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Industrial zone developers reap profits despite pandemic

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HCMC – While many businesses in various fields have been hit hard by the coronavirus pandemic, industrial zone developers in Vietnam have been flourishing. This sector is expected to maintain its growth as the country is seen as an attractive investment destination, especially after the Covid-19 crisis is over.

Sonadezi Corporation, which has a long history in the investment, development and trade of industrial park infrastructure in Vietnam, recently announced that its net revenue in the first quarter of the year expanded nearly 11% to over VND1 trillion and net profit inched up a staggering 42% to over VND150 billion over the same period last year.

Of these, Sonadezi’s revenue from industrial zone services rose by 66% to VND293 billion. Its after-tax profit totaled some VND271 billion, up 51% versus the year-ago figure, mainly thanks to the lease of Chau Duc Industrial Park.

Overall, Sonadezi wrapped up the first quarter reaching 30% of its 2020 profit target.

Nam Tan Uyen Joint Stock Corporation, another industrial zone developer, recorded its Q1 net revenue jumping by 6.4% to exceed VND41 billion, with sales generated from real estate trade activities reaching VND31 billion.

Long Hau JSC (LHG) also reported growth in revenue and profit in Q1, with net sales edging up some 19% to VND206 billion and gross profit surging over 20% to more than VND93 billion against the 2019 figures.

LHG’s revenue from offering land lots for lease to develop infrastructure rose 21% to VND159 billion, contributing 77% of the developer’s total revenue. The firm posted a 22% increase in revenue obtained by leasing industrial parks and residential areas, at nearly VND21 billion.

Other developers in the field including Phuoc Hoa Rubber JSC and Tan Tao Investment and Industry Corporation also saw their profits rising drastically.

Given the disruptions in the global supply chain caused by Covid-19, experts forecast that many firms may gradually move their factories out of China to reduce their reliance on this country. Vietnam, among other Southeast Asian nations, holds great potential to become a safe investment destination in the years to come, especially as it has been praised for its success in combating Covid-19.

By Le Hoang

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