Industrial real estate tickers eye bright prospects in 2025

Dang Tran Phuc, chairman of Hanoi-based stock investment advisory and training firm AzFin Vietnam, said that this year holds beneficial factors for real estate stocks, including a positive recovery in the real estate market, the gradual resolution of legal bottlenecks, and anticipated better supply.

Accelerated infrastructure development serves as a major driver to drive industrial real estate growth. Photo: baodautu.vn

Opportunities, however, will not be evenly distributed, with strong differentiation among companies in the sector.

For industrial real estate, Phuc advised investors to focus on companies with large cash reserves to pay high dividends and ready land for lease to seize profit growth opportunities.

This strategy provides dual benefits for investors. Phuc cautioned against companies that have exhausted their leasable land and depend on irregular gains from asset sales, as they will struggle to maintain high dividends. Phuc gave the remarks during a talk with the VIR last week.

Meanwhile, Tran Hoang Son, strategy director of VPBank Securities (VPBankS), said that Kinh Bac City Development Holding Corporation (KBC) is a noteworthy name for being a leading developer of industrial zone projects.

Kinh Bac owns projects across Vietnam in key industrial hubs across the country like Bac Giang, Haiphong, Danang, Ho Chi Minh City, and Long An.

In 2024, KBC's performance fell short of expectations due to difficulties in site clearance and legal procedures. However, Shinhan Securities expects positive changes in 2025 as FDI inflows continue to grow, bolstering land and industrial zone leasing demands. KBC's revenue for 2024 is therefore projected at $161.3 million, and 2025 at $386.9 million, with net profit for 2024 at $63 million, and $132 million in 2025.

Southern-based Sonadezi Chau Duc JSC (SZC) has yet to release its 2024 business results, yet BSC Securities forecasts SZC’s 2024 revenue to reach $53.6 million, up 57 per cent on-year, and net profit approximated $20 million, up 118 per cent on-year.

In 2025, SZC is expected to continue growth momentum, with a 12 per cent jump in Chau Duc IZ leasing rates over the next two years by virtue of improved transport infrastructure and current relatively low leasing prices in Ba Ria-Vung Tau province compared to other southern localities.

SZC is also anticipated to offer for lease 30–40 hectares per year for the next two years and complete the Huu Phuoc 1 residential area by 2025, following the clearance of 2.8 hectares and infrastructure completion.

BSC Securities projects SZC’s 2025 revenue at $69.5 million, up 30 per cent on-year, and net profit at $27.5 million, up 38 per cent on-year.

Meanwhile, IDICO Corporation (IDC) is regarded as one of the top profit earners in the industrial real estate sector.

In 2025, IDC’s IZ segment is expected to drive profit growth from the hand-over of 30 ha of clean land at Phu My 2 IZ in Q4 of 2024, and sales of two new IZ projects, Tan Phuoc 1 in the southern province of Tien Giang, and the My Xuan B1 IZ expansion in Ba Ria-Vung Tau province, which had completed legal procedures in 2024.

IDC’s 2024 revenue is forecast at $382.1 million, rising to $415 million in 2025, with net profit for 2024 at $85.3 million and 2025 at $93.5 million, up 10.9 per cent on-year.

In reality, most industrial real estate stocks have outperformed the benchmark VN-Index over the past year, with IDC up more than 14 per cent, Becamex IDC (BCM) over 16 per cent, and SNZ over 25 per cent. Many investors hope this trend will continue into 2025.

Son from VPBankS believes that FDI will continue to drive the positive outlook for the industrial real estate sector as the trend of shifting FDI from China becomes clearer.

Furthermore, Vietnam’s public investment push and the development of well-structured transportation infrastructure, with multiple highways launched, have been hailed by investors.

Son expects strong FDI inflows along the year, with improvements in economic growth and upgraded infrastructure.

Green initiatives are key to growth for industrial real estate Despite forecasts for 2025 to be a year of significant global geopolitical uncertainty, Vietnam remains well-positioned to capitalise on shifting global trade flows and evolving supply chains.

Savills publishes annual whitepaper on industrial real estate sector Savills Vietnam has released its annual November whitepaper, ‘Industrial Insider 2024: New Wave.’ John Campbell, director and head of Industrial Services at Savills, provided an in-depth analysis of the key trends influencing Vietnam's industrial sector in an interview with VIR’s Bich Ngoc.

Fresh hopes for real estate in 2025 Next year is anticipated to mark the beginning of a new development cycle for Vietnam’s real estate market, with expectations of continued recovery and growth, particularly in major cities like Hanoi and Ho Chi Minh City.