GDP growth reached 6.9%, the highest 9M/2018 growth in eight years. In 2018, the government forecast GDP growth to reach 6.7 percent. Manufacturing and processing grew 13% YoY and continued to be a key GDP contributor.

Strong export momentum continued up 15% YoYto US$179 billion, delivering a US$5.4 billion trade surplus.

The US remains the largest export market with US$35 billion, increasing 13% YoY.

Total registered FDI reached over US$25billion, while FDI disbursement increased 6% YoY to US$13.3 billion with Japan being the largest contributor.

CPI growth was well controlled at 3.6%, approximately 4% under the limit.

International visitors strongly grew 23% YoY to 11.6 million, Asian tourists continued to be the main source market.

RETAIL: rENOVATIONsINCREASEappeal

Total stock was1.2 million m2, with over 55,000 m2 added due to the entry of three shopping centers and two supermarkets. One department store downsized, withdrawing 7,300 m2.

Average gross rentdecreased -1% QoQ and -3% YoY. New supply in the non-CBD offered competitive rent. Average occupancy increased 1pptQoQeven after the entry of new supply.

Retail sales had strong growth at 12% YoY, in which F&B grew 13% YoY. High retail density in the CBD and NUAsare encouraging retailers to renovate and revise the tenant mix for wider appeal.In Q4/2018, over 100,000 m2will be added in non-CBD districts, which will pressure overall performance.

For more information, click 081018 – Savills Vietnam report on HCMC real estate market Q3.2018 – EN

Neil Macgregor - Managing Director of Savills Vietnam


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