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New trends identified for real estate market in 2021

Vietnam’s real estate market is forming new trends with many prospects.

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Vietnam’s real estate market is forming new trends with many prospects.

On 18th November 2021, the Vietnam Outstanding Property Award 2021 was organised at Caravelle Hotel, Ho Chi Minh City. The event was also aired on Facebook, Tiktok, YouTube… of Nhip Cau Dau Tu Magazine.

The event was attended by nearly 300 guests who were high-ranking representatives from small businesses, real estate management companies. Vietnam Outstanding Property Award 2021 is the most prestigious and influential annual award of the Vietnamese real estate community, organized by Nhip Cau Dau Tu Magazine to honor real estate brands and individuals.

Excellent real estate companies with contributions and influences to new trends of real estate in Vietnam. They create a modern and civilized living space for Vietnamese people, promoting new trends to improve the competitive position of Vietnam’s real estate industry in the international market.

At the event, the winners showed the steadfast spirit and development strategy that adapts to the new circumstances of the Vietnamese real estate business. They have proactively and creatively created many new solutions and business platforms to help businesses not only overcome difficulties, but also open up new development directions of the real estate industry, despite current difficulties.

The health-economic-cultural-society crisis has caused great fluctuations to the real estate market. Also from this fluctuation, enterprises in the industry realize the need for sustainable growth to withstand future shocks. In addition to responding to market changes, investors must study more closely about changes in customers, distributors, and even competitors.

Notably, the driving force for the rise of Proptech companies (technology in real estate) over the past time. According to Mr. John Le, founder of Propzy, proptech will support businesses to actively apply technology in distribution, marketing, customer access, etc., while minimizing costs and increasing business efficiency.

Photo: Quy Hoa
Photo: Quy Hoa

In addition, businesses pay more attention to the trend of environmentally friendly housing, associated with many health care facilities, green materials, and energy saving… The winners of the Typical Real Estate Award 2021 are also the businesses that promptly launch products and solutions to catch up with the above trends.

Mr. Su Ngoc Khuong, Senior Director of Savills Vietnam said that real estate is still an investment that attracts the attention of Vietnamese people. According to him, the increase in real estate prices, especially housing in the past time, despite the epidemic affecting the economy, is reasonable as Ho Chi Minh City went through a lack of supply due to difficulties because of juridical issues in the past 5 years.

Secondly, in the current context, investors often look for investments to preserve assets, but not everyone has experience in investing in stocks, gold or foreign currencies. In that context, real estate is the most attractive channel. Finally, many people think that “people can increase, but land cannot” adds more plus points to this investment channel. “Not only Vietnam, this is the general trend of Asia,” said Mr. Khuong.

Sharing the same view on the attractiveness of residential real estate, Mr. Alex Pham, Co-Founder and CEO of Fina, a platform that connects users with home loans and investments, said before the pandemic the company handled the situation. From 5 to 10 loan applications, now the number has increased to 20 to 30 applications/day.

In addition, the Vietnamese market has become a new destination for luxury real estate – a segment for the super-rich. This product meets the increasing needs of customers in the luxury and ultra-luxury segments. More than just a place to return to, this product is also a place to demonstrate a new level of style and lifestyle. It also shows a new taste of investors, and at the same time increases the value of Vietnamese real estate in the international real estate market.

Real estate is an important sector for the economy. The recent contribution of the real estate market to GDP is between 7 – 10%. When the real estate industry grows, it not only benefits itself, but also creates spillover effects to the national economy. This expectation is placed on strong development resources and an increase in the number of real estate developments, construction contractors, distribution contractors, and many talents in urban architecture have created a push to help the real estate market sublimate.

Through these votes, the award has promptly honored many businesses with many excellent solutions and business models, creating the excitement of the real estate market, and at the same time contributing to the creation of new businesses, modern urban areas, housing models, living spaces … catch up with sustainable architectural trends, civilized living standards in the world.

Companies and individuals receiving awards at the event:

*Best design

– Vega City Nha Trang of KD Investment JSC

– Takashi Ocean Suite Ky Co of Danh Khoi Group

– Asiana Riverside of Gotec Vietnam

*Best Green project

– Ecopark of Ecopark Corporation

– Thanh Long Bay of Nam Group Investment JSC

– Medal for Urban Green Lifestyle Solution for Koro Company with several innovations in the application of clean water supply.

*Best Public Infrastructure

– Thanh Long Bay of Nam Group Investment Group

*Best Building Material, Interior & EM Supplier

– Hoa Sen Group

*Best Property Distributor

– Danh Khoi Group

*Best Developer

– Cat Tuong Real Estate Group

– Danh Khoi Group

– Ecopark Corporation

– Gotec Vietnam

– Khang Dien House

– Nam Long Group

– Phat Dat Group

– Phu Long Group

– Sun Group

– Vinhomes

– Hung Thinh Land

– Masterise Homes

– Novaland

*Successful Leadership 

Mr Le Trong Khuong, CEO of Hung Thinh Land

*Typical Typical Real Estate Entrepreneur 2021

Mr. Bui Xuan Huy, CEO of Novaland.

Source: https://e.nhipcaudautu.vn/real-estate/new-trends-identified-for-real-estate-market-in-2021-3343113/

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“Vietnam is an attractive market for premium banking services” says Nuno Matos, Chief Executive Officer, Wealth and Personal Banking, HSBC

The explosion of the middle class marks huge potential to serve the affluent retail banking segment in Vietnam.

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The driven, young, rising middle-class population in the fastest-growing economy in the region, is making Vietnam an attractive market for premium banking and wealth services. Mr. Nuno Matos, Chief Executive Officer, Wealth and Personal Banking at HSBC, explains.

What’s your view on Vietnam’s wealth and personal banking market? 

Vietnam’s population is approaching 100 million people, and its economy is growing at a rapid pace, averaging 6% to 7% per year spurred by trade, strong FDI, and favorable demographics. One of the core factors is the country’s growing ‘middle segment’. Our own research shows that over two million Vietnamese may well own at least USD500,000 in wealth by the end of the decade, surpassing Singapore’s total. Moreover, the recent Knight Frank 2022 Wealth Report forecasts a 56% surge in Vietnam’s high-net-worth population and a 26% increase in ultra-high-net-worth individuals from 2021 to 2026.

Rising incomes translate into affluence and in turn, evolving needs across all segments of society. We expect this structural growth to precipitate demand for banking and wealth products and solutions. This is a compelling opportunity to be our customers’ financial partner as they progress in their wealth journey.

What is the driving force for Vietnam to enjoy such impressive economic growth?

 

We can attribute this growth to the culmination of a number of drivers. Foreign direct investments continue to flow into the country at a critical time for global supply chains, leveraging the Government’s initiatives aimed at welcoming international investors as well as its current emphasis on national core industries after two years of pandemic-related disruption.

I would also point to the emphasis that Vietnam’s Government is placing on “green growth” in the face of huge challenges caused by climate change. Last year at COP26, Vietnam took the important step of committing to net zero by 2050. We are very pleased to support these initiatives, in part through our commitment to arrange up to USD12 billion of direct and indirect sustainable financing for Vietnam and the corporate sector in Vietnam by 2030.

In summary, I believe the direction of the movement is positive and that Vietnam will realize its target to become a high-income country by 2045.

Could you please evaluate the potential of the affluent customers in Vietnam in comparison to other countries in the region?

It’s fair to say that the growth of the affluent population in Vietnam and, indeed, across Southeast Asia, presents a real opportunity for us to expand our affluent client base over the coming years in line with our ambition to become Asia’s leading wealth manager for the full spectrum of customers.

This is a multi-year ambition, backed by over USD3.5 billion in investments from HSBC, with Vietnam as a beneficiary as we expand and deepen our presence throughout Southeast Asia and the wider region.

This level of commitment reflects our bullishness towards Asia as a whole, where we continue to believe that wealth growth will outpace the rest of the world making it one of the most compelling opportunities in consumer banking today. Our results reinforce this view. For example, Asia accounted for 89% of the USD32 billion of net new invested assets our Wealth business brought in globally in the third quarter of this year.

What’s HSBC’s plan for Vietnam’s market in the upcoming time?

Currently, HSBC is the only international bank that provides retail and wealth management services in Vietnam. We are doubling down on our strategy to serve the country’s middle-class and affluent populations with the needs of family and global mobility privileges. With a strong international proposition and best-in-class Premier Relationship Managers, we continue to provide a well-rounded suite of banking and wealth management solutions worldwide to cater to the aspirations that our customers are building for themselves and their families.

We have also observed increased spending and borrowing by the middle class and affluent segments. Our aim is to become a leading player in Vietnam’s credit card market.

Similarly, given Vietnam’s rapid rate of urbanization, housing demand will continue to increase. And in a country and culture where home ownership is a priority, we aim to serve this need through our mortgage business.

What’s your view on the next generation of consumers – Gen Z?

Undoubtedly, the next generation is tech-savvy. These are customers who embrace digital banking, they embrace very agile ways of interacting with banks, and they are very much engaged in sustainability, especially with their increased awareness of climate change and its impact.

It’s important to recognize today that with Gen Z, a new type of consumer culture is emerging and that these customers will constitute the majority of the Vietnamese population in 20 years’ time.

We are acting today for tomorrow. We are digitalizing all our services and processes – front-to-back – to ensure that every service a customer requires can be accessed through their mobile phone. But, of course, when a customer needs to speak with someone for advice and a smile, they can still go to one of our branches.

Could you please share with us the key trends that are shaping the future of the retail banking market? 

I would highlight three key trends. The first, as I have discussed, is the rise of the middle class. Currently, Vietnam’s GDP per capita stands at around US$3,600 with a growth rate of 10%. This indicates a population with rapidly developing wealth needs spanning investments, planning, and protection. As with similar markets, we would also expect to see growing sophistication in those wealth needs, for example, demand for a wider range of investments for portfolio diversification.

Currently, HSBC is the only international bank that provides retail and wealth management services in Vietnam. Photo credit: Quy Hoa
Currently, HSBC is the only international bank that provides retail and wealth management services in Vietnam. Photo credit: HSBC

The second trend is the digitalization of banking services. Customers want the option of banking from the comfort of their homes or on the go, on their mobile devices. Our consumers are quick to adapt to contactless, online ways of fulfilling their consumption needs. They are also more comfortable communicating and collaborating virtually. That’s why everything we do today goes mobile-first. Our model is people plus technology.

The third is the rise of ESG and the critical need to think and act sustainably. The banking industry has an important role to play in financing a net zero economy. This includes helping individuals make more responsible consumption and investment decisions that contribute to a sustainable society.

Source: https://e.nhipcaudautu.vn/companies/vietnam-is-an-attractive-market-for-premium-banking-services-says-nuno-matos-chief-executive-officer-wealth-and-personal-banking-hsbc-3349329/

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Firm jointly established by Vietnam’s Kido, Vinamilk disbanded

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Vietnamese dairy giant Vietnam Dairy Products JSC (Vinamilk) and packaged food producer Kido Group Corporation announced the dissolution of their ice cream and non-alcoholic beverage joint venture, Vibev Food and Beverage Joint Venture Company Limited, after nearly two years of operation.

The dissolution decision was announced by Kido Group Corporation chairman Tran Kim Thanh and Vinamilk CEO Mai Kieu Lien.

Thanh attributed the dissolution to “the impact of the global economy, unpredictable fluctuations in the domestic market, and changes in Kido Group’s development orientations.”

Meanwhile, Vinamilk CEO Lien said Vibev was scrapped due to changes in business development orientations of both Vinamilk and Kido.

As publicized by the Ho Chi Minh City Stock Exchange (HoSE) early this month, Vinamilk will work with Kido and Vibev with a spirit of cooperation to complete dissolution procedures in line with the law.

Vinamilk and Kido on June 9, 2020 announced the establishment of their joint venture Vibev, specializing in manufacturing and trading beverages, such as tea, milk tea, ice cream, and frozen food.

On March 1 last year, Vibev was officially founded with an initial investment of VND400 billion (US$16.4 million), to which Vinamilk and Kido contributed VND204 billion ($8.4 million) and VND196 billion ($8 million), or 51 and 49 percent, respectively.

At the time, Vibev general director Mai Xuan Tram said that the non-carbonated beverage sector in Vietnam had extreme potential. Most suppliers of fresh drinks were small with low technology and operated on a small scale.

Therefore, the joint venture was expected to dominate the market based on the strengths of Vinamilk and Kido, thus becoming a leading company in non-alcoholic beverages in Vietnam.

According to Kido’s consolidated financial report, its investment in Vibev fell to VND160 billion ($6.6 million) at the end of the third quarter of this year but its holding was still maintained at 49 percent. 

It can be inferred that Vibev has suffered from an accumulated loss of nearly VND73 billion ($3 billion) after nearly two years of operation.

A report by SSI Securities Corporation showed that although the input cost increase has not been completely reflected in the consumer price index (CPI) of Vietnam, consumers can see the price hikes.

Food and beverage enterprises have increased the sale prices of their products by 2-10 percent on average.

The prices of these firms’ key input materials have also risen over the same period last year, such as flour by 30-40 percent, sugar by 30 percent, soybeans by 20 percent, and palm oil by 44 percent.

The beverage market witnessed intense competition among local and international brands.

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Vietnamese dairy giant Vietnam Dairy Products JSC (Vinamilk) and packaged food producer Kido Group Corporation announced the dissolution of their ice cream and non-alcoholic beverage joint venture, Vibev Food and Beverage Joint Venture Company Limited, after nearly two years of operation.

The dissolution decision was announced by Kido Group Corporation chairman Tran Kim Thanh and Vinamilk CEO Mai Kieu Lien.

Thanh attributed the dissolution to “the impact of the global economy, unpredictable fluctuations in the domestic market, and changes in Kido Group’s development orientations.”

Meanwhile, Vinamilk CEO Lien said Vibev was scrapped due to changes in business development orientations of both Vinamilk and Kido.

As publicized by the Ho Chi Minh City Stock Exchange (HoSE) early this month, Vinamilk will work with Kido and Vibev with a spirit of cooperation to complete dissolution procedures in line with the law.

Vinamilk and Kido on June 9, 2020 announced the establishment of their joint venture Vibev, specializing in manufacturing and trading beverages, such as tea, milk tea, ice cream, and frozen food.

On March 1 last year, Vibev was officially founded with an initial investment of VND400 billion (US$16.4 million), to which Vinamilk and Kido contributed VND204 billion ($8.4 million) and VND196 billion ($8 million), or 51 and 49 percent, respectively.

At the time, Vibev general director Mai Xuan Tram said that the non-carbonated beverage sector in Vietnam had extreme potential. Most suppliers of fresh drinks were small with low technology and operated on a small scale.

Therefore, the joint venture was expected to dominate the market based on the strengths of Vinamilk and Kido, thus becoming a leading company in non-alcoholic beverages in Vietnam.

According to Kido’s consolidated financial report, its investment in Vibev fell to VND160 billion ($6.6 million) at the end of the third quarter of this year but its holding was still maintained at 49 percent. 

It can be inferred that Vibev has suffered from an accumulated loss of nearly VND73 billion ($3 billion) after nearly two years of operation.

A report by SSI Securities Corporation showed that although the input cost increase has not been completely reflected in the consumer price index (CPI) of Vietnam, consumers can see the price hikes.

Food and beverage enterprises have increased the sale prices of their products by 2-10 percent on average.

The prices of these firms’ key input materials have also risen over the same period last year, such as flour by 30-40 percent, sugar by 30 percent, soybeans by 20 percent, and palm oil by 44 percent.

The beverage market witnessed intense competition among local and international brands.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20221205/firm-jointly-established-by-vietnams-kido-vinamilk-disbanded/70345.html

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Vietnam’s agro-forestry-fishery exports hit record high

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Vietnam raked in US$49 billion in export revenue from agro-forestry-fishery products between January and November of this year, exceeding the previous record of $48.6 billion set in 2021, according to the Ministry of Agriculture and Rural Development.

The ministry on Wednesday shared that Vietnam exported over $4.27 billion worth of agro-forestry-fishery products in November alone, down nearly five percent year on year.

During the same period, the country’s seafood export turnover hit $10.14 billion for the first time ever.

The Vietnam Association of Seafood Exporters and Producers (VASEP) will hold a ceremony to celebrate the milestone on December 10.

From January to November, there were eight commodities with export turnovers that surpassed $2 billion, including coffee ($3.5 billion, up 31.5 percent), rubber ($2.9 billion, up 3.2 percent), rice ($3.2 billion, up 6.9 percent), tra fish ($2.2 billion, up 61 percent), shrimp ($4.1 billion, up 14.6 percent), and wood and wooden products ($14.6 billion, up 9 percent).

Asian countries remained the largest importers of Vietnam’s agro-forestry-fishery products with nearly 45 percent of the market share, followed by America with 27 percent, and Europe with 11 percent.

As for importing countries, the U.S. took the lead with $12.3 billion.

China came in second with some $9.3 billion, followed by Japan with $3.9 billion, and South Korea with $2.3 billion. 

According to the Ministry of Agriculture and Rural Development, Vietnam, China’s unwillingness to end its zero-COVID policy will create a challenging future for Vietnamese farm produce for the foreseeable future. 

Moreover, due to the depreciation of China’s renminbi and Thailand’s baht over the Vietnam dong and U.S. dollar, China will likely increase imports from Thailand and reduce imports from Vietnam.

Meanwhile, Vietnam’s exports of wood pellets to the European Union (EU) remain low due to Europe’s strict origin traceability requirements.

The EU’s requirements for wood pellet imports are more stringent than those of Japan and South Korea, which is a significant challenge that will require Vietnamese exporters to improve their equipment and technology.

The Ministry of Agriculture and Rural Development will continue popularizing a protocol on the official export of Vietnamese durians to China, requirements for passion fruit exports to China, and requirements for pomelo exports to the U.S.

The ministry will also accelerate negotiations over a protocol on phytosanitary requirements for dragon fruit, longan, litchi, rambutan, and mango exports to China. 

It will also work with the General Administration of Customs of China to launch weekly online inspections into banana and durian batches shipped from Vietnam to its northern neighbor.

In addition, it will seek ways to remove technical and trade hindrances and pave the way for the export of Vietnamese products to other large and potential markets, such as Japan, South Korea, Myanmar, Australia, and New Zealand via official channels.

Specialized agencies will work with Japanese phytosanitary inspectors who come to Vietnam to check local dragon fruit, mango, and longan processing units in order to boost the export of these products.

The government assigned the Ministry of Agriculture and Rural Development an agro-forestry-fishery export revenue target of $50 billion this year.

If the export growth momentum is maintained in the last month of the year, the country’s agro-forestry-fishery exports this year will likely reach $53 billion.

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Vietnam raked in US$49 billion in export revenue from agro-forestry-fishery products between January and November of this year, exceeding the previous record of $48.6 billion set in 2021, according to the Ministry of Agriculture and Rural Development.

The ministry on Wednesday shared that Vietnam exported over $4.27 billion worth of agro-forestry-fishery products in November alone, down nearly five percent year on year.

During the same period, the country’s seafood export turnover hit $10.14 billion for the first time ever.

The Vietnam Association of Seafood Exporters and Producers (VASEP) will hold a ceremony to celebrate the milestone on December 10.

From January to November, there were eight commodities with export turnovers that surpassed $2 billion, including coffee ($3.5 billion, up 31.5 percent), rubber ($2.9 billion, up 3.2 percent), rice ($3.2 billion, up 6.9 percent), tra fish ($2.2 billion, up 61 percent), shrimp ($4.1 billion, up 14.6 percent), and wood and wooden products ($14.6 billion, up 9 percent).

Asian countries remained the largest importers of Vietnam’s agro-forestry-fishery products with nearly 45 percent of the market share, followed by America with 27 percent, and Europe with 11 percent.

As for importing countries, the U.S. took the lead with $12.3 billion.

China came in second with some $9.3 billion, followed by Japan with $3.9 billion, and South Korea with $2.3 billion. 

According to the Ministry of Agriculture and Rural Development, Vietnam, China’s unwillingness to end its zero-COVID policy will create a challenging future for Vietnamese farm produce for the foreseeable future. 

Moreover, due to the depreciation of China’s renminbi and Thailand’s baht over the Vietnam dong and U.S. dollar, China will likely increase imports from Thailand and reduce imports from Vietnam.

Meanwhile, Vietnam’s exports of wood pellets to the European Union (EU) remain low due to Europe’s strict origin traceability requirements.

The EU’s requirements for wood pellet imports are more stringent than those of Japan and South Korea, which is a significant challenge that will require Vietnamese exporters to improve their equipment and technology.

The Ministry of Agriculture and Rural Development will continue popularizing a protocol on the official export of Vietnamese durians to China, requirements for passion fruit exports to China, and requirements for pomelo exports to the U.S.

The ministry will also accelerate negotiations over a protocol on phytosanitary requirements for dragon fruit, longan, litchi, rambutan, and mango exports to China. 

It will also work with the General Administration of Customs of China to launch weekly online inspections into banana and durian batches shipped from Vietnam to its northern neighbor.

In addition, it will seek ways to remove technical and trade hindrances and pave the way for the export of Vietnamese products to other large and potential markets, such as Japan, South Korea, Myanmar, Australia, and New Zealand via official channels.

Specialized agencies will work with Japanese phytosanitary inspectors who come to Vietnam to check local dragon fruit, mango, and longan processing units in order to boost the export of these products.

The government assigned the Ministry of Agriculture and Rural Development an agro-forestry-fishery export revenue target of $50 billion this year.

If the export growth momentum is maintained in the last month of the year, the country’s agro-forestry-fishery exports this year will likely reach $53 billion.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20221203/vietnams-agroforestryfishery-exports-hit-record-high/70274.html

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