KBC's industrial park 'empire'
KinhBac City Development Holding Corporation (KBC), one of Vietnam's leading industrial real estate companies, is managing about 5,188 hectares of industrial park developments.
The figure is higher than other major developers' like Idico (3,378 ha) and Becamex (4,693 ha). Becamex is a partner in the Singapore-invested VSIP Industrial Park joint venture.
The total value of KBC's interest in the industrial park (IP) segment reached about VND11,891 billion ($508.4 million), as estimated by KB Securities Vietnam (KBSV), a member of South Korea's KB Securities.
Newly approved projects include Trang Due 3 (Hai Phong city), Quang Chau expansion (Bac Giang province), Nam Tan Tap (Long An province), and others in Long An and Hung Yen provinces. They are expected to be the first projects for KBC from 2023 when 90% of land at its operational IPs has been leased, according to KBSV.
In February 2022, Hung Yen's Department of Industry and Trade proposed the provincial People's Committee add three industrial cluster projects Tien Lu, An Vien-Trung Nghia and Pho Hien with a total area of 170 hectares to the northern province's planning.
The investor is Hung Yen Investment and Development Corporation, with KBC holding a 60% stake. The corporation, established in 2021 with chartered capital of about $77 million, has registered as an investor in a total of eight industrial cluster projects in Hung Yen, with a total area of about 550 hectares. Construction on the three clusters is scheduled to commence in Q2/2022 and completion in Q4/2025.
Although owning a project portfolio with many large IPs across the country, KBC is focusing more on developing in the north, which has received the higher proportion of the country's foreign direct investment in recent years.
Quang Chau IP in the northern province of Bac Giang is expected to be approved for an additional 90 hectares in September. Currently, 50 hectares of the IP is in the final negotiation stage for leasing to a company specializing in manufacturing Apple products, the KBC leadership said.
Nam Son Hap Linh IP in the adjacent Bac Ninh province in early July 2022 officially signed a contract to lease 22 hectares to Chinese electronics corporation Oppo.
At the company's general meeting of shareholders in 2022, KBS leaders disclosed that they had signed a memorandum of understanding (MoU) to lease 115 hectares in Trang Due Industrial Park phase 3 in Hai Phong to LG Display.
KBC is also looking for opportunities to expand its land bank in Quang Ninh province. It received policy approval for three new projects in Bac Ninh province, including Que Vo IP.
Since 2018, the IP leasing segment has accounted for the main proportion of KBC's revenue. IP leasing hit $86.28 million in 2018, accounting for 81% of the company's total revenue. For the following three consecutive years, revenue from this segment continued to hold the highest proportion with an average contribution of 71%.
In the first quarter of 2022, the company's IP leasing segment reached $13.55 million, accounting for 46% of total revenue.
KBC targets a consolidated revenue of $419 million and after-tax profit of $192.4 million this year. Profit growth in 2022 depends on the handover of Trang Cat Urban Area in Hai Phong city, expected to contribute up to 55% of total revenue.
Land leasing activities in Quang Chau IP, Nam Son Hap Linh IP, Tan Phu Trung IP and sales in Trang Cat Urban Area will be the driving force for profit growth at KBC, top broker SSI Research commented.
Chairman Dang Thanh Tam, born in 1964, was ranked the richest person in Vietnam in 2007 and third richest in Vietnam in 2008, 2009 and 2010.
In those years, he expanded the corporation's activities to many fields like finance and banking, telecommunications, energy, and minerals. However, after 2012, Tam's business situation began to decline, Tam and his businesses were engulfed in huge debt in 2013.
Currently, Tam and his associates have basically stabilized their business situation at key enterprises like KBC and Saigon Telecommunications Technology JSC (Saigontel). They are focusing on the duo.
KBC has 15 corporate members. On the Ho Chi Minh City Stock Exchange, the KBC share price hit VND38,500 ($1.65) at the closing session on August 5.
- Read More
Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam
Three construction majors in Vietnam are interested in building an expanded expressway connecting Ho Chi Minh City with the Mekong Delta provinces of Long An and Tien Giang for an estimated VND38.6 trillion ($1.52 billion).
Infrastructure - Tue, November 19, 2024 | 8:18 pm GMT+7
Singapore, Germany upgrade relations to strategic partnership
Singapore and Germany have decided to elevate their ties to a Strategic Partnership to promote closer cooperation in areas of mutual interest such as security, artificial intelligence (AI) and clean energy.
Southeast Asia - Tue, November 19, 2024 | 8:01 pm GMT+7
Thailand’s rice shipment up 20% in 10 months
Thailand exported 8.37 million tons of rice in January-October, a year-on-year increase of 20%, according to the Ministry of Commerce.
Southeast Asia - Tue, November 19, 2024 | 8:00 pm GMT+7
Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec
Vietnam’s legal framework lacks consistency and the foreign direct investment (FDI) sector will soon face challenges related to the Law on Environmental Protection, says Bruno Jaspaert, CEO of Deep C Industrial Zones.
Economy - Tue, November 19, 2024 | 6:30 pm GMT+7
Vietnam shares sink on extended foreign selloffs
Vietnamese equities fell for a fourth consecutive day on Tuesday as foreign traders extended their selling spree.
Finance - Tue, November 19, 2024 | 5:10 pm GMT+7
Germany’s household product firm QuickPack to invest $32 mln in Vietnam
Germany’s QuickPack, a specialist for household goods and hygiene products, will invest €30 million ($31.8 million) in Vietnam’s Mekong Delta province of Long An.
Industries - Tue, November 19, 2024 | 4:24 pm GMT+7
Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers
Malaysian millionaire Vincent Tan has evinced investment interest in a residential project owned by convicted tycoon Truong My Lan, chairwoman of Van Thinh Phat Group, lawyers for the latter have disclosed.
Real Estate - Tue, November 19, 2024 | 4:17 pm GMT+7
‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects
Limited consultations between state agencies and the parliament’s primary focus on wording are issues with Vietnam’s legal framework adversely affecting property and infrastructure projects, say experts and corporate leaders.
Economy - Tue, November 19, 2024 | 3:40 pm GMT+7
President Xi Jinping hastens construction of 3 Vietnam-China rail routes
Chinese President Xi Jinping has called for more substantial cooperation between China and Vietnam, including the pacier implementation of three railway routes linking the two nations.
Infrastructure - Tue, November 19, 2024 | 3:08 pm GMT+7
Vietnam developers offer deferred principal payments, interest support to boost year-end sales
Vietnamese housing developers are offering several incentives including deferred principal payments and interest support to stimulate demand and boost liquidity as the year nears its end.
Real Estate - Tue, November 19, 2024 | 2:29 pm GMT+7
Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory
Australia-based EQ Resources Limited has acquired its fellow firm Tungsten Metals Group (TMG), which owns and operates the largest ferrotungsten (FeW) factory outside China.
Companies - Tue, November 19, 2024 | 11:00 am GMT+7
Techcom Securities becomes largest broker in Vietnam by capital base
Techcom Securities JSC (TCBS) has become the largest securities company in Vietnam by charter capital after finishing a rights offering last week.
Finance - Tue, November 19, 2024 | 9:11 am GMT+7
Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec
Vietnam's airports operator ACV expects to earn $145 million from non-aviation services this year, accounting for around 18.83% of its total revenue, which is modest compared to other countries, said deputy general director Nguyen Duc Hung.
Companies - Tue, November 19, 2024 | 7:45 am GMT+7
The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment
A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.
Companies - Tue, November 19, 2024 | 7:00 am GMT+7
Indonesia promises Asia-Pacific investors more incentives
Indonesian President Prabowo Subianto recently told the press that he will create more incentives and expand special economic zones (SEZs) so as to lure investors from Asia-Pacific.
Southeast Asia - Mon, November 18, 2024 | 11:01 pm GMT+7
Indonesia, Brazil enhance aviation cooperation
Indonesia's state-owned aircraft manufacturer, Dirgantara Indonesia (DI), and Brazilian aerospace company Embraer have signed a memorandum of understanding (MoU) to expand collaboration in the commercial aviation sector.
Southeast Asia - Mon, November 18, 2024 | 11:00 pm GMT+7