Vietnam’s top industrial park owner VSIP sees 146% jump in H1 earnings

Vietnam-Singapore Industrial Park J.V. Co., Ltd or VSIP, the largest industrial park developer in Vietnam, reported a net profit of VND1,090 billion ($43.84 million) in the first half of this year, soaring 146% year-on-year.

The H1 earnings helped lift VSIP’s return on equity (ROE) to 6.61% from 3.13% a year earlier, the firm said in a filing to the Hanoi Stock Exchange.

As of June 30, VSIP, a joint venture between Singapore’s Sembcorp Development Ltd. and Vietnam’s Becamex IDC (HoSE: BCM), had its owner’s equity at VND16,503 billion ($663.7 million), up 16.6% year-on-year.

Its debt-to-equity ratio rose from 0.73x as of June 30, 2023 to 1.16x as of June 30, 2024, translating into total liabilities of VND19,143 billion ($770 million). Of the amount, outstanding bonds totaled VND2,970 billion.

Exchange data showed that VSIP had three undue bond batches worth VND3 trillion ($120.65 million), all with a maturity of seven years. They have coupon rates of 9% and 10.5% per annum.

VSIP developed the first industrial park (IP) in the southern province of Binh Duong in 1996. Its portfolio now comprises 13 IPs and townships covering a combined 10,600 hectares in six provinces across Vietnam.

According to Vietcap Securities, VSIP now has some 7,600 ha of IPs, accounting for 8% of the total IP area in Vietnam. It has plans to develop 14 other IPs.

The company boasts that it has attracted some $15 billion in investment capital from tenants from 30 countries and territories so far.