Industrial real estate: Positive signals from businesses

Many positive signals

As of April 20, 2025, a number of industrial park real estate enterprises have announced their financial reports for the first quarter of 2025 with positive business results.

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

In the first quarter of 2025, industrial park real estate businesses recorded positive business results. Illustrative photo

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

In the first quarter of 2025, the cost of service increased by 96% compared to the same period in 2024 at nearly VND 226 billion. Meanwhile, the cost of sales was at VND 12 billion, 88 times higher than the same period in 2024, and the cost of business management increased by 130% compared to the same period last year at VND 21 billion.

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

IDICO Urban and Housing Development Investment Joint Stock Company (Stock code: UIC) also recorded positive business performance when net revenue in the first quarter of 2025 was more than 736 billion VND, an increase of 17% over the same period last year. In the first quarter of 2025, the company's after-tax profit was 18.7 billion VND, an increase of 78% compared to the first quarter of 2024. As of March 31, 2025, the undistributed after-tax profit of IDICO Urban and Housing Development Investment Joint Stock Company was 244.4 billion VND.

The positive business results of the above-mentioned industrial real estate enterprises show that this segment is entering a new development phase with strong growth potential.

Industrial real estate will be a bright spot in 2025

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

It is expected that in the period of 2024 - 2027, Vietnam will have about 15,200 hectares of industrial land and more than 6 million square meters of warehouses put into operation. Vietnam is becoming an increasingly attractive destination for large corporations thanks to its stable investment environment and the increasingly improved quality of FDI capital flows.

Notably, instead of focusing on large industrial parks with well-developed infrastructure, many investors now tend to choose small and medium-sized industrial parks, with a scale of 10 - 20 hectares or even less than 5 hectares, thanks to the advantages of cheap rental prices and convenient locations, close to main traffic routes.

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

In addition, industrial land rental prices still maintain an impressive growth trend. In the period from 2020 to mid-2024, rental prices in the North increased by about 35%, while in the South, the increase was up to 67%. In 2024 alone, rental prices in many industrial parks in the South increased by an average of 10 - 18%, showing that the demand for industrial land rental is still very high, despite the sluggishness of many other real estate segments.

According to the latest report from the Foreign Investment Agency (Ministry of Finance), the total registered foreign direct investment (FDI) in Vietnam as of March 31, 2025 reached 10.98 billion USD, recording an impressive growth of 34.7% over the same period last year. This is a positive signal showing the attractiveness of Vietnam's investment environment in the context of 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