Vietnam Construction Handbook 2015

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

4. Vivo City - HCMC
5. Saigon Center Phase 2&3 - HCMC
Copyright Statement and information caveat

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.
TABLE OF CONTENT
Table of Content
Calendars
Introduction
4
6
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
Contractor Selection Strategies
72
77
82
4. VIETNAM BUSINESS ENVIRONMENT

Language
Accounting System
Taxation
Insurance
92
92
93
95
96
100
105
5. OTHER INFORMATION
108
109
110
112
121
IDD Codes and Time Differences

Conversion Factors
Some Interesting Facts
122
124
Langdon & Seah Culture

Langdon & Seah Vietnam 10 Years Anniversaries
Professional Services
Directory of offices
Acknowledgement
131
132
126
127
135
139
150
CALENDARS
2015
S M
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
JAN
18 19 20 21 22 23 24
25 26 27 28 29 30 31
S M
W
1
8
T F S
2 3 4
9 10 11
APR
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
S M
5
W
1
8
T
2
9
F S
3 4
10 11
JUL
15 16 17 18 19 20 21
22 23 24 25 26 27 28
15 16 17 18 19 20 21
22 23 24 25 26 27 28
FEB
S M
31
3 4 5 6 7 8 9
10 11 12 13 14 15 16
F
1
S
2
S M T
1 2
7 8 9
14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
21 22 23 24 25 26 27
28 29 30
S M
S M
MAY
A
30 31
2 3
T
4
W
5
T
6
1
8
AUG
26 27 28 29 30 31
23 24 25 26 27 28 29
OCT
18 19 20 21 22 23 24
25 26 27 28 29 30 31
S M
31
3
10
17
24
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
NOV
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
S M
1
8
15
22
29
2
9
16
23
30
7
14
21
28
1
8
15
22
29
2
9
16
23
3
10
17
24
4
11
18
25
5
12
19
26
6
13
20
27
F
1
8
15
22
29
S
2
9
16
23
30
S
1
8
15
22
29
M
2
9
16
23
30
T
3
10
17
24
31
W
4
11
18
25
T
5
12
19
26
F
6
13
20
27
S
7
14
21
28
F
1
4 5 6 7 8
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
S
2
9
16
23
30
S M
1
7 8
14 15
21 22
28 29
T
2
9
16
23
30
W
3
10
17
24
31
T
4
11
18
25
F
5
12
19
26
S M
2
9
16
23
30
3
10
17
24
JAN
4
11
18
25
5
12
19
26
6
13
20
27
7
14
21
28
S M
3
10
17
24
4
11
18
25
5
12
19
26
6
13
20
27
7
14
21
28
S
31
3
10
17
24
APR
JUL
S M
30
2
9
16
23
1
4 5 6 7 8
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
31
3
10
17
24
OCT
MAR
29 30 31
9 10 11 12 13 14 15
16 17 18 19 20 21 22
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
12 13 14 15 16 17 18
19 20 21 22 23 24 25
S M
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
JUN
T
1
6 7 8
13 14 15
W
2
9
16
T
3
10
17
SEP
F S
4 5
11 12
18 19
20 21 22 23 24 25 26
27 28 29 30
S M
T
1
6 7 8
13 14 15
W
2
9
16
T
3
10
17
F S
4 5
11 12
18 19
DEC
20 21 22 23 24 25 26
27 28 29 30
2016
T
1
8
15
22
29
2
9
16
23
30
3
10
17
24
31
4
11
18
25
5
12
19
26
S M
5
12
19
26
7
14
21
28
W
1
8
15
22
29
T
2
9
16
23
30
F
3
10
17
24
S
4
11
18
25
S
6
13
20
27
T
1
4 5 6 7 8
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
F
2
9
16
23
30
S
3
10
17
24
S M
4
11
18
25
5
12
19
26
1
4 5 6 7 8
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
2
9
16
23
30
3
10
17
24
31
FEB
MAY
A
AUG
1
6 7 8
13 14 15
20 21 22
27 28 29
W T F S
3 4 5 6
10 11 12 13
17 18 19 20
NOV
S M
6
13
20
27
MAR
7
14
21
28
6
13
20
27
S M
JUN
SEP
T
DEC
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
CONSTRUCTION COST DATA
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

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.
12
10
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.
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.
13
11
16
12
10
20
30
40
50
327
285
391
1.31
2.84
555
1.71
3.14
2.57
0.98
5.10
2.47
2001
1998 1999 2000
2002
2003 2004 2005
2006
2007 2008
2009
3.00
808
1.27
3.19
791
1.14
4.55
811
1.22
6.84
970
1.97
2011 2012
2013
987
4.67
969
919
980
2014
17.33
11.20
1,175 1,427
11.50 10.00 11.00 10.05 10.00 10.55
1,544 1,557 1,155
6.04
12.00 21.30 71.73 22.63 18.60 12.70 12.18 20.82
2010
200
400
600
800
1,000
1,200
1,400
1,600
70
60
1,800
2014)
80
1
13
10
15
20
25
10.75
3.68
478
28.04
11.81
36.59
2,353
2,454
11.84
36.71
4,063
10.45
32.71
1,342
8.33
17.97
548
5.84
14.16
860
4.51
6.65
371
2.93
10.93
712
2.61
7.94
3.13
1,082
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
35
30
4,500
14
40

FDI BY SECTORS AS OF NOVEMBER 2014
Sector
No. of
projects
1 Industry and construction 13,945

Manufacturing

18
14
230,207
76,020
138,578
47,436
12,489
Property
439
46,848
Accommodation
362
11,086
2,624
1,140
11,349
4,154
Mining
82
3,274
2,606
Electricity, gas and

water production and
distribution
96
9,749
2,072
Information and
Communication
1,065
4,095
2,289
Wholesale & Retail;

Repair
1,316
3,880
1,981
38
1,348
369
Construction
Water supply & Waste

treatment
2
9,407
Registered Legal
Legal
Capital
Capital Capital
(mn US$) (mn US$) (%)
Agriculture & Forestry &

Aquaculture
92%
516
3,658
1,822
2%
2,886
13,967
5,231
6%
Art & Entertainment
147
3,632
1,076
Logistics
431
3,711
1,140
Finance, Banking &

Insurance
81
1,328
1,176
424
3 Service
Health care & Social welfare
97
1,755
Science & Technology
1,665
1,773
960
Education and Training
200
807
184
Administration & Supporting services
129
211
109
Others
136
751
162
17,347
247,832
83,073
Total
100%
(Source: Vietnam Investment Review)
1999
2.15
1.35
1998
2.20
1.24
1.65
2000
2.40
(Source: Ministry of Planning and Investment)
Billion US$
1.50
2001
2.40
1.52
2002
2.46
1.42
2003
2.83
1.65
2004
3.44
2005
2006
4.44
2.18
5.43
2.25
2008
5.91
4.10
2009
8.06
3.54
2010
3.65
2011
3.65
2012
4.50
2013
4.11
2014
3.52
VIETNAM ANNUAL ODA
19
15
Construction, % of GDP
Construction Value, US$Bn

Construction, % of GDP
Construction, Real Growth,
% of y-o-y
Construction Value, US$Bn
e
e
22
18
68,300 - 75,500
m3
m3
3. Remove excavated materials off site
11. 112.5mm thick brick walls
20,600 - 22,800
178,600 - 197,400
228,400 - 252,400
185,200 - 204,700
kg
m2
m2
m2
8. High tensile rod reinforcement
40 - 48
35 - 45
35 - 45
3.50 - 3.90
260 - 320
kg
7. Mild steel rod reinforcement
3.50 - 3.90
m3 1,765,500 - 1,951,300
6. Reinforced concrete grade 30
21,900 - 24,200
60 - 70
230 - 270
346,800 - 383,300
m3 1,360,800 - 1,504,000
20 - 25
15 - 20
15 - 20
RM
KUALA LUMPUR
5. Mass concrete grade 15
66,700 - 73,700
74,600 - 82,500
2. Excavating for footings not exceeding 1.5m deep
VND
HO CHI MINH#
1. Excavating basement not exceeding 2m deep
Unit
DESCRIPTION
800
450
450
28
30
2,800
2,500
600
120
150
150
BAHT
BANGKOK#
17.50
15.00
15.00
1.00
1.00
130.00
124.00
43.00
3.00
3.00
3.50
B$
BRUNEI
1
MAJOR RATES FOR SELECTED ASIAN CITIES
23
19
8 - 12
55 - 60
6 - 12
3.50 - 4.50
35 - 45
50 - 70
15 - 22
15 - 22
6.00 - 7.50
6.00 - 7.50
350 - 500
12 - 18
160
800
1,200
225
200
62
62
7,000
1,200
The above costs are at 4th Quarter 2014 levels, exclusive of preliminaries and contingencies unless otherwise stated.
# Rates are nett of VAT
Average expected preliminaries
m2
76,500 - 84,500
299,700 - 631,200
m2
232,600 - 257,100
m2
17. 20mm Cement and sand (1:4) plaster to walls
55,800 - 61,700
79,700 - 88,100
16. 25mm Cement and sand (1:3) paving
29,400 - 32,500
32,400 - 35,800
kg
m2
kg
472,700 - 522,500
2,660,000 - 2,940,000
m2
14. Structural steelwork - beams, stanchions and the like
12. "Kliplok Colorbond" 0.64mm profiled steel sheeting

58.00
5-8
5.00
28.00
33.00
8.00
9.00
3.20
3.50
160 - 210
22
20
45
38
370
m3
m3
12
180
160
170
kg
kg
m2
m2
m2
1,200
m3
12
1,050
m3
35
RP000
JAKARTA#
Unit
DESCRIPTION
N/A
850
900
49.00
48.00
5,000
3,500
3,000
300
300
350
PHP
MANILA
35.00 - 40.00
40.00 - 45.00
40.00 - 45.00
1.45 - 1.55
1.45 - 1.55
148.00
197.00
50.00
45.00 - 50.00
16.50
16.50
S$
SINGAPORE**
360
380
380
10.30
10.30
1,350
1,150
900
270
190
210
HK$
HONGKONG
72
73
85
5.00
5.00
517
433
170
37
31
26
RMB
BEIJING
1
25
21
m2
m2
m2
m2
m2
m2
kg
kg
m2
6 - 10
150
27
60
75
160
250
1,200
27
27
8 -15
1,300
400
950
9,500
115
105
350
350
1,200
13 - 17
30.00
3.50 - 4.00
43.00
290.00
4.80 - 5.80
4.80 - 5.80
22.00
24.00
74.00
10 - 15
540
55
850
2,800
36
39
130
138
350
# 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

7 - 10
162
32
N/A
815
11
10
27
28
140
22
5.50
5.50
4.70
4.70
75
75
85
kg
kg
m2
m2
m2
484
500
m3
57
80
80
442
400
180
150
m3
60
105
m3
25
22
m3
30
22
RMB
RMB
SHENZHEN/
GUANGZHOU
Unit
SHANGHAI
DESCRIPTION
50
65
65
5.50
5.50
400
360
130
45
40
18
RMB
CHONGQING/
CHENGDU
70
90
90
5.00
5.50
500
410
150
35
25
22
RMB
SHENYANG
1
23
150
35
m2
5 -10
20
180
140
25
30
10
12
550
N/A
N/A
5 -10
30
150
130
22
28
10
10
750+
Shanghai - Item 11 - Rate for 120mm thick concrete block walls
Chongqing/Chengdu, Shenyang - Item 13 - Rate for double glazed window
5 - 10
145
m2
26
m2
25
m2
11
650
m2
kg
N/A
m2
kg
5 -10
30
120
165
26
25
11.30
11
700
N/A
22
24
500
5.50
92
92
70
m3
kg
kg
m2
m2
m2
420
5.50
170
m3
30
m3
33
m3
28
RMB
DALIAN
Unit
DESCRIPTION
300
250
250
9.00
9.00
1,200
1,200
1,100
90
140
120
MOP
MACAU
860
600
550
64
62
6,050
5,150
3,725
NA
180
160
Rs
INDIA@
43,800
27,200
27,200
1,210
1,180
76,500
63,100
28,900
9,800
1,890
1,890
KRW
SEOUL^^
1
29
25
140
140
32
m2
m2
180
8 - 12
6 - 12
1,000
1,350
310
380
130
550
500
130
120
98
98
4,950
1,325
Dalian - Item 13 - Rate for double glazed window
@ All
5 -10
40
m2
37
35
11
35
11
N/A
3,800
kg
m2
kg
N/A
700+
m2

38,500
6 - 11
7,790
26,000
63,800
8,900
3,100
1,580
1,550
315,000
30
26
HOTELS
INDUSTRIAL
OFFICE /
COMMERCIAL
DOMESTIC
industry
OUTLINE SPECIFICATION
painted wall and false ceiling.
and heating.
1) Interior decoration
excluded
excluding
excluding
excluding
Apartment units with fit-out, including air-conditioning, kitchen cabinets and home appliances,
but excluding decorative light fittings and loose furniture
Apartment units with good quality fit-out, including air-conditioning, kitchen cabinets and home
appliances, but excluding decorative light fittings and loose furniture
Houses with fit-out, including air-conditioning, kitchen cabinets and home appliances, but
excluding decorative light fittings, loose furniture, garden and parking
Houses with good quality fit-out, including air-conditioning, kitchen cabinets and home appliances,
but excluding decorative light fittings, loose furniture, garden and parking
Industrial units, shell only (Conventional single

heating and lighting
storey framed unit)
Detached houses, high end
Terraced houses, average standard
Apartments, high rise, high end
Apartments, high rise, average standard
BUILDING
1
CONSTRUCTION COST SPECIFICATION
31
27
Including fit-out and air-conditioning, but excluding educational equipment
Including fit-out, loose furniture and air-conditioning
Dry sports (no swimming pool) and are for 'leisure centre' type schemes including main sports hall,
ancillary sports facilities, changing and showers, restaurant / cafe, bar, etc. Costs include a/c,
Furniture, Fittings and Equipment (FF&E).
Excluding medical and operating equipment
Schools (primary and secondary)
Students' residences
Sports clubs, multi purpose sports/leisure

centres (dry sports)
General hospitals - public sector
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$/m2 CFA. Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
OTHERS
RC structure
RC structure, natural ventilaion, no facade enclosure
Underground/basement car parks (<3 levels)
Multi storey car parks, above ground (<4 levels)
32
28
HOTELS
Retail malls, high end
OFFICE/COMMERCIAL
DOMESTIC
DESCRIPTION
1,050 - 1,290
1,290 - 1,565
1,665 - 1,935
695 - 815
800 - 1,090
500 - 600
645 - 845
595 - 745
755 - 870
395 - 465
455 - 555
HO CHI MINH ##
1,225 - 1,690
2,125 - 2,455
2,360 - 2,725
735 - 845
1,060 - 1,425
655 - 785
805 - 1,045
385 - 580
935 - 1,120
275 - 390
910 - 1,115
KUALA
LUMPUR
1,160 - 1,282
1,466 - 1,679
1,710 - 2,443
641 - 794
855 - 1,099
641 - 837
840 - 901
672 - 855
977 - 1,160
489 - 611
824 - 1,008
BANGKOK##
US$/m2
1,133
1,475
1,108
1,364
1,133
1,327
842
1,120
1,560 - 1,868
2,200 - 2,508
2,259 - 2,567
825 1,167 801 1,056 -
825 1,019 534 812 -
BRUNEI
1,150 - 1,360
1,570 - 1,750
1,680 - 1,900
660 - 735
975 - 1,100
570 - 630
630 - 680
670 - 760
925 - 1,050
360 - 465
970 - 1,170
JAKARTA#
1
CONSTRUCTION COSTS FOR SELECTED ASIAN CITIES
33
29
VND 21,333
NA
- 600
- 330
- 305
- 380
- 775
RM 3.46
1,060 - 1,300
440
255
270
345
710
525 - 585
350 - 460
595 - 715
375 - 415
500 - 550
500 - 650
750 - 800
390 - 495
350 - 460
BAHT 32.75
N/A
550 - 733
183 - 305
N/A
N/A
N/A
504 - 611
330 - 365
305 - 330
B$ 1.26
1,871 - 2,179
IDR 12,150
N/A
470 - 575
N/A
423 - 731
305 - 330
619 - 927
N/A
724 - 1,031
N/A
1,665 - 1,973 1,050 - 1,575
518 - 826
381 - 689
The above costs are at 4th Quarter 2014 levels, inclusive of preliminaries and contingencies unless otherwise stated.
Exchange Rate Used : US$1 =
OTHERS
Owner operated factories, low rise, light weight
INDUSTRIAL
34
30
HOTELS
OFFICE/COMMERCIAL
DOMESTIC
DESCRIPTION
1,180 - 1,375
1,270 - 1,375
1,575 - 1,650
820 - 870
1,260 - 1,365
735 - 870
1,080 - 1,120
860 - 920
1,170 - 1,230
605 - 690
1,280 - 1,370
MANILA*
2,460 - 2,660
3,135 - 3,575
3,135 - 3,575
1,985 - 2,185#
2,185 - 2,425 #
2,185 - 2,345
2,345 - 2,580
1,550 - 1,750
2,345 - 3,495
1,985 - 2,225
2,500 - 3,335
SINGAPORE**
3,870 - 4,210
4,080 - 4,790
4,790 - 5,510
3,030 - 3,550
3,770 - 4,600
3,050 - 3,620
4,080 - 4,790
3,030 - 3,550
4,080 - 4,730
4,140 - 4,860
5,510 - 6,180
HONG KONG^
US$/m2
1,303
2,117
977
1,792
733
1,873
570
814
1,059 - 1,303
1,792 - 2,280
2,280 - 2,932
977
1,303
733
1,303
668
1,650
489
733
BEIJING$
1
35
31
OTHERS
INDUSTRIAL
SG 1.26
3,135 - 3,295
1,350 - 1,475
PHP 44.50
1,825 - 1,985
2,265 - 2,425
1,075 - 1,470
755 - 1075^^
835 - 1,075
510 - 560
460 - 510
690 - 765
690 - 765
1,180 - 1,425
480 - 510
450 - 460
HK$7.80
5,060 - 5,720
2,230 - 2,820
1,380 - 1,640
2,540 - 2,690
2,440 - 2,820
3,740 - 4,330
2,350 - 2,960
896
570
733
570
1,303
RMB 6.14
1,303 - 1,629
814
489
570
407
977
570 - 651
36
32
HOTELS
OFFICE/COMMERCIAL
DOMESTIC
DESCRIPTION
1,028 - 1,264
1,738 - 2,370
2,370 - 2,844
1,344 - 1,738
948 - 1,264
1,264 - 1,580
712 - 790
1,738 - 1,897
474 - 507
712 - 790
SHANGHAI$
1,036 - 1,145
1,673 - 1,849
2,282 - 2,521
801 - 886
1,101 - 1,217
762 - 842
1,127 - 1,244
550 - 607
915 - 1,010
415 - 458
567 - 625
SHENZHEN
GUANGZHOU$
1,035 - 1,280
1,920 - 2,395
880 - 1,040
1,120 - 1,520
690 - 895
1,200 - 1,600
530 - 670
850 - 1,120
415 - 511
575 - 670
CHONGQING
CHENGDU$
US$/m2
1,053 - 1,165
1,596 - 2,075
878 - 958
1,197 - 1,357
718 - 798
1,197 - 1,357
559 - 638
925 - 1,037
415 - 479
559 - 607
SHENYANG$
1
33
RMB 6.14
1,580 - 2,052
790 - 1,107
394 - 554
554 - 712
394 - 554
1,028 - 1,264
554 - 632
RMB 6.14
526 - 845
376 - 415
417 - 461
265 - 293
780 - 863
521 - 575
RMB 6.14
370 - 430
480 - 640
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.
OTHERS
INDUSTRIAL
RMB 6.14
607 - 670
375 - 407
38
34
HOTELS
OFFICE/COMMERCIAL
DOMESTIC
DESCRIPTION
1,085 - 1,181
1,836 - 2,075
910 - 974
1,244 - 1,309
798 - 894
1,230 - 1,389
606 - 702
1,150 - 1,261
446 - 511
606 - 671
DALIAN$
3,166 - 3,579
4,293 - 5,131
5,131 - 6,308
2,378 - 3,079
3,079 - 3,367
2,240 - 3,367
3,529 - 4,255
2,065 - 2,528
2,879 - 4,406
3,529 - 4,205
4,293 - 5,594
MACAU***
US$/m2
715 - 795
1,115 - 1,325
1,415 - 1,565
380 - 415
475 - 505
370 - 405
520 - 565
505 - 580
765 - 920
345 - 370
455 - 480
INDIA@
1,680 - 2,010
2,360 - 4,080
2,720 - 4,430
1,200 - 1,550
1,420 - 1,870
1,135 - 1,780
1,360 - 2,210
2,260 - 3,450
1,250 - 1,550
1,500 - 1,900
SEOUL##
1
39
35
RMB 6.14
391 - 407
MOP 7.99
1,877 - 2,753
1,039 - 1,364
2,065 - 2,403
1,652 - 1,915
INR 62
580 - 635
245 - 265
190 - 210
240 - 265
265 - 295
530 - 555
315 - 370
295 - 350
Rates are exclusive of contingencies.
Houses are built to shell and core standard ONLY, where all tenant or occupant areas are unfurnished.
Schools (primary and secondary) are of public authority standard, no a/c and complete with basic external works.
OTHERS
INDUSTRIAL
KRW 1,107
975 - 1,035
570 - 690
1,830 - 1,970
1,080 - 1,200
1,475 - 1,580
670 - 825
40
36
HYDRAULIC SERVICES
Hotels
Shopping Centres
Apartment
ELECTRICAL SERVICES
Hotels
Shopping Centres
Apartment
MECHANICAL SERVICES
DESCRIPTION
VND/m2
HO CHI MINH
273,000 - 519,000
1,755,000 - 2,217,000
1,990,000 - 2,373,000
1,331,000 - 1,796,000
1,641,000 - 2,339,000
26 - 55
225 - 465
144 - 160
255 - 600
205 - 275
88 - 220
360 - 470
62 - 90
290 - 460
290 - 410
210 - 295
RM/m2
KUALA
LUMPUR
790 - 950
3,400 - 3,600
1,950 - 2,200
3,900 - 4,350
2,800 - ,3050
3,100 - 3,520
4,500 - 4,900
1,550 - 1,600
4,800 - 5,200
4,600 - 4,900
4,500 - 4,600
BAHT/m2
BANGKOK##
17 - 41
243 - 305
203 - 243
305 - 398
231 - 331
263 - 331
189 - 236
24 - 41
305 - 351
216 - 257
223 - 257
B$/m2
BRUNEI
170 - 260
700 - 940
400 - 620
710 - 1000
620 - 780
700 - 940
870 - 1030
270 - 630
870 - 1170
770 - 930
770 - 1000
RP000/m2
JAKARTA$
1
M&E COSTS FOR SELECTED ASIAN CITIES
41
37
1,202,000 - 1,702,000
671,000 - 971,000
591,000 - 1,127,000
431,000 - 543,000
632,000 - 1,049,000
531,000 - 629,000
88 - 400
55 - 190
85 - 370
85 - 110
63 - 105
60 - 80
45 - 65
65 - 95
65 - 85
20 - 25
37 - 46
180 - 245
26 - 32
18 - 45
1,100 - 1,190
230 - 490
500 - 580
1,100 - 1,150
790 - 860
730 - 750
790 - 890
790 - 850
790 - 890
750 - 790
1,500 - 1,750
810 - 950
1,205 - 1,420
** Excludes special power supply.

Based upon
The above costs are at 4th Quarter 2014 levels, exclusive of contingencies unless otherwise stated.
Hotels
Shopping Centres
Apartment
LIFTS/ESCALATORS
Hotels
Shopping Centres
Apartment
FIRE SERVICES
Hotels
Shopping Centres
Apartment
9 - 33
4 - 20
13 - 47
13 - 38
11 - 27
33 - 41
13 - 20
27 - 51
33 - 69
27 - 54
11 - 20
64 - 88
13 - 43
40 - 63
370 - 940
280 - 750
360 - 750
370 - 1010
230 - 350
100 - 180
240 - 350
240 - 280
240 - 280
100 - 180
710 - 1000
170 - 260
700 - 1010
42
38
HYDRAULIC SERVICES
Hotels
Shopping Centres
Apartment
ELECTRICAL SERVICES
Hotels
Shopping Centres
Apartment
MECHANICAL SERVICES
DESCRIPTION
900 - 2,000
3,300 - 6,000
2,000 - 3,500
4,700 - 9,000
3,060 - 6,000
3,600 - 6,300
3,000 - 5,000
650 - 1,500
3,000 - 6,500
2,125 - 4,500
600 - 3,000
PESOS/m
MANILA^
30 - 60
175 - 280
55 - 145
200 - 385
170 - 330
110 - 250
180 - 290
35 - 130
150 - 325
170 - 285
100 - 190
S$/m
SINGAPORE^^
400 - 500
1,650 - 2,400
600 - 850
1,900 - 2,600
1,800 - 2,400
1,050 - 1,650
1,900 - 2,650
150 - 250
2,100 - 2,600
2,200 - 2,700
800 - 1,650
HK$/m
HONG KONG
95 - 140
460 - 703
320 - 450
705 - 943
481 - 676
253 - 398
760 - 1050
170 - 280
910 - 1150
790 - 950
140 - 380
RMB/m2
BEIJING
1
43
39
1,800 - 3,000
595 - 2,000
800 - 2,100
1,600 - 2,900
650 - 1,200
600 - 900
650 - 1,100
550 - 900
600 - 1,300
700 - 1,300
1,950 - 4,000
595 - 1,400
1,400 - 2,700
70 - 180
45 - 115
55 - 120
60 - 100
45 - 125
35 - 60
25 - 55
30 - 60
40 - 60
25 - 55
20 - 40
100 - 195
50 - 90
80 - 160
700 - 1,200
550 - 750
550 - 850
850 - 1,000
450 - 850
550 - 700
400 - 500
600 - 850
550 - 700
150 - 250
300 - 400
1,200 - 1,600
400 - 500
850 - 1,300

^ Transformer included in Electrical Services.
Hotels
Shopping Centres
Apartment
LIFTS/ESCALATORS
Hotels
Shopping Centres
Apartment
FIRE SERVICES
Hotels
Shopping Centres
Apartment
294 - 577
145 - 400
232 - 520
327 - 520
175 - 289
180 - 265
150 - 225
220 - 375
220 - 375
70 - 135
95 - 140
370 - 480
140 - 200
170 - 230
44
40
HYDRAULIC SERVICES
Hotels
Shopping Centres
Apartment
ELECTRICAL SERVICES
Hotels
Shopping Centres
Apartment
MECHANICAL SERVICES
DESCRIPTION
110 - 163
593 - 651
305 - 431
651 - 830
520 - 651
252 - 368
761 - 966
173 - 289
971 - 1,265
1,050 - 1,103
310 - 410
RMB/m2
SHANGHAI
120 - 163
520 - 750
300 - 436
667 - 898
473 - 640
273 - 436
750 - 1,019
147 - 263
1,050 - 1,313
693 - 935
120 - 373
RMB/m2
SHENZHEN
GUANGZHOU
2,400 - 2,800
2,400 - 2,600
900 - 1200
2,400 - 2,800
2,000 - 2,600
800 - 1000
MOP/m2
MACAU
70 - 130
450 - 700
300 - 400
550 - 800
450 - 700
250 - 350
700 - 1,000
150 - 250
750 - 1,200
600 - 1,000
100 - 300
RMB/m2
CHONGQING
CHENGDU
1
45
41
280 - 550
135 - 390
220 - 495
325 - 495
165 - 325
220 - 300
150 - 250
280 - 380
250 - 380
50 - 100
89 - 131
368 - 488
137 - 184
168 - 226
288 - 427
147 - 425
236 - 456
320 - 451
120 - 263
220 - 341
136 - 262
273 - 405
242 - 363
63 - 120
84 - 110
383 - 483
110 - 147
142 - 252
600 - 800
450 - 700
450 - 600
800 - 1,000
550 - 700
200 - 250
1,200 - 1,500
400 - 550
750 - 1000
Hotels
Shopping Centres
Apartment
LIFTS/ESCALATORS
Hotels
Shopping Centres
Apartment
FIRE SERVICES
Hotels
Shopping Centres
Apartment
350 - 600
150 - 350
300 - 500
300 - 450
140 - 250
180 - 250
150 - 250
200 - 330
220 - 330
50 - 100
70 - 120
300 - 400
70 - 130
120 - 200
46
42
HYDRAULIC SERVICES
Hotels
Shopping Centres
Apartment
ELECTRICAL SERVICES
Hotels
Shopping Centres
Apartment
MECHANICAL SERVICES
DESCRIPTION
30 - 120
700 - 900
500 - 600
300 - 400
450 - 650
700 - 800
600 - 900
100 - 300
600 - 700
RMB/m2
SHENYANG
70 - 120
720 - 920
520 - 620
220 - 320
470 - 690
700 - 800
600 - 700
100 - 300
600 - 700
RMB/m2
DALIAN
34,000 - 57,000
200,000 - 395,000
125,000 - 165,000
300,000 - 490,000
180,000 - 250,000
140,000 - 180,000
220,000 - 290,000
92,000 - 159,000
215,000 - 340,000
149,000 - 245,000
95,000 - 173,000
KRW/m2
SEOUL#
625 - 950
3,550 - 4,900
2,100 - 3,500
3,950 - 5,400
3,400 - 4,550
1,725 - 2,350
4,000 - 5,700
1,855 - 3,300
4,950 - 5,400
3,850 - 5,050
2,200 - 2,700
INR/m2
INDIA@
1
43
300 - 500
140 - 230
120 - 250
250 - 350
150 - 250
120 - 200
300 - 550
150 - 230
150 - 200
60 - 150
130 - 230
50 - 150
50 - 130
300 - 550
150 - 230
200 - 300
120 - 170
100 - 150
150 - 230
200 - 300
120 - 170
100 - 200
40,000 - 64,000
16,000 - 25,000
110,000 - 175,000
50,000 - 84,000
29,000 - 41,000
35,000 - 68,000
28,000 - 35,000
40,000 - 91,000
25,000 - 72,000
33,000 - 68,000
22,000 - 32,000
71,000 - 110,000
29,000 - 57,000
49,000 - 75,000
825 - 1050
530 - 690
1,200 - 1,750
1,400 - 1,800
750 - 950
990 - 1,300
475 - 625
1,150 - 1,475
950 - 1,100
525 - 630
425 - 750
3,250 - 4900
925 - 1,675
1,450 - 2,000
Hotels
Shopping Centres
Apartment
LIFTS/ESCALATORS
Hotels
Shopping Centres
Apartment
FIRE SERVICES
Hotels
Shopping Centres
Apartment
48
44
GUANGZHOU
BEIJING
BRUNEI
BANGALORE
BANGKOK
KUALA LUMPUR
HO CHI MINH +
COUNTRY
0.039 - 0.093
0.13
0.1
RMB 6.13
RMB 6.14
2014
0.08
RMB 6.14
2014
2013
0.08
0.008 - 0.12
B$1.26
RMB 6.13
2014
2013
0.008 - 0.12
0.043 - 0.093
B$1.24
INR 62
2013
2014
INR 63
Baht : 32.75
2013
0.058 - 0.124**
0.057 - 0.120**
Baht : 31.69
2014
0.063 - 0.165
RM 3.46
2013
0.068 - 0.142
RM 3.19
++
2014
0.11
++
2013
VND 21,282
2014
0.111
0.16/0.11
0.11/0.15
0.16
0.13
0.058 - 0.162
0.058 - 0.162
0.115 - 0.123
0.102 - 0.118
0.081 - 0.083
0.084 - 0.086
0.110 - 0.147
0.123 - 0.135
0.09-0.16 / 0.06-0.11
0.10-0.17 / 0.06-0.11
US$1=
VND 21,120
US$/kwh
US$/kwh
2013
Commercial/
Industrial
ELECTRICITY
Domestic
Exchange
Rate Used
0.32
0.32
0.81~1.47
0.65
0.088 - 0.355
0.088 - 0.355
0.242 - 0.580
0.238 - 0.572
0.260 - 0.441
0.268 - 0.456
0.165 - 0.578
0.179 - 0.627
0.25 - 0.54
0.25 - 0.54
US$/m
0.57
0.56
1.16
1.01
0.492 - 0.532
0.492 - 0.532
0.967
0.952
0.290 - 0.483
0.300 - 0.499
0.598 - 0.659
0.649 - 0.715
0.8 / 0.49
FUEL
0.63
1.18
1.40
1.12
1.23
0.306
0.306
0.920
0.921
0.867
0.946
0.645
N/A
N/A
n/a
n/a
0.411
0.411
N/A
N/A
N/A
N/A
N/A
N/A
1.31
1.54
1.13
1.31
0.427
0.427
1.120
1.238
1.014*
1.244*
0.653
0.66
0.95-0.98
++++
1.89
+++
US$/litre
Unleaded
1.13-1.15++++
US$/litre
Leaded
1.06+++
US$/litre
US$/m3
0.8 / 0.49
Diesel
Commercial/
Industrial
WATER
Domestic
1
UTILITY COST FOR SELECTED ASIAN CITIES
49
45
SINGAPORE^
SEOUL
NEW DELHI
MANILA
JAKARTA
CHONGQING
SHANGHAI
MACAU
HONG KONG
0.12
S$ 1.25
S $ 1.26
2014
0.20^
0.21^
0.129*
2014 KRW 1,114.60
2013
0.06*
0.064-0.130
INR 62
2014
2013 KRW 1,058.40
0.062-0.113
**0.22-0.27'
INR 63
PHP 44.50
2014
**0.21-0.26'
2013
PHP 43.20
2013
0.125
IDR 12,150
2014
0.08
0.100
RMB 6.14
IDR 11,400
2014
0.08
2013
RMB 6.13
2013
RMB 6.14
2014
0.20^
0.21^
0.154*
0.074*
0.139-0.160
0.124-0.142
**0.21'
**0.21'
0.125
0.119
0.13/0.138
0.13/0.139
0.186(peak)
0.055(normal)
0.173(peak)
0.082(normal)
0.101(peak)
0.050(normal)
0.111(peak)
0.055(normal)
RMB 6.13
2013
0.17 oo
0.16 oo
0.17 oo
MO P7.99
MO P7.99
0.16oo
0.13
2014
2014
2013
0.1
0.1
HK$ 7.80
HK$ 7.80
2013
0.83
1.43^^
1.44^^
0.59*
0.387**
0.175-1.288
0.240-1.087
**0.48-0.69'
**0.58-0.67'
0.807
0.412
0.46
0.57
0.48
0.59
0.55 to 0.78 o
0.55 to 0.66 o
0.83
0.59
1.65^^^
1.67^^^
1.52**
0.71**
1.202-5.366
1.717-3.743
**1.47'
**1.47'
1.033
1.101
0.67
0.74
0.6
0.82
0.70 ooo
0.66 ooo
0.59
1.61
1.21^^^^
1.31^^^^
1.35
1.28
0.847
0.843
0.808
0.976
0.617
0.482
1.08
1.2
1.10
1.25
1.44
1.68
1.57
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2.12
1.76^^^^^
1.85^^^^^
1.55
1.78
1.021
1.127
1.041
1.188
0.700
0.570
1.09/1.15 *
1.16/ 1.30 *
1.12-1.19
1.27-1.35
1.94
1.52
2.10
50
46
MACAU
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
o
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.
HONGKONG
95
Electricity (Domestic) : Tariff effective from 1st Jan 2012. 1-10kwh 10c, 11-60kwh 8c, 61-100kwh 12c, above 100kwh 15c
GUANGZHOU
BRUNEI
BANGKOK
*
For normal tariff with consumption not exceeding 150 kWh per month
**
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
Notes
1
51
47
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
^^^^^
SEOUL
CHONGQUING
Unleaded 93# = US$1.09/litre; Unleaded 97# = US$1.15/litre
MANILA
SHANGHAI
Notes (continued)
GENERAL CONSTRUCTION DATA
Material Price Indices

Import Duties
Progress Payments
Estimating Rules of Thumb
50
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
Quarter
0.00%
-4.61%
0.00%
0.00%
0.00%
0.00%
129.20
129.20
129.20
129.20
14,470,000
14,470,000
14,470,000
14,470,000
8.11%
0.00%
0.00%
0.00%
2.48%
0.00%
0.00%
11.83%
3.38%
1.90%
0.46%
0.00%
29.63%
19.20%
135.45
135.45
129.20
98.13
105.54
109.11
111.18
103.48
114.55
120.00
134.20
131.52
142.19
142.19
142.19
142.19
100.00
129.63
154.51
15,170,000
14,470,000
15,925,000
15,925,000
15,925,000
15,925,000
16,320,000
16,320,000
16,320,000
12,000,000
10,940,000
10,990,000
11,820,000
12,220,000
12,452,500
11,590,000
12,830,000
13,440,000
15,030,000
11,200,000
14,518,000
VND/T
Index
(Base
QI/2008)
Steelbar (D12-D15)
1,109,090
1,109,090
1,109,090
1,109,090
1,109,000
1,109,090
1,109,090
1,109,090
1,109,090
945,000
945,000
904,000
850,000
163.87
163.87
163.87
163.87
125.59
130.00
130.00
130.00
130.00
130.00
130.00
130.00
130.00
130.00
130.00
143.32
143.32
139.63
139.63
166.56
163.86
163.87
163.87
163.87
163.87
100.00
116.80
0.00%
0.00%
0.00%
0.00%
0.01%
0.00%
0.00%
0.00%
0.00%
19.29%
3.51%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
10.25%
0.00%
0.00%
16.80%
14.36%
1,600
1,600
1,600
1,600
1,255
1,255
1,255
1,255
1,255
1,218
1,209
1,209
1,241
1,263
1,459
1,459
1,459
1,546
1,600
1,600
1,600
1,600
1,600
1,600
VND/kg
163.93
163.93
163.93
163.93
129.41
149.49
149.49
149.49
158.40
163.93
163.93
163.93
163.93
163.93
163.93
Index
(Base
QI/2008)
100.00
99.69
130.64
130.43
128.59
128.59
128.59
128.59
128.59
124.80
VND/m
Cement (PCB40)
Index
(Base
QI/2008)
Concrete (Grade 250)
(Source: Ho Chi Minh City Departments of Construction and Departments of Finance Year 2008-2014)
2014
2013
2012
2011
2010
2009
2008
Year
0.00%
0.00%
0.00%
0.00%
0.00%
15.52%
0.00%
0.00%
5.96%
3.49%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2.65%
0.00%
0.00%
0.00%
0.00%
31.04%
2
MATERIAL PRICE INDICES
51
80.00
90.00
100.00
110.00
120.00
130.00
140.00
150.00
160.00
170.00
180.00
III
2008
II
IV
III
IV
Steelbar (D1 D25)
2009
II
III
2010
II
IV
III
2011
II
IV
Concrete ( ade 250)
III
2012
II
IV
Cement
40)
III
2013
II
IV
III
2014
II
IV

IMPORT DUTIES
ACFTA
NON-ACFTA
AKFTA
NON-AKFTA
VCFTA
AJCEP
VJEPA
VAT TARIFF
kg
12
(1)
10
(2)
15 12.5 19
14
16
10
Granite
kg
(3)
10
(2)
15 12.5 19
14
16
10
Carpentry of Wood
kg
10
Porland cement
Ceramic building bricks,
flooring blocks
Ceramic roofing tiles
Ceramic floor, hearth, wall

tiles
52
AIFTA
MFN/WTO
Marble
AANZFTA
UNIT
ATIGA
SPECIAL TARIFF
DESCRIPTION
(ALL FIGURES)
kg
37
15
33
10
1000
unit
35
15
15
25
32
23
25
10
kg
45
15
15
35
46
28
31
10
15
(4)
15
35
48
28
31
10
15
(4)
15
35
41
29
32
10
m2
45
15
(5)
Ceramic sanitary fixtures of

porcelain
kg
Multiple-walled insulating
units of glass
m2
20
15
28
30
18
10
Glass mirror (unframed)
kg
25
15
23
30
30
10
Concrete steel
kg
15
12.5
(6)
(7)
10
10
U,I or H section of steel

(height under 80mm)
kg
12
15
37
15
10
10
Alluminium doors, windows,

frames and thresholds
m2
15
12
15
10
Air conditioner (window or

wall mounted) not
exceeding 26,38 kW
unit
30
15
(8)
15
18
33
11
10
Passenger lifts
unit
10
(9)
(9)
4.5
10
Water pump
unit
20
15 27.5 24
17
19
10
Electric genset
unit
20
12
(1)
15
30
30
10
35
24
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
: Thailand
: 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
(2)
(3)
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
CONTRACT
CUMMULATIVE
PROGRESS
CLAIMS
CONTRACT
PERIOD
CUMMULATIVE
PROGRESS
CLAIMS
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
2/m2
3
0.5 m3/m2
3.0 m2/m2
250 kg/m3
to
to
to
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
54
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
Cement
Sand
2,400 kg/m3
1,441 kg/m3
1,600 kg/m3
Water
3
3
3
3
1,000 kg/m3
Soil (compact)
2,100 kg/m3
Concrete Strength (in accordance with TCVN 3118 - 1993)
6,000
5,000
4,000
3,000
41
34
28
21
49
41
34
25
40
35
30
25
5,800
5,000
4,400
3,600
33
29
25
21
15
2,200
13
Reinforcement
Bar Dia.
(mm)
Weight/m
(kg/m)
Perimeter
(mm)
Area
(mm2)
0.395
25.13
50.26
20
2.466
62.83
314.16
32
40
6.313
9.864
100.53
125.66
804.25
1256.64
0.45 m3
0.43 m3
0.38 m3
0.90 m3
0.86 m3
Composition of Concrete (per m3)

1:3:6
1:2:4
1:1:2
216 kg
308 kg
540 kg
Average Loads
Volume
Lorry (24 ton)

Concrete truck (24 ton)
10.0 m3
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
Container Vehicles
11 m
16 m
3.5 m
3.5 m
4.1 m
3.5 m
and the lower most projection from the ceiling including any
lighting units, ventilation ducts, conduits or similar.
55
PROPERTY INVESTMENT
Building Control and Procedures

Project Closed Out Procedures
Typical Submission Flowchart
Key Planning Parameter
Procurement Strategies
Contractor Selection Strategies
Property Overview
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 important 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 Committees 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, construction density, plot ratio, schedule of land use area and
schedule of floor area, maximum floor height and
building height, parking lot ratios, principle of architectural, structure and infrastructure design, environmental 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.
58
PROPERTY INVESTMENT
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 Construction 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 environment 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
PROPERTY INVESTMENT
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 components.. Construction Permit applications will be
checked against various compliances in respect of
boundaries and interference with neighboring properties 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 implementation 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
60
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.
PROPERTY INVESTMENT
Supervision of Construction
Independent Supervision of construction works by a
competent and registered firm is a mandatory requirement. 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 independent inspections witnessing of testing and commissioning 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 environmental impact during the construction process. Construction 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.
PROPERTY INVESTMENT
61
PROPERTY INVESTMENT
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.
62
PROPERTY INVESTMENT
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)
Request for written
comments on the fire
protection measures
(Fire Department
10 days)
(1)
Report on
assessment of
environmental impact
(provincial Peoples
Committee 75 days)
(1)
Request for written approval
on height of the building
(Department of Combat Department of Defense
15 days)
(1)
Agreement on technical
infrastructure connections includes:
(no required time by law so the
Employer shall make their own
arrangements)
(2)
Collect the approval
on the Basic Design
(Ministry of Construction
20 days)
Agreement on location of
water supply connection
(Water Supply Company)
(3)
Approval on
Fire Protection
(Fire Department
15 days)
(4)
Review on
Technical Design
(Ministry of Construction
40 days)
(5)
Construction Permit
(Department of
Construction 20 days)
Agreement on
Power Supply
(Electricity Company)
Agreement on Drainage
System connection
(Department of Transportation
/ Management Company)
Agreement on
communicaltions
infrastructure connection
(Department of
Information Center
/ 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
PROPERTY INVESTMENT
63
PROPERTY INVESTMENT
KEY PLANNING PARAMETER
MAXIMUM SITE COVERAGE
Maximum site coverage of linked houses and villa houses
Land plot area
(m2/house)
coverage (%)
75
100 90
100 200 300 500

80
60
50
40
Maximum site coverage of condominium buildings

Building height Maximum site coverage (%) according
to land plot area
measured from
10,000
18,000
35,000
ground level (m)
2
m
m2
m2
m2
19
65
63
60
60
58
55
55
52
22
25
53
51
48
28
50
48
45
31
48
46
43
34
46
44
41
42
39
43
41
38
43
42
40
46
41
39
36
>46
40
38
35
44
40
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%.
64
PROPERTY INVESTMENT
lot must be complied with the current regulation.
Building height
measured from
ground level (m)
Maximum site coverage (%) according

to land plot area
3,000
10,000
18,000
2
m2
m
m2
m2
80
68
65
60
19
80
65
63
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
40
80
48
43
80
46
80
>46
80
44
46
43
45
42
46
44
41
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
Type of building
Minimum of ratio for

landscape (%)
20
house, villa)
20
30
30
30
3. Factory
20
20
PROPERTY INVESTMENT
65
PROPERTY INVESTMENT
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

mall, conference centre,
exhibition, show room
and display center
100m2
1 apartment / 1.5 lot

condominium
MINIMUM OF PARKING SPACE
Type of vehicle
Minimum area of
parking space
Car parking space
25 m2
3 m2
0.9 m2
66
40 m2
30 m2
Truck parking space
For the hotel grade of below three-star, public administration 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)
PROPERTY INVESTMENT
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
PROPERTY INVESTMENT
67
PROPERTY INVESTMENT
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
68
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
PROPERTY INVESTMENT
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
PROPERTY INVESTMENT
69
PROPERTY INVESTMENT
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:
70

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
PROPERTY INVESTMENT
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.
PROPERTY INVESTMENT
71
PROPERTY INVESTMENT
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.
- high extent
- low extent
- 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
Traditional Lump Sum

Management Contracting
Construction Management
72
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 checking 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.
PROPERTY INVESTMENT
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 remeasurement 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 successively 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 management 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 continuity of workflow. All these advantages are extremely
important in the Vietnam context because it is of
paramount importance to maintain healthy relationships between employers and contractors as unforeseen events are prevalent during the design and
procurement stages in Vietnam.
PROPERTY INVESTMENT
73
PROPERTY INVESTMENT
PROCUREMENT STRATEGIES (contd)
74
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 furthermore, 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.
PROPERTY INVESTMENT
PROPERTY INVESTMENT
Desire to transfer complete risk
Damage
Contractor input to economic

construction
Single contractual link
Need for design team to report

to sponsor
Technically advanced or highly

complex building
Complexity
Facility to recover cost direct

from construction
Avoid prohibitive cost of change
Variations
Avoidance
Design prestige
Quality
Prime
Contracting
Appropriateness of Contract Strategy

Design
Construction
and
Management
Construct
Management
Contracting
Cost
Tracditional
Early Completion
Timing
PPP
Objectives
Project Criteria
Parameter
Framework
Agreements
Table A - Procurement Strategy
75
PROPERTY INVESTMENT
Table B - Risk Allocation
76
PROPERTY INVESTMENT
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

10 highest)
Vietnam experience (if foreign) 8
through 10,
Financial capacity (particularly local) 8

Direct labour strength (local and foreign) 6
PROPERTY INVESTMENT
77
PROPERTY INVESTMENT
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 demobilization.
size, capacity and suitable state of repair as contractors
78
PROPERTY INVESTMENT
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)
PROPERTY INVESTMENT
79
PROPERTY INVESTMENT
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,
80
PROPERTY INVESTMENT
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 INVESTMENT
81
PROPERTY INVESTMENT
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 September 2014, credit to the real estate market had expanded 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 investment 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.
82
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.
PROPERTY INVESTMENT
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 experienced 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% respectively.
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 INVESTMENT
83
PROPERTY INVESTMENT
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
84
PROPERTY INVESTMENT
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 Department 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-storey 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 experienced 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
PROPERTY INVESTMENT
85
PROPERTY INVESTMENT
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.
86
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2015
2014
Tokyo
Bangkok
Beijing
Kuala Lumpur
New Delhi
Shenzhen
Hanoi
Guangzhou
Shanghai
Singapore
Manila
Melbourne
Jakarta
Brisbane
Ho Chi Minh City
Murnbai
Adelaide
Hong Kong
Penrth
Taipei
Auckland
Wellington
Development Pipeline (000 sm)
Development Pipeline, Q3 2014
Source: CBRE Vietnam, Q3 2014
PROPERTY INVESTMENT
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-attended 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 promotions 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
PROPERTY INVESTMENT
87
PROPERTY INVESTMENT
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 investment route for Vietnamese.
88
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 developments 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.
PROPERTY INVESTMENT
Hanoi, Q-o-Q changes in secondary prices
HCMC, Price changes of condominiums for sale
Source: CBRE Vietnam, Q3 2014.
PROPERTY INVESTMENT
89
VIENAM BUSINESS
ENVIRONMENT
Language
Accounting System
Banks
Government Administration
Taxation
Insurance
Workforce
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 Vietnamese 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\
92
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.
7KHDQQXDOQDQFLDOVWDWHPHQWVRIDOOIRUHLJQLQYHVWed business entities must be audited by an independent 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.
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 invested banks or branches of foreign banks, representative 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
FINANCIAL
BANKS (contd)
94
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 currencies 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 currency. 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.
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
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 development, 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.
96
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 recorded 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:
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
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)
98
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.
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 provincial-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-agricultural 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 investment projects in the sectors eligible for special investment incentives, investment projects in geographical
areas with qualifying socio-economic difficulties and
other specific cases.
(Reproduced by kind permission of KPMG)
FINANCIAL
99
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.
100
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 changes are focused at keeping up with any WTO commitments 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 government 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.
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 instructions 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 construction 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
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/NDCP 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:
102
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.
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
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
104
PJICO
8.15%
BIC
3.25%
Sa ms ung Vi na
3.77%
MIC
2.42%
ABIC
2.18%
AAA
2.17%
Li berty
1.84%
GIC
2.02%
PTI
6.07%
Ba o Long
1.76%
VNI
1.81%
(Source: Vietnam Insurance Associate)

Non-life Insurance Market Share 2013
Ba o Mi nh
9 44%
Other
3.87%
UIC
0.93%
VASS
1.12%
MSIG
1.36%
AIG
1.54%
BVTM
1.18%
PVI Reinsurance Joint Stock Corporation (PVIRe)
BSH
0.90%
Ba o Vi et
23.30%
PVI
20.94%
Local:
Viet Quoc, A Dong, Thai Binh Duong, Sao Viet,
CIMEICO, Nam A
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 equivalent to 12 months of payment of unemployment
insurance premiums.
FINANCIAL
105
OTHER INFORMATION
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
OTHER INFORMATION
VIETNAM MAP
108
(Source: Wikimedia)
OTHER INFORMATION
DOMESTIC ROUTES
DISTANCE
FLIGHT TIME
MILES/KMS OUTBOUND RETURN

HA NOI TO
Da Lat
662/1065
1:40
1:40
Da Lat
133/214
0:50
0:50
Vinh
549/883
1:45
1:45
HO CHI MINH CITY TO
DA NANG TO
(Source: Vietnam Airlines)
OTHER INFORMATION
109
OTHER INFORMATION
RELEVANT WEBSITES
Ministry of Health Portal
110
The State Bank of Vietnam
Vietnam National Administration of Tourism
OTHER INFORMATION
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
OTHER INFORMATION
111
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
112
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.
OTHER INFORMATION
2015
HONGKONG
19 Feb
20 Feb
21 Feb
The day following Ching Ming

Festival
Labour Day
Tuen Ng Festival
03 Apr
04 Apr
06 Apr*
07 Apr
01 May
25 May
20 Jun
01 Jul
The day following Chinese

National Day
28 Sep
01 Oct
21 Oct
Festival
Christmas Day
25 Dec
Christmas Day
26 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.
OTHER INFORMATION
113
OTHER INFORMATION
PUBLIC HOLIDAYS (contd)
2015
MACAU
114
New Year's Day

Lunar New Year's Eve(Afternoon)
Lunar New Year's Day
The 2nd day of Lunar New Year
The 3rd day of Lunar New Year
The 4th day of Lunar New Year
The 5th day of Lunar New Year
Good Friday
The day before Easter
Ching Ming Festival
The first working day after
the Day before Easter
The second working day after
Ching Ming Festival
Labour Day
The Buddha's Birthday
Tung Ng Festival (Dragon Boat Festival)
The first working day after
Tung Ng Festival
Bank's Holiday
The day following Mid-Autumn
Festival
National Day
The day following National Day
Chung Yeung Festival
All Soul's Day
Feast of the Immaculate Conception
Macau SAR Establishment Day
The first working day after Macau
SAR Establishment Day
Winter Solstice
Christmas Eve
Christmas Day
New Year's Eve (Afternoon)
01 Jan#*
18 Feb@
19 Feb#*
20 Feb#*
21 Feb*
23 Feb#@
03 Apr#
04 Apr
05 Apr*
06 Apr#@
07 Apr@
01 May#*
25 May#
20 Jun
22 Jun@
01 Jul#
28 Sep#*
01 Oct#*
02 Oct
21 Oct#*
02 Nov#
08 Dec#
20 Dec*
21 Dec#@
22 Dec
24 Dec#
25 Dec#
31 Dec@
# Banks Holiday
* Obligatory Holiday
@ Special Holiday Granted by Chief Executive for staff in Public
Administration
OTHER INFORMATION
2015
BRUNEI
National Day
Forces Anniversary**
01 Jan
03 Jan
19 Feb
23 Feb
16 May
31 May
15 Jul
18 Jun
Anniversary of the
Christmas Day
04 Jul
17 Jul
18 Jul
19 Jul
23 Sep
13 Oct
25 Dec
* Subject to Change
** Replacement for Fridays / Sundays
Fridays and Sundays are government off days
SINGAPORE
Labour Day
Vesak Day
National Day
Deepavali*
Christmas Day
01 Jan
19 Feb
20 Feb
03 Apr
01 May
01 Jun
17 Jul
09 Aug#
24 Sep
10 Nov
25 Dec
* Subject to changes
# The following Monday will be a public holiday.
OTHER INFORMATION
115
OTHER INFORMATION
2015
PHILIPPINES
A. Regular Holidays
Labour Day
Independence Day
Christmas Day
01 Jan
02 Apr
03 Apr
09 Apr
01 May
12 Jun
18 Jun
31 Aug
24 Sep
30 Nov
25 Dec
30 Dec
B. Special Holidays
(Non-Working Holidays)
116
All Saints Day

All Souls Day (Additional)
Christmas Eve (Additional)
15 Feb
04 Apr
21 Aug
01 Nov
02 Nov
24 Dec
31 Dec
OTHER INFORMATION
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
OTHER INFORMATION
117
OTHER INFORMATION
2015
THAILAND
Special Holiday@
Songkran Festival
National Labour Day

Coronation Day
Chulalongkorn Day
Constitution Day
118
# Banks only
+ Government only
@ Special Holiday Granted by Thai Government
- Substitute for 5 December 2015(Saturday)
OTHER INFORMATION
2015
INDIA
Sankranthi
Ugadi
Independence Day
Deepavali
Christmas Day
KOREA
Childrens Day
Liberation Day
National Foundation day
Christmas Day
OTHER INFORMATION
119
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.
120
OTHER INFORMATION
PRIME RATES (as at 4th Quarter 2014)
RATE (%)
COUNTRY
Australia*
4Q
2010
4Q
2011
4Q
2012
4Q
2013
4Q
2014
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
New Zealand^
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
10.47
10.01
9.57
9.57
10.46
13.52
13.97
11.29
10.38
10.00
4.360
6.540
5.740
5.320
4.662
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
America
3.25
3.25
3.25
3.25
3.25
Vietnam##
9.00
9.00
9.00
9.00
9.00
OTHER INFORMATION
121
OTHER INFORMATION
IDD CODES & TIME DIFFERENCES
122
OTHER INFORMATION
* Allowance should be made for seasonal time variations
OTHER INFORMATION
123
OTHER INFORMATION
CONVERSION FACTORS
124
OTHER INFORMATION
OTHER INFORMATION
125
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
126
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
OTHER INFORMATION
VIETNAM KEY DATA

Government
Country Name
:
:
:
:
Capital City
Administrative Divisions :
Independence
Legal System
National Language
58 provinces and 5 municipalities

2nd September 1945
Vietnamese
Vietnamese
16 10 N, 107 50 E
South East Asia
Cambodia 1,228 km,
Geography
Location
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
OTHER INFORMATION
127
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
128
language), some French, Chinese,
: total population: 94%

15 and over can read
and write)
male: 96.1%
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.)
OTHER INFORMATION
Economy
: Vietnamese Dong
Currency Code
: VND
dong (VND) per
Exchange rate to
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%
Industry: 38.50%
sectors
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
OTHER INFORMATION
: US$ 148 billion
129
OTHER INFORMATION
VIETNAM KEY DATA (contd)
:
instruments
Commodities
materials and auxiliaries group

parts thereof
fodders materials
International Airports
parts and auxiliaries thereof

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

Airport (Can Tho).
130
Tho)
OTHER INFORMATION
OTHER INFORMATION
131
LANGDON & SEAH CULTURE
Construction Consultancy providing

integrated solutions rather than
individual service lines and standing
out from our competitors
OUR VISION
Duty to the communities, country and the

environment in which we live and work
Sustainable Responsibility
Equal Opportunity, Diversity, Recognition of Human

Capital as our vital asset and investment,
Professional Development & Continual Learning
Employment Excellence
Service of excellence - through our expertise and

experience, innovations and collaboration, teamwork
& lateral service realising our Clients needs
Service Excellence
Deliver success for L&S with the commitment &

respect to our stakeholders, management & fellow
members of staff
Duty to act with the Highest levels of Integrity,

Respect and Honesty, Impartiality & Independency,
Utmost Professionalism
To further develop & bring about opportunities for

professional development in core skills of our staff
To systematically view Clients feedback and internal

process, through continual improvement strategies
to ensure success in our service excellence
To manage & control each & every process with the

highest integrity, impartiality & independency
To play a positive & creative role in realising our

Clients needs and in meeting requirements to their
satisfactions
QUALITY POLICY STATEMENT

To provide our Clients with a service of excellence
through our expertise & experience
OUR VALUES
We are Ambassadors of L&S
OUR MISSION
To deliver world class construction

cost management, project
management and consultancy
services which through teamwork and
collaboration, make a measurable
difference to our Clients, maximising
value for money and security of
objective
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
OTHER INFORMATION
LANGDON & SEAH VIETNAM 10 YEARS

ANNIVERSARY
132
OTHER INFORMATION
10
OTHER INFORMATION
133
OTHER INFORMATION
Professional Consultancy & Practices
134
OTHER INFORMATION
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 characteristics, 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 straightforward 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
OTHER INFORMATION
135
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
136
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
OTHER INFORMATION
L&S CONTRACT ADVISORY

MANAGEMENT SERVICES
&
DISPUTE
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 professionals, 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, interpretation and selection of appropriate forms of contract,
warranties, indemnities, wording on performance
bonds, and contracts and sub-contract agreements.
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.
OTHER INFORMATION
137
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 monitoring, 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.
138
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 purposes of preparing a necessary defense during Adjudication and Arbitration hearings in the capacity of an
Expert Witness.
OTHER INFORMATION
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
: info@my.LangdonSeah.com
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
Email
: jubmjb@my.LangdonSeah.com
PENANG
No.25, Lebuh Light
Fax
: (60 4) 264 2068

Nur Aziz Abu Bakar
(Contd)
OTHER INFORMATION
139
OTHER INFORMATION
DIRECTORY OF OFFICES (contd)
SABAH
Tel
: (60 88) 223 369
Email
: jubmkk@my.LangdonSeah.com
SARAWAK
Tel
Fax
Email
: (60 82) 232 212

: (60 82) 232 198
: kuching@my.LangdonSeah.com
BRUNEI
BANDAR SERI BEGAWAN
140
Email
: info@bn.LangdonSeah.com
KUALA BELAIT
Email
: info.jbpusb@jbpu.com.bn
OTHER INFORMATION
KUALA BELAIT
Email
: pusbkb@pusbbrunei.com.bn
CHINA
BEIJING
Tel
Fax
Email
: (86 10) 6310 1136

: (86 10) 6310 1143
: info@cn.LangdonSeah.com
CHANGSHA
410005, China
Email
CHENGDU
Email
Contact
: Lum Ka Wai, Andy
(Contd)
OTHER INFORMATION
141
OTHER INFORMATION
DIRECTORY OF OFFICES (contd)
CHONGQING
Tel
Fax
Email
: (86 23) 8655 1333

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

: (86 411) 8800 8823
FOSHAN
3/F, Foshan Ling Nan Tian Di
142
528000, China
Email
GUANGZHOU
Tel
Fax
Email
: (86 20) 8130 3813

: (86 20) 8130 3812
OTHER INFORMATION
HAIKOU
Email
HANGZHOU
310016, China
Email
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
Email
Contact : Wan Chi Shing, Stanley
HONG KONG
Tel
: (852) 2830 3500
Email
Contact
: info@hk.LangdonSeah.com
: Au Kai Ming, Francis
(Contd)
OTHER INFORMATION
143
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
Email
: info@mo.LangdonSeah.com
Contact : Chan Yuk Sim, Katherine
QINGDAO
Tel
Fax
Email
Contact
: (86 532) 8280 1818

: (86 532) 8280 1881
: Feng Shi En, Andy
SHANGHAI
Shanghai 200052, China
144
Tel
Fax
Email
Contact
: (86 21) 6091 2800

: (86 21) 6091 2999
: Chan Hoi Or, Joe
SHENYANG
Tel
Fax
Email
: (86 24) 3195 8880

: (86 24) 3128 6983
OTHER INFORMATION
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
Email
Contact : Lo Kwok Chu, Kenneth
SUZHOU
1 Suzhou Avenue West,

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

: (86 22) 2319 3186
WUHAN
Email
(Contd)
OTHER INFORMATION
145
OTHER INFORMATION
XIAN
Tel
: (86 29) 8866 9711
Email
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
Email
: info@in.LangdonSeah.com
Contact : Gary Miles / Velan Murali / Biju AK
CHENNAI
146
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
Email
Contact : Gary Miles / Sankar Ramakrishnan
DELHI
The Elements
Email
OTHER INFORMATION
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
Email
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
Email
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
Email
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
Email
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
Email
: lsbali@id.LangdonSeah.com
Contact : Ir. Putu Arya Canti
(Contd)
OTHER INFORMATION
147
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
Email
: lsjkt@id.LangdonSeah.com
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
148
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
Email
: info@ph.LangdonSeah.com
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
Email
: info@ph.LangdonSeah.com
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
Email
: lssp3@sg.LangdonSeah.com
Contact : Eugene Seah / Ho Kong Mo
OTHER INFORMATION
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
Email
: pmps@arcadis.sg
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
Email
: info@th.LangdonSeah.com
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
Email
: info@vn.LangdonSeah.com
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
Email
: info@vn.LangdonSeah.com
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
Email
: asiainfo@arcadis.com
Contact : Poon Kan Young, Kenneth, CEO
(end)
OTHER INFORMATION
149
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
150
OTHER INFORMATION

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LANGDON & SEAH VIETNAM CO LTD

3. Viet Capital Center - HCMC

Copyright Statement and information caveat

handbook are current as at 4th Quarter 2014.

1. CONSTRUCTION COST DATA

Construction Costs for Selected Asian Cities

Utility Costs for Selected Asian Cities

2. GENERAL CONSTRUCTION DATA

LANGDON & SEAH VIETNAM CO LTD

Contractor Selection Strategies

4. VIETNAM BUSINESS ENVIRONMENT

IDD Codes and Time Differences

Langdon & Seah Culture

LANGDON & SEAH VIETNAM CO LTD

future annually published handbooks, focuses on the

Langdon & Seah Vietnam Co Ltd

CONSTRUCTION COST DATA

Construction Market 2015 Outlook

Construction Costs for Selected Asian Cities

CONSTRUCTION COST DATA

LANGDON & SEAH VIETNAM CO LTD

GDP growth was higher than the other BRIC nations.

Global GDP is on the increase however and much of

CONSTRUCTION COST DATA

THE GLOBAL ECONOMY 2015

THE VIETNAM ECONOMY 2015

THE VIETNAM CONSTRUCTION MARKET 2015

1998 1999 2000

2003 2004 2005

11.50 10.00 11.00 10.05 10.00 10.55

1,544 1,557 1,155

12.00 21.30 71.73 22.63 18.60 12.70 12.18 20.82

LANGDON & SEAH VIETNAM CO LTD

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

1 Industry and construction 13,945

LANGDON & SEAH VIETNAM CO LTD

Electricity, gas and

Wholesale & Retail;

Water supply & Waste

Agriculture & Forestry &

Art & Entertainment

Finance, Banking &

Health care & Social welfare

Science & Technology

Education and Training

Administration & Supporting services

(Source: Vietnam Investment Review)

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

(Source: Ministry of Planning and Investment)

VIETNAM ANNUAL ODA

Construction Value, US$Bn

Construction Value, US$Bn

3. Remove excavated materials off site

11. 112.5mm thick brick walls

8. High tensile rod reinforcement

7. Mild steel rod reinforcement

6. Reinforced concrete grade 30

5. Mass concrete grade 15

2. Excavating for footings not exceeding 1.5m deep

1. Excavating basement not exceeding 2m deep

LANGDON & SEAH VIETNAM CO LTD