Industrial Investment and Development Corporation (Becamex IDC, stock code BCM) announced that its net profit in the first quarter of 2024 increased by 60% over the same period. It is worth noting that Becamex IDC still has more than 600 hectares of land available for lease.

Becamex IDC is currently the largest industrial park developer in Binh Duong province.

According to the newly released consolidated financial report for the first quarter of 2024, Becamex IDC recorded net revenue of 812 billion VND, a slight increase of 3% over the same period last year. Of which, the real estate business segment contributed up to 450 billion VND to total revenue.

The cost of goods sold of this industrial park developer decreased sharply by 38%, helping Becamex IDC’s gross profit margin in the first quarter of 2024 reach 71%, compared to 51% in the same period in 2023.

After deducting expenses incurred in business activities, Becamex IDC reported a profit after tax of 119 billion VND, an increase of 60% over the same period last year. At the same time, this company’s business cash flow also improved strongly, reaching a positive level of VND 876 billion in the first quarter of 2024, compared to a negative level of VND 1,238 billion in the first quarter of 2023.

List of industrial parks currently directly managed and operated by Becamex IDC. (Source: Becamex IDC)

According to the 2023 annual report, Becamex IDC is directly managing 06 industrial parks with a total area of more than 3,577 hectares. Therefore, Becamex IDC is the leading industrial park development enterprise in Binh Duong with more than 30% market share at the provincial level and about 3.6% market share nationwide.

In addition, Becamex IDC also participated in a joint venture with a Singaporean enterprise to establish the Vietnam-Singapore Industrial Park Joint Venture Company (VSIP, with Becamex IDC owning 49% of the capital). VSIP is one of the leading integrated industrial and urban park developers in Vietnam, including 12 projects nationwide with a total area of more than 10,000 hectares.

For industrial park projects that Becamex IDC directly manages, the average occupancy rate has reached over 80%. Among them, My Phuoc 2 Industrial Park has an occupancy rate of up to 96%. Preliminary estimates show that Becamex IDC currently has about 628 hectares of industrial park land available for lease.

Trading volume and price trend of Becamex IDC’s BCM shares from the beginning of 2023 to present. (Source: TradingView)

Becamex IDC has announced that, to create an industrial park land fund for rent in the next phase, the Corporation is focusing on investing in the Cay Truong Industrial Park project, Binh Duong province. This project has a planned area of up to 700 hectares, with an investment capital of nearly 4,000 billion VND, and has been approved by the government as a strategic project.

During the period from 2024 to 2025, in addition to leasing the remaining areas, the Corporation will focus on attracting large corporations to the expanded Bau Bang Industrial Park (with the remaining business area of nearly 400 acres). hectares), located next to the existing Bau Bang Industrial Park, with convenient traffic connections.

With the annual need to rent industrial park land from 100 hectares, the remaining land fund in Bau Bang Industrial Park is expanded enough for business exploitation until the end of 2024, according to information from Becamex IDC.

By March 31, 2024, Becamex IDC’s total assets have reached VND 54,069 billion, a slight increase of 1% compared to the beginning of this year. Of which, inventory accounts for the largest proportion at 20,348 billion VND, followed by long-term financial investment at about 18,265 billion VND.

On the balance sheet, Becamex IDC’s total liabilities reached about VND 34,543 billion as of March 31, 2024, an increase of nearly 2% compared to the beginning of the year. Of these, loans account for more than 60% of total outstanding debt, reaching VND 21,000 billion.

Binh Duong province decided to choose Binh Duong Industrial Park as a test location to implement the function conversion program and relocate the factory to the Northern region of the province. At the same time, the province is also collecting opinions from workers and businesses to implement policies related to this relocation process.

Khu công nghiệp Bình Đường tại phường An Bình, thành phố Dĩ An – khu công nghiệp đầu tiên của Bình Dương. Ảnh: Đình Trọng

At a press conference on the socio-economic situation of Binh Duong in the first quarter of 2024, the People’s Committee of Binh Duong province announced that the province has decided to choose Binh Duong Industrial Park to carry out a pilot program to convert functions and relocate houses. machines to industrial parks in the North of the province.

Binh Duong Industrial Park has an area of 16.5 hectares, invested by Thanh Le Import-Export Trading Corporation. This is the first industrial park in Binh Duong built and operating since 1993.

The industrial park was built in 1993, the nameplates of businesses operating in the industrial park are old. Photo: Dinh Trong

Currently, this industrial park has attracted 11 businesses, including 5 businesses renting land and 6 businesses renting factories, providing jobs for more than 2,000 workers, mainly in the garment industry. Earlier this year, businesses here had orders again and are in need of recruiting new workers for production.

Binh Duong Industrial Park is located in the middle of a developed urban area, surrounded by houses and many apartments. The location of this industrial park is adjacent to Ho Chi Minh City, connected to National Highway 1A via Binh Duong 3 and An Binh streets. Currently, both of these roads are narrow compared to urban development.

There are over 2,000 workers working, mainly in the garment sector. Photo: Dinh Trong

Mr. Vo Anh Tuan, Chief of Office of Binh Duong Provincial People’s Committee, informed that this Industrial Park will operate for 50 years, and businesses will have a usage time of about 20 years.

According to Binh Duong province’s electronic information portal, provincial leaders along with departments and branches have had a working program with industrial park investors as well as businesses.

Surrounding Binh Duong industrial park are residential areas. Photo: Dinh Trong

Binh Duong province continues to listen to comments from businesses and workers. At the same time, the province will also consider support policies for businesses and workers during the process of relocation and conversion of functions, to ensure harmony. From the experience of relocating Binh Duong industrial park, Binh Duong province will widely apply it to the entire province.

Binh Duong Industrial Park was selected for a pilot relocation, then lessons will be learned before replication. Photo: Dinh Trong

Relocate to create space for sustainable development

According to information from the People’s Committee of Binh Duong province, the relocation of industrial zones, clusters and businesses from the South to the North of the province has been underway since 2019. Preliminary data shows that there are about 3,000 production facilities. Industrial areas are located interspersed in residential areas. This action is causing many negative effects on the environment, public health and urban development.

Surrounding Binh Duong industrial park are residential areas. Photo: Dinh Trong

According to Mr. Vo Anh Tuan, Chief of Office of the People’s Committee of Binh Duong province, the relocated factories are mainly concentrated in the south of the province and bordering Ho Chi Minh City. The land resource situation is becoming extremely important in the process of economic restructuring. The factory relocation will create new development space for the southern areas of the province. In particular, in the context that Binh Duong is aiming to build modern and civilized urban areas, relocating industrial factories to planned industrial clusters in the North is a step forward. necessary and reasonable.

Hai Phong City plans to expand Dinh Vu – Cat Hai Economic Zone (EZ) and at the same time deploy the construction of 15 new industrial parks with a total area of up to 6,200 hectares.

According to the Hai Phong City Planning Report for the period 2021 – 2030 and vision to 2050, the draft version has been submitted to the City People’s Committee for comments, Hai Phong plans to expand Dinh Vu economic zone (EZ) – Cat Hai and deploying the construction of 15 new industrial parks (IPs) with a total area of over 6,200 hectares.

Construction of 15 new industrial parks

According to the Hai Phong City Planning Report for the period 2021 – 2030 and vision to 2050 – the draft has been consulted by the City People’s Committee, Hai Phong plans to expand the economic zone (EZ) Dinh Vu – Cat Hai and deploying the construction of 15 new industrial parks (IPs) with a total area of over 6,200 hectares.

Specifically, according to the planning approved by the Prime Minister in previous stages, Hai Phong currently has a Dinh Vu – Cat Hai Economic Zone with an area of 22,540 hectares and 25 planned industrial parks with a total area of 12,702 hectares.

Dinh Vu – Cat Hai Economic Zone is expected to be expanded in the Cat Hai island area and Lach Huyen port to meet the growing development needs of this area as well as the city in general.

Regarding industrial parks that have been put into operation, as of 2020, the city has 12 industrial parks in operation, investment, construction and infrastructure business (8 industrial parks located in Dinh Vu – Cat Hai EZ with an area area of 5,230 hectares and 4 industrial parks outside the economic zone with an area of 768 hectares).

The average occupancy rate of operating industrial parks is over 62.5%. Among them, some industrial parks have reached 100% occupancy rate such as: MP Dinh Vu Industrial Park, Nomura Industrial Park, Trang Due Industrial Park (phase 1, phase 2), Dinh Vu Industrial Park (1+2), Do Industrial Park Paint. The average investment rate reaches 9 million USD/ha.

Regarding new planned industrial parks, according to Action Program No. 76 of the Standing Committee of the City Party Committee, in the period 2021 – 2025, Hai Phong city plans to deploy the construction of 15 new industrial parks with a total area area of over 6,200 hectares.

Among them, there are 6 industrial parks that are focusing on implementing new establishment procedures with a total area of 2,758 hectares, including: Xuan Cau Industrial Park Project (post-port services) with an area of 752 hectares located in Dinh Economic Zone. Vu – Cat Hai; and 5 projects have submitted applications for investment policy approval at the Ministry of Planning and Investment including: Nam Trang Cat Industrial Park, Thuy Nguyen Industrial Park, Tien Thanh Industrial Park, expanded Trang Due Industrial Park, Giang Bien II Industrial Park.

There are 10 projects that are completing processes and procedures for implementation (total area of 3,466 hectares) including: Cau Cuu Industrial Park, An Hoa Industrial Park, An Hung – Dai Ban Industrial Park, Vinh Quang Industrial Park, Ngu Phuc – Kien Thuy Industrial Park , Tan Trao Industrial Park – Kien Thuy; Sao Mai Industrial Park (Tien Lang 1), Vinh Quang Shipbuilding Industrial Park (Tien Lang 2), Cai Trap Industrial Park, Nam Cau Kien Industrial Park (phase 2).

In addition, the city also proposed 7 more industrial parks including: Ben Rung 2 Industrial Park, Industrial Park on Cat Hai Island – Lach Huyen (Lach Huyen 1 Industrial Park, Lach Huyen 2 Industrial Park, Lach Huyen 3 Industrial Park – Vinfast, Lach Huyen Industrial Park 4 – Industrial combined with Logistic), Tien Lang Airport Industrial Park, Tam Hung – Ngu Lao Industrial Park.

Establishment of 26 industrial clusters
Regarding industrial cluster planning, in the period 2020 – 2025, Hai Phong has established 26 industrial clusters (CCN), including two expanded industrial clusters, Tien Lang Town IC and An Hong Shipbuilding IC.

List of 26 industrial clusters:

Diagram of Hai Phong City’s industrial development plan for the period 2021 – 2030, vision to 2050:

Diagram of Hai Phong City’s industrial development plan for the period 2021 – 2030, vision to 2050. (Screenshot).