| Volume # 153 |
|
|
Corporate Real Estate Advisors l Atlanta
|
|
Ho Chi Minh, Vietnam
 Ho Chi Minh City and its Commercial Real Estate Market are unique in many respects. Did You Know… · Ho Chi Minh City is the largest city in Vietnam with about 7.4% of the country’s population residing here. Located in Southeastern Asia with the South China Sea bordering its eastern coast, Ho Chi Minh City lies along the Saigon River to the north of the Mekong River delta in Southern Vietnam. · Formerly known as Saigon, the city was once the capital of the French protectorate of Cochin-China (1862–1954) and of South Vietnam (1954–75) until it merged with the surrounding province of Gia ??nh in 1976. It was then renamed Ho Chi Minh City after the revolutionary leader and North Vietnamese president, Ho Chi Minh, meaning “he who enlightens." · With over 60% of the population of working age, Vietnam’s demographic workforce is more attractive than India and China. The working population is highly literate, hard-working, consumer orientated, and highly motivated with a median age of 26 years old. · In 2007, the Vietnam economy grew 8.5%. With the government committing to economic liberalization and international integration since 2001, Vietnam has become members of the ASEAN Free Trade Area and US-Vietnam Bilateral Trade Agreement. Since the US-Vietnam Agreement in 2001, Vietnam’s exports to the US have increased to 900% . · Ho Chi Minh City’s Decree 84 is an amendment that gives land regulation rights to property owners; giving owners long and stable basis for 70 years. This also allows the Government to assume responsibility of land clearance to transfer the land to investors to speed up the development process. · Since 2004, the Vietnam Retail Market has become very attractive to foreign investors with their young population and growing disposable income. It now outranks China amongst the world’s top 10 countries for retail in 2006. Yet, being one of the fastest growing economies in Asia with half of their population of 86 million people under the age of 25, Vietnam labor has yet to reach the peak of its potential. · Vietnam has over 90 industrial parks in operation and employs nearly 1 million people with a majority of them residing within Ho Chi Minh City’s radius. These multinational corporations like Intel and Foxconn, who invest billions of dollars into the economy, account for about 60% of the total FDI. · With an average GDP growth of 6.8% per year since 1997, Vietnam is undersupplied with office, residential, and industrial rentals due to the increasingly high demand of foreign investors. A large number of complexes are currently under construction and are expected to open in 2009 to offer an estimated 1.6 million square feet of office space in Ho Chi Minh City. · Ho Chi Minh’s extraordinary economic growth and urbanization led to a 94.4% growth rate in its occupancy costs from 2007 to 2008. With the increasing demand for office space, vacancy rates in grade A and B office space remain limited even after expansions. Stock deficiencies and price hikes have led some companies to consider alternative solutions; decentralize into outer CBD areas and secure space earlier or secure space en masse. |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Real Estate Services provided by the ITRA and AsiaPac International Partnership |
| To remove your name from our mailing list, please contact sholcombe@itraglobal.com or call us at 1.404.816.2200 |
