Weekly Newsletter

A63
Vietnam Real Estate Week 4, December

The first weekly electronic newsletter issued to registered members, approximately 100,000 reads per month
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Market situation (p.2)

Real estate foreign investment (p.2)

Vietnam in the world (p.3)

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Websites of real estate companies in Vietnam (p.4)

Real estate projects and prices (p.5)

Real estate supply for customer groups (p.7)

Real estate Legislation (p.8)

Research report (p.9)

Market forecast, statistics expert opinions (p.10)

Construction material market last week (p.10)

Stock market last week (p.10)

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 VietRees – Vietnam Real Estate
MARKET SITUATION
Real estate market in 2008: extremely
hot at the beginning, extremely cold
at the end
Lao Dong – 24 Dec, 2008
The mind battle within the real estate
market
Tuoi Tre – 25 Dec, 2008
REAL ESTATE FOREIGN INVETSMENT
Binh Phuoc builds Bau Ke
ecotourism site
VietRees – 23 Dec, 2008
Works start on the first item of
Vietnam – Japan intellectual park
Vnagency – 23 Dec, 2008
Year 2009: Construction invetsment
to drop by 30%
Kinh Te Do Thi – 26 Dec, 2008
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A63 Page 2
The year 2008 has been the strangest year for the real estate market until now with the decisive
tendency of continuously going down. The market has changed from the extreme of ‘hot’ to the extreme
of ‘cold’.
The end of 2007 and the beginning of 2008 was an unforgettable time. When the real estate market in
Ho Chi Minh city and in the Southeast region fell into the price fever that had never appeared before,
real estate prices changed hour by hour. Only in a short time of less than 3 months (from December
2007 to February 2008), the real estate prices averagely rose by 300% - 500%. Some projects of
constructing the apartment buildings launched the goods for sale while the market was “thirsty”, which
helped the investors gain huge profits. In the real estate fever, the media publicize information about
warnings, forecasts and assessments of the experts on the risks of investing in properties following such
a movement. But regardless of all of the warnings, the market was still hot.
The real estate fever of 2008 stopped only when the monetary policy was tightened, the supply from the
banks was cut off and the waves of selling out has appeared, which has made real estate prices
continue to slide down with growing speed. After 6 months of price reduction, the real estate prices on
the market have averagely decreased by 50% of the value as compared to the peak of the fever until the
end of year 2008. The depreciation level of the ground bases and high-grade apartments has been
much higher than as compared with the common housing projects and separate townhouses.
According to some experts, the real estate market in Ho Chi Minh city in particular and the South of Ho
Chi Minh City in general, there are 2 opposite movements in 2008: hot at the beginning of the year and
cold at the end of the year. This has also been the first year in which the movement of the real estate
market has gone against the laws of the previous years since the real estate market was in embryo
before 2008. Also according to the experts, the confidence that investing in the real estate field will get
profit more or less (which has existed so far) has been shaky in 2008.
A few weeks ago, those who have demands for real estate purchases were at their leisure but now they
have to consider the deposit time because the sellers do not hurry any longer. The deposit interest rates
have been too low and the loans have also decreased. Both sellers and buyers have also haggled hard
and long. Some sellers have withdrawn the conditions of price negotiation and the buyers have still
patiently inspected the properties and squeezed the prices. The haggling has become popular in the
areas where the real estate projects have been completed or in the process and the projects that have
just been started have still been quiet.
Although it cannot be compared to the peak of the end of 2007, many experts have still believed that the
market will “heat up” because the liquidity has increased, which has started from the real needs and
those who have “dormant money” to buy properties for their investment. The real estate market will
gradually heat up and focus on the properties with medium prices and those who have little money and
real housing demands will be the first group of customers. According to the credit specialists, when
investing in real estate, the customers should pay attention to the elements such as the financial ability
of the project owners, the legal status of the projects, the great and convenient locations for
transportation, the ability to finish the infrastructure; the projects that can be put into use immediately
and if the projects are difficult to be sold, they can be leased or used for living in. In addition, the
investors should not depend completely on bank loans. They have to determine whether the cycle of the
real estate investment belongs to medium term or long term to have reasonable financial calculations.
Many bank experts have also assessed that the investment opportunities in the real estate field are
opening but it is the “art” of every investor to define when to enter the market.
On 22nd December 2008, Gia Hong company cooperated with MPM Construction Development
Investment (Austria) to hold a groundbreaking ceremony for the construction of Bau Ke ecotourism site
in Tan Phu town, Dong Phu suburban district, Binh Phuoc province with a total construction cost of 20
million USD.
On a site of 82,000 m2, the project includes the items such as: an amusement park, a resort, a sports
center, a hotel - restaurant area and a housing area for the low-income people. The project is expected
to be completed in 2 years.
On 23rd December 2008, VIJA Powersource Corp. held a groundbreaking ceremony for the construction
of Park Gate Building at Thu Thiem new urban area.
The project has a total construction area of 38,000m2 including 18 floors and 3 basements with the total
investment of 40 million USD. It is expected to be completed in June, 2011.
According to the statistics in the report of "The overview of the construction market of Southeast Asia
and Hong Kong in the context of the global economic recession" researched and announced by the
Building Construction Information (Asia BCI) on 23rd December 2008. In 2009, the investment in Asian
construction market is forecasted to decrease by 16% to 31%. Many projects will have to be delayed due
to the lack of capital.
Accordingly, the value of the construction projects in the next year will decrease significantly, from 140
billion in 2008 to only about 118 billion in 2009. In the worst cases, the construction investment may be
only U.S. $96 billion. The regional economic situation has been on the down turn, the investors will delay
pouring the capital into the projects of offices, hotels, entertainment areas and the retail centers.
 VietRees – Vietnam Real Estate
Total FDI poured into the real estate
field in Vietnam until November, 2008
Source: General Statistics Office
Licensed projects have mainly focused on the
service field with 380 projects. With the
investment of over 9 billion USD, the field of
building offices - apartments is attracting the
most capital.
VIETNAM IN THE WORLD
HCMC real estate shows the leading
potential in Asia
Vnagency
REAL ESTATE AGENTS
Works start on Montana apartment
project
VietRees – 21 Dec, 2008
500 clients to receive Saigon Pearl
apartments before Tet holidays
BDS & TS – 22 Dec, 2008
A 30-storey hotel complex to be built
Ha Noi Moi – 24 Dec, 2008
Resco opens real estate transaction
center
VietRees – 26 Dec, 2008
Paradise sea ecotourism site to be
built at Chan May
Sai Gon Tiep Thi – 26 Dec, 2008
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A63 Page 3
FDI record in 2008
Until the end of 2008, the
implementation capital has reached
11.5 billion USD, which is the
highest figure within 21 years.
The registered capital in 2008 has
exceeded 60 billion USD, which
has also been a record figure until
the current time.
According to the latest report of PricewaterhouseCoopers Group (PwC) and Urban Land Institute, Ho
Chi Minh City. Ho Chi Minh of Viet Nam is one of the cities that have shown the most prospects for
development in Asia - Pacific in the real estate field.
Ho Chi Minh city has gained 5.25 points in the assessment of the prospects for the development in 2009,
ranked second after Bangalore (India) with 5.27 points and coming before the 17 other Asian cities in the
ranking board. In the specific real estate fields, Ho Chi Minh City has also reached a very high number of
points, ranked 1st in trading offices, retailing real estate and leasing apartments, ranked 3rd in the hotel
transaction, ranked 2nd among the markets showing potential for the industrial works and distribution.
Assessing the general situation of Asian real estate market, PwC has shown that most of the real estate
market in Asia - Pacific until now has not yet been greatly affected by the global financial crisis.
According to PwC, the profit in this area at this region is still very high, creating a big attraction to
investors.
Ngan Thanh Company and Lilama SHB Company held a groundbreaking ceremony for the construction
of The Montana high-grade apartment project at 360 Thoai Ngoc Hau, Tan Phu District, HCMC on 20th
December 2008.
With the total investment of nearly 200 billion USD and the total construction floor of over 15,000m2, the
building is 18 floors high, including 88 units with the sizes of 75m2 and above. The investor plans to
hand the houses over in May, 2010 with the selling prices of 16.5 – 19 billion VND/m2 (excluding VAT).
On 20th December, 2008, Co., Ltd Vietnam Land SSG held a meeting at Caravelle hotel for 500 guests
that will be handed over the apartments Ruby in January, 2009. At the same time, the company will
provide the information necessary for the preparation for the apartment handovers.
On this occasion, the investor have also introduced the companies that have won the contract of serving
the building: Savills Vietnam will manage the operation, Long Hai will ensure 24-hour security, Pan
Pacific will be in charge of the sanitation service for the whole residential area and Absolute Pest Control
will be responsible for the insect-killing service in the whole area for the project as well as in each
apartment periodically.
The Ministry of Construction has approved to make some adjustments to the basic design of the project
of Vietnam Oil and Gas hotel complex at the Southeast Culture and Sports Park, Me Tri, Tu Liem district.
With the newly-adjusted design, the Complex invested by Vietnam Oil and Gas corporation includes 3
blocks: the 30-storey hotel block, the 24-storey office block, the 30-storey apartment block and 2 general
basements connecting the 3 blocks.
Saigon Real Estate Corporation held an opening ceremony for Resco property transaction center that is
located at 41 Suong Nguyet Anh, Ben Thanh Ward, District 1, Ho Chi Minh City on 23th December 2008.
The main function of Resco transaction center is trading in the products of Saigon real estate
corporation, the member enterprises and the other individuals and organizations that have demands. In
addition, the transaction center also offers the other services relevant to real estate: advertising,
brokerage, transferring, consulting, marketing and distribution, assessing, auctioning and performing the
legal formalities.
On 25th December 2008, Thua Thien Hue Provincial People’s Committee licensed Vincom Real Estate
and Finance Investment JSC to build the ecotourism site at Chan May – Lang Co with the total
investment of 18 million USD.
The project is built on a site of 8 hectares, including a hotel area, conference room, swimming pool,
eating and drinking area. The construction of the project is expected to be started in September 2009
and completed after a 24-month implementation.
VietRees – Vietnam Real Estate
Websites of real estate companies in Vietnam
Property developers
Ho Chi Minh
Company 585 - www.585.com.vn
Company 584 - www.congty584.com.vn
An Phu - www.anphugroup.vn
BCCI - www.bcci.com.vn
Daewon - www.daewon.vn
Him Lam - www.himlam.com
Hoang Anh Gia Lai - www.hagl.com.vn
Linh Phong Conic - www.conic.com.vn
Nam Long - www.namlongvn.com
Phu Long - www.phu-long.com.vn
Phu Quoc Land - www.phuquocland.net
SacomReal - www.sacomreal.com
Sadeco - www.sadeco.com.vn
Resco - www.rescovn.com
Thai Thinh Capital - www.richlandhill.com.vn
Thu Duc House - www.thuduchouse.com
Phu My Hưng - www.phumyhung.com.vn
Van Phat Hưng - www.vanphathung.com.vn
Vietnam Land SSG - www.saigonpearl.com.vn
Ha Noi
FPT Land - www.fpt-land.com
C.E.O - www.ceoholdings.com.vn
Gia Tue - www.giatue.com.vn
HUD - www.hud.com.vn
HDB Viet Nam - www.hdbgroup.com.vn
Keangnam - www.eng.kne.co.kr
Nam Cuong - www.namcuong.com.vn
Song Hong Land - www.songhongland.com.vn
Vinaconex - www.vinaconex.com.vn
Vincom - www.vincom.com.vn
Viet Hung - www.ecopark.com.vn
Other cities
Becamex IDC - www.becamex.com.vn
Biconsi - www.biconsi.com.vn
Tuan Chau - www.tuanchau-halong.com.vn
GNSVINA - www.cozyvill.com
Company 579 - www.cecico579.com.vn
Duc Manh - www.ducmanhco.com
Sponsor:
www.VietRees.com
Brokerage
Ho Chi Minh
An Gia - www.angia.com.vn
ACBR - www.acbr.com.vn
Dat Xanh - www.datxanh.com.vn
Dia Loi - www.nhadatdialoi.com.vn
Dat Cat - www.datcat.com.vn
FICO - www.ficohome.com.vn
Kim Son - www.kimson.com.vn
Phuc Duc - www.phucduc.com
Hung Phu - www.hungphunhadat.com
Hung Thinh 2 - www.diaochungthinh.com.vn
Hoang Quan - www.hoangquan.com.vn
Intresco - www.intresco.com.vn
Loc Dien - www.nhadatld.com
Nova - www.novahomes.com.vn
Phat Hung - www.phathung.com.vn
SacomReal - www.sacomreal.com
Tan Dien - www.tandien.com.vn
Ha Noi
Cland - www.cland.com.vn
Dong Do - www.dongdobds.com
Phu Thai Group - www.phuthaigroup.com
Petrowaco - www.petrowaco.vn
Petrolimex – www.pland.com.vn
Other cities
Dieu Hien - www.dieuhien.com.vn
Thien Loc - www.thienlocnhadat.com.vn
Research
CBRE - www.cbrevietnam.com
Savills Viet Nam - www.savills.com.vn
VietRees - www.VietRees.com
Consulting
CBRE - www.cbrevietnam.com
Dong Duong - www.indochina-consulting.com
Eden Real - www.edenreal.com
Hop Nhat - www.uniland.com.vn
Indochina Land - www.indochinacapital.com
Long Gia Khang - www.longgiakhang.com
Savills Viet Nam - www.savills.com.vn
Vina Capital - www.vinacapital.com
Viet Nam Real Estate Newsletter A63 Page 4
Evaluation
AREV - www.arev.com.vn
Hoang Quan - www.thamdinhgia.com
Vietland - www.thamdinhgia.com.vn
VVFC - www.valuation.vn
Construction
Ho Chi Minh
CIC8 - www.cic8.com
Coteccons - www.coteccons.com.vn
Cosaco - www.cosaco.com.vn
Hoa Binh - www.hoabinhcorporation.com
Hai Thanh - www.haithanh.com.vn
Toan Thinh Phat - www.toanthinhphat.com.vn
Ha Noi
Constrexim - www.constrexim.com.vn
Cavico - www.cavicovn.com
HANCIC - www.hancic.com.vn
HUD - www.hud.com.vn
Incomex - www.incomex.vn
Architect and Interior Decoration
Ho Chi Minh
A2 Visualization - www.a2viz.com.vn
Cat Moc - www.catmoc.com.vn
Nha Vui - www.nhavui.com
Nha Viet - www.nhavietdecor.com
Nha Dep - www.nhadep.com.vn
Pho Xinh - www.phoxinh.com.vn
Ha Noi
ACT - www.act.com.vn
ADKientruc - www.adkientruc.com
Ashui – www.ashui.com
Kien Truc Ha Noi - www.kientruchn.com
Other Countries
Architects 61, Sing - www.a61.com.sg
DP Architects, Sing - www.dpa.com.sg
SWA, USA - www.swavietnam.com
Ong&Ong, Sing - www.ong-ong.com
RSP Vietnam, Sing - www.resp.com.sg
Surbana Vietnam, Sing - www.surbana.com
 VietRees – Vietnam Real Estate
REAL ESTATE PROJECT AND PRICES
One more tourism site to be built
in Thua Thien - Hue
Tuoi Tre – 20 Dec, 2008
A trade center to be built in Ba Son
factory area
TheSaiGonTimes – 21 Dec, 2008
176 more apartments for resettlement
SGGP – 23 Dec, 2008
Starting the biggest resort project
in Mekong River Delta region
Viet Rees – 25 Dec, 2008
Works start on Mui Ne resort, Binh
Thuan
Viet Rees – 26 Dec, 2008
Announced prominent real estate developments during the last 2 weeks*
Ho Chi Minh City
Other Areas
Approved prominent real estate developments in HCM City*
Housing, apartment, residential area
* Note: RA=Residential Area, AP=Apartment Building, HA=Housing Area, RuA=Reurban Area, TA=Tourism Area, IA=Investment Area, UA=Urban Area, ReA=Resettlement area
Websites of properties in Vietnam
Ho Chi Minh
Blooming Park - www.bloomingpark.com
Saigon Paragon - www.saigonparagon.com
Dragon City - www.dragonland.com.vn
Preche - www.preche.com
SaigonPearl - www.saigonpearl.com.vn
V-Star - www.v-star.com.vn
Time Square - www.timessquare.com.vn
The Everrich - www.theeverrich.com
Tan Da Court - www.tandacourt.com
Lancaster - www.lancaster.com.vn
The Vista - www.thevista.com.vn
Sponsor:
www.VietRees.com Viet Nam Real Estate Newsletter A63 Page 5
On 19th December, 2008, Thua Thien-Hue Provincial People’s Committee approved the detailed
planning of Quan The Am tourism site located at Bang Lang hamlet, Thuy Bang commune, Huong Thuy
suburban district.
The tourism site is 16.354 hectares in size, including the works that considerably invoke the pagoda
architectures such as Quan The Am statue, Tam Bao sanctuary, Bo De quan, camping area, garden,
natural pine forest (67.23%), lake, traffic, square...
The City People’s Committee has just approved the detailed planning of changing Ba Son shipbuilding
yard into the center of trade-finance-office-hotel services and Saigon - Ba son square.
The area is located in the North of Ben Nghe Ward, District 1. The East and the SouthEast border
Saigon river and the remaining sides border Ton Duc Thang and Nguyen Huu Canh streets.
Housing Business and Development Company One Member Co., Ltd has just started the construction of
the 6-storey apartment building in the residential area An Suong, District 12, Ho Chi Minh City.
The project has an area of nearly 6,200 m2, including 176 apartments with the sizes of 40.7 - 70.2 m2.
The project is expected to be completed and handed over to the House Development Fund of the City at
the end of 2009. Additionally, the company is currently promoting the construction of 700 apartments in
District 12 and Go Vap to serve the resettlement and urban planning.
Hau Giang provincial People’s Committee has agreed on the planning and granted the investment
certificate to the project of Tan Do ecotourism resort at Phu Thanh hamlet, Tan Phu Thanh commune,
Chau Thanh A suburban district invested by Tay Do ecological resort JSC with the total area of 15.3
hectares. The project is expected to be implemented in early 2009 and put into use in January, 2011
with the total investment of 30 billion VND.
The Management Board of Project Investment and Construction held a groundbreaking ceremony for the
construction of Mui Ne resort at Quarter 5, Mui Ne Ward, Phan Thiet City, Binh Dinh Province.
The project is 3.4 hectares in size with the total investment of 105 billion VND, including bungalows,
terraced houses, restaurants, bars, entertainment areas, sports areas... It is expected to be completed
and put into use in 2011.
Week 3, December 2008 Week 4, December 2008
Riverside Residence housing complex (Dist.7) Montana apartment building (Tan Phu)
Sunrise City (Dist.7) Saigon – Bason complex (Dist.1)
An Suong ReA building cluster (Dist.12)
Cho Mo Trade Center (HaNoi) Quan The Am tourism site (TT-Hue)
Times Square Hanoi Bau Ke ecotourism site (Binh Phuoc)
Tay Do ecotourism resort (Hau Giang)
Mui Ne resort (Binh Thuan)
Paradise sea ecotourism site (TT-Hue)
November December
AP - offices at Binh Quoi (Binh Thanh) Truong Tho apartment building (Thu Duc)
AP at Phu Thuan Ward (Dist.7) ReA building An Phu – Binh Khanh (Dist.12)
AP at Thao Dien Ward (Dist. 2) Cecico 135 apartment building (Thu Duc)
Sacomreal Hoa Binh apartment building (Tan Phu)
ReA at Linh Xuan Ward (Thu Duc)
Ha Noi Other cities
Viglacera Tower - www.viglaceraland.vn Cozyvill - www.cozyvill.com
My Dinh – Me Tri RA - www.sudicosd.com Flamingo Dai Lai - www.flamingodailai.com
Bac An Khanh RA - www.vinaconex.com.vn Van Phu township - www.dothivanphu.com
Ha Noi Plaza Hotel - www.charmvit.co.kr Dam Vac Golf - www.damvacgolf.com
Phap Van – Tu Hiep RA - www.hud.com.vn Sanctuary - http://sanctuary.com.vn
Ho Tram Strip - www.hotramstrip.com
Sai Gon Sunbay - www.ctc-corp.vn
Other cities Eden Lagi Resort - www.edenreal.com
Furama Resort - www.furamavietnam.com Van Quan – Yen Phuc township - www.hud.com.vn
Sai Gon – Mui Ne Resort - www.saigonmuineresort.com Quoc Te Do Son - www.vietlandgroup.com
Sunspa ResortVietnam - www.sunsparesortvietnam.com
 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A63 Page 6

Property Retail Price

Updated on information from ACBR, Van Phat Hung, Hung Thinh, Phuc Duc, Tuoi Tre Newspaper and developers (VietRees gathered by direct surveys), listed prices can be
original prices or transfer prices at current or at one week prior from the date this newsletter is issued.

Typical apartments in HCM city Other apartments and land lots

Area Price (million
Dist.
(m2) VND/m2)
+/-
Apartment building – HCMC
Central Garden 1 82 28.7
The Estella 2 105 27 -
An Hoa 2 75 16
Orient Apartment 4 71.72 20.04 +
Cantavil, Dist.2 V- star, Dist.7 Sky Garden , Dist.7
Constrexim 4 78 20.7 +
* 98m2 – 1,880 USD/m2 * 119m2 – 15.5 million VND/m2 * 71m2 – 28.5million VND/m2
Hung Vuong Plaza 5 121 28.25
* 150m2 – 1,800 USD/m2 * 91m2 – 26.4 million VND/m2
Tan Thinh Loi 6 74 13.5
My Khang 7 124 31.1
Him Lam – Nam Khanh 8 88 13.5
Phu Loi 8 74 10
The Mansion BC 83 13 +
Phu My Thuan NB 94 9.1 +
Le Thanh BT 68 10.5
Ruby Land TP 74.6 16 +
Blooming Park, Dist.2 Phu My, Dist.7 The Everich, Dist.11 Development land lots – HCMC
* 115m2 – 29 million VND/m2 * 77m2 – 18.7 million VND/m2 * 115m2 – 1,650 USD/m2
An Phu – An Khanh 2 100 30.5 +
* 135m2 – 31million VND/m2 * 91m2 – 17.7 million VND/m2
Direct contact with the investor1 The ky 21 2 160 19.5 -
Phu My – Van Phat Hung 7 126 20.5
Sadeco ven song 7 90 27 -
Khang An 9 132 6.9 +
Kien A 9 200 8
Lang Viet Kieu BC 242 9.3 -
Cienco 5 BC 90 6.5
Tan An Huy NB 120 17 -

Preche, Dist.2 Panorama, Dist.7 Apartment building - Ha Noi

Saigon Pearl, B.Thanh
* 147m2 – 2,222 USD/m2 M5 – Nguyen Chi Thanh BD 149 29 -
* 146m2 – 39.3million VND/m2 * 135m2 – 1,725 USD/m2
Chelsea Park CG 128 24.5 -
* 140m2 – 1,800 USD/m2
Dich Vong CG 62 18.8 -
Dong Nam Tran Duy Hung CG 130 26
Thai Thinh DD 68 26.5 +
Nang Huong TX 68 13.7
Linh Dam HM 75 17.2
Development land lots – Other provinces
Rach Bap BD 100 0.85
My Phuoc 3 BD 300 1.33 -
The Vista, Dist.2 New SaiGon, Nha Be The Manor, B.Thanh Tay Nam BR-VT 100 1.8
* 101m2 – 29 million VND/m2 * 99m2 – 17.12 million VND/m2 * 74m2 – 1,810 USD/m2
Khang Linh BR-VT 80 5.4 -
* 139m2 – 32 million VND/m2 * 126m2 – 17.7 million VND/m2 * 113m2 – 2,050 USD/m2
Licogi 16 DNI 240 3.3
Phuoc An – Long Tho DNI 300 1.3
Long Kim 2 LA 110 4.9

1
Kien A Investment & Services Co., Ltd. - An Phu Ward, District 2, HCMC - Tel: (84.8) 740 6688, Fax: (84.8) 740 6949

Danang: 225 Huyen Tran Cong Chua - T: (84) 511 836 216 * HCMC: 390 Nguyen Cong Tru, D.1 - T: 8 821 7509 * Hanoi: No.6-1D Trung Yen New Town, Caugiay - T: 4 783 1598

Sponsor:
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A63 Page 7

PROPERTY SUPPLY FOR DIFFERENT TARGETS OF CUSTOMERS

Social welfare houses for worker
VietRees
* Saigon Construction Corporation investor two apartment blocks high 5-storey for workers in Quarter 1,
Linh Trung Ward, Thu Duc Dist, HCMC.
* Hung Vuong JSC has just put a 5-storey apartment building into use for cadres and workers. The
company continues to petition Tien Giang Provincial People’s Committee to grant a 5.000m2 land area to
construct more apartment buildings for workers with an investment of 100 billions VND.
* Saigon Paper JSC has put an apartment building into use for workers at My Xuan Commune, Tan
Thanh suburban district, Ba Ria - Vung Tau province. The stage 2 of the apartment building is about to
be implemented with a scale of 8 storey.
th
* Morning of August 28 , 2008, the Ministry of Construction has signed a memorandum for the
cooperation in the field of welfare housing with Korean Ministry of Land-Traffic and Marine.
* Ha Noi Construction Investment JSC (Hancic) has finished 4/10 units of the 5-storey house which
belongs to the housing project for workers at Kim Chung Commune (Dong Anh).
* Construction and Import-Export JSC (Vinaconex) has transferred and put into use 4 blocks of houses
among the total 16 blocks of the housing project for the workers at Thang Long industrial zone.
* The housing area of 7,000 m2 (380 rooms) for 1,500 workers of Dong Quang Knit Limited Company at
Hai Son industrial cluster (Duc Hoa Ha commune, Duc Hoa suburban dist., Long An province) has just
been put into use. The total investment cost of this housing area is 20 billion VND. (02/10/2008)
* The 4-storey apartment building at cluster 5, ward 8, Vinh Long town that serves the cadres,
employees, professional serviceman and etc has been ratified by Vinh Long Provincial People's
Committee with a total investment of over 37 billion VND. (03/10/2008)

Real estate for the low income
VietRees
* Sai Gon – Gia Dinh Real Estate Company and Hoa Binh Phu Yen Company build Thoi An Apartment
Building in District 12 with 1,000 apartments.
* Construction Co. No.8 (CIC8) will invest in construction of 10,000 Keppel Land apartments & Tien
Phuoc Co. will build a resettlement area including 1,900 apartments at An Phu, Binh Khanh, District 2.
* HCM City People’s Committee will advance 50.5 billion to carry out the project of Vinh Loc B, Binh
Chanh residential area for resettlement with hundreds of townhouses and 40 apartment blocks.
* Construction Co. No.5 will invest in construction of 500 apartments at Ward 22, Binh Thanh District.
* HCM City Cooperative Alliance has developed its construction investment project of housing area at Le
Minh Xuan Commune, Binh Chanh Suburban District on a site of 67.49 hectares.
* 50% of the house reserve at The Splendor apartment area (Go Vap Dist.) will be intended to serve
resettlement demand in the district.
* Dat Lanh Co. will offer 1,500 apartments to the market with the prices of 500 - 700 millions VND/unit.
* People‘s Committee of HCMC has approved the project of the resettlement area on a site of 55.24
hectares at Dong Nam Cu Chi industrial - residential area in Cu Chi.
* House management of Dist.1 is assigned to construct the resettlement area at 7/4ª Kha Van Can, Thu
Duc district.
* In early 2010, Hai Thanh company will complete 352 apartments of Hai Thanh 1 resettlement area
project, Binh Tan District for the civil servants at Binh Tan District.
* People’s Committee of Binh Chanh has just cooperated with Hung Vuong university Investment &
Development JSC to construct resettlement area at Tan Kien commune, Binh Chanh suburban district.
* People’s Committee of HCM City has just licensed Cho Lon Real Estate JSC to invest in the
construction of the apartment building at No. 99 Ben Binh Dong, ward 11, district 8 in order to make the
house reserve at the social welfare housing program.
* People’s Committee of HCM City has promulgated the decision about reclaiming the land areas at
Phuoc Kien, Nhon Duc and Phuoc Loc communes, Nha Be suburban district for the construction of the
resettlement area in order to serve the project of Nhon Duc - Phuoc Kien new urban area.
* The HCM City Union of Housing Co-operatives has prepared to commence the construction of Thanh
Loc apartment building with 238 apartments on a site of 6.600 m2 in District 12. The Union intends to
construct another apartment building with over 200 apartments at Truong Tho ward, Thu Duc district.
* HCMC People’s Committee has ratified the planning of Binh Khanh residential area (Dist.2) which is
built on a site of 384,019 m2 to serve the resettlement of the locals in Thu Thiem new urban area.
* Dat Xanh has cooperated with Truong Son Vanguard Youth General Squad to build apartments for low-
income people at Dist.12
* Go Vap People’s Committee and Go Vap Public Benefit Service Co. have bought back the house
reserve belonging to Phu Gia Hung high-end apartments, Duong Quang Ham Street, Ward 15, Go Vap
Dist. and Dong Hung Thuan 1, 2 apartment buildings, Dist. 12 to serve the resettlement of the locals at
Tham Luong project - Ben Cat - Nuoc Len ditch.
* Approximately 184,000 apartments belonging to the investment program in the construction of the
social welfare houses in the stage of 2009 – 2015 with the total investment of about 49,000 billion VND
have been submitted to the government for approval. (30/09/2008)
* 800 social welfare houses for lease - lease to purchase will be built at 19A and 21A plots, Viet Hung
urban area in 2009, which have been ratified by The People’s Committee of Ha Noi City. (16/10/2008)
* 462 units of Khang Gia 3 apartment building (Go Vap Dist.) invested by Khang Gia Real Estate
Investment – Development JSC will be used for the resettlement demands. (27/10/2008)

The Committee for overseas Vietnamese in HCMC has showed that there have been 130 overseas
Dwellings for overseas Vietnamese Vietnamese buying houses, mainly in HCMC. Those who brought houses are those who come back to
and foreigners the country for their long term and direct investment, scientists, culture researchers invited to come back
VietRees to the country to become experts and repatriating overseas Vietnamese. To buy houses, beside
documents verifying priority subjects, the buyer must present their passport (issued in Vietnam). In the
case that house buyers bring foreign passports, they must have certificates of Vietnamese nationality or
documents confirming their losing Vietnamese nationality, or certificate of citizenship registration.
Sponsor:
 VietRees – Vietnam Real Estate
REAL ESTATE LEGISLATION
HCMC: 4 groups of subjects eligible
to lease and lease – to – purchase
welfare houses
Sai Gon Giai Phong – 20 Dec, 2008
Proposal for no registration fees
to the purchases of below - 60m2
apartments
Tuoi Tre – 24 Dec, 2008
Unfinished projects still licensed
VietRees – 26 Dec, 2008
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www.VietRees.com Viet Nam Real Estate Newsletter A63 Page 8
On 18th December, the Ho Chi Minh City People's Committee promulgated the regulations on the use
and the management of welfare houses in the city.
According to the Decision, the groups of subjects are allowed to lease and lease–to–purchase the
welfare houses include: (1) cadres, civil servants, officials; (2) officers, professional servicemen
belonging to the people’s armed forces paid by the State’s budget; (3) Those who are returned the public
houses; (4) Those who have the excellent labour achievements (recognized by the HCM City People's
Committee). Those who are allowed to lease and lease–to–purchased the welfare houses have to
ensure the following conditions: The subjects are mentioned above; have been working at least 3 years;
are the regular member of the personnel and paid by the State’s budget. Those who have not dealt with
the policies on their properties; do not have the houses owned by themselves, do not have the land
belonging to their land-use rights (including the properties inherited or offered) and live in the boarding
houses or the houses of other organizations or individuals and those who live in the damaged houses
with the average usable area per capita in the family of below 5m2. The monthly average income of the
families do not exceed 5 times the total rent of the welfare houses that have to be paid for each month;
regarding the apartments that have the maximum areas of 60 m2 and the rent of not being 4 times lower
than a minimum using area of 30m2. In addition, those who are leasing the welfare houses have to pay
20% of the value of the rented houses for the first time.
The contracts of leasing-to-purchasing the welfare houses do not last less than 15 years and not longer
than 20 years. When the leasing duration of the welfare houses ends and the welfare house lease–to-
buyers fully implement the obligations following the regulations, the units that directly manage the
welfare houses will set up the procedures for granting the certificates of welfare house ownership to the
welfare house lease–to–buyers for at least 3 months from the date of the contract liquidation. In the case
that the welfare house buyers want to liquidate the contracts before the time of setting up the procedures
for granting the certificates of house ownership, it is needed to be approved by the Department of
Construction or the People's Committee of the districts or the suburban districts.
In addition, the decision also provides very specific regulations in the case of tenants, if the welfare
houses lease-to-buyers die and there are legal inheritors (together living in those welfare houses), the
legal inheritors can continue to lease and lease-to-purchase the welfare houses. However, if the legal
inheritors do not live together at the welfare houses and the lease-to-buyers have fully implemented the
obligations of 2/3 of lease-to-purchase period, the legal interiors are paid the total money of 1/3 of the
remaining lease-to-purchase period and granted the certificates of house ownership.
On 24th December 2008, the Ministry of Construction sent the Prime Minister an official proposal for no
registration fees for the people who buy the apartments with the sizes of below 60m2 and this should be
applied on the first-time purchases.
The subjects who sell their houses to buy other houses/new houses in order to improve their living
standards or to suit the working conditions are exempt from 50% of the registration fees.
In addition, the Ministry of Construction has also suggested that the Government should increase the
loan duration for the real estate business; research and amend the real estate tax policies following the
progressive tendency for those who have used their properties higher than the limit or do not use them;
promote the program of constructing the welfare houses for the subjects stipulated by Housing Law and
Lease-to-purchase Law.
According to the Housing law and the Land law, if land and home owners have full legal documents and
complete the financial obligations to the State, they will be granted the certificates without waiting for the
completion of the entire projects. However, some localities have imposed the rule that "when granting
the certificates to the people who have houses located in the projects, it is obligatory to have the reports
on checking and taking over the completion of the investment in technology infrastructure and handing
them over to People's Committee of districts, suburban districts, etc. This has made many interests of
the people suspended.
Therefore, the Ministry of Construction has sent the document to inform that the localities are allowed to
grant the certificates of house ownership and land-use rights for the separate properties that collect
enough conditions in the projects without waiting for the completion of the entire projects on 24th
December, 2008.
VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A63 Page 9

RESEARCH REPORT
Overview of the marketing activities of Vietnamese real estate enterprises in 2008 VietRees - Dec, 2008

Weak points in the current marketing activities of Vietnamese real estate enterprises, experiential lessons, necessary warnings
for real estate enterprises in the competitions while they do not pay the proper attention to these activities. What are the
orientations of these activities in the near future…
During the process of discussing and working with many real estate investors, according to the interactions between the real estate
marketing and consulting department of VietRees and the Vietnamese real estate enterprises together with the records and analyses of the
real estate marketing activities took place on the market in the past, we can briefly present some main ideas as follows:
The marketing activities of the domestic real estate investors including the big real estate investors in the past years have not paid proper
attention to investment as well as reached the necessary methodologies, especially when the market was eventful in 2006 – 2007. The
investors have almost focused on the sale organization or event organizations and introducing the products. The activities of
communication and marketing took place desultorily and lacked the consistency and flexibility. The images, messages, colors, etc of many
units and projects were nearly the same. Some enterprises did not have plans and just worked perfunctorily. The real estate investors have
hardly created the differences or outstanding features for their products besides the architectural design aspect of some real estate
projects.
Although many units and investors had many big real estate projects, they just marketed to sell their products on their own, they did not
have any marketing department or qualified specialists in marketing. The marketing activities have mainly been undertaken by the business
departments. Even some investors at the leading level of the units misunderstood the terminologies of advertising or marketing. They
thought the marketing activities did merely mean offering for sale or introducing the products to buyers, etc.
Some investors thought that the market was under the control of the sellers as in 2007, so they did not need to make any investment in
marketing activities, particularly in surveying the market and learning about the needs and tastes of the buyers.
In addition, VietRees has also acknowledged the fact that investors have not really focused on building their own image and brand name.
They have only paid attention to the images of each project. They have just tried to build and polish the images of their projects yet lacked
the proper concern for the actual images of the investors behind the projects. When the market becomes eventful, many investors are only
interested in the quick sale and taking back the capital promptly to implement the next real estate projects, etc.
After Lunar New Year 2009, when the real estate market starts to level off, it is difficult for the projects to be sold out and the rate of
successful transactions will decrease significantly, especially in the second quarter of 2009. On the market, two tendencies relevant to
marketing matters for the projects have started to appear. Firstly, investors have completely stopped the activities of marketing,
communication and implementing the projects or operated perfunctorily. Secondly, some units have begun to pay much more attention to
advertising/marketing activities for their projects. Though the market has leveled off, they have still continued to implement the projects and
carried on with marketing activities to preserve and protect their images and prestige, including spending more on marketing activities.
However, it has still lacked the most important thing that is to learn about the customers’ needs before implementing the project.

VietRees acknowledges the current difficult situation, some real estate companies have now had many new marketing methods
to aim at the real customers
Here are some ways that are considered to be good and suitable for the current market conditions and they should be considered to be
implemented in the near future when the supply increases and the competition between the investors becomes more and more intensive.
1. Investors have been more active in approaching the customers, 5. Pay more attention to the advertising on multimedia than before. In
creating the opportunities and possibilities of buying houses for the addition to the ads on the papers, the investors have expanded into the
customers. For example, some investors have sold the houses on the other channels of communication such as online advertising, advertising
installment plans, not via the banks as in the recent time. Pay much more through electronic newsletters, magazines, directories together with the
attention to the customer care services. Attach special importance to the other means of outdoor advertising such as billboards, etc. The
reputation, images and brand names of the investors. Offer more communication messages should be suitable and consistent - aiming at
commitments to ensure the financial rights as well as the properties’ value the target customers.
for the customers.
6. In the difficult market situation, many investors have had new changes
2. Research the customers’ needs, identify the target customers and how that are replacing or reducing the advertising costs on the expensive
to approach the customers suitably; actively approach the customers media and turned into the cheap media such as websites and electronic
through channels and means of communication or approach appropriately newsletters. In addition, create the contact channels and direct
and do not passively wait until the customers find out by themselves like transactions between the investors and the customers, not only through
before. the brokerage activities or distributing the projects of other companies as
3. Research the competition between the other projects in the region; compared to before.
carefully learn about them before deciding the selling prices and the 7. Apply many promotion forms, offer household equipment, furniture,
product features that match the target customers. electrical appliances as gifts when customers buy properties, including
offering the discounts or reducing the profit as compared to before.
4. Have companies specializing in real estate marketing media carry out
the marketing instead of executing this by yourself like before. The 8. In the advertisements or message and the style of customer services,
investors are more interested in the elements that create many emotions
professional companies will help the investors create the extra values for
their products and ensure the effective distribution for the projects in for the customers, which has created the desire and stimulated the
accordance with the progress. customers’ to buy the real estate.

In short, VietRees has acknowledged that some real estate investors have been more dynamic, adapted, operated more methodically and
paid more attention to the rights and benefits of the customers in 2008 than before.
The market is gradually forming many classes of investors with the difference levels of professionalism that are easy to realize. However,
on the market, there have still been many investors that have lacked the professionalism and methodologies. Many investors have still
lacked the concern for thoroughly learning about the demands of the customers as well as how to approach and serve the customers
professionally and methodically.

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 VietRees – Vietnam Real Estate www.VietRees.com Viet Nam Real Estate Newsletter A63 Page 10

REAL ESTATE MARKET FORECAST

* Note: Information on market forecast is only updated every 4 periods (after one month) by VietRees

General tendency of HCMC market
The transaction situation of the apartments, townhouses and project ground bases in November
continued to decrease more dramatically as compared to the previous months. According to VietRees’s
forecast, the real estate prices can continue to decline with the level of 2 - 5 % in December and before
Lunar New Year holidays after each month. The prices of the high-grade apartments in November will
see the larger decreases as compared to the October and the rate of the successful transactions has still
been low, even there are the transaction centers that do not have any successful transaction within 1
week. The buyers are still waiting for the further price decreases.
A series of the real estate brokerage agents and centers have stopped operating. The transaction center
systems of many companies with the relative scales have been narrowed because they cannot cover
their costs and have no customers. According to VietRees, about 40% of the brokerage centers and
agents have closed down until the end of November and this number will continue to rise after Lunar
New Year holidays. Most of the closed brokerage centers and agents have been located in the districts
2, 9, 7, Nha Be and Binh Chanh. These centers can be the transaction offices of the companies that
have many offices and transaction agents scattered in many districts in the city. The remaining centers
have not yet closed down but according to the surveys of VietRees, they have only operated
perfunctorily and many centers are closed on weekends to reduce the operation costs.

Apartment market The supply of apartments belonging to the average and low segment is quite limited, so the market of
this segment has also not seen any movement compared to the previous month. The successful
apartment transactions do mainly belong to this segment. The investors are beginning to implement the
new apartment projects of the average low segment, but in at least 2 years, the new market will have
more supplies of the new apartments of this type. According to VietRees, the construction material
prices in the past 2 months have declined, which has created favorable conditions for the investors to
implement or speed up the construction progress of the projects, especially for this segment.
The high-grade apartment prices have slightly decreased in the past month. According to VietRees, the
prices have fallen down by approximately 2% as compared with September 2008. The domestic
customers of this segment are gradually scaling down.
The investors are looking for the new directions aiming at the Vietnamese overseas who are in need of
buying houses in Vietnam. However, according to VietRees, there are many difficulties in approaching
as well as successfully trading with this group of customers in the short term (1 - 2 years).

Project ground base market The market of ground bases has continued to go down by 4% as compared to October, 2008 according
to VietRees, Similarly to October, the successful transactions have been very low and much lower than
the apartments whose successful transactions are limited.
According VietRees, after Lunar New Year 2009, the real estate market will be the attractive field & bring
appealing opportunities to the investors with the plentiful investment and the long-term investment
strategies. Therefore, the real estate enterprises that have potential need to build long-term development
strategies; work actively in researching & developing, especially, seriously invest in the market
researches, customer researches; make the sustainable development steps and avoid scattering/
strewing their investment capital in the current difficult situation.

CONSTRUCTION MATERIAL MARKET

Cement supply still abundant, steel According to the forecast of the Ministry of Construction, until the end of 2008, the total capacity of the
cement factories have reached nearly 60 million tons while the consumption demand will be about 44 -
market shows signs of speculation 45.5 million tons (increasing by 10 - 11.5% as compared to 2008). Moreover, the domestic cement
Edited by VietRees production capacity will be 5 - 7 million tons higher than the consumption demand in 2010. According to
VSA, the steel prices at factories (excluding VAT) have currently ranged from 11.3 - 11.7 million/ ton,
rising by 1.5 - 2 million VND as compared with the period of the lowest prices. The retail prices have
ranged from 11.5 - 12.5 million VND depending on each locality. The steel consumption in the past
month has dramatically increased. However, because in fact, the steel inventory does not go to the
contractors and the projects but it still hangs around from the storehouses of the producers to the
storehouses of many commercial companies.
The reason boosting the steel prices and the steel consumption as compared with the previous months
is that many people predict that the steel prices will increase in the near future due to many elements
such as: (1) many enterprises have thought that the steel prices have gone down to the bottom, as a
result, they have taken advantage of buying steel for their speculation and waited for the price increases;
(2) from 1st January 2009, the VAT applied to the steel production will increase from 5% up to 10%, (3)
the waste steel prices in the world market have also started to increase and they will definitely make the
ingot prices increase and then the steel prices will go up accordingly. However, if the virtual demands
break, the network of steel business and consumption will have difficulties and the whole market will face
the risk of crisis again.
STOCK MARKET
Blue covers both VN-Index and Red has covered many areas of the electronic board at the
opening session and pulled the VN-Index down to 300.91 points,
HASTC-Index has lost 1.28 points. Only just over 1 million shares have
Edited by VietRees changed hand with the total value of 25.898 billion VND. Entering
the consecutive order-matching phase, the buying orders have
Chart Source: Vietstock been pumped into the market more strongly, which helps VN-
Up to date: 26 Dec, 2008 Index increase by 1.55 points. Ending the session, VN-Index has
slighly added 2.27 points (or 0.75%), up to 304.46 points. The
total trading volume has reached 0.2 units worth 347.691 billion VND. After a trading week, VN-Index
has had 3 upward sessions and 2 downward sessions, slightly declined by 2.8 points (or 0.91%) as
compared to the last week.
At Hanoi bourse, HASTC-Index has added 0.65 points (or 0.62%) to close at 105.62 points. The total
trading volume on the whole market has reached over 4.5 million units worth nearly 103.2 billion VND.
After one trading week, Hanoi bourse has also had 3 upward sessions and 2 downward sessions. As
compared to the last week, HASTC-Index has lost 2.1 points.

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