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Houses in Ho Chi Minh City

  • 30 Colorful
    Unlike Hà Nội where most new houses have a very historicist decorative design, the new houses in Ho Chi Minh City (HCMC) are more modernist if not just utilitarian. And while the houses in Hà Nội are most often painted ochre or vermillion, there is a much greater use of other colors in HCMC. As in Hà Nội, most houses are "tube houses" in that they are very narrow but very long. Although I haven't confirmed this yet, it is said that these lots are narrow because property taxes are based on the width of the lot at the street line. In HCMC, I guess (without confirmation yet) that many of the new houses are designed by young architects trying out new ideas, and this is very good to see. This in contrast to the usual utilitarian modernist larger buildings in HCMC. These pictures can be viewed by clicking on the first or top picture in the album and then click "next" on each photo to proceed though the album in slide show fashion.
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14 October 2007

Retail stores come and go...

You may recognize where my banner photo above comes from -- the photo of this restaurant building off Phan Xích Long Street in the Phú Nhuận District of Hồ Chí Minh City was taken a year ago when the building was fairly new.
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The restaurant has now been closed (perhaps temporarily) and the second level has had its large openings blocked up with hollow-clay tile blocks (hopefully temporarily).
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I don't know if the infill was placed to keep out intruders for awhile until the building is rented again, or if the owner is preparing for a new tenant who wanted the openings blocked up.  This was one of my favorite modernist buildings in Saigon, so I will be coming by regularly to see how what the results of this renovation will be.

Neighborhoods in HCMC are not static at this time -- they are constantly changing.  You can walk along a lane one day, and then come back a couple of days later to find your favorite house demolished and a new house under construction.

10 October 2007

FPT's bandwidth limitations in Vietnam

Vietnam's economic growth is clearly outpacing its ability to get supporting infrastructure in place.  The increasing traffic jams are evidence of the lack of highways and the need for mass transit alternatives.  New housing developments and industrial parks are located out of the city along narrow country lanes that can't support the increased car and truck traffic.

Closer to home, the bandwidth available from our internet service provider, FPT, has been steadily decreasing over the past couple of months.   I notice that a few of my neighbors now have computers, and they have probably hooked onto the network.  As more and more neighbors buy computers and internet hookups, the service will continue to decline unless the service providers increase capacity.  FPT seems to be slow in doing so.

Kevin over at the blog SaigonNezumi.com just wrote about his frustrations at the the lack of bandwidth in the same neighborhood over the past couple of days.  I am thankful for his voice here because I was beginning to believe this was my problem.  We had called FPT for service, and they came over and were mystified why we clearly had a connection to the internet, but could not bring up a webpage.  They suggested that we needed to buy a new modem.  If they are having widespread bandwidth problems, and I assume their other customers call for service, wouldn't they have the smarts to figure out they had a problem and were honest with their customers about the problem and what FPT planned to do about it?  They either lack the smarts or are dishonest with their customers.  Neither reason speaks well of the future of this company in a country that is becoming increasingly sophisticated about good service.

22 January 2007

Back in Ho Chi Minh City

We are back in Viet Nam -- have been for 10 days now.  I am very happy to be back in HCMC, where I am much more relaxed.  It is not that I wasn't happy at home -- I was just itching to get back to Viet Nam and get my daily fix of intensive sensory stimulation.

San Francisco was cold as usual, and our hundred-year-old house is too drafty.  The cold goes to my bones.  In HCMC, I love the heat.  Actually it isn't that hot at this time in HCMC -- 80s every day instead of 90s, and a cooling breeze in the afternoon and evening.

I haven't been in the mood to contribute to the blog lately, though.  Although I am happy to be back in Viet Nam, I am unhappy about the slow pace of our real estate development business growth.  My three American partners came back to HCMC at the same time, and we have been very busy.  But the business is not yet paying off.

Real estate development to me is a form of gambling.  But I would prefer not to be gambling.  I am sure most developers would say that their skills and good judgments lift their activities beyond gambling.  But our American skills seem to have less impact here for us here in Viet Nam, and our judgments have seen mixed results.  Actually there haven't been any results.  We are back to square-one in appraising potential properties and uses at this time.

Everyday we seem to be dealt a new hand, even if the previous day's hand of cards has not yet been fully played out.  Some days the cards bring us what appears to be bright prospects -- the next day the hand of cards mysteriously changes and we lose.  Most of what we wager and lose is precious time.  It is a good thing we don't have any money to wager, or it might be much worse.  Our job at this point is to get other people to wager the money, or the land.  And that is where the cards constantly change.  Over time, we should hone our skills and knowledge of doing business in Viet Nam, but it is clear that we have a long ways to go to lift ourselves above the common playing table.

We do seem to have picked some better playing teammates at this time, though, so we hope we have increased our odds.  As soon as good results happen (achieving issuance of an investment license on a project), then I will let you know and try to pass on some of the lessons learned.  Of course, the investment license just increases the stakes and risks substantially.

Real gambling is actually our biggest problem is at this time.  There have been indications that the Vietnamese national government will eventually issue several gambling licenses to real estate developers aligned with gaming operators and land owners.  [No one actually owns land in Viet Nam -- one owns the right to use land].  No one seems to be able to agree on how many licenses will be issued, or when, or where.  Our prospective lenders and land owners for resort projects are wanting to chase the big prizes, so we have had to turn resort projects into larger casino projects.  This has diverted precious attention from less risky potential projects.  But the prizes for the winners are going to be substantial, so we have caught the gambling bug and are thoroughly addicted at this time.

On a more worthwhile note, it is good to see Virtual-Doug back in Hue and blogging daily with fresh insights and beautiful photographs.  He is here in Viet Nam for a month or so to visit his ailing friend (a friend indeed to many).

16 November 2006

Learning from others....

I have been a funk for the past month about the lack of progress in our Vietnam business.  Hence the lack of postings here.  But the break to this funk might just lie in writing some posts about business, which might help me to see a way through the morass we seem to find ourselves in.

It makes sense that other countries in Asia might offer a model for what is now happening in Viet Nam business.  Certainly, Viet Nam's neighbor, China, is undoubtedly the best model since it is also a Communist political system, has had tremendous influence on Vietnamese culture over the centuries, and is about 15 years ahead of Viet Nam in its development as an emerging industrial nation.

Therefore I have started reading a variety of blogs focused on China recently, and will try to draw some parallels to China and apply them to Viet Nam.

One of the blogs I have been reading every day is the China Law Blog, written by Dan Harris, an attorney from Seattle who travels extensively in Asia.  He posts two or three times daily on his blog, and the posts aren't just simple references to other internet items -- they are always very well researched and thoughtful with original analysis and thinking.  Judging from the time stamps on many of his posts, he must be one of those rare people who don't waste much time sleeping, which is probably a good trait to have when you are constantly traversing time zones.

In one of his posts today, he gets to the heart of my current angst here in Vietnam business -- the impossibility of participating fully in the business networks here (as in China).  Dan quotes the conventional wisdom, espoused in this case by Janet Carmosky of China Prospects, Inc., offering market research and network referrals to foreign businesses wanting to enter the Chinese market.  One of her business principles states that the key to dealing with China is to get into a network of connections, called Quanxi in China.

Dan counters that participating fully in the local business networks is impossible for foreigners to achieve.  He states that "I also think that Westerners who actually believe they are in a Chinese network are, almost without exception, operating under a potentially dangerous illusion."  Then quoting his attorney partner, Steve Dickenson, who has been involved in China for 30 years and lives there: "How can I compete with people who are from the same hometown, have the same uncle, went to the same high school, the same college, have the same culture?  I can't."

On the other hand, I understand Ms. Carmosky's point that you can use business connections to better acquire "the knowledge and skills needed to work effectively with Chinese organizations and individuals."  But we have learned that we have to guard our own identity and not become trapped by these connections.

My American business partner and I have been laboring under the assumption that we have been truly accepted by those in the network in which we have operating.  It has become painfully clear over the past weeks that this is not the case.  This has lead to much time wasted in many blind alleys and mazes of tangled relationships that kept us from our real goals.  I have come around to the conclusion that we just need to follow our own inclinations, watch out for and advocate our own interests, and work with as many different partners as we need to in order to further our own business goals.

We may retain our primary partnership with a local Vietnamese network, but we have learned that we cannot wait for them to hand us business, and we need to find our own business both within the partnership as well as outside the partnership.

11 August 2006

Business relationships

Our real estate development work has seriously impacted our time to write blog postings over the past couple of weeks.  When our U.S. business partners are in Viet Nam as they have been these days, there is a whirlwind of meetings and trips to view potential project sites.  A substantial amount of time is necessary here in Viet Nam to build and maintain relationships.  The hard part is figuring out who to select for a relationship, and can they perform as they say they can.  To some degree, connections to government officials here are very important to get to meet the right person who can increase the chances of a faster approval of projects.  I haven't come to grips yet with the amount of cronyism here on the part of government officials and local developers.  I am trying to formulate both a business position as well as a personal ethical position so we can remain in the game without compromising our integrity as American developers.  We want to survive based on the extra value we can provide.  I will try to let you know how this evolves over time.

21 July 2006

Is Viet Nam the next China?

A very thoughtful posting by Dan Harris, an attorney from Seattle practicing in China and other international venues, states that the next China is actually the interior of China itself.  What we usually think of as the developing China market is basically coastal China.  In his blog China Law Blog, he goes on to say that Viet Nam could be the next China someday.  After all, as he states, "Vietnam has the second fastest growing economy in Asia, second only to (guess who?) China."

I have only lived in Ho Chi Minh City now for six months.  This is not enough time to really understand business and the markets here.  This is a difficult country to find information about specific questions unless you understand how to read and speak Vietnamese.  [I will write more about my frustration about this in a future posting.]  This is also due to the ways of doing business through established relationships, which take time to build and require a high degree of confidentiality.  Therefore finding out about specific opportunities or business conditions is difficult unless you build a relationship with the connections that can find out for you.

The markets here are also somewhat contradictory at times.  There is supposedly a very soft real estate market here right now, but there are construction projects underway every 50 meters in every direction.  These projects range from small houses (thousands of them under construction) to high-rise condominium or apartment towers.  A third of my neighbors are construction contractors and workers.

So although it is difficult to find out the specifics of the markets, it is obvious that there is a lot going on here and there is a lot more to do.  However, the opportunities at this time for international companies are mixed.  There have been opportunities for years in trading and light manufacturing, and the industrial and high-tech parks are full of international firms manufacturing and trading products from all over the world.  On the other hand, the construction market has been very closed to international firms.  There are very few international design firms with offices here in HCMC.  And there are even fewer international construction contractors.  This may be due to lack of interest from international companies due to the fast pace of design and construction elsewhere.  Those foreign companies in this market here at this time are producing projects funded by their home countries.

There is definite excitement in the local press and business circles about the upcoming trade normalization with the USA and Viet Nam's entry into W.T.O.  And there are lots of joint venture business deals announced every day.  But the laws allowing 100%-foreign owned firms to do business in Viet Nam are becoming even more liberalized, and there is definite encouragement from all levels of government for foreign investment in Viet Nam.

I say that this is the right time to come to Viet Nam to participate in the ten-year boom that will bring Viet Nam to China's level of development today.  The foundation for this success is already in place with improving infrastructure and a very helpful government and law environment.  The companies that build relationships here over the next few months will be in on the ground floor.  Companies waiting to jump in will find themselves playing catch-up.