Banks to guarantee Sacomreal property projects

Sacomreal's Jamona City will be guaranteed by OCB bank aiming following Article 56 of the Law on Real Estate Business, which will take effect on July 1.VNS Photo

Saigon Thuong Tin Real Estate Co. (Sacomreal) signed agreements with OCB, ACB and HDB banks on Sunday to guarantee its property projects, following Article 56 of the Law on Real Estate Business, which will take effect on July 1. OCB committed to guarantee all Sacomreal-invested products, including the recent Jamona City project in District 7, while ACB committed to guarantee products of Jamona Riverside in District 7 that will be on sale in the third quarter. HDB will guarantee products of Carillon 3 project in Tan Binh District which will be announced in the third quarter. Pham Nhat Vinh, chairman and general director of Sacomreal, said if developers failed to hand over residential houses as agreed in the lease-sale contracts, the purchaser may request the guarantor to return the advance and other payments made to the investors. "The property market will then develop more transparently and sustainably. The provision ensures that developers are financially viable and greater … [Read more...]

Top local banks see simultaneous changes in top positions

for-illustration-purposes-only-553836-image-100x100

While a Japanese national has been appointed the deputy head of Vietcombank, Sacombank and Eximbank have relieved the posts of their two deputy general directors so that they can move to work at their subsidiaries. Yutaka Abe, a Japanese national, was appointed the deputy general director-cum-member of the board of directors of the Joint Stock Commercial Bank for Foreign Trade of Vietnam, better known as Vietcombank, starting Sunday. (September 30). … [Read more...]

Banks see simultaneous changes in top positions

for-illustration-purpose-only-553960-image-100x100

While a Japanese national has been appointed the deputy head of Vietcombank, Sacombank and Eximbank have relieved the posts of their two deputy general directors so that they can move to work at their subsidiaries. Yutaka Abe, a Japanese national, was appointed the deputy general director-cum-member of the board of directors of the Joint Stock Commercial Bank for Foreign Trade of Vietnam, better known as Vietcombank, starting Sunday. (September 30). … [Read more...]

Business news in brief

On June 26, ACB Growth Investment Fund (ASIAGF), a close public fund, will debut 24,008,000 fund certificates on the Ho Chi Minh Stock Exchange. The debut price is set at VND10,000 a share with a trading band of plus minus 20 percent on first trading day. On June 25, the Ho Chi Minh Stock Exchange allowed Hung Vuong Corporation (HVG) to sell 1,260,320 treasury shares, or 2 percent stake. From June 28 to July 25, Nguyen Thi Xuan Thao, IR officer of MIRAE Joint Stock Company (KMR), registered to sell 329,450 shares, reducing her ownership to 26,234 shares, or 0.08 percent stake, for personal need. From June 29 to July 29, Ho Truc Lam, IR officer of Sacombank Securities Joint Stock Company (SBS), registered to sell all 5,220 shares for personal financial need. Bui Thi Bich Lien, sister of Bui Phap, chairman of Duc Long Gia Lai Group Joint Stock Company (DLG), registered to sell all 194,768 shares from June 28 to July 27, or 0.55 percent stake, for personal need. Le Quoc Binh, CEO of Ho … [Read more...]

Sacombank Shareholders General Meeting: Many Unexpected Things to Come

Sacombank's General Meeting of Shareholders on 26th May is forecast to contain lots of unexpected happenings regarding personnel issues, because its ownership and personnel have changed dramatically before the meeting. Sacombank's Annual General Meeting of Shareholders is forecast to contain lots of unexpected news, with information continuously released before the meeting. Saigon-Thuong Tin Commercial Joint Stock Bank (Sacombank - ticker: STB)'s Annual General Meeting of Shareholders this year will be organised on 26th May 2012 in Ho Chi Minh City. The list of attending shareholders was fixed on 20th April. The content of the meeting will focus on summarising operations of 2011 and plans for 2012, including reports of the Management Board and Supervisory Board. The shareholders will also express their approval or denial of reports under their authority. Recently, Sacombank has made several changes in personnel. Mr Pham Nhat Vinh resigned as Deputy General Director from 2May. Along … [Read more...]

Markets adjust at slower pace

The markets continued their correction phase on July 16 but on a slower pace thanks to recovery of several blue chips. The VN-Index on the HCM Stock Exchange edged down 0.63 percent to close the session at 626.90 points as the decliners outnumbered the advancers by 106 to 89 while other 110 codes went flat. Most of bank stocks extended losses, but some other large-cap shares rallied, which cushioned the fall. Members of the top 30 shares by market value and liquidity like steel market's Hoa Phat Group regained 3.5 percent while insurer Bao Viet Holdings (BVH) increased 1.6 percent and Saigon Securities Inc (SSI) rose 0.4 percent. However, many others still slumped including Masan Group (MSN), VinGroup (VIC) and Vinamilk (VNM), pulling the VN30 down 0.37 percent to 649.06 points. "The market is struggling to test investors' expectations as well as demand power while the VN-Index is approaching the five-year peak after a long rally," analysts at Saigon-Hanoi Securities Co wrote … [Read more...]

Focus on mid-cap shares lifts market

Blue chips continued to prop up the market although bank stocks extended losses on profit taking (Photo: apl.edu.vn) Growth weakened towards the end of June 4 session but liquidity climbed as traders focused money on mid-cap shares. On the HCM City Stock Exchange, the VN-Index inched up 0.19 percent to close at 568.99 points while the VN30 which tracks the top 30 shares by market value and liquidity rose by a more substantial 0.32 percent to end at 587.48 points. Blue chips continued to prop up the market although bank stocks extended losses on profit taking. Lenders like Vietinbank (CTG) and Sacombank (STB) lost ground but other large-cap stocks like VinGroup (VIC), Vinamilk (VNM), Bao Viet Holdings (BVH), and Hoang Anh Gia Lai Co (HAG), apart from FPT Corp (FPT), Hoa Phat Group (HPG) and Gemadept (GMD) increased strongly. "Investor confidence was heightened as cash flows continued to be channelled into the equity market," analysts at FPT Securities Co wrote on their website … [Read more...]

Market sees slow trade but slight price increases

an-affordable-condo-project-in-binh-tan-district-in-hcmc-photo-dinh-dung-737452-32c74-giaphu5-web-200-100x100

Property developers are racing to launch big promotions, including cash and lucky draw prizes and favorable payment conditions, to lure homebuyers to invest in the long ailing real estate sector. While trade declined this year, prices remained stable in the residential for sale segment. However, prices are expected to fall. According to market research company CB Richard Ellis Vietnam (CBRE), although some commentators said that the residential market was still overpriced and had further to fall, it had settled in the year's first quarter. Prices in the luxury and high-end sectors remained flat, while the mid-end market and the affordable sector saw an 8.5% and 8.3% year-on-year price increase respectively. An affordable condo project in Binh Tan District in HCMC -Photo: Dinh Dung In the first quarter, high-end real estate was worth US$1,878 per square meter and mid-end property sold for US$998 per square meter, while the affordable sector reached US$720 per square meter, said … [Read more...]

Property trade disrupted by new red tape

Stare management agencies and real estate companies alike are witnessing their business coming to a halt because of the amended law, which went into effect August 1, relating to the issuance of ownership certificates for both house and land. Under the law, both the land and the house on it will be certified in one title instead of two separate titles as before. Lacking guidance, however, the change has embarrassed district level management organizations with many of them having stopped granting ownership titles and using confusion as an excuse. Without exception, real estate companies have lost business because they cannot execute the legal paperwork for their customers when transactions are completed. Trading waits for new title A file photo featuring customers trading at the ACBR property trading floor in downtown HCMC - Photo: Dinh Dung Pham Van Hai, general director of ACB Real Estate Services Co. (ACBR), told the Daily last week that his property trading floor in downtown HCMC … [Read more...]

Change to Real Estate Law begets challenges

1717285-ap20

It has been more than a month since Vietnam’s Law on Real Estate Business came into effect. Investors and their legal advisers had been eagerly anticipating this law, as it sees Vietnam move towards a more transparent legal framework for the real estate sector. The real estate business law still discriminates between foreign and local investors Photo: Le Toan However, while there are positive changes, several challenges lie ahead as certain provisions of the law remain ambiguous, and discrimination between local investors and foreign investors is still an issue. This article highlights some of key challenges that investors and their advisers should consider prior to investing in and conducting their real estate projects in Vietnam. Foreign investor and local investor discrimination There remains a distinction in investment treatment afforded to foreign investors and local investors in the real estate business. For example: For off-plan properties (sites that have yet to be … [Read more...]

New property law piles risk on banks

HCM CITY (VNS)— A proposed decree to guide the recent amendments to the Law on Real Estate Business that requires housing developers to get guarantees from banks before they can sell or lease out units needs to be more specific to ensure safety, a developer has warned. Nguyen Van Duc, deputy director of Dat Lanh Real Estate Company, told a seminar held in HCM City to collect feedback on the draft decree that generally a developer needs bank loans for land clearance and buying land use rights and then for construction. Now, with the guarantee, all the risks pile on banks if a project gets into trouble, he pointed out. In reply, Vu Van Phan, deputy head of the Ministry of Construction's Housing Management and Real Estate Market, said the State Bank of Viet Nam would issue a circular to address this. Phan said the guarantee is to safeguard buyers' rights since many people who paid to buy apartments had been unable to get back their money when projects stalled. Le Hoang Chau, … [Read more...]

Experts pick holes in new bank guarantee for apartment buyers

"Now, with the guarantee, all the risks pile on banks if a project gets into trouble", Nguyen Van Duc, deputy director of Dat Lanh Real Estate Company said. Photo dothi.net

A proposed decree to guide the recent amendments to the Law on Real Estate Business that requires housing developers to get guarantees from banks before they can sell or lease out units needs to be more specific to ensure safety, a developer has warned. Nguyen Van Duc, deputy director of Dat Lanh Real Estate Company, told a seminar held in HCM City to collect feedback on the draft decree that generally a developer needs bank loans for land clearance and buying land use rights and then for construction. Now, with the guarantee, all the risks pile on banks if a project gets into trouble, he pointed out. In reply, Vu Van Phan, deputy head of the Ministry of Construction's Housing Management and Real Estate Market, said the State Bank of Vietnam would issue a circular to address this. Phan said the guarantee is to safeguard buyers' rights since many people who paid to buy apartments have been unable to get back their money when projects stalled. Le Hoang Chau, chairman of the HCM … [Read more...]

Property expo to open in late July

1712848-batdongsan-24715

(CPV) – The Vietnam Real Estate Expo 2015 will be held from July 31st to August 2nd, at the National Architecture and Planning and Construction Exhibition Center in Hanoi, said the Vietnam National Real Estate Association (VNREA) in a press conference on July 23rd. Mr. Tran Ngoc Quang, General Secretary of VNREA, said that the event will introduce an overview of activities in the real estate markets of Hanoi in particular and of the whole country in general. Currently, the event has 92 booths from big investors such as FLC group, Hanoi Construction Corporation, Housing and Urban Development Corporation, Viglacera Corporation, Hanoi Housing Development Corporation and GP Invest. The investors will introduce their property products, advertise their brands, promote their businesses and find cooperative opportunities at the expo. In addition, they will introduce products in social housing, villas, apartments, building materials, and interior and exterior … [Read more...]

Office for lease market sees bright future ahead

The office for lease market has seen an explosion of activity Photo: Le Toan

The implementation of the revised Law on Real Estate Business is expected to attract a range of new investors to the office for lease market. From July 1, foreign invested enterprises are allowed to re-lease their rented properties, and can acquire and own a completed building for their own use, provided that they did not develop it themselves. "This is an important step in extending the business activities that foreign developers are allowed to participate in. The trend of long-term leasing or selling office space is becoming more popular, even in uncompleted office buildings. This is considered another investment channel, as investors look to diversify assets," said Marc Townsend, managing director of CBRE Vietnam. Investors are actively collecting new projects in line with this upcoming trend. Mapletree, one of the biggest Singaporean real estate investors in Vietnam, recently bought The Centre Point in Ho Chi Minh City and Pacific Place in Hanoi, and are currently developing … [Read more...]

Office-for-lease market forecast to rise

A view of Vietcombank Tower in HCMC’s District 1, which was put into use in the second quarter of this year - PHOTO: MANH TUNG

Manh Tung Duong Thuy Dung, head of research and consulting at CBRE Vietnam, said the 2014 Law on Real Estate Business, which became effective on July 1, allows foreign-invested enterprises to lease their rented assets and buy buildings for their use. This enables foreign firms to find secondary investors and get access to different capital sources easily. "Therefore, much office space will be offered for lease or sale under long-term contracts," Dung said. CBRE Vietnam forecast the five sectors with high office demands would be technical services, information technology, tourism, outsourcing and energy. Alex Crane, general manager of Cushman & Wakefield Vietnam, said the demand for office space for lease in HCMC is increasing, backed by growth in information technology, finance, insurance, pharmaceutical, science and fast-moving consumer goods sectors. Cushman & Wakefield Vietnam predicted demand for office space would grow in both innercity and suburban areas of … [Read more...]

First property expo coming to Hanoi

The Vietnam National Real Estate Association (VNREA) has announced the program for the Vietnam Real Estate Expo, the first of its kind in the country, being held from July 31 to August 2 at the National Architecture and Planning and Construction Exhibition Center in Hanoi’s Nam Tu Liem district. According to Mr. Tran Ngoc Quang, General Secretary of VNREA, the expo aims to promote the sustainable development of the real estate market, increase links between buyers and sellers, and bring real estate enterprises together to introduce and promote their image, products and brands. With over 100 booths the expo is expected to attract hundreds of large enterprises with reputations in the market regarding projects, product distribution, building materials, and interior and exterior design, as well as financial organizations. A representative from VNREA also said that within the framework of the expo many workshops relating to Law on Housing, the Law on Real Estate Business, the Land … [Read more...]

M&A boom could see 2012 record surpassed in 2015

HA NOI (VNS) — Experts and investors see another booming year for M&A (mergers and acquisitions), in 2015 which is expected to beat the record of nearly US$5 billion in value seen in 2012. ASEAN has been rising as an attractive destination for foreign investors in recent years. This is not only a huge consumer market with around 600 million people but also being favoured for its cheap and young labour market. Furthermore, the establishment of the ASEAN Economic Community by the end of this year will create comprehensive economic integration among the 10 member countries. Viet Nam is forecast to cash in on the movement of capital flows in the region. The country is widely believed to be ready for a second wave of M&A, with the total value of transactions expected to reach $20 billion between 2014 and 2018. According to a research of the M&A Forum 2015, total value of such deals in Viet Nam touched almost $4 billion in 2014, an increase of about 20 per cent over the … [Read more...]

Real Estate Expo 2015 to showcase in Hanoi

1705843-ttbdsvn

The Vietnam National Real Estate Association (VNREA) will hold its first specialised real estate expo, the "VNREA Expo 2015" during July 31-August 2 at the National Architecture and Planning and Construction Exhibition Centre, in Hanoi’s Nam Tu Liem district. illustration photo Showcasing over 100 booths, VNREA Expo is expected to attract the participation of hundreds of enterprises, vying to introduce their property products, advertise their brands, promote their businesses and find cooperation opportunities. These enterprises will introduce products of the property as well as construction industries, such as social housing. villas, apartments, building materials and interior and exterior decoration. Tran Ngoc Quang, general secretary of VNREA, said that the organisation board was committed that customers would find the best products at good prices, which meet the demand as well as the payment capacity of customers. The customers will have complimentary access to advice on … [Read more...]

Laws come into effect on July 1

1701787-luat

The Housing Law, the Law on Real Estate Business, the Law on Enterprises, the Law on Managing and Using State Capital in Enterprises’ Business and Production and the Investment Law are among the ten laws which have been effective as of July 1. The 2014 Housing Law allowed foreign organizations to own houses in Viet Nam. Together with foreign businesses investing in housing projects in Viet Nam, foreign invested businesses, representative offices and branches of foreign enterprises, foreign investment funds and foreign banks’ branches operating in the country are also able to own houses. According to the Law on Real Estate Business, real estate businesses must have at least VND20 billion (US$920,000) of legal capital instead of VND6 billion as earlier regulated. Operating businesses failing to fully meet the law's conditions and terms are required to have them done within one year since the law’s effective date. The Law on Enterprises has fully institutionalized … [Read more...]