Domestic firms missing real estate boom

A recent survey by Vietnam Real Estate (Vietrees) showed that foreign companies are tapping into the market but most domestic firms lack the experience to adequately market their services.

Vietrees blamed the situation on local companies’ lack of capital and professional skills.

Most domestic companies, which dominate the market in number, do not have enough to capital to invest in thorough market research, and have few staff skilled in this area

Speculation causing real estate market fever

The market is now witnessing a virtual fever, and it is because of state management authorities’ shortcomings in using financial tools to regulate the market. It is clear that people are rushing to purchase apartments not to live in them, but to resell to get profit, because they believe that house prices will increase further. In fact, those who have actual demand for accommodation cannot afford houses and apartments with such high price levels

Hanoi: real estate market sees new fever

Hanoi’s real estate market is heating up day by day with the prices of apartments in luxury areas like Ciputra, The Manor, and Trung Hoa-Nhan Chinh up by nearly 100%.

Mrs Hoa, who owns a villa and an apartment at Ciputra, said that she had decided not to sell the apartment at this moment as she thought the price would rise further.

The price for villas has surged to VND60mil/sq m ($3,750), while the price for apartments is VND20mil/sq m ($1,250), which represent two-fold increases over the previous levels.

Financial Times runs HCM City real estate piece

The flow of money into London-listed property stocks is running towards Hong Kong, China, India, Japan, Macau and Viet Nam.

A Financial Times article entitled “Ho Chi Minh City awaits” that ran on October 8 called the trend “perhaps a logical step” as property markets in some Asian countries are expected to perform in line with their fast-growing economies.

According to the paper, the three funds of Vinaland, JSM Indochina and Aseana Properties have some or all their exposure to Viet Nam due to its lack of high-end real estate, which is in constrast with increased investor interest in the country.

Vietnam needs more than 80 banks

Sharing the same view, The Deputy Director of a bank said that the demand for banking services would increase in accordance with the increase in people’s incomes. The average income of Vietnamese people has increased from $300 per capita per year to $700. Meanwhile, the development of the real estate and stock market has helped increase the demand for banking retail services, which is reflected in the banking retail market boom in the last two years. However, the problem lies in the fact that Vietnamese people always follow others’ moves. Investors rush to set up banks just because they find the banking sector profitable, while they themselves do not have their own development plans. Therefore, it is necessary to draw up a banking development strategy which gives support to good banks and prevents bad ones.

VietNam – a bright spot for investor safety

Horst Geicke, a fund advisor in Viet Nam, said Viet Nam was a bright spot for investment safety in the Asian-Pacific region and an attractive destination for foreign investors. Geicke made the comment at an investors conference held by his firm - VinaCapital - in Ho Chi Minh City on October 4. Geicke added that Viet Nam’s strong economic growth made investors boost investment in this potential market. The two-day conference drew over 130 investors worldwide

Opportunities Beckoning Jews to Vietnam

With money he raised from West Germany, Kot built health stations in dozens of villages. He married a Vietnamese woman with whom hes raising a son. In 1994, when the government began promoting private health care, Kot opened up Family Medical Practice, now a bustling $8 million enterprise with offices in Hanoi, Danang and Ho Chi Minh City. Kot is one of a small but growing number of Jews in this southeast Asian nation. While 20 years ago there were practically no Jews living in Vietnam, the countrys growing economy has helped generate a Jewish presence in Hanoi and Ho Chi Minh City.