November 27, 2019
Growth of Vietnam’s economy stayed strong: Amid the prevailing global uncertainty and growth slowing down, Vietnam’s economy still achieved stable growth with 6.98% for the first 9 months of 2019. in 3Q/2019 alone, the GDP growth reached 7.31% over the same period last year. This was slightly lower than the 3Q18 rate yet still higher than the growwth of the third quarter during the 2012-2018 period.
Vietnam’s FDI registered new growth: Total FPI pledged to the country reached USD 26.16 billion in the first 9 months of 2019, an increase of 3.1%y-o-y. Specifically, the total new registered capital reached USD 10.97 billion, equivalent to 77.7% of the level recorded in the same period last year. FDI disbursement in 9 months was recorded at USD 14.22 billion, an increase of nearly 7.3%y-o-y.
CPI remained stable: Vietnam’s average VPI inched up about 2.23% in 3Q19 and 2.5% in the first 9 months compare to the period last year
Vietnam’s Economic Backdrop
While new launches in HCM City continued to decrease due to slowdown of licensing process, Hanoi City witnessed a stable new launch projects in one quarter coming from subsequent phases of large-scale townships targeting mid-end buyers. Positive absorption was seen in both markets.
There was no new supply in HCMC while Hanoi City received 29,000 sqm NLA from two new grade B buildings. Both cities are expecting high level of new supply coming up later this year, further stablizing rental rates in near future
Limited supply in the CBD area supports strong performances, in terms of rental rates and occupancy rates, in both cities. In the non-CBD area, HCM City welcomed one new project and one expansion while Hanoi welcomed three new projects. More supply is to come online in later of this year and Hanoi’s retail market will surpass one million sqm
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