The stock market has fallen sharply due to the COVID-19 pandemic, however, economic experts see this as an opportunity for long-term investors. The real estate market is also facing difficulties with reduced demand due to the pandemic and lack of new project launches. In the first quarter of 2020, Ho Chi Minh City only saw the introduction of 5,497 housing units from 11 new real estate projects, down significantly from previous quarters. Both the stock and real estate markets are expected to recover once the pandemic is controlled and economic support policies take effect.

1. MARKET SNAPSHOT
March 2020
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2. However, looking in a positive direction, many
economic experts have said that the stock market
now opens up many opportunities for long-term
investors. Associate Dr. Pham Van Hung- Chief of
investment faculty, National Economics University,
with long-term investors, the stock market is now a
good opportunity when the stock price has fallen
sharply, around the real value. Therefore, the investor
may consider disbursement of small proportion (20-
30% of the long-term investment portfolio value)
when the stock market goes to nearly 700 points.
According to Associate Dr. Pham Van Hung, investors
should prioritize investing in businesses in less-
affected sectors of the Covid-19 pandemic, such as the
technology industry, essential consumption, fertilizer,
the export sectors that Vietnam is self-owned, and
is expected to recover sharply when the Covid-19
pandemic pass through over such as the fisheries
industry.
The same opinion of Associate Dr. Hung, Mr. Phan Tan
Nhat (head of analysis of Saigon Securities Company),
a Hanoi branch of Ho Chi Minh City said that investors
should not be too scared, selling stock unexpectedly,
but need to choose the investment opportunities
below the value for long-term vision for a few years
when a lot of investment opportunities below the
value has and are appearing.
Based on the history of the epidemic and the response
of the securities market, Mr. Huynh Minh Tuan (director
of Mirae Asset Securities) joint stock company said
that, usually after each pandemic, the market is
always recovering higher thanks to the increase in
production, the support policies of the government to
restore the economy, besides the suitable Innovative
services and products will be launched. Mr. Tuan
believes: “After the raining, the sky will shine”.
TMS Consultancy Company forecasts the stock
market in the next time that if the pandemic is well
controlled, in the short term, the global stock market
and the Vietnam securities market will also recover
again.
As the effects of Covid-19 pandemic for the stock
market, recently, the Ministry of Finance has issued
Circular No. 14/2020/TT-BTC dated 03/18/2020
amendment of Circular No. 127/2018/TT-BTC dated
12/27/2018 of the Minister of Finance to specify the
price of services in the securities sector applied at the
stock exchange and the Vietnam Securities Depository
(VSD), In which there is the price decreasing provisions
of 15 types of services in the field of securities and are
applied from March 19 to 08/31/2020.
To create the effect for the market, the circular
14/2020/TT-BTC also regulated the organizations
that are providing services in the field of securities
(securities company, Commercial Bank) on the basis of
discounts on services at the stock Exchange and VSD,
immediately implementing the respective service
discounts in their units to support the organizations
and individuals using the service that is influenced by
the Covid-19 pandemic, in accordance with the actual
provision of services, the provisions of the Law on
prices and the relevant legislation.
The price adjustment of security services is one of the
timely solutions to remove difficulties and support
the market. Together with the decisive efforts of
the government, the synergy, the solidarity of the
people in the prevention of Covid-19 pandemic and
the internal forces of Vietnam, experts expect the
economy in general and the stock market in particular
will stabilize the positive growth back.
(Source: Finance Magazine)
Market Snapshot | Mar 2020Market Snapshot | Mar 2020
2 3
1. VIETNAM ECONOMIC OVERVIEW
GDP
Gross domestic product (GDP) Quarter I of 2020
estimate a 3.82% increase over the same period
last year, which is the lowest increase of the first
quarter of the year in the period 2011-2020. The
Covid-19 spreading in Vietnam is also a negative
affecting all socioeconomic sectors, the entire
political system, government and Prime Minister
put priority on the prevention and pandemic
stopping, and sacrificed economic benefits
to ensure the life and health of the people, the
economy of our country continues to maintain,
not falling into negative growth is the victory of
the levels, sectors, the business community and
the people in the fight to repel the epidemic,
while still maintaining the business production
activities.
In the first few months of 2020, the Covid-19
pandemic severely affected the commercial,
services and import-export operations. The
service sector in the first quarter 2020 reaches
the lowest increase compared to the same period
2011-2020. In the service sector, contributions
of some market service sectors have a large
proportion to the increase in the total value of the
HOW IS THE STOCK MARKET PERFORM IN THE
COVID 19 PANDEMIC?
The Covid-19 is having certain impacts on the financial
markets, especially the constant reduction in the stock
market. However, many economic experts say that this
moment will be an opportunity for investors to have the
visionary.
The increasingly unpredictable of the Covid-19 epidemic,
international securities maintained negative trading
sessions. Vietnam’s stock market is no exception.
The last trading week, the VN-Index continues to go down
more than 52 points, respectively decreasing by 6.8% and
falling to the lowest in more than 3 years when penetrated
the threshold of 710 points. In the early morning session on
March 23, 2020, a semi-massive pressure selling stock led
hundreds of codes’ s point decreasing, including nearly 100
discount codes, causing the VN-Index to evaporate more
than 40 points and breached of the 670 points. The stock
market is predicted to suffer certain impacts if the pandemic
remains complicated.
Source: GSO Vietnam
VIETNAM GDP GROWTH RATE (%)
first quarter. The wholesale and retail rose by 5.69% over
the same period of the previous year, which is the largest
contributor to the total value increase in the overall economy
(0.7 percentage points); Financial, banking and insurance
operations, increase 7.19%, contributed 0.33 percentage
points; Transportation sector, warehousing reduced by
0.9%, reducing 0.03 percentage points; The hotel and dining
service sector reduced by 11.04%, reducing 0.53 percentage
points.
6.68%
6.21%
6.81%
7.08% 7.02%
5.96%

3. 54
The 2019 real estate market
was a difficult year. The biggest
congestion of the real estate
market in the year 2019 is the legal
concerns. This is also the cause of
hundreds of projects that cannot
be deployed, causing the scarce
supply.
The Cocobay’s event in Da Nang last
year was a shocking for the resort
property market, especially the
Condotel segment. Many investors
have been losing confidence in
Condotel while this is the leading
product in the quantity in famous
resort which are located mostly at
Nha Trang, Da Nang city and Phu
Quoc island.
Another cause that impact of the
credit-tightening pathway to real
estate. Specifically, the maximum
percentage of short-term capital
used for medium and long-term
lenders decreased from 40% to
30%. The government bank also
increased the risk coefficient when
trading in real estate from 150% to
200%.
At the time of the real estate
market is very difficult, at the
beginning of the year 2020, the
Covid-19 pandemic unexpectedly
“come” to add the pressure to the
domestic economy and undermine
the prospects for the real estate
market. The Covid-19 pandemic
has a significant impact on entire
segments such as retail, office, and
industrial real estate. In which, the
resort property has the heaviest
impact than other segments.
The real estate market in 2020
was also facing with the hesitation
psychology from customers. By the
last time, the market has witnessed
many unreputable companies,
many projects “On Paper only”
raging, causing customers’ loss
confidence. This is considered a
huge challenge for the real estate
market this year.
The real estate specialists identified,
the real estate market in general
and in HCMC particular faced many
difficulties this year. While the
supply of the project has not yet
been declared, the customer has
turned their back from the Covid-19
pandemic. The peculiarity of the
brokerage is to meet in person,
the sales organization focused on
crowds, but in the current situation,
the activities are limited. Therefore,
many of the real estate trading floor
across the country must suspend
the operations or operate slowly
through this tough time.
According to new figures published
by the Department of Business
Administration (Ministry of
PlanningandInvestment),uptothe
end of the year 2019, there are 598
enterprises registering to suspend
operations and 686 companies
that closed. The number of 686
real estate enterprises that are said
above are mainly companies that
provide brokerage services.
Not only the small real estate
trading floor companies closed, the
Covid-19 pandemic is also breaking
many of the intended of big
investors. Most major real estate
businesses in Ho Chi Minh city
have planned to launch products
this year that is also in the status of
“stay put.” Some big companies try
to survive to this difficult time by
selling the next phase of old project
or buy and re-selling the properties.
(Source: CafeF)
2. LOCAL REAL ESTATES MARKET NEWS
According to the recent report of
Vietnam Real Estate Brokerage
association, in the first 3 months
of the year, HCMC has only 5,497
products from 11 projects that were
launched in the market.
The total number of apartments
launching was 4,664 units with
more than 37% of apartment size
of 50-70sqm. The product cost
less than 35 million VND per sqm
accounts for nearly 43%, followed
by the product cost more than
70 million VND per sqm with
36.7%. Binh Chanh District is the
largest apartment supply with
approximately 43% of the market.
Quarter I 2020, HCM City Market
recorded only 11 new projects to be
opened for sale, down 8 projects
compared to the quarter IV/2019.
For the shop house segment, there
are only 133 shop houses in District
4, 10 and Nha Be District. These
products are launched at the prices
of over 70 million VND per sqm,
which the size is mostly larger than
120sqm. Similarly, the Villa market
has recorded 227 products in Nha
Be District.
The supply of townhouses is mostly
gathered in Nha Be and Thu Duc
District with 138 units, costing
more than 70 million VND per
sqm, while the land segment with
335 land lots are located in Nha Be,
Binh Chanh and Cu Chi province.
According to the statistics of the
Vietnam Real Estate Brokerage
association, the supply of Quarter I
2020 is only about 1/3 compared to
quarter IV 2019.
Due to the legal issues from 2019,
the cause of this decline is partly
due to the impact of Covid-19
pandemic, which makes the plans
to open and develop projects
of many investors to cancel or
postpone indefinitely.
Beside luxury properties, investors
are also providing social housing on
a large scale: 352 units at the Nam
Phan project in Phu Huu Ward,
District 9, are available for sale. This
is unique because normally social
housing units rarely exceed 100 in
any sale, according to the investors.
Beside luxury properties, investors
are also providing social housing
on a large scale: 352 units at the
Nam Phan project in Phu Huu
Ward, District 9, are available for
sale.
This is unique because normally
social housing units rarely exceed
100 in any sale, according to the
investors.
Another project is in Thu
Thiem Ward, which is named
Metropole Thu Thiem is a mixed-
use development in the core
area (zone 1) of the Thu Thiem
Urban area consisting of luxury
residences with 465 apartment
units, premium shopping and F &
B outlet and international standard
office space.
Source: TMS Consultancy, Research &
Vietnam Real Estate Brokerage Association
Real estate market 2020: Tougher because of Covid-19 pandemicNew supply in Ho Chi Minh City 2020
Market Snapshot | Mar 2020Market Snapshot | Mar 2020

4. 7
Hotel businesses are suffering the most in the Covid-19
pandemic
Ontherealestatetradingfloor,besideofcondominiums
and land listing, there are many hotels that were listed
throughout the provinces, with prices ranging from a
few billion and up to hundred billion VND.
According to the hotel owner, some small hotels are
on sale or retain some staffs to watch at this difficult
time.
Vietnam is one of the top 10 destinations of Chinese
tourists, so the impact of the Covid-19 pandemic
and subsequent travel bans is enormous. Many of
the hotels have issued strict regulations for their
employees and customers to follow. An example is all
public areas of the guest such as a lifting board, coffee
table and reception that are cleaned and fumigant
sprays after 30 minutes. All the staffs must wear the
mask for the prevention and many of the luxury hotels
have used the wine sterilized gel and disinfectant
available in the hotel. In addition, they proceed to
check the temperature of all guests in the hotel and
the temperature of all employees is recorded twice
a day. The safety of guests and staffs are the highest
priority for them.
As of the present time, HCM city has more than 4,500
accommodation facilities and more than 90% of them
are 1-2-Star or Unrated. The total revenue in hotel
segment has decreased by 70% over the same period
last year, including room sales, restaurants and in-
house services.
Coastal destinations such as Nha Trang and Cam
Ranh cities are severely affected by covid-19 pandemic.
Chinese tourists are the main visitor and account for
more than 70% of the international visitors. Major cities
such as Hanoi and Ho Chi Minh City HCM has also been
negatively affected by the decline of the Conference
travel, with delays or cancellations of meetings,
conferences and foreign trips.
A 166ha new high-tech park just has been approved in
Ho Chi Minh City
Decision 430 of the Prime Minister adjusted the local
master plan of the Ho Chi Minh City up to 2025 has
changed the purpose of land use in Long Phuoc Ward,
District 9. This is the basis for HCM city established the
high-tech park 2.
Mr. Nguyen Thanh Nha, director of HCMC Architectural
Planning Department HCM said that the decision 430
only locally adjusted a small detail in the decision of 24
years 2010 of the Prime Minister to browse the general
planning of HCM City.
This is to solve some small entanglement in the
process of implementing the general planning of the
city. This decision does not alter the general planning
of the year 2010.
Specifically, the decision 430 allows HCM city
changed the orientation of planning, land for a new
development resort in Long Phuoc Ward, in District 9
to complement the function of high-tech (Science and
Technology Park) wider than 166ha. This will be the
“High-Tech Park 2” of HCM City.
HIGH-TECH PARK IN HO CHI MINH CITY
HighTechPark2istheareaofresearch,experimentation,
transfer and application of science-technology, links
and complementary functions to existing high-tech
parks. This is also the basis for studying the highly
interactive creative urban area in the eastern part of Ho
Chi Minh city which included District 2, District 9 and
Thu Duc District.
In the local area, “High Tech Park 2” of HCM city has an
eastern side bordering Ba Nghiem canal, Van canal; On
the west by the Tac river; on the South by the Tac river,
Red Creek and Ba Nghiem canal, and the north by the
Tac river.
The government also enables to adjust the route
direction of the internal road in this zone and add the
bridge over the Tac river to connect with the existing
high-tech park and Vanh Dai 3 Road.
The decision 430 of government will be the legal basis
for the HCM city people’s Committee that approved
the zoning project for the subdivision of 1/2,000 science
and technology parks at Long Phuoc Ward, District 9.
Then, the authorities will proceed with the steps to
implement planning and land recovery compensation
to establish the “High Tech Zone 2”
It is expected that after completion, along with the
existing high-tech park, this second high-tech park
will become one of the three important zones in the
innovative urban structure of the east of the city.
(Source: Tuoitreonline)
6
HOTEL RETAIL
RETAIL ASKING RENT & VACANCY RATE HCMC
Source: TMS Consultancy, Research
Based on the above chart, our TMS Consultancy
company forecasts average asking rent is stable and
vacancy rate is increasing 7% - 14% for grade A in the
period of epidemic. Asking rent is decreasing about 5%
- 10% and vacancy rate will increase about 12% - 15% for
grade B.
OFFICE
OFFICE ASKING RENT & VACANCY RATE HCMC
Source: TMS Consultancy, Research
Total Supply NLA
(sqm)
445,313
17 projects
925,501
67 projects
Asking rent
US$/sqm/month
44.6
US$
-3.6% 25.2
US$
7.4%
Vacancy rate
10.8
%
8.1ppts 5.6
%
2.1ppts
Grade A Grade B
y-o-y
y-o-y
* Asking rent is quoted on Net Leasabel Area, excluding VAT and service charge
-1.2% q-o-q
1.7ppts q-o-q 0.6ppts
y-o-y
q-o-q
y-o-y
q-o-q
1.8%
Market Snapshot | Mar 2020Market Snapshot | Mar 2020
Rental rate is decreasing but in while occupancy rate
is stable
Q1 2017 Q1 2018 Q1 2019 Q1 2020
3,212,480
4,205,401
4,500,114
3,671,259
Source: TMS Consultancy, Research
NUMBER OF FOREIGN VISITORS
OFFICE Q1 2020 HCMC
COVID IMPACT

5. 8
For more information:
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
consultancy
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
In the past time, the concerns of legal regulations in the process
of implementing the project, in particular the overlap between
land law and the bidding law in the land-transfer procedures,
land leasing for investors’ winning bidding is considered as
large congestion is asked to disassembly by many real estate
businesses.
This is the cause of many provincials “dare not” to hand over the
new projects and land for investors who have won the bidding,
which lead many projects were stalled. This has seriously
impacted the economic development of the localities as well as
the investment opportunities of the businesses.
The Decree 25/2020/ND-CP is an extensive bidding to choose
investors to implement the investment projects in the Public-
Private Partner (PPP) model. Decree No. 25 was issued on
February 28, 2020 which is the power to remove difficulties for
many developers.
There are 92 articles in the Decree No. 25 and with the provisions
of article 60 which has clearly defined the delivery of land to
investors who win the bidding will be deployed immediately after
the completion of compensation, supporting the resettlement of
land implementation project.
(Source: luatvietnam.vn)
3. LEGAL UPDATES
Decree No. 25/2020/ND-CP
Market Snapshot | Mar 2020