31 Aug 2012 Intellasia Finance Vietnam - Hong Kong Business ...

BUSINESS
Vietnam finance & business 31 August 2012
Ministry Tightens
Supervision on
Property Market
Mini-marts sprout up
in HCM City
In Ba Dinh District, prices vary from a five-floor 70 square metre house on Linh Lang
Street on sale for VND14.2 billion (USD676,190); to a 102-square metre home on Nguyen
Truong To Street sold at VND56 billion (USD2.6 million) and a 200-square metre
one at USD67 billion (USD3.1 million).
In Hoan Kiem District, a 65-square metre house on Hang Cot Street is valued at VND33
billion (USD1.5 million); rising to VND70 billion (USD3.3 million) for a 120-square metre
house on Ly Thuong Kiet Street.
Pham Xuan Can, Chair of Sohovietnam Real Estate Consulting Company, said current
economic difficulties and tightened banking loans were posing a challenge for real estate
investors, therefore, massive sales of such houses was inevitable; and despite the
outrageous prices being quoted, the prices included discounts of 20-30 percent lower
than at the height of the property boom. Despite the high prices, these luxury buildings
are still attracting buyers who seem to have more money than sense.
A representative from a real estate office on Ma May Street Hanoi said so far this year,
the office had only sold 1-2 apartments because the sellers were asking for too high
prices. Large houses were proving particularly hard to sell.
http://www.dtinews.vn/en/news/018/24517/million-dollar-homes-still-up-forsale.html
31/AUG/2012 INTELLASIA | VCCI
The Construction Ministry has decided to set up an interdisciplinary inspection panel
to check real estate market management activities
The Construction Ministry has decided to set up an interdisciplinary inspection panel
to check real estate market management activities as specified in the prime minister's
Directive No. 2196/2011 on reviewed contents of underway housing development
projects and delayed housing projects.
The panel will classify ongoing housing development projects, suspended housing
projects and adjusted projects.
Deputy minister Nguyen Tran Nam, head of the inspection panel, said: The real estate
market has developed in both quality and quantity in the past time but it is prone to
weaknesses, volatility and unpredictability.
Vacated or suspended projects are quite many in Hanoi and HCM City. Notably, nearly
500 real estate projects in Hanoi are subjected to review but the affair has not been
agreed by the prime minister. Hence, in this inspection, the ministry will focus on disqualified
and law-violating projects.
http://stoxplus.com/News/89600/1/188/ministry-tightens-supervision-on-propertymarket.stox
31/AUG/2012 INTELLASIA | VNS
Opening mini supermarkets and convenience stores is becoming a new retail trend in
HCM City.
Many people do not want to go to supermarkets for minor purchases because of the
time it takes for parking and queuing up.
There is no inherent advantage in shopping in supermarkets either, with the prices of
some products being higher there than outside and the quality of frozen food not being
uniformly good.
Thus, mini supermarkets and convenience stores are an idea whose time has possibly
come, especially in suburban areas.
Vu Van Trinh, general director of the Titanmart chain, concurred. His company found
that demand for fresh foods and others was increasing rapidly in suburban areas like
Hoc Mon, and Thu Duc Districts, so it decided to set up mini supermarkets there, he
added.
There has been early success. Trinh said his company had eight mini supermarkets
which last year achieved a revenue growth of 20 per cent.
"We are looking for places to open more mini supermarkets this year and at the start
of 2013," he told Vietnam News.
Intellasia 31 August 2012 43 / 46