KBC to double down on mega golf course project in northern Vietnam

KinhBac City Development Holding Corporation (KBC), a leading industrial real estate developer in Vietnam, will forgo dividend payouts this year to retain capital for ongoing projects, including a 990.43-hectare property development in the northern province of Hung Yen.

The decision was announced at the company’s AGM meeting on Saturday.

The above-said project, named Trump International Hung Yen - a golf, eco-tourism and urban complex, is being developed by a joint venture between Vietnam's Hung Yen Investment and Development Group - a subsidiary of KBC, and IDG Capital Vietnam, which represents The Trump Organization.

It covers six communes of Khoa Chau district, Hung Yen province, near the Red River, and has investment capital of VND39,787 billion ($1.53 billion).

As the first Trump-branded project in Vietnam, the project is expected to become an iconic travel destination in the Southeast Asian country.

At the AGM, the most pressing concern among shareholders was the potential impact of U.S tariff policies on the company. CEO Nguyen Thu Huong said U.S tariff issues have affected the company’s plans. However, she emphasized that the impact spans the entire industrial real estate sector, not just KBC.

This year, KBC set a revenue target of VND10 trillion ($383.22 million) and after-tax profit of VND3.2 trillion ($122.63 million), 3.6 times and 7.6 times higher than last year’s results, respectively.

Huong said the company remains committed to the targets and sees no need for revision, though she acknowledged that external shocks, including tariff risks, could still arise.

KBC is currently negotiating with partners to find suitable solutions for existing contracts, she said.

The CEO expressed confidence that Vietnam will secure a favorable outcome in trade talks with the U.S. As for potential adjustments to the company’s business plan, she said any changes would be discussed with shareholders at a later time.

Huong noted that it is too early to assess the impact of tariffs, as Vietnam is still in negotiations with the U.S.

“Some of our partners are affected, but that hasn’t made them pessimistic or pulled them out of investments. Just yesterday, I signed a new contract,” the CEO said.

She added that KBC expects to onboard new clients in the coming period, though the company is still awaiting the U.S final decision on tariffs.

On Wednesday, KBC completed a private placement of 174.1 million shares to nine professional investors, raising over VND4.1 trillion ($157.19 million).

However, the company only sold 66% of the initially planned volume and canceled nearly 76 million unsold shares after some funds, including Dragon Capital and Prudential Vietnam, opted not to participate as planned.

Despite this, the CEO said the deal exceeded the company’s expectations. “Given the market volatility since April, raising over VND4 trillion was a strong result,” the executive said.

In Q1/2025, KBC reported consolidated net revenue of VND3.12 trillion ($119.56 million), 20 times higher than the same period last year. Gross profit surged from VND74 billion to VND1.21 trillion ($46.37 million).

After taxes and expenses, the company posted after-tax profit of VND849 billion ($32.53 million), a sharp turnaround from a loss of VND76.7 billion in Q1/2024.

On the Ho Chi Minh Stock Exchange, KBC shares closed Friday at VND26,450 ($1.01) apiece.

U.S. President Donald Trump on April 2 said that he would levy massive 46% tariffs on imports from Vietnam as part of a new wave of global impositions, effective from April 9. Trump on April 9 dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days.

After the U.S. announced the delay and agreed to start negotiations with Vietnam, Prime Minister Chinh formed a government negotiation team, led by Minister of Industry and Trade Nguyen Hong Dien. Since early May, the Vietnamese technical delegation has been working with relevant U.S. agencies on bilateral trade pact negotiations.