MARKET REPORT

consultancy
Q4 2023

Our Professionals Your Success

Content
Executive Summary 1
Part 1: Economic 3
GDP 3
CPI 5
Exchange Rate 5
Interest Rate 6
Gold Price Index 6
FDI 7
Trade Balance 8
Part 2: Real Estate 12
Apartment 12
Ho Chi Minh City 13
Hanoi 14
Da Nang 17
Office 16
Ho Chi Minh City 17
Hanoi 18
Da Nang 20
Retail 21
Ho Chi Minh City 21
Hanoi 24
Hotel 26
Part 3: Legal 27
 Market Report | Q4 2023 Market Report | Q4 2023

Executive
Summary

VIETNAM’S ECONOMIC TIMELINE

Source: MPI Vietnam & TMS Consultancy, Research

GDP CPI FDI

Vietnam’s GDP growth rate was 6.72% YoY in Average CPI in Q4/2023 increased by 3.54% YoY. According to the Ministry of Planning and
Q4/2023 and 5.05% YoY in 2023, respectively. For the whole year 2023, CPI increased by 3.25% Investment, Vietnam had 934 new projects
Although it did not reach the set target, but this YoY, reaching the target set by the National (+37.15% YoY) with newly-registered capital was
is considered a bright spot compared to many Assembly. Core inflation increases by 4.16% about 11.06 billion USD (+107.79% YoY) in Q4/2023.
countries in the world. TMS Consultancy further compared to 2022. Gold price in 2023 increases Accumulated in 2023, Vietnam had total 3,188 new
anticipates a continued upward trajectory, sharply, reaching a historical peak of 78 million projects (+56.58% YoY) with total newly-registered
forecasting that Vietnam’s GDP will ascend to 6% VND/tael (An increase of 12.57% compared to capital was 21.293 billion USD (+71.08% YoY).
by the year 2024. This optimistic outlook reflects January 2nd, 2023).
resilience and potential for sustained economic
development in the coming years.

Exchange Rate Interest Rate Trade Balance

As December 29th, 2023, Vietnam’s exchange rate Mobilization interest rates in 2023 are almost “free Overall in 2023, exports of goods and services
in 2023 increased sharply, reaching 24,270 VND fall” when banks continuously reduce interest decreased by 2.54% YoY, imports of goods and
(up 3.21% compared to January 3rd, 2023). After rates according to the State Bank’s operating services decreased by 4.33% YoY. Vietnam’s trade
the conflict between Israel and Hamas happened, policy. In 2023, there were 4 adjustments to surplus in 2023 set a record of 8 consecutive years
the USD/VND exchange rate tended to decrease. operating interest rates, currently the average of peaking, with the surplus in 2023 reaching
deposit interest rate is down 2.5 - 3 percentage about 28 billion USD (3 times higher than in 2022).
points/year compared to the beginning of the
year. This is due to a cash shortage in early 2023,
causing many banks’ interest rates to fall sharply.

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Part 1 GDP Vietnam’s Economic Overview Reflecting on historical economic downturns in 1989,

Economic Global Economy

The world situation continues to be complicated and
Vietnam’s GDP growth rate was 6.72% in Q4/2023 and
5.05% in 2023, respectively. In general, Vietnam’s GDP
2009, and 2012, Vietnam’s economic openness was
limited due to substantial exports of crude oil and
rice. However, in 2023, the economic landscape is
growth rate is on an upward trend, which is a positive sign
unpredictable. Furthermore, due to the sluggish recovery of
vastly different, with Vietnam actively expanding
for the Vietnamese economy although still lower than the
> GDP the global economy and the persistently high inflation rate,
and integrating into the global economy. This
government’s target of 6.5%.
numerous significant economies continue to implement
> CPI VIETNAM GDP GROWTHRATE BY QUARTER
increased openness exposes the country to
stringent monetary policies. Besides, the war conflict
external pressures, notably amidst the escalating
> EXCHANGE RATE between Russia and Ukraine has not yet ended, and the
2018 - 2024F
trade tensions between the US and China. China’s
> INTEREST RATE Israel-Hamas conflict is taking place at the same time. The
economic slowdown and the potential bankruptcy
> GOLD PRICE INDEX aging and decelerating growth of the labor force, combined
of numerous businesses in the wake of a complex
with the incremental warming of the global climate, have
> FDI trade war pose additional challenges to Vietnam’s
adverse effects on consumer demand and export orders in
> TRADE BALANCE economic stability. Navigating these intricacies will
numerous nations, including Vietnam.
require strategic measures to safeguard against
Vietnam is still one of the countries with outstanding adverse effects on the nation’s economic well-being.
economic growth results in Southeast Asia. In Southeast Asia,
Besides, FDI capital flows continue to flow into Vietnam
the Philippines has the leading growth rate in 2023 of about Source: MPI Vietnam & TMS Consultancy, Research (investors such as Korea, Japan, China, ...) focusing
5.6%. Ranked second is Cambodia with a GDP growth rate
The agriculture, forestry, and fishery sector contributed mainly on the real estate sector. This helps the State
of 5.5%. Vietnam ranked third (5.05%); followed by Indonesia
to 12% of the total, marking a YoY growth of 4.13%. The Bank increase foreign exchange reserves, ensuring
(5.0%); Malaysia (3.9%); Laos (3.7%); Thailand (3.4%); Myanmar
industrial and construction sector accounted for 37%, a stable foreign exchange market.
(3.0%); Brunei (2.5%); Singapore (1.2%). The maintenance
reflecting a substantial YoY growth of 7.35%, while the In parallel with attracting FDI, the State Bank is
of stable inflation, combined with successful foreign
service sector accounted for a 42% share with a notable continuously adjusting interest rates to support
economic endeavors, has established a crucial foundation
YoY growth of 7.29%. Within the industrial and construction people and businesses in recovery.
for macroeconomic governance and the stimulation of
sector, challenges abound, particularly amid the global
economic expansion in Southeast Asia.
downturn in aggregate demand. The conflict between TMS Consultancy predicts a robust 6% YoY growth
Israel and Hamas in October, coupled with China’s Q4/2023 for Vietnam’s GDP in 2024, aligning with the
GDP GROWTH RATE IN SOUTHEAST ASIA 2023
reopening, has exerted a notable impact on Vietnam’s Asian Development Bank’s estimate. Notably,
GDP, especially in the industrial domain. The industry VinaCapital expresses confidence in a remarkable
faces hurdles in the form of intensified global competition 6.5% growth, attributing this optimism to
Vietnam’s strategic export focus in areas such as
and decreased demand, directly impacting the economy
apparel and Anise-related products. The nation’s
of Vietnam.
resilient economy, coupled with proactive export
VIETNAM GDP STRUCTURE 2023 initiatives, paints a positive picture, indicating a
promising trajectory for economic growth in the
upcoming year.
Source: World Bank

Source: MPI Vietnam & TMS Consultancy, Research

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CPI EXCHANGE RATE INTEREST RATE

CPI IN VIETNAM | 2018 - 2023 Most Southeast Asian countries are affected by In 2023, the State Bank has reduced operating interest

COVID-19, with exchange rates falling sharply in 2021 rates four times in a row, each time from 0.5 to 2

and recovering in 2022 then trending down again percentage points/year, in the context of world interest

in 2023. Compared to other countries, Vietnam’s rates continuing to rise. The first reduction on March 15

exchange rate from 2018 to 2023 will not fluctuate reduced short-term loan interest rates in VND by 0.5%

much, still fluctuating between -2% and 2%. in some economic sectors and industries; Rediscount
interest rates and interbank lending interest rates
EXCHANGE RATE CHANGES IN SOUTHEAST ASIA decreased by 1%. The remaining three times the State
Source: GSO Vietnam 2018 - 2023
Bank reduced the operating interest rate on April 3;
Average CPI in Q4/2023 increased by 3.54% YoY. For the May 25 and June 19.
whole year 2023, CPI increased by 3.25% YoY, reaching
At the end of December, banks simultaneously adjusted
the target set by the National Assembly. Compared to
to reduce interest rates, bringing interest rates to the
the same period last year, the growth rate of the CPI
lowest ever.
in the first months of the year tended to decrease, and
Deposit interest rate table of Vietnamese banks as
from July it tended to increase again. Some reasons for
of December 31st, 2023:
CPI reduction in 2023 are: Source: World Bank
Unit: %/year
The domestic petroleum price index in 2023 The exchange rate as of December 29th, 2023 reached 1 3 6 12
decreased by 11.02% compared to 2022 according Bank
24,270 VND (up 3.21% compared to January 3rd, 2023). month months months months
to world price fluctuations, causing the overall CPI After the conflict between Israel and Hamas happened, Vietcombank 2,2 2.7 3.5 4.8
to decrease by 0.4 percentage points, kerosene the USD/VND exchange rate tended to decrease. BIDV 3 3.3 4,3 5.3
decreased by 10.02%. GOLD PRICE INDEX
Agribank 3 3.3 4,3 5.3
The gas group price index decreased by 6.94% EXCHANGE RATE USD/VND | 2023 Domestic gold prices fluctuate in the same direction
compared to 2022, causing the overall CPI to Vietinbank 3 3.3 4,3 5.3 as world gold prices. The gold price index in December
decrease by 0.1 % point. 2023 increased by 3.98% MoM; increased by 13.13% YoY.
Vietnam – Russia Joint
4,3 4,3 5.2 – 5.3 5.5
The price index of the postal and Venture Bank (VRB) In 2023, there was an increase of 4.16% in gold price.

telecommunications group decreased by 0.81% Notably, gold price reached a historic peak of 78 million
OceanBank 4,3 4.5 5.4 5.7
compared to the previous year due to the decrease VND/tael in 2023 (an increase of 12.57% compared to
National Citizen Bank
in prices of older generation mobile phones. 4.25 4.25 5.35 5.7 January 2nd, 2023).
(NCB)

Average core inflation in 2023 increases by 4.16% Bao Viet Bank 4.2 4.45 5.3 5.5 SPOT GOLD XAU/USD | 2023
compared to 2022, higher than the general average Source: Investing CB Bank 4 – 4.1 4.2 5.2 – 5.3 5.5

CPI increase (+3.25% YoY). The main reason is that the Source: TMS Consultancy, Research
average domestic gasoline price in 2023 decreased by
Compared to the COVID-19 period, commercial banks’
11.02% compared to the previous year (From a decrease
deposit interest rates for terms over 12 months in 2023
of 7.08% in January 2023, it decreased sharply by 31.73%
are about 0.5% points lower. The reason is excess system
in June 2023, then the decrease gradually decreased
liquidity in the context of weak credit demand.
and by December gasoline prices increased by 2.03%
over the same period last year) is a factor restraining the
Source: Investing
growth rate of CPI but belongs to the group of goods
excluded from the list of basic inflation calculations.

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FDI In 2023, there will be 111 countries and territories TRADE BALANCE
investing in Vietnam. Among them, Singapore leads
According to the Ministry of Planning and Investment, In Q4/2023, total exports reached 101.943 billion USD
ahead with a total registered investment capital of
Vietnam had 934 newly registered projects (+37.15% (+3.42% QoQ and +8.3 YoY), while imports reached
more than 6.8 billion USD (accounting for 18.6% of
YoY) with a new registered capital of 11.06 billion USD 98.238 billion USD (+6.02% QoQ and +7.73% YoY).
total registered investment capital in Vietnam). Japan
(+107.79% YoY) in Q4/2023. For the whole year of 2023, Cumulatively in 2023, export turnover was 374.114 billion
ranked second with nearly 6.57 billion USD (accounting
Vietnam had a total number of new projects of 3,188 USD (-2.76% YoY). Import turnover reached 356.291
for 17.9% of total investment capital). The third is Hong
(+ 56.58% YoY) with a total registered capital of 21,293 billion USD (-7.74% YoY). The reason is that Vietnam’s
Kong with total registered investment capital of more
billion USD (+ 71.08% YoY). export market has encountered many difficulties and
than 4.68 billion USD. Next according to China, Korea,
challenges in recent times:
VIETNAM FDI INFLOW | 2018 - 2023 Taiwan, Netherlands, Thailand, US, Samoa.
Two key markets (US and EU) - accounting for
TOP COUNTRIES INVEST FDI TO VIETNAM | 2023 more than 40% of Vietnam’s export turnover -
declined and the markets were severely affected.
Consumption decreased in main export markets,
the export value of the US, Korea, EU and ASEAN
decreased by 22%, 10%, 10% and 9% respectively. The
US is still Vietnam’s top export market, accounting
for 30% of total export turnover, second is China and
Source: MPI Vietnam then the EU.

China’s opening of its economy has created

Foreign investors invested in 18/21 national economic Source: MPI Vietnam
competitive pressure on Vietnamese exports of the
sectors. Of which, the processing and manufacturing Foreign investors have invested in 56 provinces and
same type.
industry leads with a total investment capital of more cities across the country in 2023. Ho Chi Minh City
than 23.5 billion USD, accounting for 64.2% of total leads in attracting investment capital with a total The world economy is difficult, and China’s recovery
registered investment capital and an increase of 39.9% registered investment capital of more than 5.85 billion is slow, causing export demand to weaken and
YoY. The real estate business ranked second with a USD, accounting for nearly 16% of total registered industrial production to decline.
total investment capital of nearly 4.67 billion USD, investment capital. Hai Phong ranked second with a Currently, Vietnam’s largest export item to the US is no
accounting for more than 12.7% of total registered total registered investment capital of more than 3.26 longer just textiles and garments but also high-tech
investment capital, an increase of 4.8% YoY. Electricity billion USD, accounting for 8.9% of the total investment products. Currently, Vietnam ranks 4th (after China,
production and distribution industry; the banking capital of the country. Next are Quang Ninh, Bac Giang, Taiwan, and Germany) in terms of its potential to
and finance sector ranked 3rd and 4th with a total Thai Binh, Hanoi, Dong Nai, Nghe An. become an exporter of high-tech goods.
registered capital of more than 2.37 billion USD (up TOP VIETNAM CITIES RECEIVE FDI | 2023
4.9%) and nearly 1.56 billion USD (27 times). VIETNAM TRADE BALANCE OF GOODS
2019 - 2023
VIETNAM FDI STRUCTURE BY SECTOR | 2023

Source: MPI Vietnam

Source: GSO Vietnam

Source: TMS Consultancy, Research
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Part 2: Real Estate

VIETNAM REAL ESTATE PERFORMANCE IN 30 YEARS

Source: TMS Consultancy, Research

◊ Revised law on real estate adopted: Significant changes occurred in Vietnam’s real estate
landscape in 2023, owing to crucial legislative revisions and strategic actions. The revision of
key regulations such as the Housing Law, Real Estate Business Law, and Land Law emerged
as a critical factor influencing the real estate market. While the updated Housing Law
and Real Estate Business Law have already been approved, the Land Law is still awaiting
approval in the forthcoming National Assembly session in 2024.
◊ Removing difficulties for the real estate market: On February 17th, 2023, the Prime
Minister suggested relieving problems and revitalizing the real estate sector. Following that,
a number of policies were enacted, including Decree No. 08/ND-CP on corporate bonds,
Resolution No. 33/NQ-CP outlining real estate market solutions, Official Letter No. 178/TTG-
CN encouraging market growth, Decision No. 338 mandating the construction of at least 1
million social housing units, and Decree No. 10/ND-CP providing guidance on the Land Law
with supplementary regulations for granting ownership rights to hospitality real estate.

◊ Public investment to offer backbone for infrastructure: Simultaneously, public investment

emerged as a critical driver in fortifying infrastructure. Public investment had reached
about 65.1% of the Prime Minister’s assigned target by November 2023, representing a
6.77% increase over the same month in 2022. Moreover, Ring Road 3 in Ho Chi Minh City,
Ring Road 4 in Ha Noi, Can Gio Bridge, My Thuan 2 Bridge, My Thuan - Can Tho Expressway,
Nha Trang - Cam Lam Expressway, and the second phase of Vinh Tuy Bridge are among the
notable projects contributing to this surge.

◊ The changing face of real estate credit: According to the State Bank of Vietnam, as of
September 30, 2023, the total real estate credit reached 2.74 quadrillion VND, an increase of
6.04% compared to December 31th, 2022, accounting for 21.46% of the total. The State Bank
reduced the operating interest rate 4 times, which impacted on the real estate.

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M&A ACTIVITIES IN VIETNAM | 2008 - 10T/2023

Source: VIR, Capital IQ

◊ Difficulties in the real estate market to last until late 2024: Despite issues such as low
liquidity and lower selling prices, the real estate industry showed signs of resiliency in
the second half of 2023. According to the Vietnam Association of Realtors (VARS), the
first half of the year had sluggish real estate liquidity, but a noticeable improvement
developed toward the conclusion of the year.
◊ The struggles of real estate enterprises: The difficulties faced by real estate businesses
were obvious, leading to the exit of a number of firms from the market. According to the
General Statistics Office, 1,286 real estate businesses are expected to quit the industry
by 2023. The financial crisis has led some enterprises to close temporarily, while major
players are undertaking structural changes such as the dissolution of subsidiaries and
workforce reductions.
◊ Effect of bonding pressure: To compound the industry’s troubles, real estate businesses
◊ A gradual recovery in M&A: During the first 10 months of 2023, the
faced significant bonding pressure in 2023, with around 119,000 billion VND in bonds.
total value of declared M&A deals was 4.3 billion USD, even though
This financial burden constituted a difficult barrier for real estate-related firms.
there were only 51 transactions, a higher amount than in 2022.
◊ Some outstanding M&A deals in 2023 below as: Despite these barriers, the general market picture will have been improving. Vietnam’s real
estate market is ready for recovery as fresh supplies enter the market and the expected

M&A Deals Total Value

resurgence at the end of 2024..
The performance of real estate sectors included apartment, office, retail and hotel in
Hong Kong’s Everland Opportunities IX acquired 2 ibis Saigon
Q4/2023 is shown below:
South and Capri by Fraser hotels in District 7, Ho Chi Minh City city 106 million USD
from Thailand’s Strategic Hospitality Holdings Limited

Gamuda Land (Malaysia) acquired a 3.7 ha project in Thu Duc city of

320 million USD No Item City Change
Tam Luc JSC

ESR Group acquired an 11% equity stake in its Vietnam partner BW HCMC 1.6% QoQ 2.6% YoY
208 million USD
Industrial

1 Apartment Hanoi 1.2% QoQ 1.7% YoY

Malaysia’s SkyWorld Development Berhad acquired 2,060 sqm of
14.3 million USD
land in district 8, Ho Chi Minh City city from Thuan Thanh JSC
Da Nang 1% QoQ 1.4% YoY
Vietnam’s Saigonres Group acquired 90% share of Duc Nhi JSC to
N/A
own a 7,700 sqm plot in Tan Phu district, Ho Chi Minh City City HCMC 1% QoQ 1.1% YoY

Singapore’s Keppel Land acquired a 49% stake in 2 residential 2 Office Hanoi 1.8% QoQ 2% YoY
138 million USD
projects in Thu Duc City

Da Nang 1% QoQ 1.3% YoY

Singapore’s Keppel Land acquired a 65% stake in a local company
50 million USD
to open a shopping mall in Hanoi in 2025
HCMC 1.2% QoQ 4.0% YoY
Vietnam’s First Real Land JSC purchased 22% of the charter capital 3 Retail
shares of Bach Dang Trading and Service JSC, the owner of a 6,879 8.2 million USD Hanoi 1% QoQ 2.9% YoY
sqm plot in Da Nang
Source: TMS Consultancy, Research
11 Source: TMS Consultancy, Research 12
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APARTMENT
Ho Chi Minh City
Supply & Demand
HCMC APARTMENT AVERAGE ASKING PRICE Future Supply
In Q4/2023, Ho Chi Minh City’s market had 1 new Q4 2023 Notable upcoming apartment projects in Ho Chi
project and 8 next-phase projects for sale, with Minh City as below:
nearly 1,500 units launched to the market, mainly
in high-end and mid-end. The Western area was
The Global City
leading in the mount of Ho Chi Minh City’s supply,
with The Privia Khang Dien and Akari City 2 in Binh
Tan district. Moreover, Grand Marina Saigon (Lake
Tower) in District 1, Delasol (A & C blocks) in District
4, Lumière Riverside in Thu Duc City, and Masteri
Centre Point in Thu Duc City, were handed over by Source: TMS Consultancy, Research
the end of 2023.
In general, the overall average asking price has
10,000 Units | 7,000 USD/sqm | Thu Duc City
HCMC APARTMENT SUPPLY | Q4 2023 decreased by 2-5% across all segments, excluding the
exclusive domains of branded houses and ultra-luxury Eaton Park
sectors. This price change highlights the nuances of
the real estate business in Ho Chi Minh City, exhibiting
a responsive approach to market conditions and
consumer preferences.

HCMC APARTMENT ASKING PRICE BY AREA

Q4 2023
1,980 Units | 4,900 USD/sqm | Thu Duc City
Source: TMS Consultancy, Research
Source: TMS Consultancy, Research

Looking ahead to 2024, the new supply of

apartments is expected to reach over 10,000
units thanks to removing difficulties in real
estate, supporting interest rate and developers’
incentives. Particularly, Eaton Park (Thu Duc
Source: TMS Consultancy, Research
City) – Gamuda Land, The Global City (Thu Duc
City) – Masterise Homes will be launched in the Overall, the Eastern area has been still leading in
first half of 2024. Ho Chi Minh City market with over 3,500 USD/sqm,
increased by 3% YoY. The Southern area had 1,580 USD/
Market Performance
sqm, decreased by 1% YoY. The Northern and Western
The current trend in Ho Chi Minh City’s real estate
market shows a significant fall in the average asking areas had average asking prices to range from 1,000 to

price for apartments, which is currently sitting 1,100 USD/sqm.

around 2,890 USD/sqm, representing a 2.6% YoY

According to TMS Consultancy, the outlook for the
decrease. Secondary prices dropped sharply about
Ho Chi Minh City apartment market indicates a
10-20% and some projects are for sale at their original
potential upswing at the end of 2024. Based on our
price. The reason is that interest rates are still high,the
collected data, asking price increases of 2% to 5%
estate market is difficult and consumers’ behavior.
are likely. This forecast takes into account market
Recently, Khang Dien Group had just launched The
changes and upcoming policy and lawmaking.
Privia (Binh Tan District) in the high-end segment
with nearly 2,000 USD/sqm.
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APARTMENT

Hanoi Da Nang
Supply & Demand The Western has been leading in Hanoi’s apartment market Supply & Demand DA NANG APARTMENT AVERAGE ASKING PRICE
In Q4/2023, the real estate market in Hanoi launched in 2023. It reached 2,085 USD/sqm, up to 2% YoY. The Southern Sun Cosmo Residences launched more than 150 units BY DISTRICT | Q4 2023
approximately 2,200 units, mainly in high-end segment. and Eastern areas had average asking price ranging from 1,600 to Da Nang’s apartment market in Q4/2023. Despite a
The Western area was leading in the mount of Hanoi to 1,800 USD/sqm, whereas the Northern area recorded notably relatively low new supply of over 800 units in the preceding
more affordable prices, falling below the 1,200 USD/sqm. 11 months of 2023, indicating a modest 2.1% YoY increase,
supply, with The Canopy Residences, Lumière Evergreen
and The Sakura located in Vinhomes Smart City (Nam Tu HANOI APARTMENT AVERAGE ASKING PRICE this subdued growth can be attributed to developers using
BY AREA | Q4 2023 various incentives to entice customers, as well as changes in
Liem district). Moreover, some projects are handed over
at the end of 2023 such as Masteri Waterfront (Gia Lam mortgage rates and evolving consumer purchasing behavior.
district) and Masteri West Heights (Nam Tu Liem district). DA NANG APARTMENT SUPPLY | Q4 2023
HANOI APARTMENT SUPPLY | Q4 2023 Source: TMS Consultancy, Research
The Da Nang apartment market’s average asking prices
vary significantly among districts, displaying a diversified
pricing landscape. Ngu Hanh Son district leads with an
average asking price of 2,600 USD/sqm, closely followed
Source: TMS Consultancy, Research
by the Hai Chau and Son Tra districts, both of which
In the coming time, our TMS Consultancy forecast that Source: TMS Consultancy, Research exceed 2,000 USD/sqm. Moreover, Lien Chieu, Cam Le,
Hanoi’s apartment had an impending upward trend, and Thanh Khe districts provide more affordable options,
Looking ahead to 2024, the new supply of
with the potential for a slight increase of approximately with prices ranging from 900 to 1,000 USD/sqm.
apartments is expected to reach over 1,400 units
Source: TMS Consultancy, Research
3-4% in Western area. Moreover, the completion of Vinh in Hai Chau and Ngu Hanh Son districts. In the future, TMS Consultancy’s forecast for the
In 2024, the new supply of apartments is expected to Tuy bridge – phase 2 in Q3/2023 and Duong bridge in condominium segment in Da Nang’s market hints at
reach over 8,000 units thanks to increasing consumers’ 2025 will support future supply and sales. a slight increase of about 1-2% by the end of 2024. The
demand, supporting interest rate and developers’ Market Performance
reasons is for that removing in real estate, the increase
incentives. Particularly, Lumi Hanoi (Nam Tu Liem Future Supply The average asking price for apartments was approximately in prices of construction material and labor cost.
district) – Capital Land will be launched in Q1/2024. Notably, some upcoming projects in Hanoi as below: 2,380 USD/sqm, decreased by 1.4% YoY. The luxury segment
Future Supply
Market Performance was around 3,520 USD/sqm, increased by 1.6% YoY and the
Lumi Hanoi Notably, some upcoming projects in Da Nang as below:
high-end segment reached from 2,000 to 2,300 USD/sqm,
The average asking price in Hanoi reached 2,298 USD/
up to 1% YoY. In contrast, the mid-end segment faced a Da Nang Landmark Tower
sqm, up to 1.7% YoY. Meanwhile, The Grand Hanoi belongs
downward trend, averaging 1,290 USD/sqm, decreased 6% YoY.
to branded residences had the highest price with over
These indicators reveal the varying dynamics within different
30,000 USD/sqm. The luxury segment was 3,500 USD/
segments, emphasizing the luxury segment’s rise, high-end
sqm, up to 2.6% YoY, the high-end segment was 2,190
segment’s resilience and mid-end segment’s pressure.
USD/sqm, up to 1.4% YoY and the mid-end segment was 4,000 Units | 2,70 USD/sqm | Nam Tu Liem District
DA NANG APARTMENT AVERAGE ASKING PRICE
1,510 USD/sqm, up to 1% YoY. In contrast, the affordable
Handico Complex
Q4 2023 446 Units | 4,000 USD/sqm | Hai Chau District
segment recorded decline of 6%, with 960 USD/sqm.
HANOI APARTMENT AVERAGE ASKING PRICE | Q4 2023 The Estuary Da Nang

228 Units | 2,500 USD/sqm | Thanh Xuan District

Source: TMS Consultancy, Research 1,200 Units | Hai Chau District

Source: TMS Consultancy, Research Source: TMS Consultancy, Research

15 Source: TMS Consultancy, Research 16

 Market Report | Q4 2023 Market Report | Q4 2023

OFFICE

Ho Chi Minh City

The supply of office space in Ho Chi Minh City increased Future Supply
by 4% YoY in Q4/2023, reaching 2.7 million sqm NLA, By 2026, over 300,000 sqm NLA will be launched to the
with the entry of 2 outstanding projects with over 60,000 market in Ho Chi Minh City, the CBD will continue to
sqm NLA in Grade A. Notably, The Nexus and VP Bank dominate with 70% share. Future supply is on-track with
Tower dominated the Central Business District (CBD), 90% under construction or completing. Moreover, the
contributing about 90% of the new supply. demand for green workplaces is expected to increase and
over 80% of future supply will have green certificates.

HCMC OFFICE MARKET PERFORMANCE | Q4 2023

Marina Central Tower

Grade A | 87,000 sqm NLA | District 1

Source: TMS Consultancy, Research D’. Saint Raffles

Source: TMS Consultancy, Research

The average rental price for Grade A reached 47.15

USD/sqm/month, up to 1.8% YoY and the occupancy rate Grade A | 12,000 sqm NLA | District 1
was 85%. The Nexus had asking rents ranging from 60 to
65 USD/sqm/month, whereas VPBank Tower had prices UOA Tower II
ranging from 50 to 55 USD/sqm/month. Rental price for
Grade B reached 25.5 USD/sqm/month, decreased by
1.8% YoY and the occupancy rate was 92%.

TMS Consultancy predicts that the average asking

Grade B | 45,800 sqm NLA | District 7
rent for office space in Ho Chi Minh City would continue
to rise by 2-3% in the coming year. This upward trend
e.Town 6
will be matched by a predicted increase in overall
occupancy to about 90%, demonstrating a durable
and bright prognosis for the city’s commercial real
estate sector. Notably, this development is expected
to contribute to a reducing gap between Grade A
office clusters, thanks to improvements in non-CBD Grade B | 35,000 sqm NLA | Tan Binh District
buildings.
Source: TMS Consultancy, Research

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 Market Report | Q4 2023 Market Report | Q4 2023

OFFICE

Hanoi Da Nang
In Q4/2023, the stock of office space in Hanoi increased Future Supply In Q4/2023, the office market in Da Nang exhibited Future Supply
by 2% YoY, reaching 2.2 million sqm NLA, after the entry By 2026, more than 250,000 sqm from 13 projects will encouraging signs of vitality as business activities By 2025, more than 30,000 sqm from 13 projects will enter
of Lotte Mall West Lake Hanoi, which contributed over enter to the market. Grade A will have a 70% share of began to regain momentum. While Da Nang’s growth to the market in Da Nang.
20,000 sqm NLA. With an occupancy rate of 88%, the future supply. may not be as robust as that witnessed in major
Grade A recorded an average rental price of 34.8 USD/ metropolitan centers like Ho Chi Minh City and Hanoi, Risemount Sky Tower
sqm/month, a 3% YoY decline. The average asking rent the slight increase in net absorption reflects a notable
Grand Terra
for Grand Terra was 38 USD/sqm/month, whereas Taisei uptick in demand for office spaces.
Square Hanoi was 23 USD/sqm/month. Rental price for
DA NANG OFFICE MARKET PERFORMANCE
Grade B reached 17.4 USD/sqm/month, increased by 1.2%
Q4 2023
YoY and the occupancy rate was 82%.
Grade A | 11,000 sqm NLA | Thanh Khe District

Grade A | 14,000 sqm NLA | Dong Da District

HANOI OFFICE MARKET PERFORMANCE | Q4 2023 The One Da Nang

Taisei Hanoi Office Tower

Grade A | 25,000 sqm NLA | Hai Chau District

Grade A | 22,500 sqm NLA | Cau Giay District Source: TMS Consultancy, Research

In Q4/2023, the office market in Da Nang exhibited Source: TMS Consultancy, Research
Galex Ly Thai To
Source: TMS Consultancy, Research encouraging signs of vitality as business activities
began to regain momentum. While Da Nang’s growth
may not be as robust as that witnessed in major
TMS Consultancy anticipates an additional 1-2%
metropolitan centers like Ho Chi Minh City and Hanoi,
increase in the average rental price for office
the slight increase in net absorption reflects a notable
premises in the future period. This estimate Grade A | 45,800 sqm NLA | Hoan Kiem District uptick in demand for office spaces.
is mostly due to rising construction and
labor expenses, which are putting increasing Tien Bo Plaza
pressure on rental rates. This expectation
points to a dynamic and evolving landscape in TMS Consultancy expects Da Nang office rents

Hanoi’s office real estate market, with market to rise 1-2% in 2024. The developing market
forces dictating future trends. dynamics and sector growth trajectory are
included in this estimate. As office space
Grade A | 35,000 sqm NLA | Ba Dinh District
demand in Da Nang changes, landlords may
Source: TMS Consultancy, Research be able to proactively adjust rental pricing to
stay competitive and recruit tenants.

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 Market Report | Q4 2023 Market Report | Q4 2023

RETAIL

According to the General Statistics Office of Vietnam (GSO), Vietnam’s total

retail sales of consumer goods and services in 2023 has been estimated at
over 6.2 quadrillion VND (259.6 billion USD), up 9.6% YoY. Revenue from the
retail sale of goods was estimated at more than 4.85 quadrillion VND (202
billion USD), accounting for 78% of total earnings from goods and services
and up 8.6%. Localities posting increases in the retail sales of goods included
Quang Ninh 12.2%, Binh Duong 11.4%, Hai Phong city 10.4%, Dong Nai 9.1%, Ho
Chi Minh City 7.8%, Hanoi 7.1% and Da Nang 5.9%.

VIETNAM RETAIL SALES OF GOODS AND SERVICES | 2019 - 2023

Source: GSO Vietnam

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 Market Report | Q4 2023 Market Report | Q4 2023

RETAIL

Ho Chi Minh City Future Supply

In 2024, there are over 70,000 sqm NLA in Hanoi and over 80,000 sqm NLA in Ho Chi Minh
In Q4/2023, stock of 1.8 million sqm NLA, up to 2% YoY. Both CBD and non-CBD regions had impressive City city, entering to retail market.
The non – CBD had a 90% share of stock. Meanwhile, occupancy rates of 95% and 85%, respectively. This
No. Project Name Location NLA (sqm) Year of completion
Emart Go Vap has entered to the market, with over positive market performance underscores the city’s
11,000 sqm NLA. status as a thriving business hub, attracting local and Ho Chi Minh City

international companies. 1 Vincom Megamall Grand Park Thu Duc City 42,000 2024
With the introduction of more than 80,000 sqm
NLA from key projects such as Vincom Mega Mall 2 Vincom 3/2 District 10 2,000 2024
HCMC RETAIL MARKET PERFORMANCE | 2019 - 2024F
Grand Park in Thu Duc City, Vivo City in District 3 Sun Tower District 1 20,000 2024 – 2025

7, and the renovation initiatives of Vincom 3/2 in Hanoi

District 10, the landscape is set to evolve by 2024, 4 Han Jardin Bac Tu Liem 34,000 2024

with all poised to revitalize their retail cycles 5 The LinC Ha Dong 19,000 2024

through strategic tenant mix adjustments. 6 Grand Terra Dong Da 20,000 2024

Source: TMS Consultancy, Research

Moving on to the retail rental market in Ho Chi Minh
City, the average rent in the CBD reached 160 USD/sqm/
month, with a notable 4% YoY increase. The non-CBD area
saw significant growth, with an average rent of 40 USD/ Source: TMS Consultancy, Research
sqm/month, reflecting an approximate 2%YoY increase.

Hanoi

The stock of over 1.6 million sqm NLA increased by 4% YoY dynamics of Hanoi’s commercial real estate market,
with the entry of Lotte Mall West Lake Hanoi with 72,000 emphasizing both the liveliness of the CBD and the
sqm NLA. resilience of non-CBD districts in satisfying the needs of
businesses and tenants.
Three future developments, Grand Terra, The
LinC, and Ha Jardin, are scheduled to contribute
approximately 20,000 sqm NLA to the market by
the end of 2024. Shopping centers are expected
HANOI RETAIL MARKET PERFORMANCE | 2019 - 2024F
to provide for 60% share, with retail podiums
accounting for the remaining 40%.

The average rental price in Hanoi’s central business

district (CBD) reached 116 USD/sqm/month, representing
a 4% YoY increase. The occupancy rate in this premium
region was an amazing 90%. Non-CBD areas, on the
other hand, saw an average rental price of 27 USD/sqm/
month, representing a 1.9% YoY rise, with a solid 85%
occupancy rate. These numbers depict the dynamic Source: TMS Consultancy, Research

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 Market Report | Q4 2023 Market Report | Q4 2023

HOTEL

In Q4/2023, many provinces in Vietnam witnessed

increases in hotel rental price, with ranging from 1%
to 4% QoQ and from 3% to 7% YoY. Notably, in Ho
Chi Minh City, the country’s premier destination, the
average hotel rental price increased by 6% YoY to 89
USD/room/night. The city also had a high occupancy
rate of more than 85%, highlighting its status as a
booming powerhouse for the hospitality industry.
Similarly, the average rental rate in Hanoi reached
roughly 83 USD/room/night, a 5% YoY rise supported
by an amazing 80% occupancy rate. Provinces and
tourist cities such as Da Nang, Nha Trang, Binh Thuan,
Phu Quoc, and Vung Tau all recorded YoY increases in
In 2023, Vietnam’s domestic tourist arrivals reached
hotel rents of approximately 3% to 7%, with occupancy
108.5 million visitors, up to 6,8% YoY. Besides, the
rates comfortably exceeding 60%.
number of international visitors to Vietnam reached 12.6
million, increased by 245% YoY. Moreover, travel revenue HOTEL MARKET PERFORMANCE IN SOME
is estimated to reach 678.3 trillion VND, up 4.3%% YoY. CITIES | Q4 2023
The cause for this is an increase in tourism demand as
a result of the Covid-19 pandemic’s long-term impact.
Furthermore, local governments have been actively
adopting various measures throughout the year to
stimulate tourism demand.

VIETNAM TOURSIM BY QUARTER | 2019 - 2023

Source: TMS Consultancy, Research

According to our TMS Consultancy, hotel

rental prices are predicted to continue rising,
with 3% to 7% rises forecast in 2024. This
projection coincides with an expansion in the
supply of hotel rooms in various provinces.
In Ho Chi Minh City, for instance, more
Source: GSO Vietnam than 2,500 rooms from renowned brands
Among the countries coming to Vietnam, South Korea like Fusion, Hilton, and InterContinental
continues to be the country with the largest number are slated to be added by the end of 2024.

of tourists coming to Vietnam, estimated at 3.6 million Looking ahead, Hanoi is poised to welcome
approximately 2,400 rooms to the market
visitors, accounted for 28% share. Next is China with 1.7
by 2025, while Da Nang is gearing up for a
million visitors. Followed by Taiwan (China) and the US
substantial influx of over 7,500 rooms.
with 710 thousand visitors and 590 thousand visitors.

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 Market Report | Q4 2023 Market Report | Q4 2023

Part 3: Legal

On November 27-28, the National Assembly passed the draft Housing Law

and Real Estate Business Law and will take effect from January 1, 2025. Some

new points in the Housing Law and Real Estate Business Law are as follows:

HOUSING LAW

◊ There is no regulation on the duration of apartment ownership;

◊ The Vietnam General Confederation of Labor is the governing body

of the investment project to build social housing for workers and
tenants;

◊ Removing citizenship requirements for social housing buyers, this

is consistent with the reality of moving and attracting workforce
between regions and localities;

◊ Issuing books to qualified mini apartment buyers;

◊ Stipulating a preferential mechanism for implementing investment

projects to renovate and rebuild apartment buildings, including a
preferential mechanism for exemption of land use fees and land rent
for the area;

REAL ESTATE BUSINESS LAW

◊ The investor of a real estate project is only allowed to collect a deposit

of no more than 5% of the sale price;

◊ Landowners will not be permitted to divide their land areas into many
land plots and sell to others in special level and Class 1-3 Urban;

◊ Before launching future real estate projects, investors are required to

complete financial obligations related to land;

◊ Customers have the full right to choose a guarantee for obligation

performance;

◊ Individuals doing small-scale real estate business do not have to

establish a company;

◊ Legalize regulations on buying and selling hospitality real estate.

Accordingly, the concept of condotel is no longer in the Real Estate
Business Law, only construction floors with functions serving tourism
and accommodation;

27 28
Note: The property market research contained is verified to the best of TMS
Consultancy’s abilities. TMS Consultancy reports reflect an overview of the
current property market and are indicative research only. TMS Consultancy
does not guarantee the accuracy of research and forecasts contained herein.
TMS Consultancy does not accept any responsibility for losses arising from
reliance on the research and forecasting. TMS Consultancy recommends that
the reader obtain a detailed market study of the specific sector of interest
should a deeper understanding of the market be required.

MARKET
REPORT
Q4 | 2023

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