- News in Vietnam
- 27 September 2021
Industrial park stocks go up
Since the deep drop according to the market in July, industrial park stocks have had impressive acceleration phases. However, investors are concerned that in the context of the complete epidemic, will these industry enterprises still operate effectively soon.
The share price of the industrial park used to have a profound fall in the first half of July, when KBC fell by 25%, from 40,000 VND/share to 30,000 VND/share, GVR decreased by 21.6% from 37,000 VND/share to 29,000 VND/share.
Industry stocks fell rapidly in line with the market. Besides, investors were worried that the epidemic would be complicated, especially in the southern provinces, which would significantly affect the business model of this industry group.
However, the rapid recovery in the past time, in the context that the stock market, in general, has not had a clear trend, shows that large cash flows are prioritizing industrial park stocks, which means the expectation of a boom explosion of this industry group in the post-COVID-19 pandemic.
The need to increase production to meet the demand for goods and move factories from China to Vietnam to help domestic enterprises benefit. Some large companies plan to move part of their production activities from China to Vietnam, such as Microsoft, Google, Panasonic, Sharp, Foxconn.
Vietnam still maintains a competitive advantage when the rental price of industrial parkland is lower than that of some countries in the region, precisely about 25-30% lower than Indonesia and Thailand, which are countries that benefit from FDI inflows. Industrial parkland prices in Vietnam are expected to grow by 7-8% in the southern region and 5-6% in the northern area in 2021.
In addition to low operating costs, Vietnam has reduced corporate income tax and enjoys other incentives such as tax exemption for 2 to 4 years, tax reduction for 3 to 15 years, and import tax exemption.
Vietnam’s new industrial park plan for 2021-2025 will also help increase the area of new industrial parkland in the future. Especially for large industrial parks with a total land area of over 1,000 hectares to meet the requirements of FDI enterprises.
Not only that, the Government’s promotion of public investment disbursement, focusing on infrastructure development such as North-South expressway, Bien Hoa – Vung Tau expressway, Dau Giay – Phan Thiet expressway, Cai Mep port – Thi Vai, and Gemalink, also help to connect more conveniently with industrial zones.
The demand for land and industrial park infrastructure has also increased accordingly, helping the business results of many listed IP real estate enterprises to achieve substantial growth in the first half of this year.