Vietnam’s leading IP builder Idico applies for major bourse listing, targets $100 mln pre-tax profit

Idico Corporation, a major industrial park developer in Vietnam, has applied for listing its shares on the Ho Chi Minh Stock Exchange (HoSE) and kept its 2025 business plan unchanged with a pre-tax profit target of VND2.6 trillion ($100 million).

At the 2025 AGM held in Ho Chi Minh City on Friday, CEO Dang Chinh Trung stated that the industrial park leasing segment accounts for nearly 40% of the corporation’s total revenue and is the company's most profitable business.

Therefore, shareholder concerns about impacts of the U.S. reciprocal tariff are well-founded, he said, describing this as a major shock to industrial real estate, exporters, and trade. "Idico views this as an unprecedented challenge", he noted.

However, Trung emphasized Vietnam’s strategic position in trade and its participation in numerous free trade agreements.

"Domestically, policies to boost public investment, especially in infrastructure development, and facilitate the private economy have strengthened business confidence. As the private economy expands, the demand for industrial land is expected to rise accordingly," he told the AGM.

Given these factors, the Idico leader advised shareholders not to be overly pessimistic. The leadership is committed to developing a growth strategy based on strong financial foundations, careful investment decisions, and markets.

"Idico also aims to build a complementary ecosystem with accompanied services, bring values to partners."

Chairwoman Nguyen Thi Nhu Mai added that while the U.S. tariff policy will certainly affect Vietnam’s competitiveness in attracting foreign investment compared to other countries and directly impact Idico's industrial real estate, this segment makes up only 40% of the firm’s revenue.

The company also earns income from BOT (build-operate-transfer) infrastructure, energy, services, and commercial real estate. Furthermore, Idico maintains a healthy financial position with minimal reliance on debt, giving it a greater resilience than many companies that depend heavily on financial leverage, according to Mai.

“Idico has weathered many crises and emerged stronger. We are confident in our ability to overcome this challenge and deliver greater value to our shareholders,” she stated.

No adjustment to 2025 business plan

For 2025, Idico targets a consolidated revenue of VND8.92 trillion ($343 million), and a consolidated pre-tax profit of nearly VND2.6 trillion ($100 million), down 1% and 13% year-on-year, respectively.

The company aims to lease a total of 123.5 hectares of industrial park infrastructure and 3.3 hectares of ready-built factories.

Board member Tran Thuy Giang shared that between 2024 and early 2025, Idico has received investment approvals from the government for several projects including the Tan Phuoc (Tien Giang province), expanded My Xuan B1 (Ba Ria-Vung Tau province), Vinh Quang (Hai Phong city), and Phu Long (Ninh Binh province) industrial parks.

With these additions, the company now has 14 industrial parks with a total leasable land of nearly 3,300 hectares. Among these, the 226-hectare Vinh Quang Industrial Park is being developed as an eco-industrial model, which holds strategic significance in the company’s future direction.

High cash dividend under scrutiny

Over the past two years (2022-2023), Idico has maintained a generous cash dividend payout of 40% annually. For 2024, the company initially planned a 40% cash dividend but the board of directors has proposed raising the payout to 50%, consisting of 35% in cash and 15% in shares.

A 20% cash dividend has already been paid in advance. The proposed dividend for 2025 is 35%.

In light of recent concerns over U.S. reciprocal tariff measures, shareholders questioned whether the company could continue this high cash dividend policy. Chairwoman Mai said that the board of directors is giving this matter careful consideration, as the company still needs capital for its big investment plans.

CEO Trung added that with four newly approved industrial park projects covering 1,300 hectares in total, Idico is facing significant capital demands. It plans to invest approximately VND6.97 trillion ($268 million) in 2025, a sixfold increase over the previous year.

The investment will focus on land clearance and infrastructure development for the Tan Phuoc 1, expanded My Xuan B1, and Vinh Quang IPs, following the completion of legal procedures. The company will also allocate capital to expand energy infrastructure.

In parallel, Idico is accelerating progress on its residential and urban development projects as legal hurdles are gradually resolved. Notably, the Nhon Trach social housing project in the southern province of Dong Nai, comprising about 8,000 units, is scheduled to break ground in Q3.

In response to recent declines in stock price, shareholders asked whether the company plans to buy back shares. Trung said he acknowledges investor concerns but emphasized that Idico’s major shareholders are long-term investors who remain confident in the company.

Conducting a buyback during a downturn would reduce charter capital, which conflicts with the firm’s plan to increase its capital to VND4.5-5 trillion ($192.3 million). Therefore, the company currently has no plans for a buyback and remains focused on its long-term strategic goals.

Regarding the transfer of IDC shares from the Hanoi Stock Exchange (HNX) to the HoSE, board member Giang affirmed that this is an important matter directly affecting shareholder interest. Idico has submitted all required documentation to the HoSE, pending approval.

In the stock market, IDC closed Monday at VND36,400 ($1.4) per share.