CBRE Fearless Forecast 2012 HN en

Fearless Forecast
“Do not let a good crisis go to waste”

February 2012
Presented by:
Marc Townsend
Managing Director
CB Richard Ellis (Vietnam) Co., Ltd.
CBRE Vietnam | Page 2 CBRE Vietnam Fearless Forecast 2012
AGENDA
Review CBRE 2011 Fearless Forecasts
Hanoi key projects 2011-2012
Vietnam 2011 key macroeconomic indicators
Hanoi RE market sectors Reviews/Forecasts 2012

• Office
• Residential
• Retail
• Hotel
• Serviced Apartments
• M&A
CBRE 2012 MOST Fearless Forecasts

Review 2011 MOST Fearless Forecasts
Office Tenants
• Multiple choices and softening rents
Hospitality
• Ritz Carlton, St. Regis, Mandarin Oriental, Shangri-La and Four
Seasons to enter market within the next 5 years
Retail
• Shopping centres grow in size on average !
• Non-CBD locations are dominating!
• Shopping centres open with high occupancy rates!

Review 2011 MOST Fearless Forecasts
Investors
• Property investment remains dangerous for your health
• Change in asset class as gold dips and people moved in other directions
Developers
• Marketing spend TRIPLES as developers search for new ways to sell / lease
their units
• Increased use of technology in property – building management systems, CRM
systems
• Local companies seek capital through IPO’s and more sophisticated financial
structures
• Some residential developers will convert units for sale to units for lease due to
unsold units in completed buildings, or instituting rental pools (guarantees)
• Demand for data centres grows due to the continuing movement online, as our
businesses become more immediate with wi-fi, smart phones and iPads.
Developers prepared to deliver with the requirements needed to support these
trends will profit.

Hanoi Changes 2011-2012
Jan ‘11
Indochina Plaza Hanoi Mipec Tower Keangnam Landmark 72
Feb ‘12

Hanoi Changes 2011-2012
Vincom Village Hoang Thanh Tower
Oct ‘11 Feb ‘11
Feb ‘12 Feb ‘12

Hanoi Jan-Feb 2012
JW Marriott Royal City
Lotte Center Hanoi Mandarin Garden

According to BCI Asia…
Nha Trang Vung Hai
All Future Projects HCMC Hanoi Da Nang Can Tho
(Khanh Hoa) Tau Phong
Office 267 245 43 22 16 35 13
Retail 86 33 18 7 4 11 5
Hospitality
44 53 28 12 37 19 6
and SA
Residential 311 268 134 10 22 32 9
Projects Under Nha Trang Vung Hai

HCMC Hanoi Da Nang Can Tho
Construction (Khanh Hoa) Tau Phong
Office 166 88 15 15 6 19 7
Retail 42 24 6 6 3 1 3
Hospitality
25 32 17 5 10 8 2
and SA
Residential 142 104 19 3 5 14 5
Source: www.bciasia.com; CBRE Vietnam

Hanoi Key Projects
East of Hanoi to open up:

crossing the river is not a psychological barrier anymore

Infrastructure 2011 Milestones
Hanoi 2030-2050 Master plan approved (Jul 2011) Construction of Mai Dich – Linh Dam
HW on Pham Hung Rd
Hanoi Infrastructure: Building to the next level
Roads & Bridges

• City West: Mai Dich - Linh Dam elevated HW
• City North: Nhat Tan - Noi Bai HW kicked off Nov ’11
• City North: Nhat Tan Bridge
• City South East: Vinh Tuy 1 Bridge completed; Vinh Tuy
2 Bridge to start construction
Ha Dong – Cat Linh Metro
Metro lines line at Hoang Cau
• Ha Dong- Cat Linh: Ha Dong depot and 30% piers

under construction
• Nhon- Hanoi Station: land-clearing
Proposal of 24 car parks to 2015 in inner city and
along Ring Road No. 3 was approved
Vinh Tuy Bridge
Air
• North: Noi Bai’s Terminal 2 broke ground (75% ODA
funded) - 10 million arrivals per year

Infrastructure 2012
Policies
• Changing working hours is implemented
• Limiting private cars in inner city is considered
Roads
• 4 flyovers to be completed in 2012 (8 by 2015)
• West: Pham Van Dong Road to be expanded
• East: Nguyen Van Linh Road to be expanded
• Hanoi- Lao Cai Highway to be completed by end 2012.
Construction of Nhat Tan Bridge Construction of Thai Ha – Lang Ha Flyover

2011 Vietnam Economic Overview
2008 2009 2010 2011 e 2012 f
GDP
6.2% 5.3% 6.8% 5.91 6.3 3
Growth Rate (y-o-y)
12.75% 16%-17.0%
Lending Rate 12% Down from 21% 22% - 25%2 N/A
(Late 2010)
in Q3
Inflation 9.2%
22.9% 6.9%1 18.58%1 12.1% 3
(Average, y-o-y) (Dec‘10: 11.8%)
Exports US$62.7 bil US$57.1 bil US$71.6 bil US$96.3 bil US$105.4 5
Imports US$80.7 bil US$69.9 bil US$84.0 bil US$105.8 bil US$113.3 5
Gold Price VND17.8 mil VND26.7 mil VND36.1 mil VND41.8mil4

(Dec. 31, 2008, up (Dec. 31, 2009, (Dec. 31, 2010, up (Dec. 30,2011. up N/A
(per Tael) 7.2% y-o-y) up 50% y-o-y) 35.2% y-o-y) 15.8% y-o-y)
19,500 21,036
US$/VND 17,400 18,497 (Dec. 31, 2010) (Dec.31, 2011)
21,7357
(Commercial banks) (Dec. 31, 2008) (Dec. 31, 2009) Devalued by 5.4% Devalued by 7.9%
vs. Dec. 2009 vs Dec. 2010)
US$/VND 17,510 19,470 21,010 21,275

N/A
(Unofficial market) (Dec. 31, 2008) (Dec. 31, 2009) (Dec. 31, 2010) (Dec. 31, 2011)
US$18.6 bil US$14.7 bil 1

Committed FDI US$71.7 bil US$22.6 bil 1 US$15 - 16 bil 6
(US$6.8 bil real (US$845.6 mil real
estate) estate)
Implemented FDI US$11.7 bil US$10 bil US$11 bil US$11 bil1 N/A
Source: Historical data by GSO, 1GSO , 2SBV, 3 IMF, 4 SJC, 5 World Bank, 6 Ministry of Investment, 7Oxford Economics

2011 Regional Economic Comparison
Hong Kong Thailand Singapore China Malaysia Vietnam Indonesia
GDP
4.9% 1.6% 5.0% 9.0% 4.9% 5.9% 6.3%
Growth Rate
Consumer Price
5.3% 3.9% 5.0% 5.6% 3.2% 18.6% 5.4%
Index
Gold Price US$53.00

( per gram in US$51.80 US$50.50 US$52.18 US$51.88 US$52.17 2.2% higher US$52.72
than regional
US$ equivalent) average
Trade Balance -$55.4 bn $27 bn $48.3 bn $111.9 bn $47.1 bn -$9.5 bn $38.2 bn
FDI (net inflow $11.0 bn

in current US$, $68.9 bn $6.3 bn $38.6 bn $185.1 bn $9.5 bn (Source: World $13.3 bn
2010) Bank)
Source: Oxford Economics, Vietnamese General Statistics Office, World Bank, Goldprice.org, goldpricethai.com, pecunix.com

A look ahead to 2012
With demand from the eurozone and US

expected to remain weak for some
time, emerging East Asia should continue to
work toward increasing intraregional trade
and financial integration, and expanding
links with other emerging economies.
- ADB, Asia Economic Monitor, December 2011 -
GDP CPI
2012 (% y-o-y) (% y-o-y)
Vietnam 5.8 11.5
Hong Kong 3.5 3.6
Thailand 4.5 2.9
Singapore 3.3 2.8
China 8.1 3.5
Malaysia 4.9 2.8
Indonesia 6.2 5.0
Source: Oxford Economics. Note: GDP growth for Vietnam in 2012, The World Bank, IMF and ADB range between 6.1% – 6.5%.

2011 Economic Overview – Inflation
Inflation continues… • CPI figure
• Price of rebar in Hanoi: – Dec. 2010: 11.8% y-o-y
– Dec 2010 - 15,500 VND/Kg – Dec. 2011: 18.13% y-o-y
– Nov 2011 - 18,050 VND/Kg – 2011: 18.58% y-o-y
• Price of cement in Hanoi: Fuel Price Change
– Dec 2010 - 1,200 VND/Kg
–Nov 2011 - 1,500 VND/Kg
• Price of one carton of Heineken in Hanoi:
– Jan 2011 - 340,000 VND
– Jan 2012 - 370,000 VND
• Price of food and foodstuffs:
– Dec. 2010: 16.2% y-o-y
– Dec. 2011: 24.8% y-o-y
Source: General Statistics Office, Petrolimex

2011 Economic Overview – FDI
Implemented FDI
Source: Ministry of Planning & Investment

2011 Economic Overview – Currencies
As per 2010, in 2011 the US Dollar appreciated in Vietnam.

However, in 2011 the US Dollar also appreciated against the
Thai Baht and Singapore Dollar
Source: Google Finance

2011 Vietnam Stock Market
At the beginning of 2011, some expected a rise. Going into
2012, some are wondering where the bottom is.
VN Index dropped 28%, real estate companies fell approx. 45%
Little support from those holding gold
2012 YTD: the stock markets are up 19%!
Source: FPT Securities

2011 Regional Stock Market Comparison
Since 01/01/2012 some Asian markets have picked up!?

Source: ADB

2011 Gold Market
Vietnam market: in 2011, Gold price increased 25.7% y-o-y

Global market: 2012’s average gold price to be US$1,766 per
ounce, 12.3% increase from 2011’s, according to a survey by
The London Bullion Market Association. HSBC predicts is
US$1,850 per ounce.
Source: kitco.com

2012: Gold Supply in Vietnam Increases
The magic from Trinh Duc’s performance in the

Rugby World Cup is overshadowed by:
• Quy Phuc is expected to win the gold in 100 m
freestyle
• Anh Tuan is expected to win the gold in <56 kg
weightlifting
• Ha Thanh is expected to win the gold in the floor
exercise
Source: vov.vn; giadinh.net.vn; tuoitre.vn ; 1star1objet.fr
Car Sales
Kia New Morning VND357,000,000 (US$17,000)
Entry Level Mercedes VND1,500,000,000 (US$70,000)
VET: “Private passenger car sales saw a 22.1% JUMP to 40,858 units in 2011”
Car Sales (units)
YoY CAR SALES GROWTH OF SOME MANUFACTURERS (2011)
Bentley GTC Speed in Hanoi

2011 International Arrivals
6 million to Vietnam (19.1% y-o-y) Tourism arrivals to Vietnam by country 2011
• 3.5 million to HCMC (13% y-o-y) China 1,416,804
• 1.3 million to Hanoi (4% y-o-y) South Korea 536,408
Japan 481,519
US 439,872
Cambodia 423,440
Taiwan 361,051
Australia 289,762
Malaysia 233,132
France 211,444
Thailand 181,820
Others 1,438,779

2011 Government Decrees
• Pricing in Dong
– Decree 95/2011/ND-CP dated October 20, 2011
– VND must be used for quotation or advertising of goods and services, etc.
• Apartment Service Fees

– Decision No. 4520/QĐ-UBND dated September 29, 2011:
– Statutory Apartment Service Fee: max VND4,000 (~US$0.2) psm
– Statutory Fee to be applied only when no agreement reached on Apartment Service Fee in advance
• Non-Agricultural Land-Use Tax

– Decree No. 53/2011/ND-CP, effective from January 01, 2012
– Pilot program for NALU Tax in 2011:
– To collect NALU tax in certain areas of Ha Noi, Can Tho City & Bac Ninh province.
– To identify taxation areas, connect & exploit databases of local agencies on tax & natural resources.
• Requirement for Environmental Impact Statement

– Decree No. 29/2011/ ND-CP dated April 18, 2011:
– First guidance on the assessment of environmental impact
– Proscribes many requirements and procedures for specific development projects

Regional Rental Comparison
As at Q4/2011: Local Currency
RevPAR (MAT) Indexed
190
140
90
40
Thg6 07Thg12 07Thg6 08Thg12 08Thg6 09Thg12 09Thg6 10Thg12 10Thg6 1
Vietnam Singapore
LUXURY APARTMENT PRIME PRICES & RENTS IN KEY ASIAN MARKETS

$40,000 $80
$35,000 $70
Rent (US$ psm per month)

$30,000 $60
Price (US$ psm)

$25,000 $50
$20,000 $40
$15,000 $30
$10,000 $20
$5,000 $10
$0 $0
Price Rent

Office – Supply & Absorption
Supply by Grade (sm) 2012 new supply: 400,000 sm
Vacancy ? ( 54% y-o-y)
2.4 mil.
2.7 mil. 2012 absorption max: 100,000 sm
2012 vacancy: 500,000 sm
1.48 mil.
1.11 mil.
Supply – Demand Dynamics

2011 2012F
Total Supply (sm) 700,000 1,100,000

Supply by Location (sm)
New supply (sm) 220,000 400,000
2.7 mil.
2.4 mil. Leased Area (sm) 530,000 630,000
% 73% 57%
1.48 mil.
Net absorption (sm) 101,000 100,000
1.11 mil.
% 15% 10%
Vacancy (sm) 200,000 500,000

Vacany rate 27% 43%
Only 10% vacancy in CBD area (20,000 sm)

Condominium - 3 Year Price Movement
Luxury Condominium (US$ psm) High-end Condominium (US$ psm)
Q2
-3% Q4
Q1
-7.5% Q4
Low-end Condominium (US$ psm)

Mid-end Condominium (US$ psm)
Q1
-7.5% Q4
Q1
-6.5% Q4

Condominium - 3 Year Price Movement
HN vs. HCMC
HN: Price upside potential in the past, but will eventually follow the flat/downward pattern of HCMC?
Luxury Condominium (US$ psm) High-end Condominium (US$ psm)
Upside
Upside
HN: Higher
price level at
the same
quality!
Mid-end Condominium (US$ psm) Low-end Condominium (US$ psm)
Upside
Upside

Condominium - Take-up vs. Hangover
HN Take-Up Rate (%)
- 2012 New Supply: 22,000 units

- 2011 Accumulated Hangover: 16,500 units
- 2011 Sales : 12,700 units
- 2012 Total Supply: 38,500 units
HN Sold Units (Units) HN Accumulated Unsold Units (Units)

Condominium - Supply
New Launch vs. New Completion Supply
29,900
30,000
25,100
25,100
25,000 21,600
21,600
20,000
Supply (Units) 15,000
10,000
4,000
4,000
5,000
0
2004 2005 2006 2007 2008 2009 2010 2011
2011 2012F
2012F 2013F 2014F
New Launch New Completion
Based on Developers’
Planning
Some are waking up with

their head in their hands
Late hand-over: to be widespread
( large planned completion in +2012F
vs. small actual completion ~2011)

The Residential Nightmare
Dong Devaluation
(9.3%) Resolution 11
More strict
control on
dolarisation Æ
price list in VND PVN Tower: 102
-> 79 floors
Condo Service
Fee disputes
Q1 Q2 More sales
9,100 launches 8,100 launches incentives: stop
0.8% price (q-o-q) 0.7% price (q-o-q) pegging condo
prices to CPI
Discount Headlines
Some banks
3,600 launches stopped
2012 4,300 launches 1.3% price (q-o-q) offering
Death, Disc mortgage
ount or
3.1% price (q-o-q) Q3
Opportunity Q4
? 2030-2050 Hanoi
Masteplan officially
More heated approved
PVN Tower: Condo Service
PVN withdrawal Fee disputes
Property sector, the most attractive
No. 4520/QD-UBND : cap
investment channel, but more
cautious to invest in 1-3 years Condo Service Fee at
(survey by Grant Thornton Vietnam) VND4,000 psm (US$0.2)
unless otherwise agreed
Doc. 8844 /NHNN-CSTT: Remove 4
real estate groups out of the non-
productive loan category
Retail Market
HN Retail – Supply & Vacancy≈30%
2011 (NLA) 2012F (GFA)
CBD Non-CBD CBD Non-CBD

≈12%
Total Supply (sm) 42,000 205,000 56,000 365,000
≈20% New Supply (sm) 6,600 128,000 14,000 167,000
Vacancy (sm) 2,400 24,000 0 110,000
Vacancy rate (%) 6% 12% 0% 30%
2011: Occupancy in CBD: 94%; Non-CBD: 88%

2012: “Wild Wild West” – Tu Liem, Cau Giay and Ha
Dong see highest additional supply in 2012 Indochina Plaza Hanoi
Habico Tower
Melinh Plaza Ha Dong

Retail Market
Development for international Brands Development for domestic Brands
Trang Tien Plaza Panerai – Metropole Arcade
Maturing of VN Retail
Kenzo – Hang Bai / brands
Ly Thuong Kiet Street
Metropole
Arcade
Press Club
Opera
Business Gallery Royale
Center
Korloff – Hang Bai Street
Runway
Kenzo &
Korloff
Expansion of domestic
Luxury Shop Expansions Brands in secondary street
Existing Luxury Shops
locations (e.g. Kim
Ma, Cau Giay Street)
Expansion of Hanoi’s Luxury Node

Trang Tien – a more luxurious Street in 2012

Hotel Market
2012 – A challenging year for Hanoi Hotel Demand
• A slight & smaller increase of int’l visitor arrivals
• A small reduction in domestic arrivals
2012 Hanoi Hotel Performance

• 4-5 star: Stable / slightly decreased ADR & Occupancy
• 3-star: More stable RevPAR
5,000
4-5 STAR HOTEL SUPPLY (rooms)
4,757
4,000
3,780
3,000
3,130
2,000
1,750 1,837
1,000 1,510
0
2010 2011 2012-2013f
5-star 4-star
Hotel Market
2012 - Year of local players
• More Hotel Acquisition of Local Investors from Foreign Partners
• Local Hoteliers: more aggressive in expanding high-end market share
New International Brands keep showing interest in Hanoi high-end

market. Negotiations with several developers are actively underway.

Serviced Apartments 2012
(units)
“Vietnam will be the 11th most common Landmark 72
Crowne Plaza
destination of companies sending staff on Grand Plaza
international assignments up to 2013.
Therefore, this is likely to ensure that the demand
for accommodation from companies sending staff
into Vietnam is likely to remain strong in the next
three years”.
--- Trends in Managing Mobility
Survey 2010, ECA International
More apartment buildings will be converted to serviced apartments, fully or

partially, as condos struggle to sell.
Supply:
• 2011: 2,400 units
• 2012: 3,000 units
Performance differs by location:
• Western area: Occupancy rate Below 50% (Q4/2011)
• 25% total supply (not yet including Landmark 72)
• The rest: Occupancy rate 90% in Q4/2011
Top demand of <$2,500 budget for a studio / 1BR / 2BR

Investment Sales
Pacific Place, Hanoi CentrePoint, HCMC

Q4 2010 – Reported 12% Q2 2011 – Reported 10.6 – 11.3%
We expect more
investment sales
to come in 2012
Saigon Tower, HCMC

Q4 2011 – Reported 8.5%
2012 CBRE’s 10 Most Fearless Forecasts
1. OFFICE
• Banks are still dominant occupiers.
• Commercial office struggles, built-to-suit continues especially for banks
• Tenants create the trend (large space occupiers create the market:
KPMG, PWC, Standard Chartered Bank Î others follow).
• Western sub-market: occupancy to be positive, rents continue to drop (due to
competitiveness, not just because of excess supply) >< CBD prime office landlords still
not reducing rents.
• 2011: landlords/tenants share the bargaining power. 2012: tenants have the upper hand
2. RESIDENTIAL
• Real demand for products of 21 million VND or below
• Developers expect margins to drop 15%-20%
• Developers focus on quick returns & direct discounts on sales prices
• Landed houses sell only in gated communities with good infrastructure & visible progress
• Luxury residential in the CBD WILL sell.
3. RETAIL
• New retail luxury node for Trang Tien area;
• Multiple location tenants no longer happy to expand, or even plan to reduce premises;
while anchor retailers still pursuing long term plans.
• Non-CBD: landlords and tenants: Live or Die TOGETHER
• Expect to see some big empty spaces

2012 CBRE’s 10 Most Fearless Forecasts
4. East of Hanoi opens up: crossing the river is no longer a psychological barrier
5. Stock market: 2012 closes on a much happier note!
6. Deposit interest rates come down to 10%-12% pa
7. Registered FDI into real estate triples in 2012 as Vietnam sees 20 new foreign
investors.
8. Gold price declines with new supply from Vietnam’s two gold medals at the
London Olympics 2012.
9. Revenue from cleared sites skyrockets as they are converted into temporary car
parks, car wash, mini soccer fields, bia hoi, etc.
10. Several big investment deals done between Local developers and Local/foreign
investors
11. Jack Dorsey to spend Christmas 2012 in Vietnam, @Townsend_Marc to have
50,000 followers

CBRE Vietnam - HCMC & Hanoi Quarterly Reports
The most insightful real estate publication in Vietnam!
Plan your future with two quarter and eight quarter forward looking analysis.
Contact for complimentary sample:
quarterlyreports@cbrevietnam.com
THANK YOU
© 2012 CB Richard Ellis (Vietnam) Co., Ltd. This report has been prepared in good faith and with due care by CB Richard Ellis (Vietnam) Co., Ltd. We obtained some of the
information above from sources we believe to be reliable. However, we have not verified the accuracy of the information which we obtained from other sources and make no
guarantee, warranty or representation about it. We include projections, opinions, assumptions or estimates which are made with careful consideration of factors known to us for
example only, and they may not represent current or future performance of the market. This information is designed exclusively for use by CB Richard Ellis clients, and cannot be
reproduced without prior written permission of CB Richard Ellis.

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Fearless Forecast

“Do not let a good crisis go to waste”

 Review CBRE 2011 Fearless Forecasts

 Hanoi key projects 2011-2012

 Vietnam 2011 key macroeconomic indicators

 Hanoi RE market sectors Reviews/Forecasts 2012

 CBRE 2012 MOST Fearless Forecasts

CBRE Vietnam | Page 3 CBRE Vietnam Fearless Forecast 2012

CBRE Vietnam | Page 4 CBRE Vietnam Fearless Forecast 2012

CBRE Vietnam | Page 5 CBRE Vietnam Fearless Forecast 2012

CBRE Vietnam | Page 6 CBRE Vietnam Fearless Forecast 2012

Oct ‘11 Feb ‘11

Feb ‘12 Feb ‘12

JW Marriott Royal City

Lotte Center Hanoi Mandarin Garden

Office 267 245 43 22 16 35 13

Projects Under Nha Trang Vung Hai

CBRE Vietnam | Page 9 CBRE Vietnam Fearless Forecast 2012

East of Hanoi to open up:

CBRE Vietnam | Page 10 CBRE Vietnam Fearless Forecast 2012

Hanoi Infrastructure: Building to the next level

 Roads & Bridges

• Ha Dong- Cat Linh: Ha Dong depot and 30% piers

CBRE Vietnam | Page 11 CBRE Vietnam Fearless Forecast 2012

Construction of Nhat Tan Bridge Construction of Thai Ha – Lang Ha Flyover

CBRE Vietnam | Page 12 CBRE Vietnam Fearless Forecast 2012

Gold Price VND17.8 mil VND26.7 mil VND36.1 mil VND41.8mil4

US$/VND 17,510 19,470 21,010 21,275

US$18.6 bil US$14.7 bil 1

CBRE Vietnam | Page 13 CBRE Vietnam Fearless Forecast 2012

Gold Price US$53.00

Trade Balance -$55.4 bn $27 bn $48.3 bn $111.9 bn $47.1 bn -$9.5 bn $38.2 bn

FDI (net inflow $11.0 bn

CBRE Vietnam | Page 14 CBRE Vietnam Fearless Forecast 2012

 With demand from the eurozone and US

CBRE Vietnam | Page 15 CBRE Vietnam Fearless Forecast 2012

Source: General Statistics Office, Petrolimex

CBRE Vietnam | Page 16 CBRE Vietnam Fearless Forecast 2012

Source: Ministry of Planning & Investment

CBRE Vietnam | Page 17 CBRE Vietnam Fearless Forecast 2012

 As per 2010, in 2011 the US Dollar appreciated in Vietnam.

Source: Google Finance

CBRE Vietnam | Page 18 CBRE Vietnam Fearless Forecast 2012

Source: FPT Securities

Since 01/01/2012 some Asian markets have picked up!?

CBRE Vietnam | Page 20 CBRE Vietnam Fearless Forecast 2012

 Vietnam market: in 2011, Gold price increased 25.7% y-o-y

CBRE Vietnam | Page 21 CBRE Vietnam Fearless Forecast 2012

 The magic from Trinh Duc’s performance in the

YoY CAR SALES GROWTH OF SOME MANUFACTURERS (2011)

Bentley GTC Speed in Hanoi

CBRE Vietnam | Page 24 CBRE Vietnam Fearless Forecast 2012

• Apartment Service Fees

• Non-Agricultural Land-Use Tax

• Requirement for Environmental Impact Statement

– Proscribes many requirements and procedures for specific development projects

CBRE Vietnam | Page 25 CBRE Vietnam Fearless Forecast 2012

LUXURY APARTMENT PRIME PRICES & RENTS IN KEY ASIAN MARKETS

Rent (US$ psm per month)

Price (US$ psm)

CBRE Vietnam | Page 26 CBRE Vietnam Fearless Forecast 2012

Supply – Demand Dynamics

Total Supply (sm) 700,000 1,100,000

Review CBRE 2011 Fearless Forecasts

Hanoi key projects 2011-2012

Vietnam 2011 key macroeconomic indicators

Hanoi RE market sectors Reviews/Forecasts 2012

CBRE 2012 MOST Fearless Forecasts

Roads & Bridges

With demand from the eurozone and US

As per 2010, in 2011 the US Dollar appreciated in Vietnam.

Vietnam market: in 2011, Gold price increased 25.7% y-o-y

The magic from Trinh Duc’s performance in the

2011: Occupancy in CBD: 94%; Non-CBD: 88%

Expansion of Hanoi’s Luxury Node

2012 Hanoi Hotel Performance

New International Brands keep showing interest in Hanoi high-end

More apartment buildings will be converted to serviced apartments, fully or