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Vietnam
Despite the subdued state of the Vietnamese property
market in the past five years, there is, however, a hint of
recovery in the coming year. The Vietnamese government
has taken recognition of the problem and has been actively
introducing measures to arrest the decline in its economy
by tackling inflation and reducing mortgage interest rates
to stimulate its property market.
In March 2013, Vietnam’s central bank announced that it
would inject US$1.4 billion (RM4.2 billion) into its banking
system to offer soft loans to home buyers in an attempt to
boost the property market and resolve long-standing debts.
The move will see banks providing loans at an interest
rate of 6% per annum to low-income home buyers, state
employees, and military personnel with loan tenures of at
least 10 years. The loans also extend to low-cost property
developers for loan tenure of five years.
The remedial action taken by the Vietnamese Government
is expected to help reduce inventories in the Vietnamese
property market and boost its stock market’s performance.
The division remains bullish on the prospects of the
Vietnamese property market in the coming year. With our
presence in Vietnam planned for the long-term, our two
landmark property projects – Gamuda City in Hanoi and
Celadon City in Ho Chi Minh City – are poised to contribute
positively to the division’s revenue in the near future.
Gamuda City, Hanoi, Vietnam
Spanning 480 acres, this mixed development is a wholly-
owned flagship project of the division. Launched in late
2011, this self-contained township comprises 4,051 units
of terraced and semi-detached homes, villas, apartments
and commercial lots.
Overlooking five large lakes with an adjoining world-class
urban recreation park, the development is easily accessible
via the national trunk road or the city’s ring road.
The initial uptake from the market has exceeded
expectations during its maiden launch, but sales have
slowed due to prevailing economic uncertainties in the
Vietnamese property market.
An ambitious urban redevelopment project, Gamuda City
is poised to achieve a strong market position in the coming
years especially with improving economic conditions in
Vietnam. Gamuda City has a remaining GDV of RM7.9
billion over the next 13 years.
038
Operations
Review
Gamuda Berhad (29579-T)
Annual Report 2013
Meticulously landscaped gardens, dotted by majestic homes with modern architectural design is one of the hallmarks of the latest Gamuda Gardens precinct in Gamuda
City, Hanoi.