Connect with us

Project

Good News for Vietnam Rubber Group (GVR): Approval Granted for Bac Dong Phu Industrial Park Phase 2

Published

on

Deputy Prime Minister Tran Hong Ha signed Decision No. 145/QD-TTg on January 16, 2025, approving the investment policy for the construction and infrastructure business project of Bac Dong Phu Industrial Park Phase 2 in Binh Phuoc Province. The project investor is Bac Dong Phu Industrial Park JSC, a member of Vietnam Rubber Group (stock code GVR).

The two major shareholders of Bac Dong Phu Industrial Park are Dong Phu Rubber JSC (stock code DPR) with a 51% ownership stake and Nam Tan Uyen Industrial Park JSC (stock code NTC) with a 40% ownership stake.

The industrial real estate sector is expected to become a new growth driver for Vietnam Rubber Group.

The industrial real estate sector is expected to become a new growth driver for Vietnam Rubber Group.

The Bac Dong Phu Industrial Park Phase 2 project will be developed in Tan Phu Town, Dong Phu District, and Tien Hung Commune, Dong Xoai City, Binh Phuoc Province, with a total land area of 317 hectares. The total investment for the project is VND 1,360 billion, including VND 204 billion in investor equity.

This is the second large-scale industrial park project approved for Vietnam Rubber Group in recent weeks. On December 27, 2024, the expansion of Rach Bap Industrial Park (360 hectares) in Binh Duong Province, led by An Dien Industry JSC (a subsidiary of Vietnam Rubber Group holding a 92.67% stake), was also approved for development.

Bac Dong Phu Industrial Park Phase 2 is a highly anticipated project for Vietnam Rubber Group, Dong Phu Rubber, and Nam Tan Uyen Industrial Park amidst the limited availability of commercial industrial land within their portfolios.

One of the bottlenecks delaying the approval of Bac Dong Phu Industrial Park Phase 2 was the near-exceedance of Binh Phuoc Province’s allocated industrial land quota, as stipulated in Decision No. 326/QD-TTg issued on March 9, 2022, by the Prime Minister. This decision set national land use allocation targets for the 2021–2030 period, with a vision to 2050, and a five-year land use plan for 2021–2025.

The price movements and trading volume of Vietnam Rubber Group's GVR stock from the beginning of 2024 to now. (Source: TradingView)

The price movements and trading volume of Vietnam Rubber Group’s GVR stock from the beginning of 2024 to now. (Source: TradingView)

However, in March 2024, the Prime Minister issued Decision No. 227/QD-TTg, adjusting some land use targets until 2025, as allocated in Decision No. 326/QD-TTg. Consequently, Binh Phuoc Province gained an additional 828 hectares of industrial land for new projects by 2025, including Bac Dong Phu Industrial Park Phase 2.

With 317 hectares of industrial land added to the portfolio, Bac Dong Phu Industrial Park Phase 2 is expected to drive new growth for Dong Phu Rubber and Vietnam Rubber Group.

In terms of business performance, Vietnam Rubber Group estimated its consolidated revenue for 2024 to reach VND 26,307 billion, achieving 105.2% of the annual target and up 6.5% compared to 2023. Consolidated after-tax profit is projected to be VND 3,746 billion, reaching 109% of the annual target and increasing by 11% compared to 2023.

Project

Uncertainty weighing on real estate

Published

on

The ever-changing status of the global economy following last week’s tariff shocks continue to loom large among investors in Vietnam’s real estate market.

Uncertainty weighing on real estate
All real estate segments are at risk of losing appeal if high global tariffs are eventually put in place, photo Le Toan

Pham Lam, vice chairman of the Vietnam Real Estate Association, said that while it is premature to determine the full impact of new US import tariffs on Vietnam’s property market, early signs point to shaken investor sentiment and potential disruptions to foreign investment.

“If multinational corporations scale back or delay their factory expansion plans, the demand for land and factory leasing could decline, which may place downward pressure on industrial rents, lead to increased vacancy, and postpone new industrial zone developments,” he said. “This would affect key industrial property markets such as Bac Ninh, Bac Giang, Haiphong, Long An, and Binh Duong.”

Meanwhile, real estate expert Nguyen Hoang said that the United States remains one of the most critical export destinations for Vietnam’s foreign-invested enterprises.

“Any change in tariffs will significantly influence capital flows, investor confidence, and manufacturing strategies of companies operating in Vietnam. If a high tariff is fully implemented in 90 days, it could seriously diminish Vietnam’s investment appeal – affecting all real estate segments as a result,” Hoang said.

Vietnam’s property market has only recently emerged from a prolonged two-year downturn.

“It remains highly sensitive to economic and policy shocks. Investors have remained cautious, and any further external pressure could threaten to break the fragile liquidity recovery, potentially sending the market back into a period of short-term stagnation,” Hoang added.

Alex Crane, managing director of Knight Frank Vietnam, said that the recent tariff twists by the US casts a shadow of uncertainty, with potential implications for various segments of the market.

While manufacturing has shown resilience, it is still on the path to full recovery from the pandemic, particularly in labour-intensive sectors like garments and furniture. Tariffs imposed now would not have as severe an impact as they might have during Vietnam’s 2019 peak, but consequences are still expected, Crane said.

“I may expect that major transactions, especially those involving large capital outlays, are being paused or undergoing extended due diligence as investors and developers reassess assumptions and underwriting models and commercial occupiers are expected to defer large capital expenditures in the short term,” Crane said.

In addition, the response from the State Bank of Vietnam, particularly regarding monetary policy, will be crucial. While a rate cut may not effectively stimulate residential demand (as demonstrated in 2024), targeted lending for key industries and easing of loan-to-value ratios or debt-to-income limits for developers could provide relief.

“At present, most segments of the real estate market are in a holding pattern, awaiting clarity from the evolving negotiations between the Vietnamese and US governments. While uncertainty is unsettling, Vietnam’s underlying fundamentals remain sound, and the market’s long-term outlook is still viewed positively,” he added.

Nguyen Dung Minh, deputy CEO of MIK Group, has warned that under the new US tariff regime, many investors will be forced to reassess their strategies, likely leading to a decline in the demand for industrial land.

“Investors will need time to re-evaluate their actual demand and incoming orders and make necessary adjustments before they can fully gauge the extent of the impact,” Minh said.

He added that the implications go beyond just industrial land. “The new US tariffs are also expected to disrupt supply chains and negatively affect supporting sectors such as logistics, warehousing, and raw materials manufacturing. As production slows, so too will the demand for land associated with these services,” Minh said.

Trang Bui, country head Cushman & Wakefield Vietnam

While the effects of tariffs are typically delayed, most economists warn that they may eventually fuel inflation and dampen economic growth. Many manufacturing firms could opt to postpone their expansion plans in the short term if export duties become too burdensome. There is also a possibility that some companies may look to diversify their supply chains towards a Vietnam+1 model, shifting parts of their operations to neighbouring countries.

This could lead to a decline in demand for factories and warehouse leasing, two key drivers of the industrial real estate segment. However, it is important to recognise that industrial real estate is fundamentally a long-term investment. Vietnam has long positioned itself as the manufacturing hub of Southeast Asia, thanks to its strategic location and the “bamboo diplomacy” approach, which has enabled the country to swiftly join trade negotiations and sign multiple free trade agreements.

Moreover, many manufacturers in Vietnam have already established tightly integrated supply chains. As such, their investment plans tend to operate on a much longer time horizon than the near-term effects of tariff policy. Relocating supply chains typically requires at least 3–5 years, making short-term shifts less likely.

Overall, Vietnam’s industrial real estate sector has proven resilient under various political and economic conditions. Investors would do well to focus on long-term trends and structural advantages. Manufacturers, in particular, may take this opportunity to secure high-quality industrial assets, invest in automation, and pull in skilled labour, while continuing to monitor developments in upcoming trade negotiations with caution.

Nguyen Thi Bich Ngoc, CEO, Sen Vang Group

When it comes to the reciprocal tariff policy announced by the US, the greater danger currently lies not in the tariff itself, but in the heightened sense of uncertainty it has triggered across the Vietnamese market, a sentiment clearly reflected in recent VN-Index fluctuations.

In the short term, the policy will weigh heavily on Vietnam’s industrial real estate sector. However, in the long run, this challenge could serve as a catalyst for stronger growth. It presents an opportunity for the government and industrial zone developers to rethink their strategies, offering more competitive, attractive solutions to both foreign and domestic investors.

Rather than relying solely on external trends like the China+1 shift, Vietnam should leverage its inherent competitive advantages, including a strategic geographic location, a skilled and cost-effective labour force, and political stability, to pull in long-term investment. These are undeniable strengths that set Vietnam apart.

Moreover, this is also an opportune moment for Vietnam to re-evaluate and restructure its key sectors, prioritising strategic industries with high growth potential. Continued engagement in bilateral and multilateral trade agreements will open up new opportunities and elevate Vietnam’s position both regionally and globally.

Ultimately, we must seize this challenge as a turning point, transforming pressure into momentum for sustainable development.

Vo Hong Thang, Investment director DKRA Group

The industrial infrastructure, commercial, and residential real estate segments are all likely to face increasing headwinds if a huge tariff increase is eventually implemented.

In recent years, a number of developers have made significant investments in industrial zones, betting on a continued influx of foreign direct investment. However, the new tariff policy raises the possibility of such flows being diverted to other countries. Vietnam now faces the risk of having built the nest, but being unable to attract the eagle.

In addition, liquidity in both residential and commercial real estate, including retail, office, and hospitality, is likely to weaken in the short term due to more cautious investor sentiment, defensive capital flows, and reduced purchasing power from end-users.

Niche investment segments such as serviced apartments, tourism-related accommodations, and foreign buyer housing could also see demand drop, particularly as the foreign expert and executive workforce, typically a key demand driver, scales back plans to live and work in Vietnam.

Continue Reading

Project

Central Vietnam city seeks $1.84 bln for 15 projects in economic zone

Published

on

Authorities of Hue city in central Vietnam have released a list of 15 projects in Chan May-Lang Co Economic Zone which will need VND47.5 trillion ($1.84 billion) in investment capital between 2025 and 2026.

Chan May-Lang Co Economic Zone in Hue city, central Vietnam. Photo by The Investor/Dinh Duy.

Chan May-Lang Co Economic Zone in Hue city, central Vietnam. Photo by The Investor/Dinh Duy.

Notable projects include the Chan May non-tariff zones No. 1 and 2 infrastructure development project, with a total area of over 503 hectares and combined investment capital of VND2.8 trillion ($108.23 million).

Another is the VND20 trillion ($773 million) Chan May Urban Area project (locations 1 and 2), which will cover 225 hectares and be implemented over five years.

The LNG terminal project at Chan May Port, 27 hectares with an investment of VND8.6 trillion ($332.43 million), is set for five-year implementation.

The 120-hectare Bai Ca eco-tourism project in Lang Co township will have investment capital of VND2.5 trillion.

The Lang Co beach resort, with an area of 45 hectares and total investment of VND4 trillion ($154.62 million), will be carried out over five years; while the 75-hectare Lap An lagoon tourism, urban development and resort complex in Lang Co township will cost VND6 trillion.

According to the management board of Hue Economic and Industrial Zones, since its establishment, Chan May-Lang Co Economic Zone has attracted 55 investment projects which remain valid, with total registered capital of VND97.32 trillion ($3.76 billion).

Among these, 15 are foreign-invested projects with combined capital of VND56.02 trillion ($2.17 billion), accounting for 57.56% of the total.

Several prominent foreign investors have established a presence in the zone, such as Banyan Tree Group (Singapore) with the Laguna Lang Co Resort and Winson Group (Taiwan) with the Billion Max Vietnam Export Processing Factory.

Chan May-Lang Co has become a destination for investments in sectors like tourism and resort development; seaport infrastructure; logistics; clean industry; and high-tech, environmentally friendly industries, with annual revenue reaching nearly VND4 trillion ($154.62 million) and tax contributions of around VND300 billion.

The management board said Hue city has proposed the Ministry of Construction review the adjustment of the EZ master plan through 2045, for submission to the Prime Minister.

The strategic goal is to develop Chan May-Lang Co into a key economic zone of central Vietnam – a coastal gateway offering logistics services for the central region and the East-West Economic Corridor, as well as a hub for high-end tourism services.

To attract investors, the local government will offer a range of incentives such as a 10% corporate income tax rate for 15 years from the first year the project generates revenue; import tax exemption for goods to create fixed assets for investment projects, and land and water surface rental exemptions, the board said.

Continue Reading

Project

UK’s Uppingham School plans to open first Asia facility in southern Vietnam

Published

on

Uppingham School, a leading British independent boarding and day school, plans to open its first campus in Asia in Dong Nai province, a manufacturing hub in southern Vietnam.

Bien Hoa town in Dong Nai province - an industrial hub in southern Vietnam. Photo courtesy of Dan tri (Intellectual) newspaper.

Bien Hoa town in Dong Nai province – an industrial hub in southern Vietnam. Photo courtesy of Dan tri (Intellectual) newspaper.

The announcement was made during a meeting on Thursday between the Dong Nai administration and Viet Capital Asset Management JSC (VCAM), the local firm that will develop the project.

The project, named Uppingham International School Vietnam, is estimated to cost VND2 trillion ($77.3 million) and will cover 6.7 hectares in Long Hung district, Bien Hoa town.

The school is expected to enroll 1,900 students in its first phase, with the inaugural academic year slated for 2027–2028.

Speaking of the project, British consul general in Ho Chi Minh City Alexandra Smith said that education has always been a key area of cooperation between the UK and Vietnam, aligning well with the development goals set by Dong Nai province.

The British diplomat expressed her belief that the Uppingham International School Vietnam project will help attract more foreign direct investment, as it provides a high-quality education environment for the children of expatriate professionals.

VCAM chairwoman Nguyen Thanh Phuong said around 20,000 Vietnamese parents currently send their children abroad for boarding school education.

Dong Nai is a major manufacturing hub in southern Vietnam and home to Long Thanh International Airport, which is expected to become the largest airport in the country once operational.

Continue Reading

Trending