Viglacera to expand industrial park portfolio with new subsidiary in northern Vietnam

Viglacera, Vietnam's leading construction material producer and industrial real estate developer, will set up a company in the northern province of Hung Yen to expand its industrial park portfolio.

According to a resolution passed at Viglacera’s AGM on June 10, the corporation will contribute capital to establish Viglacera Hung Yen JSC with a charter capital of VND350 billion ($13.4 million), holding a majority stake of 51%.

The capital injection plan was initially approved in 2023. The move marks a new step in executing Viglacera’s strategy to expand its industrial land bank, which currently includes 16 industrial parks, or over 4,500 hectares.

In 2024, Viglacera secured the government’s in-principal approval for three new industrial park projects which will add roughly 839 hectares to its industrial park portfolio. They are Doc Da Trang IP in the south-central coastal province of Khanh Hoa, the second phase of Song Cong II IP in Thai Nguyen province, and the first phase of Tran Yen IP in Yen Bai province, both in northern Vietnam.

The firm plans to venture to other localities like Bac Ninh, Phu Tho, Quang Ninh, Thai Binh, and Lang Son, all in northern Vietnam, aiming to grow its total land bank to 6,000-7,000 hectares.

Viglacera is investing in infrastructure development, accelerating digital transformation, and adopting green technologies to enhance its industrial parks' competitiveness.

In the social and worker housing segment, the corporation will continue to survey and launch new projects in the northern provinces of Ha Nam, Phu Tho, Quang Ninh, and Bac Ninh, the capital city of Hanoi, and other localities with rising demand.

From 2025 onward, it will prepare investments in Thai Binh, Phu Tho, and other high-potential provinces.

Regarding state divestment, Vietnam Electrical Equipment JSC (Gelex), the biggest shareholder, said the company currently has no plans to increase its ownership at Viglacera. Gelex and Viglacera are actively looing for investors to join as strategic shareholders.

In parallel with the divestment roadmap, Viglacera will this year finalize procedures to establish, inject capital into, or scale up capital at several subsidiaries. The company intends to negotiate and carry out procedures to raise its stake at Vietnam Float Glass Co., Ltd. (VFG) to a controlling level or higher.

For 2025, Viglacera targets consolidated net revenue of nearly VND14.44 trillion ($552.66 million), up 19% from 2024. Consolidated pre-tax profit is projected to reach VND1.74 trillion ($66.59 million), a 7% increase.

In Q1/2025, Viglacera posted revenue of VND2.85 trillion ($109.08 million), up 8.2% year-on-year. Pre-tax profit rose 19.9% to VND412.8 billion ($15.8 million), while gross margin improved from 28% to 29.5%.

According to a resolution endorsed by the parliament on June 12, Hung Yen, near the Red River, will be merged with neighboring Thai Binh province to form Hung Yen province this year. The political-administrative center will be located in present-day Hung Yen.

The Trump family business is set to receive $5 million in license fees for a mega golf course complex in Hung Yen province, according to a financial disclosure report released by the U.S. Office of Government Ethics.

The report shows that Hung Yen Hospitality Services JSC, a subsidiary of Vietnamese developer Kinh Bac City Development Holding Corporation (HoSE: KBC), will pay the fee to DT Marks Vietnam LLC.

This entity is 79% owned by DTTM Operation LLC, a Trump-related trademark management firm, and 20% owned directly by the Trump family.