can always sell their products.

Bitexco, who runs ‘The Manor’ and ‘The Garden’, is a successful investor. It aimed to build high-grade apartments from the beginning, and at the time when the construction started, many experts warned that the apartments would be unmarketable because they would be unaffordable for many people. Moreover, a surplus of luxurious apartments was also predicted as the construction of many other apartment buildings was also kick started at that time.

However, Bitexco’s apartments, contrary to all predictions, have always had a lot of customers despite the fact that the investor has three times raised the selling prices. A source said that 80% of the apartments have been sold.

Le Phuong My Linh, Deputy Director General of Bitexco, said that only a few apartments for sale were left to date. At first, the company did not intend to sell these apartments, which are located in the best positions, but planned to lease them. However, it has decided to sell the said apartments after considering the demands of clients.

According to David Arnsdorff, many of his clients are Vietnamese people who are ready to pay a lot of money for good apartments with beautiful interior facilities and good services.

Mr Arnsdoff’s words have effaced the belief that Vietnamese people could not afford high-grade products. This way of thinking has prompted many investors to make investment in projects with low and medium-class facilities, and the reality shows that they have made unwise investment deals, because the apartments of this kind prove to be unmarketable.

Phuoc Ha

Originally Posted by chouchou

Terrific demand for high-grade apartments
15:55' 11/11/2006 (GMT+7)
Soạn: HA 951965 gửi đến 996 để nhận ảnh này

VietNamNet Bridge – While the real estate market remains stagnant with low purchasing power, the high-grade apartment segment is turning away customers.
Recently, investors in well-known apartment buildings in Hanoi, including Bitexco’s ‘The Manor’ and ‘The Garden’ or Ciputra, have even decided to raise the selling prices.

The decision seems be contrary to the current situation, while many houses and apartments are unable to find customers. However, the investors have every reason to do that. Though Bitexco has raised the selling prices of the apartments at The Manor and The Garden by 5-20%, there are always more clients than apartments for sale.

David Arnsdorff, Director of Nam Thang Long Urban Area Development Company, said that the company had decided to inject money in two 300-apartment ‘The Parkland’ towers after it had finished the first stage of investment in the area. The apartment prices at the two towers are higher than that at the buildings completed before. He said that 50% of the apartments have already been sold.

Analysts said that the stagnant market does not mean that people do not have demand for accommodation. Investors who can provide good quality products can always sell their products.

Bitexco, who runs ‘The Manor’ and ‘The Garden’, is a successful investor. It aimed to build high-grade apartments from the beginning, and at the time when the construction started, many experts warned that the apartments would be unmarketable because they would be unaffordable for many people. Moreover, a surplus of luxurious apartments was also predicted as the construction of many other apartment buildings was also kick started at that time.

However, Bitexco’s apartments, contrary to all predictions, have always had a lot of customers despite the fact that the investor has three times raised the selling prices. A source said that 80% of the apartments have been sold.

Le Phuong My Linh, Deputy Director General of Bitexco, said that only a few apartments for sale were left to date. At first, the company did not intend to sell these apartments, which are located in the best positions, but planned to lease them. However, it has decided to sell the said apartments after considering the demands of clients.

According to David Arnsdorff, many of his clients are Vietnamese people who are ready to pay a lot of money for good apartments with beautiful interior facilities and good services.

Mr Arnsdoff’s words have effaced the belief that Vietnamese people could not afford high-grade products. This way of thinking has prompted many investors to make investment in projects with low and medium-class facilities, and the reality shows that they have made unwise investment deals, because the apartments of this kind prove to be unmarketable.

Phuoc Ha

Thank you Chouchou for this extract originated from Phuoc Ha.

In short, I can add further to this remarkable development that occurs in most emerging markets and regions facing similar Realty Market situations and this perception is by no means any different with Vietnam.

Guided by the belief that expensive accommodations are beyond the reach of most locals is a typical reflection of not knowing adequately about the strength and attracting power lavish and quality built accommodations result eventually!

This is no less a typical scenario where the first round of buyers are indeed locals with ample resources to accomplish their purchasing power not only to be in the forefront to prove their successful status but to be quick to reside among the affluent foreign community by mingling between their richly enacted confines of such influential neighbours, hence, beg borrow or steal or simply working extra hard, they can cough up the projected housing prices and hang on to it for a profitable resale value after 3-5 years!!! Yes, that is the scenario we are aware and experience seeing it happening in Thailand, Hong Kong and Singapore respectively.

Expat Executives are hurriedly moving in by then and the least they want to be caught up with is the haggle over prices of newly acquired luxury property esp again, now take this into consideration too, highly positioned executives are moving in for a good period say, 4-6 years and with that, one of their perks are luxury accommodations usually subsidized by their Corporate budget!!!

Do you now grasp the Property picture?

It is true, Vietnam is still in its infancy stages but the bug is already catching on...and so will the price for every square meter and we are of course, referring to the higher segment districts both urban and suburban locations.

This is also typical in Thailand where I am now heading for. Fortunately for me as well, I have my plot of land reserved "within " our own large area owned by our company and so far, most of the current settlers (neighbours in fact) I can say are enterprising businessmen and several local Thais who we encouraged allowing them to mingle among the many luxury villas built by our company....on our own developed property!!!

As for Vietnam...I'd say to you too, GO FOR IT... coz you have the edge against others contemplating at this early stage of Vietnam's restructuring and development plan gradually increasing and supported by the Communist Govt....fortunately!

YB. - cheers to ALL of you that are smart and "wise" to head for the Far East instead... buy several luxury homes or apartments while it is affordable and with the profits... well, enjoy it like sustaining the lifestyle you still wish to maintain back in your own homeland, pay for the kids education, re-invest again etc...

Please help me along here. Current rate for the Dong against the dollar is?

Live mid-market rates as of 2006.11.13 02:43:15 UTC.
1.00 USD
United States Dollars = 16,104.50 VND
Vietnam Dong
1 USD = 16,104.50 VND 1 VND = 0.0000620944 USD

WTO General Director to talk with Vietnamese entrepreneurs
10:54' 13/11/2006 (GMT+7)

Mr Pascal Lamy.
VietNamNet Bridge - The talk between Pascal Lamy, who will come to Vietnam at the invitation of the APEC Business Advisory Council (ABAC) and Vietnamese businessmen will take place for an hour and a half on November 15.

Hoang Van Dung, Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCC) has confirmed this information. He said that the talk would be a chance for Vietnamese businesses to understand more about the WTO when Vietnam has just become a member of this organization, and to make careful preparations for the challenges and opportunities brought about by integration.

Two significant economic forums
Mr Dung said that the operations of ABAC under the framework of the 14th APEC Summit would be very busy and interesting, including the Doing Business with Vietnam Forum 2006, the CEO Summit 2006 and the dialogue to APEC leaders, etc.

Notably, the Doing Business with Vietnam Forum 2006, which is scheduled on November 16, with four sessions and 27 speakers, will be an opportunity to introduce potential investment opportunities in Vietnam. At the forum, scholars, legislators and businessmen will also contribute opinions to Vietnam in economic development. Prime Minister Nguyen Tan Dung has accepted the invitation to deliver the opening speech of the forum.

According to Mr Dung, this is the first and the only time in Vietnam that 700 foreign companies have come to Vietnam at the same time to learn about the business opportunities in the country. Some 400 Vietnamese firms will also take part in the events. Local and foreign companies will meet for one day to discuss the following: how to create a good business environment, the strategy to develop Vietnam’s industry in the post-WTO period, and international trade development.

The APEC CEO Summit on November 17-18 will include five sessions, with 44 speakers. At this time, 12 chiefs of state have agreed to attend and speak at the conference, including Chinese President Hu Jintao, Singaporean Prime Minister Lee Hsein Loong , Japanese Prime Minister Shinzo Abe, and Australian Prime Minister John Howord.

ABAC to submit nine proposals to APEC leaders
On this occasion, ABAC will submit to APEC leaders nine proposals. The most importing thing is calling APEC leaders to take the lead in resuming the Doha round of negotiations and to boost trade.

Other recommendations included taking measures to respond to the imbalance in energy, promoting uniform and high-quality sub-regional and bilateral trade agreements, developing the private sector, and strengthening the financial system.

Mr Dung said that the ABAC will also make recommendations related to epidemic and natural disaster prevention and control, and trade and business security to APEC economic leaders.

APEC 2006 will be an opportunity for Vietnamese businesses to expand their international cooperation and integration, catch up with the world's economic development trends and join with businesses of other APEC members in building a more supportive business environment, he said.

Ha Yen

New waves of investment to come to Vietnam after APEC
14:34' 13/11/2006 (GMT+7)

Mr Nguyen Dy Nien.
VietNamNet Bridge - Vietnam has three ‘peaks’, organizing the 14th APEC summit, WTO accession, and being nominated as an impermanent member of the US Security Council, said former Foreign Minister Nguyen Dy Nien.

According to Mr Nien, the successful organization of the 14th APEC Summit will help enhance the position of Vietnam in the world arena and new waves of investment may come to Vietnam after the 14th APEC Summit.

You have been a diplomat for many years, in your opinion, what will the host country enjoy after successfully organizing the 14th APEC Summit?

The latest example is the case of the Republic of Korea (RoK). After successfully holding the 13th APEC Summit, this country’s position was enhanced. The clearest thing is its Foreign Minister has been selected as the UN Secretary General. The voice of the RoK in the international community is louder.

All host countries prepare very carefully for the APEC Summits because this is not only the conference of the leaders of APEC economies but it also the conference of world leading economic groups. That’s why APEC Summits are very meaningful for host countries, as it can open opportunities for investment and cooperation.

I think this year Vietnam has three ‘peaks”, including the organisation of the 14th APEC Summit, joining the World Trade Organisation (WTO), and being appointed as an impermanent member of the US Security Council. Successful organization of 14th APEC Summit will strenghten the position of Vietnam.

APEC’s commitments are not mandatory so how will member economies realize the Hanoi programme of action?

Last year’s conference in Busan, RoK, mapped out the plan for APEC. This year’s conference will clarify the above plan by the Hanoi plan of action with 14 points. Unobligatory action is also a good thing because it is based on volition, while the volition must be based on the interest of each nation. Therefore, the action plan must facilitate and benefit all economies when it is implemented.

On the occasion of the 14th APEC Summit, the leaders of powerful countries like the US, Russia, China and Japan will pay official visits to Vietnam. What would we expect from those bilateral visits?

Normally the host countries of APEC restricts bilateral visits during the conference because the working schedule is too busy. Some other countries also want to pay official visits to Vietnam on this occasion but we can only welcome some chiefs of state. Each bilateral meeting will mark a new landmark in the ties among countries.

During those visits, powerful countries want to take advantage of the Vietnamese market, which has a lot of potential with a population of more than 80 million and a high economic growth rate. Meanwhile, Vietnam also wants to attract foreign investment and boost economic cooperation.

The upcoming visit of the US President to Vietnam is considered the longest one of Mr Bush so far. What comments do you have about this event?

Mr Bush rarely visits a country for more than 3 days. This time he will stay for four days in Vietnam. I think this detail proves the significance of Vietnam-US relations. This is also the second official visit of a US President to Vietnam, after the first by President Clinton in 2001. In this period, both sides want to close the past, and cooperate for development.

Escorting the US President will be hundreds of companies, including CEOs of leading groups like Citigroup, AIG, Visa, Fedex, General Motor, Microsoft, Time Warner, AT&T, Boeing, etc. This is a rare opportunities for local companies to meet and seek cooperation opportunities with them.

Some experts said that it is unlikely that the US will grant the permanent normal trade relations (PNTR) for Vietnam before APEC. What do you think about this issue?

As I know, the US government and many senators want to quickly grant PNTR to Vietnam. However, along with changes in the US political arena, some said that the US Congress will not approve PNTR for Vietnam before APEC 14. However, we still wait for the latest changes.

(Source: VNE)

US President to visit Vietnam
07:45' 13/11/2006 (GMT+7)
VietNamNet Bridge - US President George W. Bush, and his wife, will make an official visit to Vietnam from Nov. 17-20, announced the Foreign Ministry on Nov. 12.

The visit will be made at the invitation of President Nguyen Minh Triet.

This will be the second official visit to Vietnam by US leaders. The first visit was made by President Bill Clinton in 2000.

Establishing diplomatic ties on July 12, 1995, the two countries have exchanged high-level visits, including Prime Minister Phan Van Khai's official visit to the US in June 2005, which paved the way for a framework of constructive, friendly, multi-faceted, stable and long-term partnership between the two countries.

Apart from the exchange of visits, the two countries' leaders also held meetings on the sidelines of multilateral forums.

Economic and trade ties between Vietnam and the US have been developing with positive signs.

Since the enactment of the Bilateral Trade Agreement (BTA), two-way trade has soared drastically, reaching $7.8 billion in 2005, five-fold over that of 2001 ($1.5 billion).

So far, the US has $2 billion in direct investment in Vietnam, ranking ninth among investors from the countries and territories investing in Vietnam. However, if investment via third countries is included, the US's total investment capital is around $4 billion .

Since the beginning of this year, a great number of giant US companies and groups visited Vietnam to seek business and investment opportunities.

Prominent were a delegation of the US-Vietnam Business Council comprising 21 leading companies, Chairman of Microsoft Corporation Bill Gates, and a delegation from the Intel Group which poured investment into a plant to assemble and examine semiconductors at the Hi-tech Zone in Ho Chi Minh City.

At present, more than 1,000 US entrepreneurs are doing business in Vietnam.

Last year, Vietnam welcomed 333,500 American holiday makers, who made up the second largest group of tourists in Vietnam. The first five months of this year welcomed 162,800 US arrivals, 23.5 percent higher than the same period last year.

The two countries signed some accords and agreements concerning economics, including the bilateral trade agreement, the clothing and textile agreement, and an agreement on science and technology cooperation.

On May 31, 2006, Vietnam and the US signed an agreement on the conclusion of bilateral negotiations on Vietnam's accession to the World Trade Organisation (WTO).

While continuing to implement the agreements signed during Prime Minister Phan Van Khai's US visit, the two countries have concurrently expanded cooperation in specific areas.

Cooperation in health care has been stepped up, focusing on the fight against HIV/AIDS and bird flu.

In 2004, President Bush announced Vietnam's addition into the list of 15 prioritised countries to receive its emergency aid for combating HIV/AIDS.

The US President's announcement was followed by the US government's decision to increase the amount of aid for Vietnam's HIV/AIDS prevention and control programme to 34 million in 2006. The US government also decided to grant Vietnam $6.5 million for fighting bird flu.

In total, the US has granted over $60 million in aid to Vietnam in 2006 and plans to increase the sum to 67 million in 2007.

On humanitarian issues left by the war, Vietnam has been cooperating effectively with the US in searching for US servicemen missing in action (MIA).

Meanwhile, the US has collaborated with Vietnam in supplying information to assist in the search for Vietnamese who went missing during the war, organising conferences on Agent Orange, implementing a programme to clear unexploded mines and bombs, growing plants and supporting war victims.

Positive developments were also noticed in the two countries' military ties, with the exchange of visits of senior officers to promote mutual understanding. Since 2003, US naval ships docked at Vietnamese ports annually as part of activities within bilateral cooperation framework.

Currently Vietnam is cooperating with the US in specific fields in combating terrorism.

Vietnam has requested the US government coordinate in preventing and punishing those individuals as well as organisations conducting terrorist acts against Vietnam.

(Source: VNA)

APEC 2006: Vietnam signs $2bil in contracts
17:03' 16/11/2006 (GMT+7)
Soạn: HA 957605 gửi đến 996 để nhận ảnh này

VietNamNet Bridge – The ceremony for the signing of eight big contracts and agreements between Vietnamese enterprises and foreign investors took place this morning during the ‘Doing business with Vietnam 2006’ forum.

These contracts are worth $2bil. They are as follows:

1. An agreement between the Vietnam Chamber of Commerce and Industry (VCCI) and the US Chamber of Commerce and Industry on strengthening support for Vietnam’s business circle and fostering the trade relationship between Vietnam and the US.

2. A contract on building the Mong Duong 2 thermo-power plant under the model of BOT (build – operation – transfer) between the Vietnam Coal and Mineral Group and the US-based AES Transpower. The US side will contribute 90% of the total capital of $1.4bil.

3. A project on cooperating to develop a tourism complex and golf course between Vietnam’s King Valley Company and the Republic of Korea’s Hanwha worth $150mil.

4. An agreement on cooperating to upgrade Cai Lan port between Vinalines and SSA Marine worth $100mil.

5. A project on setting up a joint venture between Vietnam’s Saigon Invest Group and Malaysia’s V.S. Industry Berhad and Hong Kong’s V.S International Group Ltd, which is expected to have the total capital of $200mil. The joint venture will operate in the fields of high technologies, automobile manufacturing, urban area and trade centre development.

6. A credit loan worth $15mil between Truong Thinh Company in the central province of Quang Binh and the US-based NRG, which will be used to develop the ecological Sun Spa Resort.

7. A contract on distributing oil products used for VTV 24-7 automobile engines between Truong Thinh Company and US-based NRG with the expected value of $125mil in five years.

8. An agreement on cooperation between Microsoft Vietnam and VDC and VIP Vietnam on the development of the project on SNM information electronic portal.

All these contracts and agreements were signed under the watch of Prime Minister Nguyen Tan Dung.

On this occasion, Minister of Finance Vu Van Ninh handed over a licence to establish a non-life insurance business to ACE and Liberty Mutual.

Ha Yen

Vietnam to benefit from EU's programme
08:06' 18/11/2006 (GMT+7)
Soạn: HA 959433 gửi đến 996 để nhận ảnh này

VietNamNet Bridge - Vietnam will be benefited from the new 7th European Union Framework Programme (FP7) for Research and Technological Development.

This is said at an information session, organised in Hanoi today by the Delegation of the European Commission to Vietnam, on the European Union’s 7th Framework Programme for Research and Technological Development.

The Framework Programmes are the EU's chief instrument for funding scientific research and technological development. Vietnam has benefited significantly from previous Framework Programmes, and is expected to become a major partner also under the 7th Programme (FP7). This programme, with a total allocation of 50.5 bn euro, will be implemented from 2007 to 2013 with four programmes on Co-operation, Ideas, People, and Capacities.

Vietnam is the third most important Asian beneficiary of previous EU Framework Programmes after China and India. So far, it has participated in 42 projects on a multilateral basis, with a total value of 26 million euro, in areas such as health, agriculture and environment.

Mr Christoph Wiesner, Chargé d'affaires of the Delegation of the European Commission to Vietnam said, “The Framework Programmes have contributed much to building a knowledge-based partnership between the EU and Vietnam, by reinforcing research collaboration and technology transfer. Building on these past successes, Vietnam has a strong potential to become a prime player under the FP7.”

(Source: Nhan Dan)

Vietnam opens doors widely to foreign seaport investors
10:50' 17/11/2006 (GMT+7)
Soạn: HA 958311 gửi đến 996 để nhận ảnh này

VietNamNet Bridge – When joining the WTO, Vietnam committed to opening the doors to foreign seaport investors, calling for foreign investment in the maritime sector with just small limits on business modes.

Under WTO rules, there are three levels of maritime market opening, and Vietnam has chosen the third level for its market opening: the country will open its doors very widely to foreign investors.

Under the commitments Vietnam has made, foreign investors can do business in the maritime sector under the modes of joint venture (with Vietnamese partners) or BOT (build – operation – transfer).

Vietnamese partners must contribute 51% of capital in joint ventures, while the other 49% can be put in by foreign partners. However, the proportions of capital contribution may be adjusted in specific cases, considering the conditions of the projects and the demand for seaport system development at that time.

Deputy Head of the Planning and Investment Section of the Vietnam Maritime Bureau Tran Quoc Hiep said that Vietnam had been getting prepared for global integration in the maritime sector for years. Investors in this sector have been getting adapted to international laws. In fact, the Maritime Law was brought into the world sooner than the Investment Law was.

HCM City’ Lotus seaport Director General Mai Xuan Thieu is optimistic about the maritime industry development in the WTO era. He has said that WTO membership is the golden opportunity to develop seaports in Vietnam.

Secretary General of the Freight Forwarding Association Vu Xuan Phong shared the same view, saying that Vietnam, sooner or later, should open the market for foreign investors as it cannot protect local enterprises any more.

It is expected that by 2010 some 200mil tones of goods will go through Vietnam’s seaports. The figure is expected to rise to 340mil tones in the next 10 years. In order to satisfy such a high demand for transportation, Vietnam will have to raise the receiving capacity by two times by 2010, and four times by 2020, which means that some 15 or 20 km of wharfs must be built.

Vietnam hopes that in some years, 75% of the total goods of Asia will go through domestic seaports. And it is the right time for Vietnam to begin constructing big and modern seaports able to receive big tonnage ships.

According to the programme on seaport development approved by the Government, Vietnam will upgrade the existing seaports and build new seaports in order to have nine general ports, three international gateway ports and one transit port in Van Phong bay in Nha Trang City in the central province of Khanh Hoa. The seaport system is believed to big enough to meet the increased demand for goods transportation.

In order to implement the development programme, Vietnam will need VND60tril, or $4bil. It is estimated that some $3bil will be used to develop seaports in the central region in a bid to strengthen the competitiveness of shipping capabilities in the region.

Experts said that 25% of the total capital of $4bil would be sourced from ODA (official development assistance) capital, while another 25% would be sourced from the state budget, and a half of this sum would come from investment funds from the public.

There are 266 operational seaports in 24 provinces and cities in Vietnam, including nine big seaports. Vietnam’s seaports are still not capable of receiving over-50,000-tonne vessels.

Mr Hiep from the maritime bureau said that the receiving capacity of Vietnam’s ports was 100mil tonnes of goods every year. However, in fact, the ports receive140mil tones a year, causing handling overcapacity in nearly all seaports in Vietnam.

However, the overcapacity levels are different in different regions of the country. The northern seaport system handles 28-30% of total goods, while the figure is double for the southern seaport system, and just 13% for the central region’s system.



(Source: VNE)