Southern Vietnam industrial park tops profit target by 31%

Long Hau JSC, a major industrial real estate developer headquartered in Long An province, posted after-tax profits of VND167 billion ($6.83 million) in 2023, exceeding the year target by 31%.

The company’s Long Hau Industrial Park in the eponymous commune attracted 12 new investment projects last year, while eight projects saw capital expansion. Of the 20 projects, around 60% are renting ready-built factories.

Bui Le Anh Hieu, director of business marketing and project engineering at Long Hau JSC, said that the firm was currently expanding the IP by 90 hectares and plans a further expansion of 150 hectares towards the Long An International Port.

The expansion will help production facilities better connected to port systems in Ho Chi Minh City and Long An province, he said.

The firm also continues its industrial real estate development activities in the southern province of Vinh Long with the 200 hectare An Dinh Industrial Park in Mang Thit district.

This will be the southwestern region's "first typical service, industrial park", serving as a gathering location for raw materials needed for processing industries, manufacturing, logistical services, agricultural production, and garment products.

This year, the Long Hau IP will continue to expand product lines of ready-built factories for rent in varied locations, as well as provide comprehensive customer support services to serve local and foreign investors, Hieu said.

Its manufacturing area is designed as a shared area but allows tenants to operate factories independently. Tenants can register to set up export processing companies.

Long Hau IP’s workshop areas for rent range from a few hundred to several thousand square meters. Furthermore, its tenants can quickly move to another premise when they need to increase or reduce production scale. “This enables investors to respond quickly to market changes,” Hieu said.

He located the IP’s growth in the context of Vietnam becoming a top destination for many investors with its advantageous location adjacent to China, competitive labor costs and attractive factory rentals.

Furthermore, Vietnam's logistics sector was developing rapidly with the government’s commitment to investing in infrastructure at the region's top high level, he said.

In the coming time, the IP expects to attract manufacturing projects in pharmaceuticals, medical equipment, food processing and essential consumer goods as also goods distribution centers, thanks to the advantage of being located adjacent to HCMC, which has convenient logistics infrastructure, Hieu added.