The vast land fund
According to the annual report in 2023, as of December 31, 2023, Kinh Bac owned an industrial zone land fund of up to 6,610 ha, accounting for 5.09% of the total industrial park fund across the country. This is an impressive figure, helping Kinh Bac maintain the leading position in the industry. In addition, businesses also own 1,400 hectares of urban land in provinces and cities in all three regions of the North – Central – South and 117 hectares of land for the construction of a factory.
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The deal 1.5 billion USD with Trump Organization On September 25, 2024, Trump Organization and Hung Yen Hotel Service Joint Stock Company – a subsidiary of Kinh Bac – announced a US $ 1.5 billion cooperation project, including a 5 -star hotel, an international golf course , high -class residential area and many luxurious utilities. This is a big step of Vietnam in attracting foreign capital into the field of resort real estate. This deal marks Mr. Dang Thanh Tam, Chairman of KBC, when helping Vietnamese businesses cooperate with a global brand. The cooperation opens the opportunity to raise the high -end real estate market, while helping KBC diversify the portfolio in addition to the industrial park. |
More than 90% of KBC customers are large corporations from Japan, Taiwan, Korea, China and Hong Kong. Some typical businesses have chosen to invest in KBC’s industrial parks including: Canon, Foxconn, LG, Goertek, Luxshare – ICT, JA SOLAR, JUFENG, INGRASYS, … with strategic location, synchronous infrastructure system , KBC has affirmed strong attraction to foreign investors.
Chairman of the Board of Directors of KBC, Mr. Dang Thanh Tam, each wallet of the Group’s land fund is so vast that “birds fly broken wings”, demonstrating the potential of long -term growth of the business. At the 2023 Annual General Meeting of General Meeting, Deputy General Director of KBC, Mr. Pham Thuc Hieu, also said that with the existing land fund, businesses have enough potential to develop for at least the next 10 years.
Not only owning a large land fund, KBC also has remarkable achievements in the process of attracting FDI. In 2016, enterprises accounted for 12.06% of the country’s total registered FDI capital, with industrial parks such as Trang Due (Hai Phong), contributing to bringing Hai Phong leading to attract investment capital, while Quang Chau Industrial Park (North Industrial Giang) helps this province to reach the top 5 local most powerful FDI.
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| Trang Due 1 and Trang Due 2 Industrial Park of Kinh Bac are filled quickly |
In addition, KBC also developed strongly urban projects. Typically, in 2017, the first enterprise opened the sale of Phuc Ninh – Bac Ninh urban area project, launched a business bond listed on HSX and continued to expand its investment strategy.
Strong ‘expansion’ in the southern market
According to the report of Vietcombank Securities (VCBS), the remaining land zone land fund of KBC is expected to bring nearly 7,000 billion dong of revenue from the rental cash flow. In particular, the biggest highlight is the Trang Due 3 Industrial Park project in Dinh Vu – Cat Hai Economic Zone (Hai Phong).
In 2024, KBC completed the site clearance of 200 hectares in Trang Due 3 and ready to hand over immediately after being approved. The enterprise has signed a memorandum of understanding (Mou) for more than 100 hectares, of which LG Display is expected to rent 80 hectares with prices from 130 – 140 USD/m². Currently, KBC is completing the final legal procedures and expects to approve investment policy in 2025. According to VCBS forecast, revenue from the rental area in Trang Due 3 can reach 3,500. billion in 2025.
In addition to success in the North, KBC is focusing strongly in the South, especially in Ho Chi Minh City, Long An, Tien Giang, Hau Giang, Can Tho and Ba Ria – Vung Tau. With the outstanding development potential of the southern key economic region, KBC is seizing the opportunity to increase the land fund, attracting foreign investors and strengthening its position in the real estate industry.
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| Tan Phu Trung Industrial Park, important project of Kinh Bac in Ho Chi Minh City |
In particular, Tan Phu Trung Industrial Park with a total area of 542 ha, is one of the key industrial park projects of KBC in Ho Chi Minh City. This project has an advantage located right on Highway 22, the gateway connecting Ho Chi Minh City with Tay Ninh, Cambodia and the Southwest provinces. The commercial area of the project is 346.46 hectares, currently has 68.46% and 33.2 ha of land with compensation.
In 2023, Saigon Northwest Urban Development Joint Stock Company (SCD, a subsidiary of KBC) recorded revenue from 16.9 hectares of land in this industrial park. At the same time, SCD has also invested an additional 115.11 billion dong in upgrading infrastructure, leveling and water supply and drainage systems.
In Long An, KBC put a bold mark with a series of large industrial parks. These include Loc Giang Industrial Park with an area of 466 hectares, including 326.5 ha of commercial land. This is one of the largest industrial parks that KBC is deploying in the South, located in Duc Hoa district, Long An province, located near the Ho Chi Minh City – Trung Luong highway, helping to connect easily to easily. Ho Chi Minh City and major seaports such as Hiep Phuoc and Cat Lai port. Approved for investment policy in 2022, in 2023, SCD invested 47.17 billion VND to complete the 1/2000 plan, make compensation plans, arrange capital and prepare for infrastructure construction.
In Long An, there is also a 654 ha Tan Tap Industrial Park, with a commercial land of 460.97 ha by Long An Development Investment Joint Stock Company (LADIC) – an enterprise founded by KBC as a founding shareholder – as an investor. . In 2023, KBC invested VND 348.59 billion in this project. With the advantage near Soai Rap River, favorable connection to Long An International Port, Tan Tap Industrial Park is an ideal destination for businesses in the field of logistics, food processing, warehouses and supporting industries.
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| Loc Giang Industrial Park scale 466 hectares in Long An |
In addition, Nam Tan Tap Industrial Park has a total area of 244.74 ha, invested by Saigon Telecommunications Joint Stock Company (SGT) – a subsidiary of KBC – as an investor. This is one of the pilot projects developed under the model of green industrial park, designed in 3 stages: eco -industrial park – cleaner production links; Trung Hoa Carbon Industrial Park – minimize industrial emissions; Net Zero Carbon Industrial Park – using renewable energy, no emissions CO₂
Green Industrial Park in Long An is expected to attract investors in the Green industry, contributing to the implementation of Vietnam’s commitment to reduce emissions.
With a series of large projects in Ho Chi Minh City, Long An, Hai Phong, Tien Giang, Hau Giang, Can Tho and Ba Ria – Vung Tau, KBC is gradually affirming its position as the leading enterprise in the field of development Industrial Park in Vietnam.
The expansion in the southern region not only helps KBC increase the revenue from land lease, but also plays an important role in attracting FDI capital flows, taking advantage of opportunities from the policy “China +1” and Pick up the trend of ecological, logistics and processing industry.
With a huge land fund, synchronous infrastructure and sustainable development strategy, KBC is striving strongly, promising to become a leading ship in the Industrial Park Real Estate industry in Vietnam in the period of 2025 – 2030.
In 2024, KBC business ‘regret’, expected greatly in 2025
In 2024, revenue and profit of KBC simultaneously decreased sharply. In the fourth quarter of 2024, Kinh Bac achieved a turnover of 781.3 billion dong, slightly decreased compared to the same period last year, but the profit after tax was only 62 billion dong, down 61%. In 2024, the company recorded VND 2,775.8 billion in revenue (down 51%) and after tax of 459.9 billion dong (80%reduction). Meanwhile, the goal in 2024 is revenue of VND 9,000 billion and profit after tax of VND 4,000 billion, but KBC only completes 31% of revenue and 12% profit.
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| The revenue and profit of Kinh Bac ‘drew’ in 2024 with many reasons. Source: kinhtechungkhoan.vn data |
There are many reasons to pull back the business results of KBC, of which the main reason is the shortage of commercial land fund ready to hand over, affecting the progress of revenue recognition from signed contracts. Nam Son Hap Linh Industrial Park (300 hectares, Bac Ninh) has not yet completed the compensation, making the mainland area not eligible to hand over to customers. Besides, Trang Due 3 Industrial Park project (687 hectares, Hai Phong) – one of the key projects of Kinh Bac – has not been approved by the Government, although many large customers have expressed. Interest.
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According to the 2023 annual report, Kinh Bac (KBC) assesses the situation of FDI attraction is the most important factor affecting the business activities of the business. The fact that large corporations such as Apple, Intel, Nike, and ASICS transferred a part of activities to Vietnam to bring great opportunities to KBC in attracting foreign investors. However, KBC is also facing a significant challenge. Competition attracts FDI increasingly fierce as India and Indonesia have continuously launched an attractive policy to attract international corporations. Especially, from January 1, 2024, the minimum global tax policy is effective in Vietnam, making tax incentive measures no longer a strong competitive advantage as before. This can reduce Vietnam’s appeal to FDI enterprises in the short term. |
The financial situation of KBC is also under pressure. By the end of 2024, the total assets of the enterprise reached 44,765 billion dong, up 34% compared to the beginning of the year, but at the same time the liabilities also increased sharply 83%, to 24,084 billion dong. In particular, financial debt increased by 2.8 times, to more than 10,100 billion dong, accounting for 42% of total debt, with 967 billion dong of bonds. Another long -term payable – mainly the deposit customers – also increased sharply to 5,761 billion dong, 210 times higher than the beginning of the year, showing a part of potential revenue that could not be recorded immediately.
Although the 2024 business results are poorly positive, Kinh Bac still has great expectations in 2025 when many important projects can be approved and implemented. Rong Viet Securities (VDSC) forecasted the land of industrial park for rent in 2025 can reach 234 ha, increasing sharply by 368% compared to the estimated level of 2024. In particular, Trang Due 3 Industrial Park and Nam Son Industrial Park Hap Linh will play an important role in recovery of KBC’s revenue.
In addition to projects in the North, Kinh Bac also expanded to the South with industrial zones such as Loc Giang, Tan Tap, Nam Tan Tap (Long An) and Phuoc Vinh Dong (Hau Giang), helping to diversify revenue sources and reducing risk depends on a single area.
In fact, at the beginning of 2025, the good news came to Kinh Bac City when the Trang Due 3 Industrial Park project was signed by Deputy Prime Minister Tran Hong Ha on January 14, 2025, officially approved by the owner Truong investment. This is a project invested by Saigon – Hai Phong Industrial Park Joint Stock Company, of which KBC dominates nearly 90% of charter capital.
Trang Due 3 Industrial Park is considered an important project, which plays a decisive role for the growth momentum of Kinh Bac City in the next 3-5 years. With a scale of up to 652.73 ha, the total investment capital is over VND 8,094 billion, the project will be implemented in Truong Tho, Truong Thanh, An Tien and Bat Trang, An Lao district. The approval of Trang Due 3 not only creates a push for the business of Kinh Bac City but also helps businesses improve the capacity to attract investment in the industrial park ecosystem.
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| Perspective of Trang Due 3 Industrial Park, Project of Kinh Bac has just been approved by the Government |
Besides Trang Due 3, Trang Cat Service Urban Area (584.94ha) in Hai Phong of KBC was also signed by Deputy Prime Minister Tran Hong Ha to approve the investment policy on January 15, 2025. On January 22, the Deputy Prime Minister continued to sign Decision 211/QD-TTg approving the policy of investment in construction and business of Kim Thanh 2 Industrial Zone infrastructure (phase 1) in Hai Duong province, approval Investors are Hung Yen Investment and Development Group Joint Stock Company. This business is also a subsidiary of KBC. Earlier in early 2021, KBC contributed capital to establish this company, currently holding 94% of the capital.
Overall, in 2025, it will be the hinge year of Kinh Bac, when the business expects to be able to remove legal difficulties, accelerate the handover of land and attract stronger FDI capital. However, the risks from legal progress, financial pressure and fierce competition in the industry are still factors that investors need to monitor closely.
