Kinh Bac Urban Development Corporation - JSC (stock code KBC) has signed a memorandum of understanding (MOU) to lease more than 100 hectares of land in Trang Due 3 Industrial Park; in which, a large Korean customer plans to lease 80 hectares.
According to a recent assessment by Vietcap Securities, LG Group (Korea) is likely to be the first customer to lease large-scale land at the Trang Due 3 Industrial Park project (Hai Phong) invested by Kinh Bac Urban Development Corporation - JSC (stock code KBC - HoSE).
Currently, LG Group is focusing its resources on expanding its production facilities in Vietnam and many suppliers and subsidiaries of LG Group such as LG Innotek are operating in Trang Due 1 & 2 industrial parks, also invested by Kinh Bac Urban Area. The success in creating a complete production and business environment for Korean investors in these two industrial parks is a strength that helps Kinh Bac Urban Area attract many Korean enterprises that intend to invest in new projects or expand production and business in the Northern region.
Trang Due 3 Industrial Park has a scale of up to 687 hectares, double the scale of Trang Due 1&2, and is located in Dinh Vu - Cat Hai Economic Zone, which has more preferential tax policies (corporate income tax, import-export tax, preferential value-added tax) compared to other industrial park areas.
Although this project is waiting for the Prime Minister to approve the investment policy, Kinh Bac Urban Area said there are already many customers waiting to rent as soon as final approval is received.
According to the assessment of many financial institutions, Trang Due 3 Industrial Park will soon receive approval in the context of Hai Phong City's "urgent" need for industrial land to meet the needs of expanding production and business of domestic and foreign enterprises.
Notably, Kinh Bac Urban Area has signed a memorandum of understanding (MOU) to lease more than 100 hectares of land at Trang Due 3 Industrial Park; of which, a large Korean customer is expected to lease 80 hectares with a rental price of 130 - 140 USD/m2, according to MB Securities.
Based on the progress of current projects, Vietcap Securities forecasts that the land lease turnover of Kinh Bac Urban Industrial Park this year will be at 59 hectares, and is expected to skyrocket to 135 hectares in 2025.
The main growth driver comes from the expectation that Trang Due 3 Industrial Park will officially come into operation and hand over about 50 hectares of land here. At the same time, industrial clusters in Hung Yen are expected to hand over about 10 hectares of land, along with continued rental revenue at Nam Son Hap Linh Industrial Park (about 50 hectares), Tan Phu Trung Industrial Park (about 10 hectares)...
In addition, Kinh Bac Urban Area's business results next year will also be supported by the expected handover of 245 hectares of land in Nam Tan Lap Industrial Park (20 ha in size). This project is being invested and developed by Saigontel Long An - an affiliated company in which Kinh Bac Urban Area owns 38,4% of shares, and the project is currently in the process of compensation and site clearance.
Source: Industry and Trade Magazine
