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
Vietnam manufacturing activity rebounds, recovering from typhoon Yagi
The Vietnamese manufacturing sector in October started to recover from the effects of September's typhoon, recording renewed increases in both output and new orders.
Economy - Fri, November 1, 2024 | 8:34 am GMT+7
Vietnam private lender VietBank logs 96% profit growth in 9 months
Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) posted a 96% year-on-year surge in pre-tax profit in the first nine months of 2024 to reach VND820.4 billion ($32.46 million), or 78% of the year's target.
Banking - Fri, November 1, 2024 | 7:45 am GMT+7
Maersk opens its first bonded warehouse in Vietnam
Denmark's integrated transport and logistics giant A.P. Moller - Maersk (Maersk) on Thursday opened its first bonded warehouse in Vietnam at SLP Park, Nam Dinh Vu Industrial Park in Hai Phong city.
Industries - Thu, October 31, 2024 | 11:44 pm GMT+7
ABBank incurs $14 mln loss in Q3
Hanoi-headquartered An Binh Commercial Joint Stock Bank reported a pre-tax loss of VND343.5 billion ($13.59 million) in the third quarter of this year, while some other private Vietnamese banks posted strong profits.
Banking - Thu, October 31, 2024 | 9:29 pm GMT+7
Vietnam’s emergence as regional manufacturing hub a significant logistics opportunity: SuperPort exec
Southeast Asia’s rise as a vital logistics hub with Vietnam positioned as a key manufacturing center presents a significant business opportunity, says Yap Kwong Weng, CEO of Vietnam SuperPort.
Companies - Thu, October 31, 2024 | 9:01 pm GMT+7
Indonesia steps up support for textile industry
Indonesia’s President Prabowo Subianto held a close-door meeting with several ministers on Tuesday to discuss the current situation of Indonesia's textile industry, particularly focusing on textile giant Sri Rejeki Isman (Sritex).
Southeast Asia - Thu, October 31, 2024 | 6:01 pm GMT+7
Thailand speeds up plans to construct six new airports
Thailand’s Transport Ministry is accelerating development and construction projects on six airports with an aim to become the region's transportation hub.
Southeast Asia - Thu, October 31, 2024 | 6:00 pm GMT+7
Thailand develops eco-friendly seaport model
Thailand is striving to implement environmental protection and social sustainability solutions in developing the country’s major infrastructure projects, such as the development of Phase 3 of Laem Chabang Port, Thailand's only deep-sea port.
Southeast Asia - Thu, October 31, 2024 | 5:58 pm GMT+7
Indonesia intensifies oil palm cultivation to meet biodiesel demand
Indonesia is expanding its oil palm cultivation to increase crude palm oil (CPO) production as a raw material for 50% biodiesel (B50), according to the country’s Ministry of Agriculture.
Southeast Asia - Thu, October 31, 2024 | 5:56 pm GMT+7
Malaysia’s first domestic EV model opens for booking
The Malaysian multinational automotive company Proton's first electric vehicle (EV), the e.MAS 7, is now open for booking.
Southeast Asia - Thu, October 31, 2024 | 5:54 pm GMT+7
Thailand aims to become emerging leader in AI
Thailand is positioning itself as an emerging leader in artificial intelligence (AI) regulation and development, thanks to policies that support an approach that balances technological innovation with ethical considerations and workforce protection.
Southeast Asia - Thu, October 31, 2024 | 5:53 pm GMT+7
Vietnam PM calls for more investment from Qatar’s $475 bln sovereign wealth fund
Vietnamese Prime Minister Pham Minh Chinh has called on the Qatar Investment Authority (QIA), Qatar's sovereign wealth fund with total assets amounting to $475 billion as of 2023, to ramp up its investment in Vietnam.
Industries - Thu, October 31, 2024 | 4:43 pm GMT+7
FPT Retail earns $6.5 mln in Q3 profit, to expand FPT Shop chain
Vietnamese retail major FPT Retail made a profit after tax of VND165 billion ($6.52 million) in the third quarter of this year, while it incurred a loss of VND13 billion ($514,000) in the same period last year.
Companies - Thu, October 31, 2024 | 3:56 pm GMT+7
Germany’s PNE opens rep office for $4.6 bln offshore wind project in central Vietnam
Germany’s PNE AG, a leading developer of renewable energy projects, has shown its determination to proceed with a mega offshore wind power project in central Vietnam by opening a representative office there.
Energy - Thu, October 31, 2024 | 2:43 pm GMT+7
Saudi Arabian energy giant ACWA Power ready to invest $5 bln in Vietnam
Saudi Arabian private energy giant ACWA Power stands ready to invest up to $5 billion in Vietnam, a senior executive said Wednesday.
Industries - Thu, October 31, 2024 | 2:39 pm GMT+7
Effective M&A deal depends on thorough understanding, value addition potential: Kido exec
An effective M&A transaction depends on fully understanding the company being acquired in order to create added value, says Kido Group CEO Tran Le Nguyen.
Companies - Thu, October 31, 2024 | 1:22 pm GMT+7