Vietnam GDP              HCMC GDP            Hanoi GDP                VN-Index
         7.08% y-o-y                      7.27% y-o-y                    7.07% y-o-y                      24% y-o-y

*Arrows indicate change from the same period of the previous year.

• The Vietnam economy continued to achieve an impressive growth in the second quarter of 2018. Vietnam’s GDP increased by 6.79% y-o-y in Q2 2018 and 7.08% y-o-y in the first half of the year, and it is the highest growth observed in the last eight years.

• Condominium market: Although launch activities were quiet in Q2 2018, new launch supply for 1H 2018 still increased 5% compared to 1H 2017 in HCMC. In Q2 2018, the high-end market returned with positive sales performance in both cities. At the same time, some concerns about handover quality emerged in this quarter, which may affect the sentiment of some buyers, while creating opportunities for developers with good track records.

• Office market: There was no new supply on the office markets of both Hanoi and HCMC in Q2 2018. Amid stability in supply, average asking rents, as well as occupancy rates, improved for both cities, especially for HCMC. Looking forward to the rest of 2018, the office market continues to be landlord-driven for HCMC, while for Hanoi, the demand is also warming up.

• Retail market: In the first half of 2018, more and more international players gained a foothold by entering and expanding in the Vietnam market. F&B, fashion and healthcare industries, which target the rising young population, are expected to expand rapidly in the next three to five years. In Q2 2018, stable market performance was observed in the CBD area in both cities.