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Bank tickers will remain in the spotlight, with investors racing to capitalise on bright profit prospects.

A new Law on Land is needed, but it could take a good three years for a new itineration. Photo: Le Toan

According to previous proposals, the Law on Land 2013 was to be revised at some point after the 13th National Party Congress. A new law was to be considered within the year, with the National Assembly able to discuss the revised draft by the end of 2022. If all goes to plan, the revised law would then need at least three years before being approved.

Simultaneously, and with the party congress now in the rear view mirror and a new government in the process of taking the reins, a summary report of the implementation of the 2013 land law is being led by the Ministry of Natural Resources and Environment (MoNRE), involving every ministry and local authority. The summary report will be sent to the government and submitted to the National Assembly in the second quarter of 2023 the latest.

According to Dang Hung Vo, former deputy minister of Natural Resources and Environment, the current Law on Land contains conflicts with many other laws such as those on housing, real estate business, forestry, zoning, and public asset management.

“The overlap among those laws is the main reason for limiting the new supply for the real estate market as demand continuously increases. This leads to rocketing price increases and speculation which makes the market unstable,” Vo said.

Meanwhile, the weakness of the current Law on Land has also created struggles for administrative policies and implementation of land issues, especially in compensation.

Talking with VIR, Lim Hua Tiong, CEO of Frasers Property Vietnam expressed that a revised land law is necessary to enhance the flow of foreign investment to Vietnam – and that means a law with shorter processes, clearer and less complicated regulations, and elimination of conflicts with other laws that would all help investors make faster decisions and open up major chances for their success in Vietnam.

“It must offer equal opportunities for Vietnamese and foreign investors by enabling and granting overseas investors the right to directly obtain land use rights for the purposes of land bank development for new project establishment,” said Lim.

He added that any revised land law should clarify the measurement of public land, which can be directly allocated/leased to the investor without public auction. “This may shorten the time of the land allocation process and project implementation, respectively,” he added.

One official from the MoNRE noted that the revision of the land law must clarify details and remove unfairness for related parties in inheriting profits brought about by investment in land. Especially, the financial framework for land use which includes land leasing rents must be more relevant to the realities of the market.

“Moreover, the current Law on Land fails to mention many new types of real estate products such as condotels, officetels, or shophouses so a revised one is in need to deal with those products,” said the official.

According to Dang Minh Duc, director of Dong Nai Department of Natural Resources and Environment, a new law must take into account the current land status of localities.

“The revised Law on Land should clearly regulate the process of appraisal and land use right auction, and the calculation of the value for land compensation. These issues are seriously impacting the implementation of many projects in Dong Nai province,” Duc said.

The MoNRE has revealed that key issues to be considered in the revised land law include the expansion of quotas for agricultural land use of individuals and households; and management of rice land and especially land collection methods for the development of socio-economy of localities.

Also in the frame for a revamp included are taxation policies on agricultural land provided to households and enterprises that are left unused, as well as how to harmonise the rights between foreign enterprises and the government, while avoiding the impacts to the country’s security but ensuring a solid investment environment for overseas investors.

Lim Hua Tiong – CEO, Frasers Property Vietnam Under the current land law, a foreign-owned entity does not have the right to directly obtain land use rights from other land users. This prevents a foreign-owned entity from developing a land bank for new projects. Within a project area, there are several parcels managed by the state such as land with rivers, streams, canals, springs, and special-use water surface. There has not been any obvious regulation to specify the measurement of public land, which can be directly allocated/leased to the investor without public auction. This prolongs the project land allocation process and adversely affects the investor, as they cannot carry out the next investment steps without such land allocation. For project implementation, developers must go through many complicated steps which can take up two years to fully process. In a real situation, many projects take 3-5 years for legal approval. This prevents developers from market advantages because of delayed launch timelines. Also, the inconsistent application of land use fee calculation is a big trouble for real estate developing, not only for foreign investors but also Vietnamese ones which continues to create many disputes. Peter Dinning – Chairman, Colliers International Vietnam has made tremendous advances within the real estate sector including the rights of ownership and the rights to occupy, but we have seen many examples when land has been taken away at below the market value. This leaves the owner in a worse position than they were in before the land is taken away. Further advances in creating a fair system to value property are required to create a more international-standard real estate market. Real estate in Vietnam is still in its infancy and while it is a driver for the economy, real risks are still associated with owning and occupying land. International investors would like to see a system which protects land and property ownership and in the event that for whatever reason it is taken away, a true open market value is paid by compensation. In the UK we have a dedicated department called the Valuation Office whose duty is to protect the rights of the individual when a property is taken away. There is a proper right to appeal and valuation tribunals are available for anyone who disputes the compensation that a developer and or an authority wishes to pay to take over your land. Alain Cany – Chairman, European Chamber of Commerce in Vietnam European enterprises are keen to invest and expand further their business operations and new projects. To capitalise on this trend, the government could enhance the legal framework and cut administrative procedures on land to unlock the full potential of European investment. For instance, reducing the time to complete the investment registration process would be welcome, as would making the procedures for acquiring land clearer and more transparent. Enabling foreign investors to borrow from international lenders would also be a positive step, rather than limiting mortgages just to banks. We have seen some positive developments in the last few months alone. For instance, Decree No.148/2020/ND-CP – in particular its provisions on land lease for small state-owned land parcels – should help to clear one of the bottlenecks for investors whose developments have been on hold for some time. This, in turn, should restore the land fund for project development and create more opportunities for local and foreign enterprises. We encourage the government to build on this success. For instance, a definition of “foreign-invested enterprises” aligned with the new Law on Investment would be a good step, as current inconsistencies create difficulties.

Sustainable bonds are considered as an effective capital mobilization channel from the private sector for environmental and social projects.

The State Securities Commission of Vietnam (SSC) has launched a manual providing instruction on green, social and sustainability bonds.

Green bonds would help accelerate sustainable development in Vietnam. Source: World Bank/jamesteoh

The manual came from the cooperation among the SSC, Climate Bond Initiative (CBI), and Swiss State Secretariat for Economic Affairs (SECO), with the aim of providing guidelines for issuers and market participants to adopt regional, international and Vietnamese standards on green, social and sustainability bonds – or sustainable bonds, collectively.

“Those sustainable bonds are considered an effective capital mobilization channel from the private sector for environmental and social projects, which in turn support the realization of sustainable development goals and the 2015 Paris Climate Accord,” stated the SSC.

“As a member of the ASEAN Capital Markets Forum (ACMF), the SSC has been actively involving in the promotion of the ASEAN Green Bond Standards (AGBS), ASEAN Sustainability Bond Standards (ASUS), which are based on the International Capital Market Association (ICMA)’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines, with an aim to form sustainable assets in Vietnam,” added the stock market watchdog.

SSC’s Vice Chairman Pham Hong Son expected the manual to help local investors better understand international practices on the issuance and management of capital for green projects, as well as disclosing information on the social and environmental aspects of each enterprises.

“Such step is important to promote sustainable development in each enterprise and contribute to support long-term growth of the stock market via the development of green products,” he added.

IFC Regional Manager for Vietnam, Cambodia, and Laos Kyle Kelhofer added the agency is looking for opportunity to join Vietnam’s potential green bond market in the coming time.

Kelhofer added the IFC expects green bond would open up opportunities for further fund raising for infrastructure and renewable projects, which are finding it hard to raise funds via traditional financial instruments.

The issuance of green bonds would help accelerate Vietnam’s efforts towards green and sustainable development, said Kelhofer.

A study from Moody’s suggests global issuance of sustainable bonds will hit a record $650 billion in 2021, a 32% increase over the $491 billion issued in 2020. Of the total, US$375 billion would come from green bonds, US$150 billion from social bonds and US$125 billion of sustainability bonds. Sustainability-linked bonds have strong growth potential, as they allow issuers to maintain the flexibility of general corporate purposes borrowing while potentially still appealing to sustainability-minded investors. Meanwhile, governmental policy will further support sustainable debt market growth and development in the year ahead, as governments around the world heighten their focus on climate change and link economic recovery plans with sustainable development goals, stated the rating agency.

Hai, who is also Chairman of the NA’s Finance and Budget Committee and a member of the National Election Council (NEC), asked the province to continue its communications efforts, particularly in remote and ethnic minority-inhabited areas.

Priority should be given to increasing IT application and training personnel for the task, intensifying inspections, and encouraging people to vote, he added.

Vice Secretary of the provincial Party Committee and Chairman of the provincial People’s Committee Tran Huy Tuan said that as of April 12, Yen Bai had organised a total of 1,306 conferences to collect feedback from constituents on candidates for the elections in their constituencies.

Also head of the provincial election committee, Tuan said Yen Bai has nearly 600,000 constituents.

The province has held its third political consultative conference, agreeing on a list of eight and 97 candidates for election as deputies to the 15th NA and members of all-level People’s Councils for 2021-2026, respectively.

Source: VNA

Q2 Thao Dien will be put into operation this April

Developed by Frasers Property Vietnam in partnership with An Duong Thao Dien Real Estate Trade JSC, Q2 Thao Dien is developed under the unique “Live – Work – Enjoy” concept with a variety of products including apartments, villas, townhouses, commercial shops, and office building, offering a diverse range of options for residents and investors.

According to Truong An Duong, general manager of residential, Frasers Property Vietnam, Q2 Thao Dien meets the requirements for an ideal living space, forming a very distinctive highlight in comparison to other projects in the market.

“We are unified by the group’s shared purpose – ‘Inspiring Experiences, Creating Places for Good’, we wish to make Q2 Thao Dien to be an iconic project, a dynamic and trending new destination where residents can experience a convenient lifestyle – shopping, entertainment and work, all in one place,” Duong stressed.

Inspiring experiences in enjoying life and working space

With the dedication of an experienced international real estate developer, the project is built on schedule to the most rigorous standards.

Up to now, all apartments, office and commercial areas are completed and ready to welcome owners and businesses to move in.

In particularly, project amenities are developed with a focus on every single detail, granting future owners the opportunity to enjoy the best experiences for years to come.

At Q2 Thao Dien, the luxury apartments present open views of the Saigon River with classy amenities such as swimming pool, jacuzzi, a floating gym, hanging gardens, an outdoor barbecue area, and more.

Floating gym at Q2 Thao Dien

Adjacent to the apartment complex, just a few steps away is the premium and stylish [email protected] office tower.

The 32-storey building boasts a modern design with open space, high ceilings, and gorgeous river views. This architecture gives tenants to create a unique and inspiring duplex workspace design.

The special amenities area, Business Centre, is located on the 6th floor, designed with a sophisticated urban style that draws a visually impactful impression through a combination of neutral liberal colours with natural environmentally friendly materials.

Additionally, [email protected] is fully equipped in meeting and event rooms, training/education areas, coffee space, and professional management services. With numerous outstanding appeals, [email protected] meets the demands of an ideal working space for businesses, especially, a trend of workspace decentralisation to move from the central business districts to nearby dynamic areas.

[email protected], ideal office space in Ho Chi Minh City

The podium of the residential building is dedicated three floors of retail space forming the modern and trendy Q2Terrace.

In keeping class and standards to the overall project, a few selected tenants have been invited. Famous brands include Annam Gourmet Market, Dinh Phong – The Butcher & Seafood, Wayne’s Coffee, Peekaboo Café, and Beer Studio, which are all on board to serve residents as soon as they move in. The Q2Terrace will also be a place to dine, meet, and shop for professionals working at the [email protected]

Q2 Thao Dien, moreover, has the advantage of being located in a high-class residential area of Thao Dien ward, with three street frontages to Vo Truong Toan, Street No.9, and Street No.10 of District 2, a newly-developed district of Ho Chi Minh City.

The project is just 500m away from An Phu subway station and nearby to high-end amenities like luxury restaurants, shopping malls, supermarkets, hospitals, international schools, and more.

International-standard developer

Frasers Property is a multi-national developer-owner-operator of real estate products and services across five asset classes, namely, residential, retail, commercial and business parks, industrial and logistics, as well as hospitality in over 70 cities and 20 countries across Asia, Australia, Europe, the Middle East, and Africa.

Listed on the Main Board of the Singapore Exchange and headquartered in Singapore, the group has total assets of approximately Singaporean $38.7 billion as of September 30, 2020.

The group is also the sponsor of two real estate investment trusts (REITs) and one stapled trust listed on the Singapore Exchange.

Frasers Property has been in Vietnam for over 20 years, its presence includes Melinh Point, a Grade A boutique office building in District 1; and Q2 Thao Dien, a luxury mixed-use development in District 2. Frasers Property’s hospitality business also has a presence in Vietnam, with Fraser Suites Hanoi and Capri by Fraser.

The investment by AppWorks is a vote of confidence in Vietnamese healthcare booking app Docosan

AppWorks is known for its investments in leading Southeast Asian companies such as Lalamove, Carousell, and ShopBack. Other investors that joined the round include Singapore-based Huat Ventures and biotech entrepreneur David Ma, according to TechinAsia .

Established in January 2020, Docosan is an app for searching and booking appointments online with doctors 24/7, checking price lists and reviews by real patients. Docosan has helped 50,000 patients in Vietnam book appointments with physicians across 35 specialties within less than a year of operations.

“Many clinics are frustrated after spending large amounts on social media marketing because these networks’ vast, opaque user bases are difficult to harness to reach new patients,” Docosan’s CEO and co-founder Beth Ann Lopez said in a press statement.

“Docosan’s proprietary booking software provides doctors an easier way to manage bookings compared to the crowded waiting rooms, which people are increasingly wary of amid the pandemic,” she added.

In press statement, AppWorks partner Andy Tsai said, “We noticed Docosan’s potential early on because of its participation in the AppWorks Accelerator. Docosan’s founders demonstrated strong experience and dedication to the healthcare issues in the region. We are proud to be supporting Docosan’s vision of better healthcare access for all.”

The potential for healthtech startups is huge as the healthcare market will double in the next 7-10 years. Digital healthcare makes up less than 1 per cent of the total market size currently, a figure which is projected to skyrocket. Many healthtech startups are ramping up operations in Vietnam including eDoctor, Zoop Care, Doctor Anywhere, MedPro, and Jio Health.

A report by Fitch Solutions identified great promise in digital healthcare in light of the current challenges faced by public hospitals in Vietnam and the COVID-19 pandemic. Internet access is widespread and the country has seen rapid development in 4G and 5G mobile communications technologies. Building on these foundations, the government of Vietnam is driving a digitalisation agenda in hospitals and clinics across the country. Smart solutions are being strongly encouraged that utilise big data, AI, cloud computing, and mobile technology to help alleviate Vietnam’s overcrowded public hospitals and increase the quality of care.