KNOWLEDGE REPORT | 3Q 2014 | HCMC | INDUSTRIAL

Research &

HCMC | Industrial

Forecast Report

Accelerating success

VIETNAM 3Q14 Y-O-Y 4Q14FGDP Growth 6.19% 0.7%

Total Registered FDI (US$ billion) 4.33 -4%

Exports (US$ billion) 38.7 12.5%

Imports (US$ billion) 37.6 13.6%

CPI 4.3% -2.7%

Total retail sales (VND billion) 706.5 11.1%

International Visitors (million) 1.05 16.0%

Base Rate 9% 0.0%

Exchange Rate (US$) 21,246 -0.9%

VN-Index 630.34 24.9%

Gold Price (VND million/ tael) 35.9 -6.51%

Stable market performance

Last quarter saw no new supply to HCMC industrial market.

Both market average rental and occupancy rate are stable

during 3Q14 and expected to remain unchanged till the end

of this year.

The average rent for Read-built-factory and warehouse within

industrial parks also stayed in a range of US$2-4 per sq. m per

month regarding customer’s request of standard.

The market capitalization has been flat since the early of

2014 given moderate demand of industrial land acquisition.

OneHub Saigon hi-tech complex @ Saigon Hi-tech Park

This is expected to be a business and commercial complex in the East of HCMC

Industrial land is utilised for better functional products

VIETNAM | 3Q14 | ECONOMIC UPDATE

Followed the development of Viet Pan Techno Park

within Hiep Phuoc Industrial Park in the first quarter of

this year, the market welcomed OneHub Saigon complex

in District 9 during last quarter.

Located within Saigon Hi-tech Park compound, the

US$130-million project will be a commercial and industrial

hub with variable choices of product for tenants. Developed

by joint venture between Singaporean-based Ascendas and

Saigon Bund Capital Partners, this first OneHub in Vietnam

is expected to be well absorpted given successful models

from India and China market.

Source: OneHub Ssigon

Foreign investors provide diversity of industrial products

3Q 2014

KNOWLEDGE REPORT | 3Q 2014 | HCMC | INDUSTRIAL

Colliers InternationalHo Chi Minh CityBitexco Office Building, 7th Floor19-25 Nguyen Hue StreetDistrict 1, HCM City, VietnamTel: + 84 8 3827 5665 

Accelerating success

QUANG NGUYENResearch Managerquang.nguyen@colliers.com+84 938 056 603

YEN NGUYENResearch Analystyen.nguyen@colliers.com+84 915 478 778

www.colliers.com/vietnam

Copyright © 2014 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the materials contained in this report.

Publication Coverage Frequency Availability

Research & Forecast Report

Vietnam Cities Quarterly Publicly available

CBD Report HCMC CBD Monthly Publicly available

Asia Pacific Office Report

Asia Pacific in-cluding Vietnam

Quarterly Publicly available

Vietnam Property Market Report

Vietnam cities Quarterly On subscription

Development Recommendation

Vietnam cities At request On subscription

Authors:

No Name of Development LocationArea

(hecta)Warehouse

Rental*Occupancy Rate

1 Tan Binh Tan Binh + Tan Phu District 128 3-4 100%

2 Linh Trung 1 Thu Duc District 62 3-4 100%

3 Tan Tao Binh Chanh District 380 3 87.7%

4 Tan Thuan District 7 300 5 81%

5 Le Minh Xuan Binh Chanh District 100 3.5 100%

6 Vinh Loc Binh Chanh District 203 3-4 100%

7 Cu Chi Western North Cu Chi District 208 2-3 100%

8 Hien Phuoc 1 Nha Be District 311 3-4 92%

9 Cat Lai 2 District 2 124 3.5 89%

* US$/ sq. m/ month

Colliers ViewGenerally, typical investment in Vietnam and particularly HCMC industrial property market is commonly through occupying land

parcel on a long-term lease and constructing facilities. Regarding the ready-built factory and warehouse segment, the developers

normally provide small-sized facilities at 1,000-2,000sq. m while larger spaces are available upon request. Given foreseen increasing

demand for this segment, foreign investors has been proactive in offering better functional industrial property products for tenants

such as high standard factory/ warehouse and industrial complex.

Viet-Pan Techno Park is a 13-hectare development that provides full facilities and services for supporting industry manufacturers,

priotirised for those from Japan. The target tenants of this compound are production as well as service-providers vendors involve

in intermediate and capital goods who do not want to invest too much capital in assets.

On the other hand, implemented by Ascendas, Onehub Saigon will be an urban complex that follows regional and international

development trends of fully-finished manufacturing and office spaces.

These modern-style developments are expected to encourage a new trend of industrial investment that enhance the growth of

local market.