Market report q2 2021

MARKET REPORT
Q2 2021
Our Professionals Your Success

Part 1: Economic
The COVID-19 pandemic, which appeared from the
start of 2020, has gone on for 18 months now and
has seriously influenced manufacture and business
operation. However, GDP in the initial half-year of the
year expanded by 5.64%, making Vietnam one of the
nations with a moderate GDP development rate.
Duringthefirstsixmonthsof2021,theGDPgrowthrate
was elevated by 5.64%, higher than the development
pace of 1.82% in the same period last year yet lower
than the growth rate of 7.05% and 6.77% in the same
period 2018 and 2019. The Covid-19 pandemic that
broke out in some regions of the nation since April
with confounded and erratic advancements has
presented numerous difficulties for our country in
understanding the double target of anticipation and
control illness and monetary turn of events.
TMS Research Team also expects that 2021’s GDP
growth rate would be about 5.6% in the worst case
and 6.5% in the best chance, just like TMS Research
Team has mentioned in our previous Market Research
in Q1/2021. Currently, the vaccine is widely providing
worldwide; therefore, the world economy is expected
to come back in late 2021 or early 2022.
Moreover, in the first half-year of 2021, the entire nation
had almost 67.1 thousand recently new companies
with newly registered capital of 942.6 trillion VND
and a complete number of enrolled representatives
of 484.3 thousand workers, up 8.1% in the number of
ventures, an increase of 34.3% in number the
registered capital and a decline of 4.5% in the
number of projects compared to the same
period last year.
For the year ahead, Vietnam remains a strong
candidate for investment from ASEAN and
beyond. Given its investor-friendly policies,
relative economic and political stability, cost
efficiency, and consumer demand prospects,
Vietnam is likely to continue gaining from
supply chains restructuring in Asia in addition
to attracting a new range of investors in
terms of geography and sectors. TMS Consultancy
Team expects in 2021, FDI will be slightly higher than
the previous year. Although the COVID situation is not
entirely under control, with the shifting trend from
China to Vietnam and with the effectiveness of EFTVA,
new investors from Europe and other countries are
expected to come to Vietnam in late 2021.
In the first 6 months of 2021, due to the
COVID situation worldwide and Vietnam
itself, Vietnam has a trade deficit of 4.2
billion USD. The surplus of goods and
products, which are meant to be export, has
created “rescues mission” trends in Vietnam.
In May, when the vaccination rate in the US
and other countries is stable, the export rate
in Vietnam had increased. Still, it was soon
to be limited because of the rapidly rising
COVID cases in Vietnam.
At the beginning of July, over 90% of
enterprises have to accept stop production,
affecting the global supply gap for brands
trustedtoorderproductioninVietnam.Atthe
same time, it hurt the reputation of brands
and importers in the Vietnamese market to
the international partner. However, with the
effort of providing vaccines to the workers in
the manufacture and industrial workers,
which is being prioritized, production is
expected to come back in Q3/2021.
In HCMC, the Government has sent
out the directive that companies and
factories in industrial parks need to
strictly comply with regulations on the
prevention of the COVID-19 epidemic,
and at the same time, ensure the
maintenance of production. Also, the
companies have to set up places for the
workers to stay on the campus, which is
close to where they work, so they would
not be affected by the pandemic. This
has ensured import-export activities in
Ho Chi Minh as well as in Vietnam.
Source: TMS Consultancy, Research
Vietnam Economic | Q2 2021
Vietnam FDI over Quaters 2016 - 2021
Highlighted Partner Countries
Vietnam Inflation Rate by 2nd Quarter (2011 - 2021)
Trade Balance by 2nd Quater (2010 - 2021)
Top Countries Invest to Vietnam with High
Registered Value
Inflation in June 2021 expanded by 0.07% over the earlier month
and by 1.14% over a similar period last year. Hence, the average
CPI in a half year just grown by +1.47% over the same period, the
lowest rate in 5 years and still exceptionally more inadequate
than the Government’s objective of 4%. Driving the increment
were gas, food, and development materials costs; however, food
costs and power costs (on account of EVN’s help toward the
start of the year) help curb inflation.
Market Report | Q2 2021
2 3

4 5
Apartment Supply HCMC | Q2 2021
Apartment Supply Hanoi | Q2 2021
Part 2: Real Estate
The Covid-19 epidemic had a negative impact on the economy
and a significant impact on the real estate market. All real estate
segments are affected substantially, such as the lack of new
apartments and offices. The lower absorption rate in hotels
and condotel, especially many projects, is delayed because
of outbreaking Covid – 19. However, the real estate market’s
expectation will have positive changes in Q2/2021 because:
◊ Vaccine is now available, and countries inject it to prevent
the epidemic from returning to international trade. This will
help the economy recover gradually, which is reflected in
GDP in Q2/2021, which is higher than that at the same time
last year.
◊ Vietnam is one of the countries that control the Covid-19
epidemic well, so it has attracted large investors and leading
experts to this country.
Hanoi City
In Q2/2021, the apartment selling price in Hanoi averaged
1,490 USD/m2, increased to 2% Q-o-Q and 6.5% Y-o-Y. An
annual growth rate was recorded at 8 – 9%/year. Although
this growth rate is higher than previous years, it’s still lower
than HCMC, with 10 -15%/year. The absorption rate was 24%,
increased 4% Q-o-Q and 5% Y-o-Y.
According to TMS’s Research & Statistics, price increase had
also occurred in Dong Da, Thanh Xuan, Tu Liem, Hoai Duc,
Thanh Tri & Hoang Mai districts about 5 – 7%, especially Cau
Giay went up by 14%, and Long Bien went up by 12%.
On the other hand, the level of new supply is expected to be
stable at around 22,000 – 24,000 units in 2021, higher than
HCMC about 25 – 30%, but still lower than before Covid – 19
pandemic.
APARTMENT
In the first half of 2021, the spread of Covid – 19 has still affected
the market, but the new – launched supply in HCMC and Ha Noi
still went up specifically by 10% Y-o-Y in the Hanoi area and 25%
Y-o-Y in HCMC. The asking price and the market’s absorption rate
also increased gradually in Q2/2021; the absorption rate was about
85% in HCMC and 80% in Hanoi. However, there was a lack of
supply because a few projects were launched, and previous ones
were paused to adjust the price.
The supply chart in HCMC and Hanoi market shows that the supply
in Q2/2020 was relatively low compared to the same quarter in
other years due to the Covid-19 epidemic. Previously, the supply
increased marginally, with nearly 5% Q-o-Q and 15% Y-o-Y. Then
there was a lack of supply because of the 4th outbreak of Covid-19
starting in early May.
Ho Chi Minh City
The selling price in HCMC in Q2/2021 was on average of 2,300
USD/m2, increased about 15% -16% Y-o-Y. The luxury and mid-
end segments’ prices were the highest, with 9.2% and 8.4%
Y-o-Y. The high–end and low–end had a modest growth rate
this quarter, about 0.4% and 1.6% Y-o-Y.
In addition, the selling price in the Eastern area was always
higher than that in other regions, especially the luxury
segment, due to more favorable factors.
In the future, the level of new supply is expected to remain
stable at 17,000 – 18,000 units in 2021. The prices of apartments
in the near future would increase by 2-5% Y-o-Y in almost all
segments except the luxury segment. It’s estimated that
those luxury segments would increase by 5-6%, according
to a new project in District 1. Moreover, the prices of Eastern
area apartments are expected to increase about 7% - 15%, and
other areas would fluctuate about 5% -10% in 2022.
According to TMS’s Research, apartment prices were higher
than other areas in the eastern area, about 10 – 15%. Because
of the increasing land prices, administrative agencies will
move here as planned. The infrastructure has improved and
enhanced to create better conditions for people living in the
area.
Apartment Average Price by Area HCMC
Q2 2021
Apartment - Average Asking Price
CBD & CBD Fringe | Q2 2021
HCMC Apartment New Supply | Q2 2021
Apartment Average Price Hanoi | Q2 2021
Apartment New Supply Hanoi | Q2 2021

OFFICE
In Q2/2021, the office market in HCMC and Hanoi continued to
show signs of recovery. However, the Vietnam economy is still
affected by the Covid – 19 pandemic. The absorption of HCMC and
Hanoi reached 60,000 sqm and 34,000 sqm.
According to our team TMS’s Research & Statistics, we have done
a study with a model of the impact on office rental prices. And
the variables are the office rental price, depending on the number
of businesses (newly registered businesses, dissolved businesses,
and returned businesses). However, the results of this study do not
strongly reflect the change in office rental prices. So rental cost
depends on the factors that can cause the shift in the office rental
price, mainly factors such as location, land price, etc . . . Particularly,
when land price increases 1%, office rental price increases 10.7%.
No Project Name Address Grade Structure
NLA
(sqm)
Expected
Price (USD/
m2/month)
1 D’. Saint Raffles
No. 43-47 Nguyen Thi Minh
Khai, Ben Nghe ward, district 1
A
19 storeys, 6
basements
30,000 40
2 Empire 88 tower
Empire city urban area, Thu
Thiem ward, Thu Duc city
B 10,500 35
3 Cobi Tower 2
B street, Tan Phu ward, dis-trict
7
B
17 storeys, 2
basements
17,527 23
4 V Plaza Tower
Nguyen Van Linh street, Tan
Phong ward, dis-trict 7
B
4 block, 27
storeys
66,000 25
5 E town 6
No. 364 Cong Hoa, ward 13, Tan
Binh district
B
16 storeys, 7
basements
35,000 20
No Project Name Address Grade Structure
NLA
(sqm)
Expected
Price (USD/
m2/month)
1 Capital Place 29 Lieu Giai, Ba Dinh District A
2 towers, 37
storeys, 3
basements
128,000 31 - 35
2 Leadvisors Tower
36 Pham Van Dong, Bac Tu
Liem District
A
25 storeys, 3
basements
20,000 18 - 19,8
3
Bamboo Airways
Tower
265 Cau Giay, Dich Vong Ward,
Cau Giay Dis-trict
A
41 storeys, 4
basements
10,629 19 - 23
4 Thai Building
22 Duong Dinh Nghe, Yen Hoa
Ward, Cau Giay District
A
21 storeys, 3
basements
24,750 20 - 21
5
IDMC Duy Tan
Building
21 Duy Tan, My Dinh Ward, Nam
Tu Liem Dis-trict
B
30 storeys, 3
basements
4,450 13 - 14
6 BRG Tower
198 Tran Quang Khai, Ly Thai To
Ward, Ho-an Kiem District
A
21
basements,
4 storeys
15,000 38
7 Century Tower
458 Minh Khai, Vinh Phu Ward,
Hai Ba Trung District
A
25
basement, 2
storeys
63,884 15 - 17
8 Techno Park Tower Da Ton Street, Gia Lam District A
45
basements,
3 storeys
117,000 15 - 17
Hanoi
In Q2/2021, the office market in Hanoi had no new projects. The total
supply remained in both A and B grades, account for 35% of grade A
projects. Specifically, the vacancy rate of both A and B grades was still
dropped, grade A decreased by 18.9%, and 11.5% for grade B, but the
average rental price remained stable Q-o-Q. For grade A, the average
rental price reached 27 USD/m2, up by 0.1% Q-o-Q and by 3% Y-o-Y.
Meanwhile, grade B reached 14 USD/m2, the same as last quarter.
According to our team TMS’s Research, the Hanoi office market is
expected to welcome many projects in the next few years, with more
than 150,000 sqm. The average rental prices are expected to remain
stable at the end of 2021. The office rental price is predicted to go up
by 2% in grade A and 5% for grade B in 2021 and 2022 if Vietnam can
control the pandemic. The occupied rate is about 85% for grade A and
90% for grade B.
Ho Chi Minh City
In general, the rental prices of grades A, B, and C were stable with no
change compared with last quarter but decreased by 6.5% Y-o-Y for
grade A and 1% for grade B. The vacancy rate of both grades A and
B decreased gradually, by 12.5% for grade A and by 9% for grade B.
Recently, the HCMC office market had one new grade B office building,
which is AP Tower Binh Thanh. This building adds 1,048 sqm NLA to the
total supply.
In the future, the HCMC office market is expected to welcome some
grade A and B buildings, such as Etown 6, V Plaza Tower, with more
than 50,000 sqm of NLA. The office rental price is predicted to go up
by 5% in grade A and 7% in grade B in 2021 and 2022 if Vietnam can
control the pandemic. Besides, the rental price would go up about 3 –
7% depends on the region. The absorption is about 90% in grade A and
92% in grade B.
HCMC Office Market
Hanoi Office Market
The new supply list of office in HCMC in 2021 and 2022 is as follow as:
The new supply list of office in HanoiC in 2021 and 2022 is as follow as:
6 7

HOTEL
In general, hotel rent prices increased slightly, by 1-2% Q-o-Q.
However, the occupancy rate was 50 – 55%, decreased by 2
– 3% Q-o-Q, because of outbreaking 4th Covid – 19 in early
May. Moreover, this time was the national holiday. On April
30 – May 1, many hotel occupancy rates were reduced by
4-5% Q-o-Q. Part of the reason was that most hotels were
used as temporary medical isolation facilities.
In the future, the outlook for the hotel industry in Vietnam
is expected to recover, with the supply remaining the same
as the first 6 months of 2021. In 2022, the rent price would
go up by 10% compared to Q2/2021. Many countries and
Vietnam also would produce their own vaccines to stabilize
the economic situation, significantly to recover the tourism
industry.
CONDOTEL
In Q2/2021, the condotel market recorded about 950
units for sale from 3 projects, go up by 25% Q-o-Q
and 4 times Y-o-Y. The absorption was 65%, increased
by 30% Q-o-Q and 4.5 times Y-o-Y. In general, the
supply and the absorption went up compared to the
last quarter, which shows a sign that the condotel
market could recover. However, the 4th outbreak of
Covid – 19 had a negative impact on the market. On
the other hand, Binh Thuan, Phu Quoc, and Vung
Tau continued to be the leading areas in the supply
and the absorption of the whole market. Da Nang &
Nha Trang have a new supply shortage.
The new supply in Da Nang, Quang Nam, and Phu
Quoc has expected to be 1,500 – 1,800 units in the
future. The market demand can be recovered to
a certain extent by the end of the year when the
epidemic situation is controlled but still relatively
low.
INDUSTRIAL
The average land leasing price of Hanoi and Ho Chi
Minh city was higher than other cities and provinces
in Vietnam – Q2/2021. Bac Ninh and Hai Phong city
were potential cities in the northern region next time.
The average leasing price of two cities/provinces was
increasing by over 5% q-o-q. The infrastructure of
the North region was developing quickly, and the
location was a pretty advantage because it is near
China and would benefit from factories relocated.
The average occupied rate of the Southern region
was higher than the Northern region because the
new land was still rare.
The average rental price of Ho Chi Minh City and Binh
Duong Province was higher than other cities and
provinces in Vietnam – Q2/2021. The average rental
price was range from 3 USD/sqm/month to approx.
4.5 USD/sqm/month This rental price would increase
by 3% - 5% next time.
8 9
Hotel Average Rent Price | Q2 2021
Hotel Room Total Amount | Q2 2021
Hotel Average Occupany Rate | Q2 2021
Condotel | Q2 2021
IPS Performance in Vietnam Cities
Q1 2021
Industrial Rental Price
USD/sqm/month

Part 3: Legal
Some amendments, supplements, and new points take effect
from 2021 as follows:
1. Extend agricultural land use tax exemption period.
The provision of Resolution No. 55/2010/QH12 dated November
24, 2010, of the National Assembly on exemption and reduction of
agricultural land use tax have been amended and supplemented
with several articles under Resolution No. 28/2016/QH14 dated
November 11 , 2016, of the National Assembly to the end of
December 31, 2025.
2. Amend real estate business conditions.
• Previously, Clause 1, Article 10 of the Law on Real Estate
Business2014stipulatesthat“Organizationsandindividuals
dealing in real estate must establish an enterprise or a
cooperative (hereinafter referred to as an enterprise) and
have the legal capital to invest in real estate.” must not be
lower than 20 billion VND, except for the case specified in
Clause 2 of this Article.
• Currently, the Investment Law 2020 (effective from January
1, 2021) is amended to “ Organizations and individuals
doing real estate business must establish enterprises or
cooperatives (hereinafter collectively referred to as is an
enterprise), except for the case specified in Clause 2 of this
Article.”
3.Supplementtheformoflandusefortheimplementation
of commercial housing construction investment projects
Forms of land use for the implementation of commercial housing
construction investment projects will include:
Having the legal right to use residential land and other types
of land permitted by a competent state agency to change the
land use purpose to residential land.
• Allocated land by the State to build houses for lease, lease-
purchase, or for sale.
• Land leased by the State to build houses for lease.
• Receive the transfer of residential land use rights in
accordance with the land law to build residential/
commercial.
4. Amend regulations related to the decision on
investment policy on the construction of housing
projects.
Remove the content “For projects that are not subject to
the decision on investment policies according to the
Investment Law, the approval of investment policies must
comply with the Government’s regulations” in Clause 2,
Article 170 of the Housing Law 2014.
5. The Government has issued many new legal documents to solve the
inadequacies, speed up the order and procedures for implementing
construction and real estate investment projects such as:
Decrees related to guiding the implementation of the revised Construction
Law such as Decree No. 06/2021/ND-CP dated January 26, 2021, of
the Government, details several contents on quality management,
construction, and construction maintenance; Decree No. 09/2021/ND-
CP dated February 9, 2021, of the Government on construction material
management; Decree No. 10/2021/ND-CP dated February 9, 2021, of the
Government on cost management of construction investment; Decree
No. 15/2021/ND-CP dated March 3, 2021, of the Government on detailing
several contents on construction investment project management.
Decree No. 30/2021/ND-CP dated March 26, 2021, of the Government
amends and supplements several articles of the Government’s Decree
No. 99/2015/ND-CP dated October 20, 2015, which details and guides the
implementation of several articles of the Law of Housing. The Decree
which issues in accordance with the Law on Investment and the Law on
Construction as amended in 2020. In which it amends, supplements, and
regulates more specific to remove difficulties and problems in approving
the investment policy of housing projects; formulate and adjust housing
development programs and plans; select investors as investors in
commercial housing projects, new urban area projects; manage the
operation of apartment buildings…;
Decree No. 31/2021/ND-CP dated March 26, 2021, of the Government details
and guides the implementation of some articles of the Investment Law.
In which there are detailed regulations on the order and procedures
for approval and adjustment of investment policies, project investment
certificates; transfer part or all of a housing project, a new urban area
project, a real estate business project…;
Decree No. 49/2021/ND-CP dated April 1, 2021, of the Government amends
and supplements a number of the Government’s Decree No. 100/2015/
ND-CP dated October 20, 2015, the development and social housing
management. In which it amends, supplements, and regulates more
specific to remove difficulties, problems and simplify administrative
procedures in approving investment policies for social housing projects;
selling price, rental price, lease of purchasing social housing; dossiers and
approval of people who are eligible to buy, rent and hire-purchase social
houses…;
Decree No. 50/2021/ND-CP dated April 1, 2021, of the Government amends
and supplements a number of the Government’s Decree No. 37/2015/ND-
CP dated April 22, 2015, regulating detail in the construction contract.
10 11

For more information:
Suite 6.04, Nam Viet Building 09 Phan Ke
Binh, Da Kao Ward, District 1, HCMC
+84 906 787 134
info@tms-investment.com
www.tmsconsultancy.com.vn
TMS Consultancy
Our Services:
Valuation Advisory
Investment Advisory
M&A Advisory
Taxation Advisory
Market Research
HIEU DO
Head of Valuation & Investment
+84 907 492 025
hieu.do@tms-investment.com
LE QUOC HUNG
General Director
+84 906 787 134
hung.le@tms-investment.com
GENNIE PHAM
Market Research Director
+84 976 917 368
gennie.pham@tms-investment.com

Market report q2 2021

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