VietNam Business: third quarter

Showing posts with label third quarter. Show all posts

Sunday, February 13, 2011

Intel to open 1 bln USD factory in Vietnam

Intel Corporation, the world’s largest semiconductor chip maker, will
open its 1 billion USD chip assembly and testing facility in Vietnam
by the end of this month, an executive said.

Intel’s
investment in Vietnam is aimed at tapping growth opportunities in
emerging Asia , Navin Shenoy, Intel’s general manager for Asia-Pacific,
was quoted by The Wall Street Journal as saying on Oct. 14.

"We
expect Asia ’s PC market to continue to grow by more than 20 percent
annually in the next few years. We definitely will continue to invest in
Asia where we see growth," he said.

Intel Corp., the first
major foreign investor in high technology in Vietnam, started
construction of the Vietnam facility in 2007, and 4,000 people are
expected to employ for the plant, according to the paper.

The
Vietnam facility is Intel’s seventh assembly and test site. Other
sites include Penang and Kulim in Malaysia, Cavite in the
Philippines, Chengdu and Shanghai in China, and San Jose in
Costa Rica.

Shenoy said that China, India, Indonesia and
Vietnam are important markets of the US chip maker in Asia, which
has a young population and a low PC penetration rate. He added while the
company is seeing relatively weak sentiment in the US and European
consumer markets, Asian customers and enterprises continue to buy PCs.

Intel
reported more than 11 billion USD in quarterly revenue for the first
time in the third quarter. 58 percent of its third-quarter revenue came
from the Asia-Pacific region which rose 20 percent to a record 6.40
billion USD, compared with 5.32 billion USD a year earlier./.

Saturday, February 12, 2011

Landlords fight for new tenants

HCM CITY — Landlords in HCM City will vie with each other during the third quarter in offering better leasing deals including rent and amenities, according to the latest market review published by real estate firm CBRE.

The firm received 28 per cent more enquiries in the third quarter than the second, but more than 43 per cent of these were for spaces 150 sq.m and smaller, the review says.

The company estimates that around 1.2 million square meters of office space will be put in use over the next three years in the city.

Project owners will face a challenge from long-term tenants of large areas who plan to re-rent a part of their space at prices between 15-35 per cent lower than the standard ones, CBRS associate director of research and consulting Rudolf Hever, said at a press conference on Monday.

He also said (2,000-5,000sq.m) grade C buildings in prime locations would continue to be popular because their value and long-term lease would help tenants have greater control over their investment.

There were no new grade A office buildings on offer during the third quarter, but rents for the segement reduced lightly to a monthly average of US$36.7 per sq.m, which Hever said was due to higher demand for grade B and C spaces.

One grade B building and eight new grade C buildings came on line in the third quarter, providing a total of 63,180sq.m. — VNS

Friday, February 11, 2011

Vietnam real estate market offers more affordable options

Vietnam real estate market offers more affordable options The local residential market is undergoing a positive development: affordable housing is on the rise, according to the consulting firm CB Richard Ellis.

In a report released on Tuesday, the firm found that a wave of low-cost housing projects broke ground in Hanoi during the third quarter revealing a movement toward more affordable residential options.

The report authors also said that a new regulation (which caps the proportion of units sold via capital contribution contracts at 20 percent) is expected to help the market by enhancing transparency, placing pressure on developers with low financial capabilities, reducing the threat of price bubbles, and limiting speculative forces.

In the third quarter, the market was quieter with fewer new projects launched. Only 1,950 units were added to the market compared to last quarter’s 4,600 units, the report indicated.

The capital city expects to see the launch of 3,000 units in the fourth quarter, bringing total new supply in 2010 to nearly 16,000 units, it said. Following the opening and improvement of major infrastructure routes, western and southern districts are attracting new residents with easier access to core urban districts.

‘Pent-up demand’

Meanwhile, the fastest-growing segment of the real estate market in Ho Chi Minh City is also affordable homes.

“Twelve affordable projects were launched in the third quarter with asking prices ranging between US$563 and $923 per square meter,” CBRE said in a separate report, released on Wednesday.

“Despite the up-tick in inflation seen in the third quarter, the base of Vietnam’s economy is strong,” said Marc Townsend, managing director of CBRE Vietnam.

Commenting on the trend toward the affordable segment of the market, Rudolf Hever, associate director of Research and Consulting, said it’s clear that “as the Vietnamese economy continues to grow, and incomes increase, there is pent-up demand from people who were previously priced out of the market.”

He said the government has made a lot of effort to support the residential property market, including measures to increase transparency and increase the availability of loans.

“All these efforts work together, encouraging prospective home buyers to look at new and existing developments as a realistic option,” said Hever. “As these affordable projects achieve critical mass, the availability of facilities and amenities in these areas will increase too.”

Vietnam real estate market offers more affordable options

In the third quarter, the market was quieter with fewer new projects launched. Only 1,950 units were added to the market compared to last quarter’s 4,600 units, the report indicated.

‘Pent-up demand’

Meanwhile, the fastest-growing segment of the real estate market in Ho Chi Minh City is also affordable homes.

“Twelve affordable projects were launched in the third quarter with asking prices ranging between US$563 and $923 per square meter,” CBRE said in a separate report, released on Wednesday.

“Despite the up-tick in inflation seen in the third quarter, the base of Vietnam’s economy is strong,” said Marc Townsend, managing director of CBRE Vietnam.

He said the government has made a lot of effort to support the residential property market, including measures to increase transparency and increase the availability of loans.

Sunday, February 6, 2011

Domestic firms gain confidence in business outlook: survey

Domestic firms are pinning high hope on business outlook since Vietnam’s business confidence index (BCI) bounded back in the third quarter, up three points over the last quarter and 37 points against the third quarter in 2008.

The survey, conducted by Vietnam World Vest Base Financial Intelligence Services and PetroVietnam Finance Investment and Consultancy Co, was carried out on 262 companies in 11 domestic key industries, of which over 70 percent were medium and small-sized businesses.

The result signaled a recovery and improved investment potential for Vietnam’s economy in the near future, compared with the first six months of the year.

Over 70 percent of them believed that Vietnam's economy was better than a year ago and nearly 73 percent of businesses believe their profits will rise in the next 12 months. The number of businesses who were optimistic about the prospects for profit growth was around 10.8 percent in the first quarter’s BCI survey.

About 77.23 percent of surveyed enterprises surveyed said that the general economy of Vietnam is now better than the previous 12 months.

When asked to make a forecast about the country’s economy in the next 12 months, 84.35 percent of those interviewed said the economy would be better and none believed they would see a worse economy than during the past six months.

Compared with the second quarter, the number of optimistic businesses increased by 7.19 percent and that of pessimistic ones decreased by 1.85 percent.

As many as 60 percent would increase their employment and invest more in fixed assets while 72 percent believed that their revenues and profits would rise in the next 12 months, the survey said.

But the number of businesses who were worried about revenues and profits were up 0.06 percent and 1.96 percent over the last quarter.

The result also showed that many domestic businesses were still concerned about the adverse effects to their business operations of inflation and fluctuations in the exchange rate between the US dollar and Vietnamese dong.

Domestic firms gain confidence in business outlook: survey

The result signaled a recovery and improved investment potential for Vietnam’s economy in the near future, compared with the first six months of the year.

About 77.23 percent of surveyed enterprises surveyed said that the general economy of Vietnam is now better than the previous 12 months.

Compared with the second quarter, the number of optimistic businesses increased by 7.19 percent and that of pessimistic ones decreased by 1.85 percent.

As many as 60 percent would increase their employment and invest more in fixed assets while 72 percent believed that their revenues and profits would rise in the next 12 months, the survey said.

But the number of businesses who were worried about revenues and profits were up 0.06 percent and 1.96 percent over the last quarter.

Sunday, January 30, 2011

Vietnam’s business confidence index rebounds

Vietnam’s business confidence index (BCI) rebounded in the third
quarter, up three points over the last quarter and 37 points against the
third quarter in 2008.

The survey was conducted by Vietnam World Vest Base Financial
Intelligence Services (WVB FISL) and the PetroVietnam Finance Investment
and Consultancy Company (PVFC Invest).

After
surveying 262 companies in 11 key industries of the country (of which
over 70 percent were medium and small-sized businesses), the result
signalled a recovery and improved investment potential for Vietnam’s
economy in the near future, compared with the first six months of the
year.

When asked to make a forecast about the
country’s economy in the next 12 months, 84.35 percent of those
interviewed said the economy would be better and none believed they
would see a worse economy than during the past six months.

Compared with the second quarter, the number of optimistic businesses
increased by 7.19 percent and that of pessimistic ones decreased by
1.85 percent.

As many as 60 percent would increase
their employment and invest more in fixed assets while 72 percent
believed that their revenues and profits would rise in the next 12
months, the survey said.

However, over the last
quarter, the number of businesses who were worried about revenues and
profits were up 0.06 percent and 1.96 percent, respectively.

The result also showed that many domestic businesses were still
concerned about the adverse effects to their business operations of
inflation and fluctuations in the exchange rate between the US dollar
and Vietnamese dong./.

Wednesday, January 26, 2011

HCMC apartment market beginning to stir: report

In the Ho Chi Minh City property market, the apartment for sale segment saw both supply and demand rise in the third quarter, consultancy Savills Vietnam said in its quarterly report.

The supply of new apartments reached a record 16,600 units by the end of September, nearly triple the number from a year earlier.

Nearly 7,200 came into the market in the third quarter against 3,200 in the second and 2,900 in Q1.

The grade C segment saw the highest number of new projects, with the majority of them located in Tan Phu, Binh Chanh, and Binh Tan Districts.

The third quarter also saw the highest number of apartments sold in the primary market this year -- at approximately 4,400 units, they were equal to the cumulative number in the previous two quarters.

The majority of them, around 80 percent, were grade C units. Demand was mainly in the segment priced below US$1,000 per square meter, which saw sales of nearly 3,300 units.

Rising demand for apartments was fuelled by increasing disposable incomes and growing migration to the city.

The demand is expected to remain strong in the lower-cost segment where units cost VND800 million to VND1.5 billion ($42,000 – $79,000).

A further 26 apartment projects are expected to launch in the next two quarters, offering around 10,000 units.

In the next two years 104,000 new units will be built and put for sale.

Serviced apartments

There were around 2,950 serviced apartments of all grades for lease in the city, up 6 percent quarter on quarter.

Districts 1 and 3 alone accounted for 62 percent of them, with District 1 ranking first with 1,500 units.

With no new projects completed in Q3, the primary market remained unchanged at eight projects and approximately 800 units.

Almost 490 villas and houses were sold. The price of villa land ranged from $1,500 to $2,500 per square meter on average.

The Phu My Hung New Urban Area in District 7 accounted for 70 percent of the villas and houses that came into the secondary market and they sold at an average price of $600,000 –$2.8 million. HCMC’s population growth averages 3.5 percent a year, double the national rate.

With many projects being in the planning stage or awaiting licenses, the market is expected to add at least 9,500 villas and townhouses in the next few years, most in outlying districts like 9, Can Gio, Binh Chanh, Binh Tan, and Hoc Mon.

District 9 is likely to rank first in terms of total area of units and number of projects.

Between 2004 and 2009 around 1.6 million people migrated to the country’s southeastern region, with a million coming to HCMC alone, Savills said.

HCMC downtown still gold mine

Though becoming increasingly congested, District 1 and its neighbors District 7 and District 2 are still attractive to investors.

In the hotel segment, nearly 83 percent of future supply will be in District 1, concentrated in this district near the main tourist and business areas.

More than half of the 100,000 square meters of office space that will come into the market by year-end will be in District 1 buildings like Bitexco Financial Tower (37,000 square meters) and HMTC-Savico building (15,500 sq.m).

In the medium term, around 900,000 sq.m out of 1.2 million square meters will be supply in districts 1, 2 and 7.

In the retail segment, Districts 1 and 7 will account for 54 percent of the 700,000 sq.m of new supply by 2012.

Sunday, January 23, 2011

City apartments sector heats up

HCM CITY — In the HCM City property market, the apartment segment saw both supply and demand rise in the third quarter, consultancy Savills Viet Nam said in a report.

The total primary supply of apartments for sale reached a record almost 16,600 units by the end of September, nearly three times the number from a year earlier.

Nearly 7,200 of them came into the market in the third quarter against 3,200 in the second and 2,900 in Q1.

The grade C segment saw the highest number of new projects, with the majority of them located in Tan Phu, Binh Chanh, and Binh Tan Districts.

The third quarter also saw the highest number of apartments sold in the primary market – at approximately 4,400 units, it was equal to total sales in the previous two quarter.

The majority of them, around 80 per cent, were grade C units.

Demand mainly came from the segment priced below US$1,000 per square metre. It recorded sales of nearly 3,300 units.

Rising demand for apartments was fuelled by increasing disposable incomes and growing migration to the city.

Migrants

In five years since 2004, around 1.6 million people have migrated to the south-eastern area of Viet Nam, with a million coming to HCM City alone.

Demand is expected to remain strong in the smaller-sized segment where apartments cost VND800 million-VND1.5 billion ($42,000 – $79,000).

A further 26 projects are expected to launch in the next two quarters and will offer around 10,000 units.

In the next two years 104,000 more apartments are expected to be built and put for sale.

There were approximately 2,950 serviced apartments in all grades from A to C for lease in the city.

The number of units rose by 6 per cent quarter on quarter.

In this, the market share of Districts 1 and 3 was 62 per cent. District 1 ranked first with 1,500 units.

With no new projects completed in Q3, the primary market remained unchanged at eight projects and approximately 800 units.

Almost 490 villas and houses were sold. The average price of villa land ranged from $1,500 to $2,500 per square metre.

Phu My Hung New Urban Area in District 7 accounted for 70 per cent of the villas and houses that came into the secondary market and had an average price of $600,000–$2.8 million. HCM City's population growth average 3.5 per cent a year, double the national rate.

The market is expected to add at least 9,500 villas and townhouses in the next few years. Many projects are in the planning stage or awaiting for licences.

Most are concentrated in outlying districts like 9, Can Gio, Binh Chanh, Binh Tan, and Hoc Mon.

District 9 ranks first in terms of total area and number of projects (11). — VNS

Markets sort mixed economic signals

HCM CITY — Mixed macroeconomic signals and continued lateral movement of stock markets continued in September, but one of the most positive signs was estimated GDP growth of 7.16 per cent for the third quarter, according to a monthly review released by the company Viet Nam Asset Management yesterday.

The GDP rate during September contributed to the combined growth of the first nine months to 6.52 per cent.

The full-year GDP growth target was revised up to 6.7-6.8 per cent, given that the last quarter is usually the most robust period of economic activity.

For the first nine months, industrial production was up 13.8 per cent while retail sales revenue soared 25.4 per cent compared to the same period last year.

While economic growth is edging up, inflation and exchange rates are likely to become issues in the last three months of the year.

The September consumer price index (CPI) came in at 1.31 per cent month-on-month and 8.92 per cent year-on-year.

This was the first month-on-month increase of over 1 per cent since this February.

The sharp acceleration was driven by higher prices of foods, construction materials, gas and education fees, with the latter caused by a seasonal effect.

The exchange rate is another concern, as the unofficial rate, after months of converging with the official rate, suddenly heated up in September, trading at 1 per cent above the upper limit of the official trading band.

The recent fluctuation of the exchange rate in the unofficial market was primarily attributed to strong increases in gold prices in the last two months, accelerating inflation and widening the trade deficit.

The mix of a record-high gold price, an unexpected rise in September's CPI, and the divergence of official and unofficial exchange rates has once again sparked fears of inflation and further devaluation toward the year-end.

The securities market continued its prolonged lateral movement when the VN-Index closed the month at 454.52, almost flat against September.

The report suggests that despite the potential catalyst from corporate earnings in the third quarter, investors will likely remain cautious in October because of a stocks oversupply and mixed macroeconomic signals.

"We are still upholding our long-term interest in the consumer, IT, telecom and pharmaceutical sectors. For short-term seasonal play, we are closely watching natural rubber and some high-dividend defensive stocks. Overall, we strongly advise investors to look closely at individual firm's performances rather than choosing a specific industry," the report said. — VNS

Savills predicts good future for HCMC property market

Savills predicts good future for HCMC property market Ho Chi Minh City’s property market has bright prospects ahead as demand for apartments and business space will grow alongside the economy, UK-based real estate service provider Savills said on Thursday.

The company both evaluates and trades in the market.

A positive demand trend remains in the city’s apartment segment, “fueled by increasing disposable income and growing migration,” Savills found in its quarterly report. During the 2004 to 2009 period, approximately one million people moved to HCMC.

The company forecast that apartment demand will be strong in the smaller-sized and reasonably priced (US$42,000- 79,000) apartment segment.

Savills said the third quarter witnessed the highest number of apartments absorbed into the primary market, at approximately 4,400 units, equal to total absorption over the first six months of the year. Supply also surged, reaching a record of approximately 16,600 units – nearly triple last year’s figure.

HCMC will see the construction of 10,000 new units in the next two quarters, the company said.

The city’s economy expanded by 11.2 percent in the first nine months with a gross domestic product of around $16 billion, official statistics showed.

Savills said in the mid and long-term, the economy is expected to continue growing rapidly. For this reason, demand for office space will also rise.

“Grade A office buildings are waiting for a new wave of foreign direct investment inflow; while Grade B and Grade C buildings depend much on the health of domestic investment,” according to the report.

By the end of 2010, 14 new office buildings will be completed and will add approximately 100,000 square meters net area to the market.

As for the retail segment, Savills observed that both occupancy and rental rates tended to decrease during the third quarter. Average occupancy fell around 2 percent compared to the previous quarter, to 94 percent. The average rent was $75.2 per square meter per month.

“Along with the rapidly growing economy of HCMC, the demand for daily products has been growing substantially as well as diversifying,” the report said. “This leads to a high demand for retail centres of a big population in HCMC.”

Savills said the retail market has strong potential in the mid-term as Vietnamese consumers are beginning to gravitate towards luxury brands, international franchises and domestic goods of high quality.

Savills predicts good future for HCMC property market

The company both evaluates and trades in the market.

The company forecast that apartment demand will be strong in the smaller-sized and reasonably priced (US$42,000- 79,000) apartment segment.

HCMC will see the construction of 10,000 new units in the next two quarters, the company said.

The city’s economy expanded by 11.2 percent in the first nine months with a gross domestic product of around $16 billion, official statistics showed.

Savills said in the mid and long-term, the economy is expected to continue growing rapidly. For this reason, demand for office space will also rise.

By the end of 2010, 14 new office buildings will be completed and will add approximately 100,000 square meters net area to the market.

Saturday, January 15, 2011

Hanoi commercial property booms

The Hanoi real estate market saw optimistic development in the third quarter and the growth trend is expected to continue to the end of this year, Savills Vietnam real estate agent reported Tuesday.

"Good economic recovery in the third quarter helped the office and retail sectors in the property market," said Pham Thanh Son, Savills Vietnam economics expert.

Hanoi 's office occupancy rate average increased to 91 percent, a 4 percent jump, in the second quarter, according to Savills associate director and head of research and consultancy Tran Nhu Trung.

The average occupancy rate in the city's shopping centres remained high at 94 percent and many new shopping centres opened in this quarter.

The serviced apartment sector average dipped slightly to 91 percent from 92 percent in the third quarter but average rental rates increased by 0.4 percent to US$26 per sq.m per month, Trung said.

Son reported challenges to credit acquisition for the capital property market, which include depreciating dong, high interest rates for loans and Decree 71, which contributed to a decline in mobilised capital.

Son also asserted that the increased price of gold and the higher exchange rate attracted more investors to the financial market so available capital for property projects has declined.

Thursday, January 13, 2011

Hanoi commercial property booms

The Hanoi real estate market saw optimistic development in the third
quarter and the growth trend is expected to continue to the end of this
year, Savills Vietnam real estate agent reported on Oct. 5.

"Good economic recovery in the third quarter helped the office and
retail sectors in the property market," said Pham Thanh Son, Savills
Vietnam economics expert.

Hanoi 's office occupancy
rate average increased to 91 percent, a 4 percent jump, in the second
quarter, according to Savills associate director and head of research
and consultancy Tran Nhu Trung.

The average occupancy rate
in the city's shopping centres remained high at 94 percent and many new
shopping centres opened in this quarter.

The serviced
apartment sector average dipped slightly to 91 percent from 92 percent
in the third quarter but average rental rates increased by 0.4 percent
to 26 USD per sq.m per month, Trung said.

Son reported
challenges to credit acquisition for the capital property market, which
include depreciating dong, high interest rates for loans and Decree 71,
which contributed to a decline in mobilised capital.

Son
also asserted that the increased price of gold and the higher exchange
rate attracted more investors to the financial market so available
capital for property projects has declined./.

Wednesday, January 12, 2011

Ha Noi commercial property booms

HA NOI — The Ha Noi real estate market saw optimistic development in the third quarter and the growth trend is expected to continue to the end of this year, Savills Viet Nam real estate agent reported yesterday.

"Good economic recovery in the third quarter helped the office and retail sectors in the property market," said Pham Thanh Son, Savills Viet Nam economics expert.

Ha Noi's office occupancy rate average increased to 91 per cent, a 4 per cent jump, in the second quarter, according to Savills associate director and head of research and consultancy Tran Nhu Trung.

The average occupancy rate in the city's shopping centres remained high at 94 per cent and many new shopping centres opened in this quarter.

The serviced apartment sector average dipped slightly to 91 per cent from 92 per cent in the third quarter but average rental rates increased by 0.4 per cent to US$26 per sq.m per month, Trung said.

Son also asserted that the increased price of gold and the higher exchange rate attracted more investors to the financial market so available capital for property projects has declined. — VNS

Friday, January 7, 2011

Market to stay flat again this week, brokers

Local stock investors follow prices on the electronic quotation board of a securities firm in HCMC. Securities companies have forecast the market will remain flat with the key index moving between 443 and 460 points this week - Photo: Le Toan

HCMC – Since investors are still worried about huge share supplies in the future while cash flow remains weak, many securities enterprises forecast the market to remain flat with the VN-Index oscillating within 443 and 460 points this week.

The market closed the first week of October with a modest change of the stock index but a strong decline in trading volume. On the southern bourse, the VN-Index gained a slight two points, or 0.44%, against the previous week to close at 451.71.

Liquidity, meanwhile, tumbled as there was an average 37.1 million shares worth VND1 trillion traded daily, dropping by 20.4% and 21.3% against the previous week respectively. With three rising and two falling sessions, the market saw 64 stocks advancing, 174 stocks closing down while 25 others moved sideways at the end of the week.

Last week brought positive information of the macro economy, including strong growth rates of total retail and service revenue and gross domestic product (GDP) in the third quarter and the first nine months of this year. However, local investors were very cautious and decided to stand back to gauge the huge supplies in the last quarter of 2010, according to Vietnam International Securities Co. (VIS).

Foreigners, after a strong purchase on Thursday to beautify the third quarter financial reports, suddenly decreased trading the next day. The investors were still net buyers for around 7.1 million shares worth VND314 billion during the week.

“Foreigners are net buyers for a tune of over VND9.5 trillion this year, suggesting that they have bought a large number of stocks given narrow trading on the local market. They are expecting at a long-term index rally when both domestic and international economies actually recover,” VIS said.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said the third quarter earnings season is of course about to begin and with strong credit growth seen this quarter, investors expect on the whole results will be positive. “We note that credit growth is a good leading indicator of corporate activity and even profitability and we suspect most earnings surprises will be positive,” he said.

“However, it must be said that equity markets are slipping into inactivity once again characterized by tight trading ranges and low volumes. It was not surprising really with gold markets popping and attracting retail interest while the bond market sprang into life last week and drew attention from banks. We had thought we might see a short term bounce this week but clearly it has not happened. The short-term risk is slightly to the downside. We keep our view that medium to long term investors can continue to pick up stock at these levels,” Mac Cana added.

The Hanoi market also witnessed three rising and two falling sessions last week, with the HNX-Index losing 3.82 points, or 2.95%, against the previous week to close at 125.81. The market’s liquidity was sharply low with the average daily volume of 28.4 million shares worth VND660 billion, falling by 22% and 26% from the week earlier respectively. VIS said the market would see seesaw trading this week.

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