Industrial real estate: Positive signals from businesses

Some industrial park real estate businesses have announced their first quarter 2025 business results with positive profit growth compared to the same period last year.

Many positive signs

As of April 20, 2025, several industrial real estate companies have released their Q1 2025 financial reports with positive business results.

Specifically, Nam Tan Uyen Industrial Park Joint Stock Company (Stock Code: NTC) recorded net revenue of over VND 134 billion in the first quarter of 2025, nearly 2.3 times higher than the same period in 2024. After deducting expenses and capital, the company reported a net profit of nearly VND 69 billion in the quarter, an increase of over 6% compared to the same period last year. As of March 31, 2025, Nam Tan Uyen Company's undistributed net profit was over VND 569 billion.

In the first quarter of 2025, industrial real estate businesses recorded positive business results. (Illustrative image)

Another real estate company, Sonadezi Chau Duc Joint Stock Company (Stock code: SZC), recorded net revenue of nearly VND 422 billion, a 95% increase compared to Q1/2024.

In the first quarter of 2025, the cost of goods sold for services increased by 96% compared to the same period in 2024, reaching nearly VND 226 billion. Meanwhile, selling expenses were VND 12 billion, 88 times higher than the same period in 2024, and administrative expenses increased by 130% compared to the previous year, reaching VND 21 billion.

As a result, Sonadezi Chau Duc Joint Stock Company reported a net profit after tax of VND 126.3 billion in the first quarter of 2025, a 94% increase compared to the same period last year. As of March 31, 2025, the undistributed net profit after tax of Sonadezi Chau Duc Joint Stock Company was nearly VND 670 billion.

IDICO Housing and Urban Development Investment Joint Stock Company (Stock Code: UIC) also recorded positive business results with net revenue in Q1/2025 exceeding VND 736 billion, a 17% increase compared to the same period last year. In Q1/2025, the company's after-tax profit reached VND 18.7 billion, a 78% increase compared to Q1/2024. As of March 31, 2025, the undistributed after-tax profit of IDICO Housing and Urban Development Investment Joint Stock Company was VND 244.4 billion.

The positive business results of the aforementioned industrial real estate companies indicate that this segment is entering a new phase of development with strong growth potential.

Industrial real estate will be a bright spot in 2025.

Many experts predict that industrial real estate will continue to be a bright spot in 2025 thanks to the stable growth of foreign direct investment (FDI), along with competitive advantages such as high labor productivity and lower production and energy costs compared to many countries in the region.

It is projected that between 2024 and 2027, Vietnam will have approximately 15,200 hectares of industrial land and over 6 million square meters of warehouses and factories put into operation. Vietnam is increasingly becoming an attractive destination for large corporations thanks to its stable investment environment and the improving quality of FDI flows.

Notably, instead of focusing on large industrial parks with well-developed infrastructure, many investors are now tending to choose small and medium-sized industrial parks, ranging from 10-20 hectares or even under 5 hectares, thanks to the advantages of low rental costs and convenient locations near major transportation routes.

As of 2024, high occupancy rates in industrial parks continue to be a notable highlight in the market. In the North, this figure ranges from 81-83%, while the South records occupancy rates as high as 92%. These figures not only reflect strong demand for industrial space but also create a stable and sustainable cash flow foundation for industrial park developers.

Furthermore, industrial land lease prices continue to maintain an impressive growth trend. Between 2020 and mid-2024, lease prices in the North increased by approximately 35%, while in the South, the increase reached 67%. In 2024 alone, lease prices in many industrial parks in the South increased by an average of 10-18%, indicating that demand for industrial land remains very high, despite the slowdown in many other real estate segments.

According to the latest report from the Foreign Investment Agency ( Ministry of Finance ), total registered foreign direct investment (FDI) in Vietnam as of March 31, 2025 reached US$10.98 billion, recording an impressive growth of 34.7% compared to the same period last year. This is a positive sign showing the attractiveness of Vietnam's investment environment amidst many challenges in the global economy.

Ngan Nga

Source: https://congthuong.vn/bat-dong-san-cong-nghiep-tin-hieu-tich-cuc-tu-cac-doanh-nghiep-383968.html