Construction & Real Estate
From The Report: Vietnam 2017
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After a series of lacklustre years between 2011 and 2014, the construction market has picked up considerably and will expand on the back of increasing residential demand and infrastructure needs. A key factor that will drive demand for further housing construction is the amended Housing Law and the Law on Real Estate Business, both passed in 2014 to remove restrictions on foreign ownership of residential and commercial properties. Meanwhile, among the local population, a growing young and middle class is expected to push up demand for quality homes and investment-grade offices.

This chapter contains an interview with Le Viet Hai, Chairman and General Director, Hoa Binh Construction Company.

Articles from this Chapter

Overview

Building up: New regulations and a series of major infrastructure projects have brought clarity and optimism to the sector
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There is certainly no shortage of work for companies in construction-related industries as Vietnam has continued to enjoy stable economic growth, a recovering real estate market and a steady stream of foreign direct investment. With upcoming free trade agreements and demand for infrastructure development continuing to rise, the future, at least in the short to medium terms, looks good. Indeed, the industry is expected to stay on course in the following years after entering a growth cycle in 2015.…

Overview

Return to form: The sector continues to reap benefits of a growing middle class and rapid urbanisation
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After a four-year-long freeze, the Vietnamese real estate market is now entering its recovery phase. The market had reached its peak in 2009 but started to drop off the following year and had entered a cooling period until 2014. The cycle that began before the downturn was marked by a large stream of supply, particularly apartments, which had flooded the market in a relatively short period of time. As the market became increasingly frothy, the government started to clamp down on bank lending, and…

Interview

Stronger foundations: Le Viet Hai, Chairman and General Director, Hoa Binh Construction Company, on greater participation in the real estate market from low- and middle-income groups
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Interview: Le Viet Hai What impact will efforts to develop the affordable housing market have in the medium term? LE VIET HAI: At the start of 2013 the government launched a VND30trn ($1.3bn) loan programme for affordable housing projects, helping low- to middle-income earners finance affordable property purchases. The purpose of this strategy is to mitigate the apparent oversupply in the luxury segment and the shortage of products in the affordable segment for people in the low- to middle-income…

Analysis

It starts at home: Local purchasing drives growth in the property market
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After the last downturn in the real estate market, things have picked up considerably in Vietnam. This is especially true in terms of access to financing. As commercial lending has resumed, mortgages have been more widely available, while foreign purchasers are no longer barred from buying properties after regulatory changes were enacted to allow foreigners to buy up to 30% of any condominium building or a maximum of 250 houses in any administrative ward. Driving Growth The country’s macro indicators…