An industry park in Ba Ria-Vung Tau province. Industrial park infrastructure development companies have not been affected much by the COVID-19 outbreak (Photo: cafef.vn)
HCMCity (VNS/VNA) - Industrial park infrastructure development companiescontinue to do well amid the COVID-19 pandemic, and the industrial propertysector is expected to thrive since Vietnam is considered among the mostattractive investment destinations post-pandemic.
SonadeziCorporation, whose main businesses include industrial park infrastructuredevelopment and leasing, reported net revenues of 1.078 trillion VND (46.5million USD) and net profit after tax of nearly 271 billion VND (11.7 millionUSD) in the first quarter of the year, a year-on-year increase of 11 percentand 51 percent.
Industrialpark leasing accounted for the largest proportion of revenues – of over 27percent -- with 293 billion VND (12.6 million USD), a year-on-year increase of66 percent.
LongHau Corporation, which owns Long Hau Industrial Park in Long An, also reportedan increase in both revenues and profits in the first quarter.
Netrevenue was 206.4 billion VND (8.9 million USD), up 19.7 percent year-on-year,and gross profit was more than 93.6 billion VND (4.02 million USD), up 20.6 percent.
Revenuesfrom infrastructure rent grew by 21 percent to nearly 159 billion VND, or 77percent of total revenues, while those from leasing factories and accommodation increased by over 22 percent to nearly28 billion VND.
Profitafter tax was 63.1 billion VND (2.7 million USD), an increase of more than 15percent year-on-year.
Accordingto real estate consultancy Jones Lang LaSalle, though the pandemic could causea delay in decisions following lease negotiations, the fundamentals of themarket remain strong and would recover after the epidemic subsides.
Itsaid companies looking to diversify their manufacturing portfolio outside Chinaare attracted to Vietnam thanks to its proximity to the former.
"Industrialpark developers remain confident that demand for land will continue to grow andtherefore land prices are expected to increase in line with the long-termpotential of Vietnam’s industrial segment," Stephen Wyatt, country headof JLL Vietnam, said.
Vietnam'sindustrial land prices rose by 12 percent year-on-year in Q1 as the shift outof China by manufacturing facilities continued.
Theyrose by 6.5 percent in the north to 99 USD per square metre and by 12.2 percentin the south to 101 USD.
Ready-builtfactories costing 3.5-5 USD per square meter per month are favoured bybusinesses as indicated by the high occupancy rates, according to the report./.
