Becamex sets up subsidiary to advance $176 mln industrial park project in central Vietnam

The VND4.63 trillion ($176.13 million) Ninh Xuan 1 Industrial Park, located in the south-central province of Khanh Hoa, has reached a new milestone as Becamex IDC, one of Vietnam’s largest industrial real estate developers, decided to establish a wholly owned subsidiary to push the project.

The board of directors of Becamex IDC (HoSE: BCM) has just approved a resolution to establish Becamex Khanh Hoa One-Member Limited Liability Company, with charter capital of nearly VND695 billion ($26.44 million). Its headquarters will be located at VCN Tower in Nam Nha Trang ward, Khanh Hoa province.

According to the resolution, the newly established entity will be responsible for investing in, developing and operating the infrastructure of the Ninh Xuan 1 IP, covering around 495.8 hectares across Tan Dinh and Tay Ninh Hoa communes.

Its primary business activity will be real estate development, including the trading of land-use rights owned, managed or leased by the company.

To manage Becamex IDC's investment in the subsidiary, the company has appointed two authorized representatives, including deputy CEO Nguyen Van Thanh Huy and executive director of the financial management department Nguyen Thi Thuy Duong.

Each representative will manage 50% of the contributed capital, equivalent to VND347.372 billion ($13.22 million), under a five-year authorization.

Meanwhile, Sun Nhat Thanh has been appointed as the legal representative of Becamex Khanh Hoa for a five-year term.

The establishment of the subsidiary comes after the provincial People's Committee gave in-principle approval to the Ninh Xuan 1 IP project and officially selected Becamex IDC as its developer at the end of 2025.

The project’s objective is to develop a modern industrial park with synchronized technical infrastructure capable of attracting industrial manufacturing projects in line with provincial planning schemes, contributing to expanding Khanh Hoa's industrial development space.

Land clearance still faces challenges

In late May, Trinh Minh Hoang, Vice Chairman of the provincial People's Committee, conducted a site inspection of compensation and land clearance activities for industrial parks in the province.

The results showed that both the Ninh Xuan 1 IP and the Ninh Xuan 2 IP are currently facing difficulties in determining the boundaries of defense-related land.

The Ninh Xuan 2 spans 490 hectares with a total investment exceeding VND4.03 trillion ($153.42 million) and is developed by Vietnam-Singapore Industrial Park JSC (VSIP) - a joint venture between Becamex IDC and Singapore’s Sembcorp.

The Khanh Hoa Economic Zones and Industrial Parks Authority completed a detailed coordinate survey on May 13 and is awaiting official results before submitting a report to the provincial authorities for further direction.

Meanwhile, the Khanh Hoa Land Development Center is coordinating with the authorities of Tan Dinh and Tay Ninh Hoa communes to accelerate compensation and site clearance for the projects.

Becamex plans to invest $4.84 billion in 2026-2030

According to the resolution adopted at Becamex's 2026 annual general meeting of shareholders in Ho Chi Minh City on June 25, the company stated that as one of Vietnam's leading industrial park developers, it adopts different development strategies for each growth phase.

Following the merger of Binh Duong and Ba Ria-Vung Tau provinces into Ho Chi Minh City, Becamex expects significant development opportunities, particularly in transportation infrastructure projects supporting urban redevelopment.

The company also believed that the expanded workforce and supportive government policies following the administrative merger will create strong growth momentum.

In the residential sector, Becamex will continue developing the Green City project and the New Urban Area in Binh Duong ward, northern Ho Chi Minh City (formerly Binh Duong province).

For industrial parks, the company will continue implementing the expanded Bau Bang and Cay Truong IPs. These projects are currently completing land rental pricing and financial obligations before commencing operations.

It also plans to develop a new generation of IPs powered by renewable energy to support greenhouse gas emission reduction and sustainable development goals.

The firm further intends to relocate and modernize existing industrial parks to better align with the city's long-term development strategy.

Becamex is also preparing to invest in urban railway systems and dual-purpose railway lines for freight transportation, with the aim of connecting central Ho Chi Minh City with surrounding areas under the transit-oriented development (TOD) model.

Between 2026 and 2030, the industrial developer plans to invest a total of VND127.3 trillion ($4.84 billion) in strategic development projects.

The sum includes VND20.58 trillion ($782.94 million) for key transportation infrastructure projects; VND25.33 trillion for industrial parks that have already received investment approval; VND16.52 trillion for centralized digital technology parks; VND6.87 trillion for renewable energy projects; VND13.07 trillion for social housing developments; and VND44.95 trillion for new-generation industrial parks currently under study.

In terms of financing, Becamex expects to contribute over VND12.23 trillion ($465.28 million) in equity, while raising an additional VND36.32 trillion from other funding sources.

Regarding the business plan for 2026-2030, Becamex projects revenue to increase from VND8.25 trillion in 2026 to VND12.07 trillion ($459.19 million) in 2030; total expenses to rise from VND5.96 trillion to VND8.72 trillion ($331.74 million); and after-tax profit to grow from VND2.29 trillion to VND3.35 trillion ($127.45 million).

Preliminary figures show that during the first six months of 2026, Becamex generated approximately VND2.42 trillion ($92.06 million) in revenue, achieving 29% of the year's target. Its estimated after-tax profit reached around VND292 billion ($11.11 million), or 13% of the full-year goal.

On the Ho Chi Minh Stock Exchange (HoSE), BCM closed Thursday at VND50,400 ($1.92) per share.