VIETNAM EXPECTED TO BE THE PRIME BENEFICIARY OF US-CHINA TRADE WAR
HCMC Property Market Prices Growing by Leaps and Bounds
(27 July 2018, Hong Kong)
US-China Trade War – How Vietnam can benefit?
With President Donald Trump’s recent proposal of imposing heavy tariffs to 200 types of Chinese goods, the US-China trade war has kicked off. Heavy trade tariffs on goods of both countries’ exports are imposed. Vietnam, which is not embroiled in the conflict, is foreseen to be a potential beneficiary between the rival of the two super powers.
In the past decade, factory wages and other costs have risen in China at a rapid pace, as a result, corporations have turned to developing Southeast Asia countries such as Vietnam for investment. Foreign investors in particularly big corporations such as Samsung and Apple have shifted their manufacturing factories to Vietnam as it becomes a lower-cost destination for investors. With the US-China trade war, it accelerates an existing trend of foreign business veering away from China and entering Vietnam, so as to avoid the high tariffs for “Made in China” goods.
The General Statistics Office of Vietnam revealed that Vietnam has attracted a total of USD20.33 billion worth of foreign direct investments in the first half of 2018 with manufacturing and post-production industries attracted the highest number of foreign direct investments, totaling to USD7.91 billion. The FDI sector accounts for approximately 70% of the country’s export turnover, equivalent to 22% of GDP. Due to the increase in Vietnamese exports with the US-China trade war, an increase in labour demand will be triggered, acting as the key driver to output (GDP) and employment growth. All these factors gave rise to a booming economy, fueling rapid property market growth in the country.
Waterina Suites – Highest Standard Residential Building in Vietnam
Waterina Suites is a joint venture property development by the world-class developer Maeda Corporation (Japan) and Thien Duc Company. Nestled at the heart of District 2 which is known as the city’s expatriate area, Waterina Suites is situated at an unbeatable location which is prioritized among investors. District 2 is only minutes away to the heart of the city by Thu Thiem Tunnel and the upcoming Thu Thiem Bridge, comparable to the West Kowloon district in Hong Kong. An array of amenities is available only minutes away – renowned international schools, the “SOHO” area of HCMC, restaurants, bars, luxury hotels, supermarkets, malls and cinemas, which is a convergence of convenience and luxury.
Designed by the world-famous Mr. Kengo Kuma who also is lead architect of New National Stadium – Japan, Waterina Suites is a work of art created by a master. Set to become one of Ho Chi Minh City’s future landmarks, its elegant overlapping curved design is inspired by the organic curve of the Saigon River and the layers of terraced paddy fields in highlands of Vietnam with the units offering spectacular views over Saigon River with surrounding landscaped gardens.
Waterina Suites stands at 25-storeys high with a podium composing of 98 luxurious suites of penthouse, duplex and single floor units that comes complete with its very own car park, swimming pool, spa and business centre. It offers a wide range of state-of-the-art facilities including its magnificent infinity swimming pool overlooking Saigon River, business centre, bar, library and restaurant for residents to indulge in a luxury lifestyle. As one of Maeda Corporation’s key projects in Vietnam, Waterina Suites are constructed according to Japanese standards. The best materials and construction methods are used – kitchen ventilation systems, elastic paint at outer wall to increase cracking resistance, concrete wall to avoid water leakage and sound insulation and waterproofing for roof slab. As an award-winning developer, Maeda Thien Duc strives to provide residents the best living experience in this highest standard residential building in Vietnam. It is expected to be completed by Q3 2019.
Unparalleled Infrastructure in HCMC District 2
The metro system under construction in HCMC District 2 is believed to further accelerate land and property prices. Six metro lines have been planned and two of which, Metro Line No. 1 and Metro Line No. 2 are expected to be in service in 2020, serving around 160,000 passengers daily. Projects around the upcoming metro lines are currently selling at a few percent premium, compared with the prices of those with similar facilities in other parts of the city. When the metro lines run in 2020, it is expected the gap would be widened by 10 to 20 percent. The centre of District 2 are key areas surrounding the upcoming metro stations, in which property development boom have been recorded with an average growth of more than 30% in the last few years, outperforming other districts in HCMC.
Leading developer of Waterina Suites – Maeda Corporation
Headquartered in Japan and listed on the Tokyo Stock Exchange, Maeda Corporation is one of the largest and long-standing corporations in civil, industrial & infrastructure construction of Japan. Established in 1919, Maeda Corporation has global presence with branches in 15 countries in the world. Its key projects in Japan include The Tokyo Towers, Tennoz Central Tower, Fukuoka Dome, Tagokura Dam, Seto Ohashi Bridge and Tokyo Bay Aqua Line etc.
Maeda Corporation is the general contractor of major projects in Hong Kong such as the Hong Kong International Airport, Hong Kong Stonecutter Bridge, Tsing Yi MTR Station and West Kowloon Expressway. As the contractor of the HCMC’s Ben Thanh – Suoi Tien metro line station, Maeda Corporation also has planted its roots in Vietnam with over 25 years of presence, using modern technology in Vietnam with Japanese quality.
Maeda Corporation has formed a joint venture with Thien Duc Company to develop the renowned Waterina Suites. Thien Duc Company belongs to Long Thanh Golf Company, specializing in real estate development, hospitality and green energy.
Dr. Tetsuo Kida, Representative of Maeda Corporation, General Director of Maeda Thien Duc company, said: “Waterina Suites is like no other, it is the perfect choice for the ultra-affluent. We designed this magnificent condominium to provide our residents with an unexceptional experience especially for Japanese expats living in the city. As one of the most respected and highly sought brands in the luxury property market, we endeavor to uphold our standard of excellence in all our property projects. With the significant increase in demand for luxury properties in Ho Chi Minh City, and our future plans is to continue in constructing distinctive properties with the highest Japanese standards in Vietnam.”
Mr. Kingston Lai, Managing Director of Ashton Hawks, added that, “Vietnam’s property market can be benefited from the positive effects that the US-China trade war. As a competitor of China as the “world factory”, it is expected that an increasing number of factories will be moved to Vietnam as “Made in Vietnam” products can avoid the heavy tariffs when it is imported to the United States especially on agricultural and industrial goods. It is expected that Vietnamese exports to China and United States will increase followed by an increase in GDP. The rise in GDP capita shall increase the purchasing power of the Vietnamese, thus demand in the housing market. It can be foreseen that there will be more local aggregate demand in the Vietnamese property market after the US-China trade war.”
Mr. Terence Chan, Managing Director of Ashton Hawks states that “With the increase in Vietnam’s FDI and the start of the US-China trade war, more people are moving to Vietnam to do business or open factories, greatly boosting the number of expats living in Vietnam. As they are primarily entrepreneurs or professionals, their choice of abode will be in the more affluent neighborhoods. Waterina Suites is perfectly located at District 2, one of the most sought after residential areas among the expatriate community. Its lush environment is extremely attractive to affluent foreigners and locals, with luxury villas prevalent in the area. The increase in expats shall increase the foreign demand for Vietnamese property market and rental housing – a favourable factor to higher property market prices and rental yields in the future.”
The launch of Waterina Suites will take place on 4-5 August 2018 in The Park Lane Hong Kong (26/F, 310 Gloucester Road, Causeway Bay).
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Ashton Hawks was established by a group of renowned investment gurus and private collectors who laid the very foundation of the discerning Ashton Hawks, balancing luxury leisure lifestyle and investment. Our headquarter office is located in Hong Kong, with overseas branches in Bangkok and Vietnam. Ashton Hawks’ real estate portfolio is as diverse in style as it is in mega-estate location across the globe and caters to luxury style of all kinds.
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