Colliers International Vietnam Hanoi Market Insights

1. PERFORMANCE
The overall market experienced a downward trend in both rents and
occupancy. Average occupancy across all grades dropped 1.82ppts over
the quarter, staying at 86.4% while net asking rents were reduced to
USD22.8/sqm/month on average, down 2.57ppts q-o-q.
Due to new supply entering the market, Grade A’s occupancy and rents
decreased 5.98 ppts and 3.77ppts respectively compared to the previous
quarter. In contrast, Grade B’s performance recorded improvements,
reaching 91% in occupancy and USD17.65/sqm/month in average net
asking rents.
SUPPLY
The supply pipeline grew significantly in the first quarter of 2016 with
five new office completions, providing approximately 133,921 sqm NLA.
There is only one Grade A project coming online while the other four are
of Grade B standard.
From now until 2018, there is approximately 330,000sqm GFA of office
space entering the market. Most of new supply will be decentralised in
the West and Midtown area, creating intense competition with the existing
CBD.
DEMAND
Expansion and relocation are two key demand drivers of Hanoi office
market. The city west is an ideal option for tenants looking to reduce
operational costs while still securing high quality office space.
Due to an oversupply, the market has been favorable for occupiers, which
enables them to negotiate for better terms and incentives.
OFFICE SECTOR
Q1 2016 | MARKET INSIGHTS
HANOI
ECONOMY OVERVIEW
The combination of slowdown in manufacturing and decrease of
profitability in agricultural sector in Q1-2016 due to weather difficulties
may have caused a slow growth rate of GDP. Vietnam’s GDP grew 5.46%
in Q1-2016, significantly lower than 6.12% in Q1-2015. The Consumer
Price Index (CPI) increased to 0.57% m-o-m in March which resulted in
a 1.25% increment in the first three months of the year.
Export achieved USD37.9 billion, up 4.1% y-o-y while import values
were USD37.1 billion, down 4.8% y-o-y. FDI of newly registered and
supplementary capital was USD4.02 billion which was less than the
amount of USD5.607 billion in Q4 2015 but rose 119% y-o-y. The
disbursement value reached USD3.5 billion, a growth of 14.8% y-o-y.
Credit growth achieved 1.54% which was higher than the growth rate
of 1.25% same period last year. As manufacturing sector showed a
slowdown, the increase in credit growth is contributed by real estate
sector.
If Vietnam aims to set the GDP growth target for this year to at least
match the 2015 growth rate, the nation will have to make great efforts in
the next coming quarters.
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices
in 67 countries. Colliers International delivers a full range of services to real estate users, owner and investors worldwide, including global
corporate solutions, brokerage, property and asset, management, hotel investment sales and consulting, valuation, consulting and appraisal
services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-
most recognized commercial real estate firm in the world.
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no
guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties
of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers
International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).
©2016 Colliers International Research
OUTLOOK
It is forecasted that the overall market performance will continue
to witness imbalance between supply and demand. With ample
supply entering the market, vacancy is expected to be on the rise
while rent will be on downward trend. To attract new tenants,
landlords have to think of various marketing strategies and
promotional incentives.
Figure 1: Average Asking Rent by Grade
Table 1: New Supply in Q1 2016
Figure 2: Occupancy Rate by Grade
Source: Colliers International Research
Source: Colliers International Research
Source: Colliers International Research
HA VO
Research Manager
ha.vo@colliers.com
0%
20%
40%
60%
80%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015 2016
Grade A Grade B
Project name District Grade NLA (sqm)
TNR Dong Da A 37,411
789 Hoang Quoc Viet Cau Giay B 39,419
Hadico Tu Liem B 19,091
Diamond Flower Tower Thanh Xuan B 18,000
MD Complex My Dinh Tu Liem B 20,000
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015 2016
US$/sqm/month
Grade A Grade B

2. PERFORMANCE
Overall occupancy rate decreased 0.9ppts q-o-q, staying at 88.5% due to
weak business performance of some retail centers.
The average net asking rents nominally increased 0.2ppts q-o-q. The CBD
and non CBD sub-markets recorded large variances with rent, staying at
USD81.44/sqm/month and USD28.89/sqm/month respectively.
SUPPLY
The retail stock remained stable in the review quarter as no new project
came online. Currently, Hanoi market has approximately 750,000sqm NLA
from 50 buildings.
In terms of retail format, shopping centers take the largest share in the
supply pipeline, accounting for nearly 80% of the total net lettable area.
The market share of department stores and retail podiums are 10% and
11% respectively.
By location, the CBD is home of 4% of total retail supply, providing a
majority of small-scale podiums. The remaining supply is located in
non-CBD districts, including large-scale shopping centers and department
stores.
DEMAND
Vietnam’s young population and rising urban middle-class result in strong
consumer-spending potentials. However, given relatively low average
income across the nation, demand for affordable goods and services
outweighs luxury branded products.
To achieve higher footfall in all retail developments, retailers should focus
on selling mid-end items to customers.
RETAIL SECTOR
Q1 2016 | MARKET INSIGHTS
HANOI
ECONOMY OVERVIEW
The combination of slowdown in manufacturing and decrease of
profitability in agricultural sector in Q1-2016 due to weather difficulties
may have caused a slow growth rate of GDP. Vietnam’s GDP grew 5.46%
in Q1-2016, significantly lower than 6.12% in Q1-2015. The Consumer
Price Index (CPI) increased to 0.57% m-o-m in March which resulted in
a 1.25% increment in the first three months of the year.
Export achieved USD37.9 billion, up 4.1% y-o-y while import values
were USD37.1 billion, down 4.8% y-o-y. FDI of newly registered and
supplementary capital was USD4.02 billion which was less than the
amount of USD5.607 billion in Q4 2015 but rose 119% y-o-y. The
disbursement value reached USD3.5 billion, a growth of 14.8% y-o-y.
Credit growth achieved 1.54% which was higher than the growth rate
of 1.25% same period last year. As manufacturing sector showed a
slowdown, the increase in credit growth is contributed by real estate
sector.
If Vietnam aims to set the GDP growth target for this year to at least
match the 2015 growth rate, the nation will have to make great efforts in
the next coming quarters.
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices
in 67 countries. Colliers International delivers a full range of services to real estate users, owner and investors worldwide, including global
corporate solutions, brokerage, property and asset, management, hotel investment sales and consulting, valuation, consulting and appraisal
services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-
most recognized commercial real estate firm in the world.
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no
guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties
of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers
International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).
©2016 Colliers International Research
OUTLOOK
The general outlook for Hanoi retail in the short term is continued
oversupply, particularly those outside of the CBD. The market will
become more competitive, resulting in pressure on both rents
and occupancy rates. To attract more shoppers and satisfy their
diversified demand, landlords should organize special marketing
events and festivals in their retail centers.
Figure 3: Total Supply
Figure 2: Occupancy Rate
Figure 1: Market Performance
Source: Colliers International Research
Source: Colliers International Research
Source: Colliers International Research
HA VO
Research Manager
ha.vo@colliers.com
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2010 2011 2012 2013 2014 2015 Q1 2016
sqm
CBD Non-CBD
75
80
85
90
95
100
2011 2012 2013 2014 2015 2016
%
CBD Non-CBD
0
10
20
30
40
50
60
70
80
75%
80%
85%
90%
95%
100%
2008 2009 2010 2011 2012 2013 2014 2015 Q1
2016
US$/sqm/month
Rental rate Occupancy

3. PERFORMANCE
The review quarter recorded 3,980 successful transactions, down 34%
compared to the previous quarter. Sales momentum continued to be
strong in high-end and mid-end segments.
On the primary market, price growth of 2.9% q-o-q was recorded in the
mid-end segment. Asking price was soften in high-end and low-end
projects, a drop of 0.3% and 7.8% q-o-q respectively. Projects with
convenient traffic & location, reputable developers and well-established
facilities and amenities tend to increase their sale price.
SUPPLY
New supply was ample in Q1 2016 with approximately 4,479 units from 13
projects. Ha Dong, Tu Liem and West Lake are top three locations for new
condominium developments during the review quarter.
With the ongoing establishment of new townships in sub-urban districts,
Hanoi residential market will be abundant with more launches in coming
quarters of 2016.
DEMAND
According to Hanoi Statistics Office, the capital city’s population was 7.21
million in 2013. The number is expected to reach 8 million in 2020 and
young population of less than 35 years old will account for 50%. This
trend reflects strong potential for the apartment market.
CONDOMINIUM SECTOR
Q1 2016 | MARKET INSIGHTS
HANOI
ECONOMY OVERVIEW
The combination of slowdown in manufacturing and decrease of
profitability in agricultural sector in Q1-2016 due to weather difficulties
may have caused a slow growth rate of GDP. Vietnam’s GDP grew 5.46%
in Q1-2016, significantly lower than 6.12% in Q1-2015. The Consumer
Price Index (CPI) increased to 0.57% m-o-m in March which resulted in
a 1.25% increment in the first three months of the year.
Export achieved USD37.9 billion, up 4.1% y-o-y while import values
were USD37.1 billion, down 4.8% y-o-y. FDI of newly registered and
supplementary capital was USD4.02 billion which was less than the
amount of USD5.607 billion in Q4 2015 but rose 119% y-o-y. The
disbursement value reached USD3.5 billion, a growth of 14.8% y-o-y.
Credit growth achieved 1.54% which was higher than the growth rate
of 1.25% same period last year. As manufacturing sector showed a
slowdown, the increase in credit growth is contributed by real estate
sector.
If Vietnam aims to set the GDP growth target for this year to at least
match the 2015 growth rate, the nation will have to make great efforts in
the next coming quarters.
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices
in 67 countries. Colliers International delivers a full range of services to real estate users, owner and investors worldwide, including global
corporate solutions, brokerage, property and asset, management, hotel investment sales and consulting, valuation, consulting and appraisal
services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-
most recognized commercial real estate firm in the world.
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no
guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties
of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers
International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).
©2016 Colliers International Research
OUTLOOK
As buyers and investors have regained their market
confidence, demand for mid-end and high-end segment is
expected to remain higher in the next quarters. Affordable
units will achieve stable sales volume on the back of
reasonable price and strong demand from end-users.
Figure 3: Launch Supply by Year
Figure 1: Sales by Quarter and Segment
Source: Colliers International Research
Source: Colliers International Research
HA VO
Research Manager
ha.vo@colliers.com
Source: Colliers International Research
Figure 2: Changes in Secondary Prices by Quarter
-8
-6
-4
-2
0
2
4
6
8
2008 2009 2010 2011 2012 2013 2014 2015 2016
%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015 2016
units
Luxury High-end Mid-end Affordable
0
5000
10000
15000
20000
25000
30000
2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1
2016
sqm

4. PERFORMANCE
Townhouses dominated sale transactions as 70% of launched dwellings
were sold in the first quarter of 2016.
On the primary market, sale price remained stable. The average
secondary price dropped 0.8% q-o-q for villas but increased 1.3% q-o-q
for townhouses. By location, projects in decentralised districts witnessed
higher sale price. Compared to the previous quarter, Ha Dong District
recorded the highest price growth of 5.5% while Cau Giay and Hoai Duc
district had positive price increases of under 5%.
SUPPLY
The stock increased 1.9% q-o-q in the first quarter of 2016 with the
launch of five new projects, providing 859 dwellings. Due to large land
availability, Ha Dong district takes the largest market share, representing
27% of supply pipeline. Well-established infrastructure and convenient
traffic connection has attracted homebuyers to settle in this area.
DEMAND
Landed properties are preferred by Vietnamese people as this type of
accommodation is believed to increase value over time. Investors and
end-users are key demand drivers of the market with purposes of rental
income and owner occupation. Speculators who buy a property for
capital appreciation account for a small proportion in the buyer profile.
Demand for landed houses is expected to become stronger on the back of
high urbanization rate and rapid development of infrastructure in Hanoi.
VILLA & TOWNHOUSE SECTOR
Q1 2016 | MARKET INSIGHTS
HANOI
ECONOMY OVERVIEW
The combination of slowdown in manufacturing and decrease of
profitability in agricultural sector in Q1-2016 due to weather difficulties
may have caused a slow growth rate of GDP. Vietnam’s GDP grew 5.46%
in Q1-2016, significantly lower than 6.12% in Q1-2015. The Consumer
Price Index (CPI) increased to 0.57% m-o-m in March which resulted in
a 1.25% increment in the first three months of the year.
Export achieved USD37.9 billion, up 4.1% y-o-y while import values
were USD37.1 billion, down 4.8% y-o-y. FDI of newly registered and
supplementary capital was USD4.02 billion which was less than the
amount of USD5.607 billion in Q4 2015 but rose 119% y-o-y. The
disbursement value reached USD3.5 billion, a growth of 14.8% y-o-y.
Credit growth achieved 1.54% which was higher than the growth rate
of 1.25% same period last year. As manufacturing sector showed a
slowdown, the increase in credit growth is contributed by real estate
sector.
If Vietnam aims to set the GDP growth target for this year to at least
match the 2015 growth rate, the nation will have to make great efforts in
the next coming quarters.
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices in
67 countries. Colliers International delivers a full range of services to real estate users, owner and investors worldwide, including global corporate
solutions, brokerage, property and asset, management, hotel investment sales and consulting, valuation, consulting and appraisal services,
mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most
recognized commercial real estate firm in the world.
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no
guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties
of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers
International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).
©2016 Colliers International Research
Figure 3: Landed Property, Supply by Quarter
Source: Colliers International Research
Figure 1: Q-o-Q Changes in Secondary price
Source: Colliers International Research
Figure 2: Secondary Price by District
Source: Colliers International Research
OUTLOOK
Next quarters of 2016 is expected to have 10 projects coming
online and approximately 40 projects under planning stage. Some
projects that have been delayed for a long time will be restarted
to catch the new market cycle. Projects with reasonable price
and good supporting infrastructure will potentially achieve
stronger sales volume than others.
HA VO
Research Manager
ha.vo@colliers.com
95
100
105
110
115
120
125
130
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
dwellings
No. of Dwellings No. of Projects
0
20
40
60
80
100
120
140
160
180
200
Thanh
Xuan
Cau
Giay
Tay Ho Tu Liem Hoang
Mai
Ha
Dong
Long
Bien
Thanh
Tri
Hoai
Duc
Gia Lam Me Linh
USD/sqm
Q4-2015 Average Q1-2016 Average Market average price Q4 2015
-15
-10
-5
0
5
10
15
20
0
1000
2000
3000
4000
5000
6000
7000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2012 2013 2014 2015 2016
%
USD/sqm
Market average price Q4 2015 Q-o-Q changes

5. PERFORMANCE
Grade A dropped 1.9ppts q-o-q in rents and 2.4ppts q-o-q in occupancy
rates, averaging at USD31.4/sqm/month and 84% respectively. Grade
B slightly increased 0.45ppts q-o-q in rents and remained stable in
occupancy rates, reaching at USD22.1/sqm/month and 84% respectively.
The highest average asking rent for both two Grades was recorded in
West Lake and Hoan Kiem district, followed by Cau Giay District and Ba
Dinh District.
SUPPLY
Hanoi serviced apartment market consists of approximately 3,500 units
from 38 projects.
Grade A accounts for 59% of the total supply, providing 2,054 units from
15 projects. The majority of Grade A supply was located in Ba Dinh,
West Lake and Tu Liem district. Grade B takes 41% of the market share
with1,442 units from 23 projects. A significant proportion of Grade B is
located in Ba Dinh and Hai Ba Trung Districts.
DEMAND
Expatriates working for multinational enterprises, embassies and
consulates, international schools and universities are major occupiers in
Hanoi serviced apartments.
With increasing FDI inflows to industrial parks scattered around the capital
city and Bac Ninh, there is growing demand for serviced accommodation
for foreign experts. Despite having to commute everyday between the
two cities, expatriates still prefer to stay in Hanoi due to its convenient
facilities and attractive social entertainments.
SERVICED APARTMENT SECTOR
Q1 2016 | MARKET INSIGHTS
HANOI
ECONOMY OVERVIEW
The combination of slowdown in manufacturing and decrease of
profitability in agricultural sector in Q1-2016 due to weather difficulties
may have caused a slow growth rate of GDP. Vietnam’s GDP grew 5.46%
in Q1-2016, significantly lower than 6.12% in Q1-2015. The Consumer
Price Index (CPI) increased to 0.57% m-o-m in March which resulted in
a 1.25% increment in the first three months of the year.
Export achieved USD37.9 billion, up 4.1% y-o-y while import values
were USD37.1 billion, down 4.8% y-o-y. FDI of newly registered and
supplementary capital was USD4.02 billion which was less than the
amount of USD5.607 billion in Q4 2015 but rose 119% y-o-y. The
disbursement value reached USD3.5 billion, a growth of 14.8% y-o-y.
Credit growth achieved 1.54% which was higher than the growth rate
of 1.25% same period last year. As manufacturing sector showed a
slowdown, the increase in credit growth is contributed by real estate
sector.
If Vietnam aims to set the GDP growth target for this year to at least
match the 2015 growth rate, the nation will have to make great efforts in
the next coming quarters.
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices
in 67 countries. Colliers International delivers a full range of services to real estate users, owner and investors worldwide, including global
corporate solutions, brokerage, property and asset, management, hotel investment sales and consulting, valuation, consulting and appraisal
services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-
most recognized commercial real estate firm in the world.
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no
guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties
of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers
International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).
©2016 Colliers International Research
OUTLOOK
Due to large existing supply from the market, landlords will be
under pressure of reducing asking rents in the coming period.
Demand for this type of accommodation will sustainably grow
thanks to the rising number of foreign skilled workers in
industrial zones in Hanoi and neighboring provinces.
Figure 1: Average Asking Rent by Grade
Source: Colliers International Research
Figure 2: Occupancy Rate by Grade
Source: Colliers International Research
HA VO
Research Manager
ha.vo@colliers.com
Source: Colliers International Research
Figure 3: Supply by Segment
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2000 2005 2010 2011 2012 2013 2014 Q4 2015 Q1 2016
Grade A Grade B
units
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015 2016
Grade A Grade B
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015 2016
USD/sqm/month
Grade A Grade B

6. PERFORMANCE
Average gross asking rent in Hanoi’s IPs reached USD83/sqm/term and
the remaining Land Use Right was 34.8 years.
IPs in Hanoi had the average occupancy rate of 61.6%. Hoa Lac High- tech
park has the lowest occupancy rate of 18%-22%. If the 1,586ha high tech
park is being excluded from the calculation, the average occupancy rate
would be 91% while the average rent would be increased to USD103.5/
sqm/term. Rent of ready-built factory in Hanoi range from USD1.5 –
USD2.5/sqm/month.
SUPPLY
Hanoi has 11 IPs and more than 3,800ha of industrial area.
Under the socioeconomic development plan by 2020 with visions until
2030, Hanoi will be home of 33 industrial and hi tech parks.
DEMAND
According to the Ministry of Planning and Investment, the city attracted
USD303 million of new and supplementary FDI capital in the first quarter
of 2016. The majority of investments are flown into industries such as
intermediate goods, machinery, spare parts and accessories, electronics.
Infrastructures are being developed to connect Northern provinces with
Hanoi which will significantly reduce time and costs of transportation
and commercial traffic. These will positively contribute to improve the
occupancy rate and asking rate of IPs.
OUTLOOK
Prices and occupancy rate are expected to increase steadily in the next
coming quarters as the inflow of foreign investments is expected to
continue. In the master plan for Hanoi, the capital city will have 24 industrial
parks in 2020 and 33 industrial parks in 2030. The industrial area at that
time will also be increased to 6,100ha and 8,000ha respectively.
INDUSTRIAL SECTOR
Q1 2016 | MARKET INSIGHTS
ECONOMY OVERVIEW
The combination of slowdown in manufacturing and decrease of
profitability in agricultural sector in Q1-2016 due to weather difficulties
may have caused a slow growth rate of GDP. Vietnam’s GDP grew 5.46%
in Q1-2016, significantly lower than 6.12% in Q1-2015. The Consumer
Price Index (CPI) increased to 0.57% m-o-m in March which resulted in
a 1.25% increment in the first three months of the year.
Export achieved USD37.9 billion, up 4.1% y-o-y while import values
were USD37.1 billion, down 4.8% y-o-y. FDI of newly registered and
supplementary capital was USD4.02 billion which was less than the
amount of USD5.607 billion in Q4 2015 but rose 119% y-o-y. The
disbursement value reached USD3.5 billion, a growth of 14.8% y-o-y.
Credit growth achieved 1.54% which was higher than the growth rate
of 1.25% same period last year. As manufacturing sector showed a
slowdown, the increase in credit growth is contributed by real estate
sector.
If Vietnam aims to set the GDP growth target for this year to at least
match the 2015 growth rate, the nation will have to make great efforts in
the next coming quarters.
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices
in 67 countries. Colliers International delivers a full range of services to real estate users, owner and investors worldwide, including global
corporate solutions, brokerage, property and asset, management, hotel investment sales and consulting, valuation, consulting and appraisal
services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-
most recognized commercial real estate firm in the world.
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no
guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties
of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers
International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).
©2016 Colliers International Research
In general, infrastructure and associated services of
Hanoi’s IPs are not as satisfactorily as those of HCMC’s IPs.
Therefore, IPs’ developers should concentrate on building
more associated infrastructures and utilities as banks,
shopping malls, schools, hospitals, in order to improve the
quality of life of IP’s employees.
Figure 2: Supply by District
Source: Colliers International Research
Figure 1: Net Absorption
Source: Colliers International Research
HA VO
Research Manager
ha.vo@colliers.com
Source: Colliers International Research
Table 1: Future Supply
HANOI
-15
-10
-5
0
5
10
15
20
25
30
35
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015 2016
ha
Industrial Park Name District GFA (ha)
Quang Minh II Industrial park Me Linh 266
Phuc Tho Industrial park Phuc Tho 74
Phu Xuyen Industrial park Phu Xuyen 488
Thanh My - Xuan Son Industrial park Son Tay 108
Soc Son Industrial park Soc Son 340
Soc Son II Industrial park Soc Son 204
Soc Son III Industrial park Soc Son 180
Soc Son IV Industrial park Soc Son 216
Thanh Oai II Industrial park Thanh Oai 480
Habeco Industrial park Thuong Tin 300
Dong Anh
35%
Thanh That
23%
Chuong My
12%
Me Linh
12%
Tu Liem
9%
Others
9%