E - PAPER

CURRENT MONTH

LAST MONTH

VIEW ALL
  • HOME
  • NEWS ROOM
  • COVER STORY
  • INTERVIEWS
  • DRAWING BOARD
  • PROJECT WATCH
  • SPOTLIGHT
  • BUILDING BLOCKS
  • BRAND SYNC
  • VIDEOS
  • HAPPENINGS
  • E-MAGAZINE
  • EVENTS
search
  1. Home
  2. INTERNATIONAL

Vietnam’s Industrial Property Becomes a Promising Segment

Vietnam’s Industrial Property Becomes a Promising Segment

BY Realty Plus
Published - Tuesday, 07 Feb, 2023
Vietnam’s Industrial Property Becomes a Promising Segment

The demand for Vietnam’s Industrial Property (IP) land rentals will sharply grow in 2023 thanks to policies promoting a return to investing in the Southeast Asian country. A recent report on the industrial real estate industry of VNDIRECT Securities predicted that by 2023, the net profit of listed IP developers is expected to grow by around 12% year-on-year.

“We see more challenges for IP developers in the next two years due to the slow project approval process and limited funding sources. However, this is likely to turn into opportunities for developers that own ready-to-lease land banks, such as Becamex IDC Corporation (BCM),” the report noted.

“We believe that developers with a portfolio of land will benefit the most from this trend. In this sense, we like Phuoc Hoa Rubber Company (PHR) and BCM for long-term investments,” the report said. PHR will book a one-off gain in the first quarter of 2023, with about VND207 billion (US$8.8 million), making a huge contribution to its net profit. BCM is one of the major IP developers, with six operating IPs spanning more than 4,000ha, and the largest listed IP developer in terms of the leasable land bank (about 944ha).

According to SSI Securities Corporation, demand for industrial park land rental in Vietnam will grow strongly in 2023, thanks to policies promoting a return to investing in the Southeast Asian country.  Due to short supply this year, forecasts from securities firms show that rental prices are expected to continue to rise. According to the SSI Securities Corporation's report, rents would rise by an average of 8-20% year-on-year, depending on the region. Last year, industrial real estate rents rose by an average of 10% due to high demand. The industrial property market will witness a scarcity of new supplies. 

According to the VNDIRECT Securities' report on the industrial real estate industry, last year, the pre-tax profit of Viglacera, from IP leasing and worker housing was estimated at VND1.6 trillion ($68.2 million), exceeding 33% of the annual plan and increasing 57% compared to 2021. In 2022, industrial real estate accounted for more than 70% of its total consolidated pre-tax profit.

Viglacera's main business line is construction materials, but in recent years, real estate has been the main contributor to the company’s profit growth, the securities firm said. The construction materials company planned to develop 10 new IPs in the 2022-2023 period. By 2025, it will increase the total number of IPs to 20, of which new IPs would have a total area of about 2,000-3,000ha.

Similarly, Kinh Bac City Development Holding Corporation (KBC) also revealed impressive business results in 2022. Recently, this company reported that it received cash dividends from its subsidiary - Saigon - Haiphong Industrial Park Joint Stock Company (SHP), with a payout ratio of up to 330%. SHP specializes in building and leasing IPs with modern and comprehensive infrastructure, leasing, and buying factories and offices, business industrial park services, and housing development.

The amount of dividends that KBC received is estimated at nearly VND12 trillion, helping the corporation to have the new cash flow to build more industrial zones in the future.

According to the Ministry of Planning and Investment, there were 563 IPs across the country, of which 397 industrial zones (including 352 IPs outside economic zones, another 37 in coastal economic zones, and eight in border economic zones) with a total land area of 122,900ha. As many as 292 IPs are operational with a total land area of 87,100ha.

RELATED STORY VIEW MORE

World Leaders Reaction to India – Pakistan War
Who is Robert Prevost, First American Pope
Queen Elizabeth II Memorial Design Proposals Revealed

TOP STORY VIEW MORE

HC Relief to WTCA on Trademark Row

WTCA expressed gratification for the High Court of Delhi recognizing that the Bhalla Group of Companies was continuing to infringe on its world-famous brands.

09 May, 2025

Beyond Chatbots: Changing Real Estate Customer Conversations

09 May, 2025

Instant, Legal Access to U.S. Property Equity Market for Indian Investors

09 May, 2025

NEWS LETTER

Subscribe for our news letter


E - PAPER


  • CURRENT MONTH

  • LAST MONTH

Subscribe To Realty+ online




Get connected with us on social networks!
ABOUT REALTY+

Started in 2004, Realty+, an exchange4media group publication is one of the most respected real estate magazines in India with offices in Delhi, Mumbai and Bengaluru.

Useful links

HOME

NEWS ROOM

COVER STORY

INTERVIEWS

DRAWING BOARD

PROJECT WATCH

SPOTLIGHT

BUILDING BLOCKS

BRAND SYNC

VIDEOS

HAPPENINGS

E-MAGAZINE

EVENTS

OTHER LINKS

TERMS AND CONDITIONS

PRIVACY-POLICY

COOKIE-POLICY

GDPR-COMPLIANCE

SITE MAP

REFUND POLICY

Contact

Mediasset Holdings 3'rd Floor, D-40, Sector-2, Noida (Uttar Pradesh), Pincode - 201301

tripti@exchange4media.com
realtyplus@exchange4media.com

+91 98200 10226


Copyright © 2024 Mediasset Holdings.
Rental Mobil bandung,Sewa Mobil Bandung, Rental bandung, Sewa Mobil, Jual Mesin Antrian, Harga Mesin Antrian, Mesin Antrian Murah, Jual KIOSK,Mesin Antri, Berita Terkini, Info Bray,Info Tempat Wisata,Portal Berita,Jasa Website