BSBG’s Asia Office manager Andrew Meehan was in attendance at the Real Estate Symposium 2018, held in Ho Chi Minh City, Vietnam. During the course of the symposium, which was hosted by the Australian Chamber of Commerce in Vietnam (AusCham), many key updates were given on market conditions in terms of the national economy, on real estate projects and construction activity.
A number of issues took centre stage at the symposium, which included panel discussions and presentations. Here are the highlights:
New Economic Zones
An upcoming ruling on the creation of new special economic zones is due shortly, and this is part of a framework designed to stimulate growth in HCMC, particularly in the in tourism and industrial sectors.
Tourist numbers continue to rise, with the latest trend continuing through Q3 2018 and looking likely to remain positive through 2019.
Manufacturing is continuing to move to Vietnam from China. However, a large percentage of Vietnam’s manufacturing comprises making parts for supply to China.
Vietnam is keen to adopt new technology, and will launch 4G officially in 2020. Once this is in place, it is predicted Artificial Intelligence and Robotics will be introduced within industries such as construction.
Bricks v Clicks
Retail trends in Vietnam are shifting, and e-commerce is on the increase as more and more online shopping options are introduced. Amazon, Shopee, and Lazada are growing in popularity, with Shopee now officially the 14th most visited website in the country. This has led to the urgent demand for logistics warehouses across the country.
As previously covered in the BSBG blog, now is an exciting time for Vietnam architecturally. New projects continue to adorn the horizon in the country, with some of monumental scale. During the symposium light was shed on some of those causing excitement in the hospitality and tourism arena.
CocoBay – Da Nang
CocoBay is a hugely ambitious and expansive masterplan development in Da Nang, currently being developed with aspirations of becoming the most popular entertainment and tourism destination in the whole of South East Asia. The resort includes the longest pedestrian street in Vietnam, a 1,500 seat fish restaurant, a 2,000 capacity outdoor arena, an Opera House, Conference and Exhibition Centre, Beach Club, an Amusement Park, and a plethora of hotels.
The Arena – Cam Ranh
A modern entertainment resort featuring four striking ‘condotel’ developments, there are high hopes for this beach resort in Cam Ranh. The premise is that investors will individually own the units (more than 5,000), and are able to then rent their apartments through the hotel operator in charge of each of the four condole buildings. Features of the development include a fountain display and a large entertainment arena for live music and events. Apartment handover is scheduled for Q4 of 2019.
Phu Quoc Marina – Phu Quoc
Phu Quoc Marina features an Intercontinental Resort as the centrepiece, surrounded by high-end developments, all complete with the ‘condotel’ concept. An amusement park is scheduled to draw in the tourists, while a sailing club allows visitors to enjoy the freedom of the Gulf of Thailand.Other projects of note within the hospitality sector include Sonasea Harbour City in Van Don, FLC in Quy Nohn, and Mui Dinh Eco Park in Ninh Thuan.
Hotel developments are not the only projects underway or forthcoming. Major new infrastructure is also to be introduced throughout Vietnam. Van Don International Airport is due to open in December, while the $500 million Ha Long expressway which connects the city to its new airport is due to open at the same time. Another airport project which, although not yet confirmed, has been acknowledged as a priority project for the future, is the Da Nang International Airport expansion.
There are many positives which were highlighted at the symposium, but some challenges were also identified for the real estate sector, and the progression of Vietnam as a top tourist destination. The underwhelming quantity of quality but affordable housing, the difficulty in obtaining land as a developer, and, with the raft of hotels soon to open, the task of finding qualified and trained staff capable of delivering service to the highest intentional standards were just a selection of those identified.
Andrew Meehan had this to say about AusCham’s Real Estate Symposium: “AusCham events are always very well attended by international business leaders with operations in Vietnam. The symposium presents the opportunity to stay in touch with the developments nation-wide in Vietnam, and not only those that are happening on our doorstep here in Ho Chin Minh City. No question that Vietnam is a rapidly developing nation and a very exciting place to be at this moment. BSBG is pleased to be playing a role in this development, and as our reputation grows here I see our involvement increasing and our expertise lending value and proficiency to forthcoming projects.”