Despite the difficulties caused by the Covid-19 pandemic, Vietnam’s economy still proved strong and showed many optimistic signs in the second quarter of 2021.


Specifically, GDP in the second quarter of 2021 was estimated to increase by 6.61% over the same period last year. GDP in the first 6 months of 2021 increased by 5.64%, higher than the increase of 1.82% in the first 6 months of 2020 but lower than the increase of 7.05% and 6.77% of the same period in 2018 and 2019.
Foreign investment capital, although decreased by 2.6% over the same period last year, was still very positive in general. Specifically, the total foreign investment capital into Vietnam as of June 20, 2021 including newly registered capital, adjusted registered capital and value of capital contribution and share purchase by foreign investors reached nearly $15.27 billion. Meanwhile, the total retail sales of consumer goods and services in the second quarter of 2021 was estimated at 51 billion USD, down 8.4% compared to the previous quarter and up 5.1% over the same period last year.
Office segment Rents in all three markets of Hanoi, Ho Chi Minh City and Da Nang tend to decrease slightly due to the impact of the Covid-19 pandemic. To adapt to the unpredictable developments of the pandemic, many new, flexible and unique office models have been launched by the operating units.

Retail segment
In Ho Chi Minh City, in the central area, the average rent in commercial centers decreased by 15%, while in the remaining areas, the decrease was deeper, about 30% during the epidemic period.

In Hanoi, rents also decreased in the central area and the rest of the area, by 10% and 25% respectively. However, the last quarter also recorded many big deals, contributing to improving market sentiment. Notably, there is information about the investment of $ 400 million from Alibaba and Baring Private Equity Asia in The CrownX, a company owned by Masan Group, to operate the VinMart supermarket chain. Many retail models have also been applied and improved, such as the fact that Masan bought a 20% stake in Phuc Long and VinCommerce signed a strategic cooperation agreement with Phuc Long to jointly develop Phuc Long Kiosk in Hanoi. more than 2,200 VinMart + stores nationwide.

The apartment segment in the second quarter of Ho Chi Minh City mainly sold products outside the center. In Hanoi, most of the new supply for Q2 2021 comes from subsequent phases of existing development projects.

Villa – townhouse segment
In Ho Chi Minh City, the east and the south are two areas attracting many investors; East has Vinhomes Grand Park and south has GS Zeitgeist Nha Be and Lovera Park Binh Chanh.

In Hanoi, villas account for 20% of the supply, townhouses provide 35%, while commercial townhouses provide 45% of the total supply of this segment. The real estate market for villas and townhouses in Hanoi remains attractive despite the pandemic. Most of the transactions this quarter came from the secondary market.

Serviced Apartment

There was no new supply in both Hanoi and HCMC in the last quarter. Affected by the fourth outbreak of the Covid-19 pandemic, in both economic locomotives of the country, the average asking price dropped sharply compared to the same period last year.

Industrial parks in Ho Chi Minh City and Hanoi remained unchanged in the last quarter, with 18 and 9 industrial parks respectively. The average asking price of industrial land is still at $175/m2/term in Ho Chi Minh City, up slightly from the previous quarter. The average occupancy rate was 85%, similar to the previous quarter. In Hanoi, the average asking price of industrial land is still at 140 USD/m2/term and the occupancy rate is around 90%.

According to the representative of Colliers Vietnam, it is expected that the vaccination strategy to achieve herd immunity will be successful as soon as possible. This is the most important condition to help many economic activities in general and the real estate market in particular gradually recover and grow strongly again.”

According to Colliers Vietnam.