(2C931A7A A8B0 4D31 AF34 33313DE7F0DD) Construction Cost Handbook 2017 Vietnam

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ARCADIS VIETNAM CO., LTD
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Handbook Cover Photos:
1. Lancaster Lincoln - HCMC
2. Spirit of Saigon - HCMC
3 5 3. Lancaster Legacy - HCMC
4. Vietcapital Tower - HCMC
5. Empire City - HCMC
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Copyright Statement and information ca-
veat
Tenth Edition 2017
© Arcadis 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
Arcadis Vietnam Co., Ltd.
The information contained herein should be

regarded as indicative and for general guidance
only. Arcadis 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 2016.
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TABLE OF CONTENTS
Page No.
Table of Contents 4
Calendars 6
Introduction 7
1. CONSTRUCTION COST DATA
Construction Market 2017 Outlook 10

Major Rates for Selected Asian Cities 16
Construction Cost Specification 22
Construction Costs for Selected Asian Cities 24
M&E Costs for Selected Asian Cities 30
Utility Costs for Selected Asian Cities 36
2. GENERAL CONSTRUCTION DATA
Material Price Indices 42

Import Duties 44
Progress Payments 45
Estimating Rules of Thumb 46
3. PROPERTY INVESTMENT
Building Control and Procedures 52

Project Closed Out Procedures 56
Typical Submission Flowchart 57
Key Planning Parameter 58

Building Areas Definitions 61
Procurement Strategies 66
Contractor Selection Strategies 71
Property Overview 76
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Page No.
4. VIETNAM BUSINESS ENVIRONMENT
Language 90
Accounting System 90
Banks 91
Government Administration 93
Taxation 94
Insurance 99
Workforce 105
5. OTHER INFORMATION
Vietnam Map 108

Domestic Routes 109
Vietnam Key Data 110
Some Interesting Facts 114
Relevant Websites 116
Public Holidays 118
Prime Rates 128
Financial Formulae 129
IDD Codes and Time Differences 130
Conversion Factors 132
Arcadis Asia Leadership Team 134
Arcadis Asia Sectors 136
Arcadis Asia Services 140
Directory of offices 142
Acknowledgement 158
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ARCADIS VIETNAM CO., LTD CALENDARS
CALENDARS
INTRODUCTION
This version of Arcadis Handbook - Vietnam 2017, as

other future annually published handbooks, focuses
on the construction cost profile of Vietnam and those
of 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 Arcadis Vietnam Co., Ltd. Any further
information and/or if advice relating to particular
projects in specific region is required, please contact
any of the regional offices listed under the Directory of
Arcadis Offices at the end of this handbook.
Arcadis Vietnam Co., Ltd.
INTRODUCTION 7
CONSTRUCTION COST DATA
1
Construction Market 2017 Outlook
Major Rates for Selected Asian Cities
Construction Costs for Selected Asian Cities

M&E Costs for Selected Asian Cities
Utility Costs for Selected Asian Cities

1 CONSTRUCTION COST DATA
CONSTRUCTION MARKET 2017 OUTLOOK
In 2016 we at ARCADIS have seen our business

expand significantly in: Project & Construction
Management, Water Management and Environmental
Management. Also and happily our sister company
Callison RTKL have made great inroads into the
Architectural market.
Our rapid expansion in 2016 is a function of renewed

optimism within the Vietnam market. Foreign interest
has increased and consequently we have seen growth
in Foreign Investment and also the domestic market is
picking up. 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.
We think Vietnam will still expand as a manufacturing

export growth economy in 2017 however the US
withdrawal from the Trans Pacific Partnership will have
some effects on manufacturing output.
Vietnams GDP growth in 2017 will remain quite strong

at circa 6.5% and thus it will remain one of the Asia
regions best performers.

(bn US$) (Nos. of projects)
100 3000
2500
80
2000
60
1500

40
1000
20
500
0 0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
ANNUAL FOREIGN INVESTMENT
Year ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16
Registered Capital (bn US$) 2.84 3.14 3.00 3.19 4.55 6.84 12.00 21.30 71.73 22.63 18.60 12.70 12.18 20.82 20.23 22.76 24.37
Legal Capital (bn US$) 1.31 1.71 1.27 1.14 1.22 1.97 4.67 6.04 11.50 10.00 11.00 10.05 10.00 10.55 12.35 14.50 15.80
No. of Projects 391 555 808 791 811 970 987 1544 1557 1155 969 919 980 1175 1588 2013 2556
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12
ARCADIS VIETNAM CO., LTD 1
(mil US$) Nos. of projects
8000 1000
800
6000
600
4000
FDI BY COUNTRIES
400
2000
200
0 0
Taiwan Malaysia Japan S. Korea Singapore B.V.Islands Hong Kong Thailand United States China
Country Taiwan Malaysia Japan S.Korea Singapore B.V.Islands Hong Kong Thailand United States China
Registered Capital (mil US$) 1,860.16 914.03 2,589.86 7,036.30 2,419.09 858.24 1,640.15 706.50 400.40 1,875.22
No. of Projects 122.00 40.00 341.00 828.00 210.00 48.00 166.00 35.00 64.00 278.00

FDI BY SECTORS
2%
6%
92%
Industry and construction Agriculture & Forestry & Aquaculture Service
Registered
No. of
Sector Capital
projects
(mn US$)
1 Industry and construction 2,016 21,201

Manufacturing 1,020 15,539
Property 59 1,686
Accommodation 97 407
Construction 124 610
Mining 1 70
Electricity, gas and water production 2 132

and distribution
Information and Communication 195 369

Wholesale & Retail; Repair 505 1,899
Water supply & Waste treatment 13 488
2 Agriculture & Forestry & Aquaculture 12 99
3 Service 528 3,072
Art & Entertainment 2 330
Logistics 88 882
Finance, Banking & Insurance 12 582
Health care & Social welfare 10 52
Science & Technology 282 933
Education and Training 70 60
Administration & Supporting services 58 160
Homecare 1 4.05
Others 5 67.75
4 Total 2,556 24,373
CONSTRUCTION COST DATA 13

14
Billion US$
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2
VIETNAM ANNUAL ODA
0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
Country ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16
ODA Conclusion 1.77 2.41 1.81 1.76 5.57 2.52 2.82 3.80 3.46 5.40 3.40 6.80 5.87 6.60 4.38 3.50 5.38
ODA Disbursement 1.65 1.50 1.53 1.42 1.65 1.79 1.79 2.18 2.14 4.10 3.54 3.65 4.18 5.13 5.66 5.00 3.70

Billion US$ %
14 12
12 10
10
8
8
6

6
4
CONSTRUCTION VALUE
2 2
- -
(2) '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
Country ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16
Construction, Real Growth 7.51 12.78 10.57 10.59 9.03 10.80 11.05 12.10 0.02 11.36 10.06 (0.97) 2.09 5.83 7.07 10.82 9.10
Construction Value 1.63 1.94 2.07 2.39 2.82 3.36 4.03 4.95 5.83 6.19 7.26 7.86 8.59 9.14 9.80 10.39 7.01
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HO CHI MINH # MANILA INDIA ₲ JAKARTA # SEOUL $
DESCRIPTION UNIT
VND PHP INR IDR KRW
1. Excavating basement ≤ 2.00m deep m3 92,400 250 185 35,000 1,990

3
2. Excavating for footings ≤ 1.50m deep m 92,400 280 210 60,000 1,990
3. Remove excavated materials off site m3 84,700 145 N/A 25,000 10,100
4. Hardcore bed blinded with fine materials m3 280,900 850 4,350 400,000 30,000
5. Mass concrete grade 15 m3 1,696,400 2,800 5,850 1,000,000 66,000
6. Reinforced concrete grade 30 m3 1,955,800 3,600 7,150 980,000 80,000
7. Mild steel rod reinforcement kg 16,800 41 66 8,500 1,280
8. High tensile rod reinforcement kg 16,000 42 68 8,500 1,310
9. Sawn formwork to soffits of suspended slabs m2 201,800 1,000 650 190,000 30,000
10. Sawn formwork to columns and walls m2 198,900 950 700 170,000 30,000
11. 112.5mm thick brick walls m2 312,780 N/A 1,050 200,000 46,000
MAJOR RATES FOR SELECTED ASIAN CITIES

12. “Kliplok Colorbond” 0.64mm profiled steel sheeting m2 401,110 - 597,600 1,100 1,650 250,000 40,000
Ω
13. Aluminium casement windows, single glazed m2 6,315,000 10,500 5,750 1,500,000 330,000
14. Structural steelwork - beams, stanchions and the like kg 52,650 125 110 21,000 1,710
15. Steelwork - angles, channels, flats and the like kg 52,650 125 110 21,000 1,710
16. 25mm cement and sand (1:3) paving m2 73,200 400 450 80,000 3,200
2

17. 20mm cement and sand (1:4) plaster to walls m 144,000 360 380 90,000 9,500
18. Ceramic tiles bedded to floor screed (m/s) m2 674,180 1,600 1,650 160,000 66,000
æ
19. 12mm fibrous plasterboard ceiling lining m2 205,920 1,090 1,300 180,000 27,000
2
20. Two coats of emulsion paint to plastered surfaces m 88,900 370 230 25,000 8,100
Average expected preliminaries % 8 - 12 12 - 18 8 - 12 8 - 10 6 - 11
The above costs are at 4th Quarter 2016 levels and are based on lump sum fixed price contract rates exclusive of preliminaries and contingencies.
Ω Rate for aluminium with anodized finish; 6mm thick. # Rates are nett of VAT.
₲ All rates above are Supply and Fix, based on projects in Bangalore and æ Rate for 9mm gypsum board.
are nett of VAT and Service Tax. Mumbai costs are generally 8% higher. $ Rates include labour costs and are nett of VAT.
17
(Cont'd)
18
GUANGZHOU/ CHONGQING/
HONG KONG SHANGHAI BEIJING
SHENZHEN CHENGDU
DESCRIPTION UNIT
HK$ RMB RMB RMB RMB
1. Excavating basement ≤ 2.00m deep m3 225 30 26 30 18

3
2. Excavating for footings ≤ 1.50m deep m 205 30 31 25 25
3. Remove excavated materials off site m3 280 δ 100 - 180 37 65 58
3
4. Hardcore bed blinded with fine materials m 950 165 170 180 160
5. Mass concrete grade 15 m3 1,150 320 433 460 300
6. Reinforced concrete grade 30 m3 1,350 420 430 498 320
7. Mild steel rod reinforcement kg 9.2 3.8 4.1 5.3 3.7
8. High tensile rod reinforcement kg 9.2 3.8 4.1 5.3 3.7
9. Sawn formwork to soffits of suspended slabs m2 420 85 85 80 50
2
10. Sawn formwork to columns and walls m 420 85 73 80 50
11. 112.5mm thick brick walls m2 420 85 @ 72 60 65

12. “Kliplok Colorbond” 0.64mm profiled steel sheeting m2 880 N/A N/A N/A N/A
13. Aluminium casement windows, single glazed m2 3,500 700 815 * 525 600 *
14. Structural steelwork - beams, stanchions and the like kg 34 8.5 9.35 12.2 8.3
15. Steelwork - angles, channels, flats and the like kg 38 7.5 8.5 8.4 8.3
16. 25mm cement and sand (1:3) paving m2 140 30 27 30 22
2

17. 20mm cement and sand (1:4) plaster to walls m 150 30 28 25 32
18. Ceramic tiles bedded to floor screed (m/s) m2 380 155 140 150 120
19. 12mm fibrous plasterboard ceiling lining m2 570 150 162 180 120
2
20. Two coats of emulsion paint to plastered surfaces m 65 40 32 30 35
Average expected preliminaries % 10 - 15 5 - 10 7 - 10 5 - 10 5 - 10
δ Rates including dumping charges.
@ Rates for 120mm thick concrete block walls.
* Rates for double glazed window.
19
(Cont'd)
20
♣ KUALA
MACAU SINGAPORE BRUNEI BANGKOK ⱷ
LUMPUR
DESCRIPTION UNIT
MOP S$ RM B$ THB
1. Excavating basement ≤ 2.00m deep m3 130 20 15 - 22 3.5 140

3
2. Excavating for footings ≤ 1.50m deep m 150 20 15 - 22 3 160
3. Remove excavated materials off site m3 100 15 - 20 20 - 25 3 120
3
4. Hardcore bed blinded with fine materials m 1,200 50 60 - 70 43 650
5. Mass concrete grade 15 m3 1,350 190 - 200 ♣♣ 240 - 280 115 2,200
6. Reinforced concrete grade 30 m3 1,250 125 - 130 260 - 320 130 2,400
7. Mild steel rod reinforcement kg 7 1 - 1.2 2.9 - 3 0.9 23
8. High tensile rod reinforcement kg 7 1 - 1.2 2.9 - 3 0.9 22
9. Sawn formwork to soffits of suspended slabs m2 250 42 38 - 45 15 420
10. Sawn formwork to columns and walls m2 250 42 38 - 45 15 420

11. 112.5mm thick brick walls m2 450 35 - 40 45 - 52 16 450

12. “Kliplok Colorbond” 0.64mm profiled steel sheeting m2 N/A 43 55 - 60 58 1,200
13. Aluminium casement windows, single glazed m2 4,000 290 350 - 500 160 - 210 7,000
14. Structural steelwork - beams, stanchions and the like kg 35 4.5 - 5.5 6.5 - 8 3.1 55
15. Steelwork - angles, channels, flats and the like kg 40 4.5 - 5.5 6.5 - 8 3.1 55
16. 25mm cement and sand (1:3) paving m2 120 21 15 - 22 8 200

17. 20mm cement and sand (1:4) plaster to walls m2 150 22 15 - 22 8 220
18. Ceramic tiles bedded to floor screed (m/s) m2 450 74 50 - 70 33 1,200
19. 12mm fibrous plasterboard ceiling lining m2 650 30 35 - 45 28 550
2
20. Two coats of emulsion paint to plastered surfaces m 200 3.5 - 4 3.5 - 4.5 5 120
Average expected preliminaries % 10 13 - 17 6 - 12 5-8 12 - 18
♣ Rates are nett of GST. ⱷ Rates are nett of VAT.
♣♣ Rate for lean concrete blinding.
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BUILDING OUTLINE SPECIFICATION
Apartment units with fit-out, including air-conditioning, kitchen cabinets and home appliances,
Apartments, high rise, average standard
but excluding decorative light fittings and loose furniture
Apartment units with good quality fit-out, including air-conditioning, kitchen cabinets and home
Apartments, high rise, high end appliances, but excluding decorative light fittings and loose furniture
DOMESTIC
Houses with fit-out, including air-conditioning, kitchen cabinets and home appliances, but
Terraced houses, average standard
excluding decorative light fittings, loose furniture, garden and parking
Houses with good quality fit-out, including air-conditioning, kitchen cabinets and home
Detached houses, high end
appliances, but excluding decorative light fittings, loose furniture, garden and parking
Medium/high rise offices, average standard RC structure, curtain wall, including public area fit-out, tenant area with raised floor/carpet,
OFFICE / High rise offices, prestige quality painted wall and false ceiling
COMMERCIAL Out-of-town shopping centre, average standard
Including public area fit-out and M&E, but excluding shop fit-out
Retail malls, high end
Industrial units, shell only
(Conventional single storey framed units) RC structure with steel roof and M&E to main distribution, but excluding a/c, heating and lighting
INDUSTRIAL
Owner operated factories, low rise, light weight industry RC structure, including small office with simple fit-out and M&E, but excluding a/c and heating
Budget hotels - 3-star, mid market 1) Interior decoration

2) Furniture (fixed and movable)
HOTELS Business hotels - 4/5-star
3) Special light fittings (chandeliers, etc.)
Luxury hotels - 5-star 4) Operating Supplies and Equipment (OS&E) excluded

CONSTRUCTION COST SPECIFICATION

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

Notes:
1. The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that the actual cost of a
building will depend upon the design and many other factors and may vary from the figures shown.
2. The costs per square metre are based on Construction Floor Areas (CFA) measured to the outside face of the external walls / external perimeter including
lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
3. All bulidings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site condition.
The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.
4. The standard for each category of building varies from region to region and do not necessary follow that of each other.
5. All costs are in US$/m2 CFA. Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
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US$/m2 CFA
BUILDING TYPE
HO CHI MINH & MANILA Ω INDIA ₲ JAKARTA $ SEOUL $
DOMESTIC
Apartments, high rise, average standard 610 - 760 880 - 990 525 - 600 692 - 784 1,316 - 1.598
Apartments, high rise, high end 775 - 895 1,200 - 1,490 795 - 955 954 - 1,077 1,581 - 1,966
Terraced houses, average standard 410 - 480 780 - 925 360 - 385 367 - 477 N/A
Detached houses, high end 470 - 570 1,500 - 1,950 475 - 500 998 - 1,116 2,145 - 3,282
OFFICE/COMMERCIAL
Medium/high rise offices, average standard 710 - 825 840 - 890 395 - 430 683 - 756 1,171 - 1,368
High rise offices, prestige quality 820 - 1,120 1,280 - 1,390 495 - 525 1,007 - 1,124 1,350 - 1.709
Out-of-town shopping centre, average standard N/A 750 - 880 385 - 420 587 - 650 1,103 - 1,752
Retail malls, high end 665 - 870 1,100 - 1,250 540 - 585 648 - 700 1,282 - 2,137
HOTELS
Budget hotels - 3-star, mid market 1,330 - 1,620 1,200 - 1,370 745 - 825 1,186 - 1,402 1,598 - 2,026
Business hotels - 4/5-star N/A 1,350 - 1,685 1,160 - 1,375 1,620 - 1,750 2,239 - 3,868
Luxury hotels - 5-star 1,725 - 2,000 1,600 - 2,020 1,465 - 1,605 1,723 - 1,943 2,487 - 3,974
CONSTRUCTION COSTS FOR SELECTED ASIAN CITIES

INDUSTRIAL
Industrial units, shell only (Conventional single 305 - 380 450 - 460 310 - 365 316 - 343 641 - 821
storey framed units)
Owner operated factories, low rise, light weight 360 - 475 560 - 650 330 - 385 342 - 377 N/A
industry
OTHERS
Underground/basement car parks (<3 levels) 605 - 725 510 - 560 260 - 280 486 - 597 915 - 1,094

Multi storey car parks, above ground (<4 levels) 385 - 425 460 - 600 200 - 220 316 - 343 564 - 774
Schools (primary and secondary) 505 - 555 690 - 760 250 - 280 N/A 1,282 - 1,538
Students' residences 505 - 655 700 - 800 280 - 310 N/A 1,342 - 1,462
Sports clubs, multi purpose sports/leisure centres 755 - 805 1,200 - 1,450 550 - 575 1,064 - 1,595 N/A
(dry sports)
General hospitals - public sector N/A 1,350 - 1,500 600 - 660 N/A N/A
Exchange Rate Used : US$1 = VND 22,600 PHP 48.60 INR 66 IDR 13,055 KRW 1,170
The above costs are at 4th Quarter 2016 levels, inclusive of preliminaries but exclusive of contingencies.
Ω Rates include 12% VAT. $ Rates are nett of VAT.
₲ Rates are based on projects in Bangalore and are nett of VAT and & Rates are nett of VAT and contigencies.
Service Tax. Mumbai costs are generally 8% higher.
25
(Cont'd)
26
US$/m2 CFA
BUILDING TYPE
HONG KONG £ SHANGHAI + BEIJING + GUANGZHOU/ CHONGQING/
SHENZHEN + CHENGDU +
DOMESTIC
Apartments, high rise, average standard 3,140 - 3,690 634 - 704 593 - 652 491 - 541 445 - 593
Apartments, high rise, high end 4,240 - 4,940 1,550 - 1,693 1,482 - 1,690 816 - 898 786 - 1,022
Terraced houses, average standard 4,310 - 5,030 425 - 454 432 - 506 370 - 410 373 - 522
Detached houses, high end 5,580 - 6,350 637 - 708 655 - 730 507 - 559 506 - 596
OFFICE/COMMERCIAL
Medium/high rise offices, average standard 3,080 - 3,650 845 - 1,127 845 - 1,142 712 - 789 742 - 889
High rise offices, prestige quality 3,820 - 4,710 1,127 - 1,409 1,142 - 1,882 982 - 1,086 963 - 1,335
Out-of-town shopping centre, average standard 3,140 - 3,690 N/A 655 - 879 683 - 752 596 - 789
Retail malls, high end 4,180 - 4,960 1,198 - 1,549 1,171 - 1,615 1,003 - 1,108 963 - 1,364
HOTELS
Budget hotels - 3-star, mid market 4,010 - 4,330 916 - 1,127 948 - 1,171 923 - 1,019 885 - 1,106
Business hotels - 4/5-star 4,210 - 4,970 1,549 - 2,112 1,615 - 2,060 1,491 - 1,647 1,549 - 1,991
Luxury hotels - 5-star 4,920 - 5,710 2,112 - 2,535 2,060 - 2,653 2,034 - 2,246 N/A

INDUSTRIAL
Industrial units, shell only (Conventional single N/A 491 - 560 506 - 581 466 - 513 417 - 522
Owner operated factories, low rise, light weight 2,410 - 3,060 N/A N/A N/A N/A
industry
OTHERS
Underground/basement car parks (<3 levels) 2,370 - 2,950 708 - 993 730 - 804 471 - 754 N/A

Multi storey car parks, above ground (<4 levels) 1,470 - 1,730 353 - 496 432 - 506 336 - 370 268 - 342
Schools (primary and secondary) 2,590 - 2,810 496 - 637 506 - 655 373 - 413 N/A
Students' residences 2,540 - 2,950 353 - 496 357 - 506 239 - 264 N/A
Sports clubs, multi purpose sports/leisure centres 3,970 - 4,490 916 - 1,127 875 - 1,171 695 - 768 N/A
(dry sports)
General hospitals - public sector 5,130 - 5,830 1,409 - 1,830 1,171 - 1,468 N/A N/A
Exchange Rate Used : US$1 = HK$ 7.80 RMB 6.78 RMB 6.78 RMB 6.78 RMB 6.78
£ Offices of average standard are built to the following provisions: + Houses are built to shell and core standard ONLY, where all
(i) Curtain wall/window wall facade tenant or occupant areas are unfurnished.
(ii) Tenant areas include screeded floor, painted wall and ceiling Schools (primary and secondary) are of public authority standard,
Schools (primary and secondary) are of public authority standard, no a/c and complete with basic external works.
27
(Cont'd)
no a/c and complete with basic external works.
28
US$/m2 CFA
BUILDING TYPE
MACAU Ђ SINGAPORE ♣ KUALA BRUNEI BANGKOK œ
LUMPUR
DOMESTIC
►
Apartments, high rise, average standard 2,143 - 2,632 1,320 - 1,500 340 - 475 805 - 1,105 614 - 742
Apartments, high rise, high end 3,008 - 4,586 2,035 - 3,035 715 - 855 994 - 1,294 913 - 1,085
▲
Terraced houses, average standard 3,672 - 4,373 1,715 - 1,930 205 - 295 520 - 821 428 - 514
Detached houses, high end 4,461 - 5,802 2,180 - 2,895 695 - 860 792 - 1,092 742 - 899
OFFICE/COMMERCIAL
Medium/high rise offices, average standard 2,481 - 3,195 1,715 - 1,930 ♠ 560 - 650 ▼ 805 - 1,105 599 - 742
High rise offices, prestige quality 3,195 - 3,496 1,930 - 2,110 ♠ 805 - 1,100 ▼ 1,138 - 1,438 785 - 999
Out-of-town shopping centre, average standard 2,331 - 3,496 1,930 - 2,035 495 - 595 781 - 1,081 585 - 756
Retail malls, high end 3,672 - 4,398 2,035 - 2,250 625 - 795 1,030 - 1,330 785 - 813
HOTELS
Budget hotels - 3-star, mid market 3,258 - 3,684 2,145 - 2,360 935 - 1,305 1,521 - 1,821 1,071 - 1,184
Business hotels - 4/5-star 4,424 - 5,288 2,750 - 3,110 1,615 - 1,890 2,146 - 2,446 1,370 - 1,570
Luxury hotels - 5-star 5,288 - 6,253 2,750 - 3,110 1,800 - 2,095 2,203 - 2,503 1,598 - 1,712

INDUSTRIAL
Industrial units, shell only (Conventional single N/A 715 - 930 300 - 375 371 - 672 457 - 571
Owner operated factories, low rise, light weight N/A N/A 400 - 455 505 - 806 N/A
industry
OTHERS
Underground/basement car parks (<3 levels) 1,930 - 2,845 930 - 1,250 335 - 460 N/A 514 - 671

Multi storey car parks, above ground (<4 levels) 1,065 - 1,404 645 - 930 ♥ 210 - 255 412 - 713 171 - 274
Schools (primary and secondary) 2,130 - 2,481 N/A 235 - 270 ◄ 603 - 904 N/A
Students' residences 1,704 - 1,967 1,570 - 1,715 275 - 305 ♦ 706 - 1,006 N/A
Sports clubs, multi purpose sports/leisure centres N/A 1,965 - 2,110 540 - 625 1,623 - 1,924 N/A
(dry sports)
General hospitals - public sector N/A 2,750 - 2,895 805 - 1,000 1,824 - 2,125 N/A
Exchange Rate Used : US$1 = MOP 7.98 S$ 1.40 RM 4.41 B$ 1.36 THB 35.04
2 2
Ђ Rates are exclusive of any management contract fee. ► 6 - 12 units per floor, 46m - 83m per unit, exclude air-conditioning equipment.
♣ Rates are nett of GST. ▲ Terraced houses exclude air-conditioning.
♠ Includes raised floor and ceiling to tenanted areas but ▼ Offices are average standard and exclude tenant fitout.
excludes office carpets (normally under tenant’s fit-out). ◄ Schools (primary and secondary) are standard governement provisions.
♥ Open on all sides with parapet. ♦ Studenthostels to university standard.
œ Rates exclude VAT.
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30
HO CHI MINH MANILA Ω INDIA ₲ JAKARTA # SEOUL $
BUILDING TYPE
VND/m2 CFA PHP/m2 CFA INR/m2 CFA IDR/m2 CFA KRW/m2 CFA
MECHANICAL SERVICES
Offices 1,729,000 - 2,465,000 3,000 - 5,000 4,450 - 6,300 995,000 - 1,130,000 247,000 - 320,000
Industrial * N/A 700 - 1,500 2,050 - 3,650 295,000 - 695,000 102,000 - 177,000
Hotels N/A 3,000 - 6,500 5,450 - 5,950 990,000 - 1,285,000 239,000 - 375,000
Shopping Centres N/A 2,500 - 4,500 4,250 - 5,565 840,000 - 1,015,000 166,000 - 273,000
Apartment 1,382,000 - 1,893,000 700 - 3,000 2,430 - 3,000 935,000 - 1,100,000 106,000 - 193,000
ELECTRICAL SERVICES
Offices 2,034,000 - 2,426,000 3,300 - 6,500 3,915 - 5,405 770,000 - 1,035,000 210,000 - 395,000
Industrial ** N/A 2,000 - 3,500 2,315 - 3,850 440,000 - 685,000 130,000 - 190,000
Hotels N/A 4,700 - 9,200 4,375 - 5,955 800,000 - 1,100,000 300,000 - 490,000
Shopping Centres N/A 3,600 - 6,000 3,755 - 5,020 675,000 - 850,000 180,000 - 262,000
Apartment 1,794,000 - 2,266,000 3,600 - 6,300 1,900 - 2,600 880,000 - 1,030,000 140,000 - 189,000
HYDRAULIC SERVICES
Offices 281,000 - 535,000 900 - 2,200 690 - 1,045 185,000 - 285,000 39,000 - 64,000
Industrial N/A 700 - 1,300 470 - 825 110,000 - 200,000 25,000 - 36,000
M&E COSTS FOR SELECTED ASIAN CITIES

Hotels N/A 1,950 - 4,000 3,585 - 5,400 935,000 - 1,100,000 80,000 - 123,000
Shopping Centres N/A 700 - 1,600 1,020 - 1,845 185,000 - 285,000 32,000 - 64,000
Apartment 547,000 - 648,000 1,400 - 2,700 1,615 - 2,235 935,000 - 1,100,000 55,000 - 84,000
FIRE SERVICES
Offices 632,000 - 1,049,000 700 - 1,300 1,095 - 1,430 255,000 - 385,000 36,000 - 70,000
Industrial N/A 650 - 900 525 - 690 110,000 - 200,000 27,000 - 42,000
Hotels N/A 700 - 1,200 1,275 - 1,630 310,000 - 385,000 41,000 - 91,000

Shopping Centres N/A 700 - 1,300 1,050 - 1,210 260,000 - 305,000 28,000 - 76,000
Apartment 434,000 - 545,000 650 - 1,300 580 - 695 285,000 - 310,000 39,000 - 74,000
LIFTS/ESCALATORS
Offices 605,000 - 1,154,000 1,600 - 3,500 910 - 1,160 410,000 - 1,110,000 42,000 - 67,000
Industrial N/A N/A 590 - 760 N/A 16,000 - 26,000
Hotels N/A 1,800 - 3,300 1,325 - 1,925 660,000 - 1,030,000 100,000 - 175,000
Shopping Centres 1,231,000 - 1,743,000 700 - 2,000 1,545 - 1,990 305,000 - 820,000 48,000 - 84,000
Apartment 687,000 - 994,000 800 - 2,100 825 - 1,050 660,000 - 825,000 29,000 - 41,000
The above costs are at 4th Quarter 2016 levels, exclusive of contingencies.
* Generally without A/C. Ω Transformer, included in Electrical Services.
** Excludes special power supply. # All rates are nett of VAT. Rates for Electrical Services are excluding genset.
₲ Rates are based on projects in Bangalore and Rates for Hydraulic Services are excluding STP.
are nett of VAT and Service Tax. Mumbai costs Rates for Mechanical Services refers to ACMV Rates only.
are generally 8% higher. $ Rates are nett of VAT.
31
(Cont'd)
32
HONG KONG SHANGHAI BEIJING GUANGZHOU/ CHONGQING/
SHENZHEN CHENGDU
BUILDING TYPE
HK$/m2 CFA RMB/m2 CFA RMB/m2 CFA RMB/m2 CFA RMB/m2 CFA
MECHANICAL SERVICES
Offices 2,000 - 2,800 761 - 966 760 - 1,050 765 - 1,040 680 - 980
Industrial * 200 - 300 173 - 289 170 - 280 150 - 268 130 - 220
Hotels 2,200 - 2,750 971 - 1,265 910 - 1,150 1,071 - 1,339 720 - 1,150
Shopping Centres 2,300 - 2,850 1,050 - 1,103 790 - 950 707 - 954 580 - 980
Apartment 850 - 1,750 310 - 410 140 - 410 122 - 380 90 - 280
ELECTRICAL SERVICES
Offices 1,750 - 2,500 593 - 651 460 - 703 530 - 765 420 - 650
Industrial ** 650 - 900 305 - 431 320 - 450 306 - 445 250 - 350
Hotels 1,900 - 2,600 651 - 830 705 - 943 680 - 916 500 - 750
Shopping Centres 1,900 - 2,500 520 - 651 481 - 676 483 - 653 400 - 650
Apartment 1,100 - 1,750 252 - 368 253 - 398 278 - 445 220 - 330
HYDRAULIC SERVICES
Offices 700 - 900 110 - 163 95 - 140 122 - 166 60 - 120
Industrial 500 - 700 89 - 131 95 - 140 86 - 112 60 - 120

Hotels 2,000 - 3,000 368 - 488 370 - 480 391 - 493 280 - 350
Shopping Centres 700 - 900 137 - 184 140 - 200 112 - 150 60 - 120
Apartment 1,500 - 2,400 168 - 226 170 - 230 145 - 257 100 - 180
FIRE SERVICES
Offices 550 - 700 220 - 300 180 - 265 224 - 348 160 - 230
Industrial 400 - 500 150 - 250 150 - 225 139 - 267 130 - 230
Hotels 600 - 850 280 - 380 220 - 375 278 - 413 180 - 300

Apartment 200 - 450 50 - 100 70 - 135 64 - 122 45 - 90
LIFTS/ESCALATORS
Offices 700 - 1,200 280 - 550 294 - 577 294 - 481 330 - 580
Industrial 550 - 750 135 - 390 145 - 400 150 - 434 140 - 340
Hotels 550 - 850 220 - 495 232 - 520 241 - 465 280 - 480
Shopping Centres 850 - 1,000 325 - 495 327 - 520 326 - 460 280 - 430
Apartment 450 - 850 165 - 325 175 - 289 122 - 268 130 - 230
* Generally without A/C.
** Excludes special power supply.
33
(Cont'd)
34
MACAU SINGAPORE ♣ KUALA BRUNEI BANGKOK ⱷ
LUMPUR
BUILDING TYPE
MOP/m2 CFA S$/m2 CFA RM/m2 CFA B$/m2 CFA THB/m2 CFA
MECHANICAL SERVICES
Offices N/A 160 - 262 360 - 520 179 - 224 4,400 - 4,800
Industrial * N/A 35 - 123 85 - 190 23 - 39 1,550 - 1,600
Hotels 2,600 - 3,000 135 - 292 300 - 585 289 - 333 4,600 - 5,100
Shopping Centres 2,200 - 2,800 154 - 258 320 - 510 205 - 244 4,400 - 4,800
Apartment 900 - 1,100 94 - 178 195 - 285 212 - 244 4,400 - 4,500
ELECTRICAL SERVICES
Offices N/A 166 - 269 310 - 515 231 - 289 3,400 - 3,800
Industrial ** N/A 55 - 142 144 - 190 192 - 231 1,950 - 2,200
Hotels 2,600 - 3,100 190 - 372 285 - 600 289 - 377 3,800 - 4,500
Shopping Centres 2,600 - 2,800 167 - 319 310 - 500 377 - 314 2,800 - 3,200
Apartment 1,000 - 1,300 102 - 238 105 - 220 249 - 314 2,800 - 3,350
HYDRAULIC SERVICES
Offices N/A 28 - 57 26 - 60 16 - 39 790 - 910
Industrial N/A 19 - 38 37 - 46 11 - 19 750 - 790

Hotels 1,800 - 2,200 95 - 181 180 - 250 60 - 83 1,400 - 1,650
Apartment 1,500 - 2,000 76 - 148 20 - 50 38 - 59 1,200 - 1,400
FIRE SERVICES
Offices N/A 34 - 58 60 - 80 32 - 39 780 - 850
Industrial N/A 24 - 53 45 - 65 12 - 19 730 - 750
Hotels 900 - 1,100 29 - 58 65 - 95 26 - 49 780 - 890

Apartment 250 - 300 25 - 52 20 - 30 26 - 51 720 - 850
LIFTS/ESCALATORS
Offices N/A 66 - 171 95 - 400 9 - 32 1,100 - 1,350
Industrial N/A 43 - 109 55 - 190 4 - 19 N/A
Hotels 600 - 800 52 - 114 85 - 370 12 - 45 1,100 - 1,400
Apartment 450 - 600 43 - 119 63 - 105 11 - 26 500 - 580
* Generally without A/C. ♣ Rates are nett of GST and excluding BAS.
** Excludes special power supply. ⱷ Based upon nett enclosed area and nett of VAT.
35
UTILITY COSTS FOR SELECTED ASIAN CITIES
ELECTRICITY
EXCHANGE
RATE COMMERCIAL/
CITY DOMESTIC
INDUSTRIAL
US$1= US$/kWh US$/kWh
Ho Chi Minh VND 22,600 0.11 0.10 - 0.17 /

0.06 - 0.11
Singapore S$ 1.40 0.14 0.14
Kuala Lumpur RM 4.41 0.049 - 0.13 0.086 - 0.10
Bangkok THB 35.04 0.053 - 0.112 0.076 - 0.078
Manila PHP 48.60 0.21 - 0.22 0.21
Brunei B$ 1.39 0.009 - 0.13 0.065 - 0.182
Jakarta IDR 13,055 0.112 0.112
Bangalore INR 66.00 0.042 - 0.098 0.117 - 0.122
New Delhi INR 66.00 0.061 - 0.128 0.137 - 0.158
Seoul KRW 1,170 0.05 - 0.16 0.06 - 0.09
The above costs are at 4th Quarter 2016 levels.

Basis of Charges in Singapore (All rates are nett of GST)
○ Electricity tariff is based on low tension power supply.
○ Domestic water rate includes water conservation tax and water-borne fee
and is an average for the 1st 40m3, exclude sanitary appliance fee.
○ Non-domestic water rate includes water conservation tax and water-borne
fee, exclude sanitary appliance fee.
○ Unleaded fuel rate is for 98 Unleaded petrol as at 7 November 2016.
○ Diesel fuel rate as at 7 November 2016.
Basis of Charges in Kuala Lumpur, Malaysia

○ Unleaded fuel rate is for Unleaded petrol Ron 95.
Basis of Charges in Bangkok, Thailand
○ Electricity (Domestic) = For normal tariff with consumption not
exceeding 150kWh per month
○ Fuel (Unleaded) = Gasohol 95
Basis of Charges in Brunei

○ Electricity (Domestic) : Tariff effective from 1st Jan 2012. 1-10 kWh 10c,
11-60 kWh 8c, 61-100kWh 12c, above 100kWh 15c
Basis of Charges in Ho Chi Minh, Vietnam (All rates are VAT inclusive)
○ Electricity : Domestic electricity rates are applied to the 301 KW above
wards
○ Fuel : Diesel fuel D.O - 0.05%
: 92 and 95 Unleaded petrol as at October 2012.

WATER FUEL
COMMERCIAL/
DOMESTIC DIESEL LEADED UNLEADED
INDUSTRIAL
US$/m3 US$/m3 US$/litre US$/litre US$/litre
0.23 - 0.51 0.76 / 0.43 0.56 N/A 0.73 - 0.77
1.29 1.49 0.86 N/A 1.60
0.234 - 0.454 0.469 - 0.517 0.431 N/A 0.442
0.243 - 0.412 0.271- 0.451 0.685 N/A 0.721
0.48 - 0.80 1.47 0.60 N/A 0.90
0.099 - 0.398 0.552 - 0.596 0.343 0.461 0.479
0.080 - 0.571 0.522 - 1.122 0.517 N/A 0.563
0.394 - 0.682 1.338 0.915 N/A 1.101
0.284 - 1.021 1.298 - 5.797 0.856 N/A 1.026
0.31 - 0.67 0.67 - 1.08 1.04 N/A 1.22
Basis of Charges in Manila, Philippines

Water and Electricity actual billing includes miscellaneous charges such as
Environmental Charge, Currency Exchange Rate Adjustment (CERA),
VAT, etc.
○ Electricity
Domestic : 190kWh - 860kWh
Commercial/Industrial : 150,000kWh
○ Water
Domestic : 29m3 - 41m3/month
Commercial/Industrial : 4,030m3/month
Basis of Charges in Seoul, Korea

○ Electricity (Plus electricity basic rates)
Domestic = US$1.37/month (basic rate) + US$0.05/kWh ~ 0.16/kWh
(300kWh below in use)
Commercial = US$5.27/month (basic rate) + US$0.06/kWh ~ 0.09/kWh
(300kWh below in use)
○ Water (Plus water basic rates)
Domestic = US$0.95/month (basic rate, the usage of 15mm caliber)
+ US$0.32/m3 + Tax (within 30m3 usage)
Commercial = US$77.92/month (basic rate, the usage of 100mm caliber)
+ US$0.69/m3 + Tax (within 100m3 usage)
(Cont'd)

UTILITY COSTS FOR SELECTED ASIAN CITIES
ELECTRICITY
EXCHANGE
RATE COMMERCIAL/
CITY DOMESTIC
INDUSTRIAL
US$1= US$/kWh US$/kWh
Hong Kong HK$ 7.80 0.11 0.13
Macau MOP7.98 0.16 0.16
Shanghai RMB 6.78 0.091(peak) / 0.162(peak) /

0.045(normal) 0.080(normal)
Beijing RMB 6.78 0.07 0.24(peak) /

0.13(normal)
Guangzhou RMB 6.78 0.10 0.16 / 0.11
Chongqing RMB 6.78 0.09 0.12
The above costs are at 4th Quarter 2016 levels.

Basis of Charges in Hong Kong, China
○ Electricity (Based on tariff scheme of CLP Holdings Limited)
Domestic (bi-monthly consumption) :
0 - 400kWh = US$ 0.11/kWh; 400 - 1,000kWh = US$ 0.12/kWh;
1,000 - 1,800kWh = US$ 0.14/kWh; 1,800 - 2,600kWh = US$ 0.18/kWh;
2,600 - 3,400kWh = US$ 0.21/kWh; 3,400 - 4,200kWh = US$ 0.23/kWh;
Above 4,200kWh = US$ 0.23/kWh
○ Water
Domestic :
0 - 12m3 = Free of charge; 12 - 43m3 = US$ 0.53/m3;
43 - 62m3 = US$ 0.83/m3; Above 62m3 = US$ 1.16/m3
Basis of Charges in Macau, China

○ Electricity
Electricity tariffs are a composition of demand charges, consumption

charges, fuel clause adjustment and government tax.
○ Water
Domestic :
Consumption charge = US$ 0.56/m3 for 28m3 or below; US$0.65/m3
for 29m3 to 60m3; US$0.76/m3 for 61m3 to 79m3 and US$0.91/m3
for 80m3 or above.
Other charges (Depending on meter size 15mm - 200mm) :
Meter rental = US$0.34 - 58.00/month
Commercial/ Industrial :
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
infrastructure and other temporary consumption) are excluded.

WATER FUEL
COMMERCIAL/
DOMESTIC DIESEL LEADED UNLEADED
INDUSTRIAL
US$/m3 US$/m3 US$/litre US$/litre US$/litre
0.83 0.59 1.44 N/A 1.87
0.56 - 0.91 0.76 1.35 N/A 1.21
0.51 - 0.86 0.73 0.85 N/A 0.97
0.73 - 1.33 1.20 0.86 N/A 0.92
0.31 0.54 0.85 N/A 0.99
0.41 0.68 0.85 N/A 0.91 / 0.96
Basis of Charges in Hong Kong, China

○ Electricity
Domestic (Charge on yearly consumption) :
0 - 3,120kWh = US$ 0.091/kWh (peak) / US$ 0.045/kWh (normal);
3,120 - 4,800kWh = US$ 0.10/kWh (peak) / US$ 0.049/kWh (normal);
Above 4,800kWh = US$ 0.144/kWh (peak) / US$ 0.072/kWh (normal)
Commercial/Industrial (Charge on yearly consumption) :
Charges on consumption less than 1,000kWh per month for summer
period only. Refer to www.shdrc.gov.cn for detailed charges for different
tiers and charges for non-summer period.
○ Water
Domestic :
0 - 220m3 = US$ 0.51/m3; 220 - 300m3 = US$ 0.71/m3;
Above 300m3 = US$ 0.86/m3
○ Unleaded Fuel = Unleaded fuel rate is for Unleaded 95#
Basis of Charges in Beijing and Guangzhou, China
○ Unleaded fuel rate is for Unleaded gasoline 97.
Basis of Charges in Chongqing, China
○ Unleaded Fuel
93# = US$0.91/litre; 97# = US$0.96/litre

GENERAL CONSTRUCTION DATA
2
Material Price Indices
Import Duties
Progress Payments
Estimating Rules of Thumb

42
Steelbar (D12-D25) Concrete (Grade 250) Cement (PCB40)
Year Quarter Index Index Index
3
VND/T Inflation VND/m Inflation VND/kg Inflation
(Base QI/2010) (Base QI/2010) (Base QI/2010)
I 12,452,500 100.00 0.00% 879,819 100.00 0.00% 1,255 100.00 0.00%
2010 II 11,590,000 93.07 -6.93% 879,819 100.00 0.00% 1,218 97.05 -2.95%
III 12,830,000 103.03 10.70% 879,819 100.00 0.00% 1,209 96.33 -0.74%
IV 13,440,000 107.93 4.75% 879,819 100.00 0.00% 1,209 96.33 0.00%
I 15,030,000 120.70 11.83% 879,819 100.00 0.00% 1,241 98.88 2.65%
2011 II 14,730,000 118.29 -2.00% 879,819 100.00 0.00% 1,263 100.64 1.77%
III 15,925,000 127.89 8.11% 970,000 110.25 10.25% 1,459 116.25 15.52%
IV 15,925,000 127.89 0.00% 970,000 110.25 0.00% 1,459 116.25 0.00%
I 15,925,000 127.89 0.00% 945,000 107.41 -2.58% 1,459 116.25 0.00%
2012 II 15,925,000 127.89 0.00% 945,000 107.41 0.00% 1,546 123.19 5.96%
III 16,320,000 131.06 2.48% 1,127,272 128.13 19.29% 1,600 127.49 3.49%
IV 16,320,000 131.06 0.00% 1,109,000 126.05 -1.62% 1,600 127.49 0.00%
I 16,320,000 131.06 0.00% 1,109,090 126.06 0.01% 1,600 127.49 0.00%
2013 II 15,170,000 121.82 -7.05% 1,109,090 126.06 0.00% 1,600 127.49 0.00%
III 15,170,000 121.82 0.00% 1,109,090 126.06 0.00% 1,600 127.49 0.00%
MATERIAL PRICE INDICES
IV 14,470,000 116.20 -4.61% 1,109,090 126.06 0.00% 1,600 127.49 0.00%

I 14,470,000 116.20 0.00% 1,109,090 126.06 0.00% 1,600 127.49 0.00%
2014 II 14,470,000 116.20 0.00% 1,109,090 126.06 0.00% 1,600 127.49 0.00%
III 14,470,000 116.20 0.00% 1,109,090 126.06 0.00% 1,600 127.49 0.00%
IV 14,470,000 116.20 0.00% 1,109,090 126.06 0.00% 1,600 127.49 0.00%
I 14,350,000 115.24 -0.83% 1,109,090 126.06 0.00% 1,504 119.84 -6.00%
2015 II 14,350,000 115.24 0.00% 1,109,090 126.06 0.00% 1,550 123.51 3.06%
III 14,200,000 114.03 -1.05% 1,109,090 126.06 0.00% 1,550 123.51 0.00%
IV 14,200,000 114.03 0.00% 1,109,090 126.06 0.00% 1,550 123.51 0.00%
I 13,100,000 105.20 -7.75% 1,036,000 117.75 -6.59% 1,550 123.51 0.00%
2016 II 13,100,000 105.20 0.00% 1,055,000 119.91 1.83% 1,523 121.35 -1.74%
III 13,100,000 105.20 0.00% 1,055,000 119.91 0.00% 1,523 121.35 0.00%
IV 13,100,000 105.20 0.00% 1,055,000 119.91 0.00% 1,523 121.35 0.00%

250
230
210
190
170
150
130

110
90
70
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
2010 2011 2012 2013 2014 2015 2016
Steelbar (D12-D25) Concrete (Grade 250) Cement (PCB40)
43
2 GENERAL CONSTRUCTION DATA
IMPORT DUTIES
SPECIAL TARIFF
VAT TARIFF
MFN/WTO
Non-ACFTA
Non-AKFTA
AANZFTA
DESCRIPTION
UNIT
ACFTA
AKFTA
VCFTA
VKFTA
AJCEP
VJEPA
ATIGA
AIFTA
(ALL FIGURES)
Marble kg 12 0 15 0 (1)
0 (2)
10 14 16 10 10 10
Granite kg 12 0 15 5 (3)
0 (2)
0 13 14 7 10 10
Carpentry of Wood kg 3 0 5 0 - 0 - 0 5 2 0 2 10
Porland cement kg 37 5 26 20 - * - 35 * * 7 * 10
Ceramic building bricks, 1000
35 5 25 20 - 10 - 10 20 22.5 7 22.5 10
flooring blocks unit
Ceramic roofing tiles kg 45 5 46 20 - 0 - 0 25 28 7 25 10
Ceramic floor, hearth, wall
m2 45 0 48 * - 0 (4)
0 25 28 7 25 10
tiles
Ceramic sanitary fixtures

kg 35 5 36 15 (5)
10 (4)
10 26 29 7 25 10
of porcelain
Multiple-walled insulating
m2 25 0 18 0 - * - 25 30 30 7 * 10
units of glass
Glass mirror (unframed) kg 25 5 20 * - * - 25 30 30 7 * 10
Concrete steel kg 15 5 - 15 (6)
* - - 3 0 10 * 10
U,I or H section of steel
kg 15 5 37 15 - * - 10 11 5 * * -
(height under 80mm)
Alluminium doors, windows,

m2 15 0 12 0 - 5 - 5 5 6.5 5 11 10
frames and thresholds
Air conditioner (window or
wall mounted) not unit 30 5 26 15 (7)
* - 27 11 9 7 26.5 10
exceeding 26,38 kW
Passenger lifts unit 10 0 7 0 (8)
5 (8)
5 3 4 0 5 10
Water pump unit 20 0 19 0 - * - 20 15 17 7 26.5 10
Electric genset unit 20 5 19 12 (1)
* - 20 30 30 7 * 10
MFN/WTO : Most-Favored-Nation/World Trade Organisation

Normal Tax Rate = Favoured Tax Rate x 150%
ATIGA : ASEAN Trade In Goods Agreement/ ASEAN free trade area
VCFTA : Vietnam-Chile Free Trade Agreement
ACFTA : ASEAN-China Free Trade Agreement
AKFTA : ASEAN-Korea Free Trade Agreement
VKFTA : Viet Nam-Korea Free Trade Agreement
AJCEP : ASEAN-Japan Comprehensive Economic Partnership
VJEPA : Vietnam-Japan Economic Partnership Agreement
AANZFTA : Australia-ASEAN-New Zealand Free Trade Agreement

AIFTA : ASEAN-India Free Trade Agreement
(1)
: Cambodia, Thailand
(2)
: Thailand
(3)
: Cambodia, Indonesia, Thailand
(4)
: Myanmar
(5)
: Cambodia, Indonesia, Malaysia
(6)
: Cambodia, Lao, Malaysia, Thailand
(7)
: Brunei, Cambodia, Philippines, Thailand
(8)
: Malaysia, Thailand
(*) When the MFN duty rate of a goods item specified in the preferential import table of
rates is lower than the particularly preferential tax rate specified in Vietnam's
particularly preferential import table of rates applicable to each trade agreement
promulgated under the Finance Minister's decision, the import duty rate applicable
to this goods item is the MFN tax rate.
(*) Symbol in AKFTA column: Goods made in Khai Thanh Industrial Zone of North
Korea (GIC Items).
(*) Imported goods are not received special preferential tariffs at the corresponding time.

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

rate of expenditure for construction projects.
The rate of expenditure is an average rate and will
circumstances are taken into account.
No account has been made for retention.
Progress Claims
100%
80%
60%
40%
20%
0%
0% 20% 40% 60% 80% 100%
Project Period
CUMMULATIVE CUMMULATIVE
CONTRACT CONTRACT
PROGRESS PROGRESS
PERIOD
CLAIMS CLAIMS
GENERAL CONSTRUCTION DATA 45

ESTIMATING RULES OF THUMB
Structural Design - Concrete Ratios
The following is a range of concrete ratios for building

superstructure design in Viet Nam.
Concrete/floor area 0.4 m3/m2 to 0.5 m3/m2

Formwork/floor area 2.2 m2/m2 to 3.0 m2/m2
Reinforcement 160 kg/m3 to 250 kg/m3
Average External Wall/Floor Ratio
Residential Apartments 1.0 m2/m2

Office 0.4 m2/m2
Hotel 0.4 m2/m2
Average Internal Wall/Floor Ratio
Residential Apartments 1.0 m2/m2

Office 0.5 m2/m2
Hotel 1.5 m2/m2
Air - Conditioning
Average 0.065 RT/m2 of floor area
Average Lighting Level
Building Type Lux

Residential 300
Office 500
Retail 400-500
Hotel 250-300
School 300-450
Average Power Density
Building Type VA/m2 CFA

Residential 80-100
Office 120-150
Retail 150-200
Hotel - Accommodation 120
Hotel - F&B Area 150
School 45-60

Average Cooling Load
Building Type m2 Cooling Area/ RT

Residential 20-25
Office 12-15
Retail 10-15
Hotel 22-25
School 25
The above ratios are indicative and for reference purposes

only. They do not account for buildings with special shapes,
configurations or particularly small footprints.
Indicative Dimensions for Sports Grounds
Length Width
Tennis Court 40 m 20 m
Squash Court 13 m 6m
Basketball Court 38 m 23 m
Volleyball Court 30 m 20 m
Badminton Court 20 m 10 m
Ice Rink 61 m 26 m
Soccer Pitch 110-120 m 70-80 m
The above dimensions are for a single court with appropriate

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

Cement 1,441 kg/m3 Softwood 700 kg/m3
Sand 1,600 kg/m3 Hardwood 1,100 kg/m3
Gravel 1,350 kg/m3 Aluminum 2,750 kg/m3
Steel 7,850 kg/m3 Soil (compact) 2,100 kg/m3
(Cont'd)

ESTIMATING RULES OF THUMB
Concrete Strength (in accordance with TCVN 3118 - 1993)
CYLINDER CUBIC CYLINDER CUBIC

15cm x 30cm 15cm x 15cm 15cm x 30cm 15cm x 15cm
Psi Mpa Mpa Mpa Psi Mpa
8,000 55 66 60 8,700 50
7,000 48 58 50 7,300 42
6,000 41 49 40 5,800 33
5,000 34 41 35 5,000 29
4,000 28 34 30 4,400 25
3,000 21 25 25 3,600 21
8,000 55 66 20 2,900 17
15 2,200 13
1.00 MPa = 145.04 Psi

1.00 MPa (Cylinder 15cmx30cm) - 1.20 MPa (Cubic 15cmx30cm)
Reinforcement
Bar Dia. Weight/m Perimeter Area

(mm) (kg/m) (m/m) (mm2)
6 0.222 18.85 28.27
8 0.395 25.13 50.26
10 0.161 31.42 78.54
12 0.888 37.70 113.10
16 1.579 50.27 201.06
20 2.466 62.83 314.16
25 3.854 78.54 490.88
32 6.313 100.53 804.25
40 9.864 125.66 1,256.64
Composition of Concrete (per m3)
Mix Cement Sand Aggregate

1:3:6 216 kg 0.45 m3 0.90 m3
1:2:4 308 kg 0.43 m3 0.86 m3
1:1:2 540 kg 0.38 m3 0.75 m3

Average Loads Volume
Lorry (24 ton) 10.0 m3

Concrete truck (24 ton) 5.5 m3
Barge 200 - 1,450 m3
Dimensions for Standard Parking Space,

Loading / Unloading Bays and Lay - bys
Length Width Minimum

Headroom
Private Cars, Taxis and
Light Vans 5m 2.5 m 2.4 m
Coaches and Buses 12 m 3.0 m 3.8 m
Lorries 11 m 3.5 m 4.1 m
Container Vehicles 16 m 3.5 m 3.5 m
Minimum headroom means the clearance between the floor and

the lower most projection from the ceiling including any lighting
units, ventilation ducts, conduits or similar.

PROPERTYINVESTMENT
PROPERTY
3
Building Control and Procedures
Project Closed Out Procedures
Typical Submission Flowchart

Key Planning Parameter
Procurement Strategies
Contractor Selection Strategies
Property Overview
3 PROPERTY INVESTMENT
BUILDING CONTROL AND PROCEDURES

(Cont'd)
PROPERTY INVESTMENT 53
BUILDING CONTROL AND PROCEDURES

PROJECT CLOSED OUT PROCEDURES

TYPICAL SUBMISSION FLOWCHART
KEY PLANNING PARAMETER

(Cont'd)
KEY PLANNING PARAMETER

BUILDING AREAS DEFINITIONS
(Cont'd)

(Cont'd)

PROCUREMENT STRATEGIES
Overview
The primary consideration in the choice of procurement

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

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

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

having a robust pre-qualification procedure for 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.
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.
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
(Cont'd)
PROCUREMENT STRATEGIES
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 decrees on PPP Investment Form has been
official effective since 14 Feb 2015 to create solid legal
frame work for preparation and implementation of PPP
projects. There are subsequent circulars issued in
2016 for further guidance on how to preliminary
project selection for implementation, establishment,
submission, appraisal and approval of Feasibility
Study Report (Circular 02); procedure of obtaining the
Investment Registration Certificate and the project
contract for implementation of the Project which shall
be entered by the investor and the competent
authority being the party to the contract (Circular 06).
Table A - Procurement Strategy
Table B - Risk Allocation

CONTRACTOR SELECTION STRATEGIES
(Cont'd)

(Cont'd)

PROPERTY OVERVIEW
Despite being lower than the target level, Vietnam’s

6.2% GDP growth in 2016 was still in the top rankings
amongst other Asian countries. In 2016, in addition to
the pick-up in consumer CPI which was mainly caused
by increases in prices for medical services and educa-
tion, the inflation rate was no longer at the historical
low seen in 2015. However, the inflation rate only
increased by 1.83% y-o-y, which is within the safe,
manageable range defined by the government. This
year, in the context of the instability in international
economies, Vietnam’s gold and oil prices will pick up
along with the appreciation of the US dollar. However,
this short term instability may not affect the country’s
economy in a significant way. With the TPP on hold,
attention is shifting to the ongoing negotiations for the
RCEP (Regional Comprehensive Economic Partner-
ship). The RCEP will involve 3 billion people in 16
countries and 28% of global trade and will present
Vietnam, as well as other developing countries in
ASEAN, with unprecedented opportunities to improve
their countries’ economies.
Regarding the real estate market, in 2016 the Govern-

ment and other related parties have issued or planned
policies that may affect the whole market in many
sectors. Most notably, the State Bank of Vietnam
announced Circular 06/2016/TT-NHHH which will
force developers to reduce their dependence on bank
credit funds and, as a result, some developers may
have to resort to other channels such as domestic
investment funds, foreign investors and investment
funds. This circular will pose challenges for
small-scale developers in all segments of real estate.
Other policies that are still under-consideration include

taxing second houses or prohibiting the practice of
using condominiums for commercial purposes. Should
these policies be passed, the country’s real estate
market could experience major changes. On a positive
note, real estate credit is increasing healthily and
strongly. According to the HCMC Real Estate Associa-
tion (HoREA), property credit was up 14.2% over the
past year while bad debt stayed at only 2.6% and
76
may fall even lower in coming years when the bad
debts of some ailing banks are acquired by the State
Bank of Vietnam. Moreover, both FDI and overseas
remittances strongly increased in 2016, which will
support the real estate market in coming years.
CONDOMINIUM MARKET
The condominium market in 2016 was active with

37,419 newly launched units in HCMC and 28,000
newly launched units in Hanoi. Compared to 2015,
these numbers were lower by 10% and 16% respec-
tively. Despite this, the number of sold units only
decreased by 4% y-o-y to 35,008 units in HCMC and
13% y-o-y to 30,028 units in Hanoi. Generally, in both
cities, the number of sold units almost matched the
number of new units offered for sale in the same
period, proving that the condominium market still has
strong momentum.
Although the mid-end segment still accounted for the

largest market share in both cities (followed closely by
high-end units), this is expected to change in the future.
The market is adjusting to a more balanced position
where it welcomed a bigger proportion of mid-end units
(48% in 2016 compared to 40% in 2015 in HCMC; 56%
in 2016 compared to 42% in 2015 in Hanoi) and a
smaller proportion of high-end units (30% in 2016
compared to 38% in 2015 in HCMC; 30% in 2016
compared to 32% in 2015 in Hanoi). In addition, nearly
40% of new launches in 2017 will be in the affordable
segment in HCMC and 30% in Hanoi. New supply in
the affordable segment is expected to increase notice-
ably in coming years as big developers such as Vin
Group and FLC are known to be interested in this
segment. In addition to strong growth in the mid-end
sector, 2016 also witnessed the return of the luxury
segment in Vietnam with projects in prime locations and
featuring strong and unique selling points.
In HCMC the average selling price in 2016 was

recorded at US$2,104 psm, an increase of 4.6% y-o-y.
Price improvements were seen in almost all segments
though most notably in the mid-end segment.
(Cont'd)
77
In Hanoi the average market price was US$1,349
psm, an increase of 19% y-o-y. All segments except
the affordable segment experienced an increase in
primary prices compared to 2015.
Moving forward, supported by sound macroeconomic

factors including positive GDP growth, a stable
exchange rate and high inflow of FDI to Vietnam and
especially to real estate from Korea, Japan and
Singapore, the condominium market is expected to
remain upbeat in the coming year. Improvements in
infrastructure continue to support first-home buyers by
providing easier connection between the CBD and
suburban districts.
The market is expected to maintain a high absorption

rate in the 2017-2019 period. The absorption rate for
the affordable segment is expected to increase. It
should be noted that an increasing interest rate, the
announcement of circular 36 and the end of the
VND30 trillion stimulus house mortgage package will
reduce demand and sales momentum in the middle
segments (mid-end and high-end). The luxury
segment is forecast to maintain its current high
absorption level.
In terms of primary price outlook, in HCMC, the luxury

segment is expected to see a significant increase of
18% y-o-y in 2017 thanks to the introduction of unique
products with special designs and prime locations. In
contrast, the affordable and mid-end segments will be
relatively stable with a modest improvement of about
3% as buyers in this segment are sensitive to price
changes. The high-end segment is expected to see
price improvements of about 4% y-o-y. In Hanoi, the
average primary asking price is forecast to increase

1% to 3% in the coming year.
78
(Cont'd)
79
80
Source: CBRE Vietnam, Q4 2016.
Note: (1) Base year is 2005 (2) No luxury projects in Hanoi until 2011
Notes on CBRE condominium ranking criteria:
• Luxury: projects that have primary prices over US$3,500 psm
• High-end: projects that have primary prices from US$1,500 psm to US$3,500 psm
• Mid-end: projects that have primary prices from US$800 psm to US$1,500 psm
• Affordable: projects that have primary prices under US$800 psm
RETAIL
In 2016, HCMC welcomed five new shopping centres,

one in the CBD and four in non-CBD areas. These
new centres added more than 192,000 NLA sm, an
increase of 50% y-o-y while Hanoi saw only two new
projects opening in 2016; Vincom Center Pham Ngoc
Thach and Vincom Plaza Bac Tu Liem, providing
45,900 sqm to the market. These new openings have
introduced to the local market many new international
brands in various categories from high-end fashion to
restaurants, cafés and supermarkets. According to
CBRE Research, 17 new popular international brands
entered the HCMC market in 2016, triple the number
in 2015. Zara with its first flagship store in HCMC was
the most significant entry in 2016. Following the
success of Zara, H&M and 7-eleven are two big
names also considering expansion in Vietnam.
Throughout the year we witnessed strong expansion
of both local retailers, such as Vincom and Co.opMart,
and foreign retailers, such as Aeon, Lotte, Ilahui
Miniso, etc.
The vacancy rate was 6.8% in HCMC and 5.2% in

Hanoi. One of the reasons for the improvement in
occupancy was the high occupancy rate at opening of
new retail properties. In addition, the closure of one
department store which previously experienced a high
vacancy rate also contributed to this change. Hanoi
also saw struggling shopping centres closing, moving
or restructuring to improve performance. The recent
closure of a shopping mall reiterated the importance of
positioning, target customers and tenant mix.
In terms of asking rental rates, average rents of

Ground Floor & First Floor retail property in HCMC
increased by 15.4% y-o-y. Prime locations, limited
supply and the influx of many new brands are factors
that contributed to the leveraging of the rental rate.
Meanwhile, the average rental rate in non-CBD areas
was flat in 2016. Average rents of Hanoi shopping
centers witnessed an increase of 2% y-o-y in CBD
areas and a decline of 5.9% y-o-y in non-CBD areas.
(Cont'd)
81
Over the next three years, 500,000 sm NLA of retail
space are expected to open in HCMC and in the same
period 400,000 sm NLA are expected to open in
Hanoi. Limited availability of land in CBD areas,
improving infrastructure and increasing average
income will support the opening of more shopping
centres in decentralised areas. Increasing future
supplies in non-CBD areas in HCMC are expected to
dilute average rental rates, causing a projected
decrease of 2% annually for the next two years in
HCMC and 0.3% in Hanoi.
82
(Cont'd)
83
OFFICE
2016 welcomed two new Grade A buildings (Maple-

tree Business Centre in District 7, HCMC and TNR
tower in Hanoi) and seven Grade B buildings (One in
HCMC and six in Hanoi). The HCMC market is still
facing limited supply, leading to tight vacancy rates in
existing properties and a drop in total net absorption.
Vacancy rates in 2016 for Grade A and Grade B office
buildings were 8.0% and 2.9%, respectively. Grade A
net absorption was recorded at 11,316 sm NLA while
Grade B recorded 23,172 sm NLA. Average rental
rates were US$36.6 (1.9% y-o-y) and US$ 21 (6.2%
y-o-y) in Grade A and Grade B, respectively.
In contrast, in Hanoi it is notable that office space in

CBD areas is less popular, leading to an expansion to
decentralised areas. The average asking rent in grade
A went down by 4.5% y-o-y due to newer supply being
offered at lower rental rates than the market average
in order to attract higher occupancy. The Grade A
average rent in Hanoi decreased to US$28.5 while
Grade B remained stable at US$17.8. With six new
buildings opening in 2016, vacancy rates in both grade
A and B increased. In particular, the grade A vacancy
rate increased by 3.3 ppts to 15.8% while grade B
increased by 5.6 ppts y-o-y to end 2016 at 16.5%.
Annual net absorption was 87,500 sm in 2016.
Looking forwards, rental growth prospects in both

cities are limited as new supply will continue to enter
the market. Buildings in CBD areas are expected to
perform better. In HCMC, the average asking rental
rate is expected to enjoy an average stable growth of

1.5%, especially in the CBD area. The asking rental
rate for Grade B is expected to become more competi-
tive as new supply from both Grade A and Grade B
enters the market. SJC Tower and the Tax Center, two
very significant sites in HCMC which have been
inactive for some time, restarted construction in Q4
2016. When completed in 2020, these two projects will
add 83,000 sm GFA to the total supply.
84
In Hanoi, large-scale office buildings are being actively
constructed and fitted out for launch, which will add to
both grade A and B stocks. The most active areas are
the West and Midtown which will lead to more compe-
tition. Existing buildings have to improve their services
as well as offering more competitive rents if they are to
compete successfully with these new entrants to the
market.
(Cont'd)
85
86
Regarding office trends, co-working space is on the
rise with Toong to join the HCMC market in Q1, 2017
through partnership with CapitaLand. Currently,
HCMC has 10 co-working spaces. Two other large
co-working space chains, Dreamplex and Up, are
already considering expansion in the near future in
HCMC.
In 2017, the main drivers for leasing will be expansion

and relocation to newer buildings. Tenants in Grade A
buildings are expected to continue to move to newer
buildings once their rental contracts have expired with
tenants from Grade B quickly absorbing the available
leasing areas left by outgoing Grade A tenants.
Tenants will also expand their offices in the same
building in which they are currently leasing or they will
relocate to newer buildings. According to transactions
recorded by CBRE, the highest demand for office
space in 2016 came from the Finance – Banking,
Logistics and Technology sectors. As the startup
scene continues booming in Vietnam, tenants will
have a choice between traditional office spaces,
business centers and co-working spaces. CBRE
forecasts that older buildings will surrender old retail
podium and difficult to lease office spaces to develop
into either business centers or co-working spaces.
(Reproduced by kind permission of

CB Richard Ellis)
87
LANGUAGE
Vietnamese was declared the official language of

Vietnam in 1945, as much as 70% of the vocabulary is
borrowed from Chinese and the intonation is similar to
Cantonese. It is spoken by approximately 90% of the
Vietnamese population and ranked as the world’s 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
records and financial statements provided that they
meet all requirements specified in Circular
244/2009/TT-BTC issued by the Ministry of Finance
(“MoF”). Accounting records are required in Vietnam-
ese language, but this can be combined with a
commonly-used foreign language. At the end of a
financial year, the entity must perform a physical count
of its fixed assets, cash and inventory.
Companies operating in Vietnam are required to

comply with the Vietnam Accounting System (“VAS”).
It is possible to diverge from the standard VAS, but this
is subject to specific approval from the MoF. The 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.
The annual financial statements of all foreign-invested

business entities must be audited by an independent
auditing company operating in Vietnam. Audited
annual financial statements must be completed within
90 days from the end of the financial year. These
financial statements should be filed with the applicable
licensing body, MoF, local tax authority, Department of
Statistics, and other local authorities if required by law.
90
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 commer-
cial 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.
(Cont'd)
91
BANKS
Banks can provide customers with all kinds of

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

types, some commonly used in the economy are such
as bid bond, performance bond, warranty guarantee,
payment guarantee or advance payment guarantee…
Fee for issuance of bank guarantee is 2% p.a. of the
guarantee value plus a small amount charge on
documentation. Customers can request banks to
issue for them a bank guarantee by deposit fund to
bank or from a credit line offered by bank.
92
GOVERNMENT ADMINISTRATION
The National Assembly is the highest representative

organ of the people and the highest organ of the state
power of the Socialist Republic of Vietnam. Members
are elected for a five year tenure through nation wide
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 are
carried out through the Ministries, State Committees and
General Departments by promulgating and explaining the
Constitution, law and decree-laws.
The Country’s President is the head of state, elected by

the National Assembly from among its members to
represent the Socialist Republic of Vietnam in internal
and foreign affairs. The Vice President is proposed by
the President and elected by the National Assembly from
the representatives. The National Defense and Security
Council has the duty to mobilize all forces and potentials
of the country to defend the Homeland.
The Government is the executive organ of the National

Assembly and shall report to the National Assembly,
the National Assembly standing committees and the
Country’s President. The Goverment consists of the
Prime Minister, Deputy Prime Minister, Ministers and
Heads at ministerial level. The Prime Minister is
presented by the President and elected by the National
Assembly and has the term of 5 years. The Deputy
Prime Ministers are the assistants of the Prime
Minister and may be delegated by the Prime Minister
during his absence. The Ministers and Heads at
ministerial levels take on the State management of
allotted branches or fields.
The People’s Supreme Court is the highest judicial organ

of the Socialist Repulic of Vietnam. The court consists of
the Tribunal President, Vice Tribunal President, judges,
the juror and the secretary of the court. Moreover, the
court is composed of the judge Council, judge Committee,
the Military court and criminal court, civilian court, the
court of appeal and the assistant apparatus.
93
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 20% from 1 January 2016.
A CIT rate of 10% shall be applicable to income from

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

ment, real estate developers are required to pay
provisional CIT, either at 20% on provisional income if
the corresponding expenses can be determined and
matched with the revenue or 1% on advanced
payments if not. However, no revenue recognition is
allowed for the advance payment.
Where the enterprise sub-leases out a property, if the

lessee pays a lump sum for a number of years and
certain conditions are met then the lessor is able to
recognise revenue by one of two methods: (i) on allocat-
ed 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
94
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:
(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 infrastruc-

ture 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
(Cont'd)
95
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 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 purchas-
es but can still pay the CIT on a deemed basis.
V. Personal Income Tax ("PIT")
Generally, real estate (other than a property used as a

sole residential property and some other specific
exempt transactions) transferred by an individual is
subject to PIT. Property transactions subject to PIT
include the transfer of "the right to buy", and the
transfer of "the right to lease".
96
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 at 2% on the transfer price.
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-agricul-
tural land used for residential, production or business
purposes.
The calculation of the tax liability is generally based on

the land area, price of land (normally set by the provin-
cial-level People Committee and remains unchanged
within 5 years from 1 January 2012) and tax rate. For
residential land holding a multi-floor building or
non-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 31 March 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
(Cont'd)
97
basis for many years within a 5-year period, the
payment of tax may not be later than 31 December of
the year in which the request is made.
NALUT exemption and reduction can be granted to

certain types of land including land related to invest-
ment projects in the sectors eligible for special invest-
ment incentives, investment projects in geographical
areas with qualifying socio-economic difficulties and
other specific cases.
(Reproduced by kind permission of KPMG)

cutting through complexity TM
98
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 arrange-
ments with international reinsurance organizations.
The leading reinsurers and those who carry more than
10% have to be rated at least BBB by Standards &
Poors or B++ by AM Best or Baa by Moody's or
equivalent.
Vietnam passed a comprehensive Insurance Law in

December 2000 which took effect on April 1, 2001.
The Amendment of Insurance Law has been passed
and was effective as at July 1, 2011. The key changes
are focused at keeping up with any WTO commit-
ments such as: the insurance market is professional &
open, foreign insurers are allowed to establish a
branch in Vietnam or issue an insurance policy into
Vietnam. However, the law gives the power to the
government to release detailed guidance and to
license such transactions. The Decree No.
123/2011/ND-CP was issued on 28 Dec 2011 to
provide guidance on the implementation of the
Amended Insurance Law. In addition, the 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.
(Cont'd)
99
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 for liability of a particular project.
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 contrac-
tors. 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 specialized laws. Below is the consolidation:
100
▪ 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 waterways -
(Article 6 &7 of Decree 125/2005/ND-CP and Article 58 &
126 of Marine Law)
▪ Professional Indemnity Insurance for
- Insurance brokers - (Article 8 of Law on Insurance

Business)
- Lawyers - (Article 8 of Law on Insurance Business &
Article 40 of Law on Lawyer)
- Contractor to perform survey for construction works
(Article 51 of Law on Construction)
- Contractor to design for construction works - (Article 58 of
Law on Construction)
- Contractor to supervise for execution of building works -
(Article 90 of Law on Construction)
- Securities companies - (Article 71 of Law on Securities)
- Fund management companies - (Article 72 of Law on
Securities)
- Auditing Companies - (Decree 105/2004/ND-CP on
independent auditor)
- Enterprises on price assessment - Article 11 of Decree
111/2005/ND-CP on Price assessment)
- Medical examination and treatment
▪ Insurance for Construction works:
- Applicable to investors/developers - (Article 75 of Law on

Construction)
- Applicable to contractors - (Article 76 of Law on
Construction)
- Applicable to parties who call construction tender - (Article
104 of Law on Construction)
- Professional insurance, civil liability insurance and
environmental damage compensation liability insurance
applicable to organizations and individuals performing
radiation jobs
(Cont'd)
101
▪ 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.
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 Corpora-

tion (PVI), PG Insurance (PJICO), Post & Telecommu-
nication 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)
Joint 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, SGI Hanoi
102
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).
PVI Reinsurance Joint Stock Corporation (PVIRe)
30 Non-life Insurers
Joint-stock Joint-venture Foreign-owned

(17) (2) (11)
♦ Bao Viet ♦ UIC ♦ AIG

♦ Bao Minh ♦ Baoviet Tokyo ♦ QBE
♦ Bao Long Marine ♦ Groupama
♦ PVI ♦ ACE
♦ PJICO ♦ Liberty
♦ PTI ♦ MSIG
♦ VASS ♦ Fubon
♦ AAA ♦ PAC
♦ GIC ♦ Cathay
♦ ABIC ♦ Samsung
♦ MIC ♦ SGI Hanoi
♦ VNI
♦ HVI
♦ BSH
♦ Vietinsco
♦ Xuan Thanh
♦ BIC
(Source: Vietnam Insurance Associate – Quarter 1 of 2015)
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.
(Cont'd)
103
International:
Jardine Lloyd Thompson (JLT), Aon, Marsh, Grass
Savoye Willis, Toyota Tsusho
Local:
Viet Quoc, A Dong, Thai Binh Duong, Sao Viet, CIMEI-
CO, Nam A
Non-life insurance market share up to QIII of 2015

Employee Benefit Line
Loss ratio up to QIII of 2015

Employee Benefit Line
(Reproduced by kind permission of Jardine Lloyd
104
WORKFORCE
The estimated population of Vietnam in 2017 will be

circa 94 million (as the General Office for Population
Family Planning).
According to article 22 Circular 26/2016/TT-BLĐT-

BXH, from 15 October 2016, the maximum expendi-
ture of mid-shift meals of employees is increased to
VND 730,000 per person monthly (the previously-stip-
ulated maximum is not exceeding 680,000 VND per
person monthly).
As expected, the monthly minimum wage will increase

by an average of 7.3 per cent in 2017. Whereby,
region-based minimum wages shall be applied as
follows:
√ VND 3,750,000/month shall be applied to enterprises

operating in region I.
operating in region II.
operating in region III.
operating in region IV.
105
Vietnam Map
Domestic Routes
Vietnam Key Data
Some Interesting Facts
Relevant Websites
Public Holidays
Prime Rates
Financial Formulae
IDD Codes and Time Differences
Conversion Factors
Arcadis Asia Leadership Team
Arcadis Asia Sectors
Arcadis Asia Services
Directory of offices
Acknowledgement
108
VIETNAM MAP
DOMESTIC ROUTES
Route Distance Duration

(km)
From Hanoi to:
Buon Ma Thuot (Dak Lak) 960 01h40'
Cam Ranh (Khanh Hoa) 1039 01h45'
Can Tho 1221 02h10'
Chu Lai (Quang Nam) 770 01h55
Da Lat (Lam Dong) 1065 01h50'
Da Nang 606 01h15'
Dien Bien Phu (Dien Bien) 301 01h05'
Dong Hoi (Quang Binh) 399 01h25'
Ho Chi Minh City 1138 02h05'
Hue 549 01h10'
Phu Quoc (Kien Giang) 1575 02h10'
Pleiku (Gia Lai) 814 02h20'
Quy Nhon (Binh Dinh) 882 01h35'
Tuy Hoa (Phu Yen) 956 02h35'
Vinh (Nghe An) 254 01h00
From Ho Chi Minh City to:
Ca Mau 248 01h00'
Chu Lai (Quang Nam) 557 01h15
Con Dao (Ba Ria - Vung Tau) 248 01h00'
Danang 603 01h15
Dong Hoi (Quang Binh) 745 01h35'
Hai Phong 1111 02h00'
Hanoi 1138 02h05'
Hue 630 01h20'
Phu Quoc (Kien Giang) 300 01h05'
Quy Nhon (Binh Dinh) 431 01h10'
Rach Gia (Kien Giang) 194 00h55'
Tuy Hoa (Phu Yen) 381 01h00'
Vinh (Nghe An) 883 01h45'
From Da Nang to:
Hai Phong 709 01h15'
Hanoi 606 01h15'
Ho Chi Minh City 603 01h15'
Vinh (Nghe An) 452 01h15’
109
VIETNAM KEY DATA
Government
Country Name : The Socialist Republic of Vietnam
Head of State : President
Government Type : Socialist Republic
Head of Government : Prime Minister
Capital City : Hanoi
Administrative Divisions : 58 provinces and 5 municipalities
Independence : 2nd September 1945
Legal System : Based on Constitution of Vietnam
Official Language : Vietnamese
National Language : Vietnamese
Geography
Geographic Coordinates : 16 10 N, 107 50 E
Location : South East Asia
Border Countries : Cambodia 1,158 km,
China 1,297 km, Laos 2,161 km
Total Area : 331,210 sq km
Land Area : 310,070 sq km
Water : 21,140 sq km
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
Natural Resources : 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 : occasional typhoons (May to January)
with extensive flooding, especially in
the Mekong River delta
People
Total Population : 92.70 million (2016 est.)
110
Age structure : Urban: 34.6%
Rural: 65.4%
Male: 49.4%
Female: 50.6%
Population Growth Rate : 1.08% (2016 est.)
Median Age : total: 30.8 (est. 2016)
Life Expectancy : average age: 73.4 years old
male: 70.8 years old
female: 76.1 years old
Urban Population
Hanoi :7.38 million (2015 est.)
Ho Chi Minh City : 8.42 million (est. 2016)
Ethnic Groups : 54 Ethnic Groups
Kinh (Viet) 85.7%, Tay 1.9%, Thai
1.8%, Muong 1.5%, Khome 1.5%,
Hmong 1.2%, Nung 1.1%,
others 5.3%
(2009 census)
Languages : Vietnamese (official), English
(increasingly favored as a second
language), some French, Chinese,
and Khmer; mountain area languages
(Mon-Khmer and Malayo- Polynesian)
Literacy (definition: age : total population: 94.9% (2015 est.)
15 and over can read male: 96.6% (2015 est.)
and write) female:93.3% (2015 est.)
Population below : 11.3% (2012 est.)
poverty line
Labor Force : 54.4 million (est. 2016)
Labor Force by : Agriculture: 41.9% (est. 2016)
occupation Industry: 24.7%(est. 2016)
Services: 33.4% (est. 2016)
Unemployment Rate : 2.29% (est. 2016)
Economy
Monetary Unit : Vietnamese Dong
Currency Code : VND
Exchange rate to dong (VND) per
USD : 22,338 (est. 2016)
Euro : 24,881 (est. 2016)
British Pound : 30,514 (est. 2016)
Average Consumer : 2.66% (est. 2016)
111
VIETNAM KEY DATA
Price Index (CPI)

Fiscal Year : 1 January to 31 December
GDP (Official Exchange : US$ 136,74 billion (est. 2016)
Rate)
GDP Growth Rate : 6.21% (est. 2016)
GDP composition by : Agriculture: 16,32% (est. 2016)
sectors Industry: 32,72% (est. 2016)
Services: 40,92% (est. 2016)
Trade
Total Exports : US$ 175.9 billion (est. 2016)
Major Exports Commodities : 1 - Telephones, mobile phones and
parts thereof
2 - Textiles and garments
3 - Computers, electrical products,
spare-parts and components thereof
4 - Foot-wear
5 - Fishery products
6 - Crude oil
7 - Machine, equipment, tools and
instruments
8 - Wood and wooden products
9 - Other means of transportation,
parts and accessories thereof
10 - Rice
Export Partners : EU 10%, US 14%, Asean (-4,8%),
Japan 3.4%, Korea 29%, China 26.3%
Total Imports (USD : US$ 173.3 billion (est. 2016)
billion)
Major Imports Commodities : 1 - Machine, equipment, tools and
instruments
2 - Computers, electrical products,

spare-parts and components thereof
3 - Textile, leather and foot-wears
materials and auxiliaries group
4 - Telephones, mobile phones and
parts thereof
5 - Petroleum products
6 - Iron and steel
7 - Plastics
112
8 - Animal fodders and animal fodders
materials
9 - Chemical
10 - Other means of transportation,
parts and auxiliaries thereof
Commodities : products, fertilizer, steel products, raw
cotton, grain, cement, motorcycles
Import Partners : China 0.5%, Asean (-0.3%),
Korea 31.7%, EU 11.1%,
Japan 4.3%, US 11.6%
International Airports : Tan Son Nhat International Airport
(Ho Chi Minh City), Da Nang
International Airport (Da Nang), Hanoi
Noi Bai International Airport
(Hanoi), Nha Trang Cam Ranh
International Airport (Nha Trang),
Can Tho International Airport (Can Tho)
Major Seaports : Cam Pha Port (Quang Ninh),
Hai Phong Port (Hai Phong), Nghi Son
Port (Thanh Hoa), Cua Lo Port (Nghe
An), Vung Ang Port (Ha Tinh), Chan
May Port (Thua Thien Hue), Da Nang
Port (Da Nang), Dung Quoc Port
(Quang Ngai), Quy Nhon Port (Binh
Dinh), Van Phong Port (Khanh Hoa ),
Saigon Port (Ho Chi Minh City), Vung
Tau Port (Vung Tau), Dong Nai Port
(Dong Nai), Can Tho Port (Can Tho)
113
SOME INTERESTING FACTS
Vietnam’s history can roughly be divided into the following

periods:
Pre-history: from circa 400,000 years (Palaeolithic to 4,000
years (Neolithic) ago, cultures in the area included Son Vi,
Hoa Binh, Bac Son, Ha Long, and Hoa Loc.
Proto-history: According to legends, Vietnam riginated in
the seventh century BC when the Hung Kings founded Van
Lang. In the third century BC, King An Duong Vuong
named founded Au Lac and ruled until 179 B.C.
Chinese Occupation: Vietnam was occupied by China
from the first to the tenth century A.D.
Monarchy: Kings rules the area from 968 to 1945.
Independence: The Socialist Republic of Vienam was
founded after the 1945 revolution, when President Ho
Chi Minh declared independence.
French War: Vietnam battled French colonialism from
1858 to the August Revolution in 1945, and from 1946
to the victory at Bien Bien Phu in 1954.
American War: Vietnam fought America from 1954 to
Ho Chi Minh’s victory on April 30, 1975.
From 1975 until now: Vietnam has been working towards
development and success and has been member of
International Organizations
1976: Non–Aligned Movement (NAM)
1976, Jun: World Intellectual Property Organization
(WIPO)
1976, Oct: Member of UNESCO
1977, Sep: Vietnam became the member of The United
Unions (UN)
1995, Jul: Vietnam became the seventh member of

Association of Southeast Asian Nations (ASEAN)
1995, Jul: ASEAN Free Trade Area (AFTA)

1996: The Asia-Europe Meeting (ASEM)
1998, Nov: Asia-Pacific Economic Cooperation (APEC)
2000, Jul: signed the Bilateral Trade Agreement (BTA)
with the United States
2007, Jan: Vietnam became the 150th member of the
World Trade Organization (WTO)
2013, Jul: Vietnam maintains diplomatic relationships with
182 nations throughout the world, including permanent
members of United Nations Security Council
114
115
RELEVANT WEBSITE
Government Office
Ministry of Public Security
Ministry of Home Affairs
Ministry of Justice
Ministry of Planning and Investment
Ministry of Finance
Ministry of Industry and Trade
Ministry of Agriculture and Rural Development
Ministry of Transport
Ministry of Construction
Ministry of Natural Resources and Environment
Ministry of Information and Communication
Ministry of Labor, War Invalid and Social Affairs
Ministry of Culture, Sports and Tourism
Ministry of Science and Technology
Ministry of Health Portal
Ministry of Education and Training
Ministry of Foreign Affairs
The State Bank of Vietnam
General Statistics Office of Vietnam
Directorate for Standards, Metrology and Quality

Vietnam National Administration of Tourism
Vietnam Customs
Vietnam Register
116
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://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
117
PUBLIC HOLIDAYS
2017
VIETNAM
Normal Scheduled Holidays
New Year’s Day 01 Jan
02 Jan#
Lunar New Year 27 Jan
28 Jan
29 Jan
30 Jan
31 Jan
01 Feb@
02 Feb@
Hung Vuong King Celebration 06 Apr
Liberation Day of Saigon 30 Apr
International Labour Day 01 May
02 May+
National Day 02 Sep
04 Sep*
Christmas Day 25 Dec
# Substitute for 01 January 2017 (Sunday)

@ Substitute for 28 and 29 January 2017 (Saturday and Sunday)
+ Substitute for 30 April 2017 (Sunday)
* Substitute for 02 September 2017 (Saturday)
118
2017
HONG KONG
The day following the first day 02 Jan*
of January
Lunar New Year's Day 28 Jan
The 3rd day of Lunar New Year 30 Jan
The 4th day of Lunar New Year 31 Jan
Ching Ming Festival 04 Apr
Good Friday 14 Apr
The day following Good Friday 15 Apr
Easter Monday 17 Apr
Labour Day 01 May
Buddha's Birthday 03 May
Tuen Ng Festival 30 May
HKSAR Establishment Day 01 Jul
The day following National Day 02 Oct*
The day following the Chinese
Mid-Autumn Festival 05 Oct
Chung Yeung Festival 28 Oct
The 1st week-day after Christmas Day 26 Dec
* As both the first day January and National Day in 2017 fall on a
Sunday, the day following them designated as a general holiday
in substitution. In addition, since the second day of Lunar New
Year in 2017 falls on a Sunday, the fourth day of Lunar New
Year is designated as a general holiday in substitution.
119
PUBLIC HOLIDAYS
2017
CHINA
New Year's Day ♥ 01 Jan

Chinese New Year’s Eve 27 Jan
Chinese New Year @ 28 Jan
29 Jan
Tomb-Sweeping Day Ω 04 Apr
Labour Day ♣ 01 May
Dragon-Boat Festival * 30 May
National Day ᵬ 01 Oct
02 Oct
03 Oct
Mid-Autumn Festival ♣ 04 Oct
♥ 2 January 2017 is holiday.

@ 30 - 31 January 2017, 1 - 2 February 2017 are holidays,
22 January 2017 and 4 February 2017 are working days.
Ω 2 and 3 April 2017 are holidays, 1 April 2017 is working day.
♣ 2 - 3 May 2017 are holidays .
* 28 and 29 May 2017 are holidays . 27 May 2017 is working day.
ᵬ 5 - 8 October 2017 are holidays, 30 September 2017 is
working day.
120
2017
MACAU
New Year's Day 01 Jan*
The first working day after
New Year’s Day 02 Jan#@
Lunar New Year’s Eve (Afternoon) 27 Jan@
Lunar New Year's Day 28 Jan*
The 2nd day of Lunar New Year 29 Jan*
The 3rd day of Lunar New Year 30 Jan*#
The 4th day of Lunar New Year 31 Jan#@
The 5th day of Lunar New Year 01 Feb@
Ching Ming Festival 04 Apr*#
Good Friday 14 Apr#
The day before Easter 15 Apr
The 1st working day after Easter 17 Apr#@
Labour Day 01 May*#
The Buddha's Birthday 03 May#
Tung Ng Festival (Dragon Boat Festival) 30 May#
National Day 01 Oct*
The day following National Day 02 Oct#
The 1st working day after National Day 03 Oct@
The day following Mid-Autum Festival 05 Oct*#
Chung Yeung Festival 28 Oct*
The 1st working day after Chung Yeung
Festival 30 Oct#@
All Soul's Day 02 Nov#
Feast of the Immaculate Conception 08 Dec#
Macau SAR Establishment Day 20 Dec*
Winter Solstice 22 Dec#
Christmas Eve 24 Dec
Christmas Day 25 Dec#
The 1st working day after Christmas Day 26 Dec#@
* Obligatory Holiday
# Bank's Holiday
@ Special holiday granted by Chief Executive for staff in Public
Administration
121
PUBLIC HOLIDAYS
2017
BRUNEI
New Year's Day 01 Jan
Chinese New Year 28 Jan
National Day 23 Feb
Israk Miraj 24 Apr
1st Day of Ramadhan 27 May
Royal Brunei Armed Forces Day 31 May
Nuzul Al-Quran 12 Jun
Hari Raya Puasa 26 Jun
27 Jun
28 Jun
Sultan Birthday 15 Jul
Hari Raya Haji 01 Sep
INDIA
Republic Day 26 Jan
Good Friday 25 Mar
Ugadi 08 Apr
Ramnavami 15 Apr
Independence Day 15 Aug
Ganesh Chaturthi 05 Sep
Dusshera 12 Oct
Karnataka Formation Day 01 Nov
122
2017
INDONESIA
Chinese New Year (Imlek) 28 Jan
Election Day (Region) 15 Feb
Hindu Day of Quiet (Nyepi) 28 Mar
Good Friday 14 Apr
Ascension of Prophet Muhammad 24 Apr
International Labour Day 01 May
Waicak Day 11 May
Ascension Day of Jesus Christ 25 May
Pancasila Day * 01 Jun
Idul Fitri 25 Jun
26 Jun
National Independence Day 17 Aug
Idul Adha Day 01 Sep
Hijriyah New Year 21 Sep
Prophet Muhammad’s Birthday 12 Dec
* New holiday, start from 2017
MALAYSIA
New Year's Day ^ 01 Jan@
29 Jan
Labour Day 01 May
Wesak Day 10 May
King/Agong's Birthday 03 Jun
Hari Raya Aidilfitri * 25 Jun
26 Jun
National Day 31 Aug
Hari Raya Qurban * 01 Sep
Malaysia Day 16 Sep
Awal Muharam (Maal Hijrah) 21 Sep
Deepavali * 18 Oct
Prophet Muhammad's Birthday 01 Dec
* Subject to change
^ Except Johor, Kelantan, Kedah, Perlis and Terengganu
@ The following Monday will be an additional public hoiliday
123
PUBLIC HOLIDAYS
2017
PHILIPPINES
New Year's Day 01 Jan*
Chinese New Year 28 Jan#
EDSA People Power Revolution
Anniversary 25 Feb#
Araw ng Kagitingan 09 Apr*
Maundy Thursday 13 Apr*
Good Friday 14 Apr*
Black Saturday 15 Apr#
Labor Day 01 May*
Independence Day 12 Jun*
Ninoy Aquino Day 21 Aug#
National Heroes' Day 28 Aug*
Additional Special Non-working Day 31 Oct#
All Saint’s Day 01 Nov#
Bonifacio Day 30 Nov*
Christmas Day 25 Dec*
Rizal Day 30 Dec*
Last Day of the Year 31 Dec#
* Regular Holidays
# Special Non-Working Days
124
2017
SINGAPORE
29 Jan
Good Friday 14 Apr
Labour Day 01 May
Vesak Day 10 May
Hari Raya Puasa 25 Jun@
National Day 09 Aug
Hari Raya Haji 01 Sep
Deepavali * 18 Oct
* Subject to change.
@ The following Monday will be a public holiday.
SOUTH KOREA
Lunar New Year (Seol) 28 Jan
Independent Movement Day 01 Mar
Buddha’s Birthday 03 May
Children’s Day 05 May
Memorial Day 06 Jun
Liberation Day 15 Aug
National Foundation Day 03 Oct
Full Moon Day (Chuseok) 04 Oct
Hangul Proclamation Day 09 Oct
National Holiday 20 Dec
(Cont'd)
125
PUBLIC HOLIDAYS
2017
TAIWAN
Founding Day 01 Jan
Lunar New Year's Eve 27 Jan
Lunar New Year's Day 28 Jan
The 2nd day of Lunar New Year 29 Jan
The 3rd day of Lunar New Year 30 Jan
The 4th day of Lunar New Year 31 Jan*
The 5th day of Lunar New Year 01 Feb*
Peace Memorial Day 28 Feb
Children's Day 03 Apr*
Ching Ming Festival 04 Apr
Extra vacation day before
Dragon Boat Festival 29 May#
Dragon Boat Festival 30 May
Mid-Autumn Festival 04 Oct
Extra vacation day before
Double Ten Day 09 Oct@
Double Ten Day 10 Oct
* 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 of is on the the
preceding workday; if a memorial day or a holiday falls on a
Sunday, the deferred day off is on the following workday.
However, the deferred days off for Chinese New Year's Eve and
Chinese New are always on the following workdays.
# The extra vacation days will have to be made up on the
Saturday after the long weekends occur.

@ The extra vacation days will have to be made up on the
Saturday one week before the long weekends occur.
126
2017
THAILAND
New Year 01 Jan*
Makha Bucha Day 11 Feb*
Chakri Memorial Day 06 Apr
Songkran Festival 13 Apr
14 Apr
Labour Day 01 May
Coronation Day 05 May
Wisakha Bucha Day 10 May
Asarnha Bucha Day 08 Jul*
H.M. The Queen's Birthday 12 Aug*
Chulalongkorn Day 23 Oct
H.M. The King's Birthday 05 Dec
Constitution Day 10 Dec*
* As both the New Year Day and Constitution Day in 2017 fall on
Sunday, the day following them is designated as a general
holiday in substitution; and as Makha Bucha Day, Asarnha
Bucha Day, H.M. the Queen’s Birthday is 2017 falls on
Saturday, the weekday after is designated as a general holiday
in substitution.
(Cont'd)
127
PRIME RATES
RATE (%)
COUNTRY
4Q 4Q 4Q
2014 2015 2016
Brunei 5.50 5.50 5.50
China** 6.15 4.75 4.75
Hong Kong 5.00 5.00 5.00
India 10.25 9.95 9.65
Indonesia 7.75 5.50 5.50
Macau 5.25 5.25 5.25
Malaysia^^^ 6.85 4.65 4.35
Philippines 4.360 4.510 4.36
Singapore 5.35 5.35 5.35
South Korea+ 2.00 1.50 1.24
Thailand# 7.28 7.10 6.97
United Kingdom 0.50 0.50 0.25
United States of America 3.25 3.25 3.50
Vietnam## 9.00 9.00 9.00
China** = 3-year Benchmark Lending Rate

Malaysia^^^ = Indicative Effective Lending Rate
South Korea+ = Call Rate of The Bank of Korea
(Implementation date is Nov 22nd 2012)
Thailand # = Minimum Loan Rate % per annum

(avg based on local bank)
Vietnam## = Min and in VND per year
128
FINANCIAL FORMULAE
Future value of $1 FV = PV (1 + i)n
Future value of $1 per period FV = PMT [((1+i)n - 1) ÷ i]
Sinking fund (the amount PMT = FV [ i ÷ ((1 + i)n - 1)]

required to be put away
periodically to realise some
future sum)
Present value of $1 PV = FV [1÷ (1+i)n]
Present value of $1 per period PV = PMT[((1+i)n -1)÷( i(1+i)n)]
Annuity with a PV of $1 PMT = PV[(i (1+i)n) ÷((1+i)n -1)]

(mortgage bond formula)
PV = present value
FV = future value
PMT = payment amount
n = period (e.g. 10 years with monthly payments, n = 10 x 12 = 120)
i = interest rate per period
(e.g. 12% p.a. compounded monthly;
i = 12% ÷ 12 months = 1% per period)
129
IDD CODES AND TIME DIFFERENCES
IDD TIME
AREA
LOCATION COUNTRY DIFFERENCE
CODE
CODE (Hours)*
Australia:
Melbourne 61 3 +3
Perth 61 8 0
Sydney 61 2 +3
Bahrain 973 - -5
Bangladesh (Dhaka) 880 2 -2
Bhutan (Thimphu) 975 2 -2
Brunei:
Bandar Seri Begawan 673 2 0
Kuala Belait 673 3 0
Cambodia (Phnom Penh) 855 23 -1
Canada:
Toronto (Metropolitan) 1 416 -13
Vancouver 1 604 -16
China:
Beijing 86 10 0
Guangzhou 86 20 0
Hong Kong 852 - 0
Macau 853 - 0
Shanghai 86 21 0
Shenzhen 86 755 0
France (Paris) 33 1 -7
India:
Bangalore 91 80 -2.5
Chennai 91 44 -2.5
New Delhi 91 11 -2.5
Mumbai 91 22 -2.5
Indonesia:
Bali 62 36 0
Jakarta 62 21 -1
Ireland:
Cork 353 21 -8
Dublin 353 1 -8
Japan:
Tokyo 81 3 +1
Osaka 81 6 +1
Korea (Seoul) 82 2 +1
Korea (Pyongyang) 850 2 +1
Laos (Vientiane) 856 21 +0.5
Source : www.worldtimeserver.com ; www.worldtimezone.com

www.timeanddate.com
130
IDD TIME
AREA
LOCATION COUNTRY DIFFERENCE
CODE
CODE (Hours)*
Malaysia:
Johor Bahru 60 7 0
Kota Kinabalu 60 88 0
Kuala Lumpur 60 3 0
Kuching 60 82 0
Penang 60 4 0
Mongolia (Ulaanbaatar) 976 11 0
Myanmar (Yangon) 95 1 -1.5
Nepal (Kathmandu) 977 1 -2.25
Netherlands:
Amsterdam 31 20 -7
New Zealand:
Auckland 64 9 +5
Wellington 64 4 +5
Pakistan (Karachi) 92 21 -3
Philippines (Manila) 63 2 0
Qatar 974 - -5
Singapore 65 - 0
South Africa:
Johannesburg 27 11 -6
Cape Town 27 21 -6
Sri Lanka (Colombo) 94 11 -2.5
Russia (Moscow) 7 495 -5
Taiwan (Taipei) 886 2 0
Thailand:
Bangkok 66 2 -1
Phuket 66 76 -1
United Arab Emirates:
Abu Dhabi 971 2 -4
Dubai 971 4 -4
United Kingdom:
London 44 20 -8
Edinburgh 44 131 -8
USA:
Los Angeles 1 213 -16
New York 1 212 -13
Vietnam:
Ho Chi Minh City 84 8 -1
Hanoi 84 4 -1
* As compared to Hong Kong. Allowance should be made for

seasonal time variations. Time differences above as at 1 January.
131
132
CONVERSION FACTORS
133
ARCADIS ASIA LEADERSHIP TEAM
Matt Bennion
Chief Executive Officer, Asia
matt.bennion@arcadis.com
Eric de Kruif
Chief Financial Officer, Asia
eric.dekruif@arcadis.com
Graham Kean
Regional Client Development
Director
graham.kean@arcadis.com
Lai Pak Hung

Regional Head, Greater China
pakhung.lai@arcadis.com
Rupert Leung
Managing Director
Design & Engineering
rupert.leung@arcadis.com
134
Loo Ming Chee
Regional Head, Southeast Asia
mcloo@arcadis.com
Alan Hearn
Regional Head, East Asia & India
alan.hearn@arcadis.com
Ken Butler
Regional Head of Health, Safety,
Environment and Quality
ken.butler@arcadis.com
Adam Sutton
Regional HR and Change Director
and Regional Leader for Business
Advisory
adam.sutton@arcadis.com
135
ARCADIS ASIA SECTORS
AUTOMOTIVE
At the present time we are witnessing a massive shift

in the automotive sector. Electric vehicles are rapidly
establishing themselves as a credible alternative as
their range and performance meets (and exceeds)
customer expectation. We are seeing more and more
brands developing their own models across the region.
In addition, the race for autonomous vehicles is leading
to the development of new technologies at a pace that is
unprecedented in the sector. We are helping our clients
to restructure their manufacturing bases to meet shifting
global demand, to remodel production lines for the new
models demanded by customers, and to invest in the
new supply chain technology.
Automotive retail continues to be fiercely competitive,

with digital technology entering this space creating a
more immersive buying experience. The race to roll out
new retail formats around the globe requires lean and
efficient delivery models and global standardization,
supply chains and logistics.
AVIATION
The recent successful launches of new airframe

technologies has caused airports to rethink how they
can service larger passenger planes, and, with the
prospect of new routes being enabled by longer range
and new airframe formats, we expect to see further
expansion and development of airports around the
globe.
Domestic air travel and cargo hubs are also among

popular areas of investment in aviation sector. Invest-
ment in domestic air travel is essential, as passengers
demand an experience comparable with the best
international airports. New cargo hubs are planned to
meet ‘same day’ delivery expectations from online
retailers and logistics firms. We expect to see continued
investment and demand for high quality design and
engineering solutions in the aviation sector for many
years to come.
136
ARCADIS ASIA SECTORS
CHEMICALS
FINANCIAL & PHARMACEUTICALS
INSTITUTIONS
The better
Driving chemical and pharmaceutical
investment industry faces
and asset performance and a
diverse range
improving of challenges
sustainable returnsacross globe.challenging
in current Growing and
ageingis populations
markets the key focus have created
of our sectorrising demands for
specialists.
medication and more effective cures for diseases. Asia
is no exception,
Through despite market
utilizing unique Asia having a relatively
insight, such as younger
our
population
global asset compared
performance the other regions. It isour
benchmarks, also deep
import-
ant to take
technical note thatand
knowledge, approximately
an unrivalled twoglobal
thirds track
of total
global
record demand with
in working growth for chemicals
financial is expected
institutions, we are able to be
generated
to define in Asia.
solutions to meet client needs and to enhance
their business outcomes.
In order to stay ahead of the competition, we work with
our clients across Asia to improve their supply chain and
OILsecure
AND GAS their pipelines. The chemicals and pharmaceuti-
cals industry will continue to be ‘on the move’ to Asia
with production
Rising rapid development
costs andinunpredictable
the future topricesfulfill demand
put oil
coming
& gas fromunder
clients Asia andmorebeyond.
pressure than ever. Growing
complexities of shifting environmental legislation combined
with an increased need for asset decommissioning, oil &
gas has become a complex and rapidly evolving sector.
COMMERCIAL DEVELOPERS
We partner with global oil & gas clients to maximize
Commercial
returns on ourdevelopers are a significant
clients’ investments, proportion
through better of
our marketofinproject
management Asia, especially in those
risks and costs, andcountries
improvement where
the economy
of opex performance. is driven by investment
We work across theinassetproperty. In the
lifecycle
fromlastconcept
10 yearsthroughChina, to for decommissioning.
example, has beenWe fuelled
bringby
demandupstream
together for properties& as a result of rapid
downstream urbanization,
expertise and
and this is from
understanding also anow
broad the case
base in countries
of capabilities such as
including
costVietnam
& risk and the Philippines.
management, environmental management,
project management and maintenance strategy.
All building types, including commercial offices, residen-
tial, leisure, hospitality and retail, are confronted with
RAILever increasing challenges in terms of efficiency of land
use, planning compliance, product positioning, cost,

quality,
Rapid impact
large scale on communities,
urbanization, sustainability
tight budgets andand
also
market competitiveness.
environmental sensitivity require Theinnovative
commercial developer
approaches
sector will
to deliver continue
advanced to play a keyWith
infrastructure. roleourin all economies
expertise in
rail,across
and our Asia.
transformational thinking, clients rely on us
to improve performance and connect communities
across countries and regions.
In Asia, we have been involved in providing engineering
138 137
design, cost management, contract administration, risk
management, business advisory and mobility oriented
design for numerous metro and high speed rail projects
in Hong Kong, Mainland China, Taiwan, Singapore and
Malaysia.
PORTS AND WATERWAYS
Ports are at the heart of globalization, facilitating the

spread of trade and prosperity. The rapid growth of Asia
has seen a substantial investment in port and logistics
infrastructure, but also increasing competition between
ports, and a focus on raising productivity and service
quality. At the same time, it is increasingly necessary to
respond to public concerns about environmental and
safety issues.
Delivering sustainable growth is a great challenge and

requires know-how and expertise across a broad range
of disciplines. We offer governments, port institutions,
private terminal operators, investors and shipping lines
all the disciplines necessary for an integrated approach
and the delivery of successful outcomes, whether in the
technical, operational, nautical, environmental, risk,
financial or economic arena.
RETAIL & CONGLOMERATES
As the world of retail faces the fiercest competition yet

due to a change in the traditional retail landscape and
the rapid development of online retail industry, we work
with our retail clients to gain a competitive advantage in
their market expansion or re-branding. It is essential
for us to tailor our services to fit client strengths and
needs, to minimize spend and achieve the best
solution for each individual company.
With unrivaled experience across all facets of retail

development, from luxury and sports fashion to
cosmetics, supermarkets and restaurant chains, we
help our clients successfully navigate through
complex challenges in retail development.
139
ARCADIS ASIA SERVICES
BUSINESS ADVISORY
From rapid urbanization and pressure on natural

resources, to tighter regulation and market consolidation,
we live in an increasingly complex world. In Arcadis you
have a partner that understands your business
challenges and has first-hand experience of the assets
you own and operate. We bring unique insights which
support you in getting better results with more certainty.
COST MANAGEMENT
Be it a high-rise office building, a state-of-the-art rail

station or a large scale industrial development, the
need to achieve value for money is central to every
investment strategy.
Our people understand the need to accurately advise

on costs and procurement at planning stage, ensuring
a development or program is both economically and
environmentally viable for many years to come.
ENVIRONMENT
We all deserve a clean, safe environment in which to

live. Now more than ever, businesses and governments
recognize the need to incorporate environmental
concerns into their decision making. Arcadis is a global
leader in inventive technical and financial approaches,
helping some of the world’s leading corporates and
governments understand their impact on the natural
world.
140
PROJECT & PROGRAMME MANAGEMENT
Organizing the creation of the world’s largest, most

complex and iconic programs of work in the built and
natural environment today is no easy task. Budgets,
supply chains, health and safety, timeframes and the
large number of parties involved can be daunting.
At Arcadis, we work alongside our clients to create the

right strategy, manage and mitigate risk, and assure
the outcomes to meet our clients’ business objectives
and create exceptional value.
WATER
From source to tap and then back to nature, the

planet’s most precious resource should be cherished.
Thanks to over a century of experience in the water

sector, Arcadis’ specialist teams around the globe are
uniquely positioned to provide safe and secure water
technology that is built to withstand the demands of a
rapidly changing world.
141
142
DIRECTORY OF OFFICES
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
ACKNOWLEDGEMENT
Arcadis Vietnam Co., Ltd would like to acknowledge

the invaluable support and advice from the following
organisations:
158

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1

ARCADIS VIETNAM CO., LTD

Tenth Edition 2017

© Arcadis Vietnam Co., Ltd

All rights reserved. No part of this publication

The information contained herein should be

handbook are current as at 4th Quarter 2016.

1. CONSTRUCTION COST DATA

Construction Market 2017 Outlook 10

2. GENERAL CONSTRUCTION DATA

Material Price Indices 42

Building Control and Procedures 52

Key Planning Parameter 58

4. VIETNAM BUSINESS ENVIRONMENT

Vietnam Map 108

This version of Arcadis Handbook - Vietnam 2017, as

The handbook is structured to serve as a general

The information contained in this handbook has been

Arcadis Vietnam Co., Ltd.

Construction Costs for Selected Asian Cities

Utility Costs for Selected Asian Cities

In 2016 we at ARCADIS have seen our business

Our rapid expansion in 2016 is a function of renewed

We think Vietnam will still expand as a manufacturing

Vietnams GDP growth in 2017 will remain quite strong

10 CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

Industry and construction Agriculture & Forestry & Aquaculture Service

1 Industry and construction 2,016 21,201

Electricity, gas and water production 2 132

Information and Communication 195 369

CONSTRUCTION COST DATA 13

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

1. Excavating basement ≤ 2.00m deep m3 92,400 250 185 35,000 1,990

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

Average expected preliminaries % 8 - 12 12 - 18 8 - 12 8 - 10 6 - 11

1. Excavating basement ≤ 2.00m deep m3 225 30 26 30 18

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

Average expected preliminaries % 10 - 15 5 - 10 7 - 10 5 - 10 5 - 10

1. Excavating basement ≤ 2.00m deep m3 130 20 15 - 22 3.5 140

10. Sawn formwork to columns and walls m2 250 42 38 - 45 15 420

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

Average expected preliminaries % 10 13 - 17 6 - 12 5-8 12 - 18

Budget hotels - 3-star, mid market 1) Interior decoration

Luxury hotels - 5-star 4) Operating Supplies and Equipment (OS&E) excluded

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

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