Bac Ninh Province has called for the acceleration of land clearance for Nam Son – Hap Linh Industrial Park and Dai Dong – Hoan Son Industrial Park (Phase II).
The Bac Ninh People’s Committee recently issued a statement summarizing the conclusions of Vice Chairman Le Xuan Loi during a meeting on the progress of land clearance for the following projects: Nam Son – Hap Linh Industrial Park, Dai Dong – Hoan Son Industrial Park (Phase II), and the Tri Phuong II Pump Station irrigation channel.
Inside an industrial park in Bac Ninh Province. Photo: Van Truong
The statement highlighted that Vice Chairman Le Xuan Loi chaired the meeting, which included representatives from provincial departments, agencies, local authorities, and organizations such as the Provincial Military Command, the Office of the Provincial People’s Committee, the Department of Natural Resources and Environment, the Department of Agriculture and Rural Development, the Bac Ninh Industrial Park Management Board, the People’s Committee of Tien Du District, the Bac Ninh Land Development Center, and relevant project management boards and investors, including Kinh Bac Urban Development Corporation and SaigonTel.
After listening to reports, suggestions, and feedback from the departments and stakeholders, Vice Chairman Le Xuan Loi concluded:
It is essential to accelerate land clearance for the above-mentioned industrial park infrastructure projects to prepare sites for upcoming projects in the industrial parks.
Key tasks assigned include:
For the 25.17-hectare land clearance at Nam Son – Hap Linh Industrial Park, the Tien Du District People’s Committee must focus on determining land prices, assessing and approving compensation plans, and conducting outreach to residents. The goal is to complete the approval and compensation process before January 22, 2025.
For the remaining area of Dai Dong – Hoan Son Industrial Park (Phase II) in Vinh Phu Hamlet, Phat Tich Commune, the Tien Du District People’s Committee will coordinate with relevant units and SaigonTel to encourage residents to relocate remaining graves, provide resettlement support, and finalize compensation and land recovery procedures to enable the investor to complete the park’s infrastructure.
Bac Ninh currently has 14 industrial parks and 26 industrial clusters in operation, employing nearly 450,000 workers.
In 2024, Bac Ninh’s foreign direct investment (FDI) inflows are estimated at $4.8 billion, the highest in the country.
Becamex IDC Corp, a leading eco-industrial and urban real estate developer in Vietnam, plans to raise nearly VND20.88 trillion ($825 million) from a public offering of 300 million shares on the Ho Chi Minh Stock Exchange (HoSE), equivalent to its current equity.
An industrial park developed by Becamex IDC. Photo courtesy of the company.
The corporation has approved the starting price of VND69,593 ($2.75) for the public auction of its BCM shares on the HoSE, aiming for VND20.88 trillion, nearly 40% higher than the initial expected value.
This offering is considered the largest since the state-owned capital divestment boom from 2016 to 2018.
The offering price is almost five times the book value of the stock at the consolidated financial statement for Q4/2024 and the average of the last 30 trading sessions prior to February 6, 2025 on the HoSE.
At the end of 2024, the company’s charter capital was VND10.35 trillion ($408.93 million), and equity was VND20.48 trillion ($809.2 million). If the capital raising is successful, its charter capital will increase to VND13.35 trillion, and equity will double to over VND41 trillion.
Becamex IDC, a giant in the industrial real estate sector in the southern province of Binh Duong, seeks to raise funds to invest in projects such as the Cay Truong Industrial Park and the expanded Bau Bang Industrial Park, as well as to contribute capital to existing companies, including Vietnam-Singapore Industrial Park J.V. Co. Ltd. (VSIP), Becamex Binh Phuoc Infrastructure Development JSC, Becamex VSIP Power Investment and Development JSC (BVP), Vietnam-Singapore Smart Energy Solutions JSC (VSSES), and Becamex Binh Dinh JSC. It also plans to restructure its finances.
Currently, the largest shareholder of the company is the People’s Committee of Binh Duong province, with a 95.44% stake. If the auction is successful, the state’s ownership will drop to 74%.
In the stock market, BCM moved counter to the VN-Index, steadily declining from VND87,000 ($3.44) per share at the end of 2022 to VND51,000 per share in April 2024. However, while the VN-Index stagnated, the ticker rebounded and closed at VND70,000 per share on Friday, up 37.2%.
The stock’s growth momentum slowed in the last quarter of the previous year due to a decline in business results. Specifically, in Q4/2024, Becamex IDC reported a sharp 60% decrease in revenue to VND2 trillion ($79 million).
Despite joint venture activities doubling profits to VND1.19 trillion, its after-tax profit still decreased by 33% to VND1.37 trillion ($54.13 million). For the whole year, its net revenue fell by 35% to VND5.2 trillion, and net profit dropped 12.5% to VND2.1 trillion.
Expansion ambition from 2024 to 2028
The corporation mainly operates in the fields of industrial park infrastructure investment, urban development, services, and trade. It is the developer of six industrial parks in Binh Duong province, covering a total land area of 2,931 hectares with an occupancy rate of 88%. The firm is also finalizing legal procedures to put the 700-hectare Cay Truong Industrial Park into operation in 2025.
In addition, Becamex IDC has expanded its reach to other localities outside Binh Duong, such as Binh Phuoc, Tay Ninh, Khanh Hoa, Quang Ngai, Thua Thien-Hue, Thanh Hoa, Nam Dinh, Ninh Binh and Hai Duong provinces, and Hai Phong city. The firm has also received in-principle approvals for four more industrial parks in Lang Son, Thai Binh, Binh Thuan, and Ha Tinh provinces.
Besides industrial parks, Becamex IDC has also developed urban and service areas such as the My Phuoc Residential Area, Thoi Hoa Residential Area, and Bau Bang Residential Area. The corporation plans to allocate resources for high-impact commercial projects like the WTC Exhibition Center, WTC Tower, and WTC Gateway cultural-central station complex in New Binh Duong town.
Moreover, the company, together with Singapore’s Sembcorp Industries, has developed the Vietnam-Singapore Industrial Park (VSIP) model, featuring an innovation center in an industrial-urban-service complex including a business incubator, advanced manufacturing center, and renewable energy research center.
These strategies will be implemented from 2024 to 2028, with a vision towards 2030. To achieve these goals, the company plans to increase its charter capital if necessary, borrow from credit institutions, and issue bonds.
Becamex IDC currently has total liabilities of VND38.3 trillion ($1.51 billion), with short-term debt of VND7.9 trillion and long-term debt of VND15.72 trillion. Its debt-to-equity ratio is 1.1 times.
Japan-invested Vietnam Sunergy Wafer, a manufacturer of solar cells, plans to start official production at its $30 million factory in Hung Yen province from June.
The firm aims to complete administrative procedures in May and then install equipment in June, according to a recent project report. The plant covers 2.65 hectares in Minh Quang Industrial Park of the northern province.
A factory of Vietnam Sunergy JSC. Photo courtesy of VSUN Solar Vietnam.
The project has an annual capacity of 600 million silicon wafers, a component of solar cells, equivalent to 9,375 tons. It is set to employ 1,000 people.
Hung Yen recorded registered foreign direct investment (FDI) of $1.5 billion in 71 projects in 2024, the highest-ever figure in terms of capital, according to provincial data.
The province, a neighbor of Hanoi, has so far attracted FDI of $8.5 billion. It now has 17 industrial parks in its masterplan, covering 4,395 hectares. Of these, 10 facilities are now operational.
A total of 27 industrial park investment projects across Vietnam have been approved, covering an area of 8,886 hectares.
Supply Expected to Expand
In 2024, eight new industrial parks commenced operations, adding a total of 3,029 hectares—an increase of 3.3% compared to the total operational industrial park area, according to a report by the Ministry of Planning and Investment.
Reforming FDI policies is essential to attract foreign capital into targeted industries
Additionally, the Prime Minister has approved investment plans for 27 new industrial park projects nationwide, spanning 8,886 hectares, bringing the country’s total industrial land area to 18,800 hectares (a 9% year-on-year increase). These new industrial parks are expected to become operational by the end of 2025. However, there has been a notable shift from Tier-1 industrial zones to Tier-2 regions, with most new projects located in provinces such as Bac Giang, Ha Nam, Binh Phuoc, Ba Ria-Vung Tau, and Tay Ninh.
The approval process for new industrial parks is expected to accelerate in 2025. In November 2024, the National Assembly passed amendments to four key laws (Planning, Investment, Public-Private Partnerships, and Bidding). Notably, revisions to the Investment Law have delegated approval authority for industrial park investment projects from the Prime Minister to provincial People’s Committees. This change is expected to speed up the establishment of new industrial parks, benefiting companies with large land holdings, such as rubber plantation enterprises.
FDI inflows into Vietnam slowed down in 2024.
According to SSI Research (a division of SSI Securities Corporation), the conversion of rubber plantation land into industrial parks has shown positive initial results. In 2024, three new industrial parks—Hiep Thanh in Tay Ninh, Xuan Que – Song Nhan, and Bau Can – Tan Hiep in Dong Nai—secured investment approvals for conversion from rubber plantation land, covering a total of 2,495 hectares. It is projected that rubber plantation firms such as GVR, TRC, and DPR (with the expansion of Bac Dong Phu and Nam Dong Phu industrial parks) will begin generating revenue from land conversions starting in 2025.
Demand for Industrial Land Leasing May Not Recover in 2025
SSI Research predicts that the industrial land leasing market may contract in 2025 due to several key factors.
Foreign direct investment (FDI) inflows into Vietnam slowed in 2024, with total registered FDI reaching $31.4 billion—only a 1% increase compared to the same period in the previous year.
The firm identified three primary reasons for the slowdown in FDI expansion in 2024, which may extend into 2025:
Exchange Rate Volatility
Fluctuations in exchange rates can significantly impact project performance, creating uncertainties for FDI enterprises operating in Vietnam.
FDI Policy Reforms Needed
To attract foreign capital into targeted industries, Vietnam must enhance its investment policies. The country faces increasing competition from regional neighbors like Indonesia, which has implemented the Omnibus Law, and Thailand, which has launched a competitiveness enhancement fund and set a corporate income tax rate of 10%. Meanwhile, Vietnam has begun implementing the Global Minimum Tax (GMT) in 2024, and a new decree on the Investment Support Fund—designed to address GMT-related concerns—is expected to be issued in December.
Infrastructure Bottlenecks in Southern Vietnam
Infrastructure development in the southern region remains sluggish, leading to higher logistics costs and reducing the attractiveness of industrial investments. However, Vietnam is actively enhancing infrastructure connectivity between key industrial hubs through projects such as the North-South Expressway and the China-Vietnam railway.
Limited Available Land in Key Industrial Zones
The availability of industrial land in prime locations is decreasing, making site selection increasingly difficult for investors. As of Q3 2024, average industrial park occupancy rates stood at 81% in the north and 92% in the south, according to CBRE.
“We anticipate that industrial land leasing demand will not recover in 2025 due to various factors affecting major tenants from the U.S. and China,”
Analysis Center, SSI Securities Company (SSI Research).