| Abstract | Bearing the similar situation to the region the Vietnam economic is still suffered much from the global economic crisis. The remarkable and significant industry that is hit hard is Real Estate Industry. As announced through the Circular No. 13/2010/TT-NHNN of the State Bank of Vietnam, the risk guarantee ratio of credit for property investment business was increased from 100 percent to 250 percent, and banks are required to reserve 9 percent of their capital for risk prevention purposes. Therefore, credit for the real estate market became extremely tight. In addition, the issuance of some new regulations on controlling the real estate projects such as Circular 13, Decrees 69 and Decrees 71 revealed a strong increase in State management measures. Ho Chi Minh City is one of the biggest city in Viet Nam with GDP contribution about one third of whole country, so it has a big suffer in this market too. Transaction in the real estate market is very slow and many developers have had to delay construction of their projects with 60-70 percent of all projects now being delay. According to Mr Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoRea), that although there is not got the specific statistic telling the number of project delayed, but it is has become very common. As the result, many companies are transferring their projects to other partners to secure the capital required to continue developing existing projects and ride through the storm. “Transferring property projects is actually a normal activity in the market,” Mr Chau added. (Source: http://news.vneconomy.vn/20110805104543528P0C4/changing-tack.htm)With the statistics presented on newspaper recently, although there were only few projects of Mergers and Acquisitions (M&A), a considerable numbers of M&A deals have been increasing. For instance, Thien Minh Tourism Company had been acquisitioned of a chain of six hotels and resorts from Hong Kong’s EEM Victoria valued at $45 million; Vinaland’s transfer of all shares in a housing development project to a Vietnamese partner, worth some $10.9 million. In an effort to be further development project, Chuong Duong JSC is also negotiating with a foreign partner to transfer its Goalen Land project in Thu Duc district, which has total estimated investment of VND880 billion ($42.7 million). Khang An Real Estate Investment JSC, meanwhile, is completing procedures to transfer its Tan Tao A residential project in Ho Chi Minh City. After taking over the Ha Thuan Hung Company to acquire the Phu Gia Hung apartment project in Ho Go Vap district, the Dat Xanh Real Estate Services Corporation has received a transfer from the Five-Star Group for a 20-hectare project in the Mekong Delta’s Long An province. (Source: http://news.vneconomy.vn/20110805104543528P0C4/changing-tack.htm) To weigh up the consequences of development more projects or to preserve capital investment in project executing, at a recent report, Van Phat Hung Corporation (major real estate company in market) said they would consider to transferring some of theirs projects in Ho Chi Minh City. Most recently, as information market updated in economy news, CapitaValue Homes, a subsidiary of Singaporean property developer CapitaLand, bought an apartment project from Khang Dien Sai Gon Real Estate Co via a joint venture agreement, in which CapitaValue Homes holds a 70 per cent stake. The $70-million project, in Binh Trung Dong ward in District 2, has 974 apartments targeting middle-income earners. (Source: http://news.vneconomy.vn/p0c4/real-estates.htm).Obtaining professional project management consultant’s role, to consult for the new owners to take over and continually manage the halfway/ unfinished project efficiently is very critical requirement for all project management consultants. The mission of project management team is not only limited in taking over and continue the project, but also they will facilitate the new investors to look the projects in every perspectives in order to give crucial and relevant amendments or adjustments to ensure the alignment of their expectations. |