MARKET REPORT consultancy

Q3 2023

Our Professionals Your Success

Content
Executive Summary 1
Part 1: Economic 3
GDP 3
FDI 4
CPI & Inflation 5
Trade Balance 5
Exchange Rate 6
Tourism 7
Part 2: Real Estate 10
Apartment 12
Ho Chi Minh City 12
Hanoi 13
Da Nang 14
Office 17
Ho Chi Minh City 16
Hanoi 17
Da Nang 18
Retail 20
Ho Chi Minh City 21
Hanoi 21
Hotel 24
Part 3: Legal 26
 Market Report | Q3 2023 Market Report | Q3 2023

Executive
Summary

GDP CPI Exchange Rate

Vietnam’s GDP growth rate reached 5.33%
YoY in Q3/2023 and 4.24% YoY in 9 months of
2023. This result was achieved thanks to the
implementation of governmental policies
aimed at providing support and removing
obstacles encountered by both enterprises
and individuals. TMS Consultancy
forecasted Vietnam’s GDP will reach 6% in
2023 and 6.5% in 2024.
In Q3/2023, the consumer price index On September 2023, the exchange rate USD/
increased by 2.89% YoY. In the 9 months VND reached 24,280, up 3.25% compared to
of 2023, CPI increased by 3.16% YoY; Core January 3, 2023. In general, the USD/VND
inflation increased by 4.49% YoY. In general, exchange rate in 9 months of 2023 fluctuated
the inflation rate is being controlled from VND 23,603 to VND 24,385. Following a
according to the scenario (4.5%) as expected relatively stable first half of the year, the USD/
has by the National Assembly in the Resolution VND exchange rate fluctuated significantly
on the socio-economic development plan in the third quarter, resulting in a nearly 800
in 2023. VND gain (+3.3% QoQ) over the previous three
months.

FDI Trade Balance Tourism

According to the Ministry of Planning In Q3/2023, export turnover is estimated at In Q3/2023, Vietnam’s domestic tourist arrivals

and Investment, Vietnam had 958 newly USD 94.6 billion, down 1.2 YoY and up 10.3% reached 29.5 million visitors, down 19.1%

registered projects (+58.9% YoY) with a total QoQ. Import turnover is estimated at USD QoQ, up 13.4% YoY. Besides, the number of

investment capital of more than 3.74 billion 86 billion, down 4.5% YoY and up 11% QoQ. international visitors to Vietnam reached 3.33

USD (+71.5% YoY) in Q3/2023. As of September Overall, in the first 9 months of 2023, export million, up 15.8% QoQ, up 162% YoY. In the first

20, 2023, the total newly registered capital, and import turnover of goods is estimated 9 months of 2023, Vietnam’s domestic and

adjusted and contributed capital to buy to reach 259.67 billion USD (-8.2% YoY) and international tourist arrivals are estimated to

shares, and buy contributed capital of foreign 237.99 billion USD (-13.8% YoY), respectively. reach 93.5 million (+7.71% YoY) and 8.9 million

investors reached roughly 20.21 billion USD (+374.4% YoY). Therefore, travel revenue is

(+7.7% YoY). estimated to reach 26.5 trillion VND, up 47.7%

YoY in the first 9 months of 2023.

1 2
 Market Report | Q3 2023
Part 1 GDP
Economic The world economy faces many challenges
In the first nine months of 2023, the global economy grapples
with challenges like weak consumer demand, surging
> GDP inflation, tightened monetary policies, mounting public debt,
geopolitical tensions, political instability, natural disasters, and
> FDI
climate change concerns. Esteemed organizations project
> CPI
global growth between 2.1% and 3.2% YoY. Southeast Asia’s
> TRADE BALANCE economic outlook, per the OECD’s September 2023 report,
> EXCHANGE RATE forecasts a 4.2% GDP growth in 2023, down 0.4 percentage
> TOURISM points from March. Leading this trajectory are Vietnam (5.8%)
and the Philippines (5.6%), with Indonesia (4.7%), Malaysia
(3.9%), Thailand (2.8%), and Singapore (1.4%) following.
Despite these challenges, ASEAN nations are expected
to rebound through increased government spending,
consumer consumption, and enhancements in the tourism
and commerce sectors.
Vietnam’s economy is currently showing signs of
improvement
In Q3/2023, Vietnam’s GDP growth rate reached 5.33% YoY.
In particular, the agricultural, forestry, and fisheries sector
had a growth rate of 3.43%; the industrial and construction
sector witnessed a growth rate of 2.41%. Notably, the service
sector exhibited a substantial growth rate of 6.32%, which is a
bright spot in Vietnam’s economic growth. Overall, in the first
9 months of 2023, Vietnam’s GDP growth rate was 4.24% YoY.
VIETNAM GDP GROWTH RATE BY QUARTER
2018-2024F
Source: GSO Vietnam & TMS Consultancy, Research
3 4
This result was achieved thanks to the implementation
of governmental policies aimed at providing support and
removing obstacles encountered by both enterprises and
individuals. Typical instances include loosening monetary
policy, reducing lending interest rates, implementing
credit packages to support businesses, reducing tax,
and extending tax payment deadlines. In addition, the
Government also endeavors to promote the disbursement
of public investment and carry out social security policies.
As of September 30, 2023, the disbursement of public
investment capital is about 363,310 billion VND, reaching
51.38% of the year plan. This is also the first year that the
disbursement of public investment capital in 9 months
exceeded 50%. The aforementioned factors together will
be also the main drivers for the prospective recovery and
robust Vietnam’s economic growth during Q4/2023 and
into 2024.
Hence, global economic organizations like the WB,
UOB, and ADP anticipate Vietnam’s GDP growth
rate to range from 4.7% to 5.8% in 2023 and from
5.5% to 6% in 2024. Additionally, TMS Consultancy has
forecasted Vietnam’s GDP will reach 6% in 2023 and
6.5% in 2024.
FDI
According to the Ministry of Planning and Investment,
Vietnam had 958 newly registered projects (+58.9% YoY)
with a total investment capital of more than 3.74 billion
USD (+71.5% YoY) in Q3/2023:
VIETNAM FDI INFLOW | 2018 - Q3 2023
Source: MPI Vietnam & TMS Consultancy, Research
Market Report | Q3 2023
As of September 20, 2023, the total newly registered
capital, adjusted and contributed capital to buy shares,
and buy contributed capital of foreign investors reached
roughly 20.21 billion USD (+7.7% YoY). In particular:
Newly registered capital: There were 2,254 new
projects granted Investment Registration Certificates
(+66.3% YoY), and total registered capital reached
more than 10.23 billion USD (+43.6% YoY).
Adjusted capital: There were 934 projects registered
to adjust investment capital (+21.5% YoY), and total
additional investment capital reached more than
5.15 billion USD (-37.3% YoY).
Capital contributions and share purchases: There
were 2,539 GVMCP transactions by foreign investors
(-5.9% YoY), and the total value of contributed capital
reached more than 4.82 billion USD (+47% YoY).
Foreign investors have invested in 18 industries out of 21
national economic sectors. Of which, the manufacturing
and processing industry ranked first with more than
14 billion USD, accounting for nearly 69.3% of the total
(+15.5% YoY). Then, the real estate sector attained the
second with a total investment of nearly 1.94 billion
USD, accounting for 9.58% of the total (-45% YoY). The
banking and finance, wholesale, and retail sectors were
positioned at the 3rd and 4th ranks, with total registered
capital of nearly 1.54 billion USD and nearly 734 million
USD, respectively. The rest are other industries.
VIETNAM FDI BY SECTOR | JAN - SEP 2023
Source: MPI Vietnam & TMS Consultancy, Research
 Market Report | Q3 2023
CPI & INFLATION
In Q3/2023, the consumer price index increased by
2.89% YoY. In the 9 months of 2023, CPI increased by
3.16% YoY; Core inflation increased by 4.49% YoY.
VIETNAM CPI | 2018 - 2023F
Source: GSO Vietnam & TMS Consultancy, Research
The average CPI in nine months of 2023 increased due
to a corresponding rise in the price of airplane ticket
prices (+71.56%), train ticket prices (+31.26%), passenger
car ticket prices (+8.33%); education (+7.28%); housing
and construction materials (+6.73%); food (+4.85%);
household electricity (+4.23%); beverages and tobacco
(+3.48%); other goods and services (+4.2%). In contrast,
there were a number of factors contributing to
restraining the CPI growth rate, such as domestic
gasoline price (-15.26%); domestic gas group price
(-10.21%); postal and telecommunications group prices
(-0.62%).
In general, the inflation rate is being controlled
according to the scenario (4.5%) as expected by the
National Assembly in the Resolution on the socio-
economic development plan in 2023. In the last 3
months of 2023, the inflation rate may be influenced by
several factors, as follows: Prices of goods and services
increase due to shopping demand during holidays;
Food prices rise due to natural disasters and epidemics.
However, declining global inflation aids Vietnam in
mitigating the impact of imported commodity prices,
thereby facilitating future inflation control.
Thus, TMS Consultancy forecasted that Vietnam’s
inflation rate will be approximately 4.5% in 2023
5 6
TRADE BALANCE
In Q3/2023, export turnover is estimated at USD 94.6
billion, down 1.2 YoY and up 10.3% QoQ. Import turnover
is estimated at USD 86 billion, down 4.5% YoY and up 11%
QoQ. Overall, in the first 9 months of 2023, export and
import turnover of goods is estimated to reach 259.67
billion USD (- 8.2% YoY) and 237.99 billion USD (-13.8%
YoY), respectively. The trade balance is estimated to
have a trade surplus of 21.68 billion USD (as well as the
same period last year, the trade surplus was 6.9 billion
USD). The United States remains Vietnam’s greatest
export market, with an estimated turnover of 70.9
billion USD. China maintains Vietnam’s greatest import
market with an estimated turnover of 79.1 billion USD.
VIETNAM TRADE BALANCE BY QUARTER
2018 - Q3 2023
Source: GSO Vietnam & TMS Consultancy, Research
The Ministry of Industry and Trade intends to implement
multiple strategies with the aim of boosting export
markets. These actions include:
• Promoting negotiations and signing of new
agreements, commitments, and trade links.
• Supporting businesses to take advantage of
commitments in FTA Agreements, especially the
CPTPP, EVFTA, and UKVFTA Agreements.
• Negotiating with China to establish additional
export markets for additional Vietnamese fruits
and vegetables, such as green grapefruit, fresh
coconut, avocado, pineapple, . . .
• Improving efficiency and regulating the speed of
customs clearance of import and export goods at
the border gate area between Vietnam and China.
Market Report | Q3 2023
EXCHANGE RATE
In September 2023, the exchange rate USD/ VND
reached 24,280, up 3.25% compared to January 3, 2023.
In general, the USD/VND exchange rate in 9 months of
2023 fluctuated from VND 23,603 to VND 24,385.
EXCHANGE RATE USD/VND | JAN - SEP 2023
Source: Investing & TMS Consultancy, Research
The State Bank reported on September 30, 2023, that
the central exchange rate of the Vietnamese Dong to
USD has increased by 1 VND, reaching 24,089 VND. In
contrast, the US Dollar Index (DXY), which measures the
performance of the dollar against six major currencies
(EUR, JPY, GBP, CAD, SEK, CHF), fell 0.05% to 106.17 in
the US market. Following a relatively stable first half
of the year, the USD/VND exchange rate fluctuated
significantly in the third quarter, resulting in a nearly
800 VND gain (+3.3% QoQ) over the previous three
months. Furthermore, the State Bank of Vietnam has
cut interest rates four times since the beginning of
the year, representing a 1.25 to 1.5 percentage point
reduction. In contrast, the Federal Reserve tightened
policy with four interest rate increases totaling one
percentage point. This difference in monetary policy
between the United States and Vietnam has been
identified as the key factor exerting pressure on
exchange rates in recent months.
 Market Report | Q3 2023 Market Report | Q3 2023

TOURISM
In Q3/2023, Vietnam’s domestic tourist arrivals reached 29.5 million visitors,
down 19.1% QoQ, up 13.4% YoY. Besides, the number of international visitors to
Vietnam reached 3.33 million, up 15.8% QoQ, up 162% YoY. In the first 9 months
of 2023, Vietnam’s domestic and international tourist arrivals are estimated to
reach 93.5 million (+7.71% YoY) and 8.9 million (+374.4% YoY). Therefore, travel
revenue is estimated to reach 26.5 trillion VND, up 47.7% YoY in the first 9
months of 2023. The observed development can be attributed to an increase
in tourism demand following a prolonged period of impact from the Covid-19
pandemic. Furthermore, local authorities have been actively implementing
various initiatives throughout the year to promote the demand for tourism.

VIETNAM TOURISM BY QUARTER | 2018 - Q3 2023

Source: GSO Vietnam & TMS Consultancy, Research

Among the countries coming to Vietnam, South Korea continues to be the

country with the largest number of tourists coming to Vietnam, estimated
at 2,584,840 visitors. Next is China with 1,122,572 visitors. Followed by Taiwan
(China) and the US with 575,101 visitors and 548,866 visitors.

INTERNATIONAL VISITORS TO VIETNAM BY COUNTRY

JAN - SEP 2023

Source: GSO Vietnam & TMS Consultancy, Research

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 Market Report | Q3 2023 Market Report | Q3 2023

Part 2: Real Estate

> Apartment: The beginning of 2023, the Government has been supporting the real estate. To
remove obstacles, the HCMC People’s Committee has tackled legal procedures for 148 projects,

39 projects have seen results. The State Bank of Vietnam has lowered interest rate and Circular

10 will bring greater access to capital for on-going projects.

> Office: In Q3/2023, stock increased by 3% QoQ and 4% YoY to 2.6 million sqm NLA with the entry
four projects in Ho Chi Minh City. Demand for green workplace is expected to increase in the

coming time.

> Retail: Lotte Mall West Lake Hanoi launched in September, 2023. This prestigious destination
has attracted 28 brands and the project was fully occupied when it opened.

> Hotel: Vietnam had 8.9 million international visitors in 9 months of 2023, increased by 400% YoY
and exceeded the 2023 target by 11%. The average rental price of hotel in HCMC, Hanoi, Da Nang

and some provinces/cities all increased by 2-5% YoY.

The performance of real estate sectors included apartment, office, retail and hotel in Q3/2023 is
shown below:

Average Asking Price/

No Item City Change
Rental Price

HCMC 2,900 USD/sqm 1.0% QoQ 4.0% YoY

1 Apartment Hanoi 2,290 USD/sqm 1.36% QoQ 0.7% YoY

Da Nang 2,280 USD/sqm 1.05% QoQ 1.12% YoY

HCMC 36.43 USD/sqm/month 0.15% QoQ 1.72% YoY

2 Office Hanoi 25.72 USD/sqm/month 4.0% QoQ 1.0% YoY

Da Nang 14.67 USD/sqm/month 0.3% QoQ 1.63% YoY

HCMC 102 USD/sqm/month 1.0% QoQ 4.0% YoY

3 Retail
Hanoi 74.7 USD/sqm/month 1.2% QoQ 4.6% YoY

HCMC 88 USD/room/night 1.4% QoQ 4% YoY

4 Hotel Hanoi 82.1 USD/room/night 1.2% QoQ 2% YoY

Da Nang 64.3 USD/room/night 1.4% QoQ 2.7% YoY

Source: TMS Consultancy, Research

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 Market Report | Q3 2023 Market Report | Q3 2023

APARTMENT

Ho Chi Minh City

Supply & Demand

Ho Chi Minh City’s real estate market had no sign of

outstanding growth in Q3/2023. Two new projects
and 6 next-phases entered over 2,500 units to the
market, a modest increase, were high-end and
mid-end segments. Thu Duc City led with 75% of
this new supply, with The Glory Heights (Vinhomes
Grand Park) accounting for 55%. Other new projects
in Binh Tan and Binh Chanh boosted the mid-end
market. Several developers implemented sales
policies, including interest and principal payment
support during initial periods, prolonging payment
schedules and rental commitment programs.
HCMC APARTMENT SUPPLY | Q3 2023
In Q3/2023, Ho Chi Minh city’s apartment asking price
was around 2,900 USD/sqm, decreased by 4% YoY.
The luxury, high-end and mid-end segments were
witnessed the decline of 5-7% YoY. The luxury segment
was around 6,400 USD/sqm, the high-end segment
was 2,500 USD/sqm and the mid-end segment was
1,500 USD/sqm. Moreover, the affordable segment fell
by 10% YoY, reaching about 900 USD/sqm. Selling price
in all segments decreased due to rising interest rates
and changing lending policies that changed buyer’s
behavior.
HCMC APARTMENT ASKING PRICE BY AREA
Q3 2023
Future Supply
According to TMS Consultancy, the outlook for
the Ho Chi Minh City apartment market indicates
a potential upswing in the next quarter. Based
on our collecting data, asking price increases
of 1% to 3% are likely. This forecast takes into
account market changes and upcoming policy
and lawmaking. These factors should lead
to a succession of favorable apartment price
increases, setting the way for a gradual market
warming after the second quarter of 2024. These
hopeful signals demonstrate Ho Chi Minh City’s
real estate sector’s durability and adaptability,
giving stakeholders a useful viewpoint as they
navigate this changing landscape

Over 1,500 new apartments will enter the Ho Chi Minh

City real estate market in the end of 2023. The luxury
segment is predicted to account for 5% of inbound
Source: TMS Consultancy, Research supplies, while high-end for 26%. The mid-end
segment is expected to lead with 69% of the market.
Ho Chi Minh City Apartment Performance
Notable upcoming apartment projects in Ho Chi
Source: TMS Consultancy, Research
HCMC APARTMENT AVERAGE ASKING PRICE Minh City as below:
Q3 2023
About area, the Eastern area continued to lead Ho Total
Project Name &
No. Developer Supply Segment
Chi Minh city’s apartment market, commanding an Location
(Unit)
average asking price of 3,500 USD/sqm, decreased by
2% YoY. Meanwhile, in the Southern area, the average Elysian Lo Lu - Thu
1 Gamuda Land 1,350 High-end
asking price averaged at 1,600 USD/sqm, decreased Duc City

by 2.2%. The Northern and Western areas exhibited

The Privia - Binh Tan Khang Dien
2 1,200 High-end
relatively consistent pricing, ranging from 1,000 to 1,100 District Home

USD/sqm. Avatar Thu Duc - Hung Thinh

3 2,366 High-end
Thu Duc City Group

Source: TMS Consultancy, Research

Source: TMS Consultancy, Research

11 12
 Market Report | Q3 2023
APARTMENT
Hanoi
Supply & Demand
During the Q3/2023, the real estate market in Hanoi
launched approximately 2,500 units, with a notable
emphasis on the high-end segment. Nevertheless, this
influx of supply remained somewhat subdued when
compared to the pre-epidemic levels. Several converging
factors contributed to this decrease in apartment supply
within the Hanoi market such as developers grappled
with the challenges of navigating more stringent
legal procedures, bank credit became increasingly
challenging and the scarcity of available land in the CBD.
HANOI APARTMENT SUPPLY | Q3 2023
Source: TMS Consultancy, Research
Hanoi Apartment Performance
In Q3/2023, average asking price in Hanoi reached 2,290
USD/sqm, up to 1% YoY. The average asking price of the
luxury segment was 4,500 USD/sqm, up 3.6% YoY. The
high-end segment reached 2,150 USD/sqm and the mid-
end segment averaged 1,570 USD/sqm, up 1% YoY. In
contrast, the affordable segment recorded decline of 7%,
with 960 USD/sqm.
HANOI APARTMENT AVERAGE ASKING PRICE | Q3 2023
Source: TMS Consultancy, Research
13
Market Report | Q3 2023
Da Nang
In Q3/2023, the average asking price for apartments in Hanoi Supply & Demand DA NANG APARTMENT AVERAGE ASKING PRICE
continued to uphold its regional leadership in the Northern BY DISTRICT | Q3 2023
In Q3/2023, Da Nang apartment market showed had a
area, with prices averaging approximately 2,580 USD/sqm. The
signal of new supply from Sun Cosmo Residences project.
Western and Eastern areas had average asking price ranging
The new supply of apartment in 7 months of 2023 reached
from 1,700 to 1,800 USD/sqm, whereas the Southern area
over 400 units. However, it’s quite low because developers
recorded notably more affordable prices, falling below the 1,200
face stricter real estate policies and rising mortgage rates
USD/sqm.
and consumer purchase behavior has also changed,
HANOI APARTMENT AVERAGE ASKING PRICE with more methodical and cautious considerations,
BY AREA | Q3 2023
compounding the apartment supply drop.
DA NANG APARTMENT SUPPLY | Q3 2023 Source: TMS Consultancy, Research
In Q3/2023, the real estate market in Da Nang presented
a mosaic of varying average asking prices across its
diverse districts. Notably, Hai Chau district emerged as
the market leader with an average asking price of 2,175
USD/sqm. It was closely followed by Ngu Hanh Son
and Son Tra districts, where apartments commanded
Source: TMS Consultancy, Research
Source: TMS Consultancy, Research average prices ranging from approximately 1,700 to 1,800
In the coming time, our TMS Consultancy forecast that Da Nang Apartment Performance USD/sqm. Furthermore, Lien Chieu, Cam Le, and Thanh
Hanoi’s apartment had an impending upward trend, Khe districts offered more budget-friendly options, with
DA NANG APARTMENT AVERAGE ASKING PRICE
with the potential for a slight increase of approximately prices falling within the range of 900 to 1,100 USD/sqm.
Q3 2023
1-2% in specific areas. Furthermore, the completion of
As we peer into the future, TMS Consultancy’s
Vinh Tuy bridge – phase 2 in Q3/2023 and Duong bridge
forecast for the condominium segment in Da Nang’s
in 2025 will support future supply and sales.
market hints at a slight increase of about 1-2% by
the end of 2023. These insights provide market
Future Supply participants with valuable district-specific pricing
dynamics, shedding light on the diversity within
At the end of 2023, there were about 2,200 units entering
the city’s real estate landscape. These observations
to Hanoi market, mainly the next phase of existing equip stakeholders with the information needed to
projects. By 2025, 51 projects will enter to market with make informed decisions within the ever-evolving
about 52,000 units. Source: TMS Consultancy, Research Da Nang real estate market.
In Q3/2023, Da Nang’s real estate market showed distinct Future Supply
Total
Project Name &
No. Developer Supply Segment trends. The average asking price for apartments was In Q4/2023, Danang will launch over 800 units to enter the
Location
(Units) apartment market, mainly Son Tra and Lien Chieu districts.
approximately 2,280 USD/sqm, up 1.12% YoY. The luxury
Vinhomes Ocean Total
1 Park (Zurich) - Gia
Mitsubishi &
2,200 High-end
segment experienced a rise to around 3,600 USD/sqm, Project Name &
No. Developer Supply Segment
Vingroup Location
Lam District increased by 9% YoY, while the high-end segment saw (units)
Masteri Waterfront modest growth to 2,000-2,200 USD/sqm (-1.6% YoY). In Sun Cosmo Residence -
Masterise 1 Sun Group 662 High-end
2 (Hawai - H1&H3) - Gia 1,071 High-end Son Tra District
Group contrast, the mid-end segment faced a downward trend,
Lam District Saigon -
averaging 1,300 USD/sqm (-3.6% YoY). These indicators The Ori Garden (Phase Da nang
Vinhomes Smart 2 270 Mid-end
City (The Canopy Vinhomes & reveal the varying dynamics within different segments, 2)- Lien Chieu District Investment
3 1,758 High-end Corp
Residence) - Nam Tu GIC
emphasizing the luxury segment’s rise, high-end segment’s
Liem District Source: TMS Consultancy, Research
resilience, and mid-end segment’s pressure.
Source: TMS Consultancy, Research
14
 Market Report | Q3 2023 Market Report | Q3 2023

OFFICE

Ho Chi Minh City

Supply & Demand

Looking ahead, TMS Consultancy anticipates a
Ho Chi Minh City’s office market grew and changed in
further 2-3% increase in the average asking rent
Q3/2023. Major growth occurred in Grade A office space,
for office spaces in Ho Chi Minh City in the near
adding over 93,000 square meters of NLA. The METT and
future, accompanied by a projected occupancy rate
The Hallmark, both Grade A projects, provided for 90% of
of around 85%. This development is expected to
the new supply and drove this increase. The remaining 10%
contribute to a narrowing of the gap between Grade
of new supply came from the CBD, where Grade B office
A office clusters, largely attributed to improvements
property The Waterfront Saigon completed renovations
in non-Central Business District (CBD) buildings.
and Grade C office building L’MAK The Signature entered
Furthermore, there is anticipated to be a noticeable
the market. These developments demonstrate Ho Chi
performance divide between older buildings and
Minh City’s office market’s vibrancy and growth potential,
newer LEED-certified projects, underscoring the
giving several options for enterprises seeking premier
growing importance of enhancing existing assets to
office space.
maintain competitiveness within the evolving office
Ho Chi Minh City Office Performance
market landscape.
The office market in Ho Chi Minh City exhibited
noteworthy trends and performance indicators Future Supply
during the third quarter of 2023. In this period, Notable upcoming office projects in Ho Chi Minh city
the average rental price for Grade A office spaces
Completion NLA
No Project Name Location Grade Status
reached 46.81 USD/sqm/month, marking a solid Year (sqm)

2.74% year-on-year increase. These Grade A offices The Sun Under

1 District 1 A 2024 87,000
maintained an occupancy rate of 82%. Meanwhile, Tower Construction

Grade B office buildings recorded rental prices 2 e.Town 6

Tan Binh
B 2024 35,000
Under
District Construction
averaging 26.06 USD/sqm/month, reflecting a more
D'. Saint Under
modest 0.7% YoY increase, yet boasting a robust 3 District 1 A 2025 12,000
Raffles Construction
occupancy rate of 94%.
UOA Tower
4 District 7 B 2026 45,800 Planning
II
HCMC OFFICE MARKET PERFORMANCE | Q3 2023
Source: TMS Consultancy, Research

Source: TMS Consultancy, Research

Source: TMS Consultancy, Research

15 16
 Market Report | Q3 2023 Market Report | Q3 2023

OFFICE

Hanoi
Supply & Demand
Over the past two years, the Grade A office market in
Hanoi grappled with a discernible shortage of new
office buildings, creating a gap in supply. However, in
Q3/2023, there was a welcomed addition of 23,000 sqm
NLA to the market from the Lotte Mall West Lake Hanoi
project, which provided a breath of fresh supply to the
market. It’s worth highlighting that the non-Central
Business District (CBD) market segment continued
to face challenges during this period, characterized by
a negative net absorption rate. These challenges can
be attributed to the heightened competition posed
by Grade B office buildings, which have been vying for
occupancy within this market segment. This dynamic
underscores the shifting landscape of Hanoi’s Grade
A office market, where new supply is being met with
Da Nang
Supply & Demand
In Q3/2023, the office market in Da Nang exhibited
encouraging signs of vitality as business activities
Looking ahead, TMS Consultancy projects a began to regain momentum. Despite the absence of TMS Consultancy expects Da Nang office rents
further 1-2% increase in the average rental price new office buildings introduced during this period, the to rise 1-2%. The developing market dynamics
of office spaces in the upcoming period. This and sector growth trajectory are included
city’s market showed signs of resilience and positive
forecast is primarily attributed to the rising costs in this estimate. As office space demand in
movement. While Da Nang’s growth may not be as
associated with construction and labor, which Danang changes, landlords may be able
robust as that witnessed in major metropolitan centers
continue to exert upward pressure on rental to proactively adjust rental pricing to stay
like Ho Chi Minh City and Hanoi, the slight increase in
rates. Additionally, tenants are increasingly competitive and recruit tenants. These tips
net absorption reflects a notable uptick in demand
displaying a preference for LEED-certified
for office spaces. These developments highlight the help owners and tenants navigate Da Nang’s
buildings, demonstrating a willingness to
city’s potential as a growing business hub within the changing office market.
pay higher rental prices for office spaces that
prioritize sustainability and environmental region, and they serve as an encouraging indicator
considerations. for stakeholders looking to invest in or lease office
properties in Da Nang.

varying levels of demand in different segments. Future Supply

Da Nang Office Performance
Hanoi Office Performance Future Supply Da Nang’s office market showed rental pricing and Notable upcoming office projects in Da Nang
In Q3/2023, Hanoi’s office market revealed distinct trends occupancy trends in Q3/2023. The average rental price
Notable upcoming office projects in Hanoi NLA
No Project Name Location Grade Status
in rental pricing and occupancy rates. The average for Grade A office space was 17.86 USD/sqm/month, up (sqm)

rental price for Grade A office spaces in the city reached Completion NLA 1% YoY. Grade A buildings had an 82% occupancy rate Risemount Sky Thanh Khe Under
No Project Name Location Grade
(sqm)
Status 1 A 11,000
33.91 USD/sqm/month, signaling a notable year-on- Year Tower District Construction
despite rise of Grade A’s rental price. Grade B office
year decline of 4%. Despite this price decrease, Grade A Dong Da Under buildings saw a 2.36% YoY increase in rental price to 11.5
1 36 Cat Linh A Q4/2023 14,000
The One Hai Chau
2 B 25,000 Planning
buildings boasted a commendable occupancy rate of District Construction USD/sqm/month. Impressively, Grade B buildings have Danang District

85%. Conversely, Grade B office buildings experienced a 87% occupancy.

Taisei Hanoi Cau Giay Under Hai Chau
different trajectory, with an average rental price of 17.53 2 A Q2/2024 22,500 3 Viettel Building A N/A Planning
District
Office Tower District Construction
DA NANG OFFICE MARKET PERFORMANCE
USD/sqm/month, reflecting a modest 2% year-on-year
Source: TMS Consultancy, Research Q3 2023 Source: TMS Consultancy, Research
growth, while maintaining an occupancy rate of 80%.
HANOI OFFICE MARKET PERFORMANCE | Q3 2023

Source: TMS Consultancy, Research

Source: TMS Consultancy, Research

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 Market Report | Q3 2023 Market Report | Q3 2023

RETAIL

In Q3/2023, Vietnam’s retail sales of goods and services reached 1,550.2 trillion VND, up
7.3% YoY. Of which, accommodation and food service increased by 16% and travelling
service increased by 47.7%. Of which, the cultural and educational products group
increased by 12.8%; food and food products increased by 11.4%; household, tools, and
equipment increased by 4.9%. Besides, retail sales of goods in the first 9 months of
2023 compared to the same period last year of some localities are as follows: Hai Phong
increased by 11.9%; Quang Ninh increased by 10.9%; Dong Nai increased by 9.9%; Binh
Duong increased by 9.0%; Khanh Hoa increased by 8.7%; Can Tho increased by 8.2%; Da
Nang increased by 5.2%; Hanoi increased by 4.8%; Ho Chi Minh City increased by 3.9%.

RETAIL SALES OF GOODS AND SERVICES | Q3 2023

Source: GSO Vietnam & TMS Consultancy Research

19 20
 Market Report | Q3 2023 Market Report | Q3 2023

RETAIL

Ho Chi Minh City

In Q3/2023, there were approximately 3,700 sqm NLA of
shopping centers stock, converted into offices and nearly
600 sqm NLA of retail podium stock was put on sale.
Moreover, Ho Chi Minh city launched to an innovation
project from the non-CBD, Hung Vuong Plaza (District
5).
In Ho Chi Minh City’s office rental market, the average
the city’s status as a thriving business hub, attracting
local and international companies. As demand continues
to rise, the office rental market in Ho Chi Minh City
is expected to remain robust, presenting promising
opportunities for investors and businesses.
HCMC RETAIL MARKET PERFORMANCE | Q2 2023

CBD area rent reached 162 USD/sqm/month, with

a notable 5% YoY increase. The non-CBD area saw
significant growth, with an average rent of 42 USD/sqm/
month, reflecting an approximate 8% YoY increase. The
high occupancy rates of 93% in the CBD and 84% in
the non-CBD areas indicate strong demand for office
spaces. This positive market performance underscores
Hanoi
The stock of over 1.5 million sqm NLA increased by 2% QoQ
and 4% YoY with the entry of Lotte Mall West Lake Hanoi
with 72,000 sqm NLA.
In the retail rental market, Hanoi’s Central Business District
Source: TMS Consultancy, Research
Future Supply
rental rates and occupancy rates between the CBD
In Q4/2023, there are over 20,000 sqm NLA in Hanoi and over 80,000 sqm NLA in Ho Chi Minh
and non-CBD areas, both Hanoi and Ho Chi Minh
city, entering to retail market. Furthermore, Vivo City, Giga Mall and Vincom 3/2 will renovate
City continue to be attractive hubs for retail ventures,
and alter their tenant mix to renew their retail cycles
showcasing the resilience and dynamism of Vietnam’s

(CBD) area registered an average rent of 119 USD /sqm/ retail rental market. No. Project Name Location NLA (sqm) Year of completion

month, marking a noteworthy 5% YoY increase. On the HANOI RETAIL MARKET PERFORMANCE | Q3 2023 Ho Chi Minh City
other hand, the non-CBD area reported a more moderate 1 Vincom Megamall Grand Park Thu Duc City 45,000 2024
average rent of 30.5 USD/sqm/month, reflecting an 8% YoY
2 Satra Mall (Centre Mall) District 6 29,161 2023
growth. Hanoi’s overall occupancy rate, while slightly lower
3 Sun Tower District 1 20,000 2024
than that of Ho Chi Minh City, remained robust at 90%, Hanoi
while Ho Chi Minh City boasted an 83% occupancy rate. 4 Aeon Mall Hoang Mai Thanh Xuan District 84,000 2024
These figures underscore the strong demand for retail 5 Taisei Hanoi Office Tower Cau Giay District 17,200 2024

spaces in both cities, with businesses and retailers seeking Source: TMS Consultancy, Research
opportunities to establish and expand their presence in
these thriving urban centers. Despite the differences in Source: TMS Consultancy, Research
21 22
 Market Report | Q3 2023 Market Report | Q3 2023

HOTEL

In Q3/2023, several provinces in Vietnam experienced incremental increases in hotel rental

rates, with growth ranging from 1% to 4% QoQ and 3% to 7% YoY. In Ho Chi Minh City, the
country’s premier destination, the average hotel rental rate reached 88 USD/room/night,
reflecting a noteworthy 4% YoY increase, alongside a robust occupancy rate exceeding 80%.
Similarly, in Hanoi, the average rental rate reached nearly 82.1 USD/room/night, indicating a
steady 2% YoY increase, with a comparable high occupancy rate. Provinces and tourist cities
such as Da Nang, Nha Trang, Binh Thuan, Phu Quoc, and Vung Tau all recorded YoY increases
in hotel rents of approximately 2% to 4%, with occupancy rates comfortably exceeding 50%.
Meanwhile, Quang Ninh and Can Tho posted rental rates of approximately 48 USD/room/night,
experiencing modest YoY increases of around 1%, and occupancy rates hovering over 30%.

HOTEL PERFORMANCE BY CITIES | Q3 2023

Source: TMS Consultancy, Research

According to TMS Consultancy, the trajectory for hotel rental rates is expected
to maintain an upward trajectory, with anticipated increases of about 1% to 3%
in Q4/2023, primarily in provinces such as Da Nang, Nha Trang, Binh Thuan, Phu
Quoc, and Vung Tau. This projection coincides with an expansion in the supply
of hotel rooms in various provinces. In Ho Chi Minh City, for instance, more than
2,500 rooms from renowned brands like Fusion, Hilton, and InterContinental are
slated to be added by the end of 2023. Looking ahead, Hanoi is poised to welcome
approximately 2,400 new rooms to the market by 2025, while Da Nang is gearing up
for a substantial influx of over 7,500 new hotel rooms, underscoring the continuous
growth and development of Vietnam’s hospitality sector.

23 24
 Market Report | Q3 2023 Market Report | Q3 2023

Part 3: Legal

In Clause 4, Article 1 of Decree 10/2023/ND-CP, Clause 5, Article 32, has

been added to Decree 43/2014/ND-CP. Accordingly, from May 20, 2023,

regulations on certification of ownership of construction works used

for tourist accommodation purposes in accordance with the law on

tourism on commercial and service land will be as follows:

For construction works used for the purpose of tourist accommodation

according to the provisions of the law on tourism on commercial and

service land, if the conditions are satisfied as prescribed by the law on

land, the law on construction, and the law on real estate business, the

right to ownership of construction works attached to land may be

certified according to the purpose of commercial and service land use

as prescribed in Clause 3, Article 126, Clause 1, and Article 128 of the 2013

Land Law.

Owners of construction works are responsible before the law for their

satisfaction of conditions as prescribed by the law on construction and

the law on real estate business.

The certification of ownership of construction works shall comply with

the provisions of Clauses 1, 2, 3, and 4 of Article 32 of Decree 43/2014/ND-

CP. The presentation of information about the land plot on the certificate

must be in accordance with the purpose and duration of land use as

prescribed by law.

In addition, a condotel project that is used for tourist accommodation

purposes in accordance with the law on tourism on commercial and

service land, if it meets all the conditions prescribed by law, will be certified.

ownership of construction works attached to land for commercial or

service land use purposes. The new land policy in Decree 10/2023/ND-CP

will take effect on May 20, 2023.

25 26
Note: The property market research contained is verified to the best of TMS
Consultancy’s abilities. TMS Consultancy reports reflect an overview of the
current property market and are indicative research only. TMS Consultancy
does not guarantee the accuracy of research and forecasts contained herein.
TMS Consultancy does not accept any responsibility for losses arising from
reliance on the research and forecasting. TMS Consultancy recommends that
the reader obtain a detailed market study of the specific sector of interest
should a deeper understanding of the market be required.

MARKET
REPORT
Q3 | 2023

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