Vietnam GDP growth reached 7.1%, bolstered by strong manufacturing and exports. The expansion of the service sector was robust, supported by private consumption and record tourist arrivals. National retail sales of goods increased 12% Year-on-Year (YoY) to US$145 billion. Total export value in 218 exceeded US$244 billion, resulting in a trade surplus of US$7.2 billion. FDI sectors accounted for over 7% of export value, the US remained the largest market. Although total registered FDI slightly decreased -1% YoY, disbursed FDI in 218 increased 9% to over US$19 billion. 2
US$/m²/mth % Thousand VND/m²/mth % Thousand VND/m²/mth RETAIL: ROOM FOR GROWTH Total stock came from 12 projects, increasing 9% pa over the past five years. Ngo Quyen District had the largest market share. Average ground floor (GF) gross rent was approximately US$36/m²/mth whilst occupancy was 96 percent. Department Stores had the highest rent and occupancy. In 218, retail sales were up 14% Year-on-Year (YoY) to VND 89 trillion, reflecting higher demand and consumer confidence. Seven new projects will enter from 219, mostly located in Hong Bang and Le Chan Districts. FIGURE 1 Avg. GF gross rent Occupancy 1, 8 6 4 2 Department store Shopping centre Retail podium 1 8 6 4 2 % OFFICE: POTENTIAL DEMAND Stock came from 33 Grade B and C projects; Ngo Quyen District was FIGURE 2 3 Avg. gross rent Occupancy 1 the largest supplier. Average occupancy was 87 percent. Ngo Quyen District registered the highest rent and occupancy. Hai Phong is one of the 1 provinces nationwide for registered FDI. Businesses have grown at an average 12% pa. No Grade A buildings are expected in the future. 25 2 15 1 5 8 6 4 2 Grade B Grade C SERVICED APARTMENT: STABLE MARKET AND HIGH OCCUPANCY There were had 16 serviced apartment projects. Two international FIGURE 3 3 Avg. rent Occupancy 1 operators contributed Grade A stock, whilst one Japanese developer is expected to develop a new project. Occupancy reached 96% and rent was US$21/m 2 /mth. Average RevPAU was US$2/m 2 /mth. Asian tenants were the largest source of demand. In 218, Hai Phong ranked third nationwide and attracted US$3 billion in registered FDI. In 217, the city claimed 9 th place in the Provincial 25 2 15 1 5 8 6 4 2 Competitiveness Index (PCI). Grade A Grade B Grade C 3
Rooms APARTMENT: HIGH ABSORPTION FIGURE 4 Total supply in Hai Phong was approximately 3,41 units. By district, An Duong was the largest supplier. Limited primary supply and stable demand resulted in a high marketwide absorption rate. Ngo Quyen District had highest average asking price of US$1,28/m 2. 15% 7% 5% An Duong Kien An Ngo Quyen From 219 onwards, more than 4,3 units will enter; most will be Hai An located in Hong Bang District. 73% HOTEL: IMPROVED PERFORMANCE FIGURE 5 No. of rooms No. of hotels Fourteen 14 three- to five-star hotel provided approximately 1,4 8 8 rooms. Average occupancy was up 5 ppts YoY due to economic growth and 6 6 infrastructure development, which increased business and leisure travellers. Average revenue of five-star hotels was US$63/room/night; 4 4 Hotels double that of four-star and four times that of three-star. According to the Hai Phong Statistics Office, in 218, there were 7.8 2 2 million visitors to Hai Phong, up 12% YoY. In 219, approximately 4 four- and five-star rooms will come online. 5-star 4-star 3-star VILLA & TOWNHOUSE: STABLE SUPPLY Four new projects and two new phases supplied nearly 1,25 dwellings in 2H/218. Hong Bang and Duong Kinh districts provided 53% of total supply. Hong Bang led with 52% of transactions, followed by Le Chan with 36 percent. In 219, five projects will enter, supplying approximately 3,48 dwellings. FIGURE 6 4
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