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...]

Banks see simultaneous changes in top positions

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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...]

Top local banks see simultaneous changes in top positions

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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...]

Experts warn of apartment oversupply in city

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Manh Tung The property market here in the city has seen many property projects launching new products in November alone. In the middle of this month, Gia Hoa Co. Ltd. started selling apartments of Block Picasso at The Art apartment project in District 9. The project consists of ten blocks of 18 floors. Thanh Yen Land has launched model apartments of Depot Metro Tower-Tham Luong invested by Minh Nguyen Long Co. in District 12. This project is part of the Metro apartment chain and comprises two 15-floor blocks with units of 57-70 square meters. Hung Thinh Corp.’s Lavita Garden project in Thu Duc District and near the Ben Thanh-Suoi Tien metro line has also been introduced to customers. Two 20-floor blocks of Lavita Garden will supply the market with 648 units measuring 50.37 to 71.68 square meters. Saigon Thuong Tin Real Estate Co. has unveiled thousands of apartments at many projects like the Jamona urban area in District 7, Charmington high-end apartments in District … [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

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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...]

Real Estate Market Keeps Growing in 2016

The Investment Bridge Newspaper recently hosted a workshop titled "Real Estate Market: Scenarios and Actions" in Hanoi. The event was attended by over 300 business leaders, investors and experts. Most attending specialists shared the common view that the real estate market will rebound strongly in 2016. According to property experts, the clearest ground for the viewpoint is the positive economic recovery of Vietnam, with growth at nearly 6.7 per cent in 2016. Besides, positive changes in the amended Housing Law like allowing foreigners and overseas Vietnamese to own real estate in Vietnam and the effect of amended Real Estate Business Law also affect the trend. Marc Townsend, Managing Director of CBRE Vietnam, said that commercial and housing real estate market in Vietnam has positively recovered the world financial crisis in 2008. With strong developments in 2016, Vietnam probably will become one of five hottest markets in Asia. He said forecast that the real estate markets in … [Read more...]

M&A deals flow

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In mid-July last year a one-hectare project at 265 Cau Giay Street in Hanoi’s Gau Giay district - one of the most favorable areas in the capital - saw site clearance get underway after lying idle for five years. As rumors swirled around the market over who the new owners of Cemaco Tower were, the FLC Group officially announced it had completed its acquisition of the project. One month later it kicked off construction of the tower, changing its name to FLC Twin Towers. With total investment of VND5.2 trillion ($238.3 million) from FLC, the project will comprise twin towers, including a 50-storey residential tower and a 38-storey office tower, with apartments for sale on a total area of 66,484 sq m, office space for lease with a total floor space of 35,960 sq m, and a shopping mall on 25,000 sq m. "The number of people seeking information and expressing a desire to purchase an apartment has reached 1,000; double than the number of apartments for sale," a representative … [Read more...]

How to tackle impasse at HCMC hi-end delayed properties?

DB tower - Ho Chi Minh City photo source: Zing

Government support is vital in tackling numerous delayed real estate projects in multiple hi-end areas in Ho Chi Minh City. According to Ho Chi Minh City Real Estate Association (HoREA), the city is currently home to 138 delayed realty projects which could not resume construction despite concerted efforts made on behalf of developers, banks and construction authorities. Hi-end office towers and residential buildings held a significant part of these delayed projects. Close to the foot of Khanh Hoi bridge in Ho Chi Minh City’s District 1 is the site of Saigon One tower project, developed by M&C JSC with an estimated investment capital of $200 million. Construction kicked-off in 2007 and the project is set to encompass a six-storey trade and services centre block, a 34-storey top-grade office block, a residential block with 133 hi-end condominiums together with all the modern service facilities. The project, however, has seen construction suspended for approximately three … [Read more...]

South Korea, Japan, Singapore scouting for real estate opportunities in Viet Nam

On April 12 South Korean securities firm Mirae Asset Securities Co announced it would join hands with global investment company AON BGN, a former AON Holdings, to take over Keangnam Ha Noi Landmark Tower in Ha Noi.

VietNamNet Bridge - On April 12 South Korean securities firm Mirae Asset Securities Co. announced it would join hands with global investment company AON BGN, a former AON Holdings, to take over Keangnam Ha Noi Landmark Tower in Ha Noi. They will pay 400 billion won (US$349.80 million) including 300 billion won from Mirae Asset, the largest overseas alternative investment made by the company. Earlier this year Singaporean real estate developer CapitaLand, decided to buy Somerset Vista and Vista Walk in Ho Chi Minh City from Nguyen Binh Commercial Joint Stock Company for $46.5 million. Another Singaporean developer, Keppel Land, paid $93.9 million to acquire the Empire City real estate project from the Thanh Pho De Vuong joint Venture Company. Many foreign investors, including from South Korea, Japan, and Singapore, are coming to the study the real estate market. Some are eyeing office buildings, whether already completed, under construction, or scheduled to be built, in Ha Noi and … [Read more...]

2015: Year of M&A activity in the property market

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VietNamNet Bridge – 2015 was littered with M&A activity in the property market, especially in residential, hospitality, and retail, and the trend is forecast to continue in 2016. In mid-July last year a one-hectare project at 265 Cau Giay Street in Hanoi’s Gau Giay district - one of the most favorable areas in the capital - saw site clearance get underway after lying idle for five years. As rumors swirled around the market over who the new owners of Cemaco Tower were, the FLC Group officially announced it had completed its acquisition of the project. One month later it kicked off construction of the tower, changing its name to FLC Twin Towers. With total investment of VND5.2 trillion ($238.3 million) from FLC, the project will comprise twin towers, including a 50-storey residential tower and a 38-storey office tower, with apartments for sale on a total area of 66,484 sq m, office space for lease with a total floor space of 35,960 sq m, and a shopping mall on … [Read more...]

Top 10 legal documents in 2015

An electronic equipment assembly line at the Republic of Korea-invested Hanmi Flexible Vina Compary in Trang Due industrial park, Hai Phong city __Photo: Danh Lam/VNA

1. The amended Civil Code The National Assembly on November 24, 2015, passed the amended Civil Code, which will take effect on January 1, 2017. Under the Code, subjects of civil legal relations include individuals, legal entities and households, cooperative groups and other organizations without the legal entity status, which may enter into civil relations through their members or representatives. Some of the Code’s remarkable contents include individuals’ rights to reassign or change their genders, register for changes in their civil status registration and have personal rights suitable to their genders; agreed interest rates; and dispute settlement when there are changes in civil contracts, etc. 2. The amended Penal Code The National Assembly on November 24, 2015, passed the amended Penal Code, which will take effect on July 1, 2016. The Code contains 26 chapters and 426 articles with highlighted amendments such as the abolition of death penalty for seven crimes, … [Read more...]

Opportunities for M&As in Vietnam’s real estate market

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VietNamNet Bridge – Domestic and foreign investors alike have been keenly monitoring opportunities for M&As in Vietnam's real estate market. Earlier this year Vietnam’s real estate market saw a huge acquisition made when AON Holdings, a mid-sized financial group from South Korea, officially took over Vietnam’s tallest building, Keangnam Hanoi Landmark 72 in Hanoi, after a series of scandals in South Korea hit the parent company. It was a good beginning for merger and acquisition (M&A) activities in the new year and there are expected to be many more investors pouring capital into the real estate market via M&A over the course of 2016. Year of M&A Several years ago, when Vietnam’s real estate market was in the doldrums, investment by domestic and foreign investors alike was extremely muted. Since mid-2014 and especially since the beginning of 2015 the real estate market has welcomed more foreign capital inflows, especially from Asian … [Read more...]

Property brokers required to pass exam, get certified

HA NOI (VNS)— Property brokers must pass examinations to get certificates to practise, according to the Circular 11/2015/TT-BXD issued by the Ministry of Construction recently. This is being done to revamp the operation of brokers in a real estate market showing signs of recovery. Accordingly, the provincial and municipal construction department would be in charge of organising the examination at least once a year, or they will authorise eligible organisations such as real estate associations. The certificate would be valid for five years from the date of issuance. Statistics of the Ministry of Construction showed that there were around 26,000 brokers granted certificates as of last year. Their certificates would be valid for five years from July 1, 2015, the date on which the Law on Real Estate Business 2014 came into force. The law regulated that passing examinations was compulsory to get broker certificates. Previously, it was much easier to get certified for the practice … [Read more...]

Apartment market in two major cities rising

The luxury apartment complex Hoa Binh Green City in Ha Noi. The apartment sector expects to extend its recovery this year on favourable macro conditions. — VNS Photo Doan Tung

HA NOI (VNS) — Viet Nam's real estate market is expected to continue recovery this year after gaining good business results last year, with the market reaping benefits from favourable macro conditions, experts said. According to property service provider CB Richard Ellis (CBRE) Viet Nam's report on Ha Noi property market in the last quarter of 2015, the average consumer price index (CPI) grew 0.63 per cent this year, which is the lowest level since 2001, and fell way below the annual average level of 5 per cent recently. This low level of the inflation rate supported the growth of consumption and investment level in 2015. Similarly, the low mortgage rate also supported activities in the real estate market last year. Credit growth improved in 2015, recording 18 per cent, significantly higher than the 12 per cent to 14 per cent average level in the 2012 to 2014 period, according to the State Bank of Viet Nam. Although the interest rate in Viet Nam has increased slightly after … [Read more...]