KBC rides high in industrial property

The corporation, known as KBC, boasts 24 industrial park (IP) projects across the country and maintains an industrial land bank of over 6,386 hectares.

Over 20 years of operation, the company’s projects have received attention from investors both domestically and internationally, especially large foreign-invested enterprises.

"Positive and market-sensitive approaches and IP investors’ network will bring high efficiency in accessing and attracting high-tech projects. In addition, the investor must have strategies and policies for each specific project, flexibly changing the methods to approach, encourage, and promote initiatives..” - Dang Thanh Tam Chairman, KBC

In the northern province of Bac Ninh, KBC has successfully invested in two ventures, Que Vo IP and Nam Son Hap Linh IP, with total funding of nearly $3 billion. Many large corporations worldwide have pumped money into these parks, such as Foxconn Canon, and Goertek.

In the northern port city of Haiphong, Trang Due IP is a bright spot in attracting foreign investment with big names such as LG Group. According to Haiphong Information Portal, LG has funded large-scale seven projects in Trang Due IP, with the aim of producing high-tech products including audiovisual equipment, auto part, and home appliances.

The total capital of LG’s projects has reached $8.2 billion, accounting for 85 per cent of the total foreign investment in IPs and economic zones, and 37 per cent of the total for the entire city.

In addition, LG’s projects in Haiphong have created a network of satellite initiatives and production-supporting projects, with over 50 businesses investing in Trang Due IP with the total capital of over $1 billion. The total number of employees working in LG’s projects is over 24,300, including nearly 1,000 foreign workers.

Currently, Trang Due IP has a total area of 1,088ha. Phases 1 and 2 have been fully occupied with over 100 projects, of which 85 per cent are foreign-invested. The total capital in Trang Due IP in both phases is $9.6 billion, with an average funding rate of $32 million/ha, four times higher than the average rate in Haiphong.

In 2022, KBC continued to implement Trang Due IP 3, with a scale of 688 ha. Currently, the project is in the process of carrying out legal procedures to provide land for investors. This third phase continues to encourage ventures in electronics, electronic components, and precision mechanics, especially large ones such as LG’s satellites.

The attraction of KBC’s Quang Chau IP is also notable. The IP has been fully occupied since the beginning of 2022, attracting 42 ventures, including 38 foreign-invested ones, with total capital of up to $3.5 billion and creating 67,000 jobs.

Typical projects include large-scale initiatives by corporations such as Foxconn, Luxshare-ICT, JA Solar, Siflex, Samkwang, and Crystal Martin.

There are still many overseas investors contacting and surveying land leases at Quang Chau IP to implement medium- and large-scale ventures, including many well-known investors as satellite suppliers for global corporations.

Due to the high demand for land rental and the existing area being fully occupied, KBC has implemented procedures to expand Quang Chau IP to partially meet foreign investors’ land lease demands.

Goertek factory in Que Vo IP, Bac Ninh province

In November 2022, the prime minister approved the policy for an additional 90ha at Quang Chau IP, managed by Saigon-Bac Giang (SBG). Therefore, the total area of Quang Chau IP has been expanded to 516ha.

Many investors who previously signed an MoU to reserve land plots in this area quickly signed land lease contracts with SBG to carry out ventures. The additional area of Quang Chau IP was fully occupied with transaction documents for land reservation and lease with foreign investors by early 2023. Currently, SBG is actively completing legal procedures and infrastructure construction to hand over land to investors.

KBC chairman Dang Thanh Tam said, “Positive and market-sensitive approaches and IP investors’ network will bring high efficiency in accessing and attracting high-tech projects. In addition, the investor must have strategies and policies for each specific project, flexibly changing the methods to approach, encourage, and promote initiatives.”

According to international investors, KBC IPs are considered clean and friendly. It is evaluated as a dedicated and responsible investor, ready to listen to requests and support them at the highest level. With such efforts, the company is receiving trust and support to continue its efforts and contribute to the socioeconomic development of the country.

On Vietnam’s stock market, KBC is one of the most appreciated stocks in the industrial property group. In Q2/2023, it achieved revenue of $85 million, marking an increase of over 420 per cent on-year, while net profit after taxes (NPAT) sat at $20 million in compare with net loss of $14 million in Q2 of last year.

The strong earnings in the second quarter were mainly driven by increase IP land sales handovers at 625 per cent over the same period last year, contributing to 95 per cent of the total revenue.

Accumulated in the first half of 2023, KBC achieved a revenue of $180 million, increasing around 295 per cent on-year, and NPAT reached $76 million, 800 per cent over the same period last year. This marked 47 per cent and 45 per cent of the 2023 goals respectively.

Ending Q2/2023, KBC handed over 128ha, equal to 70 per cent of the full-year forecast. In the second half of the year, it will hand over up to 100ha at Quang Chau, Tan Phu Trung, and Nam Son Hap Linh IPs, as well as seek to take over the Phu Ninh urban zone project after arranging land use fees.

Thus, KBC can fulfil its ambitious business plan this year of $340 million in revenues and $169 million in NPAT.

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