Ls Vietnam Cost Handbook 2015 PDF

LANGDON & SEAH VIETNAM CO LTD
1 2 3
Handbook Cover Photos:
1. The One - HCMC
2. German House - HCMC
4 5 3. Viet Capital Center - HCMC

4. Vivo City - HCMC
5. Saigon Center Phase 2&3 - HCMC
2
Copyright Statement and information ca-
veat
Eighth Edition 2015
Langdon & Seah Vietnam Co Ltd
All rights reserved. No part of this publication

may be produced, copied, stored or transmitted
in any form without prior written permission from
Langdon & Seah Vietnam Co Ltd.
The information contained herein should be

regarded as indicative and for general guidance
only. Langdon & Seah Vietnam Co Ltd makes
no representation, expressed or implied, with
regard to the accuracy of the information herein
and cannot accept any responsibility or liability
for any errors or omissions that may be made.
handbook are current as at 4th Quarter 2014.
3
TABLE OF CONTENT
Table of Content 4
Calendars 6
Introduction 7
1. CONSTRUCTION COST DATA
10
18
26
Construction Costs for Selected Asian Cities 28
36
Utility Costs for Selected Asian Cities 44
2. GENERAL CONSTRUCTION DATA
50
Import Duties 52
53
54
3. PROPERTY INVESTMENT
58
62
63
64
67
72
Contractor Selection Strategies 77
82
4
4. VIETNAM BUSINESS ENVIRONMENT
Language 92
Accounting System 92
93
95
Taxation 96
Insurance 100
105
5. OTHER INFORMATION
108
109
110
112
121
IDD Codes and Time Differences 122
Conversion Factors 124
Some Interesting Facts 126
127
Langdon & Seah Culture 131
Langdon & Seah Vietnam 10 Years Anniversaries 132
Professional Services 135
Directory of offices 139
Acknowledgement 150
5
CALENDARS
S M T W T F S S M T W T F S
2015
S M T W T F S
1 2 3 1 2 3 4 5 6 7 1 2 3 4 5 6 7
JAN FEB MAR

4 5 6 7 8 9 10 8 9 10 11 12 13 14 8 9 10 11 12 13 14
11 12 13 14 15 16 17 15 16 17 18 19 20 21 15 16 17 18 19 20 21
18 19 20 21 22 23 24 22 23 24 25 26 27 28 22 23 24 25 26 27 28
25 26 27 28 29 30 31 29 30 31
S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 31 1 2 1 2 3 4 5 6
5 6 7 8 9 10 11 3 4 5 6 7 8 9 7 8 9 10 11 12 13
APR
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
MAY
A
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
JUN
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30
1 2 3 4 30 31 1 1 2 3 4 5
5 6 7 8 9 10 11 2 3 4 5 6 7 8 6 7 8 9 10 11 12
JUL
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
AUG
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
SEP
13 14 15 16
20 21 22 23 24 25 26
27 28 29 30
17 18 19
1 2 3 1 2 3 4 5 6 7 1 2 3 4 5
4 5 6 7 8 9 10 8 9 10 11 12 13 14 6 7 8 9 10 11 12
OCT
11 12 13 14 15 16 17
18 19 20 21 22 23 24 NOV
15 16 17 18 19 20 21
22 23 24 25 26 27 28 DEC
13 14 15 16
20 21 22 23 24 25 26
17 18 19
25 26 27 28 29 30 31 29 30 27 28 29 30
S M T W T F S S M T W T F S S M
2016T W T F S
31 1 2 1 2 3 4 5 6 1 2 3 4 5
JAN FEB MAR

3 4 5 6 7 8 9 7 8 9 10 11 12 13 6 7 8 9 10 11 12
10 11 12 13 14 15 16 14 15 16 17 18 19 20 13 14 15 16 17 18 19
17 18 19 20 21 22 23 21 22 23 24 25 26 27 20 21 22 23 24 25 26
24 25 26 27 28 29 30 28 29 27 28 29 30 31
1 2 1 2 3 4 5 6 7 1 2 3 4
3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11
10
17
24
11
18
25
APR
12
19
26
13
20
27
14
21
28
15
22
29
16
23
30
15
22
29
16
23
30
MAY
A17
24
31
18
25
19
26
20
27
21
28
12
19
26
JUN
13
20
27
14
21
28
15
22
29
16
23
30
17
24
18
25
S M T W F T S S M T W T F S S M T T W F S
31 1 2 1 2 3 4 5 6 1 2 3
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10
17
24
JUL
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
16
23
30
14 15
21 22
28 29
AUG
16
23
30
17
24
31
18
25
19
26
20
27 SEP
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
16
23
30
17
24
30 31 1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9
16
23
10
17
24
OCT
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
13 14 15
20 21 22
27 28 29
NOV 16
23
30
17
24
18
25
19
26 DEC
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
16
23
30
17
24
31
6 INTRODUCTION
INTRODUCTION
future annually published handbooks, focuses on the
major cities in Asia.
The handbook is structured to serve as a general

reference guide on construction cost indicators in Asia.
The information contained in this handbook has been

compiled by Langdon & Seah Vietnam Co Ltd. Any
further information and/or if advice relating to particular
Langdon & Seah Vietnam Co Ltd
INTRODUCTION 7
CONSTRUCTION COST DATA
1
Construction Market 2015 Outlook
Major Rates for Selected Asian Cities
Construction Costs for Selected Asian Cities
M&E Costs for Selected Asian Cities
Utility Costs for Selected Asian Cities

1 CONSTRUCTION COST DATA
CONSTRUCTION MARKET 2015 OUTLOOK
Interestingly much of the global economic press has

focused more on politics in its forecast for 2015 rather
than economic growth. Although there will be global
growth in 2015 it seems few people are expecting
anything exceptional.
As we had predicted the global economy carried

mixed results in 2014. The developed world remained
pretty much the driver of global demand and despite
the scaling down of Quantitative Easing both in the US
and UK. Europe continued to struggle and Japan
continued to implement its fiscal and monetary
reforms but at a slower rate than hoped.
There were a number of issues affecting the Emerging

Markets and especially Russia and Brazil struggled.
China did not achieve its forecast growth rates yet its
GDP growth was higher than the other BRIC nations.
Global GDP is on the increase however and much of

the 2014 growth was carried by China and the other

Emerging Markets.
Vietnams GDP growth was quite strong at over 6%

and largely driven by exports and Foreign Direct
Investment. The domestic economy remained fairly
flat and with little access to credit.
12
THE GLOBAL ECONOMY 2015
Global GDP in 2015 will grow around 2.5% and the

fastest growing region will be Asia but few countries in
the region will improve upon their 2014 growth. China
will likely be the fastest growing major Asia economy at
7% growth.
The US and UK are likely to be the best performing

developed economies and Japan will continue its own
economic and structural reforms, we also expect a
greater level of QE in Europe. Ultimately the developed
economies will improve growth in Asian exports.
THE VIETNAM ECONOMY 2015
Vietnam will have one of the higher GDP growth rates in

the region at circa 6.5% and growth will continue to be
fuelled by exports and Foreign Direct Investment (FDI).
Investment particularly from Japan and South Korea
may be hampered by currency volatility. The banking
sectors non performing loans issues are being rectified
and as consequence we do expect an improvement in
money supply into the domestic economy.
THE VIETNAM CONSTRUCTION MARKET 2015
The market will continue to remain flat and due to

limited access to credit. We do expect a greater
FDI focus into property development including;
private investment into the residential market and
continued Overseas Development Assistance
(ODA) into the infrastructure sector.
Global commodity prices may improve in 2015 but

from a low base and accordingly this may affect
and increase construction costs but most likely in
the second half of 2015.
CONSTRUCTION COST DATA 13

11
16
12
LANGDON & SEAH VIETNAM CO LTD 1
2014)
80 1,800
70 1,600
1,400
60
1,200
50
1,000
40
800
30
600
20
400
10 200
0 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
5.10 2.57 2.84 3.14 3.00 3.19 4.55 6.84 12.00 21.30 71.73 22.63 18.60 12.70 12.18 20.82 17.33
2.47 0.98 1.31 1.71 1.27 1.14 1.22 1.97 4.67 6.04 11.50 10.00 11.00 10.05 10.00 10.55 11.20

285 327 391 555 808 791 811 970 987 1,544 1,557 1,155 969 919 980 1,175 1,427
14
40 4,500
35 4,000
30
3,500
3,000
25
2,500

20
2,000
15
1,500
10
1,000
5
500
28.04 10.75 36.59 36.71 32.71 17.97 14.16 6.65 10.93 7.94
11.81 3.68 11.84 10.45 8.33 5.84 4.51 2.93 2.61 3.13
2,353 478 2,454 4,063 1,342 548 860 371 712 1,082
13
FDI BY SECTORS AS OF NOVEMBER 2014
Registered Legal Legal

No. of
Sector Capital Capital Capital
projects
(mn US$) (mn US$) (%)
1 Industry and construction 13,945 230,207 76,020 92%
Manufacturing 9,407 138,578 47,436
Property 439 46,848 12,489
Accommodation 362 11,086 2,624
Construction 1,140 11,349 4,154
Mining 82 3,274 2,606
Electricity, gas and
water production and 96 9,749 2,072
distribution
Information and
1,065 4,095 2,289
Communication
Wholesale & Retail;
1,316 3,880 1,981
Repair
Water supply & Waste
38 1,348 369
treatment
Agriculture & Forestry &
2 516 3,658 1,822 2%
Aquaculture
3 Service 2,886 13,967 5,231 6%
Art & Entertainment 147 3,632 1,076
Logistics 431 3,711 1,140
Finance, Banking &
81 1,328 1,176
Insurance
Health care & Social welfare 97 1,755 424
Science & Technology 1,665 1,773 960
Education and Training 200 807 184
Administration & Support-
129 211 109
ing services
Others 136 751 162
Total 17,347 247,832 83,073 100%
(Source: Vietnam Investment Review)
18
Billion US$ 9

4
VIETNAM ANNUAL ODA
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014
2.20 2.15 2.40 2.40 2.46 2.83 3.44 4.44 5.43 5.91 8.06 3.52
1.24 1.35 1.65 1.50 1.52 1.42 1.65 2.18 2.25 4.10 3.54 3.65 3.65 4.50 4.11
(Source: Ministry of Planning and Investment)
19
15
Construction, % of GDP
Construction Value, US$Bn
e
e
Construction Value, US$Bn
Construction, % of GDP
Construction, Real Growth,
% of y-o-y
22
18
HO CHI MINH# KUALA LUMPUR BANGKOK# BRUNEI
DESCRIPTION Unit
VND RM BAHT B$
3
1. Excavating basement not exceeding 2m deep m 66,700 - 73,700 15 - 20 150 3.50
2. Excavating for footings not exceeding 1.5m deep m3 74,600 - 82,500 15 - 20 150 3.00
3. Remove excavated materials off site m3 68,300 - 75,500 20 - 25 120 3.00
3
m 346,800 - 383,300 60 - 70 600 43.00
5. Mass concrete grade 15 m3 1,360,800 - 1,504,000 230 - 270 2,500 124.00
6. Reinforced concrete grade 30 m3 1,765,500 - 1,951,300 260 - 320 2,800 130.00
7. Mild steel rod reinforcement kg 21,900 - 24,200 3.50 - 3.90 30 1.00
8. High tensile rod reinforcement kg 20,600 - 22,800 3.50 - 3.90 28 1.00
m2 178,600 - 197,400 35 - 45 450 15.00
m2 228,400 - 252,400 35 - 45 450 15.00

11. 112.5mm thick brick walls m2 185,200 - 204,700 40 - 48 800 17.50
MAJOR RATES FOR SELECTED ASIAN CITIES

12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m2 472,700 - 522,500 55 - 60 1,200 58.00
m2 2,660,000 - 2,940,000 350 - 500 7,000 160 - 210
14. Structural steelwork - beams, stanchions and the like kg 29,400 - 32,500 6.00 - 7.50 62 3.50
kg 32,400 - 35,800 6.00 - 7.50 62 3.20
2
16. 25mm Cement and sand (1:3) paving m 55,800 - 61,700 15 - 22 200 9.00

17. 20mm Cement and sand (1:4) plaster to walls m2 79,700 - 88,100 15 - 22 225 8.00
m2 232,600 - 257,100 50 - 70 1,200 33.00
m2 299,700 - 631,200 35 - 45 800 28.00
2
m 76,500 - 84,500 3.50 - 4.50 160 5.00
Average expected preliminaries % 8 - 12 6 - 12 12 - 18 5-8
The above costs are at 4th Quarter 2014 levels, exclusive of preliminaries and contingencies unless otherwise stated.
# Rates are nett of VAT
23
19
22
20
JAKARTA# MANILA SINGAPORE** HONGKONG BEIJING
DESCRIPTION Unit
RP000 PHP S$ HK$ RMB
3
1. Excavating basement not exceeding 2m deep m 35 350 16.50 210 26
2. Excavating for footings not exceeding 1.5m deep m3 45 300 16.50 190 31
3. Remove excavated materials off site m3 38 300 45.00 - 50.00 270 37
3
m 370 3,000 50.00 900 170
5. Mass concrete grade 15 m3 1,050 3,500 197.00 1,150 433
6. Reinforced concrete grade 30 m3 1,200 5,000 148.00 1,350 517
7. Mild steel rod reinforcement kg 12 48.00 1.45 - 1.55 10.30 5.00
8. High tensile rod reinforcement kg 12 49.00 1.45 - 1.55 10.30 5.00
m2 180 900 40.00 - 45.00 380 85
m2 160 850 40.00 - 45.00 380 73

11. 112.5mm thick brick walls m2 170 N/A 35.00 - 40.00 360 72

12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m2 250 950 43.00 850 N/A
m2 1,200 9,500 290.00 2,800 815
14. Structural steelwork - beams, stanchions and the like kg 27 115 4.80 - 5.80 36 11
kg 27 105 4.80 - 5.80 39 10
16. 25mm Cement and sand (1:3) paving m2 60 350 22.00 130 27

17. 20mm Cement and sand (1:4) plaster to walls m2 75 350 24.00 138 28
m2 160 1,200 74.00 350 140
m2 150 1,300 30.00 540 162
m2 27 400 3.50 - 4.00 55 32
Average expected preliminaries % 6 - 10 8 -15 13 - 17 10 - 15 7 - 10

# Rates are nett of VAT
** Rates are nett of GST
Manila - Item 13 - Aluminium with anodized finished, 6mm thick
Singapore - Item 5 - Rate for lean concrete blinding
Hong Kong - Item 3 - Rate including dumping charges
Beijing - Item 13 - Rate for double glazed window
25
21
22
SHENZHEN/ CHONGQING/
SHANGHAI SHENYANG
GUANGZHOU CHENGDU
DESCRIPTION Unit
RMB RMB RMB RMB
3
1. Excavating basement not exceeding 2m deep m 22 30 18 22
2. Excavating for footings not exceeding 1.5m deep m3 22 25 40 25
3. Remove excavated materials off site m3 105 60 45 35
3
m 150 180 130 150
5. Mass concrete grade 15 m3 400 442 360 410
6. Reinforced concrete grade 30 m3 500 484 400 500
7. Mild steel rod reinforcement kg 4.70 5.50 5.50 5.50
8. High tensile rod reinforcement kg 4.70 5.50 5.50 5.00
m2 75 80 65 90
m2 75 80 65 90
11. 112.5mm thick brick walls m2 85 57 50 70

12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m2 N/A N/A N/A N/A
m2 650 550 750+ 700
14. Structural steelwork - beams, stanchions and the like kg 11 12 10 11
kg 9 10 10 11.30
16. 25mm Cement and sand (1:3) paving m2 25 30 28 25

17. 20mm Cement and sand (1:4) plaster to walls m2 26 25 22 26
m2 145 140 130 165
m2 150 180 150 120
2
m 35 20 30 30
Average expected preliminaries % 5 - 10 5 -10 5 -10 5 -10
Shanghai - Item 11 - Rate for 120mm thick concrete block walls
Chongqing/Chengdu, Shenyang - Item 13 - Rate for double glazed window
23
22
24
DALIAN MACAU INDIA@ SEOUL^^
DESCRIPTION Unit
RMB MOP Rs KRW
3
1. Excavating basement not exceeding 2m deep m 28 120 160 1,890
2. Excavating for footings not exceeding 1.5m deep m3 33 140 180 1,890
3. Remove excavated materials off site m3 30 90 NA 9,800
3
m 170 1,100 3,725 28,900
5. Mass concrete grade 15 m3 420 1,200 5,150 63,100
6. Reinforced concrete grade 30 m3 500 1,200 6,050 76,500
7. Mild steel rod reinforcement kg 5.50 9.00 62 1,180
8. High tensile rod reinforcement kg 5.50 9.00 64 1,210
m2 92 250 550 27,200
m2 92 250 600 27,200

11. 112.5mm thick brick walls m2 70 300 860 43,800

12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m2 N/A N/A 1,325 38,500
m2 700+ 3,800 4,950 315,000
14. Structural steelwork - beams, stanchions and the like kg 11 35 98 1,550
kg 11 35 98 1,580
2
16. 25mm Cement and sand (1:3) paving m 37 120 380 3,100

17. 20mm Cement and sand (1:4) plaster to walls m2 40 130 310 8,900
m2 140 500 1,350 63,800
m2 140 550 1,000 26,000
2
m 32 130 180 7,790
Average expected preliminaries % 5 -10 6 - 12 8 - 12 6 - 11
@ All
Dalian - Item 13 - Rate for double glazed window
29
25
30
26
BUILDING OUTLINE SPECIFICATION
Apartment units with fit-out, including air-conditioning, kitchen cabinets and home appliances,
Apartments, high rise, average standard
but excluding decorative light fittings and loose furniture
Apartment units with good quality fit-out, including air-conditioning, kitchen cabinets and home
Apartments, high rise, high end
appliances, but excluding decorative light fittings and loose furniture
DOMESTIC
Houses with fit-out, including air-conditioning, kitchen cabinets and home appliances, but
Terraced houses, average standard
excluding decorative light fittings, loose furniture, garden and parking
Houses with good quality fit-out, including air-conditioning, kitchen cabinets and home appliances,
Detached houses, high end
but excluding decorative light fittings, loose furniture, garden and parking
OFFICE / painted wall and false ceiling.

COMMERCIAL
excluding
Industrial units, shell only (Conventional single excluding

storey framed unit) heating and lighting
INDUSTRIAL
excluding
industry and heating.
1) Interior decoration
HOTELS
excluded
CONSTRUCTION COST SPECIFICATION

Underground/basement car parks (<3 levels) RC structure
Multi storey car parks, above ground (<4 levels) RC structure, natural ventilaion, no facade enclosure
Schools (primary and secondary) Including fit-out and air-conditioning, but excluding educational equipment
OTHERS Students' residences Including fit-out, loose furniture and air-conditioning
Dry sports (no swimming pool) and are for 'leisure centre' type schemes including main sports hall,
Sports clubs, multi purpose sports/leisure
ancillary sports facilities, changing and showers, restaurant / cafe, bar, etc. Costs include a/c,
centres (dry sports)
Furniture, Fittings and Equipment (FF&E).

General hospitals - public sector Excluding medical and operating equipment
Notes:
1. The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that the actual cost
of a building will depend upon the design and many other factors and may vary from the figures shown.
2. The costs per square metre are based on Construction Floor Areas (CFA) measured to the outside face of the external walls / external perimeter including
lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
3. All bulidings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site condition.
The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.
4. The standard for each category of building varies from region to region and do not necessary follow that of each other.
5. All costs are in US$/m2 CFA. Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
31
27
32
28
US$/m2
DESCRIPTION KUALA
HO CHI MINH ## BANGKOK## BRUNEI JAKARTA#
LUMPUR
DOMESTIC
Apartments, high rise, average standard 595 - 745 385 - 580 672 - 855 825 - 1,133 670 - 760
Apartments, high rise, high end 755 - 870 935 - 1,120 977 - 1,160 1,019 - 1,327 925 - 1,050
395 - 465 275 - 390 489 - 611 534 - 842 360 - 465
455 - 555 910 - 1,115 824 - 1,008 812 - 1,120 970 - 1,170
OFFICE/COMMERCIAL
695 - 815 735 - 845 641 - 794 825 - 1,133 660 - 735
800 - 1,090 1,060 - 1,425 855 - 1,099 1,167 - 1,475 975 - 1,100
500 - 600 655 - 785 641 - 837 801 - 1,108 570 - 630
Retail malls, high end 645 - 845 805 - 1,045 840 - 901 1,056 - 1,364 630 - 680
HOTELS
1,050 - 1,290 1,225 - 1,690 1,160 - 1,282 1,560 - 1,868 1,150 - 1,360
1,290 - 1,565 2,125 - 2,455 1,466 - 1,679 2,200 - 2,508 1,570 - 1,750
1,665 - 1,935 2,360 - 2,725 1,710 - 2,443 2,259 - 2,567 1,680 - 1,900
CONSTRUCTION COSTS FOR SELECTED ASIAN CITIES

INDUSTRIAL
350 - 460 390 - 495 504 - 611 381 - 689 305 - 330
Owner operated factories, low rise, light weight 350 - 460 525 - 585 518 - 826 330 - 365
OTHERS

595 - 715 440 - 600 550 - 733 N/A 470 - 575
375 - 415 255 - 330 183 - 305 423 - 731 305 - 330
500 - 550 270 - 305 N/A 619 - 927 N/A
500 - 650 345 - 380 N/A 724 - 1,031 N/A
750 - 800 710 - 775 N/A 1,665 - 1,973 1,050 - 1,575
NA 1,060 - 1,300 N/A 1,871 - 2,179 N/A
Exchange Rate Used : US$1 = VND 21,333 RM 3.46 BAHT 32.75 B$ 1.26 IDR 12,150
The above costs are at 4th Quarter 2014 levels, inclusive of preliminaries and contingencies unless otherwise stated.
33
29
34
30
US$/m2
DESCRIPTION
MANILA* SINGAPORE** HONG KONG^ BEIJING$
DOMESTIC
Apartments, high rise, average standard 860 - 920 1,550 - 1,750 3,030 - 3,550 668 - 733
Apartments, high rise, high end 1,170 - 1,230 2,345 - 3,495 4,080 - 4,730 1,650 - 1,873
605 - 690 1,985 - 2,225 4,140 - 4,860 489 - 570
1,280 - 1,370 2,500 - 3,335 5,510 - 6,180 733 - 814
OFFICE/COMMERCIAL
820 - 870 1,985 - 2,185# 3,030 - 3,550 977 - 1,303
1,260 - 1,365 2,185 - 2,425 # 3,770 - 4,600 1,303 - 2,117
735 - 870 2,185 - 2,345 3,050 - 3,620 733 - 977
Retail malls, high end 1,080 - 1,120 2,345 - 2,580 4,080 - 4,790 1,303 - 1,792
HOTELS
1,180 - 1,375 2,460 - 2,660 3,870 - 4,210 1,059 - 1,303

1,270 - 1,375 3,135 - 3,575 4,080 - 4,790 1,792 - 2,280
1,575 - 1,650 3,135 - 3,575 4,790 - 5,510 2,280 - 2,932

INDUSTRIAL
450 - 460 835 - 1,075 570 - 651
Owner operated factories, low rise, light weight 480 - 510 2,350 - 2,960
OTHERS
510 - 560 1,075 - 1,470 2,230 - 2,820 814 - 896
460 - 510 755 - 1075^^ 1,380 - 1,640 489 - 570

690 - 765 2,540 - 2,690 570 - 733
690 - 765 1,825 - 1,985 2,440 - 2,820 407 - 570
1,180 - 1,425 2,265 - 2,425 3,740 - 4,330 977 - 1,303
1,350 - 1,475 3,135 - 3,295 5,060 - 5,720 1,303 - 1,629
Exchange Rate Used : US$1 = PHP 44.50 SG 1.26 HK$7.80 RMB 6.14
35
31
36
32
US$/m2
DESCRIPTION SHENZHEN CHONGQING
SHANGHAI$ SHENYANG$
GUANGZHOU$ CHENGDU$
DOMESTIC
Apartments, high rise, average standard 712 - 790 550 - 607 530 - 670 559 - 638
Apartments, high rise, high end 1,738 - 1,897 915 - 1,010 850 - 1,120 925 - 1,037
474 - 507 415 - 458 415 - 511 415 - 479
712 - 790 567 - 625 575 - 670 559 - 607
OFFICE/COMMERCIAL
948 - 1,264 801 - 886 880 - 1,040 878 - 958
1,264 - 1,580 1,101 - 1,217 1,120 - 1,520 1,197 - 1,357
762 - 842 690 - 895 718 - 798
Retail malls, high end 1,344 - 1,738 1,127 - 1,244 1,200 - 1,600 1,197 - 1,357
HOTELS
1,028 - 1,264 1,036 - 1,145 1,035 - 1,280 1,053 - 1,165

1,738 - 2,370 1,673 - 1,849 1,920 - 2,395 1,596 - 2,075
2,370 - 2,844 2,282 - 2,521

INDUSTRIAL
554 - 632 521 - 575 480 - 640
Owner operated factories, low rise, light weight
OTHERS

790 - 1,107 526 - 845 607 - 670
394 - 554 376 - 415 370 - 430 375 - 407
554 - 712 417 - 461
394 - 554 265 - 293
1,028 - 1,264 780 - 863
1,580 - 2,052
Exchange Rate Used : US$1 = RMB 6.14 RMB 6.14 RMB 6.14 RMB 6.14
Rates are exclusive of contingencies.
Houses are built to shell and core standard ONLY, where all tenant or occupant areas are unfurnished.
Schools (primary and secondary) are of public authority standard, no a/c and complete with basic external works.
33
38
34
US$/m2
DESCRIPTION
DALIAN$ MACAU*** INDIA@ SEOUL##
DOMESTIC
Apartments, high rise, average standard 606 - 702 2,065 - 2,528 505 - 580 1,250 - 1,550
Apartments, high rise, high end 1,150 - 1,261 2,879 - 4,406 765 - 920 1,500 - 1,900
446 - 511 3,529 - 4,205 345 - 370
606 - 671 4,293 - 5,594 455 - 480 2,260 - 3,450
OFFICE/COMMERCIAL
910 - 974 2,378 - 3,079 380 - 415 1,200 - 1,550
1,244 - 1,309 3,079 - 3,367 475 - 505 1,420 - 1,870
798 - 894 2,240 - 3,367 370 - 405 1,135 - 1,780
Retail malls, high end 1,230 - 1,389 3,529 - 4,255 520 - 565 1,360 - 2,210
HOTELS
1,085 - 1,181 3,166 - 3,579 715 - 795 1,680 - 2,010

1,836 - 2,075 4,293 - 5,131 1,115 - 1,325 2,360 - 4,080
5,131 - 6,308 1,415 - 1,565 2,720 - 4,430

INDUSTRIAL
295 - 350 670 - 825
Owner operated factories, low rise, light weight 315 - 370
OTHERS
1,877 - 2,753 245 - 265 975 - 1,035

391 - 407 1,039 - 1,364 190 - 210 570 - 690
2,065 - 2,403 240 - 265 1,830 - 1,970
1,652 - 1,915 265 - 295 1,080 - 1,200
530 - 555 1,475 - 1,580
580 - 635
Exchange Rate Used : US$1 = RMB 6.14 MOP 7.99 INR 62 KRW 1,107
Rates are exclusive of contingencies.
Houses are built to shell and core standard ONLY, where all tenant or occupant areas are unfurnished.
Schools (primary and secondary) are of public authority standard, no a/c and complete with basic external works.
39
35
40
36
KUALA
HO CHI MINH BANGKOK## BRUNEI JAKARTA$
LUMPUR
DESCRIPTION
VND/m2 RM/m2 BAHT/m2 B$/m2 RP000/m2
MECHANICAL SERVICES
1,641,000 - 2,339,000 360 - 470 4,500 - 4,900 189 - 236 870 - 1030
62 - 90 1,550 - 1,600 24 - 41 270 - 630
Hotels 290 - 460 4,800 - 5,200 305 - 351 870 - 1170
Shopping Centres 290 - 410 4,600 - 4,900 216 - 257 770 - 930
Apartment 1,331,000 - 1,796,000 210 - 295 4,500 - 4,600 223 - 257 770 - 1000
ELECTRICAL SERVICES
1,990,000 - 2,373,000 225 - 465 3,400 - 3,600 243 - 305 700 - 940
144 - 160 1,950 - 2,200 203 - 243 400 - 620
Hotels 255 - 600 3,900 - 4,350 305 - 398 710 - 1000
Shopping Centres 205 - 275 2,800 - ,3050 231 - 331 620 - 780
Apartment 1,755,000 - 2,217,000 88 - 220 3,100 - 3,520 263 - 331 700 - 940
HYDRAULIC SERVICES
273,000 - 519,000 26 - 55 790 - 950 17 - 41 170 - 260
M&E COSTS FOR SELECTED ASIAN CITIES

37 - 46 750 - 790 11 - 20 100 - 180
Hotels 180 - 245 1,500 - 1,750 64 - 88 710 - 1000
Shopping Centres 26 - 32 810 - 950 13 - 43 170 - 260
Apartment 531,000 - 629,000 18 - 45 1,205 - 1,420 40 - 63 700 - 1010
FIRE SERVICES
632,000 - 1,049,000 60 - 80 790 - 860 33 - 41 230 - 350
45 - 65 730 - 750 13 - 20 100 - 180

Hotels 65 - 95 790 - 890 27 - 51 240 - 350
Apartment 431,000 - 543,000 20 - 25 790 - 890 27 - 54 240 - 280
LIFTS/ESCALATORS
591,000 - 1,127,000 88 - 400 1,100 - 1,150 9 - 33 370 - 1010
55 - 190 4 - 20
Hotels 85 - 370 1,100 - 1,190 13 - 47 370 - 940
Shopping Centres 1,202,000 - 1,702,000 85 - 110 230 - 490 13 - 38 280 - 750
Apartment 671,000 - 971,000 63 - 105 500 - 580 11 - 27 360 - 750
The above costs are at 4th Quarter 2014 levels, exclusive of contingencies unless otherwise stated.
** Excludes special power supply.
Based upon
41
37
42
38
MANILA^ SINGAPORE^^ HONG KONG BEIJING
DESCRIPTION
2 2 2
PESOS/m S$/m HK$/m RMB/m2
MECHANICAL SERVICES
3,000 - 5,000 180 - 290 1,900 - 2,650 760 - 1050
650 - 1,500 35 - 130 150 - 250 170 - 280
Hotels 3,000 - 6,500 150 - 325 2,100 - 2,600 910 - 1150
Shopping Centres 2,125 - 4,500 170 - 285 2,200 - 2,700 790 - 950
Apartment 600 - 3,000 100 - 190 800 - 1,650 140 - 380
ELECTRICAL SERVICES
3,300 - 6,000 175 - 280 1,650 - 2,400 460 - 703
2,000 - 3,500 55 - 145 600 - 850 320 - 450
Hotels 4,700 - 9,000 200 - 385 1,900 - 2,600 705 - 943
Shopping Centres 3,060 - 6,000 170 - 330 1,800 - 2,400 481 - 676
Apartment 3,600 - 6,300 110 - 250 1,050 - 1,650 253 - 398
HYDRAULIC SERVICES
900 - 2,000 30 - 60 400 - 500 95 - 140

700 - 1,300 20 - 40 300 - 400 95 - 140
Hotels 1,950 - 4,000 100 - 195 1,200 - 1,600 370 - 480
Shopping Centres 595 - 1,400 50 - 90 400 - 500 140 - 200
Apartment 1,400 - 2,700 80 - 160 850 - 1,300 170 - 230
FIRE SERVICES
650 - 1,200 35 - 60 550 - 700 180 - 265
600 - 900 25 - 55 400 - 500 150 - 225

Hotels 650 - 1,100 30 - 60 600 - 850 220 - 375
Apartment 600 - 1,300 25 - 55 150 - 250 70 - 135
LIFTS/ESCALATORS
1,600 - 2,900 70 - 180 700 - 1,200 294 - 577
45 - 115 550 - 750 145 - 400
Hotels 1,800 - 3,000 55 - 120 550 - 850 232 - 520
Shopping Centres 595 - 2,000 60 - 100 850 - 1,000 327 - 520
Apartment 800 - 2,100 45 - 125 450 - 850 175 - 289

^ Transformer included in Electrical Services.
43
39
44
40
SHENZHEN CHONGQING
SHANGHAI MACAU
GUANGZHOU CHENGDU
DESCRIPTION
RMB/m2 RMB/m2 MOP/m2 RMB/m2
MECHANICAL SERVICES
761 - 966 750 - 1,019 700 - 1,000
173 - 289 147 - 263 150 - 250
Hotels 971 - 1,265 1,050 - 1,313 2,400 - 2,800 750 - 1,200
Shopping Centres 1,050 - 1,103 693 - 935 2,000 - 2,600 600 - 1,000
Apartment 310 - 410 120 - 373 800 - 1000 100 - 300
ELECTRICAL SERVICES
593 - 651 520 - 750 450 - 700
305 - 431 300 - 436 300 - 400
Hotels 651 - 830 667 - 898 2,400 - 2,800 550 - 800
Shopping Centres 520 - 651 473 - 640 2,400 - 2,600 450 - 700
Apartment 252 - 368 273 - 436 900 - 1200 250 - 350
HYDRAULIC SERVICES
110 - 163 120 - 163 70 - 130

89 - 131 84 - 110 70 - 120
Hotels 368 - 488 383 - 483 1,200 - 1,500 300 - 400
Apartment 168 - 226 142 - 252 750 - 1000 120 - 200
FIRE SERVICES
220 - 300 220 - 341 180 - 250
150 - 250 136 - 262 150 - 250

Hotels 280 - 380 273 - 405 800 - 1,000 200 - 330
Apartment 50 - 100 63 - 120 200 - 250 50 - 100
LIFTS/ESCALATORS
280 - 550 288 - 427 350 - 600
135 - 390 147 - 425 150 - 350
Hotels 220 - 495 236 - 456 600 - 800 300 - 500
Apartment 165 - 325 120 - 263 450 - 600 140 - 250
45
41
46
42
SHENYANG DALIAN SEOUL# INDIA@
DESCRIPTION
RMB/m2 RMB/m2 KRW/m2 INR/m2
MECHANICAL SERVICES
600 - 700 600 - 700 220,000 - 290,000 4,000 - 5,700
92,000 - 159,000 1,855 - 3,300
Hotels 700 - 800 700 - 800 215,000 - 340,000 4,950 - 5,400
Shopping Centres 600 - 900 600 - 700 149,000 - 245,000 3,850 - 5,050
Apartment 100 - 300 100 - 300 95,000 - 173,000 2,200 - 2,700
ELECTRICAL SERVICES
450 - 650 470 - 690 200,000 - 395,000 3,550 - 4,900
125,000 - 165,000 2,100 - 3,500
Hotels 700 - 900 720 - 920 300,000 - 490,000 3,950 - 5,400
Apartment 300 - 400 220 - 320 140,000 - 180,000 1,725 - 2,350
HYDRAULIC SERVICES
30 - 120 70 - 120 34,000 - 57,000 625 - 950

22,000 - 32,000 425 - 750
Hotels 200 - 300 200 - 300 71,000 - 110,000 3,250 - 4900
Shopping Centres 120 - 170 120 - 170 29,000 - 57,000 925 - 1,675
Apartment 100 - 200 100 - 150 49,000 - 75,000 1,450 - 2,000
FIRE SERVICES
150 - 230 150 - 230 35,000 - 68,000 990 - 1,300
28,000 - 35,000 475 - 625

Hotels 130 - 230 150 - 230 40,000 - 91,000 1,150 - 1,475
Shopping Centres 50 - 150 150 - 200 25,000 - 72,000 950 - 1,100
Apartment 50 - 130 60 - 150 33,000 - 68,000 525 - 630
LIFTS/ESCALATORS
300 - 550 300 - 550 40,000 - 64,000 825 - 1050
16,000 - 25,000 530 - 690
Hotels 300 - 500 250 - 350 110,000 - 175,000 1,200 - 1,750
Apartment 120 - 250 120 - 200 29,000 - 41,000 750 - 950
43
48
44
Exchange ELECTRICITY WATER FUEL
Rate Used Domestic Commercial/ Domestic Commercial/ Diesel Leaded Unleaded
COUNTRY Industrial Industrial
US$/kwh US$/kwh 3 US$/m3 US$/litre US$/litre US$/litre
US$1= US$/m
++
HO CHI MINH + 2013 VND 21,120 0.111 0.10-0.17 / 0.06-0.11 0.25 - 0.54 0.8 / 0.49 1.06+++ 1.13-1.15++++
++ +++ ++++
2014 VND 21,282 0.11 0.09-0.16 / 0.06-0.11 0.25 - 0.54 0.8 / 0.49 1.89 0.95-0.98
KUALA LUMPUR 2013 RM 3.19 0.068 - 0.142 0.123 - 0.135 0.179 - 0.627 0.649 - 0.715 0.63 N/A 0.66
2014 RM 3.46 0.063 - 0.165 0.110 - 0.147 0.165 - 0.578 0.598 - 0.659 0.645 N/A 0.653
BANGKOK 2013 Baht : 31.69 0.058 - 0.124** 0.084 - 0.086 0.268 - 0.456 0.300 - 0.499 0.946 N/A 1.244*
2014 Baht : 32.75 0.057 - 0.120** 0.081 - 0.083 0.260 - 0.441 0.290 - 0.483 0.867 N/A 1.014*
BANGALORE 2013 INR 63 0.039 - 0.093 0.102 - 0.118 0.238 - 0.572 0.952 0.921 N/A 1.238
2014 INR 62 0.043 - 0.093 0.115 - 0.123 0.242 - 0.580 0.967 0.920 N/A 1.120
BRUNEI 2013 B$1.24 0.008 - 0.12 0.058 - 0.162 0.088 - 0.355 0.492 - 0.532 0.306 0.411 0.427
2014 B$1.26 0.008 - 0.12 0.058 - 0.162 0.088 - 0.355 0.492 - 0.532 0.306 0.411 0.427
BEIJING 2013 RMB 6.13 0.08 0.13 0.65 1.01 1.23 n/a 1.31
2014 RMB 6.14 0.08 0.16 0.81~1.47 1.16 1.12 n/a 1.13
GUANGZHOU 2013 RMB 6.13 0.13 0.11/0.15 0.32 0.56 1.40 N/A 1.54
2014 RMB 6.14 0.1 0.16/0.11 0.32 0.57 1.18 N/A 1.31
UTILITY COST FOR SELECTED ASIAN CITIES

HONG KONG 2013 HK$ 7.80 0.1 0.12 0.83 0.59 1.61 N/A 2.12
2014 HK$ 7.80 0.1 0.13 0.83 0.59 1.57 N/A 2.10
MACAU 2013 MO P7.99 0.16 oo 0.16oo 0.55 to 0.66 o 0.66 ooo 1.68 N/A 1.52
2014 MO P7.99 0.17 oo 0.17 oo 0.55 to 0.78 o 0.70 ooo 1.44 N/A 1.94
0.101(peak) 0.186(peak)
SHANGHAI 2013 RMB 6.13 0.050(normal) 0.055(normal) 0.59 0.82 1.25 N/A 1.27-1.35
0.111(peak) 0.173(peak)
2014 RMB 6.14 0.055(normal) 0.082(normal) 0.48 0.6 1.10 N/A 1.12-1.19
CHONGQING 2013 RMB 6.13 0.08 0.13/0.139 0.57 0.74 1.2 N/A 1.16/ 1.30 *

2014 RMB 6.14 0.08 0.13/0.138 0.46 0.67 1.08 N/A 1.09/1.15 *
JAKARTA 2013 IDR 11,400 0.100 0.119 0.412 1.101 0.482 N/A 0.570
2014 IDR 12,150 0.125 0.125 0.807 1.033 0.617 N/A 0.700
MANILA 2013 PHP 43.20 **0.21-0.26' **0.21' **0.58-0.67' **1.47' 0.976 N/A 1.188
2014 PHP 44.50 **0.22-0.27' **0.21' **0.48-0.69' **1.47' 0.808 N/A 1.041
NEW DELHI 2013 INR 63 0.062-0.113 0.124-0.142 0.240-1.087 1.717-3.743 0.843 N/A 1.127
2014 INR 62 0.064-0.130 0.139-0.160 0.175-1.288 1.202-5.366 0.847 N/A 1.021
SEOUL 2013 KRW 1,058.40 0.06* 0.074* 0.387** 0.71** 1.28 N/A 1.78
2014 KRW 1,114.60 0.129* 0.154* 0.59* 1.52** 1.35 N/A 1.55
SINGAPORE^ 2013 S$ 1.25 0.21^ 0.21^ 1.44^^ 1.67^^^ 1.31^^^^ N/A 1.85^^^^^
2014 S $ 1.26 0.20^ 0.20^ 1.43^^ 1.65^^^ 1.21^^^^ N/A 1.76^^^^^
49
45
50
46
Notes
HO CHI MINH
+ All rates are VAT inclusive
++ Domestic electricity rates are applied to the 301 KW above wards.
+++ D.O- 0.05%
++++ 92&95 Unleaded petrol as at Oct 2012
BANGKOK
*
** For normal tariff with consumption not exceeding 150 kWh per month
BRUNEI
Electricity (Domestic) : Tariff effective from 1st Jan 2012. 1-10kwh 10c, 11-60kwh 8c, 61-100kwh 12c, above 100kwh 15c
GUANGZHOU
95
HONGKONG
MACAU
o Water: Consumption charge : US$0.55/m3 for 28m3 or below, US$0.62/m3 for 29m3 to 60m3, US$0.70/m3 for 61m3 to 79m3
and US$0.78/m3 for 80m3 or above; Other charges (Depending on meter size 15mm - 200mm) : Meter rental = US$0.34 - 58.00/month;
oo Electricity tariff are composition of demand charges, consumption charges, fuel clause adjustment and government tax
ooo Charges for ordinary users (e.g. Business, government buildings, schools, associations, hospitals and others) only.
Special users (e.g. gaming industries, hotels, saunas, golf courses, construction, public infrastructures and other temporary consumption) are excluded.

Notes (continued)
SHANGHAI
CHONGQUING
Unleaded 93# = US$1.09/litre; Unleaded 97# = US$1.15/litre
MANILA

SEOUL
below in use)
SINGAPORE
*
^ Electricity tariff is based on low tension power supply
^^ water
^^^ water
^^^^ As at 6 November 2014
^^^^^ 98 Unleaded petrol as at 6 November 2014
51
47
GENERAL CONSTRUCTION DATA
2
Material Price Indices
Import Duties
Progress Payments
Estimating Rules of Thumb

50
Steelbar (D12-D15) Concrete (Grade 250) Cement (PCB40)
Year Quarter Index Index Index
(Base 3 (Base (Base
VND/T VND/m VND/kg
QI/2008) QI/2008) QI/2008)
I 11,200,000 100.00 0.00% 100.00 0.00% 100.00 0.00%
2008 II 14,518,000 129.63 29.63% 116.80 16.80% 99.69
III 154.51 19.20% 904,000 14.36% 130.64 31.04%
IV 12,000,000 850,000 125.59 130.43
I 10,940,000 130.00 3.51% 1,255 128.59
2009 II 10,990,000 98.13 0.46% 130.00 0.00% 1,255 128.59 0.00%
III 11,820,000 105.54 130.00 0.00% 1,255 128.59 0.00%
IV 12,220,000 109.11 3.38% 130.00 0.00% 1,255 128.59 0.00%
I 12,452,500 111.18 1.90% 130.00 0.00% 1,255 128.59 0.00%
II 11,590,000 103.48 130.00 0.00% 1,218 124.80
2010 III 12,830,000 114.55 130.00 0.00% 1,209
IV 13,440,000 120.00 130.00 0.00% 1,209 0.00%
I 15,030,000 134.20 11.83% 130.00 0.00% 1,241 2.65%
II 131.52 130.00 0.00% 1,263 129.41
2011
MATERIAL PRICE INDICES
III 15,925,000 142.19 8.11% 143.32 10.25% 1,459 149.49 15.52%

IV 15,925,000 142.19 0.00% 143.32 0.00% 1,459 149.49 0.00%
I 15,925,000 142.19 0.00% 945,000 139.63 1,459 149.49 0.00%
II 15,925,000 142.19 0.00% 945,000 139.63 0.00% 1,546 158.40 5.96%
2012 III 16,320,000 2.48% 166.56 19.29% 1,600 163.93 3.49%
IV 16,320,000 0.00% 1,109,000 163.86 1,600 163.93 0.00%
I 16,320,000 0.00% 1,109,090 163.87 0.01% 1,600 163.93 0.00%
II 135.45 1,109,090 163.87 0.00% 1,600 163.93 0.00%
2013 III 15,170,000 135.45 0.00% 1,109,090 163.87 0.00% 1,600 163.93 0.00%
IV 14,470,000 129.20 -4.61% 1,109,090 163.87 0.00% 1,600 163.93 0.00%
I 14,470,000 129.20 0.00% 1,109,090 163.87 0.00% 1,600 163.93 0.00%
II 14,470,000 129.20 0.00% 1,109,090 163.87 0.00% 1,600 163.93 0.00%
2014 III 14,470,000 129.20 0.00% 1,109,090 163.87 0.00% 1,600 163.93 0.00%
IV 14,470,000 129.20 0.00% 1,109,090 163.87 0.00% 1,600 163.93 0.00%

(Source: Ho Chi Minh City Departments of Construction and Departments of Finance Year 2008-2014)
180.00
170.00
160.00
150.00
140.00
130.00
120.00

110.00
100.00
90.00
80.00
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2008 2009 2010 2011 2012 2013 2014
Steelbar (D1 D25) Concrete ( ade 250) Cement 40)
51
2 GENERAL CONSTRUCTION DATA
IMPORT DUTIES
SPECIAL TARIFF
VAT TARIFF
MFN/WTO
NON-ACFTA
NON-AKFTA
AANZFTA
DESCRIPTION
AJCEP
ACFTA
VJEPA
AKFTA
VCFTA
ATIGA
UNIT
AIFTA
(ALL FIGURES)
(1) (2)
Marble kg 12 0 5 10 15 12.5 19 14 16 10
(3) (2)
Granite kg - 0 5 10 15 12.5 19 14 16 10
Carpentry of Wood kg 3 0 5 - 5 - 5 3 5 5 2 10
Porland cement kg 37 5 - - - - 15 - 33 - - 10
Ceramic building bricks, 1000

35 5 - - 15 - 15 25 32 23 25 10
flooring blocks unit
Ceramic roofing tiles kg 45 5 - - 15 - 15 35 46 28 31 10
Ceramic floor, hearth, wall (4)

m2 45 5 - - 15 15 35 48 28 31 10
tiles
Ceramic sanitary fixtures of (5) (4)

kg 35 5 15 15 15 35 41 29 32 10
porcelain
Multiple-walled insulating
m2 20 5 - - - - 15 - 28 30 18 10
units of glass
Glass mirror (unframed) kg 25 5 - - - - 15 - 23 30 30 10

(6) (7)
Concrete steel kg 15 5 12.5 7 10 - - 4 0 10
U,I or H section of steel
kg 12 5 15 - - - - - 37 15 10 10
(height under 80mm)
Alluminium doors, windows,

m2 15 5 5 - 7 - 7 12 15 7 8 10
frames and thresholds
Air conditioner (window or

(8)
wall mounted) not unit 30 5 15 - - 15 18 33 11 9 10
exceeding 26,38 kW
(9) (9)
Passenger lifts unit 10 5 5 5 5 5 9 4 4.5 10
Water pump unit 20 5 5 - - - 15 27.5 24 17 19 10
(1)
Electric genset unit 20 5 12 - - 15 24 30 30 10
MFN/WTO : Most-Favored-Nation/World Trade Organisation

Normal Tax Rate = Favoured Tax Rate x 150%
ATIGA : ASEAN Trade In Goods Agreement/ ASEAN free trade area
ACFTA : ASEAN-China Free Trade Area
AKFTA : ASEAN-Korea Free Trade Area
AANZFTA : Australia-ASEAN-New Zealand Free Trade Agreement
AIFTA : ASEAN-India Free Trade Agreement
VCFTA : Vietnam-Chile Free Trade Agreement
AJCEP : ASEAN-Japan Comprehensive Economic Partnership
VJEPA : Vietnam-Japan Economic Partnership Agreement
(1)
: Cambodia, Thailand
(2)
: Thailand
(3)
: Cambodia, Indonesia, Thailand
(4)
: Myanmar
(5)
: Cambodia, Indonesia, Malaysia
(6)
: Cambodia, Lao, Malaysia, Thailand
(7)
: Indonesia, Myanmar
(8)
: Brunei, Cambodia, Philippines, Thailand
(9)
: Malaysia, Thailand
Where the MFN/WTO tax tariff of a goods item specified in the Import Tariff is lower than
Special tariff according to different trade agreement, the import tax tariff applicable to such
goods item shall be the MFN/WTO tax tariff.

PROGRESS PAYMENTS
The following graph and table are an indication of the

rate of expenditure for construction projects.
The rate of expenditure is an average rate and will
circumstances are taken into account.
No account has been made for retention.
Progress Claims
100%
80%
60%
40%
20%
0%
0% 20% 40% 60% 80% 100%
Project Period
CUMMULATIVE CUMMULATIVE
CONTRACT CONTRACT
PROGRESS PROGRESS
PERIOD
CLAIMS CLAIMS
GENERAL CONSTRUCTION DATA 53

ESTIMATING RULES OF THUMB

Structural Design Concrete Ratios
The following is a range of concrete ratios for building

superstructure design in Viet Nam.
3/m2 to 0.5 m3/m2
2/m2 to 3.0 m2/m2
3 to 250 kg/m3
Average External Wall/Floor Ratio

2/m2
2/m2
2/m2
Average Internal Wall/Floor Ratio

2/m2
2/m2
2/m2
Air - Conditioning
2
The above ratios are indicative and for reference purposes

only. They do not account for buildings with special shapes,
Indicative Dimensions for Sports Grounds
Length Width
Tennis Court 40 m 20 m
Volleyball Court 30 m 20 m
The above dimensions are for a single court with appropriate

clearance. No Spectator seating or support area has been
allowed.
Densities of Common Materials
Concrete 2,400 kg/m3 Water 1,000 kg/m3

Cement 1,441 kg/m3 3
Sand 1,600 kg/m3 3

3 3
3 Soil (compact) 2,100 kg/m3

Concrete Strength (in accordance with TCVN 3118 - 1993)
6,000 41 49 40 5,800 33
5,000 34 41 35 5,000 29
4,000 28 34 30 4,400 25
3,000 21 25 25 3,600 21
15 2,200 13
Reinforcement
Bar Dia. Weight/m Perimeter Area
(mm) (kg/m) (mm) (mm2)
8 0.395 25.13 50.26
20 2.466 62.83 314.16
32 6.313 100.53 804.25

40 9.864 125.66 1256.64
Composition of Concrete (per m3)
1:3:6 216 kg 0.45 m3 0.90 m3

1:2:4 308 kg 0.43 m3 0.86 m3
1:1:2 540 kg 0.38 m3 3
Average Loads Volume

Lorry (24 ton) 10.0 m3
Concrete truck (24 ton) 5.5 m3
3
Dimensions for Standard Parking Space,

Loading / Unloading Bays and Lay - bys
Light Vans 5m 2.5 m 2.4 m
Lorries 11 m 3.5 m 4.1 m

Container Vehicles 16 m 3.5 m 3.5 m
and the lower most projection from the ceiling including any
lighting units, ventilation ducts, conduits or similar.
GENERAL CONSTRUCTION DATA 55

PROPERTY INVESTMENT
3
Building Control and Procedures
Project Closed Out Procedures
Typical Submission Flowchart
Key Planning Parameter
Procurement Strategies
Contractor Selection Strategies
Property Overview
3 PROPERTY INVESTMENT
BUILDING CONTROL AND PROCEDURES
Project Classification
Projects are categorized based on the scale, nature

and source of fund in accordance with Appendix 01 of
the Decree 12/2009/ NDCP dated 10 February 2009.
Special projects under the jurisdiction of the Prime
Ministers Office encompass the most national import-
ant project and or top security project. Projects
classified as Group A under the jurisdiction of the
Ministers of Ministries encompass infrastructure and
ports (sea-ports and airports), oil and gas, cultural and
sensitive projects to national defense and all projects
over VND 500 billion, or equivalent to USD 25 million.
Group B projects encompass all other projects and fall
under the jurisdiction of Provincial Peoples Commit-
tees and require registration only for investment
licenses and applies to projects with a manufacturing
and export earnings component. A full assessment for
investment licenses is required for all other projects.
Project Investment Appraisal
Developers must carry out the project investment

report (feasibility study report) and the basic design for
project investment appraisal including the Planning
Certificate applied to the Peoples Committee of the
relevant province. The information of basic design to

be included encompasses address and description of
land plot, function of land plot, red-line boundary and
exit and connection with the existing transportation
and infrastructure including power, water, storm water
drainage, waste water treatment, overall dimension
and existing level, construction boundary, construc-
tion density, plot ratio, schedule of land use area and
schedule of floor area, maximum floor height and
building height, parking lot ratios, principle of architec-
tural, structure and infrastructure design, environmen-
tal impact plan, fire protection plan, design standards
and building codes. The project investment appraisal
is in accordance with the Circulation 03/2009/ TT-BXD
dated 26 March 2009.
Technical Design and Detailed Design
Developers using foreign design consultancies must

ensure their projects undergo a Design Evaluation
Assessment to the Ministry of Construction or the
Chairman of the Peoples Committee of relevant
province who will delegate to the Ministry of Construc-
tion or provincial Construction Department. The
Technical Design and Detailed Design must be in line
with the previous approved basic design including the
compliance of design standards and building codes,
the integrity of project, the well protection of environ-
ment and the safety in the event of fire circumstances.
The appraisal and approval of technical and detailed
design are in accordance with the Decree 15/2013/
NDCP dated 6 February 2013 and Circulation
13/2013/ TT-BXD dated 15 August 2013.
Construction Permit
Under the Law on Construction investors must first

obtain a construction permit issued by the Provincial
Peoples Committee Construction Department prior to
construction can commence.
The investor of residential development projects shall

submit an application dossier of all the mentioned
inclusion plus the certificate of EIA (Environment
Impact Assessment) and Fire Protection, which are
issued by the Provincial Department of National
Resources and Environment and Provincial Fire
Police Department respectively. An application
dossier shall contain design implementation drawings
and land-use right certificates and land rental
contracts. The basic inclusions are mandatory and
they are location and description of works, storey
height and height above sea-level, site boundary
PROPERTY INVESTMENT 59
BUILDING CONTROL AND PROCEDURES (contd)
demarcation, overall site plan, major cross

sections, main elevations, structural framing plans
and foundation designs, environmental and safety
technical details, principle of materials, schematic line
diagrams of infrastructure connection of power,
telecommunication, water supply, storm and waste
water drainage system, and quantities for key compo-
nents.. Construction Permit applications will be
checked against various compliances in respect of
boundaries and interference with neighboring proper-
ties and approved planning (site coverage, plot ratio
and car-parking). The issuing body should provide
timely notice to the investor of any non-compliance for
their remedy and resubmission to allow the implemen-
tation stage to commence. The content of application,
procedures of construction permit are in accordance
with the Decree 64/2012/ NDCP dated 4 September
2012 and Circulation 10/2012/ TT-BXD dated 20
December 2012.
Site Clearance
A plan for site clearance and/or resettlement shall be

submitted at the same time as the application for the

investment license and resettlement carried out prior
to site clearance taking place for construction. The
time limit for site clearance should comply with the
project implementation schedule. Resettlement is
based on the principle of providing similar or better
conditions and governmental regulations on
principles, methods and a price framework shall be
adopted by the Peoples Committee for determination
of compensation levels. This is a matter for great
uncertainty and foreign investors are advised to seek
vacant possession prior to transfer of land use right to
the joint venture.
Supervision of Construction
Independent Supervision of construction works by a

competent and registered firm is a mandatory require-
ment. The supervisory role encompasses quality
control and compliance checking, schedule control,
quantification control, safety and environmental
hygiene control during construction. The safety and
environment control are conducted regularly and
continuously during the implementation phase. The
Supervisor is also responsible for arranging indepen-
dent inspections witnessing of testing and commis-
sioning data and assistance in compilation of the
dossier for putting the building into operation and
receipt of the Occupation Permit.
Commencement of Construction
Construction of works may only commence after

satisfying the following conditions : the site area being
ready to be handed over, either in whole or in section
and free of encumbrances; a construction permit;
approved design drawings for execution of building; a
construction contract; sufficient capital funds to
ensure the building schedule in accordance with the
approved building schedule in the investment license;
measures to ensure safety and minimum environmen-
tal impact during the construction process. Construc-
tion All Risks and Third Party Liability Insurances as
well as all required insurances in accordance with
conditions of contract are recommended to be
effected prior to commencement of any physical
construction works on Site.
PROJECT CLOSED OUT PROCEDURES
Before an investor can receive rental income and

occupy the premises for its intended use, the receipt
of approval must be received by the provincial
Construction Department or the Ministry of
Construction depending on the category and size of
the project.
The Construction Department will receive a dossier

complete with independent testing and commissioning
data (prepared by an independent party not the
original designer) for piling, structure, electricity and
earthing, environmental impact with regard to water
and waste disposal, final checking and approval of fire
protection requirement. The dossier needs to have
Minutes to put the Building into Operation signed by
the Investor, Testing Body, Contractor and Designer
including the Project or Construction Manager if
appointed. The project close out procedure is in
accordance with Decree 15/2013 NDCP dated 6
December 2013.
TYPICAL SUBMISSION FLOWCHART
PROGRESS OF IMPLEMENTATION FOR CONSTRUCTION

INVESTMENT PROCEDURES FOR REAL ESTATE
PROJECTS LEVEL 1, SPECIAL LEVEL GROUP A
The Employer
[upon completion of the Basic Design]
The Employer can simultaneousty perform Step 1,1, 1, 1
(1) (1) (1) (1)
Request for written Report on Request for written approval Agreement on technical
comments on the fire assessment of on height of the building infrastructure connections includes:
protection measures environmental impact (Department of Combat - (no required time by law so the
(Fire Department (provincial Peoples Department of Defense Employer shall make their own
10 days) Committee 75 days) 15 days) arrangements)
(2)
Collect the approval
Agreement on location of
on the Basic Design
water supply connection
(Ministry of Construction
(Water Supply Company)
20 days)
(3)
Agreement on
Approval on Power Supply
Fire Protection (Electricity Company)
(Fire Department
15 days)
(4) Agreement on Drainage

System connection
Review on (Department of Transportation
Technical Design / Management Company)
(Ministry of Construction
40 days)
(5) Agreement on
communicaltions
infrastructure connection
Construction Permit (Department of
(Department of Information Center
Construction 20 days) / Managerment Company)
Note:
1. Date as above mentioned is considered as working days from the date of
sufficient and valld documents
2. The Employer can implement procedures for collecting of the agreements on
technical infrastructure connections after receipt of approval on the basic design,
However, if after the basic design approved by the Ministry of Construction that the
technical infrastructure managerment agency does not agree with the Employers
plan, then the Employer must change the plan for technical infrastructure connections,
leading to change in the basic design and to request the Ministry of Construction to
approve again on the basic design dossier. Therefore, the Ministry of Construction
recommends that the Employer should have in advance the written agreement on the
provision of electricity, water and drainage connections, transportation system
connection for the project, infrastructure communication connection before submitting
documents to the Ministry of Construction for approval on the basic design
KEY PLANNING PARAMETER
MAXIMUM SITE COVERAGE
Maximum site coverage of linked houses and villa houses
Land plot area

75 100 200 300 500
(m2/house)
100 90 80 60 50 40
coverage (%)
Maximum site coverage of condominium buildings
Building height Maximum site coverage (%) according

to land plot area
measured from
ground level (m) 10,000 18,000 35,000
2
m m2 m2 m2
65 63 60
19 60 58 55
22 55 52
25 53 51 48
28 50 48 45
31 48 46 43
34 46 44 41
44 42 39
40 43 41 38
43 42 40
46 41 39 36
>46 40 38 35
The maximum site coverage of urban public building such as

educational, healthcare, cultural buildings, sport centres and
market in the new urban development area is 40%.
lot must be complied with the current regulation.
Maximum site coverage (%) according
Building height to land plot area
measured from
3,000 10,000 18,000
ground level (m) 2
m m2 m2 m2
80 68 65
19 80 65 63 60
22 80 62 60
25 80 58 56 53
28 80 55 53 50
31 80 53 51 48
34 80 51 49 46
80 49 44
40 80 48 46 43
43 80 45 42
46 80 46 44 41
>46 80 45 43 40
For those built on a land plot of area <3.000m2, the site coverage
with the current regulation.
MINIMUM LANDSCAPING RATIO FOR CONSTRUCTION

LAND LOTS
Minimum of ratio for

Type of building
landscape (%)
20
house, villa)
20
30
30
30
3. Factory
20
20
KEY PLANNING PARAMETER (contd)
MINIMUM OF CAR PARKING LOT
Type of building Minimum car parking lot
4 bedrooms / 1 lot
standard upward
100m2
Super market, shopping 100m2

mall, conference centre,
exhibition, show room
and display center
1 apartment / 1.5 lot

condominium
MINIMUM OF PARKING SPACE
Minimum area of
Type of vehicle
parking space
Car parking space 25 m2
3 m2
0.9 m2
40 m2
Truck parking space 30 m2
For the hotel grade of below three-star, public admin-

istration office and public service buildings, the
numbers of parking lot must be at least 50% of the
parking lots specified in the table above
ROAD FOR FIRE PROTECTION
Width of road > 3.5 (m)
Clearance height > 4.25 (m)
Area for making U-turn > 15x5 (m)
BUILDING AREAS DEFINITIONS
Gross External Area (GEA)
Includes:
Areas occupied by internal walls and partitions

Columns, piers, chimney breasts, stairwells, liftwells,
and the like
Atria with clear height above, measured at base
level only
Internal balconies
access
Lift rooms, plant rooms, fuel stores, tank rooms which
are housed in a covered structure of a permanent
nature, whether or not above main roof level
main building
Loading bays
Areas with a headroom of less than 1.5m
Conservatories
BUILDING AREAS DEFINITIONS (contd)
Excludes:
Canopies
property
Gross Internal Area (GIA)
Includes:
Areas occupied by internal walls and partitions
other internal projections, vertical ducts, and the like

level only
corridors, smoke lobbies, etc.)
access
Lift rooms, plant rooms, fuel stores, tank rooms
which are housed in a covered structure of a
permanent nature, whether or not above main
roof level
Service accommodation such as toilets, toilet
lobbies, bathrooms, showers, changing rooms,
cleaners rooms, and the like
Loading bays
Areas with a headroom of less than 1.5m
Conservatories
Excludes:
Canopies
like in residential property
Gross Floor Area (GFA)
the internal structural face of the enclosing walls.
Includes:
Areas occupied by partitions, columns, chimney
and the like

Lift, plant, tank rooms and the like above main roof
slab
BUILDING AREAS DEFINITIONS (contd)
Note:
Sloping surfaces such as staircases, galleries,
tiered terraces and the like should be measured
Excludes:
of the building which are not enclosed spaces
the like). These should each be shown separately
should be shown separately.
Net Internal Area (NIA)
Net Internal Area is the usable area within a building

measured to the internal face of the perimeter walls
Includes:
level only
Entrance halls
Notional lift lobbies
usable areas
Area occupied by ventilation/heating grills

Area occupied by skirting and perimeter trunking
demountable partitions, whether or not perma

nent, and the like, where the purpose of the divi
sion is partition of use, not support, provided the
area beyond is not used in common
Excludes:
Those parts of entrance halls, atria, landings and
balconies used in common
Toilets, toilet lobbies, bathrooms, cleaners rooms,
and the like
Lift rooms, plant rooms, tank rooms (other than
those of a trade processcnature), fuel stores, and
the like
Corridors and other circulation areas where used

in common with other occupiers or of a permanent
essential nature (e.g. fire corridors, smoke lobbies,
etc.)
Areas under the control of service or other external
authorities including meter cupboards and statutory
service supply points
Internal structural walls, walls enclosing excluded
areas, columns, piers, chimney breasts, other
projections, vertical ducts, and the like
The space occupied by permanent and continuous
and ducting in so far as the space it occupies is

rendered substantially unusable
Areas with headroom of less than 1.5m
Areas rendered substantially unusable by virtue
fhaving a dimension between opposite faces of
less than 0.25m
Vehicle parking areas (the number and type of
spaces noted)
Building Footprint
but is generally understood to mean the area of the land

upon which the building sits (excluding all basements),
measured to the outside face of external walls.
PROCUREMENT STRATEGIES
Overview
The primary consideration in the choice of procurement

strategy is the need to obtain overall value for money
during the entire life of the facility and each method has
a different risk profile for the employer and contractor.
In Vietnam the following is currently prevalent.
Traditional Lump Sum - high extent

Management Contracting - low extent
Construction Management - medium to
high extent
Design and Construct - low extent
Prime Contracting - low extent
Framework Agreements - rising extent
Public Private Partnership (PPP) - new and
promoted extent
Most if not all projects in Vietnam are tendered in

competition and the process is covered by the Law of
Tendering promulgated in 2006 intended primarily for
state projects defined as over 30% total investment
capital by a state entity and for Vietnamese Private firms.
Foreign Investors do not need to follow the Law of
Tendering although it is advisable. The law recognizes
open tendering, limited tendering and competitive
tendering. For state projects tenders are normally sought
using a two-envelope system i.e. technical and financial

the former being opened first to check for compliances.
Most foreign entities short-list tendering contractors by

having a robust pre - qualification procedure for check-
ing financial and technical competencies. Tenders are
usually open for 90 days.
The FIDIC suite of contracts is widely used for Vietnam

construction contracts with the 1999 Red Book being
now widely accepted. There are official translations of
some of the FIDIC forms and the Vietnam Consultant
Association (VECAS) is an official member of FIDIC.
Most Official Development Aid (ODA) projects in
Vietnam adopt FIDIC also.
a) Traditional Lump Sum
Most contracts are let in Vietnam on a lump sum basis
using a modified FIDIC Contract which in its
unamended form is a measure and value contract.
This method requires appointment of independent
design consultants by the employer and a sufficiently
developed design preferably frozen prior to tender.
Bills of Quantities are usually provided for information
only to the contractor who normally provide their own
quantities with their tender for comparison purposes
only and only the rates are contract rates with any
errors and omissions not being subject to remea-
surement after the lump sum is finalized. Prime costs
sums for nominated subcontracts for mechanical and
electrical and lift sub-contracts are widely used.
b) Construction Management
This form of procurement is often portrayed as
fast-track as tender packages are often let succes-
sively throughout the design process with no need to
wait until detail design is complete. A construction
management consultant is engaged normally for a
fixed percentage fee to procure and manage the
individual trade contracts which are placed by the
employer. This necessitates effective cost manage-
ment as the total construction budget is not finalized
until the final packages are let. The employer bears
not an insignificant risk in terms of price certainty,
delays, disruption, design and coordination problems.
Clients adopting this approach need to be conversant
with the local environment and have the requisite
in-house skills to deal with issues as they arise.
c) Framework Agreements
Framework agreements referred sometimes as
call-off contracts between investors with a pipe-line
of projects and contractors can result in significant
savings to both parties using any of the procurement
options above. The advantages are time reduced for
tendering and negotiations, improved processes and
knowledge transfer, bulk order costs savings, reduced
confrontation and economies of scale due to continui-
ty of workflow. All these advantages are extremely
important in the Vietnam context because it is of
paramount importance to maintain healthy relation-
ships between employers and contractors as unfore-
seen events are prevalent during the design and
procurement stages in Vietnam.
PROCUREMENT STRATEGIES (contd)
d) Public Private Partnership (PPP)

PPP is the generic term for the relationships formed
between the private sector and public bodies often with
the aim of introducing private sector resources and / or
expertise in order to help provide and deliver public
sector assets and services. The term PPP is used to
describe a wide variety of working arrangement from
loose, informal and strategic partnerships to design,
build, finance and operate type services contract and
formal points of joint venture companies. The PPP
mechanisms would help attract commercial capital and
other sources of capital that private investors will seek for
PPP projects. In that way, investment efficiency will be
improved while public debts controlled at safe levels.
Investors of projects will be chosen via competitive
bidding in order to maximize benefits and create equal
opportunities for domestic and foreign investors. On 9
November 2010 the Prime Minister of Vietnam
authorized the issue of detailed regulations covering the
piloting of investment in the form of Public Private
Partnerships (PPPs) in Vietnam. The PPP Regulations
became effective on 15 January 2011 and will continue
to be implemented over the next three to five years. The
Vietnamese Government intends to carry out PPP
programme according to a list of defined projects to
ensure that investors are provided with carefully
prepared projects with a view to creating a real PPP
commercial market in Vietnam. In the coming years the
government will carry out some pilot projects. The PPP
projects in the country will concentrate on core technical

infrastructure that requires much capital, and further-
more, mechanisms to mobilize private investment: (i)
Roads, Road bridges, road tunnels, ferry road stations;
(ii) Railway, railway bridges, railway tunnels; (iii) Airports,
sea ports and river ports; (iv) Clean water supply
systems; water drainage systems; liquid and solid waste
collection and treatment systems; (v) Power plants,
electricity transmission cables; (vi) Hospitals; (vii) Other
infrastructure projects.
The draft decrees of PPP has been official submitted
to Prime Minister since October 2014 and hopefully
been approved soon to create solid legal frame work
to increase the trends of contribution of private fund
into the infrastructure works especially the major
infrastructure works.
Project Criteria Appropriateness of Contract Strategy
Design
Management Construction Prime Framework
Parameter Objectives PPP Tracditional and
Contracting Management Contracting Agreements
Construct
Timing Early Completion x x x
Cost x x x
Quality Design prestige x x x x
PROPERTY INVESTMENT
Variations Avoid prohibitive cost of change x x x x
Technically advanced or highly

Complexity x x x
complex building
Single contractual link x x x
Need for design team to report

x x x
Table A - Procurement Strategy
to sponsor

Desire to transfer complete risk x x x

Avoidance
Damage Facility to recover cost direct

x
from construction
Contractor input to economic

x x
construction
75
Table B - Risk Allocation

CONTRACTOR SELECTION STRATEGIES
There are four tiers of contractor available for tendering
Tier 1
Australia
Tier 2
Tier 3
Tier 4 State contractors
There is a considerable diversity between these tiers
and have much lower human resource costs. This is

inevitably leading to higher tender returns. A rigorous
weighted scoring in line with project objectives eg.

lowest cost objective will have an inevitable impact
(indicative weighting for Vietnam 1 through 10,

10 highest)
Vietnam experience (if foreign) 8
Financial capacity (particularly local) 8
Direct labour strength (local and foreign) 6
CONTRACTOR SELECTION STRATEGIES (contd)
Cognizance of international procedures, codes and
Financial capacity (local)
Local contractors now have access to bank funding
interim payments. Deductions for defective works
so careful diplomacy is often more productive. Claims

for additional costs due to prevailing market conditions
are more common in todays climate but also for
misinterpretation of contract obligations making the
Plant and Equipment Inventory (local)
State firms tend to share or pool plant and equipment

for example tower-cranes and piling rigs. It is often

impossible to determine the true owner of plant and
equipment on-site in the event of premature demobili-
zation.
size, capacity and suitable state of repair as contractors
Direct labour strength (local)
unskilled and untrained workers from remote provinces,
who often are not legally resident at their working
destination.
Contractors should be asked to prove their direct labour
arrangements. The tier 1 contractors will not have
2 contractors often import workers from their home

country for the project duration and shall be responsible
for all associated costs and taxes.
Labour is not usually permitted to reside on site.

Contractors shall provide details of training curriculums
for each trade discipline when tendering as well as
health and safety programmes.
Proposed sub-contracting arrangements (local)
to check the percentage of work subcontracted out
contractors largely act as management function

providing only project engineers, site supervisors,
and local contractors rarely directly employ foremen,
These arrangements are perfectly normal and accepted

but it is preferable to know in advance the exact
ar
interests with other projects and to understand fully the
amount of control the appointed contractor has on the
works he is engaged to undertake.
Planning and programming capability (local)
CONTRACTOR SELECTION STRATEGIES (contd)
resourced planning is rarely used. The approach

adopted is often rule of thumb whereby planners
determine critical activity durations using their
knowledge of other projects. Floor/structure cycle
times are often inconsistent and the lack of recording
and reutilization of historical data means the planning
process can be crude at best. Time or delay is a
perennial problem in Vietnam sometimes due to
employer delays such as site clearance or permit issues
or neutral delays such as weather but contractor
culpable delays should not be of any surprise. The use
of critical path analysis, planned impacted analysis,
window analysis and collapsed asbuilt are not widely
known in Vietnam. This means time recovery analysis
and the implementation of acceleration measures are
not readily adopted and time for completion can
become unpredictable. The input of experienced
delays and formulating time recovery plans.
International experience (local)

from the source country. It is essential to determine the

degree of exposure local contractors have had to
international standards, procedures and indeed
expectations. The Vietnamese Codes and Standards
whilst detailed need to be used concurrently with
international standards such as American, Australian,
international standard project. There is no uniform and
bespoke set of standards depending on the investor

and his consultant source country. The appointed design
team will naturally look to use their familiar off the
be asked to list the standards they have successfully
built for the key trades and building elements. There
is a move to produce a set of consolidated Vietnamese
standards but this is some way off and the hybrid
approach will continue for some time to come.
mandatory Vietnam building code or standard. Design
to obtain local approvals. The contractors should also

be asked to list investments such as system formwork
and their use of recent technology and list previous
employers and consultants whom they have worked
with.
PROPERTY OVERVIEW
Vietnams gross domestic product grew 5.62% in the

first nine months of 2014. Coupled with accelerating
foreign investment, this helped to boost manufacturing
and exports and helped the country to counter low
credit growth.
According to the State Bank of Vietnam, by Septem-

ber 2014, credit to the real estate market had expand-
ed by 10.8% compared to the beginning of this year,
higher than the credit growth for the whole economy
(nearly 7%) and other sectors. However, credit
growth projected for the first eight months is only at
4.50% y-o-y, half of the target for 2014 despite
government efforts in gradually lowering lending rates
from 20% in 2011 to 13% currently.
Apart from the recovery in consumer confidence, the

performance of the economy is supported by invest-
ment in the manufacturing sector, which remains the
most significant sector for foreign investment,
accounting for almost 70% of total FDI. South Korea
has overtaken Japan as the biggest foreign investor.
Samsung has invested nearly US$8 billion in Vietnam
to date and Lotte Mart plans to double its current
number of stores to a total of 2020.
Following manufacturing, the real estate sector is

ranked second in terms of a destination for FDI to
Vietnam, accounting for 7.3%, equivalent to US$1.27
billion. Large amounts of money are expected to flow

into southern realty. Large current projects include:
Smart Complex by Lotte in Thu Thiem, HCMC (US$2
billion) and Amata City Long Thanh by Amata in Dong
Nai Province (US$530 million). There is additional
investment to ports in HCMC, which will be replaced
by mixed-use projects including Saigon New Port,
Khanh Hoi Nha Rong Port and Ba Son Shipyard.
OFFICE
In Q3 2014, the market welcomed only one Grade A

office building Lotte Center Hanoi in Ba Dinh District,
Hanoi while demand keeps being observed in the
market, vacancy reported improvements across all
sub-markets both on the yearly and quarterly basis. In
HCMC, the Grade A and B vacancy rate decreased by
0.6 percentage points (pps) quarter-on-quarter (q-o-q)
and 3.6 pps year-on-year (y-o-y). Hanoi also saw a
positive improvement in Grade Bs occupancy rate
due to some large occupiers taking over space in
several buildings. Rents being more affordable and
attractive incentives from landlords motivated
commercial tenants to move from villa-type offices to
professionally managed office buildings. Besides,
tenants are paying more attention to buildings in
Midtown and the West for lower rents. Preferred office
area reported from 200sm to 300sm. Hanois Grade A
occupancy, on a contrary, recorded a decrease due to
the entrance of Lotte Center Hanoi with large leasable
office space of over 36,000 sm.
In HCMC, average rent showed a remarkable

improvement with Grade A increasing by 3.7% y-o-y,
1.8% q-o-q and Grade B increasing by 2.2% y-o-y and
being quite stable as compared to the previous
quarter. In Hanoi, Grade A rents in Midtown experi-
enced a sharp growth of 12.8% q-o-q in the review
quarter due to the entrance of Lotte Center Hanoi with
asking rent of US$39 psm pm. Whereas, asking rents
in both grades in other areas of the countrys capital
underwent declines ranging from 0.4% to 6.7%. On a
y-o-y basis, both Grade A and Grade B rents
witnessed significant drops of 4.9% and 5.9% respec-
tively.
Moving forward, it is anticipated that no new Grade A

and Grade B buildings will come online till early next
year. Delays in construction as well as launch of
several office projects relieved pressure for the Hanoi
market while in HCMC, a large proportion of new
supply showing good construction progress will be
owner-occupied. For this reason, the market will be
unlikely to suffer an increasing burden from new
competitors and landlords may maintain a position of
strength. Notable new supply will predominantly be
located in decentralized submarkets such as District 3
PROPERTY OVERVIEW (contd)
(Lim Tower 2), District 10 (Viettel Office and Trade

Center). Vietcombank Tower is the only notable office
project located in the CBD of HCMC. Last but not
least, it is now essential that aged office buildings
renovate their facilities and keep up with newer
offerings so as to be competitive to new buildings,
especially in the West of Hanoi.
Office Vacancy Rate (%), HCMC vs. Hanoi

VACANCY RATE
(%)
GRADE B GRADE A
Q3
2014 Q2
Q1
Q4
Q3
2013
Q2
Q1
Q4
Q3
2012
Q2
Q1
Q4
Q3
2011
Q2
Q1
50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50%
Source: CBRE Research, Q3 2014
RETAIL
The third quarter is a high contrast picture of retail

market in Hanoi and HCMC. In Hanoi, there were two
projects that were closed for restructuring, but two
remarkable new projects came online in Q3 2014.
While the renowned Trang Tien Plaza was temporarily
and partially closed to be re-positioned to improve
tenant mix after 16 months of operation since its
re-opening in April 2013, the opening of Lotte Depart-
ment Store created certain hype among Hanois
residents as this is the first department store under
Lotte brand name opened in Hanoi, integrated in a
65-level building with multiple premium F&B outlets
and entertainment services, including an observation
deck, sky walk and fine dining. Other newly-opened
retail project in Hanoi is the podium of Hoang Thanh
Tower, which is located in CBD area, is fully leased
out to four tenants, three of which are high fashion
brands, introducing to Hanoi two new retail entries
(Topshop, Topman and Oasis opened their first stores
in Hanoi), and one retail expansion.
In HCMC, new retail entries included Marks &

Spencer opening a 1,200 sm flagship store in Vincom
Center B and Caf Benes first store in Dong Khoi
Street, District 1. On the other hand, Saigon Tax
Trade Center is taken out of the retail sample for Q3
2014. This shopping centre officially closed on
September 25th, 2014 to provide space for a 40-sto-
rey skyscraper. The building is planned to have five
floors and 1.5 basements for a shopping centre
component with over 40,000 sm GFA.
In terms of market performance, the two cities experi-

enced different scenarios. In Hanoi, rents declined by
13.9% in the CBD and 2.0% in non-CBD areas. The
CBD saw such a significant drop only due to the
temporary closure of Trang Tien Plaza which offered
highest rent in shopping centre segment. Retail
occupancy also dropped by 1.8 pps q-o-q. Meanwhile,
in HCMC, both occupancy rates and CBD retail rents
showed improvements as the average rent of
shopping centres in the CBD increased 6.7% y-o-y.
Notably, five retail companies operating in Vietnam

have been chosen among 500 best-performing
retailers in Asia Pacific in 2014, according to an
announcement by Singapore-based Retail Asia

Publishing Pte Ltd and Euromonitor (Asia) Pte Ltd.
The ranking, based on the retailers revenues in 2013,
included Saigon Union of Trading Cooperatives
(Saigon Co.op) (US$1.1 billion), BigC under
French-based Casino Guichard Perrachon SA ($534
million), Nguyen Kim Trading Joint Stock Co ($490
million), Saigon Jewellery Co ($487 million), and
Mobile World Joint Stock Co. ($395 million).
Looking forward, retail space in the CBD is in high
demand in spite of high rents due to big retailers
preferences, particularly new entries. Luxury shopping
centres, besides location, should create better tenant
mix and offer more professional services to serve
sophisticated and discerning customers. According to
a CBRE survey, planned future retail developments in
HCMC in the next two years are only 50% of the levels
expected in Manila and Singapore and 12% - 15% the
levels expected in Tokyo and Bangkok. This will help
to support rental levels in HCMC, especially in CBD
areas.
Development Pipeline, Q3 2014

Development Pipeline (000 sm)
2,000
2015 2014
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Tokyo
Beijing
Jakarta
Penrth
Taipei
Auckland
Wellington
New Delhi
Shenzhen
Hanoi
Guangzhou
Shanghai
Singapore
Manila
Melbourne
Brisbane
Murnbai
Adelaide
Hong Kong
Ho Chi Minh City
Bangkok
Kuala Lumpur
Source: CBRE Vietnam, Q3 2014
RESIDENTIAL FOR SALE
Activities from developers and buyers were seen in

both Hanoi and HCMC residential markets. Active
launches and re-launches were held and well-attend-
ed by buyers even during the ghost month which, in
the traditional Eastern mind-set, is not a good time for
business activities. In Hanoi, 2,202 units were added
to total supply, while in HCMC, developers launched a
total 3,104 new units to the stock, making the 9-month
new launches since beginning of the year well surpass
the total new launches of the whole 2013 in both cities.
Meanwhile, re-launches of mid-end projects were
active in Hanoi with massive promotion programs and
deferred payment schemes were very common as
most of these projects are completed and buyers can
move in immediately.
Sales momentum remained strong despite the ghost

months tradition. In Hanoi, an estimated 2,550 units
were sold in the quarter, a slight increase of 2% as
compared to last quarter. In HCMC, an estimated
3,300 units changed hand, an 8.6% q-o-q increase.
Affordable segment led the rising wave in HCMC,
while mid-end projects were the main drivers for the
increase in number of transaction in Hanoi. Growth in
transaction of high-end condominiums was relatively
modest, comprising mostly of investors (either
buy-to-let or capital gain investors), who often try to
avoid selling or buying houses in ghost month.
Thanks to improving market conditions, prices on both

the primary and secondary markets started to show
tentative improvements on a q-o-q basis. In terms of
primary pricing, slight increase from 2.0% to 5.0%
y-o-y in tag prices was seen in many new launches in
both Hanoi and HCMC, especially those projects that
are completed and ready to move in. Although promo-
tions of bigger value are on offer, the increase in tag
prices shows that developers were more confident in
the market and in positioning of their projects.
Prices of resale apartments were also on an upward

trend with a slight 1.0% increase q-o-q in Hanoi and
approximately 2.5% increase q-o-q in HCMC. In
Hanoi, resale prices improved in most segments, and
strongest in mid-end apartments with 1.8% q-o-q
growth. (In Q1 and Q2 of the year, resale price

increase was stronger in luxury and high-end
segments.) The coming back of the mid-end segment
in resale price increase shows that resale buyers are
finding mid-end apartments more reasonable while
products are realized. Meanwhile, in HCMC, the
high-end segment showed a more positive picture
than the other segments as resellers found it easy to
find tenants and were confident about capital value
increases. In addition, housing is a favoured invest-
ment route for Vietnamese.
If 2013 showed early signs of recovery, especially in

the affordable housing sector, 2014 has seen a
complete turnaround due to some Government
policies in an effort to unfreeze the residential market.
Notable measurements include: lower home interest
rate; more transparent condominium measurement;
the extension to 15 years for loans from the
VND30,000-billion credit package; and mortgage of
future-built houses; etc. Basically the residential
market has gone on steroids with large local develop-
ments coming on line across districts 2, 4, 9 and Binh
Thanh and developers being able to sell more
mid-market units in the last four months than in the
last two years. The largest examples of this are at
Masteri Thao Dien in District 2 and at Vinhomes
Central Park in Binh Thanh in HCMC. Recently, the
National Assembly allowed all foreigners who are
granted a visa to Vietnam to buy residential properties
in the country. This together with other rescue

measurement from the Government will boost the
market confidence and bring a brighter outlook for
2015.
Hanoi, Q-o-Q changes in secondary prices
HCMC, Price changes of condominiums for sale
Source: CBRE Vietnam, Q3 2014.
VIENAM BUSINESS
ENVIRONMENT
4
Language
Accounting System
Banks
Government Administration
Taxation
Insurance
Workforce
4 FINANCIAL
LANGUAGE
borrowed from Chinese and the intonation is similar to

Cantonese. It is spoken by approximately 90% of the
Vietnamese population and ranked as the worlds 15th
most spoken language. English, however, is widely
used in the business community.
ACCOUNTING SYSTEM
Accounting records are required to be maintained in

VND. Foreign-invested business entities can select a
foreign currency to be used for their accounting
UHFRUGV DQG QDQFLDO VWDWHPHQWV SURYLGHG WKDW WKH\
PHHW DOO UHTXLUHPHQWV VSHFLHG LQ &LUFXODU
244/2009/TT-BTC issued by the Ministry of Finance
(MoF). Accounting records are required in Vietnam-
ese language, but this can be combined with a
commonly-used foreign language. At the end of a
QDQFLDO \HDU WKH HQWLW\ PXVW SHUIRUP D SK\VLFDO
FRXQWRILWV[HGDVVHWVFDVKDQGLQYHQWRU\
Companies operating in Vietnam are required to

comply with the Vietnam Accounting System (VAS).
It is possible to diverge from the standard VAS, but
WKLVLVVXEMHFWWRVSHFLFDSSURYDOIURPWKH0R)7KH
tax authorities treat VAS non compliance as a basis

for tax reassessment and imposition of penalties,
including withdrawal of CIT incentives, disallowance
of expense deductions for CIT purposes and
disallowance of input VAT credits/refunds.
7KHDQQXDOQDQFLDOVWDWHPHQWVRIDOOIRUHLJQLQYHVW-
ed business entities must be audited by an indepen-
dent auditing company operating in Vietnam. Audited
DQQXDO QDQFLDO VWDWHPHQWV PXVW EH FRPSOHWHG
ZLWKLQ GD\V IURP WKH HQG RI WKH QDQFLDO \HDU
7KHVH QDQFLDO VWDWHPHQWV VKRXOG EH OHG ZLWK WKH
applicable licensing body, MoF, local tax authority,
Department of Statistics, and other local authorities if
required by law.
92 FINANCIAL
BANKS
Banking industry of Vietnam is considered as young

in terms of integration to worldwide, until in 1990, it
was only restructured to separate the State Bank of
Vietnam from commercial banks. The State Bank of
Vietnam acts as a central bank and a supervisory
institution and is also a main share holder in
state-owned commercial banks (SOCB). Later,
more forms of commercial banks are established
especially after 2006 when Vietnam joined WTO.
With less than 5% of the population regularly using
banking service, and 10%-20% holding bank
accounts, it has provided good opportunities for
growth, however, competition in banking sector is
considered as very harsh. Besides Vietcombank,
Vietinbank, Agriculture Bank, BIDV as top of SOCB,
top joint stock banks can be named as ACB,
Sacombank, Techcombank, Indovina Bank as top of
joint venture bank. Nowadays, in the banking
sector, we can see a variety range of plenty
commercial banks including 4 biggest SOCB,
around 40 joint stock banks, and 40 foreign invest-
ed banks or branches of foreign banks, representa-
tive offices, 4 joint-venture banks in playground.
Although all the big names of foreign banks such as
Citibank, HSBC, Standard Chartered Bank, ANZ are
all presence in Vietnam, the banking system is still
characterized by the strong dominance of market
share by SOCB.
Official currency in Vietnam is VND, however, laws

allow local and foreign entities and individuals to
hold foreign currency at bank accounts as
deposit/savings and funds received/transferred from
foreign countries in freely. Nevertheless, domestic
payment, usage or cross border outward transfer of
foreign currency is prohibited or limited to certain
kinds of transactions and it requires supporting
documents.
FINANCIAL 93
4 FINANCIAL
BANKS (contd)
Banks can provide customers with all kinds of

services, however, it is more characterized by
commercial banking market rather than having a clear
division on investment banking and commercial
banking. Commercial banking services are such as
deposits, loans, trade finance, bank guarantees
Deposit can be made in both VND or foreign curren-
cies and deposit is including current account, saving
accounts and fixed deposit from 1 months to 24
months. Interest rate for VND is always higher than
foreign currencies (currently average VND interest
rate is 5%-7%p.a. compared to USD interest rate at
0.75%p.a). Loan services comprises of short term
loan (under 1 year), medium term loan (from 1 to 5
years) and long term loan (over 5 years). Loans in
foreign currencies (popular USD) are restricted to
companies who have the proceeds in foreign curren-
cy. Getting loans in USD is also always cheaper than
loans in VND especially for those who having source
of fund from their export. Banks always offer a credit
line to their customers to finance all their need in short
term working capital or long time investment in
machineries or factories. Credit line may be used for
loan disbursement, trade finance or bank guarantee
service. Trade finance can be listed as L/C service

(sight or usance L/C), bills for collection D/P or D/A,
L/C negotiation, shipping guarantee, factoring. The
most popular trade finance service in Vietnam is L/C,
D/P and D/A, while factoring service is rarely used.
Bank guarantee services are comprised of many
types, some commonly used in the economy are such
as bid bond, performance bond, warranty guarantee,
payment guarantee or advance payment guarantee
Fee for issuance of bank guarantee is 2% p.a. of the
guarantee value plus a small amount charge on
documentation. Customers can request banks to
issue for them a bank guarantee by deposit fund to
bank or from a credit line offered by bank.
94 FINANCIAL
GOVERNMENT ADMINISTRATION
The National Assembly is the highest representative

organ of the people and the highest organ of the state
elections. Sittings of the National Assembly are held

twice a year and have full constitutional and legislative
powers. The standing committee of the National Assembly
is responsible for enforcement of laws. Its functions
by the National Assembly from among its members to
from the representatives. The National Defense and

Security Council has the duty to mobilize all forces and
Assembly and shall report to the National Assembly,

the National Assembly standing committees and the
Assembly and has the term of 5 years. The Deputy
take on the State management of allotted branches
criminal court, civilian court, the court of appeal and

the assistant apparatus.
FINANCIAL 95
4 FINANCIAL
TAXATION
TAXATION IN THE REAL ESTATE INDUSTRY
I. Corporate Income Tax (CIT)
Organizations established in Vietnam deriving income

from transferring or leasing property are subject to
Corporate Income Tax (CIT) at the standard tax rate
of 22% from 1 January 2014. This rate will reduce to
20% from 1 January 2016.
A CIT rate of 10% shall be applicable to income from

selling, leasing and financial leasing of social housing.
Aside from this, real estate developers generally are not
given preferential tax rates, tax holidays or other tax
reductions except for special cases such as projects
located in poor social-economic regions or projects for
construction of residential houses for the poor or workers.
For advanced payment for properties under develop-

ment, real estate developers are required to pay
provisional CIT, either at 25% on provisional income if
the corresponding expenses can be determined and
matched with the revenue or 1% on advanced
payments if not. However, no revenue recognition is
allowed for the advance payment.
Where the enterprise sub-leases out a property, if the

lessee pays a lump sum for a number of years and certain
conditions are met then the lessor is able to recognise
revenue by one of two methods: (i) on allocated on a
year-by-year basis or (ii) a lump-sum basis.
Losses incurred in a given year can be consecutively

carried forward for 5 years. With effect from 1 January
2014, losses from real estate transfer activities can be
offset against the taxable income of other business
activities of the relevant tax year. However, the gain
from transfer of real estate is still required to be record-
ed and taxed separately without offsetting with loss
from other activities.
Land use rights (LURs) with indefinite terms may not be

depreciated for tax purposes. However, LURs with a
definite term used for production or business activities,
can be amortized over the prescribed land use duration.
Any gains from the revaluation of a LUR for capital

contribution purposes shall be determined as follows:
96 FINANCIAL
(i) For capital contribution for residential housing for
sale: the whole gain is recognized as other income at
once in the current tax period.
(ii) For capital contribution for production or business

activities, if the company receiving LUR is allowed to
depreciate such LUR, the whole gain is recognized as
other income at once in the current tax period.
Otherwise, the gains may be allocated to other income
over the period up to ten years.
II. Value Added Tax (VAT)
The transfer of a LUR without any related infrastructure

is not subject to VAT. Conversely, the transfer of LUR
with an infrastructure and building component is
generally subject to VAT at 10%. However, the land
value can be excluded from the revenue subject to
VAT. The determination of deductible land price for
VAT purpose varies depending on how the land was
acquired for the project.
Input VAT incurred for construction costs can generally

be claimed as an input VAT credit. Output VAT will also
be applied to the payment collection on schedule and
the deductible land value for VAT purpose is also
allocated accordingly.
The VAT rate of 5% applicable to contracts of

selling/leasing/financial leasing for social housing,
which satisfy the stipulated conditions.
III. Stamp Duty
Stamp duty is payable at the transfer of title of real estate

property by the buyer. Some specific transfers may be
exempted from the stamp duty. Stamp duty is imposed
at 0.5% on the value of the property up to VND 500
million (approx. USD 25,000) per asset per transaction.
IV. Foreign Contractor Tax (FCT)
Foreign companies with or without its permanent

establishment (PE) in Vietnam carrying out its business
activities in Vietnam, and/or deriving income in Vietnam
under a contract or agreement signed with a Vietnamese
organisation or individual, would be referred to as a
FINANCIAL 97
4 FINANCIAL
TAXATION (contd)
foreign contractor (FC), and subject to Vietnamese
FCT.
VAT and CIT are the two components of the FCT.

There are three tax filing and payment options: (i) Full
registration method with maintenance of books and
accounts in Vietnam under Vietnam Accounting
System; (ii) Deemed Withholding method and (iii) the
Hybrid method, which consists of paying VAT on the
conventional deduction method like a Vietnamese
company but paying CIT on a Deemed Withholding
method basis.
The Deemed Withholding method is the most common

one in practice by which the contracting Vietnamese
party is responsible for registering, withholding, filing
and paying the FCT due from each payment made to
the FC. The applicable rates vary depending on the
nature of goods and services provided. For projects
having a substantial portion of local purchases, the
Hybrid method is often applied so that the FCs can
claim credit on the input VAT incurred on local
purchases but can still pay the CIT on a deemed basis.
V. Personal Income Tax (PIT)
Generally, real estate (other than a property used as a

sole residential property and some other specific
exempt transactions) transferred by an individual is
subject to PIT. Property transactions subject to PIT
include the transfer of the right to buy, and the
transfer of the right to lease.
PIT exemption for transfer of sole residential property

is not applicable for (i) transfer within 182 days from
the date of having the right of ownership/LUR; and (ii)
transfer of house/apartment/construction work
completed in the future.
Typically, a Vietnam tax resident has to pay PIT for the

property transactions under one of the following two
methods:
(i) At 25% on the net gain assessed by the difference

between the transaction price less the cost and
relevant expenses; or
(ii) 2% on the transfer price, if the cost cannot be

determined.
98 FINANCIAL
However, recent practice has indicated that (ii) above
would apply in most cases.
No PIT declaration and payment are required in case

individuals/households having property for lease
earning annual rental of VND100 million or less
(approx. USD4,800 per year).
VI. Non-agricultural land-use tax
Non-agricultural land-use tax (NALUT) is generally

applicable to the following types of land: Non-agricultural
land used for residential, production or business purposes.
The calculation of the tax liability is generally based on

the land area, price of land (normally set by the provin-
cial-level People Committee and remains unchanged
within 5 years from 1 January 2012) and tax rate. For
residential land holding a multi-floor building or non-ag-
ricultural land holding a production or business
establishment, the applicable tax rate is 0.03%.
Organisations granted with LUR and existing land

users are required to submit NALUT declaration on a
yearly basis at the tax office of the relevant district no
later than 30 January of the following year. However, no
further declaration in subsequent years is required if
there is no change in tax payer or tax liability. If there is
any change, the tax payer is required to submit an
amended declaration within 30 days following the date
on which the change takes effect.
The tax payer may opt to pay the NALUT on one-off

basis a year no later than 31 May each year or twice a
year no later than 31 May and 31 October each year. If
the tax payer requests to pay the NALUT on one-off
basis for many years within a 5-year period, the
payment of tax may not be later than 31 December of
the year in which the request is made.
NALUT exemption and reduction can be granted to

certain types of land including land related to invest-
ment projects in the sectors eligible for special invest-
ment incentives, investment projects in geographical
areas with qualifying socio-economic difficulties and
other specific cases.
(Reproduced by kind permission of KPMG)
FINANCIAL 99
4 FINANCIAL
INSURANCE
Overview
Most risks that a company would insure anywhere

else in the world can be adequately insured for in
Vietnam. Rates and terms are generally a function of
the world market with due consideration given to
local factors however it should be noted that VAT of
10% applies to insurance premiums on policies
written within Vietnam. While the overall ability to
insure large or complicated risks entirely within
Vietnam is limited, the Vietnamese insurance
industry can nonetheless insure any size risk
through reinsurance arrangements with international
reinsurance organizations. The leading reinsurers
and those who carry more than 10% have to be rated
at least BBB by Standards & Poors or B++ by AM
Best or Baa by Moody's or equivalent.
Vietnam passed a comprehensive Insurance Law in

December 2000 which took effect on April 1, 2001.
The Amendment of Insurance Law has been passed
and was effective as at July 1, 2011. The key chang-
es are focused at keeping up with any WTO commit-
ments such as: the insurance market is professional
& open, foreign insurers are allowed to establish a
branch in Vietnam or issue an insurance policy into
Vietnam. However, the law gives the power to the
government to release detailed guidance and to
license such transactions. The Decree No.
123/2011/ND-CP was issued on 28 Dec 2011 to
provide guidance on the implementation of the

Amended Insurance Law. In addition, the govern-
ment issued Circular No. 124/2012/TT-BTC and
Circular No. 125/2012/TT-BTC on 30 Jul 2012 with
effective from 01 Oct 2012 to guide on the operation
and finance of the insurance market. The Decree
No. 98/2013/ND-CP effective from 15 Oct 2013
providing guidance on penalties for administration
offences in Insurance Business.
Construction All Risks (CAR) insurance, including the

covers for the Contract Work & Third Party Liability, is
popular in Vietnam. Recently, owners of larger projects
have shown interest in considering more technical
coverages such as Advance Loss of Profit (ALoP) /
Delay in Start-Up (DSU), to protect their anticipated
profit/fixed costs and Completed Operation/Product
Liability insurance liability of a particular project.
100 FINANCIAL
Since the real estate market was in hibernation
stage over the past years, construction insurance
program did not develop significantly. At the
moment, due to positive enactment of new law and
regulation from the government including Property
Law (Amendment) and Real Estate Commercial Law
(Amendment) which shall have effect from July 1st,
2015. In addition, mortgage loan for construction
and real estates will be also easy access as instruc-
tions of National Banks, the real estate market has
recovered positively and we are expecting promising
developments in construction insurance also
In another side, construction insurance premiums

tend to decline in recent years. This comes from
fierce competition between insurance companies
and tightening insurance costs of investors and
contractors. The international insurance companies
are hardly capable to compete on cost with the local
insurance companies. However, the international
insurance companies still have certain advantages
in projects requiring in-depth underwriting skills and
the ability to arrange with international re-insurers.
Construction insurance still tends to be left to the

contractor to arrange rather than the owner which
can give rise to gaps in cover when projects are
delayed or split into smaller packages. There may
also be gaps when the project passes from construc-
tion to operation.
Compulsory Insurances in Vietnam
Compulsory insurances are regulated in insurance

laws & some specialisedspecialized laws. Below is
the consolidation:
Fire and Explosion - (Article 8 of Law on Insurance

Business)
Motor Vehicle/Aviation carriers to passengers -
(Article 8 of Law on Insurance Business, Decree
103/2006/ND-CP/ Article 163 of Civil Aviation Law)
Civil Liability Insurance of those who deal in the
transport of passengers or cargo in inland water
ways - (Article 6 &7 of Decree 125/2005/ND-CP
and Article 58 & 126 of Marine Law)
FINANCIAL 101
4 FINANCIAL
INSURANCE (contd)
Professional Indemnity insurance for:
Insurance brokers - (Article 8 of Law on
Insurance Business)
Lawyers - (Article 8 of Law on Insurance
Business & Article 40 of Law on Lawyer)
Contractor to perform survey for construction
works - (Article 51 of Law on Construction)
Contractor to design for construction works -
(Article 58 of Law on Construction)
Contractor to supervise for execution of
building works - (Article 90 of Law on
Construction)
Securities companies - (Article 71 of Law on
Securities)
Fund management companies - (Article 72
of Law on Securities)
Auditing Companies - (Decree 105/2004/ND-
CP on independent auditor)
Enterprises on price assessment - Article
11 of Decree 111/2005/ND-CP on Price
assessment)
Medical examination and treatment
Insurance for Construction works:

Applicable to investors/developers - (Article
75 of Law on Construction)
Applicable to contractors - (Article 76 of Law
on Construction)
Applicable to parties who call construction
tender - (Article 104 of Law on Construction)
Professional insurance, civil liability insurance

and environmental damage compensation
liability insurance applicable to organizations
and individuals performing radiation jobs
Civil Liability Insurance and Environmental
Damage Compensation Liability Insurance
applicable to Organizations and Individuals
performing Radiation Jobs
Travel Insurance for Vietnamese traveling
overseas
Technically there is no requirement for worker

compensation insurance. However since there is a
liability regarding employees under the Vietnamese
labour law the purchase of worker compensation
insurance can act as a risk transfer method to
protect against these liabilities.
102 FINANCIAL
Market Players
Insurers
There are numerous domestic and foreign companies

licensed to provide non-life insurance, including
insurance for construction sectors in Vietnam.
State-owned:
Vietnam Insurance Corp (Bao Viet), Bao Minh
Insurance Corp (Bao Minh)
Group-controlled:
PetroVietnam Insurance Corporation (PVI), PG
Insurance (PJICO), Post & Telecommunication
Insurance JSC (PTI), Global Insurance Co. (GIC),
Vietnam Aviation Insurance JSC (VNI), SHB
Vinacomin Insurance JSC (SVIC)
Bank-based:
Vietinbank Insurance Co. (VietInsco), BIDV Insurance
Co. (BIC), Agriculture Bank Insurance JSC (ABIC),
Military Bank Insurance Company (MIC)
PrivateJoint Stock:
BaoLong Insurance Corporation (Bao Long), Vien
Dong Assurance Corp (VASS), AAA Assurance JSC
(AAA), Phu Hung Assurance (PAC), Hung Vuong
Insurance Corp (BHV), Great Mountant Insurance
JSC (GMIC)
Foreign:
Groupama, QBE, AIG, ACE, Liberty, Fubon, MSIG,
Cathay
Joint Venture:
Bao Viet Tokyo Marine (JV between Baoviet and
Tokio Marine), United Insurance Co. (UIC the JV
among Bao Minh, Sompo & LG), Samsung Vina
Insurance (JV between Samsung and VinaRe)
Reinsurer:
Vietnam National Insurance Corp (VinaRe).
FINANCIAL 103
4 FINANCIAL
Brokers
As insurance is best arranged through a licensed
insurance broker who can help companies to assess
the underlying risks and then arrange appropriate
insurance on their behalf, there are a number of
licensed insurance brokers.
International:
Jardine Lloyd Thompson (JLT), Aon, Marsh, Grass
Savoye Willis
Local:
Viet Quoc, A Dong, Thai Binh Duong, Sao Viet,
CIMEICO, Nam A
(Source: Vietnam Insurance Associate)

20.94%
PVI
Ba o Vi et
23.30%
Ba o Mi nh
9 44%
Other
3.87%
0.90%
BSH
PVI Reinsurance Joint Stock Corporation (PVIRe)
0.93%
UIC
1.12%
VASS
Non-life Insurance Market Share 2013

8.15%
PJICO
1.36%
MSIG
BVTM
1.18%
Ba o Long
1.54%
1.76%
6.07%
AIG
PTI
Sa ms ung Vi na
2.02%
GIC
3.77%
2.18%
ABIC
2.42%
Li berty
1.81%
1.84%
MIC
VNI
3.25%
2.17%
BIC
AAA
104 FINANCIAL
WORKFORCE
The estimated population of Vietnam in 2015 will be

circa 91.3 million (as the General Office for Population
Family Planning).
The region-based minimum wage level applied to

operating in localities of region is USD 147 per month
from 01st January, 2015 (Pursuant to the Decree No.
103/2014/ND-CP of the Government dated 11th
November 2014).
Pursuant to the Law No 46/2014/QH13 dated June

13, 2014 on amendments to some articles of the Law
on Health insurance No. 25/2008/QH12, from
January 2015, the monthly Health insurance rates
and responsibilities to pay health insurance of the
group whose insurance are paid by the employers
and employees must not exceed 6% of the monthly
salaries, 4% is paid by the employers and 2% is paid
by the employees. During the time the employees
are entitled to maternity leave due to maternity
benefits under the regulations of law on health
insurance, the maximum premiums equal to 6% of
their monthly salaries before the maternity leave
shall be paid by the health insurance organizations.
In accordance with the Law on Employment No:

38/2013/QH13 on 16 November 2013 with effective
date on 1 January 2015, a person on unemployment
allowance will stop receiving it when he/she has found
a job. The period of payment of unemployment
insurance premiums shall be reserved for calculating
the subsequent duration of receipt of unemployment
allowance. The reserved period equals the total of the
periods of payment of unemployment insurance
premiums minus the period during which the worker
has received unemployment allowance, with one
month of receipt of unemployment allowance equiva-
lent to 12 months of payment of unemployment
insurance premiums.
FINANCIAL 105
OTHER INFORMATION
5
Vietnam Map
Domestic Routes
Relevant Websites
Public Holidays
Prime Rates
IDD Codes and Time Differences
Conversion Factors
Some Interesting Facts
Vietnam Key Data
Langdon & Seah Culture

Langdon & Seah Vietnam 10 Years Anniversaries
Professional Services
Directory of offices
Acknowledgement
5 OTHER INFORMATION
VIETNAM MAP
(Source: Wikimedia)
108 OTHER INFORMATION

DOMESTIC ROUTES
DISTANCE FLIGHT TIME

MILES/KMS OUTBOUND RETURN
HA NOI TO
Da Lat 662/1065 1:40 1:40
HO CHI MINH CITY TO
Da Lat 133/214 0:50 0:50
Vinh 549/883 1:45 1:45

DA NANG TO
(Source: Vietnam Airlines)
OTHER INFORMATION 109

5 OTHER INFORMATION
RELEVANT WEBSITES
Ministry of Health Portal

The State Bank of Vietnam
Vietnam National Administration of Tourism

http://www.chinhphu.vn
http://www.mps.gov.vn
http://www.moha.gov.vn
http://www.moj.gov.vn
http://www.mpi.gov.vn
http://www.mof.gov.vn
http://www.moit.gov.vn
http://www.mard.gov.vn
http://www.mt.gov.vn
http://www.moc.gov.vn
http://www.monre.gov.vn
http://www.mic.gov.vn
http://www.molisa.gov.vn
http://www.cinet.gov.vn
http://www.most.gov.vn
http://www.moh.gov.vn
http://www.moet.gov.vn
http://www.mofa.gov.vn
http://www.sbv.gov.vn
http://www.gso.gov.vn
http://www.tcvn.gov.vn
http://www.vietnamtourism.com
http://www.customs.gov.vn
http://www.vr.org.vn

5 OTHER INFORMATION
PUBLIC HOLIDAYS
2015
VIETNAM
Normal Scheduled Holidays
Liberation Day of Saigon

International Labour Day
National Day
Christmas Day
# substitue for 21 Feb (Sat)
CHINA
Labour Day
National Day
* 2 - 3 January 2015 are holidays, 4 January 2015 is working day.

$ 21 - 24 February 2015 are holidays, 15 and 28 February 2015
are working days.
^ 6 April 2015 is holiday.
% 22 June 2015 is holiday.
@ As 27 September 2015 falls on Sunday, the deferred day off is
arranged together with National Day.
# 6 - 7 October 2015 are holidays, 10 October 2015 is working day.

2015
HONGKONG
19 Feb
20 Feb
21 Feb
03 Apr
04 Apr
The day following Ching Ming 06 Apr*
Festival
07 Apr
Labour Day 01 May
25 May
Tuen Ng Festival 20 Jun
01 Jul
The day following Chinese
28 Sep
National Day 01 Oct
21 Oct
Festival
Christmas Day 25 Dec

*As Ching Ming Festival in 2015 falls on a Sunday, the following day will
be designated as a general holiday in substitution. However, as the day
following Ching Ming Festival and Easter Monday fall on the same day,
the next following day that is not itself a general holiday will be observed
as an additional general holiday.

5 OTHER INFORMATION
PUBLIC HOLIDAYS (contd)
2015
MACAU
New Year's Day 01 Jan#*
Lunar New Year's Eve(Afternoon) 18 Feb@
Lunar New Year's Day 19 Feb#*
The 2nd day of Lunar New Year 20 Feb#*
The 3rd day of Lunar New Year 21 Feb*
The 4th day of Lunar New Year -
The 5th day of Lunar New Year 23 Feb#@
Good Friday 03 Apr#
The day before Easter 04 Apr
Ching Ming Festival 05 Apr*
The first working day after 06 Apr#@
the Day before Easter
The second working day after
Ching Ming Festival 07 Apr@
Labour Day 01 May#*
The Buddha's Birthday 25 May#
Tung Ng Festival (Dragon Boat Festival) 20 Jun
The first working day after
Tung Ng Festival 22 Jun@
Bank's Holiday 01 Jul#
The day following Mid-Autumn
Festival 28 Sep#*
National Day 01 Oct#*

The day following National Day 02 Oct
Chung Yeung Festival 21 Oct#*
All Soul's Day 02 Nov#
Feast of the Immaculate Conception 08 Dec#
Macau SAR Establishment Day 20 Dec*
The first working day after Macau
SAR Establishment Day 21 Dec#@
Winter Solstice 22 Dec
Christmas Eve 24 Dec#
Christmas Day 25 Dec#
New Year's Eve (Afternoon) 31 Dec@
# Banks Holiday
* Obligatory Holiday
@ Special Holiday Granted by Chief Executive for staff in Public
Administration

2015
BRUNEI
01 Jan
03 Jan
19 Feb
National Day 23 Feb
16 May
Forces Anniversary** 31 May

15 Jul
18 Jun
Anniversary of the
04 Jul
17 Jul
18 Jul
19 Jul
23 Sep
13 Oct
* Subject to Change
** Replacement for Fridays / Sundays
Fridays and Sundays are government off days
SINGAPORE
01 Jan
19 Feb
20 Feb
03 Apr
Labour Day 01 May
Vesak Day 01 Jun
17 Jul
National Day 09 Aug#
24 Sep
Deepavali* 10 Nov
* Subject to changes
# The following Monday will be a public holiday.

5 OTHER INFORMATION
2015
PHILIPPINES
A. Regular Holidays
01 Jan
02 Apr
03 Apr
09 Apr
Labour Day 01 May
Independence Day 12 Jun
18 Jun
31 Aug
24 Sep
30 Nov
30 Dec
B. Special Holidays
(Non-Working Holidays)
15 Feb
04 Apr
21 Aug
All Saints Day 01 Nov
All Souls Day (Additional) 02 Nov
Christmas Eve (Additional) 24 Dec

31 Dec

2015
MALAYSIA
New Year's Day **

Chinese New Year
Labour Day
Wesak Day
King/Agong's Birthday
Hari Raya Aidilfitri*
National Day
M alaysia Day
Hari Raya Qurban*
Awal M uharam (M aal Hijrah)
Deepavali*
Prophet M uhammad's Birthday
Christmas Day
* Subject to change
** Except Johor, Kelantan, Kedah, Perlis &Terengganu
# The following Monday will be an additional public holiday
INDONESIA
International Labour Day

Waicak Day
National Independence Day

Idul Fitri*
Idul Adha Day
Christmas Day
* Subject to changes

5 OTHER INFORMATION
2015
THAILAND
Special Holiday@
Songkran Festival
National Labour Day

Coronation Day
Chulalongkorn Day
Constitution Day
# Banks only
+ Government only
@ Special Holiday Granted by Thai Government
- Substitute for 5 December 2015(Saturday)

2015
INDIA
Sankranthi
Ugadi
Independence Day
Deepavali
Christmas Day
KOREA
Childrens Day
Liberation Day
National Foundation day
Christmas Day

5 OTHER INFORMATION
2015
TAIWAN
Founding Day
Childrens Day
Double Ten Day
*When the memorial day or holiday falls on a Saturday or

Sunday, a deferred day off will be granted. If a memorial day or
a holiday falls on a Saturday, the deferred day off is on the
preceding workday; if a memorial day or a holiday falls on a
Sunday, the deferred day off is on he following workday.
However, the deferred days off for Chinese New Years Eve
and Chinese New Year are always on the following workdays.

PRIME RATES (as at 4th Quarter 2014)
RATE (%)
COUNTRY 4Q 4Q 4Q 4Q 4Q
2010 2011 2012 2013 2014
Australia* 4.75 4.50 3.25 2.50 2.50
5.50 5.50 5.50 5.50 5.50
China** 5.60 6.90 6.40 6.15 6.15
Egypt *** 9.75 10.25 10.25 9.75 10.25
5.00 5.00 5.00 5.00 5.00
India 8.50 14.75 9.75 8.75 10.25
Indonesia 6.50 6.00 5.75 7.50 7.75
1.60 1.60 1.20 1.20 1.15
5.25 5.25 5.25 5.25 5.25
6.30 6.60 6.60 6.60 6.85

New Zealand^ 10.47 10.01 9.57 9.57 10.46
13.52 13.97 11.29 10.38 10.00
6.540 5.740 5.320 4.662 4.360
Singapore 5.38 5.38 5.38 5.38 5.35
South Africa 9.00 9.00 9.00 9.50 9.50
2.38 3.25 2.76 2.50 2.00

Thailand# 6.56 7.71 7.52 7.51 7.28
0.50 0.50 0.50 0.50 0.50
United States of 3.25 3.25 3.25 3.25 3.25
America
Vietnam## 9.00 9.00 9.00 9.00 9.00

5 OTHER INFORMATION
IDD CODES & TIME DIFFERENCES


* Allowance should be made for seasonal time variations

5 OTHER INFORMATION
CONVERSION FACTORS

5 OTHER INFORMATION
SOME INTERESTING FACTS
Vietnams history can roughly be divided into the following

periods:
to 4,000
years (Neolithic) ago, cultures in the area included Son
Lang. In the third cen
French War: Vietnam battled French colonialism from
American War: Vietnam fought America from 1954 to
development and success and has been member of

Nations (UN)
Association of Southeast Asian Nations (ASEAN)
with the United States
182 nations throughout the world, including permanent

members of United Nations Security Council

VIETNAM KEY DATA
Government
Country Name :
:
:
:
Capital City :
Administrative Divisions : 58 provinces and 5 municipalities
Independence : 2nd September 1945
Legal System :
: Vietnamese
National Language : Vietnamese
Geography
: 16 10 N, 107 50 E
Location : South East Asia
: Cambodia 1,228 km,
China 1,281 km, Laos 2,130 km
Total Area :
Land Area :
Water :
Land use : arable land: 19.64%;
permanent crops: 11.18%;
other: 69.18%
Irrigated Land : 45,850 sq km (2005)
Coastline : 3,444 km (excludes islands)
Land boundaries : 4,616 km
: phosphates, coal, manganese,
rare earth elements, bauxite,
chromate, offshore oil and gas
deposits, timber, hydropower
Climate type : tropical in south; monsoonal
in north with hot, rainy season
(May to September) and warm,
dry season (October to March)
Natural hazards :
delta

5 OTHER INFORMATION
VIETNAM KEY DATA (contd)
People
: 90.73 million (2014 est.)
Age structure : 0-14 years : 24.3%
15-24 years : 17.8%
25-54 years : 44.8%
55-64 years : 7.4%
65 years and over : 5.7%
: 1.08% (2014 est.)
: total: 29.2 years
male: 28.1 years
female: 30.2 years (2014 est.)
Life Expectancy : 72.91 years
male: 70.44 years
female: 75.65 years (2014 est.)
: 6.94 million (May.2014 est.)

: 7.82 million (May.2014 est.)
: 54 Ethnic Groups
Kinh (Viet) 85.7%, Tay 1.9%, Thai
1.8%, Muong 1.5%, Khome 1.5%,
Hmong 1.2% (2009 census)
Languages :
(increasingly favored as a second
language), some French, Chinese,
: total population: 94%

15 and over can read male: 96.1%
and write) female:92% (2012 est.)
: 11.3% (2012 est.)
poverty line
Labor Force : 54.48 million (2014 est.)
Labor Force by : Agriculture: 46.6% (2014 est.)
occupation Industry: 21.4% (2014 est.)
Services: 32% (2014 est.)
: 2.45% (2014 est.)

Economy
: Vietnamese Dong
Currency Code : VND
Exchange rate to dong (VND) per
USD : 21,222 (2014 average)
Euro : 28,324 (2014 average)
: 35,110 (2014 average)
Average Consumer : 4.09% (2014 est)
:
: US$ 185.56 billion (2014 est)
: 5.98% (2014 est)

: Agriculture: 18.12%
sectors Industry: 38.50%
Services: 43.38% (2014 est.)
Trade
Total Exports : US$ 150 billion
:
Commodities parts thereof
instruments
parts and accessories thereof
: EU 14.7%, US 19.6%, Asean 3.1%,

Japan 8%, Korea 18.1%,
China 11.8%
Total Imports : US$ 148 billion

5 OTHER INFORMATION
VIETNAM KEY DATA (contd)
:
Commodities instruments
materials and auxiliaries group
parts thereof
fodders materials
parts and auxiliaries thereof

: China 21.8%, Asean 8.2%,
Korea 4.9%, EU (5.9%), Japan 9.4%
International Airports : Tan Son Nhat International
Nang International Airport (Da
Trang), Can Tho International

Airport (Can Tho).
:
Tho)

LANGDON & SEAH CULTURE
Long Established History, Emphasis on Teamwork and collaboration, Professional, Integrity and Quality Service orientaled,
Investment on Research and Development, Encourage continuous learning and professional development, Client Focus
OUR MISSION OUR VALUES QUALITY POLICY STATEMENT

To deliver world class construction We are Ambassadors of L&S To provide our Clients with a service of excellence
cost management, project Duty to act with the Highest levels of Integrity, through our expertise & experience
OTHER INFORMATION
management and consultancy Respect and Honesty, Impartiality & Independency,
Utmost Professionalism To play a positive & creative role in realising our
services which through teamwork and
Clients needs and in meeting requirements to their
collaboration, make a measurable
Deliver success for L&S with the commitment & satisfactions
difference to our Clients, maximising
respect to our stakeholders, management & fellow
value for money and security of To manage & control each & every process with the
members of staff
objective highest integrity, impartiality & independency
Service Excellence
OUR VISION Service of excellence - through our expertise and To systematically view Clients feedback and internal
experience, innovations and collaboration, teamwork process, through continual improvement strategies
Construction Consultancy providing
& lateral service realising our Clients needs to ensure success in our service excellence
integrated solutions rather than
individual service lines and standing Employment Excellence To further develop & bring about opportunities for
out from our competitors Equal Opportunity, Diversity, Recognition of Human professional development in core skills of our staff
Capital as our vital asset and investment,
Professional Development & Continual Learning
Sustainable Responsibility
Duty to the communities, country and the
environment in which we live and work
131
5 OTHER INFORMATION
LANGDON & SEAH VIETNAM 10 YEARS

ANNIVERSARY

1 2
3 4
5 6
7 8
9 10

5 OTHER INFORMATION
Professional Consultancy & Practices


PROFESSIONAL SERVICES
Langdon & Seah Vietnam offers an unparalleled

range of compatible and integrated cost and project
management services which alongside their particular
fields of specialism are designed to provide a
seamless service to the construction industry and
property market.
At the very essence in the success of any project is

the selection of an appropriate procurement strategy
in terms of the Client's requirements, project charac-
teristics, time and cost certainty, quality targets and
distribution of risk. Langdon & Seah is well placed and
has the relevant experience to advice on various
procurement options from the traditional and straight-
forward to bespoke hybrid methods - in response to
the Client's priorities. These include:
Measurement contracts
Lump sum contracts
Design and build contracts
Develop and construct contracts
Turnkey contracts
Construction management contracts
Management contracts
Term contracts
Cost reimbursement contracts
Guaranteed maximum price contracts
Langdon & Seah Vietnam provides a total integrated

cost and project management service in the following
areas to meet and add value to each individual Client's
specific needs:
Quantity Surveying
Mechanical and Electrical Engineering Quantity
Surveying
Civil Engineering Quantity Surveying
Project Management
Services of Employer's Agent or Representative
(for Design and Build projects)
Contract Advisory & Dispute Management Services
Investment Appraisals
Value Management

5 OTHER INFORMATION
Build-ability Appraisals
Due Diligence Reports
Project Cost and Contract Audits
Capital Allowances Taxation Assistance
Fire Insurance Valuations (or Reinstatement Cost
Assessments)
Advice on Development Brief
Sustainable Economics and Strategies
The types of construction projects undertaken cover

both new building and refurbishment work on
residential, commercial, institutional, industrial and
infrastructure type developments, such as:
Airports and Airport Buildings
Arts and Cultural Buildings
Business Park Developments
Civic Buildings
Civil Engineering and Infrastructure Works
Educational Buildings
Health and Hospital Buildings
Historic Buildings
Hotels and Resorts
Internet Data Center
Industrial/Warehouse Developments
Leisure Projects
Office Buildings and Interior Fit-out Works
Parks and Recreational Projects

Petro-chemical Projects
Power Generation Projects
Public Buildings
Residential Developments
Retail Developments
Sports Centers
Transportation
Water and Waste Projects

L&S CONTRACT ADVISORY & DISPUTE
MANAGEMENT SERVICES
L&S VN offers a professional Contract Advisory and

Dispute Management (CADM) Services at all stages
of the construction process. Our primary objectives
are to ensure that our Clients contractual interests are
suitably protected and to effectively communicate to
our Client a clear understanding of his commitments
made to other parties.
Our CLIENTS - Our services are provided to and for

developers, building owners, construction profession-
als, insurance companies, financial institutions,
contractors, sub-contractors.
Front End Contract Advisory Work
We Provide contract advisory work prior to, during

and after completion for every type of construction
project. The work includes project procurement,
incorporation of conditions of contract, interpreta-
tion and selection of appropriate forms of contract,
warranties, indemnities, wording on performance
bonds, and contracts and sub-contract agree-
ments.
We Ensure the front end documents are kept
updated with the latest developments in the law
and legislations.
Expert Technical Advisory Work
We Provide expert advisory services on most

construction related issues including extension of
time, loss and expenses, contractual validity and
quantum of claims, value of defective work, and time
related issues.
We Advice on preparation and presentation of
payment claims and responses including notices,
applications and responses in connection with
adjudication proceedings under the Security of
Payment regime.

5 OTHER INFORMATION
Claims Assessment, Legal & Litigation Support
We Work for and with Construction Lawyers and

advise their clients on contractual validity and
evaluation of claims, negotiation, project monitor-
ing, audit & recovery, extension of time, defects
and liability, loss and expenses, acceleration,
valuation measurement methods, determination,
and termination.
We Provide support in the preparation of
documents for claims, discovery process, trial,
mediation, adjudication and arbitration.
Dispute Management, Avoidance and Resolution
We Assist and facilitate parties in negotiations on

disputed claims to avoid and/or resolve disputes.
We Advise and support the legal process for
cost-effective resolution of disputes by carrying out
neutral evaluation, expert determination, managing
adjudication, arbitration and the various other
forms of alternative dispute resolution.
We Offer the highest level of expertise and support
to the legal processes associated with every stage
of the construction cycle.
Expert Witness in Connection with Adjudicators &

Arbitrators
We Provide the preparation of defense and support

documents in response to potential dispute issues
as raised to Adjudication or Arbitration by the
Contractor against Engineer's assessments of
Variations; Engineer's assessments of Contractor's
Financial Claims; Engineer's assessments of
Contractor's Extension of Time Claims and
Engineer's interpretation of contractual matters.
We Attend and Assist the Employer for the purpos-
es of preparing a necessary defense during Adjudi-
cation and Arbitration hearings in the capacity of an
Expert Witness.

DIRECTORY OF OFFICES
ASIA PACIFIC
MALAYSIA
SELANGOR
LANGDON & SEAH SDN BHD
JURU UKUR BAHAN MALAYSIA
JUBM SDN BHD
ARCADIS PROJEKS SDN BHD
Level 5, Menara TSR
12 Jalan PJU 7/3, Mutiara Damansara
47810 Petaling Jaya
Selangor Darul Ehsan, Malaysia
GPS : 3.1616, 101.6129
Tel : (60 3) 2106 8000
Fax : (60 3) 2106 9090
Email : [email protected]
Contact : Loo Ming Chee / Mohd Ali Abd Karim /
Justin Teoh / Syed Mahadzir Syed Ahmad /
Mohamad Faiz Awang / Nur Aziz Abu Bakar
JOHOR
Taman Setia Tropika
PENANG
No.25, Lebuh Light
Fax : (60 4) 264 2068
Nur Aziz Abu Bakar
(Contd)

5 OTHER INFORMATION
DIRECTORY OF OFFICES (contd)
SABAH
Tel : (60 88) 223 369
SARAWAK
Tel : (60 82) 232 212

Fax : (60 82) 232 198
BRUNEI
BANDAR SERI BEGAWAN
KUALA BELAIT

KUALA BELAIT
CHINA
BEIJING
Tel : (86 10) 6310 1136

Fax : (86 10) 6310 1143
CHANGSHA
410005, China
CHENGDU
Contact : Lum Ka Wai, Andy
(Contd)

5 OTHER INFORMATION
DIRECTORY OF OFFICES (contd)
CHONGQING
Tel : (86 23) 8655 1333

Fax : (86 23) 8655 1616
DALIAN
116001, China
Tel : (86 411) 8800 8018

Fax : (86 411) 8800 8823
FOSHAN
3/F, Foshan Ling Nan Tian Di
528000, China
GUANGZHOU
Tel : (86 20) 8130 3813

Fax : (86 20) 8130 3812

HAIKOU
HANGZHOU
310016, China
Contact : Lu Mei Hua / Lu Wei
HENGQIN
LANGDON & SEAH CONSULTANCY (ZHUHAI
HENGQIN) CO. LTD. HENGQIN BRANCH
7/F, 156 Nan Shan Ju Road,
Hengqin, Zhuhai,
Guangdong Province 519031, China
GPS : 22.142774, 113.544438
Tel : (86 756) 868 8986
Fax : (86 756) 868 8969
Contact : Wan Chi Shing, Stanley
HONG KONG
Tel : (852) 2830 3500
Contact : Au Kai Ming, Francis
(Contd)

5 OTHER INFORMATION
MACAU
LANGDON & SEAH MACAU LIMITED
Avenida da Praia Grande, No. 594
Edificio BCM, 12th Floor,Macau
GPS : 22.192210,113.541252
Tel : (853) 2833 1710
Fax : (853) 2833 1532
Contact : Chan Yuk Sim, Katherine
QINGDAO
Tel : (86 532) 8280 1818

Fax : (86 532) 8280 1881
Contact : Feng Shi En, Andy
SHANGHAI
Shanghai 200052, China
Tel : (86 21) 6091 2800

Fax : (86 21) 6091 2999

Contact : Chan Hoi Or, Joe
SHENYANG
Tel : (86 24) 3195 8880

Fax : (86 24) 3128 6983

SHENZHEN
Room 1001, AVIC Centre,

1018 Huafu Road, Shenzhen
Guangdong Province 518031, China
GPS : 22.543241, 114.082051
Tel : (86 755) 2598 1841
Fax : (86 755) 2598 1854
Contact : Lo Kwok Chu, Kenneth
SUZHOU
1 Suzhou Avenue West,

215021 China
TIANJIN
LANGDON & SEAH CONSULTANCY CO LTD
TIANJIN BRANCH
4002, 40/F
Tel : (86 22) 2329 8611

Fax : (86 22) 2319 3186
WUHAN
(Contd)

5 OTHER INFORMATION
XIAN
Tel : (86 29) 8866 9711
Contact : Wang Zhu Zhu
INDIA
BANGALORE
2nd Floor, Esquire Center
No.9, M G Road
Bangalore 560 008, India
GPS : 12.974, 77.617
Tel : (00 91 80) 4123 9141
Fax : (00 91 80) 4123 8922
Contact : Gary Miles / Velan Murali / Biju AK
CHENNAI
New No.20, West Cott Road

Royapettah
Chennai 600 004, India
GPS : 13.055, 80.265
Tel : (00 91 44) 2855 3137
Fax : (00 91 44) 2855 0141

Contact : Gary Miles / Sankar Ramakrishnan
DELHI
The Elements

HYDERABAD
LANGDON & SEAH CONSULTING INDIA PVT LTD
2nd Floor, Trade Fair Office
Hitex Exhibition Center
Izzat Nagar, Hyderabad 500 084, India
GPS : 17.475, 78.375
Tel : (00 91 40) 2311 4942
Fax : (00 91 40) 2311 2942
Contact : Gary Miles / Bhoomeshwar Rao
PUNE
City Survey No 804 / B,
Bhandarkar Institute Road,
Lane No-14.Pune 411004 (Near Skoda Show room),
Maharashtra - INDIA
GPS : 18.5204, 73.8567
Tel : (00 91 20) 25650417 / 25650419
Fax : (00 91 22) 3933 5556
Contact : Gary Miles / Darshan Joshi / Rahul Patil
MUMBAI
Unit No.103, First Floor
Akruti SMC, Khopat Junction
Near Khopat Bus Depot
Thane (West) 400601
Maharashtra, India
GPS : 19.1988, 72.9756
Tel : (00 91 22) 4125 6060
Fax : (00 91 22) 4125 6050
Contact : Gary Miles / Darshan Joshi
KOLKATA
Stesalit Towers, 6th Floor
E2-3, EP & Gp Block,
Sector V, Salt Lake,
Kolkata - 700091
GPS : 22.569814, 88.433725
Tel : (00 91 124) 430 8790
Fax : (00 91 124) 430 8793
Contact : Gary Miles / Arun Basu
INDONESIA
BALI
P.T. LANGDON & SEAH INDONESIA
Jalan Sunset Road No 8C
Lingkungan Abian Base
Bali 80361, Indonesia
GPS : 8.7046, 115.1520
Tel : (00 62 361) 894 7517
Fax : (00 62 361) 894 7392
Contact : Ir. Putu Arya Canti
(Contd)

5 OTHER INFORMATION
JAKARTA
P.T. LANGDON & SEAH INDONESIA
Level 18, Ratu Plaza Office Tower
Jalan Jenderal Sudirman 9
Jakarta 10270, Indonesia
GPS : 6.2271, 106.8008
Tel : (00 62 21) 739 7550
Fax : (00 62 21) 739 7846
Contact : Peter Robinson / Stephen Osborne
KOREA
SEOUL
LANGDON & SEAH KOREA CO LTD
#429, 27, Seochojungang-ro 24-gil
Seocho-gu, Seoul
Korea 137-882
GPS : 37.4953, 127.0164
Tel : (00 82 2) 543 3888
Fax : (00 82 2) 543 3898
Email : info @kr.LangdonSeah.com
Contact : Victor Stanger
PHILIPPINES
MANILA
LANGDON & SEAH PHILIPPINES INC
4th & 7th Floor, Kings Court 1
2129 Pasong Tamo,
Makati City 1231
Philippines
GPS : 14.5576, 121.0135
Tel : (00 63 2) 811 2971
Fax : (00 63 2) 811 2071
Contact : Bernie C. Basilan
CEBU
LANGDON & SEAH PHILIPPINES INC

12F, 2Quad Bldg., Cardinal Rosales Avenue
Cebu Business Park,
Cebu City 6000
Philippines
GPS : 10.3142574, 123.9053502
Tel : (00 63 32) 2322 200
Fax : (00 63 32) 2603 699
Contact : Bernie C. Basilan
SINGAPORE
LANGDON & SEAH SINGAPORE PTE LTD
L&S CONTRACT ADVISORY & DISPUTE
MANAGEMENT SERVICES PTE LTD
1 Magazine Road, #05-01 Central Mall
Singapore 059567
GPS : 1.288526,103.842085
Tel : (65) 6222 3888
Fax : (65) 6224 7089
Contact : Eugene Seah / Ho Kong Mo

ARCADIS PROJECT MANAGEMENT PTE LTD
(Formerly known as Langdon & Seah Project Management Pte Ltd)
1 Magazine Road, #03-12 Central Mall
Singapore 059567
GPS : 1.288526,103.842085
Tel : (65) 6239 8600
Fax : (65) 6538 4508
Contact : Seah Choo Meng / Bernard Ho / Teoh Wooi Sin
THAILAND
BANGKOK
LANGDON & SEAH (THAILAND) LTD
LECE (THAILAND) CO LTD
10th Floor, Kian Gwan II Building
140/1 Wireless Road, Lumpini, Pratumwan
Bangkok 10330, Thailand
GPS : 13.734969, 100.545448
Tel : (00 66 2) 253 1438 - 9
Fax : (00 66 2) 253 4977
Contact : Ang Yen Kooi / Wong Soon Bin
VIETNAM
HANOI
4th Level Thanh Dong Building
132-138 Kim Ma Street, Ba Dinh District
Hanoi, Vietnam
GPS : 21.0320, 105.8263
Tel : (00 844) 3942 7525
Fax : (00 844) 3942 7526
Contact : Mark Olive
HO CHI MINH CITY
9th Level, Unit E-VTP Building
08 Nguyen Hue, District 1
Ho Chi Minh City, Vietnam
GPS : 10.7727, 106.7051
Tel : (00 848) 3823 8297
Fax : (00 848) 3823 8197
Contact : Mark Olive
ARCADIS ASIA HEADQUARTERS
HONG KONG
38/F AIA Kowloon Tower, Landmark East,
100 How Ming Street
Kwun Tong, Kowloon, Hong Kong
GPS : 22.3125, 114.2223
Tel : (852) 2830 3500
Fax : (852) 2576 0416
Contact : Poon Kan Young, Kenneth, CEO
(end)

5 OTHER INFORMATION
ACKNOWLEDGEMENT
Credits to KPMG, Jardine Lloyd Thompson.

CB Richard Ellis.
Langdon & Seah Vietnam Co Ltd would like to

acknowledge the invaluable support and advice from
the following organisations:
http://www.kpmg.com
http://www.jltasia.com
http://www.cbrevietnam.com

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LANGDON & SEAH VIETNAM CO LTD

4 5 3. Viet Capital Center - HCMC

Eighth Edition 2015

Langdon & Seah Vietnam Co Ltd

All rights reserved. No part of this publication

The information contained herein should be

handbook are current as at 4th Quarter 2014.

1. CONSTRUCTION COST DATA

2. GENERAL CONSTRUCTION DATA

JAN FEB MAR

JAN FEB MAR

future annually published handbooks, focuses on the

major cities in Asia.

The handbook is structured to serve as a general

The information contained in this handbook has been

Langdon & Seah Vietnam Co Ltd

Major Rates for Selected Asian Cities

Construction Costs for Selected Asian Cities

M&E Costs for Selected Asian Cities

Utility Costs for Selected Asian Cities

CONSTRUCTION MARKET 2015 OUTLOOK

Interestingly much of the global economic press has

As we had predicted the global economy carried

There were a number of issues affecting the Emerging

Global GDP is on the increase however and much of

the 2014 growth was carried by China and the other

Vietnams GDP growth was quite strong at over 6%

Global GDP in 2015 will grow around 2.5% and the

The US and UK are likely to be the best performing

THE VIETNAM ECONOMY 2015

Vietnam will have one of the higher GDP growth rates in

THE VIETNAM CONSTRUCTION MARKET 2015

The market will continue to remain flat and due to

Global commodity prices may improve in 2015 but

CONSTRUCTION COST DATA 13

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

FDI BY SECTORS AS OF NOVEMBER 2014

Registered Legal Legal

(Source: Vietnam Investment Review)

CONSTRUCTION COST DATA

(Source: Ministry of Planning and Investment)

m2 228,400 - 252,400 35 - 45 450 15.00

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

Average expected preliminaries % 8 - 12 6 - 12 12 - 18 5-8

m2 160 850 40.00 - 45.00 380 73

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

Average expected preliminaries % 6 - 10 8 -15 13 - 17 10 - 15 7 - 10

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

Average expected preliminaries % 5 - 10 5 -10 5 -10 5 -10

m2 92 250 600 27,200

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

Average expected preliminaries % 5 -10 6 - 12 8 - 12 6 - 11

Dalian - Item 13 - Rate for double glazed window

OFFICE / painted wall and false ceiling.