The profit picture of the industrial park real estate sector brightened in the third quarter with many sharp increases. According to Agribank Securities (Agriseco), companies in the sector earned a total revenue of VND 13,000 billion and after-tax profit of VND 3,100 billion, up 23% and 40% respectively year-on-year. In the first nine months, the whole sector earned more than VND 41,700 billion in revenue and nearly VND 9,800 billion in profit.

Developers of large industrial parks reported the biggest profits. Leading the way was Becamex (BCM) with nine-month profit of nearly VND 2,270 billion, three times the same period and accounting for almost a quarter of the sector’s profit. Kinh Bac City Development Corporation (KBC) also posted a sudden profit of more than VND 1,560 billion, four times the same period.

On a smaller scale, Nam Tan Uyen (NTC) earned nearly VND 300 billion, 1.5 times the first nine months of last year. The developer of Long Hau Industrial Park (former Long An Province) reported profit 77% higher year-on-year, reaching VND 246 billion.

For rubber companies developing industrial park segments such as Vietnam Rubber Group (GVR), Phuoc Hoa (PHR) and Dong Phu (DPR), profits also moved positively. However, real estate contributes only a minority of their profit structure, with the main driver still coming from sharply higher latex prices.

“After the US announced new reciprocal tariffs, customers returned to negotiate and take over land. As a result, profits across the industrial park sector grew impressively,” the analysis team at MB Securities (MBS) said. Thanks to increased absorption, revenue and profit from utility services such as electricity and water also improved.

In nine months, many companies have completed or are close to their full-year profit targets. For example, Becamex and Idico reached 92% and 87% of their annual plans respectively, while Saigon VRG Investment exceeded its target by 32% and Long Hau by 70%. Besides strong business, some companies finished early because they set cautious targets due to concerns about tariff impacts.

In early April, the industrial park real estate sector was negatively affected by the tariff “shock” from President Donald Trump’s administration. Many companies then worried that demand and rental prices for land and ready-built factories would fall sharply as multinational corporations postponed production expansion plans.

However, according to MBS, concerns about the adverse impact of tariff policy are gradually fading. Vietnam maintains its competitive advantage as the US tariff rate on Vietnamese exports is not much different from other countries in the region. FDI flows have been positive and rental demand rebounded in the third quarter, pushing asking rents 4% higher year-on-year.

Agriseco analysts forecast that profits of companies in this sector will grow by about 5-10% this year and continue to rise next year. Growth will mainly come from companies with land banks ready for lease and memoranda of understanding signed in advance.

As of the end of the third quarter, Agriseco estimated the total unearned revenue of industrial park real estate companies at more than VND 61,000 billion, up 9% from the beginning of the year. Of this, about VND 12,000 billion belongs to rubber companies thanks to land converted to infrastructure and industrial park development. This is seen as a “nest egg”, reflecting revenue to be recognized in coming quarters when industrial parks and factories are completed and handed over.

Phuong Dong