The business results of enterprises in the real estate group of industrial zones (IZs) are still highly appreciated in 2021, but the advantage belongs to enterprises whose projects have completed legal procedures and are ready for business. rent when demand is high and rents increase.
The giant in the industrial park sector is Idico Corporation (IDC) , according to BSC Securities Company, with a land bank of 880 hectares in Dong Nai, Ba Ria Vung Tau, Long An, Bac Ninh, Thai Binh… guaranteed to increase long-term growth. In which, the current focus project is Huu Thach Industrial Park in Long An with an area of 362 hectares with an investment of VND 5,253 billion with the exploitation period from 2017-206.
IDC has a total of 3,702.5 billion VND in construction in progress, of which up to 2,322.1 billion VND is invested in Huu Thanh and 197.1 billion VND in residential area, housing for workers in Huu Thanh industrial park.
In addition, as of December 31, 2020, IDC also has VND 6,140.5 billion in long-term unrealized revenue. With the recognition for 50 years, the enterprise will have a stable source of profit recognition in the future.
Long Hau Joint Stock Company (LHG) in 2020 achieved a profit of 199 billion dong, an increase of 40% compared to 2019. To maintain this profit growth this year, LHG is promoting leasing industrial park area. Long Hau 3 Industrial Park (LHG) in Long An with a clean land bank of more than 100 hectares.
At the Extraordinary General Meeting of Shareholders (AGM) held at the end of 2020, the Company’s management said that as of September 30, 2020, the compensation and clearance work for phase 1 of the LH3 project had been completed. reached 103.15 hectares, equivalent to 83.19% of the total 123.98 hectares of phase 1. By the end of 2020, the project has signed a contract to lease land area of 10 hectares, with the price of 220 USD/m2/lease cycle, up from $160/m2/lease cycle of the same period in 2019.
As of December 31, 2020, LHG is recording VND 678.9 billion of investment in the construction of Long Hau industrial park. If the recognition is favorable, the business is expected to continue to grow strongly in 2021 because of the recognition of one-time rental revenue.
Besides LH3, LHG is planning to participate in the implementation of An Dinh Industrial Park project in Vinh Long with an estimated area of 200 hectares, of which 147 hectares are factory and factory land. If implemented, this will be the first project after LH3 to help maintain room for growth in business results in the coming years.
Binh Duong Minerals and Construction Joint Stock Company (KSB) owns Dat Cuoc Industrial Park (Bac Tan Uyen District – Binh Duong) with a total area under the approved planning up to 553 ha. After filling for lease more than 300 hectares of area of phase 1, the company is continuing to conduct compensation, site clearance and infrastructure construction for lease with more than 200 hectares of phase 2 area with total capital. investment for compensation and infrastructure construction, wastewater treatment is about 976.3 billion VND.
Belonging to the Vietnam Rubber Group, many member units are also promoting or orienting to convert the rubber land fund to developing industrial real estate to take advantage of the geographical location located in the provinces where the rubber land is located. high demand for industrial park land, good transport infrastructure connection, large land bank that can be quickly converted and handed over with low cost of site clearance.
Phuoc Hoa Rubber Joint Stock Company (PHR) , from 2020 to 2025, will convert about 5,600 hectares of the total 15,000 hectares of rubber land under management to build five industrial parks, including about 4,000 hectares of self-developed industrial land and 1,600ha of land transferred to other industrial park investors.
For self-development projects, PHR is implementing a project to expand the area of Tan Binh Industrial Park to 1,055ha with 740ha of leasable area. The project is under master planning and is expected to be approved by the Prime Minister soon in 2021. Besides, the company is also completing the procedures to submit to Binh Duong Province for the establishment of 2 new Industrial Parks. – Urban – Service is Hoi Nghia (715 ha) and Binh My (1,002 ha)
As for the transferred land area, after converting 346 hectares of land to NTC in 2020, PHR is also planning to soon transfer 691 hectares of land to build VSIP III Industrial Park in 2021 after this project has been acquired. decision to invest in industrial zones, it is estimated that the transfer can collect nearly 900 billion VND in land compensation.
Many other enterprises of the Rubber Group are also conducting new investment projects, expanding the area of industrial zones such as SIP with Phuoc Dong Industrial Park project phase 3 with a total area of 933 hectares, Hoa Binh Rubber Joint Stock Company (HRC) ) with a plan to convert 2,000 hectares of rubber land into an Industrial – Service – Resettlement Park in Ba Ria-Vung Tau or NTC will promote investment in the Nam Tan Uyen 3 project with an area of 346ha after receiving the table. land allocation from PHR.
In the group of industrial park enterprises belonging to Sonadezi Corporation, Sonadezi Chau Duc Joint Stock Company (SZC) is also being highly appreciated for its growth potential when it owns Chau Duc Industrial Park and Urban Area in Ba Ria – Vung Tau, in which Industrial Parks are located. Chau Duc has a planned area of up to 1,556.14 hectares with more than 1,000 hectares of leasable area but the occupancy rate is still low. SZC’s accumulated leasable area data by the end of 2019 is 394 ha of industrial park land and 5,600 m2 of ready-built factories while the total available land area for lease is up to 640 ha that have been cleared and built. compensate.
Entering 2021, the growth prospects of enterprises in the industry are considered to be still very bright when Vietnam is having many favorable factors to support the group of industrial real estate stocks, including the is forecasted to recover well, promoting investment and production activities and the wave of production shifting of some large corporations to Vietnam such as Microsoft, Google, Panasonic, Sharp, Foxconn… is taking place.
While the demand is high, the supply of land has not been able to expand quickly because the industrial park is an area under strict management of the government, industrial park enterprises face many difficulties and take time to meet the legal requirements management, leading to limited land available for tenants, so rental prices are forecasted to continue to increase.
Chau Cao
By Business and Marketing