Handbook 2012

Copyright Statement and information
caveat
Fifth Edition 2012
Davis Langdon & Seah Vietnam Co Ltd
All rights reserved. No part of this publication

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

regarded as indicative and for general
guidance only. Davis Langdon & Seah
Vietnam Co Ltd makes no representation,
expressed or implied, with regard to the
DAVIS LANGDON & SEAH VIETNAM CO LTD
accuracy of the information herein and cannot

accept any responsibility or liability for any
errors or omissions that may be made.
Unless otherwise stated, costs reflected in this

handbook are current as at 4th Quarter 2011.
2 32
Credits to KPMG, Jardine Lloyd Thompson.
CB Richard Ellis.
Davis Langdon & Seah Vietnam Co., Ltd. would

like to acknowledge the invaluable support and advice
from from the following organisations:
KMPG Vietnam
http://www.kpmg.com
Jardine Lloyd Thompson
http://www.jltasia.com
CB Richard Ellis
http://www.cbrevietnam.com
Projects featured on Cover Page (from left to right):

1. Bitexco Financial Tower, Ho Chi Minh City
2. Ben Thanh Tower, Ho Chi Minh City
3. Pullman Hotel, Ho Chi Minh City
4 52
TABLE OF CONTENT
Page No. Page No.

Table of Content 6 4. PROPERTY INVESTMENT
Introduction 9
Calendars 10 Building Control And Procedures 84
Project Closed Out Procedures 88
1. CONSTRUCTION COST DATA Typical Submission Flowchart 89
Plot Ratios And Site Coverage For Buildings 90
Construction Market 2012 Outlook 14 Key Design Criteria 91
Major Rates for Selected Asian Cities 22 Building Areas Definitions 93
Construction Costs for Selected Asian Cities 36 Procurement Strategies 98
M&E Costs for Selected Asian Cities 48 Contractor Selection Strategies 103
Utility Costs for Selected Asian Cities 56 Property Overview 108
2. GENERAL CONSTRUCTION DATA 5. OTHER INFORMATION
Material Price Indices 62 vietnam Map 116

Import Duties 64 Domestic Routes 117
Progress Payments 65 Relevant Websites 118
Estimating Rules of Thumb 66 Public Holidays 120
Prime Rates 129

3. VIETNAM BUSINESS ENVIRONMENT Idd Codes And Time Differences 130
Conversion Factors 132
Language 70 Some Interesting Facts 134
Accounting System 70 Vietnam Key Data 135
Banks 71
Government Administration 72 6. DLS INFORMATION
Taxation 74 Dls Culture 140
Import 77 Directory Of Offices 141
Insurance 78
Workforce 81
6 72
INTRODUCTION
Davis Langdon & Seah International has been

involved in the publication of construction costs
handbooks for countries such as Hong Kong, India,
Malaysia, Philippines and Singapore and is also the
editor of the Spons Price Book Series which
comprise:
Spons Asia Pacific Construction Costs Handbook
Spons European Construction Costs Handbook
Spons Architects' and Builders Price Book
Spons Civil Engineering and Highway Works Price
Book
Spons Mechanical and Electrical Services Price
Book
Spons Landscape and External Works Price Book
(co-edited by Derek Lovejoy Partnership)
This version of DLS Handbook - Vietnam 2012, 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 Davis Langdon & Seah 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 Davis Langdon & Seah International
Offices at the end of this handbook.
Davis Langdon & Seah Vietnam Co Ltd
8 92
CALENDARS
S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S
30 31 1 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 31 1 2
JAN FEB MAR JAN FEB MAR

2011
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12 6 7 8 9 10 11 12 3 4 5 6 7 8 9 3 4 5 6 7 8 9
9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19 13 14 15 16 17 18 19 10 11 12 13 14 15 16 10 11 12 13 14 15 16
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26 20 21 22 23 24 25 26 17 18 19 20 21 22 23 17 18 19 20 21 22 23
23 24 25 26 27 28 29 27 28 27 28 29 30 31 27 28 29 30 31 24 25 26 27 28 24 25 26 27 28 29 30
1 2 1 2 3 4 5 6 7 1 2 3 4 1 2 3 4 5 6 1 2 3 4 30 1
APR MAY JUN APR MAY JUN

3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11 7 8 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4 5 6 7 8
10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18 14 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 11 12 13 14 15
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25 21 22 23 24 25 26 27 19 20 21 22 23 24 25 16 17 18 19 20 21 22
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30 28 29 30 26 27 28 29 30 31 23 24 25 26 27 28 29
S M T W
F T S S M T W T F S S M T W
T F S S M T W T F S S M T W T F S S M T W T F S
31 1 2 1 2 3 4 5 6 1 2 3 1 2 3 4 5 6 1 2 3 1 2 3 4 5 6 7
JUL AUG SEP JUL AUG SEP

3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10 7 8 9 10 11 12 13 4 5 6 7 8 9 10 8 9 10 11 12 13 14
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17 14 15 16 17 18 19 20 11 12 13 14 15 16 17 15 16 17 18 19 20 21
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24 21 22 23 24 25 26 27 18 19 20 21 22 23 24 22 23 24 25 26 27 28
24 25 26 27 28 29 30 28 29 30 31 25 26 27 28 29 30 28 29 30 31 25 26 27 28 29 30 31 29 30
2013
30 31 1 1 2 3 4 5 1 2 3 1 2 3 4 5 1 2 1 2 3 4 5 6 7
OCT NOV DEC OCT NOV DEC

2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10 6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17 13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31
1 2 3 4 5 6 7 1 2 3 4 1 2 3 1 2 3 4 1 30 31 1
2012
JAN FEB MAR JAN FEB MAR

8 9 10 11 12 13 14 5 6 7 8 9 10 11 4 5 6 7 8 9 10 5 6 7 8 9 10 11 2 3 4 5 6 7 8 2 3 4 5 6 7 8
15 16 17 18 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 16 17 12 13 14 15 16 17 18 9 10 11 12 13 14 15 9 10 11 12 13 14 15
22 23 24 25 26 27 28 19 20 21 22 23 24 25 18 19 20 21 22 23 24 19 20 21 22 23 24 25 16 17 18 19 20 21 22 16 17 18 19 20 21 22
29 30 31 26 27 28 29 25 26 27 28 29 30 31 26 27 28 29 30 31 23 24 25 26 27 28 23 24 25 26 27 28 29
S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T WT F S S M T W T F S
1 2 3 4 5 6 7 1 2 3 4 5 1 2 1 2 3 4 5 1 2 3 1 2 3 4 5 6 7
APR MAY JUN APR MAY JUN

8 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 9 6 7 8 9 10 11 12 4 5 6 7 8 9 10 8 9 10 11 12 13 14
15 16 17 18 19 20 21 13 14 15 16 17 18 19 10 11 12 13 14 15 16 13 14 15 16 17 18 19 11 12 13 14 15 16 17 15 16 17 18 19 20 21
22 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 23 20 21 22 23 24 25 26 18 19 20 21 22 23 24 22 23 24 25 26 27 28
29 30 27 28 29 30 31 24 25 26 27 28 29 30 27 28 29 30 25 26 27 28 29 30 31 29 30
1 2 3 4 5 6 7 1 2 3 4 30 1 1 2 3 4 5 31 1 2 1 2 3 4 5 6
JUL AUG SEP JUL AUG SEP

8 9 10 11 12 13 14 5 6 7 8 9 10 11 2 3 4 5 6 7 8 6 7 8 9 10 11 12 3 4 5 6 7 8 9 7 8 9 10 11 12 13
15 16 17 18 19 20 21 12 13 14 15 16 17 18 9 10 11 12 13 14 15 13 14 15 16 17 18 19 10 11 12 13 14 15 16 14 15 16 17 18 19 20
22 23 24 25 26 27 28 19 20 21 22 23 24 25 16 17 18 19 20 21 22 20 21 22 23 24 25 26 17 18 19 20 21 22 23 21 22 23 24 25 26 27
29 30 31 26 27 28 29 30 31 23 24 25 26 27 28 29 27 28 29 30 31 24 25 26 27 28 29 30 28 29 30
2014
1 2 3 4 5 6 1 2 3 30 31 1 1 2 3 4 30 1 1 2 3 4 5 6
OCT NOV DEC OCT NOV DEC

7 8 9 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8 5 6 7 8 9 10 11 2 3 4 5 6 7 8 7 8 9 10 11 12 13
14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15 12 13 14 15 16 17 18 9 10 11 12 13 14 15 14 15 16 17 18 19 20
21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22 19 20 21 22 23 24 25 16 17 18 19 20 21 22 21 22 23 24 25 26 27
28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29 26 27 28 29 30 31 23 24 25 26 27 28 29 28 29 30 31
10 11
2
CONSTRUCTION COST DATA
Construction Market 2012 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. VIETNAM OVERVIEW
CONSTRUCTION MARKET 2012 OUTLOOK
2011 has been a year of economic cooling down and this Owing to the above factors we suspect that 2012
is reflected in the fact that GDP growth in 2011 was circa construction output growth will be similar or slightly lower
6.3% compared with 6.8% in 2010. It is most likely that than 2011.
construction output will grow at a slower rate in 2011 Notwithstanding the current economic climate there is
than in 2010. Over the past 12 months there have been still growth (albeit slower growth) in the construction
a range of fiscal constraints imposed upon the Vietnam sector and there are some very notable projects
Economy in order to reduce economic overheating. The commencing construction including:
resultant effects of such overheating over the past Saigon Center Phase 2 & 3 in district 1
couple of years have been significant balance of Ho Chi Minh City.
payment deficits and very high inflation. In order to cool Vietsin Commercial Development in district 1
down the economy the central banks have been raising Ho Chi Minh City.
interest rates and reduced funding into the property Ben Thanh Towers in district 1
market. Such actions have reduced money in the Ho Chi Minh City.
property market and hence reduced demand and we VietinBank HQ in Hanoi
observe that these measure do seem to be having a UNDP HQ in Hanoi.
positive effect on the overall Vietnam balance sheet, past The industrial construction sector is also growing
monthly trade deficits are now becoming trade surpluses significantly and as is supported by focused lending in
and inflation is starting to drop. We suspect the current order to reduce Vietnam trade deficits. The industrial
fiscal measure of high interest rates and reduced funding sector seems to be attracting FDI and there are a number
into the construction / property sectors will continue until industrial companies looking to establish operations in
mid 2012. Vietnam.
Although construction growth in 2011 have been at a
Foreign Direct Investment commitments remains lower slower rate than previous years we note that construction
than in 2008 / 9 and furthermore the level FDI disbursement prices have generally risen in 2011 and this is largely due
from previously committed projects has now reduced. We to price rises in local materials namely; steel, cement and
further suspect Overseas Development Aid disbursement aggregates.
and Public Sector investment to remain consistent with
2010 levels.
14 15
16
Annual Foreign Investment (1998-2011)
80.00 1800
70.00 1600
1400
60.00
Billions US$
1200
Nos. of projects
50.00
1000
40.00
800
30.00
600
(Source: Vietnam Investment Review)

20.00
400
10.00 200
0.00 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*
Registered Capital (bn US$) 5.10 2.57 2.84 3.14 3.00 3.19 4.55 6.84 12.00 21.30 71.73 22.63 18.60 12.70
Legal Capital (bn US$) 2.47 0.98 1.31 1.71 1.27 1.14 1.22 1.97 4.67 6.04 11.50 10.00 11.00 10.05
No. of Projects 285 327 391 555 808 791 811 970 987 1544 1557 1155 969 919
1. CONSTRUCTION COST DATA
Note: 2011 from Jan to Nov
FDI by countries as of Nov 2011

25.00 3500
3000
Billion US$
20.00
Nos. of Projects
2500
15.00
2000
1500
(Source: Vietnam Investment Review)

10.00
1000
5.00
500
0.00 Taiwan Malaysia Japan S. Korea Singapore B.V.Islands Hong Kong Thailand Canada Brunei
0
Registered Capital 23.43 9.36 23.28 23.65 23.38 14.94 10.97 5.75 4.66 4.80
17
Legal Capital 9.97 3.77 6.63 8.13 9.71 4.75 3.61 2.58 1.00 0.99
No. of Projects 2,203.00 393.00 1,636.00 3,072.00 973.00 497.00 654.00 266.00 114.00 122.00
FDI by Sectors November 2011 Vietnam Annual ODA
23%
2011
7.40
3.65
73%
2010
7.90
3.51
4%
2009
8.06
4.10
2008
5.43
2.20
Industry and construction Agriculture & Forestry & Aquaculture Service
2007
2.17
1.75
Registered Legal Registered
No. of
Sector Capital Capital (bn Capital
projects
2006
3.10
1.89
(mn US$) US$) (%)
1 Industry and construction 9,932 164,219.72 55,174.15 81.8%
2005
3.48
1.94
Manufacturing 7,938 92,081.11 34,223.59
Property 370 46,620.61 11,396.71
Construction 815 12,438.91 3,929.68
2004
2.27
1.83
Mining 69 2,974.77 2,370.11
Electricity , gas and w ater
2003
68 7,396.15 1,660.97
2.48
1.87
production and distribution
Wholesale & Retail 646 1,998.79 1,033.00
2002
2.10
1.33
Water supply & Waste 26 709.38 560.09
Agriculture & Forestry &
2 492 3,185.07 1,538.66 2.3%
2001
Aquaculture
2.06
1.28
3 Service 3,072 28,499.06 10,697.28 15.9%
Hotel & Restaurant 313 11,808.80 3,214.28
2000
2.40
1.65
IT 698 5,242.89 3,109.61
Art & Entertainment 128 3,635.91 1,102.25
1999
2.21
1.35
Logistics 314 3,249.77 1,009.12

Finance, Banking & Insurance 75 1,321.55 1,171.79
1998
2.20
ODA Disbursement 1.24
Health care 73 1,015.50 220.85

Note: 2011 from Jan to Nov
Science & Technology 1,104 969.16 496.65

billion US$
Education and Training 150 354.56 123.53

9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
ODA Commitment
Supporting serv ices 104 187.69 96.30

Others 113 713.23 152.90
Total 13,496 195,903.85 67,410.09 100%
(Source: Vietnam Investment Review) (Source: Ministry of Planning and Investment)
18 19
Vietnam Construction Output Table
Real
Construction
Proportion Construction
Year Output
of GDP (%) Output
(US$ billion)
Growth (%)
2000 1.63 5.35 7.51
2001 1.94 5.8 12.78
2002 2.07 5.89 10.57
2003 2.39 6.05 10.59
2004 2.82 6.23 9.03
2005 3.35 6.35 10.87
2006 4.09 6.62 11.05
2007 4.94 6.96 12.01
2008 6.23 6.61 0.02
2009 6.19 6.65 11.36
2010 7.13 7.03 11.06
2011 - 9mths 4.84 5.94 4.91
(Collective data from General Statistics Office)
20 21
MAJOR RATES FOR SELECTED ASIAN CITIES
DESCRIPTION HO CHI MINH ^ KUALA LUMPUR

Unit
(rates are at 4th Quarter of 2011)
VND RM
1. Excavating basement not exceeding 2m deep m3 69,000 15.00 - 20.00

2. Excavating for footings not exceeding 1.5m deep m3 64,000 15.00 - 20.00
3. Remove excavated materials off site m 3 66,000 20.00 - 25.00
4. Hardcore bed blinded with fine materials m3 306,000 60.00 - 70.00
5. Mass concrete grade 15 m 3 1,352,000 230.00 - 250.00
6. Reinforced concrete grade 30 m3 1,730,000 250.00 - 280.00
7. Mild steel rod reinforcement kg 23,300 3.50 - 3.80
8. High tensile rod reinforcement kg 22,200 3.50 - 3.80
9. Sawn formwork to soffits of suspended slabs m 2 181,000 30.00 - 38.00
10. Sawn formwork to columns and walls m2 223,000 30.00 - 38.00
11. 112.5mm thick brick walls m 2 165,000 32.00 - 45.00
12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m2 516,000 55.00 - 60.00
13. Aluminium casement windows, single glazed m 2 2,545,000 350.00 - 500.00
14. Structural steelwork -beams, stanchions and the like kg 33,500 6.00 - 7.50
15. Steelwork -angles, channels, flats and the like kg 38,500 6.00 - 7.50
16. 25mm Cement and sand (1:3) paving m2 46,000 15.00 - 22.00
17. 20mm Cement and sand (1:4) plaster to walls m 2 66,350 15.00 - 22.00
18. Ceramic tiles bedded to floor screed (m/s) m2 245,000 50.00 - 70.00
19. 12mm fibrous plasterboard ceiling lining m 2 300,000 30.00 - 45.00
20. Two coats of emulsion paint to plastered surfaces m2 62,300 3.50 - 4.00
Average expected preliminaries % 8 - 12 6 - 12
Note
The above costs are based on lump sum fixed price contract rates
^
exclusive of preliminaries and contingencies unless otherwise stated Rates are nett of VAT
22 23
DESCRIPTION BANGKOK# JAKARTA# MANILA

Unit
BAHT RP'000 PHP
1. Excavating basement not exceeding 2m deep m3 100.00 23.00 350.00

2. Excavating for footings not exceeding 1.5m deep m 3 100.00 30.00 250.00
3. Remove excavated materials off site m3 100.00 25.00 200.00
4. Hardcore bed blinded with fine materials m 3 600.00 270.00 2,500.00
5. Mass concrete grade 15 m3 2,000.00 710.00 3,500.00
6. Reinforced concrete grade 30 m 3 2,400.00 850.00 4,800.00
7. Mild steel rod reinforcement kg 31.00 10.00 47.00
8. High tensile rod reinforcement kg 30.00 10.00 48.00
9. Sawn formwork to soffits of suspended slabs m2 350.00 120.00 850.00
10. Sawn formwork to columns and walls m 2 350.00 120.00 800.00
11. 112.5mm thick brick walls m2 700.00 120.00 N/A
12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m 2 1,200.00 175.00 900.00
@
13. Aluminium casement windows, single glazed m2 6,000.00 880.00 9,000.00
14. Structural steelwork -beams, stanchions and the like kg 55.00 18.00 100.00
15. Steelwork -angles, channels, flats and the like kg 55.00 18.00 95.00
16. 25mm Cement and sand (1:3) paving m 2 200.00 44.00 350.00
17. 20mm Cement and sand (1:4) plaster to walls m2 200.00 50.00 350.00
18. Ceramic tiles bedded to floor screed (m/s) m 2 1,200.00 110.00 1,200.00
19. 12mm fibrous plasterboard ceiling lining m2 800.00 100.00* 1,300.00
20. Two coats of emulsion paint to plastered surfaces m 2 100.00 18.00 350.00
Average expected preliminaries % 10 - 15 5 - 10 8 - 15

#
Note Rates are nett of VAT
The above costs are based on lump sum fixed price contract rates * Rates are for 9mm gypsum board
@
exclusive of preliminaries and contingencies unless otherwise stated Aluminium with anodized finish; 6mm thick
24 25
DESCRIPTION
BRUNEI SINGAPORE**
Unit
B$ S$
1. Excavating basement not exceeding 2m deep m3 3.50 16.50

2. Excavating for footings not exceeding 1.5m deep m 3 3.00 16.50
3. Remove excavated materials off site m3 3.00 15.00
4. Hardcore bed blinded with fine materials m 3 37.00 50.00
5. Mass concrete grade 15 m3 117.00 202.00***
6. Reinforced concrete grade 30 m 3 132.00 155.00-170.00
7. Mild steel rod reinforcement kg 0.98 1.60-1.75
8. High tensile rod reinforcement kg 0.98 1.60-1.75
9. Sawn formwork to soffits of suspended slabs m2 14.50 30.00-33.00
10. Sawn formwork to columns and walls m 2 14.00 30.00-33.00
11. 112.5mm thick brick walls m2 18.50 30.00-35.00
12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m 2 56.00 43.00

13. Aluminium casement windows, single glazed m2 166 - 216 290.00
14. Structural steelwork -beams, stanchions and the like kg 3.00 4.80-5.80
15. Steelwork -angles, channels, flats and the like kg 2.70 4.80-5.80
16. 25mm Cement and sand (1:3) paving m 2 7.50 11.00
17. 20mm Cement and sand (1:4) plaster to walls m2 8.00 15.50
18. Ceramic tiles bedded to floor screed (m/s) m 2 23.00 65.50
19. 12mm fibrous plasterboard ceiling lining m2 28.00 30.00
20. Two coats of emulsion paint to plastered surfaces m 2 5.00 3.50-4.00
Average expected preliminaries % 5-8 12 - 15
Note
** Rates are nett of GST
exclusive of preliminaries and contingencies unless otherwise stated
*** Rate for lean concrete blinding
26 27
HONG KONG BEIJING SHANGHAI

DESCRIPTION Unit
HK$ RMB RMB

3. Remove excavated materials off site m3 190.00" 25.00 105.00
4. Hardcore bed blinded with fine materials m 3 650.00 120.00 168.00
5. Mass concrete grade 15 m3 900.00 500.00 400.00
6. Reinforced concrete grade 30 m 3 1,130.00 560.00 470.00
11. 112.5mm thick brick walls m2 190.00 90.00 60.00++
12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m2 600.00 N/A N/A
#
13. Aluminium casement windows, single glazed m2 1,700.00 780.00 600.00
18. Ceramic tiles bedded to floor screed (m/s) m 2 270.00 120.00 160.00
19. 12mm fibrous plasterboard ceiling lining m2 430.00 140.00 170.00
Average expected preliminaries % 10 - 15 5 - 10 3-8
Note Rate including waste charges implemented on 01-Dec-2005

+ Rate for double glazed window
exclusive of preliminaries and contingencies unless otherwise stated ## Rate for 120mm thick concrete block walls
28 29
SHENZHEN/
DESCRIPTION GUANG-ZHOU
MACAU INDIA@
Unit
RMB MOP Rs

3. Remove excavated materials off site m3 68.00 60.00 100.00
4. Hardcore bed blinded with fine materials m 3 155.00 580.00 3060.00
5. Mass concrete grade 15 m3 380.00 680.00 4200.00
6. Reinforced concrete grade 30 m 3 465.00 730.00 5125.00
11. 112.5mm thick brick walls m2 58.00 250.00 700.00
12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m 2 N/A N/A 960.00
13. Aluminium casement windows, single glazed m2 550.00 2,000.00 3700.00
18. Ceramic tiles bedded to floor screed (m/s) m 2 115.00 400.00 1100.00
19. 12mm fibrous plasterboard ceiling lining m2 157.00 460.00 850.00
Note @
Rates are based on projects in Bangalore
The above costs are based on lump sum fixed price contract rates and are nett of VAT and Service Tax.
exclusive of preliminaries and contingencies unless otherwise stated Mumbai costs are generally 8% higher.
30 31
CHONGQING CHENGDU
DESCRIPTION Unit
RMB RMB
1. Excavating basement not exceeding 2m deep m3 16.00 20.00

2. Excavating for footings not exceeding 1.5m deep m 3 18.00 25.00
3. Remove excavated materials off site m3 43.00 35.00
4. Hardcore bed blinded with fine materials m 3 120.00 130.00
5. Mass concrete grade 15 m3 380.00 380.00
6. Reinforced concrete grade 30 m 3 420.00 420.00
7. Mild steel rod reinforcement kg 6.30 6.30
8. High tensile rod reinforcement kg 6.30 6.30
9. Sawn formwork to soffits of suspended slabs m2 55.00 55.00
10. Sawn formwork to columns and walls m2 55.00 55.00
11. 112.5mm thick brick walls m2 47.00 50.00
12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m 2 N/A N/A

13. Aluminium casement windows, single glazed m2 750+ 750+
14. Structural steelwork -beams, stanchions and the like kg 12.00 12.00
15. Steelwork -angles, channels, flats and the like kg 10.00 10.00
16. 25mm Cement and sand (1:3) paving m 2 22.00 25.00
17. 20mm Cement and sand (1:4) plaster to walls m2 17.00 20.00
18. Ceramic tiles bedded to floor screed (m/s) m 2 120.00 120.00
19. 12mm fibrous plasterboard ceiling lining m2 130.00 130.00
20. Two coats of emulsion paint to plastered surfaces m 2 30.00 30.00
Average expected preliminaries % 5 - 10 5 - 10
Note
+ Rate for double glazed window
exclusive of preliminaries and contingencies unless otherwise stated
32 33
DESCRIPTION
SEOUL* TOKYO KARACHI
Unit
KRW JPY Rs
1. Excavating basement not exceeding 2m deep m3 2,100 890 385 - 635

2. Excavating for footings not exceeding 1.5m deep m 3 2,100 940 320 - 495
3. Remove excavated materials off site m3 12,000 3,140 180 - 280
4. Hardcore bed blinded with fine materials m 3 26,500 8,100 1170 - 1413
5. Mass concrete grade 15 m3 57,000 11,200 5000 - 5500
6. Reinforced concrete grade 30 m 3 72,000 13,200 7500 - 8500
7. Mild steel rod reinforcement kg 1,070 68 80 - 110
8. High tensile rod reinforcement kg 1,080 83 77 - 115
9. Sawn formwork to soffits of suspended slabs m2 23,000 3,400 485 - 625
10. Sawn formwork to columns and walls m 2 23,000 3,400 550 - 790
11. 112.5mm thick brick walls m2 40,000 13,100 990 - 1060
12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m 2 35,000 2,200 3765 - 4845
13. Aluminium casement windows, single glazed m2 249,900 23,000 5000 - 7500
14. Structural steelwork -beams, stanchions and the like kg 2,400 210 135 - 160
15. Steelwork -angles, channels, flats and the like kg 1,900 320 135 - 160
16. 25mm Cement and sand (1:3) paving m 2 2,500 2,600 425 - 590
17. 20mm Cement and sand (1:4) plaster to walls m2 8,300 3,000 375 - 580
18. Ceramic tiles bedded to floor screed (m/s) m 2 55,000 6,100 1300 - 1500
19. 12mm fibrous plasterboard ceiling lining m2 24,000 N/A 850 - 1250
20. Two coats of emulsion paint to plastered surfaces m 2 7,100 900 270 - 375#
Note
The above costs are based on lump sum fixed price contract rates * Rates include labour costs and are nett of VAT
#
exclusive of preliminaries and contingencies unless otherwise stated Including filling materials
34 35
CONSTRUCTION COSTS FOR SELECTED ASIAN CITIES
(US$/m2)
DESCRIPTION
(rates are at 4th Quarter of 2011) HO CHI MINH^ KARACHI BANGKOK##
DOMESTIC
Detached houses and bungalows 500 - 600 985 - 1150 967
Terraced houses 425 - 485 250 - 350 583
Average standard apartments, high rise 635 - 760 580 - 775 828
Luxury apartments, high rise 815 - 945 870 - 1150 1,162
OFFICE/COMMERCIAL
Average standard offices, high rise 760 - 880 575 - 725 750
Prestige offices, high rise 890 - 1130 950 - 1150 983
Shopping Centres 695 - 815 695 - 900 800
INDUSTRIAL
Light duty flatted factories 238 - 390 300 - 375 600
Heavy duty flatted factories and warehouses 395 - 510 350 - 450 N/A
Single storey conventional factory of structural
steelwork 385 - 510 435 - 450 600
Owner operated factories, low rise 395 - 495 325 - 425 N/A
HOTELS
Resort Hotels 1195 - 1500 1965 - 2350 2,267
3-star budget hotels inclusive of F. F. & E. 1495 - 1750 1125 - 1450 1,367
5-star luxury hotels, ditto 1825 - 2060 1800 - 2100 1,933
OTHERS
Basement carparks (<3 levels) 640 - 730 275 - 325 683
Elevated carparks (<4 levels) 340 - 455 200 - 250 350
Primary and Secondary Schools 475 - 500 550 - 675 N/A
Student hostels 500 - 630 410 - 540 N/A
Sports Clubs inclusive of F. F. & E. 755 - 840 810 - 900 N/A
VND PKR Baht

Exchange Rate Used: US$1 =
21,011 89.42 30.00
The above costs are inclusive of preliminaries and ##

, ^ Rates are nett of VAT & contingencies
contingencies unless otherwise stated.
36 37
(US$/m2)
DESCRIPTION
(rates are at 4th Quarter of 2011) BRUNEI JAKARTA# MANILA*
DOMESTIC
Detached houses and bungalows 751 475 1,210
Terraced houses 525 N/A 620
Average standard apartments, high rise 871 595 845
Luxury apartments, high rise 1,071 800 1,070
OFFICE/COMMERCIAL
Average standard offices, high rise 871 575 820
Prestige offices, high rise 1,192 860 1,080
Shopping Centres 1,097 495 960
INDUSTRIAL
Light duty flatted factories 483 N/A 430
Heavy duty flatted factories and warehouses N/A N/A 475
steelwork 441 260 410
Owner operated factories, low rise N/A N/A 440
HOTELS
Resort Hotels 1,438 1,200 1,290
3-star budget hotels inclusive of F. F. & E. 1,559 980 1,230
5-star luxury hotels, ditto 2,163 1,395 1,600
OTHERS
Basement carparks (<3 levels) N/A 390 480
Elevated carparks (<4 levels) 494 260 465
Primary and Secondary Schools 693 N/A 590
Student hostels 793 N/A 695
Sports Clubs inclusive of F. F. & E. N/A N/A 1,260
B$ IDR PHP
1.26 8.910 43
#
The above costs are inclusive of preliminaries and Rates are nett of VAT
contingencies unless otherwise stated. *
Rates are exclusive of contingencies & include 12% VAT
38 39
(US$/m2)
DESCRIPTION
(rates are at 4th Quarter of 2011) SINGAPORE** HONG KONG* MACAU^
DOMESTIC
Detached houses and bungalows 2,400 3,838 3,455
Terraced houses 2,040 2,863 3,015
Average standard apartments, high rise 1,680 2,217 1,545
Luxury apartments, high rise 2,760 2,453 2,230
OFFICE/COMMERCIAL
Average standard offices, high rise 2,080 2,251 2,200
Prestige offices, high rise 2,320 2,733 2,520
Shopping Centres 2,240 2,545 2,710
INDUSTRIAL
Light duty flatted factories 1,120 1,184 1,245
Heavy duty flatted factories and warehouses 1,360 1,334 N/A
steelwork 960 N/A N/A
Owner operated factories, low rise N/A 1,805 N/A
HOTELS
Resort Hotels 2,480 N/A N/A
3-star budget hotels inclusive of F. F. & E. 2,560 2,713 2,560
OTHERS
Basement carparks (<3 levels) 1,310 1,900 1,230
Elevated carparks (<4 levels) 760 1,028 910
Primary and Secondary Schools 1,055 1,497 N/A
Student hostels 1,160 1,663 N/A
Sports Clubs inclusive of F. F. & E. 1,770 2,852 N/A
S$ HK MOP
1.25 7.80 7.97
** Rates are nett of GST and exclusive of contingencies
The above costs are inclusive of preliminaries and * Rates are exclusive of contingencies
contingencies unless otherwise stated. ^ Rates are exclusive of contingencies and
any management contract fee
40 41
(US$/m2)
DESCRIPTION
(rates are at 4th Quarter of 2011) SHENZHEN/
BEIJING* SHANG-HAI*
GUANG-ZHOU*
DOMESTIC
Detached houses and bungalows 776 1,096 622
Terraced houses 528 822 439
Average standard apartments, high rise 560 658 525
Luxury apartments, high rise 993 987 605
OFFICE/COMMERCIAL
Average standard offices, high rise 947 987 760
Prestige offices, high rise 1,269 1,316 1,044
Shopping Centres 1,090 1,206 983
INDUSTRIAL
Light duty flatted factories N/A N/A N/A
Heavy duty flatted factories and warehouses N/A N/A N/A
steelwork 586 548 520
Owner operated factories, low rise 765 735 648
HOTELS
Resort Hotels N/A 1,370 N/A
3-star budget hotels inclusive of F. F. & E. 1,116 1,096 N/A
OTHERS
Basement carparks (<3 levels) 780 830 759
Elevated carparks (<4 levels) 456 398 353
Primary and Secondary Schools 632 598 415
Student hostels 335 343 266
Sports Clubs inclusive of F. F. & E. 970 1,051 798
RMB RMB RMB

6.35 6.35 6.35
42 43
(US$/m2)
DESCRIPTION
(rates are at 4th Quarter of 2011) CHONGQING CHENGDU
DOMESTIC
Detached houses and bungalows 760 780
Terraced houses 480 500
Average standard apartments, high rise 440 470
Luxury apartments, high rise 800 1,000
OFFICE/COMMERCIAL
Average standard offices, high rise 860 940
Prestige offices, high rise 1,100 1,250
Shopping Centres 900 950
INDUSTRIAL
Light duty flatted factories N/A N/A
Heavy duty flatted factories and warehouses N/A N/A
steelwork 550 550
Owner operated factories, low rise N/A N/A
HOTELS
Resort Hotels N/A N/A
3-star budget hotels inclusive of F. F. & E. 1,050 1,100
5-star luxury hotels, ditto 1,880 2,150
OTHERS
Basement carparks (<3 levels) 700 700
Elevated carparks (<4 levels) 390 390
Primary and Secondary Schools 480 500
Student hostels 330 330
Sports Clubs inclusive of F. F. & E. 900 990
RMB RMB
6.35 6.35
44 45
(US$/m2)
DESCRIPTION
(rates are at 4th Quarter of 2011) KUALA
INDIA@ SEOUL** TOKYO
LUMPUR
DOMESTIC
Detached houses and bungalows 409 1,930 2,760 962
Terraced houses 300 1,605 N/A 317
Average standard apartments, high rise 347 1,310 2,230 463
Luxury apartments, high rise 439 1,630 3,100 1,070
OFFICE/COMMERCIAL
Average standard offices, high rise 406 1,170 2,680 752
Prestige offices, high rise 514 1,330 3,200 1,105
Shopping Centres 470 1,480 2,190 917
INDUSTRIAL
Light duty flatted factories 263 N/A 1,540 438
Heavy duty flatted factories and warehouses 313 N/A 2,040 521
steelwork 252 690 1,760 435
Owner operated factories, low rise 317 N/A N/A 530
HOTELS
Resort Hotels 723 1,535 3,510 1,333
3-star budget hotels inclusive of F. F. & E. 817 1,730 3,480 1,537
5-star luxury hotels, ditto 1588 2,300 5,100 2,241
OTHERS
Basement carparks (<3 levels) 254 965 N/A 505
Elevated carparks (<4 levels) 222 565 1,690 286
Primary and Secondary Schools 178 1,820 2,070 327
Student hostels 228 1,080 1,890 413
Sports Clubs inclusive of F. F. & E. 605 1,460 2,280 854
Exchange Rate Used: US$1 = INR KRW JPY RM

50.00 1,144 78.14 3.15
@ Rates are based on projects in Bangalore and are nett of
The above costs are inclusive of preliminaries and VAT and Service Tax. Mumbai costs are generally 8%
contingencies unless otherwise stated. higher
** Rates are nett of VAT and exclusive of contingencies
46 47
M&E COSTS FOR SELECTED ASIAN CITIES
##
HO CHI MINH KUALA LUMPUR KARACHI BANGKOK
DESCRIPTION
VND/m2 RM/m2 Rs/m2 BAHT/m2
MECHANICAL SERVICES
Offices 1,590,000 -2,267,000 350-455 3750 - 8500 3900-4800
Industrial* N/A 60-90 1085 - 1890 1250-1400
Hotels N/A 280-450 7600 - 9950 4500-5100
Shopping Centres N/A 280-410 7600 - 9950 4400-4800
Apartment 1,198,000 - 1,729,000 200-283 2600 - 3500 4400-4500
ELECTRICAL SERVICES
Offices 1,962,000 - 2,337,000 220-465 4425 - 5413 2250-2500
Industrial** N/A 140-157 2431 - 3392 1650-1700
Hotels N/A 240-590 5850 - 9925 2750-3200
Apartment 1,740,000- 2,197,000 85-210 2000 - 3270 2390-2950
HYDRAULIC SERVICES
Offices 263,000 - 502,000 23-52 765 - 1205 750-890
Industrial N/A 36-45 630 - 835 700-780
Hotels N/A 175-235 3200 - 4845 1350-1490

Apartment 514,000 - 1,171,000 18-45 1360 - 1970 1150-1350
FIRE SERVICES
Offices 614,000- 1,019,000 57-80 1285 - 1675 760-850
Industrial N/A 45-60 1125 - 2025 720-750
Hotels N/A 65-90 1285 - 2650 750-850
Apartment 420,000- 528,000 20-25 850 - 1350 760-850
LIFTS/ESCALATORS
Offices 563,000 - 1.079,000 88-400 1745 - 3100 1000-1050
Industrial N/A 54-190 1745 - 3100 N/A
Hotels N/A 85-370 3500 - 8100 1000-1100
Shopping Centres 1,161,000 - 1,642,000 85-110 1745 - 3100 210-490
Apartment 633,000 - 920,000 63-105 1745 - 3100 450-500
th
The above costs are at 4 Quarter 2011 levels, exclusive of
contingencies unless otherwise stated
##
Rates are based on nett enclosed area and nett of VAT
* Generally without A/C
** Excludes special power supply
48 49
SEOUL@ BRUNEI MANILA^ SINGAPORE***

DESCRIPTION
KRW/m2 B$/m2 PESOS/m2 S$/m2
MECHANICAL SERVICES
Offices 200,000-280,000 133 - 166 3000-4300 153-228
Industrial* 87,000-150,000 17 - 29 650-1300 29-136
Hotels 205,000-330,000 214 - 247 3000-6000 150-289
Shopping Centres 144,000-240,000 152 - 181 2500-3700 158-214
Apartment 92,000-169,000 157 - 181 1900-3000 95-192
ELECTRICAL SERVICES
Offices 250,000-365,000 171 - 214 3300-6000 203-306
Industrial** 115,000-150,000 143 - 171 2000-3500 58-148
Hotels 350,000-460,000 214 - 280 4400-8400 202-340
Apartment 130,000-165,000 185 - 233 3200-4800 109-252
HYDRAULIC SERVICES
Offices 32,000-55,000 12 - 29 900-2000 31-71
Industrial 20,000-30,000 8 - 14 700-1200 19-39
Hotels 57,000-89,000 45 - 62 1750-3800 97-136

Apartment 49,000-65,000 28 - 44 1300-2600 75-159
FIRE SERVICES
Offices 40,000-65,000 24 - 29 600-1200 32-64
Industrial 27,000-30,000 9 - 14 600-900 24-54
Hotels 56,000-87,000 19 - 36 600-1100 49-78
Apartment 32,000-65,000 19 - 38 600-1300 19-53
LIFTS/ESCALATORS
Offices 45,000-60,000 7 - 24 1600-2900 62-177
Industrial 16,000-25,000 3 - 14 N/A 46-114
Hotels 110,000-155,000 9 - 33 1500-3000 76-138
Apartment 27,000-38,000 8 - 19 800-1500 27-123
th
The above costs are at 4 Quarter 2011 levels, exclusive of
contingencies unless otherwise stated ^ Transformer, included in Electrical Services
Generally without A/C
** Excludes special power supply *** Rates are nett of GST
@
Rates are nett of VAT
50 51
1,600-2,350 750-990 761-966 650-880

380-500 160-270 173-289 135-240
1,750-2,150 910-1110 971-1265 890-1,115
1,950-2,400 790-950 1050-1103 660-890
650-1,300 130-370 310-410 105-325
1,300-1,950 460-670 593-651 450-650

450-850 320-450 305-431 260-400
1,500-2,150 705-898 651-830 565-765
1,400-1,950 481-663 520-651 450-610
850-1,300 253-386 252-368 240-380
270-380 95-140 110-163 105-140

220-330 95-140 89-131 75-102
800-1,050 360-470 368-488 325-410

270-380 140-200 137-184 105-140
550-850 165-225 168-226 125-220
430-550 180-265 226-320 190-295

250-300 140-215 168-278 125-240
430-550 215-370 289-399 230-345
430-550 215-370 268-383 230-345
75-120 60-125 47-116 55-105
550-900 294-577 275-540 250-410

450-600 145-400 130-380 135-390
450-650 232-520 215-485 200-390
650-850 327-520 320-485 305-430
330-650 175-289 160-320 105-230
The above costs are at 4th Quarter 2011 levels, exclusive of
contingencies unless otherwise stated
52 53
CHONGQING CHENGDU MACAU JAKARTA# TOKYO** INDIA+

DESCRIPTION
RMB/m2 RMB/m2 MOP/m2 RP'000/m2 YEN/m2 INR/m2
MECHANICAL SERVICES
Offices 700-900 700-1000 N/A 625-735 21,000 3600-4700
Industrial* 150-250 150-250 N/A 195-455 11,200 1600-2800
Hotels 750-1000 750-1200 1850-2150 625-840 14,800 4500-4850
Shopping Centres 600-850 600-1000 1600-2150 570-680 7,100 3500-4500
Apartment 100-300 100-300 550-650 570-730 3,000 2000-2500
ELECTRICAL SERVICES
Offices 450-650 450-700 N/A 510-680 19,600 2800-4000
Industrial** 300-400 300-400 N/A 280-450 10,400 1800-3100
Hotels 550-700 550-800 1900-2300 510-730 18,800 3200-4900
Apartment 250-350 250-350 650-850 510-680 12,200 1200-1600
HYDRAULIC SERVICES
Offices 70-130 70-130 N/A 120-190 12,600 575-850
Industrial 70-120 70-120 N/A 71-130 5,700 375-650
Hotels 300-400 300-400 850-1050 510-740 16,600 3000-4500

Apartment 120-200 120-200 550-750 510-730 18,300 1300-1800
FIRE SERVICES
Offices 180-250 180-250 N/A 160-250 included in above^ 900-1200
Industrial 150-250 150-250 N/A 70-130 included in above^ 400-550
Hotels 200-330 200-330 500-600 150-250 included in above^ 1000-1300
Shopping Centres 220-330 220-330 400-500 160-210 included in above^ 850-950
Apartment 50-100 50-100 100-150 160-210 included in above^ 450-550
LIFTS/ESCALATORS
Offices 350-550 350-600 N/A 270-740 5,600 650-900
Industrial 150-350 150-350 N/A N/A 2,500 400-550
Hotels 300-450 300-500 500-700 270-680 5,100 800-1000
Apartment 140-250 140-250 400-500 260-540 2,700 500-700
The above costs are at 4th Quarter 2011 levels, exclusive of contingencies unless otherwise ** All costs are average
stated ^ Spinker system, fire hose reel are included in Hydraulic Services.
* Generally without A/C
Smoke spill exhaust system is included in Mechanical Services. Fire
** Excludes special power supply
#
Rates are nett of VAT. Rates for Electrical Services are excluding genset. Rates for alarm system, emergency PA system are included in Electrical Services.
+ Rates are based on projects in Bangalore and are nett of VAT and
Hydraulic Services are excluding Sewerage Treatment Plant. Rates for Mechanical
Services refers to ACMV rates only Service Tax. Mumbai costs are generally 8% higher.
54 55
56
ELECTRICITY WATER FUEL
Exchange
Rate Used Commercial/ Commercial/
COUNTRY Domestic Domestic Diesel Leaded Unleaded
Industrial Industrial
US$1= US$/kwh US$/kwh US$/m3 US$/m3 US$/litre US$/litre US$/litre

+ ++ +++ +++++
HO CHI MINH VND 21,000 0.091 0.082 - 0.141/0.051 - 0.092 0.21 - 0.50 0.65/0.35 0.995 N/A 084 - 0.87++++++
KUALA LUMPUR RM 3.15 0.069 - 0.144 0.110 - 0.137 0.181 - 0.635 0.657 - 0.724 0.57 N/A 0.6
(Costs are at 4th Quarter 2011)

KARACHI Rs.89.42 0.078 - 0.16 0.16 - 0.23 0.175 - 0.319 0.292 - 0.529 1105* NA 0.983 #
BANGKOK Baht : 30.00 0.044 - 0.096 0.054 0.056 0.274 0.466 0.306 0.510 0.951 N/A 1.074*
BANGALORE INR50 0.078 - 0.196 0.112 - 0.352 3.083 - 5.507 4.142 - 6.829 0.921 N/A 1.457
BRUNEI B$1.26 0.008 - 0.12 0.057 - 0.159 0.087 - 0.349 0.484 - 0.524 0.302 0.404 0.421
UTILITY COSTS FOR SELECTED ASIAN CITIES
BEIJING RMB6.35 0.07 0.13 0.63 0.98 1.08 N/A 1.13***
GUANG-ZHOU RMB6.35 0.09 0.17/0.14 0.2 0.43/0.29 0.84 N/A 1.04
HONG KONG HK$ 7.80 0.1 0.11 0.83 0.59 1.52 N/A 2.05
MACAU MOP 7.97 0.11 0.12 0.54 0.66 ooo 1.48 N/A 1.99
0.097(peak) 0.16(peak)
SHANGHAI RMB6.35 0.46 0.6 1.17 N/A 1.19-1.26
0.048(normal) 0.077(normal)
SHENZHEN RMB6.35 0.1066 0.048-0.183# 0.361-0.721## 0.525 ## 1.177 N/A 1.089-1.271###

JAKARTA IDR 8910 0.089 0.102 0.250 0.475 0.475 N/A 0.505
MANILA PHP43.00 **0.20-0.27' **0.21' **0.56-0.65' **1.32' 1.095 N/A** 1.243
NEW DELHI INR50 0.098 - 0.167 0.123 - 0.229 3.304 - 5.288 4.865 - 7.932 0.82 N/A 1.328
SEOUL KRW 1146 0.155* 0.0879* 0.311** 1.475** 1.61 N/A 1.73
SINGAPORE * S$1.25 0.22^ 0.22^ 1.44^^ 1.67^^^ 1.27^^^^ N/A 1.75^^^^^
TOKYO t JPY78.14 0.277 0.277 2.726** 5.170*** 1.459 N/A 1.639
57
DAVIS
Notes
LANGDON & SEAH VIETNAM CO LTD
Ho Chi Minh + All rates are VAT inclusive
58
++ Domestic electricity rates are applied to the 301 KW above wards. Electricity (Dom) : under 100kwh = US$0.048; 100-200kwh =US$ 0.083
+++ Water (used in norm = US$ 0.21; used over norm = US$0.50)
++++ Commercial = US$ 0.41; Industrial = US$0.23
+++++ D.O- 0.05%
++++++ 92&95 Unleaded petrol as at Oct 2011
Kuala Lumpur * Unleaded petrol Ron 95
Karachi * High Speed Diesel
# Premier Petrol
Bangkok * Unleaded = Gasohol 95
Beijing *** Unleaded gasoline 97
Guang-Zhou Unleaded 97#
Hong Kong SS Electricity: (Dom): 0 - 400 kWh = US$0.10; 400 - 1,000 kWh = US$0.11; 1,000 - 1,800 kWh = US$0.12; Above 1,800 kWh = US$0.13
(Based on tariff scheme of CLP Holding Limited and is charged on bi-monthly consumption)
SS1 Water: (Dom): 0 - 12 m3 = F.O.C; 12 - 43 m3 = US$0.53; 43 - 62m3 = US$0.83/m3; Above 62m3 = US$1.16/m3
Macau o Water: Consumption charge (flat rate) : US$0.54/m3; Other charges (Depending on meter size 15mm - 200mm) :
Meter rental = US$0.33 - 58.07/month; Minimum consumption fee = US$2.22 - 383/month
oo Electricity tariff are composition of demand charges, consumption charges, fuel clause adjustment and government tax
ooo Charges for ordinary users (e.g. Business, government buildings, schools, associations, hospitals and others) only. Special users (e.g. gaming industries,
hotels, saunas, golf courses, construction, public infrastructures and other temporary consumption) are excluded.
Shanghai # Unleaded 93# = US$1.19/litre; Unleaded 97# = US$1.26/litre
Shenzhen # Electricity - (Comm.): US$0.158/kWh; (Ind.) Peak = US$0.183/kwh; Normal = US$0.138/kWh; Off Peak = US$0.048/kWh
## Water (Dom): Within 22 m3 = US$0.361/m3; 23-30 m3 = US$0.541/m3; above 31m3 = US$0.721/m3; (Comm.): US$0.525/m3; (Ind.): US$0.525/m3
### Unleaded: 90#=US$1.089/litre; 93#=US$1.174/litre; 97#=US$1.271/litre
Manila ** Actual Biling: Include misc. charges such as Environmental Charge, Currency Exchange Rate adjustment (CERA), VAT, etc.
' Electricity - (Dom): 100 kWh-533Wh; (Comm/Ind): 222,600 kWh; Water - (Dom): 32 m3 - 52 m3; (Comm/Ind): 3,204 m3
Seoul * Plus electricity basic rates; domestic: US$4.757/month (500kWh below in use) and commercial: US$5.243/month (within 1,000 kW usage and
3,300-66,000 V)
Singapore * All rates are nett of GST
UTILITY COSTS FOR SELECTED ASIAN CITIES
^ Electricity tariff is based on low tension power supply
^^ Domestic water rate includes conservation tax & water-borne fee and is an average for the 1st 40m3, exclude sanitary appliance fee
^^^ Non-domestic water rate includes conservation tax and water-borne fee, exclude sanitary appliance fee
^^^^ As at 15 November 2011

^^^^^ 98 Unleaded petrol as at 15 November 2011
Notes (continued)
Tokyo t All rates are VAT inclusive

* Electricity: 0-120 kWh: US$0.217/kWh, 120kWh - 300 kWh: US$0.277/kWh, Over 300 kWh = US$0.292/kWh
Basic rate: US$3.309-10A(ampere) / US$9.927-30A / US$19.855 - 60A is added.
** Water - 30mm diameter of water piping + basic rate of US$41.64 is added
*** Water - 100mm diameter of water piping + basic rate of US$1,146.28 is added
59
GENERAL CONSTRUCTION DATA
Material Price Indices
Import Duties
Progress Payments
Estimating Rules of Thumb
62
Steelbar (D12-D25) Concrete (Grade 250) Cem ent (PCB40)
Year Quarter Index Index Index

VND/T (Base Inflation $VND/m 3 (Base Inflation VND/kg (Base Inflation
QI/2008) QI/2008) QI/2008)
I 11,200,000 100.00 0.00% 676,804 100.00 0.00% 976 100.00 0.00%
II 14,518,000 129.63 29.63% 790,476 116.80 16.80% 973 99.69 -0.31%
2008
III 17,305,000 154.51 19.20% 904,000 133.57 14.36% 1,275 130.64 31.04%
IV 12,000,000 107.14 -30.66% 850,000 125.59 -5.97% 1,273 130.43 -0.16%
I 10,940,000 97.68 -8.83% 879,819 130.00 3.51% 1,255 128.59 -1.41%
II 10,990,000 98.13 0.46% 879,819 130.00 0.00% 1,255 128.59 0.00%
2009
MATERIAL PRICE INDICES

III 11,820,000 105.54 7.55% 879,819 130.00 0.00% 1,255 128.59 0.00%
IV 12,220,000 109.11 3.38% 879,819 130.00 0.00% 1,255 128.59 0.00%
I 12,452,500 111.18 1.90% 879,819 130.00 0.00% 1,255 128.59 0.00%
II 11,590,000 103.48 -6.93% 879,819 130.00 0.00% 1,218 124.80 -2.95%
2010
III 12,830,000 114.55 10.70% 879,819 130.00 0.00% 1,209 123.87 -0.74%
IV 13,440,000 120.00 4.75% 879,819 130.00 0.00% 1,209 123.87 0.00%
I 15,030,000 134.20 11.83% 879,819 130.00 0.00% 1,241 127.15 2.65%
II 14,730,000 131.52 -2.00% 879,819 130.00 0.00% 1,263 129.41 1.77%
2011
III 15,925,000 142.19 8.11% 970,000 143.32 10.25% 1,459 149.49 15.52%
IV 15,925,000 142.19 0.00% 970,000 143.32 0.00% 1,459 149.49 0.00%
2. GENERAL CONSTRUCTION DATA
(Source: Ho Chi Minh City Departments of Construction and Departments of Finance Year 2008-2011)
160.00
150.00
140.00
130.00
120.00
110.00
100.00
90.00
80.00
I II III IV I II III IV I II III IV I II III IV
2008 2009 2010 2011
Steelbar (D12-D25) Concrete (Grade 250) Cement (PCB40)
63
IMPORT DUTIES PROGRESS PAYMENTS

Special Tariff
MFN/WTO
VAT Tariff The following graph and table are an indication of the
Non-ACFTA
Non-AKFTA
DESCRIPTION
AANZFTA
AJCEP 3
VJEPA 2
Unit
ACFTA
AKFTA
AIFTA
CEPT
(all figures
rate of expenditure for construction projects.
Marble kg 10 0 10 (1)
15 (2)
20 22 25 20 10 The rate of expenditure is an average rate and will
(1) (2)
Granite kg 10 0 10 15 20 22 25 20 10
Carpentry of Wood kg 3 0 5 - 5 - 5 4 5 4.5 10
vary from project to project when specific project
Porland cement kg 34 5 - - - - - - 30 - 10 circumstances are taken into account.
Ceramic building bricks,
35 5 - - 20 - 33 35 30 35 10
flooring blocks No account has been made for retention.
Ceramic roofing tiles 45 5 - - 20 - 41 44 30 48 10 Progress Claims
100%
Ceramic floor, hearth, wall
m2 45 5 - - 20 - 41 44 30 48 10
tiles
Ceramic sanitary fixtures of (3)

unit 38 5 20 20 - 41 44 30 48 10
porcelain 80%
Multiple-walled insulating
m2 25 5 10 - - - 30 30 25 - 10
units of glass
Glass mirror (unframed) kg 25 5 - - - - 30 30 25 - 10 60%
(4)
Concrete steel kg 15 5 12.5 10 0 7 7 10 - 10
U,I or H section of steel
kg 10 5 18 - - - 29 30 - - 10
(height under 80mm)
40%
Alluminium doors, windows,
m2 15 5 10 - 10 - 13 15 15 14 10
frames and thresholds
Air conditioner (window or

20%
(5)
wall mounted) not unit 32 5 20 - - 33 35 30 29 10
exceeding 26,38 kW
(6) (6)
Passenger lifts unit 10 5 5 5 7 8 10 8 10
Water pump unit 22 5 10 - - - 24 26 25 29 10
Electric genset not
0%
(1)
unit 10 0 5 5 - 7 7.5 10 8 10
exceeding 75KVA 0% 20% 40% 60% 80% 100%
Project Period
MFN/WTO: Most-Favored-Nation/World Trade Organisation
Normal Tax Rate = Favoured Tax Rate x 150%
CEPT/AFTA: Common Effective Preferential Tariff Scheme / ASEAN Free Trade Area
CUMMULATIVE CUMMULATIVE
ACFTA: ASEAN-China Free Trade Area
CONTRACT CONTRACT
AKFTA: ASEAN-Korea Free Trade Area PROGRESS PROGRESS
PERIOD
AJCEP 3: ASEAN-Japan Comprehensive Economic Partnership CLAIMS CLAIMS
VJEPA 2: Vietnam-Japan Economic Partnership Agreement
AANZFTA: Australia-ASEAN-New Zealand Free Trade Agreement 5% 2% 55% 57%
AIFTA: ASEAN-India Free Trade Agreement
10% 5% 60% 64%
(1)
(2)
: Cambodia, Thailand 15% 8% 65% 70%
: Thailand
(3)
: Cambodia, Malaysia 20% 13% 70% 76%
(4)
(5)
: Cambodia, Lao, Malaysia, Thailand 25% 18% 75% 82%
: Brunei, Cambodia, Philippines, Thailand
(5)
: Malaysia, Thailand 30% 24% 80% 87%
Where the MFN/WTO tax tariff of a goods item specified in the Import Tariff is lower than
35% 30% 85% 92%
Special tariff according to different trade agreement, the import tax tariff applicable to such 40% 36% 90% 95%
goods item shall be the MFN/WTO tax tariff.
45% 43% 95% 98%
50% 50% 100% 100%
64 65
ESTIMATING RULES OF THUMB Concrete Strength (in accordance with TCVN 3118 - 1993)
Structural Design Concrete Ratios CYLINDER CUBIC CYLINDER CUBIC
15cm x 30cm 15cm x 15cm 15cm x 30cm 15cm x 15cm
The following is a range of concrete ratios for building Psi Mpa Mpa Mpa Psi Mpa
superstructure design in Viet Nam 8,000 55 66 60 8700 50
7,000 48 58 50 7300 42
Concrete/floor area 0.4m3/m2 to 0.5 m3/m2 6,000 41 49 40 5800 33
Formwork/floor area 2.2m2/m2 to 3.0 m2/m2 5,000 34 41 35 5100 29
4,000 28 34 30 4400 25
Reinforcement 160kg/m3 to 250 kg/m3 3,000 21 25 25 3600 21
8,000 55 66 20 2900 17
Average External Wall/Floor Ratio 15 2200 13
Residential Apartments 1.0 m2/m2 1.00MPa = 145.04 Psi
1.00 MPa (Cylinder 15cmx30cm) = 1.20 MPa (Cubic 15cmx30cm)
Office 0.4 m2/m2
Reinforcement
Hotel 0.4 m2/m2
Bar Dia. Weight/m Perimeter Area
Average Internal Wall/Floor Ratio (mm) (kg/m) (mm) (mm2)
6 0.222 18.85 28.27
Residential Apartments 1.0 m2/m2
8 0.395 25.13 50.26
Office 0.5 m2/m2 10 0.616 31.42 78.54
Hotel 1.5 m2/m2 12 0.888 37.70 113.10
Air - Conditioning 16 1.579 50.27 201.06
20 2.466 62.83 314.16
Average 0.065 RT/m2 of floor area 25 3.854 78.54 490.88
32 6.313 100.53 804.25
The above ratios are indicative and for reference purposes
40 9.864 125.66 1256.64
only. They do not account for buildings with special
Composition of Concrete (per m3)
shapes, configurations or particularly small footprints

Mix Cement Sand Aggregate
Indicative Dimensions for Sports Grounds
1:3:6 216 kg 0.45 m3 0.90 m3
Length Width 1:2:4 308 kg 0.43 m3 0.86 m3
Tennis Court 40 m 20 m 1:1:2 540 kg 0.38 m3 0.75 m3
Squash Court 13 m 6m Average Loads Volume
Basketball Court 38 m 23 m Lorry (24 ton) 10.0 m3
Volleyball Court 30 m 20 m Concrete truck (24 ton) 5.5 m3
Badminton Court 20 m 10 m Barge 200 1,450 m3
Ice Rink 61 m 26 m
Dimensions for Standard Parking Space,
Soccer Pitch 110-120 m 70-80 m Loading / Unloading Bays and Lay-bys
The above dimensions are for a single court with Minimum
appropriate clearance. No Spectator seating or support Length Width
Headroom
area has been allowed. Private Cars, Taxis and
5m 2.5 m 2.4 m
Densities of Common Materials Light Vans
Concrete 2,400 kg/m3 Water 1,000 kg/m3 Coaches and Buses 12 m 3.0 m 3.8 m
Cement 1,441 kg/m3 Softwood 700 kg/m3 Lorries 11 m 3.5 m 4.1 m
Sand 1,600 kg/m3 Hardwood 1,100 kg/m3 Container Vehicles 16 m 3.5 m 4.5 m
Gravel 1,350 kg/m3 Aluminum 2,750 kg/m3 Minimum headroom means the clearance between the floor
Steel 7,850 kg/m3 Soil (compact) 2,100 kg/m3 and the lower most projection from the ceiling including any
lighting units, ventilation ducts, conduits or similar.
66 67
VIETNAM BUSINESS ENVIRONMENT
Language
Accounting System
Banks
Government Administration
Taxation
Import
Insurance
Workforce
3. VIETNAM BUSINESS EVIRONMENT
LANGUAGE BANKS
Vietnamese was declared the official language of
The Vietnamese banking system was restructured in
Vietnam in 1945, as much as 70% of the vocabulary
is borrowed from Chinese and the intonation is similar the 1990s separating the State Bank of Vietnam
to Cantonese. It is spoken by approximately 90% of (Central Bank) from commercial banks and paving the
the Vietnamese population and ranked as the worlds way for the entry of foreign banks presently offering a
15th most spoken language. English , however, is range of banking services comparable to overseas
widely used in the business community.
banking facilities. Today there exists the State Bank of
80 Vietnam, State Owned Banks, Joint Stock Commercial
ACCOUNTING SYSTEM Banks, Foreign Bank branches / representative offices
and Joint Venture Banks. The law allows foreign
Foreign-invested business entities are generally required
entities and individuals to hold foreign currency
to adopt the Vietnamese Accounting System ("VAS"). If a
accounts and local Vietnamese dong accounts. Banks
company strictly follows the VAS, registration with the
requires document applicable to foreign currency
Ministry of Finance ("MoF") is not required. However, if
transactions for domestic payment and cross border
the VAS is modified, a written approval from the MoF is
transfer via capital/current account. Banks can provide
required before implementation.
customers with all of the guarantee types commonly
Accounting records are required to be maintained in
used in the economy such as bid bond, a performance

VND. A foreign-invested business entity can self-assess
guarantee, a loan under guarantee by a third party, a
to select a foreign currency to be used for its accounting
deposit guarantee , tax/custom guarantee ...Guarantee
records and financial statements and notify its local tax
fee will be regulated by each bank and depended on
authority. Accounting records are required in Vietnamese
guarantee amount and term. Letters of credit are the
language, although a commonly-used foreign language
most commonly used method of transaction for trade.
can be used at the same time along with the Vietnamese
Bank will blockade a part or the whole money amount of
language. The annual financial statements of all
client account upon receipt of decision or written
foreign-invested business entities must be audited by an
request of a competent organizations according to the
independent auditing company operating in Vietnam.
provisions of law.
Audited annual financial statements must be completed
within 90 days from the end of the year.
70 71
GOVERNMENT ADMINISTRATION The Peoples Supreme Court is the highest judicial

organ of the Socialist Republic of Vietnam. The court
The National Assembly is the highest representative consists of the Tribunal President, Vice Tribunal
organ of the people and the highest organ of the state President, judges, the juror and the secretary of the
power of the Socialist Republic of Vietnam. Members court. Moreover, the court is composed of the judge
are elected for a five year tenure through nation wide Council, judge Committee, the Military Court and
elections. Sittings of the National Assembly are held criminal court, civilian court, the court of appeal and
twice a year and have full constitutional and the assistant apparatus.
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 Countrys 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 Countrys President. The
Government 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.
72 73
TAXATION
Land use rights (LUR) with indefinite term may not be
TAXATION IN THE REAL ESTATE INDUSTRY
depreciated as deductible expense upon taxable income
determination. LUR with definite term, if accompanied by
I. Corporate Income Tax (CIT) adequate invoices and documents and lawfully
established, which is used in production and business
Organizations established in Vietnam deriving income activities, should be gradually amortized over the
from transferring or leasing property are subject to prescribed land use duration.
Corporate Income Tax (CIT) at the standard tax rate of
25%. II. Value Added Tax (VAT)
The transfer of land use rights (LUR) without infrastruc-

In case of progressive advance payment for purchase ture is not subject to VAT.
of properties under development, real estate developers
are required to pay provisional CIT, either at 25% on The transfer of LUR with infrastructure/building is
provisional income if the corresponding expenses can subject to VAT at 10%. However, the actual cost of land
be determined and matched with the revenue, or 2% on (or land rent), or the land value at the government tariff
revenue if corresponding expenses cannot be (for the case the actual land cost declared by tax payer
is determined as not reliable) can be excluded from the
determined. revenue subject to VAT.
Real estate developers generally cannot receive preferential Similar to the treatment of provisional advance CIT
tax rates, tax holidays, or other tax reductions except payable on advances/deposits received by the
certain projects with available tax incentives, such as developer, output VAT is also fully payable on the
projects located in poor social-economic regions, or advance/deposit.
projects of construction of residential house for the
All construction input VAT incurred can be claimed as
poors or workers working at Industrial Park, etc.

input VAT credit (or cash refund during the construction
stage). However, input VAT of the expenses related to
In the event that a lessee pays advanced rent covering the value of LUR transfer is not creditable/refundable.
several years, the lessor must allocate the advanced
rent payment over the number of years for which the III. Stamp Duty
lessee paid in advance, effectively matching the
income with the rental period for the tax purpose. Stamp duty is payable at the transfer of title of real estate
property by the buyer. Some specific transfers may be
However, a recent draft Decree on CIT allows the
exempted from the stamp duty.
lessor to recognise revenue by two method s (i) on
allocated year-by-year basis or (ii) lump-sum basis in Stamp duty is imposed at 0.5% on the value of the
the advanced rental collecting year with condition that property but not exceeding VND500million (approx.
the lessee shall bear all expenses incurred during the USD25,000) per asset per transaction.
use of the property.
IV. Foreign Contractor Tax (FCT)
Losses incurred in a given year can be consecutively
Foreign companies with no legal entity set up in Vietnam
carried forward for 5 years; however, they may not be (i.e. classified as Foreign Contractor or FC) supplying
carried back to previous years. Losses from activities goods and services to Vietnamese buyers and deriving
other than real estate cannot be offset against real income from Vietnam (e.g. construction contractor or
estate income in both the loss year and the carried-forward project management service) are subject to Vietnam
period. FCT.
74 75
3 VIETNAM BUSINESS EVIRONMENT
VAT and CIT are the two components of the FCT. IMPORT
There are three tax filing and payment options: (i) Full
registration method with maintenance of books and
accounts in Vietnam under Vietnam Accounting Foreign invested entities are permitted to import
system; (ii) Deemed Withholding method and (iii) the materials and equipment for their projects in
Hybrid method which consists of paying VAT on the accordance with the conditions laid down in the
conventional deduction method like a Vietnamese
foreign investment license as determined by the
company, but paying CIT on a Deemed Withholding
method basis. Ministry of Trade. Post licensing procedures involves
obtaining an export-import enterprise code from the
The Deemed Withholding method is the most common Department of Customs. Foreign entities must then
one in practice under which the contracting Vietnamese
party is responsible for registering, withholding, filing submit an Import Plan annually to the regional
and paying the FCT due from each payment made to service of trade which should be fully encompassing
the FC. The applicable rates vary depending on the and detailed enough to avoid possible re-application
nature of goods and services provided. For projects
having a substantial portion of local purchases, Hybrid and administrative delays upon arrival to the Vietnam
method is often applied via which the FCs can claim port of entry. Machinery and equipment specified in
credit the input VAT incurred on local purchase, and still the investment license may be imported duty free in
pays the CIT on a deemed basis. addition to other materials not available in Vietnam
V. Personal Income Tax (PIT) otherwise foreign entities are subject to the common
import restrictions and tariffs as stated in The 2011
Real estate property (other than sole residential Export-Import tax tariff and Value Added Tax on
property and some other specific exempt transactions)
transfer by individual is subject to PIT. Property Imports, applicable from 01/01/2011 based on
transactions subject to PIT include the transfer of the Decisions, Circulars issued by Ministry of Finance,
right to buy, the transfer of the right to lease Free Trade Agreements and published by the HCM
General Publisher. This book (readily available) has
A Vietnam tax resident has to pay PIT under one of the
following two methods: twenty-one sections covering minerals, foodstuffs,
plastics, wood, textiles, stone, plaster and glassware
(i) At 25% on the net gain assessed by the difference plus more and gives the applicable tariffs for most
between the transaction price less the cost and relevant
expenses; or favored nation status and special preferential
treatments namely ASEAN countries. In practice
(ii) 2% on the transfer price, if the cost can not be goods are imported under the investors name and
determined.
license with material and equipment and quantity
The recent update of the relevant tax regulations information provided by contractors.
indicate that (ii) above would apply in most cases.
Non-Vietnamese tax residents must pay PIT at 2% of

the transfer price.
(Reproduced by kind permission of KPMG)
76 77
INSURANCE
Overview Compulsory Insurances in Vietnam
Compulsory insurances are regulated in insurance laws
Most risks that a company would insure anywhere else
& some specialised laws. Below is the consolidation:
in the world can be adequately insured for in Vietnam.
Rates and terms are generally a function of the world Insurance Class Status
market with due consideration given to local factors
however it should be noted that VAT of 10% applies to PI for Insurance Brokers Waiting for guidance
insurance premiums on policies written within Vietnam. PI for Lawyers Waiting for guidance
While the overall ability to insure large or complicated
PI for Securities Companies Waiting for guidance
risks entirely within Vietnam is limited, the Vietnamese (Stockbrokers)
insurance industry can nonetheless insure any size risk
through reinsurance arrangements with international PI for Fund Management Waiting for guidance
Companies
reinsurance organisations. The leading reinsurers and
those who carry more than 10% have to be rated at least PI for Architects & Waiting for guidance.
BBB by Standards & Poors or B++ by AM Best or Baa Engineers Government project
by Moody's or equivalent. owners often required &
Vietnam passed a comprehensive Insurance Law in referred to this regulation
December 2000 which took effect on April 1, 2001. The PI for Auditing Firms Waiting for guidance
Amendment of Insurance Law has been passed last
PI for Evaluation Firms Waiting for guidance
year and was effective as at July 1, 2011. The key
changes are focused at keeping up with any WTO PI for Public Notary Offices Waiting for guidance
commitments such as: the insurance market is profes- Construction Works Waiting for guidance
sional & open, foreign insurers are allowed to establish Insurance

a branch in Vietnam or issue an insurance policy into Compulsory Fire & Effected. Compulsory
Vietnam. However, the law gives the power to the Explosion Insurance wordings & tariff
government to release detailed guidance and to license
Environmental Liability Waiting for guidance
such transactions. These details are yet to be released
Insurance
as of December 2011
Construction All Risks (CAR) insurance, including the Aviations Liability Effected. Compulsory
covers for the Contract Work & Third Party Liability, is Insurance limits
popular in Vietnam. Recently, owners of larger projects Compulsory Vehicle Effected. Compulsory
have shown interest in considering more technical Owners Civil Liability wordings, limits & tariff
coverages such as Advance Loss of Profit (ALoP) / Travel Insurance for Waiting for guidance
Delay in Start-Up (DSU) insurance to protect their Vietnamese traveling overseas
anticipated profit/fixed costs of a particular project.
Construction insurance still tends to be left to the Technically there is no requirement for worker compen-
contractor to arrange rather than the owner which can sation insurance. However since there is a liability
give rise to gaps in cover when projects are delayed or regarding employees under the Vietnamese labour law
split into smaller packages. There may also be gaps the purchase of worker compensation insurance can act
when the project passes from construction to operation. as a risk transfer method to protect against these
liabilities.
78 79
Market Players WORKFORCE

Insurers
There are numerous domestic and foreign companies The population of Vietnam is circa over 87 million (as
licensed to provide non-life insurance, including the Population forecast of Vietnam stating in the book
insurance for construction sectors in Vietnam.
edited by General Statistics Office) with a labour force
State-owned: Vietnam Insurance Corp (Bao Viet), Bao
Minh Insurance Corp (Bao Minh) estimated at 50 million, literacy rates are one of the
Group-controlled: Petro Vietnam Insurance JSC (PVI), highest in the region. The Ministry of Labour, Invalids
Petrolimex Insurance JSC (Pjico), Post & Telecommuni-
and Social Affairs MOLISA for short is responsible
cation Insurance JSC (PTI), Global Insurance Co.
(GIC), Vietnam Aviation Insurance JSC (VNI), Military for all labour related issues and sets the minimum age
Insurance Co. (MIC), SHB Vinacomin Insurance JSC for full-time employment is 15 years old. The minimum
(SVIC)
wage for FDI enterprises is USD 96 per month
Bank-based: Vietinbank Insurance Co. (VietInsco),
BIDV Insurance Co. (BIC), Agriculture Bank Insurance (Pursuant to the Decree No. 07/2011/N-CP of the
JSC (ABIC) Government dated 22nd August 2011), whereas the
Private: Nha Rong Insurance JSC (Bao Long), Vien
actual monthly payment for FDI enterprises is as high
Dong Assurance Corp (VASS), AAA Assurance JSC
(AAA), Bao Tin Assurance Corp (BAC), Hung King as over USD 100 per month in Ho Chi Minh City.
Insurance Corp (HKI), Great Mountant Insurance JSC Working hours are 8 hours per day, 6 day working
(GMIC)
weeks have largely been replaced by 5 day working
Foreign: Gan-Groupama, QBE, Chartis, ACE, Liberty,
Fubon, MSIG, Cathay weeks and 12 days annual leave plus statutory public
Joint Venture: Bao Viet Tokyo Marine, United Insurance holidays. Vietnam having strong socialist origins has
Co. (UIC the JV among Bao Minh, Sompo & LG),
quite heavy protectionist policy for Vietnamese
Samsung Vina Insurance (SVI)

working for foreign entities and employers must pay
There is only one reinsurer: Vietnam National Insurance 16% of basic salary for Social insurance plus 3% of
Corp (VinaRe).
basic salary for Health insurance, and 1% of basic
Brokers salary for Unemployment insurance. The Social
As insurance is best arranged through a licensed insurance rate will increase by 17% from 2012 to 2013
insurance broker who can help companies to assess the
as Article No.71 of Social Insurance Law. Most staff
underlying risks and then arrange appropriate insurance
on their behalf, there are a number of licensed will quote salaries net meaning their expected
insurance brokers. take-home money. Thirteenth month bonus is discre-
International: Jardine Lloyd Thompson (JLT), Aon,
tionary but largely expected.
Marsh, Grass Savoye Willis
Local: Viet Quoc, A Dong, Thai Binh Duong, Sao Viet,
CIMEICO, Nam A
(Reproduced by kind permission of Jardine Lloyd Thompson )
80 81
PROPERTY INVESTMENT
Building Control and Procedures
Project Closed Out Procedures
Typical Submission Flowchart
Plot Ratios and Site Coverage for Buildings
Key Design Criteria
Building Areas Definitions
Procurement Strategies
Contractor Selection Strategies
Property Overview
4. PROPERTY INVESTMENT
BUILDING CONTROL AND PROCEDURES Technical Design and Detailed Design

Project Classification
Developers using foreign design consultancies must
Projects are categorized based on the scale, nature ensure their projects undergo a Design Evaluation
and source of fund in accordance with Appendix 01 of Assessment to the Ministry of Construction or the
the Decree 12/2009/ NDCP dated 02 October 2009. Chairman of the Peoples Committee of relevant
Special projects under the jurisdiction of the Prime province who will delegate to the Ministry of Construc-
Ministers Office encompass the most national tion or provincial Construction Department. The
important project and or top security project. Projects Technical Design and Detailed Design must be in line
classified as Group A under the jurisdiction of the with the previous approved basic design including the
Ministers of Ministries encompass infrastructure and compliance of design standards and building codes,
ports (sea-ports and airports), oil and gas, cultural and the integrity of project, the well protection of environ-
sensitive projects to national defense and all projects ment and the safety in the event of fire circumstances.
over VND 500 billion, or equivalent to USD 25 million.
Group B projects encompass all other projects and fall
under the jurisdiction of Provincial Peoples Commit- Construction Permit
tees and require registration only for investment
licenses and applies to projects with a manufacturing Under the Law on Construction investors must first
and export earnings component. A full assessment for obtain a construction permit issued by the Provincial
investment licenses is required for all other projects. Peoples Committee Construction Department prior to
The table on page 89 shows the step by step licensing construction can commence. The construction permit
required for projects categorized as Group B requiring is not required for the projects of residential develop-
full assessment. ment, industrial and processing zones, hi- tech parks,
housing development of which the master plan 1/500
Project Investment Appraisal was approved by authority. There are also a few
exceptions to this in case of residential developments

Developers must carry out the project investment which shall be governed by newly published laws of
report (feasibility study report) and the basic design for Residential.
project investment appraisal including the Planning
Certificate applied to the Peoples Committee of the The investor of residential development projects shall
relevant province. The information of basic design to submit an application dossier of all the mentioned
be included encompasses address and description of inclusion plus the certificate of EIA (Environment
land plot, function of land plot, red-line boundary and Impact Assessment) and Fire Protection, which are
exit and connection with the existing transportation issued by the Provincial Department of National
and infrastructure including power, water, storm water Resources and Environment and Provincial Fire Police
drainage , waste water treatment, overall dimension Department respectively. An application dossier shall
and existing level, construction boundary, construction contain design implementation drawings and land-use
density, plot ratio, schedule of land use area and right certificates and land rental contracts. The basic
schedule of floor area, maximum floor height and inclusions are mandatory and they are location and
building height, parking lot ratios, principle of architec- description of works, storey height and height above
tural, structure and infrastructure design, environmen- sea-level, site boundary demarcation, overall site plan,
tal impact plan, fire protection plan, design standards major cross sections, main elevations, structural
and building codes. The project investment appraisal framing plans and foundation designs, environmental
is in accordance with the Circulation 03/2009/ TT-BXD and safety technical details, principle of materials,
dated 26 March 2009. schematic line diagrams of infrastructure connection of
84 85
BUILDING CONTROL AND PROCEDURES (contd)

power, telecommunication, water supply, storm and Commencement of Construction
waste water drainage system, and quantities for key
components.. Construction Permit applications will be Construction of works may only commence after satisfying
checked against various compliances in respect of the following conditions : the site area being ready to be
boundaries and interference with neighboring properties handed over, either in whole or in section and free of
and approved planning (site coverage, plot ratio and encumbrances; a construction permit; approved design
car-parking). The issuing body should provide timely drawings for execution of building; a
notice to the investor of any non-compliance for their construction contract; sufficient capital funds to ensure
remedy and resubmission to allow the implementation the building schedule in accordance with the approved
stage to commence. building schedule in the investment license; measures to
ensure safety and minimum environmental impact during
Site Clearance the construction process. Construction All Risks and
Third Party Liability Insurances as well as all required
A plan for site clearance and/or resettlement shall be insurances in accordance with conditions of contract are
submitted at the same time as the application for the recommended to be effected prior to commencement of
investment license and resettlement carried out prior to any physical construction works on Site.
site clearance taking place for construction. The time
limit for site clearance should comply with the project
implementation schedule. Resettlement is based on the
principle of providing similar or better conditions and
governmental regulations on principles, methods and a
price framework shall be adopted by the Peoples
Committee for determination of compensation levels. This
is a matter for great uncertainty and foreign investors are

advised to seek vacant possession prior to transfer of
land use right to the joint venture.
Supervision of Construction
Independent Supervision of construction works by a

competent and registered firm is a mandatory requirement.
The supervisory role encompasses quality control and
compliance checking, schedule control, quantification
control, safety and environmental hygiene control during
construction. The safety and environment control are
conducted regularly and continuously during the
implementation phase. The Supervisor is also responsible
for arranging independent inspections witnessing of
testing and commissioning data and assistance in
compilation of the dossier for putting the building into
operation and receipt of the Occupation Permit.
86 87
PROJECT CLOSED OUT PROCEDURES TYPICAL SUBMISSION FLOWCHART
Before an investor can receive rental income and LOCAL PARTNER FOREIGN PARTNER
occupy the premises for its intended use, the receipt
of approval must be received by the provincial
Construction Department or the Ministry of Construction ESTABLISHMENT OF LEGAL COMPANY
PT: 1 month
depending on the category and size of the project. AT: 1.5 month
Total : 2.5 months
SUBMIT & OBTAIN IN-PRINCIPLE SIGN A JV CONTRACT &

APPROVAL OF THE LOCATION / PROJECT AGREEMENT FOR FUTURE
The Construction Department will receive a dossier PT: 0.5 month
FROM MASTER PLANNING DEPT. TRANSFER OF ASSETS
complete with independent testing and commissioning AT: 2 months

Total : 2.5 months
data (prepared by an independent party not the SUBMIT & OBTAIN APPROVAL FOR THE
DEVELOPMENT PLANS (LAND USE) FROM
original designer) for piling, structure, electricity and RESOURCES AND ENVIRONMENT DEPT.
earthing, environmental impact with regard to water PT: 0.5 month

AT: 3 months
and waste disposal, final checking and approval of fire Total : 3.5 months
REGISTER A JV COMPANY
protection requirement. The dossier needs to have - SUBMIT AND OBTAIN APPROVAL FOR RED BOOK TRANSFER FROM
Minutes to Put the Building into Operation signed by LOCAL PARTNER TO JV CO. FROM RESOURCES AND ENVIRONMENT DEPT.
- SUBMIT AND OBTAIN APPROVAL FOR INVESTMENT LICENSE FROM DEPT.

the Investor, Testing Body, Contractor and Designer PT: 0.5 month
OF PLANNING & INVESTMENT
AT: 1.5 month
including the Project or Construction Manager if Total : 2 months
appointed. - SUBMIT AND OBTAIN APPROVAL FOR FIRE FIGHTING APPRAISAL FROM
FIRE FIGHTING DEPT.
- SUBMIT AND OBTAIN APPROVAL FOR ENVIRONMENTAL IMPACT

APPRAISAL FROM RESOURCES AND ENVIRONMENT DEPT.

PT: 1 month
AT: 4 months
Total : 5 months
SUBMIT AND OBTAIN APPROVAL FOR PLANNING TASK AND PLANNING

APPROVAL SCALE 1/500 FROM PEOPLE COMMITTEE OF THE DISTRICT
PT: 1 month
AT: 2 months
Total : 3 months
SUBMIT AND OBTAIN APPROVAL FOR BUILDING PLANS FROM

CONSTRUCTION DEPT.
Legend: PT: Preparation Time

AT: Approval Time
Note: Time indicated is based on past project experience and serve as a guide only
88 89
PLOT RATIOS AND SITE COVERAGE FOR BUILDINGS KEY DESIGN CRITERIA
(Land area over 500m2) Plot Ratios and Site Coverage
Maximum
I. High-rise building :
Average number of of Site Maximum of
storeys coverage Plot ratio
(%) Pursuant to the TCXDVN 323 : 2004 promulgated to
Decree 26 dated 2 November 2004 of Ministry of
1 70 0.70
Construction on Design standard for high-rise
2 60 1.20 building and Decree No 21/2006/QD-BXD dated 19
July 2006 of Ministry of Construction on amending and
3 53 1.59
supplementing articles of TCXDVN 323 : 2004 as follows :
4 47 1.88
5 40 2.00 Plot Ratios and Site Coverage:
6 39 2.34 - The site coverage of high-rise building must

7 36 2.52 be less than 40%.
8 33 2.54 - The plot ratio is less than 5.0.

9 31 2.70
- Other cases will be applied to the detail
10 28 2.80 planning approved by authorities.
11 26 2.86
Parking space:
12 24 2.88
13 22 2.90 - Car parking space: 1 car parking space / 4 to 6

units with standard area 25m2/car
14 21 2.94
>=15 20 3.0 5.0 - Motorcycle parking space: 2 motorcycles /

unit with standard area 2.5 to 3m2/motorcycle.
Car Parking Space
- Bicycle parking space: 1 bicycle / unit with
1 space of carparking standard area 0.9m2/bicycle.
Type of building
(25m2) for
Height from floor to ceiling soffit :
- Hotel from 3-Star
every 5 guest rooms
standard upward
- > 3m but < 3.6m.
- High-grade office,
every 150m2 floor area - In some high standard building, the height
foreign affairs offices
from floor to ceiling soffit may be lower, but not
- Super market, big less than 2.7m.
shops, conference centre, every 75m2 floor area
exhibition, show room
- High grade
every apartment
condominium
90 91
KEY DESIGN CRITERIA (contd) BUILDING AREAS DEFINITIONS
Road for fire protection : The following guidelines are derived from the RICS
Code of Measuring Practice: A Guide for Surveyors and
- Width of road > 3.5m.
Valuers. 5th Edition' and the RICS 'Standard Form of Cost
- Clearance Height > 4.25m. Analysis, Principles, Instructions and Definitions.
- Area for making U-turn > 15x5m Gross External Area (GEA)
II. Non High-rise building :
Gross External Area is the area of a building measured
Pursuant to the Vietnamese building code volume 1 externally at each floor level.
promulgated to Decree 682/BXD-CSXD dated 14
December 1996 and Decree 04/2008/QD-BXD dated
03 April 2008 of Ministry of Construction on Includes:
amending and supplementing articles of TCXDVN Perimeter wall thicknesses and external projections
323 : 2004 as follows : Areas occupied by internal walls and partitions
Columns, piers, chimney breasts, stairwells, lift
wells, and the like
Ratio (%)
Atria with clear height above, measured at base level
Type of building Maximum of
Minimum of only
Landscaping Internal balconies
site coverage
ratio
Structural, raked or stepped floors are to be treated as

1. Dwelling House a level floor measured horizontally
- Villa 30 40 Horizontal floors, whether accessible or not, below
structural, raked or stepped floors
- Condominium 50 20
Mezzanine areas intended for use with
2. Public building permanent access
- Kindergarten, School 35 40 Lift rooms, plant rooms, fuel stores, tank rooms
which are housed in a covered structure of a
- Hospital 30 40
permanent nature, whether or not above main roof
- Culture house 30 30 level
- Religious constructions 25 40 Outbuildings which share at least one wall with the
3. Factory main building
Loading bays
- Scattered construction 50 20
Areas with a headroom of less than 1.5m
- Combined block 70 20 Pavement vaults
Garages
Conservatories
92 93
BUILDING AREAS DEFINITIONS (contd)
Excludes: Service accommodation such as toilets, toilet

External open-sided balconies, covered ways and lobbies, bathrooms, showers, changing rooms,
fire escapes cleaners' rooms, and the like
Canopies Projection rooms
Open vehicle parking areas, roof terraces, and the Voids over stairwells and lift shafts on upper floors
like Loading bays
Voids over or under structural, raked or stepped Areas with a headroom of less than 1.5m
floors Pavement vaults
Greenhouses, garden stores, and the like in Garages
residential property Conservatories
Gross Internal Area (GIA) Excludes:

Perimeter wall thicknesses and external projections
Gross Internal Area is the area of a building measured External open-sided balconies, covered ways and
to the internal face of the perimeter walls at each floor fire escapes
level. Canopies
Voids over or under structural, raked or stepped
Includes: floors
Areas occupied by internal walls and partitions Greenhouses, garden stores, fuel stores, and the
Columns, piers, chimney breasts, stairwells, lift-wells, like in residential property

other internal projections, vertical ducts, and the like
Atria with clear height above, measured at base Gross Floor Area (GFA)
level only
Internal open-sided balconies and the like Gross Floor Area is the total of all enclosed spaces
Structural, raked or stepped floors are to be treated fulfilling the functional requirements of the building
as a level floor measured measured to the internal structural face of the enclosing
Horizontal floors, with permanent access, below walls.
structural, raked or stepped floors
Corridors of a permanent essential nature (e.g. fire Includes:
corridors, smoke lobbies, etc.) Areas occupied by partitions, columns, chimney
Mezzanine areas intended for use with permanent breasts, internal structural or party walls, stairwells,
access lift-wells, and the like
Lift rooms, plant rooms, fuel stores, tank rooms Lift, plant, tank rooms and the like above main roof
which are housed in a covered structure of a slab
permanent nature, whether or not above main roof
level
94 95
BUILDING AREAS DEFINITIONS (contd)

Excludes:
Note: Those parts of entrance halls, atria, landings and
balconies used in common
Sloping surfaces such as staircases, galleries, tiered
Toilets, toilet lobbies, bathrooms, cleaners rooms,
terraces and the like should be measured flat on
and the like
plan.
Lift rooms, plant rooms, tank rooms (other than
those of a trade process nature), fuel stores, and the
Excludes:
like
Any spaces fulfilling the functional requirements of Stairwells, lift-wells and permanent lift lobbies
the building which are not enclosed spaces (e.g. Corridors and other circulation areas where used in
open ground floors, open covered ways and the common with other occupiers or of a permanent
like). These should each be shown separately essential nature (e.g. fire corridors, smoke lobbies,
Private balconies and private verandahs which etc.)
should be shown separately Areas under the control of service or other external
authorities including meter cupboards and statutory
Net Internal Area (NIA) service supply points
Internal structural walls, walls enclosing excluded
Net Internal Area is the usable area within a building areas, columns, piers, chimney breasts, other
measured to the internal face of the perimeter walls at projections, vertical ducts, and the like
each floor level. The space occupied by permanent and continuous
air-conditioning heating or cooling apparatus, and
ducting in so far as the space it occupies is
Includes:
Atria with clear height above, measured at base rendered substantially unusable
level only Areas with headroom of less than 1.5m
Areas rendered substantially unusable by virtue of
Entrance halls
having a dimension between opposite faces of less
Notional lift lobbies
than 0.25m
Kitchens
Vehicle parking areas (the number and type of
Built-in units, cupboards, and the like occupying
spaces noted)
usable areas
Ramps of lightweight construction to false floors Building Footprint
Area occupied by ventilation/heating grills
Area occupied by skirting and perimeter trunking Building Footprint is not a term defined by the RICS,
Areas severed by internal non-structural walls, but is generally understood to mean the area of the land
demountable partitions, whether or not permanent, upon which the building sits (excluding all basements),
and the like, where the purpose of the division is measured to the outside face of external walls.
partition of use, not support, provided the area
beyond is not used in common
Pavement vaults.
96 97
PROCUREMENT STRATEGIES a) Traditional Lump Sum

Most contracts are let in Vietnam on a lump sum basis
Overview using a modified FIDIC Contract which in its unamended
The primary consideration in the choice of procure- form is a measure and value contract. This method
ment strategy is the need to obtain overall value for requires appointment of independent design consultants
money during the entire life of the facility and each by the employer and a sufficiently developed design
method has a different risk profile for the employer and preferably frozen prior to tender. Bills of Quantities are
contractor. In Vietnam the following is currently preva- usually provided for information only to the contractor
lent. who normally provide their own quantities with their tender
for comparison purposes only and only the rates are
Traditional Lump Sum - high extent contract rates with any errors and omissions not being
Management Contracting - low extent subject to remeasurement after the lump sum is finalized.
Construction Management - medium to Prime costs sums for nominated subcontracts for mechani-
high extent cal and electrical and lift sub-contracts are widely used.
Design and Construct - low extent
Prime Contracting - low extent b) Construction Management
Framework Agreements - rising extent This form of procurement is often portrayed as fast-track
Public Private as tender packages are often let successively throughout
Partnership (PPP) - new and the design process with no need to wait until detail design
promoted extent is complete. A construction management consultant is
engaged normally for a fixed percentage fee to procure
Most if not all projects in Vietnam are tendered in and manage the individual trade contracts which are
competition and the process is covered by the Law of placed by the employer. This necessitates effective cost
Tendering promulgated in 2006 intended primarily for management as the total construction budget is not
state projects defined as over 30% total investment finalized until the final packages are let. The employer
capital by a state entity and for Vietnamese Private bears not an insignificant risk in terms of price certainty,
firms. Foreign Investors do not need to follow the Law delays, disruption, design and coordination problems.
of Tendering although it is advisable. The law recog- Clients adopting this approach need to be conversant with
nizes open tendering, limited tendering and competi- the local environment and have the requisite in-house
tive tendering. For state projects tenders are normally skills to deal with issues as they arise.
sought using a two-envelope system i.e.
technical and financial the former being opened first to c) Framework Agreements
check for compliances. Framework agreements referred sometimes as call-off
Most foreign entities short-list tendering contractors by contracts between investors with a pipe-line of projects
having a robust pre - qualification procedure for check- and contractors can result in significant savings to both
ing financial and technical competencies. Tenders are parties using any of the procurement options above. The
usually open for 90 days. advantages are time reduced for tendering and negotia-
tions, improved processes and knowledge transfer, bulk
The FIDIC suite of contracts is widely used for Vietnam order costs savings, reduced confrontation and economies
construction contracts with the 1999 Red Book being of scale due to continuity of workflow. All these advantages
now widely accepted. There are official translations of are extremely important in the Vietnam context because it
some of the FIDIC forms and the Vietnam Consultant is of paramount importance to maintain healthy relation-
Association (VECAS) is an official member of FIDIC. ships between employers and contractors as unforeseen
Most Official Development Aid (ODA) projects in events are prevalent during the design and procurement
Vietnam adopt FIDIC also. stages in Vietnam.
98 99
PROCUREMENT STRATEGIES (contd) Table A - Procurement Strategy

d) Public Private Partnership (PPP)
Agreements
Framework
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
Contracting
expertise in order to help provide and deliver public
Prime
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,
Appropriateness of Contract Strategy
Construct
Design
build, finance and operate type services contract and and
formal points of joint venture companies. The PPP
mechanisms would help attract commercial capital and
Construction
Management
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 competi-
Management
tive bidding in order to maximize benefits and create

Contracting
equal opportunities for domestic and foreign investors.

On 9 November 2010 the Prime Minister of Vietnam
authorized the issue of detailed regulations covering
Traditional
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.
PPP
The Vietnamese Government intends to carry out PPP

programme according to a list of defined projects to
Avoid prohibitive cost of change
Desire to transfer complete risk

Pre construction price certainty
Technically advanced or highly
Need for design team to report
ensure that investors are provided with carefully Facility to recover costs direct
Contractor input to economic

Single contractual link
prepared projects with a view to creating a real PPP

Early Completion
Design prestige
Objectives
commercial market in Vietnam. In the coming years the

complex building
government will carry out some pilot projects. The PPP

Project Criteria
from contractor
construction
projects in the country will concentrate on core techni-

to sponsor
cal infrastructure that requires much capital, and

furthermore, mechanisms to mobilize private invest-
ment: (i) Roads, Road bridges, road tunnels, ferry road
Responsibility
Responsibility
Build ability
Complexity
Parameter
Variations
Professional
stations; (ii) Railway, railway bridges, railway tunnels;

Quality
Timing
Avoidance
Cost
Recovery
Damage
(iii) Airports, sea ports and river ports; (iv) Clean water
Risk
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.
100 101
CONTRACTOR SELECTION STRATEGIES

Table B - Risk Allocation
There are four tiers of contractor available for
tendering foreign investment projects, these tiers are
not official classifications.
Tier 1 Foreign contractor from Japan, Korea,

Singapore, Hong Kong, Europe
Australia
Contractor
Tier 2 Foreign contractor from China, Russia,

Taiwan and Malaysia
INDICATIVE RISK ALLOCATION
Tier 3 Local private and Joint Stock contractors
Tier 4 State contractors
There is a considerable diversity between these tiers

in terms of general expertise, technological know-how,
human-resource skills and training which leads to a
different risk profile for delivery of buildings to time,
Client
quality and cost targets. The lowest tiers use less

modern equipment, machinery and system formwork
and have much lower human resource costs.

This is inevitably leading to higher tender returns. A
rigorous pre-qualification procedure is recommended
with weighted scoring in line with project objectives
eg. lowest cost objective will have an inevitable
Public Private Partnerships
Construction Management
Management Contracting
Framework Agreements
Design and Construct
impact on quality and time.

Prime Contracting
Contract Strategy
Traditional
A typical pre-qualification assessment might cover

(indicative weighting for Vietnam 1 through 10, 10
highest)
Vietnam experience (if foreign) 8
Project type experience (local and foreign) 7
Financial capacity (particularly local) 8
Plant and equipment inventory (particularly local) 7
Direct labour strength (local and foreign) 6
102 103
CONTRACTOR SELECTION STRATEGIES (contd) unskilled and untrained workers from remote provinces,
who often are not legally resident at their working
Proposed joint venture / sub-contracting arrange- destination. Contractors should be asked to prove
ments (local and foreign) 7 their direct labour records and declare any labour only
Planning and programming capability (particularly sub-contracting arrangements. The tier 1 contractors
local) 8 will not have any full-time dedicated labour on their
Cognizance of international procedures, codes and payroll. Tier 2 contractors often import workers from
specifications (local) 8 their home country for the project duration and shall
be responsible for all associated costs and taxes.
Financial capacity (local)
Local contractors now have access to bank funding Labour is not usually permitted to reside on site.
but should not be expected to finance projects by Contractors shall provide details of training
punitive cash-flow arrangements. Most contracts are curriculums for each trade discipline when tendering
let with investors paying 10-15% advance payments as well as health and safety programmes.
which is re-couped from subsequent milestone or
interim payments. Deductions for defective works Proposed sub-contracting arrangements (local)
and liquidated damages may compound problems
so careful diplomacy is often more productive. Claims Sub-contracting is prevalent in Vietnam so it is
for additional costs due to prevailing market conditions essential to check the percentage of work
are more common in todays climate but also for subcontracted out to ensure quality control issues are
misinterpretation of contract obligations making the minimized. It is highly unlikely that any one firm will
need for good quality contract documentation possess the required human resource and plant and
essential. equipment to complete a project using in-house
resources. Foreign contractors largely act as

Plant and Equipment Inventory (local) management function providing only project
State firms tend to share or pool plant and equipment engineers, site supervisors, health and safety officers
for example tower-cranes and piling rigs. It is often and planners. Both foreign and local contractors
impossible to determine the true owner of plant and rarely directly employ foremen, gang-leaders or
equipment on-site in the event of premature indeed skilled and unskilled operatives. These
demobilization. arrangements are perfectly normal and accepted but
it is preferable to know in advance the exact
It is essential that the pre-qualification process arrangements being proposed to ensure no conflicts
determines that a contractor owns plant of sufficient of interests with other projects and to understand fully
size, capacity and suitable state of repair as the amount of control the appointed contractor has
contractors may not have full control of leased on the works he is engaged to undertake.
equipment suddenly required on other job-sites.
Planning and programming capability (local)
Direct labour strength (local)
The source of labour supply, also being verified as This capability needs careful verification from the
labour strength, may be topped-up by importing lowest tier contractors. The use of first principle time
resourced planning is rarely used. The approach
104 105
CONTRACTOR SELECTION STRATEGIES (contd)

adopted is often rule of thumb whereby planners standards they have successfully built for the key
determine critical activity durations using their trades and building elements. There is a move to
knowledge of other projects. Floor/structure cycle produce a set of consolidated Vietnamese standards
times are often inconsistent and the lack of recording but this is some way off and the hybrid approach will
and reutilization of historical data means the planning continue for some time to come.
process can be crude at best. Time or delay is a
However, no international standard shall over-ride any
perennial problem in Vietnam sometimes due to
mandatory Vietnam building code or standard. Design
employer delays such as site clearance or permit
consultants should provide a translated bi-lingual
issues or neutral delays such as weather but
version of their specifications and locally registered
contractor culpable delays should not be of any
design firms shall provide localization of the design to
surprise. The use of critical path analysis, planned
obtain local approvals. The contractors should also be
impacted analysis, window analysis and collapsed
asked to list investments such as system formwork
asbuilt are not widely known in Vietnam. This means
and their use of recent technology and list previous
time recovery analysis and the implementation of
employers and consultants whom they have worked
acceleration measures are not readily adopted and
with.
time for completion can become unpredictable. The
input of experienced Project Management might be
invaluable in reducing delays and formulating time
recovery plans.
International experience (local)

The influx of foreign invested projects has brought with

it an influx of different standards and procedures
normally from the source country. It is essential to
determine the degree of exposure local contractors
have had to international standards, procedures and
indeed expectations. The Vietnamese Codes and
Standards whilst detailed need to be used concurrently
with international standards such as American,
Australian, British or Japanese standards and
specifications as they are not comprehensive enough
to stand-alone on an international standard project.
There is no uniform and widely accepted standard or
specification. The nett result is a hybrid where every
project has a unique and bespoke set of standards
depending on the investor and his consultant source
country. The appointed design team will naturally look
to use their familiar off the shelf specifications and
tendering contractors should be asked to list the
106 107
PROPERTY OVERVIEW Grade A rents are expected to stabilise due to tight

supply, and possibly improve if there is sustained
OVERVIEW economic growth this is despite possible new supply
from Saigon One ( M & C) and Times square.
Similar to the economic picture in 2010, Vietnams
economy witnessed both growth and macroeconomic If Vietcombank Tower, and the Ben Thanh Twin Tower
instability in 2011. The yearend growth rate was 5.89%, project come online as scheduled, within the next eight
failing to meet the target of 6%. This is approximately quarters, their new supply would equal approximately
0.7% lower than the growth in 2010. 32% of current Grade A supply. This will almost
certainly put downwards pressure on rentals during the
Inflation remained atop of many newspaper headlines period. However, the Ben Thanh Twin Tower project is
during 2011, with the y-o-y average for the year ending currently only in the compensation phase, and progress
at 18.58%. A necessary consequence of this was the on the Vietcombank Tower is measured. Therefore,
tightening of monetary policy. Both factors contributing Grade A rents could appreciate in the next eight
to the limited growth that was witnessed. quarters as the new supply coming online in 2012 is
absorbed, and future supply is a full two years, or more,
In 2011 there was a steep devaluation of the dong after away.
Tet, with the currency losing 9.3% of its value on Febru-
ary 11 against its USD peg. From an exchange rate of The new Grade A projects coming online in the next
19,500VND/US$ in early January, the dong devalued to eight quarters are expected to set a new level of quality,
21,021VND/US$ in late December. In the fourth quarter which is desired by the market and required by many
the State Bank of Vietnam was slowly devaluing the multinational corporations to comply with life, health
dong by approximately 10 dong per day. and safety standards. In this respect, occupiers of
current Grade B projects are expected to take advan-
With global economies showing signs of strain at the tage of this opportunity to relocate into the newer,
beginning of 2012, and Vietnam continuing to resolve higher quality space.
macroeconomic instability, many organisations are
beginning the year by maintaining a cautious approach RESIDENTIAL SECTOR
to their business and investment models.
The residential sector generated the most headlines
OFFICE SECTOR during 2011. Developers who had moved into the
development cycle, with what could often be considered
At the end of 2011, average Grade A rents in HCMC speculative product, faced a market with notable levels
were US$32.16 psm per month, a y-o-y decline of just of falling confidence during 2011.
over 8%. The continued decline, represented twelve
straight quarters of rental declines. With macroeconomic policy tightening developers have
had limited access to capital and with buyer appetite
Demand in early 2012 is expected to be moderate as being low, numerous developers have faced cash flow
global economies remain in limbo and as the Vietnam- issues through the year. Sales velocities were less than
ese economy continues to stabilise. Absorption 2011 expected and as such developers had to look to adjust
will not come close to the record net absorption seen in strategies towards the year end. There were a number
2010. There will, however, be an opportunity for of different options considered and deployed which
corporate occupiers to obtain attractive rents during this included, the postponement/slowing of construction, the
period of limited activity. Looking towards late 2012. attempted sale of units en-bloc to investors, the transfer
108 109
PROPERTY OVERVIEW (contd) Through 2012 it is expected that the gap between what
is provided by landlords and what is required by tenants
of units to serviced apartment operators, the self will narrow, with more attention paid to seemingly small
operation of units or discounts/incentives or various things such as toilets and taxi stands, foot traffic can be
types. For a limited number of developers the measures increased.
that have been taken have provided shelter from the
market conditions, but for many developers, cash flow SERVICED APARTMENT SECTOR
is still a concern and it is expected that in early 2012
that the residential market will continue to provide The Serviced Apartment sector has proved to be one of
headlines as developers navigate the tricky conditions the most resilient, in what has proved to be a tough year
being faced. for the majority of sectors. Grade A rents have stayed
stable, with less than 1% change over the year, this is a
Despite the lacklustre market conditions it is noted that reflection of stable demand and limited supply. With the
overall asking prices have not fallen as much as some premium Times Square project expected to come
may have expected. On the secondary market the online in the second quarter of 2012, Grade A supply
greatest price falls were seen in the mid-end sector will increase by approximately 20%. Despite this
where prices fell by 7.5%, where as the affordable additional new supply, Grade A rents are expected to
sector saw asking prices stay stable over the year. It is be flat or possibly see increases. This is due to the low
however noted that the actual transactional price in both vacancy, as most Grade A projects have seen vacancy
the primary and secondary market has adjusted more rates less than 10% for the last six quarters.
than the asking prices as sellers look to close
prospects. Projects that break the trend of maintaining high rentals
in the premium CBD product sector, may have an
RETAIL SECTOR opportunity to fill their projects quicker than those that
hold out for higher rents.

In 2011 consumer confidence waned due to persistent
high inflation. Although the Governments efforts to Through 2012 demand for serviced apartments is
contain inflation gradually worked their way through the expected to remain strong. Vietnam is an emerging
economy, the high inflation seen through the year stifled destination for companies looking to place expatriate
consumers appetite to spend. staff, with an increasing standard of living for foreigners
but a lower cost of living compared to the regional hubs
Department store rents continued to climb as landlords of Singapore and Hong Kong. Vietnam is also expected
felt they could charge a premium. Parkson, which to capitalise on regional trends including the diversification
continued to expand in 2011, has seen success at a of manufacturing out of Japan after the earthquake and
number of its outlet as consumers and retailers alike tsunami, and the rising cost of doing business in China,
have shown a preference for their format. where an increase in the minimum wage is pushing
manufacturers to look at other areas for expansion.
In the first half of 2012 retail sales are expected to
remain flat. Landlords, especially in shophouses and Recent data reported by Oxford Economics indicates
non-CBD shopping centres, will be forced by market that textile exports from Vietnam in the first eight
realities to become more reasonable with their rental months of 2011 were up 29% y-o-y, and coffee exports
rates. Department stores will be able to hold their rental were up 9% y-o-y in the first seven months of 2011. This
rates in the same period. New retail options will need to
offer attractive rents to attract retailers.
110 111
PROPERTY OVERVIEW (contd)

all bodes well for Vietnam, but our forecast of high
serviced demand is tempered by the uncertainty
surrounding the global economy at the turn of the year.
As serviced apartment demand depends heavily on
expatriates continuing to be posted to Vietnam, it is
perhaps more directly affected by the global economy
than other sectors. Since our last forecast three months
ago there has been a significant increase in the
likelihood of a recession in the United States and a
disorganised Eurozone debt default. The uncertainty
around the outcome of Greeces sovereign debt crisis is
increasing, and in the United States political posturing
abdicates the will to implement the reforms necessary
to stabilise the economy and promote growth. If the
already fragile global recovery falters, there may be a
reduction in expatriate staff, which would increase
vacancy in the serviced apartment market.
(Reproduced by kind permission of

CB Richard Ellis)
112 113
OTHER INFORMATION
Vietnam Map
Domestic Routes
Relevant Websites
Public Holidays
Prime Rates
IDD Codes and Time Differences
Conversion Factors
Some Interesting Facts
Vietnam Key Data
5. OTHER INFORMATION
VIETNAM MAP DOMESTIC ROUTES
DISTANCE FLIGHT TIME

MILES/KMS OUTBOUND RETURN
HA NOI TO
Buon Ma Thuot 569/960 1:40 1:40
Cam Ranh - Nha Trang 646/1039 1:50 1:50
Da Lat 662/1065 1:40 1:40
Da Nang 377/606 1:15 1:15
Dien Bien 187/301 1:00 1:00
Ho Chi Minh City 707/1138 2:00 2:00
Hue 341/549 1:10 1:10
HO CHI MINH CITY TO
Buon Ma Thuot 162/260 1:00 0:55
Ca Mau 153/246 1:00 1:05
Con Son - Con Dao 130/210 1:00 1:05
Chu Lai 346/557 1:40 1:40
Da Lat 133/214 0:50 0:50
Da Nang 375/603 1:10 1:10
Ha Noi 707/1138 2:00 2:00
Hai Phong 691/1111 2:00 2:00

Hue 392/630 1:20 1:20
Phu Quoc 187/300 1:00 1:05
Pleiku 238/384 1:15 1:10
Quy Nhon 267/430 1:30 1:25
Rach Gia 121/194 0:50 0:45
Tuy Hoa 237/381 1:15 1:25
Vinh 549/883 1:45 1:45
DA NANG TO
Buon Ma Thuot 233/374 1:10 1:10
Ha Noi 377/606 1:10 1:10
Ho Chi Minh City 375/603 1:10 1:10
Pleiku 141/227 0:50 0:50
Quy Nhon 171/275 1:00 1:00
(Source: Wikimedia)
(Source: Vietnam Airlines)
116 117
RELEVANT WEBSITES
Government Office http://www.chinhphu.vn
Ministry of Public Security http://www.mps.gov.vn
Ministry of Home Affairs http://www.moha.gov.vn
Ministry of Justice http://www.moj.gov.vn
Ministry of Planning and Investment http://www.mpi.gov.vn
Ministry of Finance http://www.mof.gov.vn
Ministry of Industry and Trade http://www.moit.gov.vn
Ministry of Agriculture and Rural Development http://www.argoviet.gov.vn
Ministry of Transport http://www.mt.gov.vn
Ministry of Construction http://www.moc.gov.vn
Ministry of Natural Resources and Environment http://www.monre.gov.vn
Ministry of Information and Communication http://www.mic.gov.vn
Ministry of Labor, War Invalid and Social Affairs http://www.molisa.gov.vn
Ministry of Culture, Sports and Tourism http://www.cinet.gov.vn
Ministry of Science and Technology http://www.most.gov.vn

Ministry of Health http://www.moh.gov.vn
Ministry of Education and Training http://www.moet.gov.vn
Ministry of Foreign Affairs http://www.mofa.gov.vn
State Bank of Vietnam http://www.sbv.gov.vn
General Statistics Office of Vietnam http://www.gso.gov.vn
Directorate for Standards, Metrology and Quality http://www.tcvn.gov.vn
Vietnam National Administration of Tourism http://www.vietnamtourism.com
Vietnam Customs Office http://www.customs.gov.vn
Vietnam Register Office http://www.vr.org.vn
118 119
PUBLIC HOLIDAYS
2011 2012 2011 2012

Vietnam HongKong
Normal Scheduled Holidays
The first day of January 01 Jan 01
Solar New Year 03 Jan # 2 Jan # The day following the first - 02
Lunar New Year 03 Feb 23,24,25 Jan
day of January *
04 Feb 26 Jan##
07 Feb ## Lunar New Year's Day 03 Feb 23
Liberation Day of Saigon 02 May ### 30 Apr The 2nd day of Lunar New Year 04 Feb 24
International Labour Day 03 May ### 1 May The 3rd day of Lunar New Year 05 Feb 25
Ching Ming Festival 05 Apr 04
National Day 02 Sep 3 Sep #### Good Friday 22 Apr 06
Hung Vuong King Celeration 12 Apr 2 Apr ### The day following Good Friday 23 Apr 07
Christmas Day 25 Dec 25 Dec Easter Monday 25 Apr 09
# substitue for 1 Jan (Sun) Labour Day 01 May 01
## substitute for 22 Jan (Sun) The day following Labour Day 02 May -
### substitute for 31 Mar (Sat)
Buddha's Birthday 10 May 28
#### substitute for 2 Sep (Sun)
Tuen Ng Festival 06 Jun 23
HKSAR Establishment Day 01 Jul 01
China The day following HKSAR - 02
New Year's Day @ 01 Jan 01 Establishment Day @
Chinese New Year's Eve 02 Feb 22 The day following Chinese 13 Sep 01
Chinese New Year* 03 Feb 23 Mid-Autumn Festival

04 Feb 24 National Day 01 Oct -
Tomb-sweeping Day & 05 Apr 04 The day following National Day # - 02
Labour Day % 01 May 01 Chung Yeung Festival 05 Oct 23
Dragon-boat Festival + 06 Jun 23 Christmas Day 25 Dec 25
Mid Autumn Festival 12 Sep 30 The 1st week-day after 26 Dec 26
National Day# 01 Oct 01
Christmas Day
02 Oct 02
03 Oct 03 The 2nd week-day after 27 Dec
Christmas Day
@ 2 and 3 January are holidays, 31-Dec 2011 is working day
*25-28 January are holidays, 21 and 29 Jan are working days * As The first day of January in 2012 falls on a Sunday,
& 2 and 3 Apr are holidays, 31 Mar and 1 Apr are working days the day following will be designated as an additional holiday
% 29 and 30 Apr are holidays, 28 Apr is working day @As the HKSAR Establishment Day in 2012 falls
+ 22 and 24 Jun are holidays on a Sunday, the day following will be designated
#4-7 October are holidays, 29 Sept is working day as an additional holiday
# As the day following Chinese Mid-Autumn Festival
and National Day in 2012 fall on the same day, one
additional holiday will be granted following the National Day.
120 121
PUBLIC HOLIDAYS (contd)
2011 2012 2011 2012

Macau Brunei
New Year's Day 01 01 Jan @ New Year's Day** 01-Jan 02-Jan

The first working day after - 02Jan #
New Year's Day
Lunar New Year Eve (Afternoon) 02 Feb - Chinese New Year 03-Feb 23-Jan
Lunar New Year's Day 03 23
The 2nd day of Lunar New Year 04 24 Prophet Muhammad's** 15-Feb 06-Feb
The 3rd day of Lunar New Year 05 25
Birthday **
Ching Ming Festival 05 04
Good Friday 22 06 National Day 23-Feb 23-Feb
The day following Good Friday 23 07 Apr @ Royal Brunei Armed
Easter Monday 25 Apr 09 Apr # Forces Anniversary 31-May 31-May
Labour Day 01 May 01
The day following Labour Day 02 May - Israk Miraj** 29-Jun 18-Jun
The Buddha's Birthday 10 28 Apr @ His Majesty's Birthday** 16-Jul 16-Jul
The first working day after - 30 Apr # First Day of Ramadhan * 01-Aug 21-Jul
the Buddha's Birthday
06 23
Anniversary of the
Tung Ng Festival (Dragon Boat Festival)
The first working day after - 25 Jun # Revelation of the Holy Koran * 17-Aug 06-Aug
Tuen Ng Festival Hari Raya Aidilfitri * 30-Aug 20-Aug
Bank's Holiday 01 Jul 02 Hari Raya Aidilfitri (second day) * 31-Aug 21-Aug
National Day 01 01
The day following National Day 02 Oct 02 Hari Raya Aidil Adha * & ** 07-Nov 26-Oct
The 1st working day following 03 Oct - First Day of Hijrah* & ** 28-Nov 15-Nov
National Day Christmas Day * 26-Dec 25-Dec
The day following Mid-Autumn 13 -
Festival
* Subject to Change
Chong Yeung Festival 05 23
** Replacement for Fridays / Sundays
All Soul's Day 02 02
Fridays and Sundays are government off days
Feast of the Immaculate Conception 08 08 Dec @
The first working day after Feast - 10 Dec #
of Immaculate Conception Singapore
Macao SAR Establishment Day 20 20
New Year's Day 01-Jan 01-Jan #
Winter Solstice 22 Dec 21 Dec @
Christmas Eve 24 24 Chinese New Year 03-Feb 23-Jan
Christmas Day 25 Dec 25 04-Feb 24-Jan
The day following Christmas Day 26 Dec - Good Friday 22-Apr 6-Apr
Bank's Holiday 27 Dec 26 Labour Day 01-May # 01-May
New Year's Eve (Afternoon) - 31 Dec # Vesak Day 17-May 05-May
National Day 09-Aug 09-Aug
# Special Holiday Granted by Chief Executive
@ Not Applicable to Banks
122 123
2011 2012 2011 2012

Singapore (contd) Malaysia
Hari Raya Puasa 30-Aug 19-Aug # New Year's Day ** 01 Jan 01-Jan#
Deepavali* 26-Oct 13-Nov Chinese New Year*** 03-Feb 23-Jan
Hari Raya Haji 06-Nov # 26-Oct 04-Feb 24-Jan
Christmas Day 25-Dec # 25-Dec Prophet Muhammad's Birthday 15-Feb 05-Feb#
Labour Day 01-May 01-May
* Subject to changes Wesak Day 17-May 05-May
# The following Monday will be a public holiday. King/Agong's Birthday 04-Jun 02-Jun
Philippines Hari Raya Aidilfitri* 30-Aug 19-Aug
A. Regular Holidays 31-Aug 20-Aug#
National Day 31-Aug # 31-Aug
New Year's Day 01 Jan 01 Jan Malaysia Day 16-Sep 16-Sep#
Maundy Thursday 21 Apr 05 Apr Hari Raya Qurban* 06-Nov 26-Oct
Good Friday 22 Apr 06 Apr Deepavali* 26-Oct 13-Nov
Awal Muharam (Maal Hijrah) 27-Nov 15-Nov
Araw ng Kagitingan 09 Apr 09 Apr Christmas Day 25-Dec 25-Dec
Labour Day 01 May 01 May
* Subject to change
Independence Day 12 Jun 12 Jun ** Except Johor, Kelantan, Kedah, Perlis &
End of Eid-ul-Fitre 31 Aug 19 Aug Terengganu
*** 2nd Day except Kelantan & Terengganu
National Heroes' Day 30 Aug 30 Aug
# The following day will be an additional public holiday
Eid-ul Adha 07 Nov 26 Oct
Bonifacio Day 30 Nov 30 Nov Indonesia

Christmas Day 25 Dec 25 Dec New Year's Day 01-Jan 01-Jan
Rizal Day 30 Dec 30 Dec Chinese new Year (Imlek) 03-Feb 23-Jan
Prophet Muhammad's Birthday 15-Feb 05-Feb
B. Special Holidays Hindu Day of Quiet (Nyepi) 05-Mar 23-Mar
(Non-Working Holidays) Good Friday 22-Apr 06-Apr
21 Aug 21 Aug Waicak Day 17-May 06-May
Ninoy Aquino Day
Ascension Day of Jesus Christ 02-Jun 17-May
All Saint's Day 01 Nov 01 Nov Ascension of Prophet
Last Day of the Year 31 Dec 31 Dec Mohammad* 29-Jun 17-Jun
National Independence Day 17-Aug 17-Aug
Idul Fitri* 30-Aug 19-Aug
31-Aug 20-Aug
Idul Adha Day 06-Nov 26-Oct
Hijriyah New Year 27-Nov 15-Nov
Christmas Daya 25-Dec 25-Dec
* Subject to changes
124 125
2011 2012 2011 2012

Thailand India
New Year's Day 3 Jan7 2 Jan1 New Year's Day 01-Jan 01-Jan
Chinese New Year* 3 Feb 23 Jan Sankranthi 14-Jan 14-Jan
Makha Bucha Day 18 Feb 7 Mac Republic Day 26-Jan 26-Jan
Chakri Memorial Day 6 Apr 6 Apr Ugadi
Songkran Festival 13 Apr 13 Apr Good Friday 22-Apr 06-Apr
14 Apr 14 Apr May Day 01-May 01-May
15 Apr 15 Apr Independence Day 15-Aug 15-Aug
- 16 Apr2 Gandhi Jayanthi 02-Oct 02-Oct
National Labour Day 2 May 1 May Karnataka Formation Day 01-Nov 01-Nov
Coronation Day 5 May 7 May3 Deepavali 26-Oct 13-Nov
Visakha Bucha Day 17 May 4 June Christmas Day 25-Dec 25-Dec
Royal Ploughing Ceremony Day+ 13 May 9 May
Mid Year Bank Holiday# 1 Jul 1 Jul Pakistan
Asarnha Bucha Day 15 Jul 2 Aug Ashoura
Khao Phansa Day (Buddhist Lent Day)+
18 Jul 3 Aug Kashmir Day 05-Feb 05-Feb
H.M. The Queen's Birthday 12 Aug 13 Aug4 Pakistan Day 23-Mar 23-Mar
- - Eid-e-Milad-un-Nabi *16- Feb *5-Feb
Chulalongkorn Day 24 Oct 23 Oct Labour Day 01-May 01-May
H.M. The King's Birthday 5 Dec 5 Dec Independence Day 14-Aug 14-Aug
Constitution Day 12-Dec 10 Dec Eid al-Fitr (End of Ramadan) *31 Aug *19 Aug
New Year's Eve 31 Dec 31 Dec *1 Sep *21Aug

Allama Muhammad Iqbal Day 09-Nov 09-Nov
Eid ul-Azha *7 - 9 Nov *26 - 27 Oct
(Feast of the Sacrifice)
* Unofficial Chinese Community Only
Quaid-e-Azams Birthday 25-Dec 25-Dec
# Banks only
Ashoura *5 - 6 Dec *24 - 25 Nov
+ Government only
* Subject to change
1 Substitute for 31 Dec 2011(Saturday) and 1 Jan 2012 (Sunday)
2 Substitute for 14 Apr 2012(Saturday) and 15 Apr 2012 (Sunday)
3 Substitute for 5 May 2012(Saturday)
4 Substitute for 12 Aug 2012(Sunday)
126 127
PUBLIC HOLIDAYS (contd) PRIME RATES (as at 4th Quarter 2011)

RATE (%)
2011 2012 COUNTRY
4Q 2009 4Q 2010 4Q 2011
Japan
Australia * 3.21 4.75 4.50
New Year's Day * 01-Jan 02-Jan
Coming of Age Day 10-Jan 09-Jan Brunei 5.50 5.50 5.50
National Foundation Day* 11-Feb 11-Feb
Spring Equinox Day* 21-Mar 20-Mar China ** 5.40 5.60 6.90
Day of Showa* 29-Apr 30-Apr
Constitution Memorial Day* 03-May 03-May Egypt *** 9.75 9.75 10.25
Greenery Day* 04-May 04-May
Children's Day* 05-May 05-May Hong Kong 5.00 5.00 5.00
Marine Day 18-Jul 16-Jul
Respect-for-Senior-Citizens Day 19-Sep 17-Sep India 12.75 8.50 14.75
Autumnal Equinox Day* 23-Sep 22-Sep Indonesia 6.50 6.50 6.00
Physical Fitness Day 10-Oct 08-Oct
Culture Day* 03-Nov 03-Nov Japan ###
1.73 1.60 1.60
Labor Thanksgiving Day* 23-Nov 23-Nov
The Emperor's Day* 23-Dec 23-Dec Macau 5.25 5.25 5.25
# When Public Holiday Malaysia 5.55 6.30 6.60
(*) falls on Sunday, the following Monday is an alternative holiday.
New Zealand ^ 10.02 10.47 10.01
Korea
Pakistan ^^ 14.32 13.52 13.97
New Year's Day 01-Jan 01-Jan
Lunar New Year (Seol) 02-04 Feb 23-24 Jan Philippines 7.020 6.540 5.740
Independent Movement Day 01-Mar 01-Mar
Buddha's Birthday 10-May 28-May Singapore 5.38 5.38 5.38
Children's Day 05-May 05-May
Memorial Day 06-Jun 06-Jun South Africa 10.50 9.00 9.00
Liberation Day 15-Aug 15-Aug

+
National Foundation day 03-Oct 03-Oct South Korea 2.00 2.38 3.25
Full Moon Day (Chuseok) 11-13 Sep 29 -01 Oct
Christmas Daya 25-Dec 25-Dec Thailand # 6.44 6.56 7.71
Taiwan United Kingdom 0.50 0.50 0.50
Founding Day 01 Jan 01
Lunar New Year's Eve 02 Feb 22 United States of America 3.25 3.25 3.25
Lunar New Year's Day 03 Feb 23 ##
The 2nd day of Lunar New Year 04 Feb 24 Vietnam 8.00 9.00 9.00
The 3rd day of Lunar New Year 05 Feb 25
The 4th day of Lunar New Year 06 Feb 26
The first weekday after Lunar New Year 07 Feb - Australia* = O/N Cash Rate
Public Holiday * - 27 China** = 3-year Benchmark Lending Rate
Public Holiday @ - 27 Egypt *** = Overnight Lending Rate
Peace Memorial Day 28 Feb 28
Women Day and Children's Day 04 Apr 04 New Zealand^ = SME Overdraft Rate
Ching Ming Festival 05 Apr - (Previously Business Base Lending Rate)
Labour Day 01 May 01 Pakistan^^= Weighted Average Lending Rate
Dragon Boat Festival 06 Jun 23 South Korea+ = Base Rate of The Bank of Korea
Mid-Autumn Festival 12 Sep 30 Thailand # = Minimum Loan Rate % per annum
Double Ten Day 10 Oct 10 (avg based on local bank)
Public Holiday # 31
Vietnam## = Min and in VND per year
* As 4-Feb is adjusted to work, this day is adjusted to holiday. Japan### =Long-term prime rate % per annum
@ As 3-Mar is adjusted to work, this day is adjusted to holiday.
# As 22-Dec is adjusted to work, this day is adjusted to holiday. (Implementation date is Dec/10/2010)
128 129
IDD CODES & TIME DIFFERENCES

Time Time
IDD IDD
Difference Difference
DESTINATION DESTINATION
Country Country
(hours)* (hours)*
Code Code
Australia : Macau 853 1
Perth 61 1 Malaysia 60 1
Sydney 61 3 Myanmar 95 -2.5
Bahrain 973 -4 Netherlands 31 -6
Brunei 673 1 Phillipines 63 1
Canada : Quatar 974 -4
Toronto 1 -12 Singapore 65 1
Vancouver 1 -14 Spain 34 -6 to -7
China 86 1 Switzerland 41 -6
Czech Republic 42 -6 Taiwan 886 +1

Finland 358 -5 Thailand 66 0

United Arab
France 33 -6 971 -3
Emirates
Germany 49 -6 United Kingdom 44 -7
Hong Kong 852 1 United States of

America :
Indonesia 91 -1.5
Los Angles 1 -15
India 62 -2
New York 1 -12
Italy 39 -6
Vietnam 84 0
Japan 81 2
Korea (North) 850 2 * Allowance should be made for seasonal time variations
Korea (South) 82 2
130 131
CONVERSION FACTORS
UNIT TO METRIC TO IMPERIAL

(Approx) (Approx)
LENGTH
10mm = 1 cm 12 in = 1 ft 1 in = 25.400 mm 1 cm = 0.394 in

100cm = 1m 3ft = 1 yd 1 ft = 30.480 cm 1 m = 3.281 ft
1,000m = 1 km 1,760 yd = 1 mile 1 yd = 0.914 m 1 m = 1.094 yd
1 mile = 1.609 km 1 km = 0.621 mile
AREA
10,000 m2 = 1 ha 9 ft2 = 1 yd2 1 ft2 = 0.093 m2 1 m2 = 10.764 ft2

100 ha = 1 km2 4840 yd2 = 1 acre 1 yd2 = 0.836 m2 1 m2 = 1.196 yd2
638 acre = 1 miles2 1 acre = 0.405 ha 1 ha = 2.471 acres
1 miles2 = 2.590 km2 1 km2 = 0.386 miles2
VOLUME
1,000 ml = 1l (UK) 8 pt = 1 gal (UK) 1 pt = 0.568 l (UK) 1 l = 1.760 pt

(US) 8 pt = 1 gal (US) 1 pt = 0.473 l (US) 1 l = 2.113 pt
(UK) 1 gal = 4.546 l (UK) 1 l = 0.220 gal

(US) 1 gal = 3.785 l (US) 1 l = 0.264 gal
MASS
1,000 g = 1 kg 16 oz = 1 lb 1 oz = 28.350 g 1 gram = 0.035 oz

1,000 g = 1 tonne 2,240 lb = 1 ton 1 lb = 0.454 kg 1 kg = 2.205 lb
16 tael = 1 catty 1 ton = 1.016 tonne 1 tonne = 0.984 ton
1 catty = 0.605 kg
POWER 1hp = 0.746 kw 1 kw = 1.340 hp
0 0
TEMPERATURE 0
C = ( F-32)x5/9 0
F = ( Cx9/5)+32
132 133
SOME INTERESTING FACTS VIETNAM KEY DATA

Government
Vietnams history can roughly be divided into the Country Name : The Socialist Republic of Vietnam
following periods: Head of State : President
Government Type : Socialist Republic
Pre-history: from circa 400,000 years Head of Government : Prime Minister
(Palaeolithic) to 4,000 years (Neolithic) ago, Capital City : Hanoi
cultures in the area included Son Vi, Hoa Administrative Divisions : 64 provinces and central cities
Binh, Bac Son, Ha Long, and Hoa Loc. Independence : 2nd September 1945
Legal System : Based on Constitution of Vietnam
Proto-history: According to legends, Official Language : Vietnamese
Vietnam originated in the seventh century National Language : Vietnamese
BC when the Hung Kings founded Van
Lang. In the third century BC, King An Geography
Duong Vuong named founded Au Lac and Geographic Coordinates : 16 00 N, 106 00 E
ruled until 179 B.C. Location : South East Asia
Border Countries : Cambodia 1,228 km, China 1,281 km,
Chinese Occupation: Vietnam was Laos 2,130 km
occupied by China from the first to the tenth Total Area : 331,210 sq km
century A.D. Land Area : 310,070 sq km
Water : 21,140 sq km
Monarchy: Kings rules the area from 968 to Land use : arable land 20.14%
1945. permanent crops 6.93%

other 72.93%
Independence: The Socialist Republic of
Irrigated Land : 30,000 sq km (2003)
Vienam was founded after the 1945 Coastline : 3,444 km (excludes islands)
revolution, when President Ho Chi Minh Land boundaries : 4,639 km
declared independence. Natural Resources : phosphates, coal, manganese, bauxite,
chromate, offshore oil and gas
French War: Vietnam battled French colo-
deposits, forests, hydropower
nialism from 1858 to the August Revolution Climate type : tropical in south; monsoonal in north
in 1945, and from 1946 to the victory at with hot, rainy season (mid-May to mid-
Bien Bien Phu in 1954. September) and warm, dry season
(mid-October to mid-March)
American War: Vietnam fought America
Natural hazards : occasional typhoons (May to January)
from 1954 to Ho Chi Minhs victory on April with extensive flooding, especially in
30, 1975. the Mekong River delta
From 1975 until now: Vietnam has been
working towards development and success.
134 135
VIETNAM KEY DATA (contd)

People Economy
Total Population : 86.93 million ( 2010 est.) Monetary Unit : Vietnamese Dong
Age structure from 15 : 15-24 years 18.3% Currency Code : VND
years 24-49 years 61.4% Exchange rate to dong (VND) per
50 years and over 20.3% USD : 20,031 (2011 average)
Population Growth Rate : 10.3 Euro : 27,917 (2011 average)
Median Age : total: 27.4 years British Pound : 32,155 (2010 average)
male: 26.4 years Average Consumer : 18.62% (from Jan to Nov 2011)
female: 28.5 years (2010 est.) Price Index (CPI)
Life Expectancy : 71.94 years Fiscal Year : 1 January to 31 December
male: 69.48 years GDP (Official Exchange : US$ 85.37 billion (First 9 months 2011)
female: 74.69 years (2010 est.) Rate)
Urban Population GDP Growth Rate : 5.76% (First 9 months 2011)
Hanoi : 6.56 million (2010 est.) GDP composition by : Agriculture: 21.5%
Ho Chi Minh City : 7.4 million (2010 est.) sectors Industry: 40.66%
Ethnic Groups : 54 Ethnic Groups Services: 37.84% (2011 est.)
Kinh (Viet) 86.2%, Tay 1.9%, Thai 1.7%, Trade
Muong 1.5%, Khome 1.4%, Hoa 1.1%, Total Exports : US$ 87.2 billion (From Jan to Nov 2011)
Nun 1.1%, Hmong 1%, others 4.1% Major Exports : crude oil, marine products, rice, coffee,
(1999 census) rubber, tea, garments, shoes

Languages : Vietnamese (official), English Export Partners : US 17.7%, EU 16.8%, ASEAN 14%
(increasingly favored as a second China 9.86%, Japan 9.74%
language), some French, Chinese, and Total Imports (USD : US$ 96.1 billion (From Jan to Nov 2011)
Khmer; mountain area languages billion)
(Mon-Khmer and Malayo- Polynesian) Major Imports : machinery and equipment, petroleum
Literacy (definition: age : total population: 90.3% Commodities products, fertilizer, steel products, raw
15 and over can read male: 93.9% cotton, grain, cement, motorcycles
and write) female: 86.9% (2002 est.) Import Partners : China 20.4%, ASEAN 18.3%,
Population below : 12.3% (2009 est.) Korea 10.8%, Japan 8.7%, EU 6.3%
poverty line International Airports : Tan Son Nhat (Ho Chi Minh City), Noi Bai
Labor Force : 50.39 million (Hanoi), Da Nang (Da Nang)
Labor Force by : Agriculture: 49% Major Seaports : Saigon, Hai Phong, Da Nang, Cam Pha,
occupation Industry: 22% Phu My, Cai Mep
Services: 30% (2010 est.)
Unemployment Rate : 6.45% (2010 est.) (Source: General Statistics Office)
136 137

Handbook 2012

Cargado por

Información del documento

Derechos de autor

Formatos disponibles

Compartir este documento

Compartir o incrustar documentos

Opciones para compartir

¿Le pareció útil este documento?

¿Este contenido es inapropiado?

Copyright:

Formatos disponibles

Handbook 2012

Cargado por

Copyright:

Formatos disponibles

Copyright Statement and information

Fifth Edition 2012

Davis Langdon & Seah Vietnam Co Ltd

All rights reserved. No part of this publication

The information contained herein should be

accuracy of the information herein and cannot

Unless otherwise stated, costs reflected in this

Davis Langdon & Seah Vietnam Co., Ltd. would

Jardine Lloyd Thompson

Projects featured on Cover Page (from left to right):

Page No. Page No.

2. GENERAL CONSTRUCTION DATA 5. OTHER INFORMATION

Material Price Indices 62 vietnam Map 116

Prime Rates 129

Davis Langdon & Seah International has been

other future annually published handbooks, focuses

JAN FEB MAR JAN FEB MAR

APR MAY JUN APR MAY JUN

JUL AUG SEP JUL AUG SEP

OCT NOV DEC OCT NOV DEC

JAN FEB MAR JAN FEB MAR

APR MAY JUN APR MAY JUN

JUL AUG SEP JUL AUG SEP

OCT NOV DEC OCT NOV DEC

CONSTRUCTION MARKET 2012 OUTLOOK

(Source: Vietnam Investment Review)

Note: 2011 from Jan to Nov

FDI by countries as of Nov 2011

(Source: Vietnam Investment Review)

FDI by Sectors November 2011 Vietnam Annual ODA

Logistics 314 3,249.77 1,009.12

Health care 73 1,015.50 220.85

Science & Technology 1,104 969.16 496.65

Education and Training 150 354.56 123.53

Supporting serv ices 104 187.69 96.30

(Source: Vietnam Investment Review) (Source: Ministry of Planning and Investment)

Vietnam Construction Output Table

2011 - 9mths 4.84 5.94 4.91

(Collective data from General Statistics Office)

MAJOR RATES FOR SELECTED ASIAN CITIES

DESCRIPTION HO CHI MINH ^ KUALA LUMPUR

1. Excavating basement not exceeding 2m deep m3 69,000 15.00 - 20.00

Average expected preliminaries % 8 - 12 6 - 12

MAJOR RATES FOR SELECTED ASIAN CITIES

DESCRIPTION BANGKOK# JAKARTA# MANILA

1. Excavating basement not exceeding 2m deep m3 100.00 23.00 350.00

Average expected preliminaries % 10 - 15 5 - 10 8 - 15

MAJOR RATES FOR SELECTED ASIAN CITIES

1. Excavating basement not exceeding 2m deep m3 3.50 16.50

12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m 2 56.00 43.00

Average expected preliminaries % 5-8 12 - 15

MAJOR RATES FOR SELECTED ASIAN CITIES

HONG KONG BEIJING SHANGHAI

1. Excavating basement not exceeding 2m deep m3 115.00 15.00 30.00

Average expected preliminaries % 10 - 15 5 - 10 3-8

Note Rate including waste charges implemented on 01-Dec-2005

MAJOR RATES FOR SELECTED ASIAN CITIES

1. Excavating basement not exceeding 2m deep m3 25.00 110.00 130.00

Average expected preliminaries % 5 - 10 8 - 15 5 - 10

MAJOR RATES FOR SELECTED ASIAN CITIES

1. Excavating basement not exceeding 2m deep m3 16.00 20.00

12. "Kliplok Colorbond" 0.64mm profiled steel sheeting m 2 N/A N/A

Average expected preliminaries % 5 - 10 5 - 10

MAJOR RATES FOR SELECTED ASIAN CITIES

MANILA PHP43.00 0.20-0.27' 0.21' 0.56-0.65' 1.32' 1.095 N/A** 1.243

TOKYO t JPY78.14 0.277 0.277 2.726 5.170* 1.459 N/A 1.639