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

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 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)

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.