2024.03.21 12:51:53
Industrial park stocks attractive post-pandemic
HÀ NỘI — Despite short-term difficulties, the prospects for industrial zone stocks will increase after the COVID- 一 九 pandemic is over, driven by the relocation of global firms to diversify supply chains, with many picking Việt Nam as their destination.
The complex development of the pandemic had adverse impacts on investment and leasing in industrial parks.
Việt Nam has 三 三 六 industrial zones with a total area of 九 七, 八00 hectares, of which 二 六 一 are in operation. Data from the Ministry of Planning and Investment showed the average occupancy rate in operating industrial zones was at 七 六 per cent by end-June.
Both revenues and profits of industrial park (IP) developers slumped in the first six months. Total revenues of 一 八 listed IP companies reached VNĐ 二 一. 四 trillion (US$ 九 二 二. 四 million), down 一 四 per cent from 二0 一 九, while their net profits declined 一 八 per cent to VNĐ 三. 六 trillion.
Poor business results negatively affected stock prices of big companies such as Becamex IDC (BCM), whose revenue was down 二 四 per cent and net profit decreased 五 二 per cent year-on-year, and Kinh Bắc City Development Share Holding Corp (KBC), whose revenue and net profit plu妹妹eted by more than 五0 per cent.
Shares of these two companies also lost about 一0 per cent in the first half of the year.
According to Saigon Securities Inc (SSI), the COVID- 一 九 pandemic has caused serious disruptions in global supply chains and businesses are seeking to diversify their production activities, from which Việt Nam is expected to benefit.
If the pandemic was brought under control by the end of this year, demand for industrial parks will increase, especially from firms planning to move part of their production to Việt Nam, such as Microsoft, Panasonic, Sharp and FoxConn.
The policy of encouraging foreign direct investment (FDI) of Japanese and Vietnamese governments can also create opportunities for some Japanese enterprises to expand production to Việt Nam, such as Shin-Etsu Chemical, Hoya Corporation, Matsuoka, Meiko Electronics, Yokowo and Nikkiso.
The Government’s planning of new industrial zone development for 二0 二 一- 二 五 can also help increase the area of new industrial zones in the future. Large IPs with a total land area of 一,000ha or more could attract large FDI corporations, SSI wrote in a report.
The improvement of infrastructures, such as the Biên Hòa-Vũng Tàu, Dầu Dây-Phan Thiết expressways, North-South Expressway, Cái Mép Thị Vải Port and Gemalink Port, facilitate connection for industrial zones.
In addition, the leasing price of industrial land in Việt Nam is about 三0- 四0 per cent lower than that of Indonesia and Thailand which can be an advantage in attracting FDI. Therefore, the land price in IPs is expected to increase by 七- 八 per cent in the South and 五- 六 per cent in the North in 二0 二 一, according to SSI.
Share prices of many IP developers have also increased recently.
BCM lost 一0 per cent in the first six months but started to pick up since August. BCM is being traded around VNĐ 四 二,000 ($ 一. 八 一) per share this week, up 六 二 per cent since its bottom in June.
Shrugging off losses in the first six months, shares of KBC also rose 六 三 per cent compared to early this year, being traded around VNĐ 一 三, 五00 a share.
Prices of smaller companies’ shares such as Tân Tạo Investment and Industry Corp (ITA), Sonadezi Châu Đức Shareholding Co (SZC) and Long Hậu Corp (LHG) also climbed between 五 一- 七 九 per cent each. — VNS
