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.

Meiko Group, a leading corporation in the production of electronic circuit boards and assembly of complete electronic circuit boards, is planning to invest in building a factory to produce electronic circuits in Bo Industrial Park. left of Da River, Hoa Binh City.

According to information from the Hoa Binh Provincial Information Portal, Japan’s Meiko Group has proposed subleasing land and infrastructure from Da Hop Trading Joint Stock Company – the investor of the Song Da left bank Industrial Park. The total rented area is 9.2 hectares, with the goal of investing in building an electronic chip factory worth 4,660 billion VND, equivalent to 200 million USD.

Meiko Group hopes that Hoa Binh province will support and create favorable conditions for the project to succeed. Provincial leaders have committed to providing maximum conditions for businesses.

Meiko currently has 5 factories in Japan and 2 factories in China, and is one of the leading corporations in the field of manufacturing electronic circuit boards and assembling complete electronic circuit boards.

In Vietnam, Meiko Group officially invested in 2006 and established a factory in Thach That Industrial Park. At that time, the Meiko project was considered one of the 10 largest foreign direct investment projects and also the largest electronics manufacturing project implemented by foreign investors. Currently, the enterprise has a total of 3 factories manufacturing and assembling electronic circuit boards with a total investment of up to 500 million USD, creating more than 7,000 jobs and contributing about 30 million USD to the annual budget. .