VIETNAM REAL ESTATE REPORT Q1/ PDF Free Download

VIETNAM REAL ESTATE REPORT Q1/2018 1

Content Executive summary 4 3.3.1 Real estate for rent 40 1. Business environment 7 3.3.2 Real estate for sale 67 1.1 Macroeconomic situation 7 3.4 Risks and challenges 77 1.2 Legal framework 11 3.4.1 Risks 78 1.3 Impact of trade agreements 18 3.4.2 Challenges 80 2. World Real Estate Market 21 3.4.3 SWOT 82 2.1 Real estate market in some countries in the world 21 3.5 Housing development planning 83 2.2 Real estate market in some countries in the region 27 3.6 Driving forces 85 3. Vietnam Real Estate Market 30 3.7 M&A trend 94 3.1 Industry concepts and characteristics 30 4. Enterprise analysis 97 3.2 The period of volatility of Vietnam Real Estate Market 34 5. Appendix 125 3.3 Movement of the real estate market 39 List of infrastructure projects for the period 2010-2030 126 Financial statements 130 2

Abbreviations RS Real estate MC Ministry of Construction FIA Foreign Investment Agency GSO General Statistics Office VNAT Vietnam National Administration of Tourism VNREA Vietnam Real Estate Association VIRAC Vietnam Industry Research And Consultant JSC 3

Executive summary Vietnam is one of the most attractive destinations for retailers in Southeast Asia due to the booming economy. Vietnam after a long time developed the "bubble" with the virtual price and then fall into recession, house prices gradually return to real value. The supply of office space for lease in Ho Chi Minh City in Q4/2017 remained unchanged, 4

Executive summary With an export-oriented economy, with exports accounting for a significant portion of 80% of nominal GDP, The rate of GDP growth over the years and policies to attract investment, as well as tourists in recent years, is driving forces for the hotel market in Vietnam. According to statistics at the end of Q3/2017, only 750 foreigners are owning houses, therefore, the demand for rental apartments is relatively large. The number of 5-star hotel rooms still accounts for a large proportion of the market despite the increase in supply from 3-star hotels. 5

Executive summary Vietnam is seen as an attractive market compared to other ASEAN countries, In addition, the former when the retail market of Vietnam with only three big men in the industry such as Metro, Big C or Saigon Co.op, has formed and developed with many big names in the domestic retail industry Typical businesses with the largest real estate revenue in 2016 show a clear orientation 2017 is the year witnessed many large M & A transactions in the real estate market when many big investors trust to pour money into Vietnam. 6

Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Impact of trade agreements 7

1. Business environment 1.1 Macroeconomic situation GDP in 2017 was estimated to increase by 6.81% compared to 2016, of which increasing by 5.15% in Q1; 6.28% in Q2; 7.46% in Q3; 7.65% in Q4. GDP growth, 2011-2017 CPI fluctuations, 2014-2017 Source: VIRAC, GSO Source: VIRAC, GSO 8

1. Business environment 1.1 Macroeconomic situation CPI in 2017 by commodity group Group CPI compared to 2016 (%) Consumer Confidence Index, 2014 Q3/2017 Source: VIRAC, GSO Source: VIRAC, GSO 9

1. Business environment 1.1 Macroeconomic situation USD billion FDI, 2015-2017 In 2017, foreign investors have invested in 19 industries, Source: VIRAC, FIA Average lending interest rate applied to USD, 2011-2017 Source: VIRAC, GSO 10

Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Impact of trade agreements 11

1. Business environment 1.2 Legal framework Real estate business law effective from 1 July 2015 has some notable changes as follows: Sale or lease of houses to be formed in the future, investors must be guaranteed by credit institutions: Real estate business must establish enterprise: Investors of real estate projects are allowed to transfer all or part of the project Disclaiming that all real estate transactions must be through a real estate trading platform: 12

1. Business environment 1.2 Legal framework Handling the recovery of real estate projects: The Vietnam Bank for Social Policies (VBSP) will mobilize capital and provide loans to implement social support policies: Expanding the scope of real estate business activities of domestic organizations and individuals: 13

1. Business environment 1.2 Legal framework The 2014 Revised Housing Law, effective July 1, 2015, has some noteworthy points: Foreigners are allowed to buy and own houses in Vietnam: Expanding the beneficiaries of social support policies : 14

1. Business environment 1.2 Legal framework 15

1. Business environment 1.2 Legal framework Circular 06/2016 amending and supplementing some articles of Circular 36/2014/TT-NHNN A detailed walk-through map is included in the flat area and the sections are not included. Source: VIRAC, Circular 03/2014/TT-BXD) 16

1. Business environment 1.2 Legal framework On 12/15/2016, Circular No. 28/2016/TT-MC Point e, Clause 1, Article 89, Construction Law 2014: 17

1. Business environment 1.2 Legal framework The Ministry of Construction has issued two circulars effective from the beginning of February 1977 relating to apartment buildings and real estate brokers: 18

Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Impact of trade agreements 19

1. Business environment 1.3 Impact of trade agreements By the end of 2017, Vietnam has signed, implemented, and is negotiating a total of 16 free trade agreements (FTAs). Vietnam's integration process since 1995 to present 1998 2000 2002 2006 2007 2008 2009 2011 2015 2016 2017 20

1. Business environment 1.3 Impact of trade agreements Trans-Pacific Partnership Agreement - TPP: 21

Content 2. World Real Estate Market 2.1 Real estate market in some countries in the world 2.2 Real estate market in some countries in the region 22

2. World Real Estate Market 2.1 Real estate market in some countries in the world US Real estates USD House price movement in the US, 5/2012 11/2017 Source: VIRAC, National Association of Realtors 23

2. World Real Estate Market 2.1 Real estate market in some countries in the world In Europe: Ireland s real estate market: UK s real estate market : 24

2. World Real Estate Market 2.1 Real estate market in some countries in the world Germany s real estate market: Russia s real estate market : 25

2. World Real Estate Market 2.1 Real estate market in some countries in the world In Asia and Oceania: Australia s real estate market: New Zealand s real estate market: China s real estate market: 26

2. World Real Estate Market 2.1 Real estate market in some countries in the world In the Middle East housing market: 27

Content 2. World Real Estate Market 2.1 Real estate market in some countries in the world 2.2 Real estate market in some countries in the region 28

2. World Real Estate Market 2.1 Real estate market in some countries in the region In ASEAN countries: Myanmar s real estate market:. Indonesia s real estate market: 29

2. World Real Estate Market 2.1 Real estate market in some countries in the region Malaysia s real estate market: Home/income price indices in some 2016 countries Korea, Thailand Source: VIRAC, numbeo.com 30

Content 3. Vietnam Real Estate Market 3.1 Industry concepts and characteristics 3.2 The period of volatility of Vietnam Real Estate Market 3.3 Movement of the real estate market 3.4 Risks and challenges 3.5 Housing development planning 3.6 Driving forces 3.7 M&A trend 31

3. Vietnam Real Estate Market 3.1 Industry concepts and characteristics Overview of real estate market Definition 32

3. Vietnam Real Estate Market 3.1 Industry concepts and characteristics According to the Department of Housing Management - Ministry of Construction real estate is divided into three categories: 33

3. Vietnam Real Estate Market 3.1 Industry concepts and characteristics Basic characteristics of real estate Firstly, Secondly, Thirdly, 34

3. Vietnam Real Estate Market 3.1 Industry concepts and characteristics Fourthly, Characteristics of investment in real estate business in Vietnam 35

3. Vietnam Real Estate Market 3.2 The period of volatility of Vietnam Real Estate Market Periods of real estate in Vietnam Source: VIRAC 37

3. Vietnam Real Estate Market 3.2 The period of volatility of Vietnam Real Estate Market Before 1990: The first real estate fever (1993-1994): The first freeze (1995-1999): The second real estate fever (2001-2002): 38

3. Vietnam Real Estate Market 3.2 The period of volatility of Vietnam Real Estate Market The second freeze (2002-2006): The third real estate fever (2007-2009): The third freeze (2009-2013): 2014 now: 39

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Retail market Retail market Vietnam's economy is on a growth trajectory in terms of GDP and other economic indicators. Personal income and family expenses are gradually improving which also has a positive impact on the retail real estate market. Forecast: 41

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Retail market Retail market Hanoi m² Total supply by category, Q4/2017 Typical projects are scheduled for 2018-2020 Source: VIRAC, VNREA Ongoing projects Area (m²) Completion time Location Source: VIRAC, VNREA 42

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Retail market Supply structure by region, Q4/2017 Vacancy rates and rental prices, Q4/2017 Source: VIRAC, VNREA Source: VIRAC, VNREA 43

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Retail market The area of supply for commercial centers always accounts for a large proportion of over 90% of the retail supply area. Thousand m² Rental supply of commercial center, 2010-2017e Source: VIRAC, VNREA Rental rates and vacancy rates of commercial center, 2010-2017e USD/ m²/ month Source: VIRAC, VNREA 44

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Retail market Retail market Ho Chi Minh city m² Total supply, Q4/2017 Retail supply structure by region, Q4/2017 Source: VIRAC, VNREA Source: VIRAC, VNREA 45

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Retail market Regarding rental prices, average rents in the CBD as well as out-oftown areas remained unchanged in Q4. VND/m²/month Vacancy rate and rental prices, Q4/2017 Typical projects are expected to be completed in 2018-2020 Ongoing projects Area (m²) Completion time Location Source: VIRAC, VNREA Source: VIRAC, VNREA 46

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Retail market Thousand m² Supply of commercial center for lease, 2007-2017e Source: VIRAC, VNREA USD/ m²/ month Rental price and vacancy rate of commercial centers, 2007-2017e Source: VIRAC, VNREA 47

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Office market Office market In addition to the economic recovery (low inflation rate, improved GDP, high consumption), Vietnam's joining the EU - Vietnam FTA has attracted a large amount of foreign direct investment in the real estate, electronics, consultancy, finance, etc. The demand for office space has increased sharply as many foreign businesses will come to Vietnam and set up their offices in Vietnam in the coming years. 48

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Office market Office market Hanoi New supply and vacancy rate of grade A offices, 2010-2017e Thousand m² Thousand m² Total supply by region, Q4/2017 Source: VIRAC, VNREA Source: VIRAC, VNREA 49

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Office market USD/ m²/ month Office rental price, Q1/2015-Q4/2017 Source: VIRAC, VNREA Typical projects under construction, Q4/2017 USD/m²/month Average rental price by area, Q4/2017 Ongoing projects Area (m²) Completion time Location Source: VIRAC, VNREA Source: VIRAC, VNREA 50

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Office market Office market TP.HCM Thousand m² Office supply and vacancy rate, Q1/2015-Q4/2017 Source: VIRAC, VNREA Thousand m² Total supply and rental price by category, Q4/2017 USD Source: VIRAC, VNREA 51

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Office market USD/ m²/ month Office rental price, Q1/2015-Q4/2017 Ho Chi Minh City's office market continued to grow well in Q4/2017 with rising offer rents in both segments. Source: VIRAC, VNREA Typical projects under construction Ongoing projects Area (m²) Completion time Location Source: VIRAC, VNREA 52

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Industrial zone market Industrial zone market Forecast: 53

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Industrial zone market Industrial zone market Hanoi Total supply of industrial parks in Hanoi remained stable compared to the previous quarter and the same period last year due to the absence of any new supply entering the market. Ha Total Supply by Region, Q4/2017e Rental price by area, Q4/2017e VND thousand/ m²/ lease term Source: VIRAC, VNREA Source: VIRAC, VNREA 54

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Industrial zone market Typical projects in the period 2018-2020 Ongoing projects Area (ha) Location Source: VIRAC, VNREA 55

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Industrial zone market Ha Total supply and vacancy rate of Northern Industrial Zone, Q4/2017 Northern Industrial Zone USD/ m²/ lease term Content is intentionally Source: VIRAC, VNREA removed for demo purpose Average rental price for the Northern Industrial Zone, Q4/2017 USD/ m²/ month Source: VIRAC, VNREA 56

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Industrial zone market Industrial zone market Ho Chi Minh city Ha Total supply and vacancy rate, Q4/2017 Rental price by area, Q4/2017 VND thousand/ m²/ lease term Source: VIRAC, VNREA Source: VIRAC, VNREA 57

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Industrial zone market Typical projects in the period 2018-2025 Ongoing projects Area (ha) Location Source: VIRAC, VNREA Vacancy rate, 2011-2017 Source: VIRAC, VNREA 58

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Industrial zone market There is a continuous increase in demand USD/m²/month Rental price for factories available, 2011-2017 USD/m²/lease term Rental price for land by area, 2011 2017 Source: VIRAC, VNREA Source: VIRAC, VNREA 59

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Apartment for rent Apartment for rent Apartment for rent is the main segment serving foreigners living and working in Vietnam. Forecast: 60

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Apartment for rent Apartment for rent Hanoi Apartment for rent is the main segment serving foreigners living and working in Vietnam. Apartment Total Supply by Category, 2000-2017 USD/m²/month Source: VIRAC, VNREA Apartment rental price by category, Q1/2012-Q4/2017 Source: VIRAC, VNREA 61

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Apartment for rent Rental rates tended to decrease from 2014 and continued in 2016, Apartment rental price and rental capacity, Q1/2014-Q4/2017 USD/ apartment/ month Typical Serviced Apartments in Hanoi Source: VIRAC, VNREA Projects Number of apartment s Location Occupancy rate Class Source: VIRAC 62

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Apartment for rent Apartment for rent Ho Chi Minh city Apartment Total supply of apartments for rent, Q1/2015-Q4/2017 Typical projects under construction Source: VIRAC, VNREA Ongoing projects Number of apartments Completion time Location Source: VIRAC, VNREA 63

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Apartment for rent USD/m²/month Apartment rental prices by class, Q4/2016-Q4/2017 Source: VIRAC, VNREA 64

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Hotel market Hotel market Forecast: 65

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Hotel market Hotel market Hanoi With the increasing number of high-income tourists coming to Hanoi thanks to the exhibitions, conferences, etc, is the favorable conditions for the five-star hotel sector to occupy the hotel market. Room Hotel total supply, Q1/2015 - Q4/2017 Source: VIRAC, VNREA USD/room/night Rental price and capacity, Q1/2015-Q4/2017 Source: VIRAC, VNREA 66

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.1 Real estate for rent Hotel market Hotel market Ho Chi Minh city Hotel total supply, Q1/2015 Q4/2017 Room VND thousand/room/night Rental price and capacity, Q4/2017 Source: VIRAC, VNREA VND thousand/room/night Source: VIRAC, VNREA Average rental price and capacity, Q1/2015-Q4/2017 Source: VIRAC, VNREA 67

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Apartment for sale Apartment for sale Forecast: 68

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Apartment for sale Apartment for sale Hanoi The housing market has increased sharply since 2013. Thousand m² Housing supply in Hanoi, 2008-2017e Source: VIRAC, VNREA 69

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Apartment for sale Both primary and secondary market prices showed signs of a rise from 2014 to 2015 due to the recovery of the market. Price fluctuation of apartment for sale, Q1/2008 Q4/2017e Source: VIRAC, VNREA 70

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Apartment for sale Typical projects are open for sale in the last 6 months of 2017 Project Investor Location Completion time Number of Selling price Apartments (USD/m²) In the coming years, positive macroeconomic fundamentals will continue to drive the overall housing market as well as the condominium market. * Selling price does not include taxes and discounts. Source: VIRAC, VNREA 71

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Apartment for sale Apartment for sale Ho Chi Minh city Apartment New supply and number of apartments sold, 2010-2017e Source: VIRAC, VNREA 72

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Apartment for sale USD/m² Offer price for apartment in Ho Chi Minh City, Q1/2015 Q4/2017 USD/m² High-end apartment segment's price, 2010-2017e Source: VIRAC, VNREA Source: VIRAC, VNREA 73

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Apartment for sale Typical projects are open for sale in the last 6 months of 2017 Project Investor Location Completion time Number of apartme nts Selling price (USD/m²) * Selling price does not include taxes and discounts. Source: VIRAC, VNREA 74

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Apartment for sale If popular-segment customers mainly buy to stay, luxury-segment customers still mainly have money to buy for investment or wait for selling out. Not only in HCMC, here is the same situation in other provinces. Structure of buying houses by purpose in HCM, 2016 Lending rates of commercial banks, 2017 Source: VIRAC, VNREA Bank Interest rate(*) Maximum loan(**) Maximum repayment period (years) *First year interest rate ** Borrowing ratio on assets *** Per percentage of loan demand Source: VIRAC 75

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Villa and townhouse market Villa and townhouse market Forecast: 76

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Villa and townhouse market Villa and townhouse market - Hanoi Apartment Total villa/townhouse supply, Q1/2015-Q4/2017 Source: VIRAC, VNREA Price fluctuation of villas and townhouses, Q1/2014-Q4/2017 Source: VIRAC, VNREA 77

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Villa and townhouse market Typical projects are open for sale in the last 6 months of 2017 Project Investor Location Completion time Number of apartments Selling price (USD/m² ) * Selling price does not include taxes and discounts Source: VIRAC 78

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Villa and townhouse market Villa and townhouse market - Ho Chi Minh city Apartment Total villa/townhouse supply, Q1/2014-Q4/2017 Source: VIRAC, VNREA 79

3. Vietnam Real Estate Market 3.3 Movement of the real estate market - 3.3.2 Real estate for sale Villa and townhouse market Typical projects are open for sale in 2017 Project Investor Location Completion time Number of apartments Selling price (USD/m² ) * Selling price does not include taxes and discounts Source: VIRAC 80

3. Vietnam Real Estate Market 3.4 Risks and challenges 3.4.1 Risks The subjective risks from the investor side 82

3. Vietnam Real Estate Market 3.4 Risks and challenges 3.4.1 Risks Objective risks from macro elements 83

3. Vietnam Real Estate Market 3.4 Risks and challenges 3.4.1 Risks Objective risks from macro elements 84

3. Vietnam Real Estate Market 3.4 Risks and challenges 3.4.2 Challenges 20 cities with the highest average income per capita in 2016 in the world No. City, country name Country House price on income (times) House price on income in Vietnam, 2011 2016 Time Source: VIRAC, numbeo.com Source: VIRAC, numbeo.com 85

3. Vietnam Real Estate Market 3.4 Risks and challenges 3.4.2 Challenges In the period 2010-2012, the real estate market after a period of hot VND trillion development has fallen into a "frozen" situation. Stock value of real estate, 2013 12/2017 Source: VIRAC, MOC 86

3. Vietnam Real Estate Market 3.4 Risks and challenges 3.4.3 SWOT S W O T 87

3. Vietnam Real Estate Market 3.5 Planning On 11/30/2011, the Prime Minister approved and approved Decision No. 2127/QD-TTg on national housing development strategy to 2020 and vision to 2030: 89

3. Vietnam Real Estate Market 3.6 Driving forces Geographical location Vietnam Vietnam Area of land Area of sea Population (2016) GDP (2016) Income per capita (2016) GDP growth rate (2016) In South East Asia 91

3. Vietnam Real Estate Market 3.6 Driving forces Geographical location Population distribution in Vietnam 92

3. Vietnam Real Estate Market 3.6 Driving forces Infrastructure The cost of capital investment for infrastructure development is raised from public spending and foreign capital. Structure of investment costs for infrastructure development in GDP, 1995-2013 Source: VIRAC, MOT 93

3. Vietnam Real Estate Market 3.6 Driving forces Advantages of infrastructure and population Largest urban areas of Vietnam Estimated 2015 Rank City name Under Population (million people) Source: VIRAC 94

3. Vietnam Real Estate Market 3.6 Driving forces Urbanization rate and disposable income Level of urbanization, 2010-2017 Source: VIRAC, GSO Disposable income and household expenditures, 2008 2017f Source: VIRAC, GSO 95

3. Vietnam Real Estate Market 3.6 Driving forces Outstanding credit of real estate VND trillion Outstanding credit of Real estate, 2012-2017 Source: VIRAC, MOC Structure of real estate credit balance, 2017 Source: VIRAC, MOC 96

3. Vietnam Real Estate Market 3.6 Driving forces The development of the middle class and consumer confidence index Structure of population by stratification (expenditure), 2013 2020f Million people Source: VIRAC, BCG Source: VIRAC 97

3. Vietnam Real Estate Market 3.6 Driving forces Tourism potential Vietnam is one of the fastest growing travel destinations in Southeast Asia Million people Number of tourists, 2011-2017 Source: VIRAC, TCDL 98

3. Vietnam Real Estate Market 3.7 M&A trend 2017 is the year witnessed many large M&A transactions in the real estate market when many big investors believe to pour money into Vietnam. According to consulting firm, JLL Vietnam, the total value of real estate M&A last year amounted to USD 1.5 billion. Of which, there are five typical M & A deals:. 100

3. Vietnam Real Estate Market 3.7 M&A trend 101

Content 4. Enterprise analysis 102

3. Types of real estate Real estate enterprise analysis Vingroup - JSC Vinhomes Sky Lake, Pham Hung-Nam Tu Liem-Hanoi, Vingroup 100

3. Types of real estate Real estate enterprise analysis Overview of FLC Group: Five-star resort and golf complex Quy Nhon, Binh Dinh 104

3. Types of real estate Real estate enterprise analysis Kinh Bac City Development Corporation Que Vo Industrial Park, Que Vo District, Bac Ninh Province, KBC 105

3. Types of real estate Real estate enterprise analysis Nova Real Estate Investment Corporation: Residential project in Richstar, Tan Phu, HCMC, Novaland 106

3. Types of real estate Real estate enterprise analysis Khang Dien House Trading and Investment Joint Stock Company Lucasta Villa, District 9, Ho Chi Minh City 107

3. Types of real estate Real estate enterprise analysis Nam Long Investment Corporation Camellia and Ehome, Nam Long 108

3. Types of real estate Real estate enterprise analysis Phat Dat Real Estate Development Joint Stock Company Residential area of EverRich 2 (River City), District 7, HCMC, Phat Dat real estate development 109

3. Types of real estate Real estate enterprise analysis Quoc Cuong Gia Lai Joint Stock Company Quoc Cuong Gia Lai Residence 110

3. Types of real estate Real estate enterprise analysis Green Land Real Estate Group: Sunview Town Residence Dat Xanh Group 111

3. Types of real estate Real estate enterprise analysis Binh Duong Business and Development Joint Stock Company (TDC): TDC Plaza apartment building in Binh Duong, Hoa Phu, Thu Dau Mot, Binh Duong 112

3. Types of real estate Real estate enterprise analysis Overview of AEON Group and AEON MALL Vietnam Co., Ltd Major shopping centers of AEON in Vietnam Location Shopping center Floor square Total investment 113

3. Types of real estate Real estate enterprise analysis Overview of Lotte Group Hanoi Đà Nẵng Hoàng Sa Phú Quốc Hồ Chí Minh Cần Thơ Vũng Tàu Trường Sa 114

3. Types of real estate Real estate enterprise analysis MEGA MARKET VIET NAM COMPANY LIMITED (formerly METRO Cash & Carry VIETNAM) 115

3. Types of real estate Real estate enterprise analysis Overview of BIG C 116

3. Types of real estate Real estate enterprise analysis Vincom Retail Joint Stock Company: 117

3. Types of real estate Real estate enterprise analysis Vincom Plaza Shopping Center 118

3. Types of real estate Real estate enterprise analysis Sai Gon Co.op. Investment and Development Joint Stock Company 119

3. Types of real estate Real estate enterprise analysis SOME OUTSTANDING FOREIGN INVESTORS INVESTING REAL ESTATE PROJECTS IN VIETNAM Investor Project Status Total investment (USD million) In the North In the South Source: VIRAC 120

3. Types of real estate Real estate enterprise analysis TOP REAL ESTATE ENTERPRISES WITH HIGHEST REVENUE 2016 Enterprise Location Tax code Charter capital (VND million) Total assets (VND million) Net revenue (VND million) 121

3. Real estate enterprise analysis Target group of business results VND million Net revenue growth, 2015-2016 Source: VIRAC 122

3. Real estate enterprise analysis Target group of business results VND million Gross profit growth, 2015-2016 Source: VIRAC 123

3. Real estate enterprise analysis Target group of business results SE/NR, 2015-2016 Source: VIRAC 124

3. Real estate enterprise analysis Target group of business results G&AE/NR, 2015-2016 Source: VIRAC Content is intentionally removed for FE/NR, demo 2015-2016 purpose Source: VIRAC 125

3. Real estate enterprise analysis Financial indicators Account receivable turnover, 2015-2016 Source: VIRAC 126

3. Real estate enterprise analysis Financial indicators VIC NVL FLC KDH NLG DXG KBC QCG PDR TDC Industry average Current ratio Quick ratio Cash ratio Source: VIRAC Content VIC is intentionally NVL FLC KDH removed NLG DXG for KBCdemo QCG purpose PDR TDC Industry average Days in inventory Total asset turnover Fixed asset turnover Source: VIRAC 127

3. Real estate enterprise analysis Targets of business results ROA (%) ROE (%) ROS (%) Lợi nhuận sau thuế (tỷ đồng) Tỷ số Nợ trên tổng tài sản (%) Tỷ số nợ trên vốn chủ sở hữu (%) VIC NVL FLC KDH NLG DXG KBC QCG PDR TDC Industry average 128

3. Real estate enterprise analysis Retail enterprises Distribution of supermarkets in three regions in Vietnam, 2016 Retail market share in Vietnam in 2016 Source: VIRAC Source: VIRAC 129

Content 5. Appendix 130

Appendix Financial statements REPORT ON BUSINESS RESULTS Vingroup Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments Content is intentionally removed Selling expenses for demo purpose III. Short-term receivables 1. Customer receivables IV. Inventory B. NON-CURRENT ASSETS TOTAL ASSETS General and administrative expenses Net profit from business activities Gross accounting profit before tax Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 131

Appendix Financial statements REPORT ON BUSINESS RESULTS No-Va Real Estate Investment Corporation Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 132

Appendix Financial statements REPORT ON BUSINESS RESULTS FLC Group Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 133

Appendix Financial statements REPORT ON BUSINESS RESULTS Khang Dien Housing Investment & Trading JSC Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 134

Appendix Financial statements REPORT ON BUSINESS RESULTS Nam Long Investment JSC Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 135

Appendix Financial statements REPORT ON BUSINESS RESULTS Dat Xanh Real Estate Service & Construction JSC Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 136

Appendix Financial statements REPORT ON BUSINESS RESULTS Kinh Bac City Development Share Holding Corporation Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 137

Appendix Financial statements REPORT ON BUSINESS RESULTS Quoc Cuong Gia Lai Joint Stock Company Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 138

Appendix Financial statements REPORT ON BUSINESS RESULTS Phat Dat Real Estate Development JSC Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 139

Appendix Financial statements REPORT ON BUSINESS RESULTS Binh Duong Construction and Development JSC Unit: VND million 2015 2016 Net revenue BALANCE SHEET Cost of goods sold Unit: VND million 2015 2016 Gross profit A. CURRENT ASSETS Financial income Financial expenses I. Cash and cash equivalents Interest expenses II. Short-term financial investments III. Short-term receivables Selling expenses General and administrative expenses 1. Customer receivables Net profit from business activities IV. Inventory Gross accounting profit before tax B. NON-CURRENT ASSETS TOTAL ASSETS Current corporate income tax expense Deferred corporate income tax expenses Profit after tax A. LIABILITIES I. Short-term debt 1. Short-term debt and loan 2. Taxes and amounts payable to the state II. Long-term debt 1. Long-term debt and loan 2. Long-term provisions B. EQUITY TOTAL SOURCES STATEMENTS OF CASH FLOWS Unit: VND million 2015 2016 I. Cash flow from business activities Depreciation of fixed assets Unrealized foreign exchange gain/loss Net cash flows from operating activities II. Cash flow from investment activities Spending on procurement, construction of fixed assets and other non-current assets Net cash flows from investing activities III. Cash flow from financial activities Net cash flows from financing activities Effect of exchange rate difference in foreign currency Net cash flows during the year 140

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