Vietnamese
[Industrial Real Estate Sector] - Solid foundation
10/01/2025
Summary
- The Ministry of Finance reported that as of December 31, 2024, accumulated public investment disbursement was estimated at VND 529,632 billion (-8.7% YoY), achieving 77.55% of the target set by the Prime Minister. Entering 2025, the Government issued Decision 1508/QĐ-TTg on December 4, 2024, approving the state budget investment plan for the year, which allocates VND 790,727 billion for public investment—a significant increase of approximately VND 120,000 billion compared to the VND 670,000 billion plan for 2024. Furthermore, on November 29, 2024, the 15th National Assembly enacted the amended Law on Public Investment. The revised law aims to enhance transparency by clearly defining accountability in using state funds and improving the oversight of capital expenditure.
- In the 9M2024, industrial park enterprises demonstrated positive business growth, primarily driven by rising demand and increased FDI inflows. Gross profit margins improved year-over-year, largely due to higher rental prices. Nevertheless, some enterprises, such as KBC, experienced performance declines, mainly due to delays in finalizing land lease procedures. Despite these challenges, we maintain an optimistic outlook for these enterprises, anticipating that legal obstacles will be resolved soon, enabling them to realize potential revenue soon.
- We highly recommend the industrial park group, including BCM, KBC, IDC, and SZC, thanks to their abundant land fund available for lease, concentrated in key provinces and cities (destinations of FDI capital flows) such as Bac Ninh, Binh Duong, Hai Phong, Vung Tau, Ho Chi Minh City, and Bac Giang.
Sector
Industrial Real Estate
Category
Update
Author
Tien Le
Details
Page: 32
Lauguage:
File format: pdf
Size: 5.48 MB
