Guide to the Districts in HCMC

Deutsches Haus is “the symbol of the strategic partnership and friendship between Vietnam and Germany.”

On the 1st of August 2017 Deutsches Haus, Southeast Asia’s most eco-friendly and well-constructed building, will open its doors on the corner of Le Duan and Le Van Huu in District 1, Ho Chi Minh City, right beside the InterContinental Asiana Saigon Hotel.

The 25-storey, 40,000 gross sq m building represents the union of the Vietnamese and German governments, showcasing modern German technology and acting as a model of sustainable design.

In 2011, Germany’s Federal Chancellor Dr. Angela Merkel and Vietnam’s Prime Minister Nguyen Tan Dung signed a declaration establishing the partnership between Germany and Vietnam, designed to strengthen the political, economic and cultural relations of the two countries.

For the past five years, Germany has been Vietnam’s biggest trade partner in the European Union, totaling a trade volume of US$8.92 billion in 2015 alone. The Deutsches Haus is to be the central platform for German and Central European companies doing business with Vietnamese and other ASEAN businesses, as well as the place to be for cultural exchange and relations.

The project aims to receive the USGBC LEED Platinum certification - the highest level of green certification possible. This will be the first building in Vietnam to receive LEED’s Platinum level, and is one of a few in Southeast Asia. LEED (Leadership in Energy and Environmental Design) is a globally recognised certification that ensures a building uses less water and energy, has reduced greenhouse gas emissions, pays particular attention to its construction material (and their effects on health and environment), and much more.

Examples of LEED Platinum certified buildings include the Phipps Conservatory and Botanical Gardens in Pittsburgh, U.S., which contain the world’s only Platinum certified greenhouse; the massive Taipei 101 building in Taiwan; Canada’s Manitoba Hydro Place, quoted by CBC News as one of "the most energy-efficient office towers in the world”; Kohinoor Hospital, Asia’s first LEED Platinum certified hospital; and other select stadiums, hospitals, office buildings, conservatories, universities, convention centers and homes around the world.

Currently, there are only a total of 40 green certified buildings in the country, based on two certifications: LEED, and LOTUS (a certification similar to LEED, but more attuned to Vietnam’s climate and conditions). The first building to garner a LEED certification in Vietnam was a manufacturing facility owned by Colgate-Palmolive. The Diamond Lotus is a LEED-certified condominium project that will have three connected apartment complexes covered in bamboo, to be built in the coming years.

The design of Deutsches Haus has been entrusted to world-renowned architect Meinhard von Gerkan, who has over 50 years of experience. Gerkan has designed Tegel Airport, Lingang New City, the National Museum of China, the Hanoi Museum, Hamburg Airport, both the National Assembly and the National Convention Center in Hanoi, and many others. The design he undertook for Deutsches Haus is meant to express Germany’s role as an industrial and technological leader in the form of sustainable architecture, as well as German-standard architecture abroad.

The building’s double façade will eliminate the heat of the sun while allowing a great deal of sunlight to pass through, minimizing artificial light usage while ensuring a comfortable interior. In addition, this “double skin” will reduce noise and provide superior thermal insulation.

This façade is unique in Vietnam and is to be a milestone for future developments. LED lights will be used throughout the building for brighter and more energy-efficient lighting; the building’s air will be cleaned through a superior hospital grade filtration system; personal comfort is pushed to the forefront with particular attention to localised temperature control, centralised dehumidification, shading and daylight control and integration of all non-life systems; rooftop solar panels will be able to power the building’s lobbies during normal business hours; and a thorough plan for the building’s water system includes rainwater harvesting, grey water flushing systems and the reuse of treated sewage for irrigation and cooling.

The city is certainly in need for a greener urban environment: according to numbeo.com, Ho Chi Minh City is ranked the ninth most polluted city globally. This is more than evident in the amount of noise and smog one encounters while cruising around the city by motorbike. Although initiatives are being taken by introducing electric buses and other green projects, until the population adapts more sustainable practices, greener buildings are a necessary beginning.

The building will feature premium office space; a residential living space on the top floors; the largest rooftop terrace in the city; a pool and a fitness center; a multi-functional conference, exhibition and event-space; a restaurant; public areas with workspaces; coffee shops; a mobile washing station for cars and motorbikes parked at one of the four basement parking levels; raised floors (functioning to hide wires and regulate room temperature); and a fully-featured lobby. The lobby will feature screens projecting weather, German and European news, the building’s environmental stats, and will include an air freshener system, German artwork, and architecturally congruent seating. The building will also be the new home for the German Consulate and other German and European institutions.

This is a serious undertaking in a city full of delimiting regulations and architectural mishaps. The building is an example for the entire country to follow - projects integrating some of its features have already began construction in Vietnam. The Deutsches Haus is to be an environmentally and culturally sound representation of the city’s international future - and it seems to have been entrusted to the right hands for the job.

Image source: flickr.com

Today, the demand for more sustainable design in HCMC is steadily getting off the ground. Charles Gallavardin of T3 Architecture Asia sat down with Citypassguide.com to give his perspective on green buildings in Vietnam. Charles and his wife started T3 Architecture in France in 2007, specialising in green architecture. When Charles arrived in Vietnam in 2011 to begin T3 Architecture Asia, the demand for green building was low, although interest was growing. We spoke with Charles to determine what changes were taking place to catalyse this newfound interest.

What is the definition of a green building for you?

It’s a building well integrated into the place it’s set up at. It should take the landscape into consideration - the shape of the building is quite important, to be protected from the sun and allow for natural ventilation. The idea is to avoid direct light in a hot tropical climate; that’s why we design overhangs or balconies, to take the facade away from the sun, so you keep your main walls in the shadows.

Secondly, you have to take care of the roof, and make sure there is a double ventilated roof to keep the air flow and make the top floor always cool. Then, ideally, you try to use green building materials, sourced not too far from where you are.

Why does Saigon need such type of construction?

Saigon is one of the more polluted cities in Asia now. There is a huge issue concerning air pollution. The demand of energy is getting higher than what can be produced. What we can see for many years is that Vietnam is mainly doing a “copy-paste” of buildings they saw in Western countries with full glass facades but they didn’t realise that the climate is totally different and that they have to create their own style to make their building more appropriate to the climate, to save energy, save costs and make the building more comfortable.

Do you think one of the main challenges to building green buildings in Vietnam has to do with people’s perception?

Yes. I think when you discuss this with most Vietnamese, of course they want more parks and more green areas. But in reality, in urban development in Vietnam, this is still considered a quantity issue. Which means they try to plant vegetation to increase the number of green area per square meter per inhabitant, but without having in mind that it’s better to have many small parks than having long green areas along the highway. It is the same story with green buildings: a green roof doesnæt make your building green.

Do you think one of the main concerns for people who don’t understand green buildings too well is the fear of additional costs?

I don’t think so, because finally we can do green buildings quite cheap, depending on the material you use. But the green principles are very basic and you can find it everywhere in the traditional architecture of Vietnam. Traditionally you have your long and narrow plot, with the shop facing the street, the house on the backside and a courtyard in the middle. The air ventilation is efficient and you have natural light in your house and your shop. The house is far from the street so it’s far from the noise. For 20-30 years, Vietnamese have lost their knowledge of how to create a green house, but recently some young Vietnamese architecture firms take traditional building materials and traditional Vietnamese architecture and incorporate it in a more modern sense to make the house more green.

So green houses are one issue, but can you tell us about the problem of green urban areas? Is this something that can happen in Vietnam?

Yes, it could. But what we can see in the development in Vietnam, it’s always private investors who wield the city, and their model is a Singaporean one, but with a lower budget and less knowledge. There are really few alternatives for high-rise buildings and private houses. So when you have a private house, the plot is usually very small, and you have very few green areas. And for high-rises, you need to build these by large streets if you follow regulations, so then you have very narrow green areas.

One solution would be to make the city very dense, with apartment blocks lower with some streets more narrow, but keeping some spaces open for parks and public gardens, like we have in Europe.

Is the government aware and sensitive about the need to do something about that?

Yes, they are. There are many discussions about this. But if you’re a private investor and you finance infrastructure, the government cannot complain too much about what you do. You try to optimize your plot as much as possible.

Is it possible to bring more awareness to private investors by showing them the financial reward in doing so?

Yes. In America and Europe, the government pushes green building by giving a loan or some advantage. The government in Vietnam doesn’t have a lot of money, so they’ve let the private investors do the development. But private investors’ awareness is going up because they see people want more green spaces, nice areas around their apartments, so it’s starting to change.

Is it feasible to build a green house or building using only locally sourced material?

Yes, it’s possible. There are many materials available; less than Western countries or Singapore, but enough to build something green. The prices are the time.

What about reusing old material. Is that something that happens in Vietnam?

Yes, a bit. For example, many architects reuse wooden shutters for part of the facade to use as ventilation. But not so much, since the quality of the construction is not so good and when you destroy a house there’s not much you can use.

Some years ago I met with an architect and he told me something that surprised me. He said that Vietnam is one of the best countries in the world for recycling. When a house is being dismantled, the Vietnamese will often take every brick and every cable, to try and reuse it for some other purpose. Is this true?

This is partially true. They reuse material by placing it on natural soil to make it not porous anymore, and then they pour cement over it to make a concrete slab. But then you have the problem that you don’t have enough natural soil then to absorb the water during rainy season, and it makes flooding a very important issue in the near future.

Energy consumption is growing, meaning the price has to go up, which means it makes sense to have more energy efficient practices and buildings, correct?

Yes, this happens in every city. When energy prices go up, green houses and buildings become more and more normal. Of course, for Vietnam, electricity cost is very low, even compared to the standard of life. One issue, even though it’s never easy for government to say that they have to increase electricity costs, especially for poor people, it’s a real way to make developers and private investors more concerned about energy savings.

In 10 years from now, what do you think the state of green buildings will be in Vietnam?

Green construction has been developing more and more, first in hospitality projects; you have international guests, so five or six years ago in the private sector and even residential projects, Vietnamese started to be more concerned about energy and cost savings, and the quality of the environment. Thanks to Vietnamese architects and small agencies, we can do something more.

Almost none of the existing high-rises in Ho Chi Minh City are really environmentally friendly. If the price of energy rises, most of these building will have to be rebuilt or adapt to the new demands. And you provide this service?

Yes, full renovation to adapt an existing building and make it less costly in terms of energy, and most important of all we make it more comfortable for people!

How big of a project is it for someone who wants to make their home more green?

Usually, you have to touch up the facade and main structure, so it’s a bit costly, but you don’t have to demolish all. It can be from some very simple like adding shutters, to touching up the roof at VND 3 million per sq m, up to VND 10 million per sq m to redo something very properly and almost reconstruct the house.

Is the wiring in Vietnam efficient?

In terms of fire hazards and electric shock, no. 

And LEDs?

There is a huge market for LEDs. They are replacing halogens with LEDs everywhere, more and more in residential projects. But before thinking about advanced technology and costly equipment - which is important also - the first thing is to try and hire a good designer when you are creating a building. And if the design is well done you are sure to have very low consumption. And of course you put some LEDs and solar panels. One of the problems in Vietnam and in developing countries in general is people don’t think of the basics. Once you do this, then you can think of the high-tech equipment and energy efficiency.

Are you a foreign investor and want to know about real estate laws in HCMC? Confused by the new Property Law? Indochina Legal clears up the confusion:

One of the most notable changes introduced by Vietnam’s new 2014 property law and its regulations is the revision of the right for overseas Vietnamese, foreign individuals and organisations to own residential houses, as follows:

Overseas Vietnamese (or Viet Kieus) can now own residential houses in the same way as Vietnamese citizens without further residency requirements or any limitations on the type or quantity of houses, or the terms of ownership. They must hold a valid passport with an entry verification stamp marked by the Vietnamese Immigration Department (VID) and a document evidencing their Vietnamese origin.

Foreign individuals have the right to own residential houses, subject to certain restrictions as compared to Vietnamese citizens and Viet Kieus. In order to own houses, a foreigner is required to have a valid passport with an entry verification stamp marked by the VID and cannot fall under diplomatic or consulate preferences and immunities. Requirements of residency, investment in Vietnam, work permit, social contribution and/or marriage to a local Vietnamese is not necessary for residential housing ownership. However, as to ownership duration, foreigners married to Vietnamese citizens or to Viet Kieus are entitled to an indefinite term, whereas foreigners who are not can only own residential housing for a period of 50 years. This can be extended for another 50 years, subject to approval by the provincial People’s Committee where the house is located. Unlike other foreigners, those who are married to Vietnamese citizens are also exempt from notifying the housing administration authority at the district level prior to leasing their houses to others. Apart from that, the new legal framework grants foreigners the same rights of Vietnamese in the cases of subleases, mortgages, etc. of residential housing.

Foreign organisations are allowed to own houses provided that (i) ownership term shall not exceed the period stated in their investment certificates issued by Vietnamese competent authorities, including any extensions; (ii) use of the houses is for residential purposes only, for their personnel; and (iii) lease-out of the houses is not permitted.

It is worth noting that foreign organisations and individuals shall not collectively own more than 30% of the total number of apartments in an apartment building or not more than 250 separate houses in an area where population is equivalent to that of a ward. In addition, house ownership beyond real estate projects (e.g. a villa built by individuals) is not allowed. For national defense and public security purposes, foreign individuals and organisations cannot own houses in certain areas. With respect to these limitations, the local Department of Construction will publish on their official website the projects where foreigners cannot own houses, detailed numbers of apartments or separate houses eligible for foreign ownership, and the number of houses where foreign ownership has been recorded. To our understanding, the database is not yet completely developed for all cities and provinces in Vietnam. Meanwhile, payment for purchase or lease of residential houses shall be made via credit institutions operated in Vietnam. So far there has been no specific instruction on foreign exchange control for relevant inbound and outbound foreign funding of residential housing.

Despite certain remaining limitations, the NHL has provided a more open approach to ownership of residential housing for foreigners. The hope is that these changes will ultimately defreeze the real estate market and create a new wave of foreign investment in Vietnam.

Website: www.indochinalegal.com

Vietnam’s new laws for foreigners, released in July 2015, have already had great impact on the local housing market in the country.

Particularly, investors from within the region are amongst the first ones to actively seek investment opportunities in the country. Savills Vietnam has seen great interest and real demand from foreign buyers based in Singapore and Hong Kong. To better understand the reasons for their aggressive moves it is important to look at the local housing market in these respective countries.

Property markets in Singapore and Hong Kong have been heating up over the last decade due to ever-increasing demand from local and foreign investors. While Singapore is a preferred investment destination for buyers from Malaysia, Indonesia and mainland China, the market in Hong Kong has seen tremendous investment from the latter.

“Property markets in Singapore and Hong Kong have been heating up over the last decade”

To react to the social problems caused by the price increases - such as lack of affordability for first-home buyers - governments in both destinations have put cooling measures in place. These are now showing effect with a considerable drop in transactions, and prices are expected to drop in both countries.

In Singapore and Hong Kong the governments reacted as early as 2009 with a variety of cooling measures, which included:

• Increase of Buyer’s Stamp Duty (BSD) for purchases of multiple properties of up to 15% in Singapore and 8.5% in Hong Kong respectively, particularly for non-resident foreigners and entities.
• Seller’s Stamp Duty (SSD) on resale of properties with short holding periods in Singapore for periods of less than one year, which was later increased to three years. And in Hong Kong from two to three years.
• Limits on loan-to-value for multiple unit purchases, meaning that buyers could not leverage purchases by using bank loans. Especially relative to foreign buyers or those who purchased multiple units.

These measures were specifically introduced to curb property investment and speculation - particularly by foreign investors - rather than preventing irsthome buyers from purchasing units. The effects are finally starting to show with transactions and prices decreasing in both markets, and talks of a property market crises making the rounds. More importantly, the yield potential in these markets has declined due to the additional purchasing costs.

Photo by: Tri Nguyen

Taking into consideration that Hong Kong and Singapore investors are amongst the most active in the region, Vietnam is seen as one of the most attractive destinations for property investment in Southeast Asia. With excellent yield potential and prices at a fraction of those in Hong Kong and Singapore, investors can purchase multiple units at the value of one property in their home markets.

“Vietnam is seen as one of the most attractive destinations for property investment in Southeast Asia”

Savills Vietnam was among the first real estate agencies to take advantage of this by creating an international sales department to actively promote Vietnam’s properties in these key markets; in collaboration with Savills regional offices.

“We have seen great interest of local developers to market their projects abroad, and have scheduled a series of sales events in Hong Kong and Singapore over the year 2016. Our offices in both countries are excited to promote Vietnam’s properties given that the easing of restrictions allows foreign investors to take advantage of low prices and excellent yields in comparison to their local markets,” says the head of International Residential Sales for Savills Vietnam. “Since inception of the department we’ve transacted nearly US$20 million in sales to foreigners without bringing projects abroad. We are confident that this number will increase dramatically over the coming months.”

The opening of the Vietnamese property market to foreign investors is expected to draw more foreign investment into Vietnam from private and institutional investors.

• What is Functional Beauty? Fong-Chan Paw Zeuthen from KAZE Interior Design Studio explains.

• Time for Gelato! KAZE Interior Design Studio goes on location.

• Collaboration makes it happen; KAZE’s style of brainstorming.

The word KAZE is Japanese for ‘wind’ it represents expansion, growth and freedom of movement. Danish architect Fong-Chan Paw Zeuthen chose this name for her boutique Vietnam based interior design studio when she launched it in 2009 as a reminder to never allow KAZE’s sense of style and knowledge stagnate. The goal of each KAZE designed projects is to have the same sense of movement, lightness, and power as a gust of wind.

KAZE interior design studio, has been going strong for more than 10 years and it is one of the top interior design studios in Vietnam. The firm has taken on more than 100 high-profile projects across Vietnam and Cambodia. Specialists in development in the fields of Hospitality and F&B, the KAZE team has transformed the style and spirit of major projects such as Le Meridien Cam Ranh Resort & Spa by Marriot, Liberty Central Saigon Citypoint in Ho Chi Minh City and DIAMOND ISLAND PENTHOUSE & VILLAS by Kusto.

KAZE Interior Design Studio’s Idea of Functional Beauty

Fong-Chan has an unwavering commitment to what she calls her “building for humans” philosophy. This means nothing goes into the space that will not be useful, comfortable, and aesthetically pleasing. It should be a usable space, not simply a pretty picture.

As Fong-Chan puts it, “you can tell a lot about how a person runs their company by the way the toilets are kept.” If management only cares about the aesthetics of a company and not the functionality something has gone wrong.

Far from the stark, harsh modernity that can be found in certain ill-designed spaces, KAZE Interior Design Studio’s projects are categorised by beauty, light, warmth and innovation.

But what happens between concept creation and the moment that someone walks into a fully realised KAZE designed space? City Pass Guide acts as interior designer for one day to learn more about the processes, inspirations and, at times, frustrations of being the leading interior design studio in Vietnam.

Mornings in the Beehive; KAZE Interior Design Studio Gets Ready to Get Creative

When someone walks into KAZE interior design studio in Saigon’s District 2 it is clear to see that the office is a hive of energy where anything and everything can instigate inspiration. Fong-Chan has created a unique environment that is the right balance of easy going and innovative. Interior design books stacked on shelves range from tomes about types of marble used in 15th century Italy to glossy coffee table books filled with new design trends. The volumes propped open suggest the team study hard and the single-use plastic free ethos provides an insight into the environmental focus of KAZE’s design projects.

The open plan office is fairly minimalistic in terms of design with a mix of dark wooden desks and large glass windows that let in lots of natural light. While the monochrome colour scheme enables the raw materials that are scattered around the office to pop.

Desks are covered with brightly coloured fabric samples, varying sizes of intricately detailed tiles and project sketches. It is mind-boggling to imagine how all these snippets of inspiration can possibly turn into a finished project. The different textures, colours, patterns, and shapes are the starting point for the designers to focus their ideas and start putting a design idea into actuality.

Individuality is the Key to Creativity

Each designer has a different style of working. A junior designer named Duong loves following new trends and finds ways to incorporate them into his work. Maria, a project designer is detail oriented. Part of her morning is typically spent researching ways to use historical styles while maintaining modernity. Other teams members contribute their individual senses of style and focus to create an environment that is always in “creation-mode”. KAZE is a boutique company of only 28-30 employees, this enables Fong-Chan to get to know her team on a personal level and get a sense of their likes, dislikes and work style.

When Fong-Chan walks into the office she immediately commands the room. Despite having a cute dog following her around, she is a no-nonsense woman. She knows what every single person in the office is working on and exactly what they will be doing next. Like any great mentor, Fong-Chan looks after her team and ensures to regularly spend time with each and every member, going through what they are working on the moment, challenges they are facing and provide guidance on how they can improve. She takes pride in teaching every single member individually and she will push and challenge them until they unlock their potential.

As we walk through the office and take time to speak to the team members, one thing is clear, Fong-Chan’s team finds her to be an inspired leader.

Diving into the Project’s; an Afternoon at KAZE Interior Design Studio

All of KAZE’s projects are created from a story, they are what gives a project meaning. These stories are inspired by the brief from the clients, the space and location of the project as well as real-world experiences the designers have had. Fong-Chan organises annual design trips for the team to experience new things around the world and find new inspiration. Some of their most recent trips include Bangkok, Taiwan, and Milan. Without these trips, designers find inspiration from pictures on a computer and can’t really understand the emotions certain places can evoke or how they can awaken new senses, for example, the sense of achievement earned from reaching a mountain peak or tasting real gelato in Italy for the first time.

Back in the interior design studio in Ho Chi Minh City, these experiences enable designers to create incredible projects together. In a small company like KAZE, the office feels like a symphony masterpiece, everyone is playing their own instrument but when put together it makes a beautiful finished product. In one corner, the junior designer is sketching out multiple designs to work out the best places for the lighting fixtures to create the right ambiance for the project. On the other side of the room, the project designer is using miniature furniture models to understand the way people would naturally enter a room and where they would want to sit down. Down the small hallway, a headphone clad designer is testing out the acoustics—he is listening to how the noise of ocean waves resonate against wooden walls versus concrete walls. The whole process is fascinating to watch and Fong-Chan is the perfect conductor.

Fong-Chan explains to us that KAZE has a “design language” and everyone needs to be able to speak it. This helps the KAZE team effectively communicate, brainstorm and develop ideas with each other as well as to understand all the ideas going on in Fong-Chan ’s head. For those who don’t speak the ‘language’ Fong-Chan spends her time managing their expectations, sometimes this can be with clients who don’t really know what they want and sometimes this can be with her own team who haven’t quite come to grips with their part of the project story.

Collaboration, Creation and Coffee in Saigon’s District 2

Every Tuesday and Thursday the KAZE team gather for a coffee break to socialise and discuss their ideas. Fong-Chan explains that there is a real buzz in the office during these meetings. Everyone suddenly goes from working quietly at their desks to talking loudly in groups, getting excited about project ideas and working out how their concepts can be developed. This collaborative effort helps to solve problems and generate new ideas.

KAZE’s Friday afternoon workshops are a fascinating way to experience the ins and outs of what happens during a design process. Each member picks a designer or design topic and delivers a presentation on it, detailing the history, inspiration, and work behind it. The workshops encourage the team to learn new things, try new ideas in their work and delve into a new world of design they may never have realised existed.

Hometime

Burning the midnight oil is not a strange concept at KAZE, although it may not quite be midnight, many of the team stay after hours to develop their design knowledge and experience to improve their work. They work hard to ensure their part of the project is just right. They all dedicated and strive for perfection. A passion for design is the beating heart of KAZE, as one of the top interior design studios in Vietnam, it is clear to see that only those who work hard and are passionate about their ideas achieve success in this demanding profession.

Image source: KAZE Interior Design Studio