Kinh Bac City Development pays extra $265 mln in land use fee for mega urban project in northern Vietnam

Kinh Bac City Development Holding Corporation (HoSE: KBC), a leading industrial real estate developer in Vietnam, has paid an additional VND6.85 trillion ($265 million) in land use fees for a major urban development project in the northern port city of Hai Phong.

With this additional funding, the total land use fees allocated by KBC for its VND69.04 trillion ($2.7 billion) Trang Cat urban area project have reached nearly VND17.8 trillion ($688 million), the company reported.

The Trang Cat project is being developed by KBC’s subsidiary, Trang Cat Urban Development Co., and will cover nearly 585 hectares in Hai An District, within the Dinh Vu-Cat Hai Economic Zone. It is located near the expressway that connects Hai Phong with Quang Ninh and Hai Duong provinces, as well as the capital city of Hanoi.

The development will include more than 25,800 housing units, comprising 8,655 terraced houses, 3,256 villas, 7,178 apartments, and over 5,940 social housing units. It is projected to accommodate more than 90,110 residents.

KBC stated that it plans to break ground on a 50-hectare social housing site in May.

In terms of broader business performance, KBC reported leasing 68 hectares of industrial land in the first quarter, representing over 30% of its full-year target.

Despite recent trade tensions and tariff uncertainties, some investors have temporarily paused their plans but have neither canceled nor returned leased land to the company, the firm said.

Hai Phong is increasingly appealing to local real estate giants. Vinhomes (HoSE: VHM), a subsidiary of Vingroup, has made a significant mark with the Vinhomes Royal Island urban area project.

Hoang Huy Group, a local powerhouse, is developing a range of housing projects, including Hoang Huy Commerce and Hoang Huy Riverside, contributing to the affordable and mid-range housing segment.

Other notable names such as Him Lam and BRG Group are also investing in Hai Phong’s urban expansion, reinforcing the city's role as a dynamic growth engine in northern Vietnam.

KBC shares closed at VND20,800 ($0.8) each on Friday.