About the opportunities City Growth with Happy Faces Source from - - PowerPoint PPT Presentation

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About the opportunities City Growth with Happy Faces Source from - - PowerPoint PPT Presentation

AMCHAM Presentation (2019.09.04) Yat Sun Ng, AIA Deputy Chief Design Director Alpha King Real Estate Development Joint Stock Company A Developers perspective on the difficulties and benefits of developing in Vietnam covering legal


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Yat Sun Ng, AIA Deputy Chief Design Director

Alpha King Real Estate Development Joint Stock Company

AMCHAM Presentation (2019.09.04)

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“A Developer’s perspective on the difficulties and benefits of

developing in Vietnam covering legal issues with permitting and expanding new technology into new residential and commercial products.”

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D3

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Developing as a Developer in a Developing country

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Architect x Developer

Designer (11 years)

70s-90s 90s-03s 03s-18s 18s--??

Developer (11 years) Dreamer (?? years)

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D3

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About the opportunities

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City Growth with Happy Faces

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Source from CBRE

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Source from CBRE

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Source from CBRE

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On An Upward Trend

Source: CBRE Vietnam, Q1 2016.

Historical Price and Rental Performance – District 1, District 2, District 7

20 40 60 80 100 120 140 160 180 200 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 Index D1 Luxury Condominiums - Primary Price Index D2 High-end Condominiums - Primary Price Index D7 High-end Condominiums - Primary Price Index D1 Buy-to-let Apartments - Rental Index

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About the land

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Source from CBRE

Ho Chi Minh City, 1990s

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HCMC 2019

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Source from CBRE

Shanghai, 1990

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Source from CBRE

Shanghai, 2019

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Line 1 Line 2 Line 5

Scale 2 km 2 mi

2 Thu Duc Go Vap 12 Tan Phu Tan Binh Binh Thanh Phu Nhuan Binh Tan 8 6 11 10 5 3 1 4 7 Nha Be Binh Chanh Cu Chi 4 Ben Thanh Market

III

New-Tier 1 area

II I

Core CBD Undeveloped

IV

Districts

Freeway system Subway line no.2 Subway line no.3 Subway line no.1 Around 110,000 foreigners living in HCMC according to the records from the police department

New-Tier 2 area

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About the development process

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People’s Committee

Department of Planning and Architecture (DPA) Department of Construction (DOC) Department of Natural Resource and Environment (DONRE) Department of Transportation (DOT)

Other Departments

Commit itte tee e of Archit itec ecture e and Plan anni ning ng Counci cil (CAPC) Ministry of Construction (MOC) Ministry of Transportation (MOT)

Vietnam Government Structure for Design Submission

State te level el City y level el Fire fighting Police/ Dept (FP)

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PACKAGE PREPARED BY APPROVED BY Detail Master Plan 1/2000 Architects, infrastructure consultant PC; DPA (peoples Committee; Department of Planning) Architectural Master Plan Approval 1/500 (General Layout Plan, GLP) Architects Office/ DPA Basic Design (Schematic Design) Architects, MEP , Structure Department/ Ministry of Construction depending on project scale (DOC/ MOC) Technical Design (Design development/ Construction Design) Architects, MEP , Structure Department/ Ministry of Construction depending on project scale (DOC/ MOC) Construction permit (Building Permit) Architects, MEP , Structure Department/ Ministry of Construction depending on project scale (DOC/MOC)

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PACKAGE PREPARED BY APPROVED BY Environmental Impact Assessment (EIA) EIA Consultant Department of Resources and Environment Technical Infrastructure connection MEP Relevant authorized companies and departments Transportation connection MEP Consultant Traffic consultant Office/ Department of transportation (DOT) Fire Fighting Documentation (FFD) Fire fighting and MEP consultant and Architects Fire fighting police

  • ffice/Department (FP)

Notes: These submissions are typically required for Basic Design Submission however depending on the projects and the local authorities the EIA can be submitted after Basic Design but before Technical Design. The Fire Approval can also be split into 2 stage submissions. A simpler package for Basic Design and the full Fire Package for Technical Design.

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Permit rmit submiss issio ion n stage e 1 ( (master er planning ning)

T echn hnic ical Dept Submi missi ssion

  • n

Prio ior to Basic ic Design n Submi missi ssion

  • n

Traffic Connection Aviation

(Building Height) Utility Connection (eg: Water Supply, Power Supply, Sewage Discharge )

Environment Impact Assessment (EIA)

Fire Fighting Approval

Committee of Architecture & Planning Council, HCMC (CAPC) Dept of Transp spor

  • rtat

ation ion (DOT) T) Aviat ation ion Dept Respectiv ive Govern rnme ment Controlle

  • lled Utility

ity Compan anie ies HCM DONRE Fire Fighting & Prevention

  • n

Police ce (Hanoi)

  • i)

Master Plan 1:500 (GLP) Detail Master Plan 1:2000

To Technical Dept for Preliminary Approval; for iconic project might need to add competition stage

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Permit rmit submiss issio ion n stage e 2 & & 3 ( (Basic sic/ T echnical chnical Design ign & C & Construct tructio ion n Perm rmit) it)

Technical Design Approval

Basic Design Audit by Approved 3rd Party Checker

Construction Permit

MOC (> 20 Storey or 28m) –

need approval in Hanoi

DOC (< 20 Storey or 28m) –

Local approval only

1) Internal Inspection/ As Built

2) Fire Fighting Submission & Inspection

3) STP Submission & Inspection

Building Operation Permit

1) MOC / DOC Approved 3rd Party Checker 2) HCM Fire Fighting & Prevention Police 3) HCM Natural Resources & Environment Dep (DONRE)

DOC

Pink Book (Buyer’s Ownership Certificate) Basic Design Approval

Technical Design Audit by Approved 3rd Party Checker

MOC (> 20 Storey or 28m) – need approval in Hanoi DOC (< 20 Storey or 28m) – Local approval only

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Land d Acquisi uisition tion stage e checkpoint eckpoints s (T (Technic chnical) al)

Potential ial Land for r purchase se Acquire e LURC – Land use right certificat ificate

Business registration, investment company set up, FDI, legal procedures need to be ready prior to development/ investment license to be submitted and approved by authorities.

Contain ain lot t coordin inat ates es; ; lot t outlin tlines es; ; sizes; ; redlin lines (not t setbacks ks- e.g. . road ad/ traff affic ic route te area ea which ich cannot t be occupy y even with thin in the proper erty lines) ) ; might t also conta tain in heig ight, , covera erage e requir uirem ements ents..et ..etc

Acquire Basic c parame meters s of the site from m DPA- legal l (Depar artme ment of Plannin ing and Archite itect cture) e)

Upon proven ven the e owner ership ip of the e lan and, , land owner er can submit mit lett tter er to DPA to request t for deta tail il site e develop elopmen ment t paramet meter ers Majo jor chan anges es request in violation of the approved development parameters NO chan anges es in violation of the approved development parameters

Due Diligence gence --

  • - CRITIC

ICAL L CHECK POTENTIAL ENTIAL RISKS S includin uding g the previous ious approved

  • ved histori
  • ries

es of t the site, e,

  • wnersh

ship ip verif ific icat ation

  • n issue,

e, banki king g finance nce or previous ious debt issues es, , existin ing g local al residents dents relocati cation

  • n issues,

es, infras astruc uctur ure e ownership…

Proceed to 1/500 Master Plan

  • GLP submission (general

layout plan) Proceed to 1/2000 Master Plan – VERY LONG PROCESS TIME , risk for non-approval

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MASTER PLAN 1:2000 Adjustments to Approved Master Plan 1:500 Adjustment to Approved Master Plan 1:500 APPLIED BY (PRIVATE DEVELOPER #1) 23 Nov 2000

30 Sep 2011

11 Apr 2016

APPROVED BY PEOPLE’S COMMITTEE OF DISTRICT 2 APPROVED BY PEOPLE’S COMMITTEE OF DISTRICT 2 13 Aug 2001 MASTER PLAN 1:500 APPROVED BY HCMC’S CHIEF ARCHITECT 07 Sep 2001 GENERAL MASTER PLAN APPROVED BY HCM CITY PEOPLE’S COMMITTEE 07 Dec 1998 Adjustment to Approved Master Plan 1:2000 26 Sep 2013 APPROVED BY HCM CITY PEOPLE’S COMMITTEE Approval for adjustments on number

  • f units, population and planning

parameters of Plot A 5 Oct 2015 APPROVED BY HCM CITY PEOPLE’S COMMITTEE APPROVED BY HCMC’S CHIEF ARCHITECT

Difficulties ----- Time control Sample project – SUBMISSION HISTORY

APPLIED BY (PRIVATE DEVELOPER #1) APPLIED BY (PRIVATE DEVELOPER #1) APPLIED BY (PRIVATE) DEVELOPER #2

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Challenges of developing in Vietnam

  • 1. Land Issues (due diligences)
  • 2. Political / jurisdictions issues (submission)
  • 3. Time control (approvals)
  • 4. Financial consideration (IIR, financing sources, legal)
  • 5. Construction management (local labor conditions)
  • 6. Facility management and customer services (brand development)
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About the technologies and the future

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THE OPPORTUNITIES ARE REWARDING

What opportunities does HCMC have?

Intelligent transportation

Reducing traffic fuels economic growth

Updated infrastructure

Leverage existing infrastructure to create smart cities

Healthier citizens

E-healthcare reduces operating costs by 30% and labor costs by 25%

Technology in schools

E-learning can reach more students, reduce costs, and grow graduation rates from 55 - 78%.

Energy management

Reduce energy consumption in buildings by up to 30%

Increased safety

Crimes are down as much as 70% since 1981 in G7 countries.

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Technology: Building Information Modeling (BIM)

Planning Kế hoạch Concept Ý tưởng Detailed Design Thiết kế chi tiết Analysis Phân tích Construction Drawing Bản vẽ thi công Fabrication Chế tạo 4D/5D Simulation Mô phỏng 4D/5D Construction / Logistic Xây dựng/ Hậu cần Operation Vận hành Demolish Tháo dỡ Re- decoration Tái thiết kế

BIM

✓Transparency

Minh bạch

✓Efficiency

Hiệu quả

✓Visualization

Dễ hình dung

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Engineering Excellence

ALPHA CITY

Visual Intrusion Traffic Analysis Operation Simulation

Alpha City Projects have been awarded as BIM Pilot Projects by Ministry of Construction

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Big office floor plate available in CBD – ~ 2,000 sqm Highest ceiling in town – 3m clear height Executive toilet with shower every floor Iconic façade Rooftop garden: Zen garden,

  • utdoor training, BBQ, etc.

Integrated development with Alpha city in walk-in distance Shopping mall with communal space The only LEED Gold Grade A developed by foreign developer in CBD (2018-2020)

Efficient workspace Life style amenities Prestigious address Smart features/ Sustainability

Visitor management system Face recognition turnstile

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SLIDE 37 Disclaimer: All images or illustrations used throughout this presentation are for representational purpose only. These properties belong to their respective owners. Whilst every care has been taken to ensure accuracy in the preparation of information contained herein, no warranties whatsoever are given or legal representations provided in respect thereon. The Developer reserves the right to modify information of the development or any part thereof. information of the development or any part thereof.

Anti-theft system Smart AC Auto lighting Smart Lock Smart curtain Block 95% of UV and heat gain from

  • utside

Provide max daylight Safe and acoustic proof

Energy saving triple low-E glass Smart Home system

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Easy entry Smart elevators Automatic coffee

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Indoor navigation Campus Notifications Desk finder

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Smart lockers App based booking Smart waiting list

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Smart Lifestyle

Air Purifier Lighting Air-con Lock Scent Fire Protection Lift Parking

E-commerce E-payment

APPs

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Smart Buildings Capabilities Map

Fault Detection & Diagnosis Predictive Maintenance Monitoring & Control Building Automation Equipment Lifecycle Management Energy Management Water Management Predictive Energy Waste Management Voice & Data Connectivity Video Surveillance Access Control Fire Protection & Alarm Physical Intrusion Detection Thermostat Accessibility Air Conditioner Conferencing & Telepresence Virtual Concierge Lighting Meeting JumpStart Flexible Workspace Digital Security Place & People Finder Direction & Navigation Presence services Ambient Intelligence Physical Document Services Shipping & Receiving Smart Lobby Catering & Vending Transportation

Equipment Management Building Services Management Safety & Security Well Being Digital Productivity (Workplace 2.0) Physical Workplace Services

Vehicle Parking Motorized Blinder Motion Sensor Water Leakage

Building Information Model Infrastructure

In-time Concierge

Big Date + APP

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Building Information Model (Design & Construction info, Asset info) Infrastructure (Network, Server, ELV devices…) APP + Big Date E-commerce

Work order Asset Booking Statistical Community Property Management System (PMS) Utility … Equipment status Emergency alarm Access Energy Spec & manual Security Building Management System (BMS) … Tenant Leasing Customer & Loyalty Customer Relationship Management (CRM) Statistical, Financial Promotion/Event Community Service …

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Property Management System

Asset Management Work order Inventory (spare part) Space Management

APP

Receive AKR/FM Announcement Report facility problems Schedule Service (maintenance, booking area) Payment in the retail Booking F&B from AKR’s building, WMC’s restaurant, etc. Benefit & Promotion Upload their merchandise / service on

  • nline shop

Retail Guide

CRM

All AKR, WMC Restaurant management All AKR activities Membership

Retail Tenant Management

E-Pay

Bank Info Payment

Building Management System

Monitoring the building status For tenant only

Vendor

Receive Payment Receive AKR/FM Announcement

Front End Back End External

Spec of the equipment

Customer Management

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Property Management System

Asset Management Work order Inventory (spare part) Space Management

APP

Smart Building Control (lift, parking…) Receive AKR/FM Announcement Report facility problems Schedule Service (maintenance, booking area) Payment (utility, service…) Booking F&B from AKR’s building, WMC’s restaurant, etc. Benefit & Promotion

CRM

User Info / office tenant info All AKR, WMC Restaurant management All AKR activities Membership Retail Tenant Management

E-Pay

Bank Info Payment

Building Management System

Monitoring the building status Spec of the equipment

For Admin only

Vendor

Receive Payment Receive AKR/FM Announcement

Front End Back End External

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Property Management System

Asset Management Work order Inventory (spare part) Space Management

APP

Smart Building Control in his apartment Receive AKR/FM Announcement Report facility problems Schedule Service (maintenance, booking area) Payment (utility, service…) Booking F&B from AKR’s building, WMC’s restaurant, etc. Benefit & Promotion

CRM

All AKR, WMC Restaurant management All AKR activities Membership Retail Tenant Management

E-Pay

Bank Info Payment

Building Management System

Monitoring the building status Spec of the equipment

Vendor

Receive Payment Receive AKR/FM Announcement

Front End Back End External

Customer Management

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Duties

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