The long process of project approval from competent government agencies and the serious impact of COVID-19 have helped mergers and acquisitions in real estate sector become more active. A recent report released by VNDirect Securities Corporation stated that mergers and acquisitions (M&A) deals, especially in transferring part of large-scale real estate projects, were considered one of the fastest solutions for foreign developers when they want to jump into the Vietnamese real estate market, as well as for the domestic developers expanding their land fund and investment portfolios. This report also cited that some projects from giant developers are currently in the negotiation process with most expected to be completed this year. “Thanks to the improvement of the legal system in the Law on Investment, a range of deals will be done within this year with total value up to more than $1 billion,” the report cited. According to Tran Khanh Hien, deputy director of the Research at VNDirect, the real estate market in 2021 will be step-by-step resumed at its active level, based on the economic recovery, rising housing demand, and increased supply due to a range of projects that will be permitted to continue after long delays to review procedures. The Gem Riverside, funded by domestic developers Dat Xanh Group, and the Eco-smart city at Thu Thiem from South Korea’s Lotte Group, are among those looking to be kicked forward. Developers cited that M&A deals in real estate are a motivation for developers to be resumed after a long time of being impacted by the ongoing pandemic. Nguyen Thai Phien, senior financial director at Novaland Group, said that the corporation is based on M&A deals in order to develop its land fund and business for long-term development. Novaland started collecting land in 2005 via M&As and currently boasts more than 700 hectares in the east of Ho Chi Minh City, 700ha in Dong Nai province, and more than 2,000ha in Phan Thiet …
Steering in real estate
VIETNAM BUSINESS NEWS MARCH 4
Imports-exports contribute $2.37 billion to State budget in Jan-Feb State budget collection from import-export activities reached 54.76 trillion VND (2.37 billion USD) in the first two months, or 17.38 percent of the estimate and a year-on-year rise of 7.53 percent, according to the General Department of Vietnam Customs. In February alone, the collection was 23.66 trillion VND. As Tet (Lunar New Year) holidays fell in the month, the customs department worked together with relevant agencies to combat smuggling and trade frauds while increasing inspections. The customs force detected 967 cases in total from January 16 to February 15, seizing goods of 258.67 billion VND and contributing 8.6 billion VND to the State budget. State budget collection was estimated at 220.5 trillion VND in total in the first two months of 2021, equivalent to 16.4 percent of the year’s estimate./. Risky to invest in forex trading plaforms: Deputy Governor Forex trading via investment platforms had not been licensed in Viet Nam, posing significant risks to investors, Deputy Governor of the State Bank of Viet Nam Dao Minh Tu warned. Tu said at the Government’s meeting on Tuesday in Ha Noi that the operation of forex trading platforms was currently illegal, adding that the trading of foreign currencies and derivatives must be provided by credit institutions and commercial banks licensed by the State Bank of Viet Nam. Until now, no forex trading platforms had been licensed for trading, he stressed, warning about risks when investing via these platforms. Recently, some organisations like Lion Group called for investments in forex through Fx Trading Markets with attractive interest rates of up to 300 per cent per year and commissions. Lion Group attracted around 40,000 investors nationwide. Tu urged people to be cautious with these appealing calls, adding that there were signs of in-transparencies and frauds. “The skyrocketing profits in the current situation …
City urges districts to ensure fire protection at apartment buildings, public facilities
An old apartment building in HCM City’s District 4. VNA/VNS Photo Thanh Vũ HCM CITY— The HCM City People’s Committee has instructed districts to address problems and carry out measures to ensure fire prevention and safety at production establishments, apartment buildings, schools, hospitals and other buildings by October. Following the instruction, the city Police Department’s fire-fighting and rescue police division is working with agencies to check the implementation of measures in local districts. After an inspection on Monday, Colonel Huỳnh Ngọc Quan, the division’s deputy head, said that District 5 has many apartment buildings and schools built before 2001 that do not meet the criteria on fire prevention and safety and need to be upgraded. Nguyễn Xuân Trung, vice chairman of the District 5 People’s Committee, said that 55 per cent of all production establishments, apartment buildings, hospitals and schools in the district were built before 1975. Many of them have a high risk of fire, but the district faces a shortage of capital to upgrade them, he said. The district People’s Committee said it would not be able to repair and upgrade firefighting equipment as required by the city committee, and could only upgrade several apartment buildings and production establishments first. Quan said that the district committee should set up a steering board to address this problem and try to finish the work per the city committee’s requirement. People living in these apartment buildings should be provided firefighting devices to resolve sudden fires, Quan said, adding that they also should be educated about fire prevention and fighting measures. Since 2016, the city has carried out the upgrading or rebuilding of old apartment buildings. Under the programme, 199 old buildings have been repaired, according to the city Department of Construction. Two old buildings with 876 apartments in districts 3 and 10 were rebuilt. …
