Vietnam builder PC1 to expand industrial park portfolio amid rising FDI

PC1 Group Joint Stock Company, listed on the Ho Chi Minh Stock Exchange as PC1, has plans to expand its industrial park (IP) portfolio by 1,500-3,000 hectares by 2030 as foreign investment in Vietnam continues to rise.

The firm is accelerating the investment process for phase two of Nomura-Hai Phong Industrial Zone (NHIZ) in the northern port city of Hai Phong, according to MB Securities (MBS).

PC1 acquired a 70% stake from Asia Dragon Trading at NHIZ late last year. Established in 1994 as a joint venture between Japan’s Nomura Holdings and the Hai Phong administration, NHIZ was the first foreign-invested IP in northern Vietnam.

In addition, through a joint venture with IP and logistics developer Western Pacific Group where PC1 holds a 30.8% stake, PC1 will develop several IPs in the northern provinces of Ha Nam and Bac Giang.

Bac Ninh, Bac Giang, and Ha Nam are three major industrial hubs in northern Vietnam, drawing a large number of foreign enterprises like Samsung, Honda, and JA Solar.

According to Savills Vietnam, rental rates at IPs in Bac Ninh and Ha Nam jumped 48% and 45% in 2023 against 2022, given high occupancy rates, undersupply, and higher standards demanded by tenants.

Registered foreign direct investment (FDI) in Vietnam soared 38.6% year-on-year to $4.29 billion in the first two months of this year, according to government data. Actual FDI rose 9.8% to $4.29 billion in the period.