HA NOI

DA NANG

HCMC

Over 22 years First to Market

68,000 sqm Leased in 2016

US$ 200 mil2016 residential sales

SAVILLS VIETNAM

Over 5.2 M sqm under Savills management

The most innovative Advisory Services in Viet Nam

Over USD 100M paNumber one for transactions

EVOLVINGModern retail supported by a large young populationand an expanding economy

• 2nd highest urban population in the region and growing.• Consistently high GDP growth.

GDP Growth %

Urban Population 2016 (Mil)

% Urbanisation

Spending Consumption growth (%) 201645.3

4.95.0

141IND

ON

ES

IA54%

6.17.045.3

PHIL

IPPI

NES

44%

7.3

MYA

NM

AR

18.5

35%

2.93.135.8TH

AILA

ND 52%

LAOS

7.32.7

40%

VIET

N

AM

6.77.031.5

34%

7.06.73.3

21%

CAM

BO

DIA

1.90.65.6

100%

SIN

GAP

ORE

5.06.023.3

75%

MAL

AYSIA

-0.61.90.3

78%

BRU

NEI

40%

Key

2

HA NOI

DA NANG

HCMC

Over 22 years First to Market

68,000 sqm Leased in 2016

US$ 200 mil2016 residential sales

SAVILLS VIETNAM

Over 5.2 M sqm under Savills management

The most innovative Advisory Services in Viet Nam

Over USD 100M paNumber one for transactions

EVOLVINGModern retail supported by a large young populationand an expanding economy

• 2nd highest urban population in the region and growing.• Consistently high GDP growth.

GDP Growth %

Urban Population 2016 (Mil)

% Urbanisation

Spending Consumption growth (%) 201645.3

4.95.0

141IND

ON

ES

IA54%

6.17.045.3

PHIL

IPPI

NES

44%

7.3

MYA

NM

AR

18.5

35%

2.93.135.8TH

AILA

ND 52%

LAOS

7.32.7

40%

VIET

N

AM

6.77.031.5

34%

7.06.73.3

21%

CAM

BO

DIA

1.90.65.6

100%

SIN

GAP

ORE

5.06.023.3

75%

MAL

AYSIA

-0.61.90.3

78%

BRU

NEI

40%

Key

Savills Vietnam | 3

Retail Density (m2/pax) | Source: Savills

Source: GSO, 2017

EVOLVINGLow retail density with growth potential to catch regional peers.

Overpriced, Unavailable? Shoppercations Affecting Performance

Source markets

15.4

12.7

11.1

9.9

9.4

8.7

8.3

7.3

6.8

6.6

3.5

Singapore

Bangkok

Tokyo

Taipei

Seoul

Bali

Phuket

KualaLumpur

Sydney

Hongkong

HCMC

Chinese27%

South Korea15%

US Taiwan6% 5%

Japan7%

Top ten APAC cities by tourist spend (US$ billion)

Source: Mastercard, 2017

Source: GSO, 2017

US$18 US$7.5 Inbounds Vietnamese touristsoverseas spendbillion billion

1

2

3

4

5

6

7

8

9

10

20

International visitor yearly growth up: 18%.

Bangkok Singapore Beijing Kuala Lumpur Jakarta Ha Noi HCMC

0.89 0.75 0.65 0.64 0.44 0.17 0.13

4

Retail Density (m2/pax) | Source: Savills

Source: GSO, 2017

EVOLVINGLow retail density with growth potential to catch regional peers.

Overpriced, Unavailable? Shoppercations Affecting Performance

Source markets

15.4

12.7

11.1

9.9

9.4

8.7

8.3

7.3

6.8

6.6

3.5

Singapore

Bangkok

Tokyo

Taipei

Seoul

Bali

Phuket

KualaLumpur

Sydney

Hongkong

HCMC

Chinese27%

South Korea15%

US Taiwan6% 5%

Japan7%

Top ten APAC cities by tourist spend (US$ billion)

Source: Mastercard, 2017

Source: GSO, 2017

US$18 US$7.5 Inbounds Vietnamese touristsoverseas spendbillion billion

1

2

3

4

5

6

7

8

9

10

20

International visitor yearly growth up: 18%.

Bangkok Singapore Beijing Kuala Lumpur Jakarta Ha Noi HCMC

0.89 0.75 0.65 0.64 0.44 0.17 0.13

Ha Noi & HCMC forecast.

CBD

Non CBD

52%

27%

10%

15%

15%

6%

18%

57%

Occupancy

Vacant

Supermarket

Shopping Centre

Others

Deparment Store

98%

HA NOI2%

HCMC

87%

13%

45% 50%

30%27%

14%

16%

8%

9%

HCMC developing faster

Shopping centres dominate

High CBD premium supply

Abundant supply Abundant competition

2010

2017

2010

2017

Annual averagetake up 2014 -2016

Supply2018 - 2020

70,000m2

760,000m2HA

NO

I

Annual averagetake up 2014 - 2016

Supply2018 - 2020

120,000m2

650,000m2HCM

C

85%

15% US$35/m2/mth

94%

6%US$53

/m2/mth

Savills Vietnam | 5

Demographics, Globalisation & Technology

Large, growing youth skewed labour force changing demand dynamics

Tech users

Source: GSO, 2016

2009

2025

14%

64%

22%

67%

24%9%

0-14 15-59 60+

20162007

• Internet user (% Pop)

• Smartphone user (% Pop)

52%

20%

• Increasing credit card use

38%

Spare Time Online

Spare Cash Spend

Family

52% 48%

Smartphone

24%

Laptop/pc

21%

Sport &exercise

27%

Friends

12%

TV

9%

Music

2%

Other

38%

Fashion

32%

Hi-tech

41%

Travel

34%

Home Style

37%

Entertainment

9 Mil

Source: Ministry of Communication, 2017

Source: Infocus Mekong, 2017

Source: Nielsen, 2016

Source: Statebank, 2017

EVOLVING

6

Demographics, Globalisation & Technology

Large, growing youth skewed labour force changing demand dynamics

Tech users

Source: GSO, 2016

2009

2025

14%

64%

22%

67%

24%9%

0-14 15-59 60+

20162007

• Internet user (% Pop)

• Smartphone user (% Pop)

52%

20%

• Increasing credit card use

38%

Spare Time Online

Spare Cash Spend

Family

52% 48%

Smartphone

24%

Laptop/pc

21%

Sport &exercise

27%

Friends

12%

TV

9%

Music

2%

Other

38%

Fashion

32%

Hi-tech

41%

Travel

34%

Home Style

37%

Entertainment

9 Mil

Source: Ministry of Communication, 2017

Source: Infocus Mekong, 2017

Source: Nielsen, 2016

Source: Statebank, 2017

EVOLVINGGlobalization and international exposure encourages diversity and more brands

Adapting to & loving online retail

3%

4brands

38%

32%

17%

9%

149brands

2007 2016

Global brands eyeing Viet Nam. F&B, retail and services leading the charge.

Source: National Office of Intellectual Property of Viet Nam

Source: VECITA, 2017

Source: VECITA, 2017

Click & Buy E-commerce diversifying

2015 2020f

US$4 BIL

US$11 BIL

2013 2016

647

9013 13

13,510

682

9320

Online auction

Online shop Online promotion

Online trading

Special retail store

Restaurant

Education

Manufacturing

Services

Savills Vietnam | 7

Source: Euromonitor, 2017

Themerestaurants

23% ArtGallery13%

Clinic1%Outdoor

sport11%

Pet park15%

Organicgreenhouse

16%

Live Music9%

Indoor Sport11% Science

Museum1%

Consumption 2011 - 2016

Convenience store density (,000/store)

Wanting More

10% 10%

-2%7%

18%

13%

17%

Japan 2.3

Taiwan 2.4

Hongkong 5.3

Singapore 6.2

Thailand 6.9

China 24.9

Vietnam 54.4

Phillipines 40.9

Australia 8.7

Malaysia 7.4

Newzealand 3.1

South Korea 2.1 Source: Savills, Nielsen & National statistics, 2016

Source: Savills survey, 2017, sample size: 500

EVOLVING

Electronics Pharmacies JewelleryApparealModernGrocery

Lifestyle& Beauty

Leisure

8

AWARD WINNINGINTERNATIONAL RECOGNITION

Best Property Consultancy in Viet Nam8 consecutive years 2010 to 2018

Best Real Estate Agency in Viet Nam & APAC 8 consecutive years 2010 to 2017

Savills retained its title as The Times Graduate Employer of Choice for Property for ninth

consecutive year.

Savills has topped the real estate agents/advisors in the 2017 UK

Business Superbrand chart for the eighth consecutive year.

Ahead of all industry competitors

Savills Vietnam | 9

Sustainable retail development. When revenue exceeds gross occupancy cost. (GOC).

Total Selling Price

Margin

Construction

Land Cost

Investment Cost

OPERATING

DEVELOPMENT

Population DisposableIncome

FixedExpanses

DiscretionarySpending

CategoriesClothing

F&B

Health

ECONOMIC RENT

%

Entertainment

%

%

%

NOI

Net Lettable Areas (NLA) x $/m2 Rent

Net Operating Income (NOI) / % YIELD

Sales/Revenue

Gross OccupancyCost

AFFORDABLERENT

MARKETRENTMARKET

COMPARABLESAND BENCHMARKING

GOC

$/m2A. $/m2

B. $/m2

C. $/m2

Insurance

Tax

Wages

Rent

(Net Operating Income)

10

NOI

Net Lettable Areas (NLA) x $/m2 Rent

Net Operating Income (NOI) / % YIELD

Sales/Revenue

Gross OccupancyCost

AFFORDABLERENT

MARKETRENTMARKET

COMPARABLESAND BENCHMARKING

GOC

$/m2A. $/m2

B. $/m2

C. $/m2

Insurance

Tax

Wages

Rent

(Net Operating Income)

Savills Vietnam | 11

OUR SERVICES

This report is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. Whilst every effort has been made to ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The content is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills Research.

Troy GriffithsDeputy Managing Director

+84 (0) 933 276 663TGriffiths@savills.com.vn

Do Thu HangAssociate Director - Ha Noi

+84 (0) 912 000 530DThuHang@savills.com.vn

Please contact us for further information:

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