Becamex IDC is a leading Vietnamese real estate conglomerate, listed on the Ho Chi Minh Stock Exchange under the ticker BCM. It focuses on developing industrial parks and urban service areas mostly within Binh Duong.
In the first half of 2024, BCM’s revenue increased by only 4.2 percent year-over-year, but its after-tax profit surged by 731 percent, reaching US$16.5 million. This was due to a sharp increase in profit for Vietnam Singapore Industrial Park or VSIP, a joint venture company with Singapore’s Sembcorp.
VSIP’s after-tax profit reached US$44.3 million, a 2.5-fold increase from the same period last year. VSIP’s growth came from increased rent prices in the first half of 2024.
Of note, the available industrial land for lease in the Southern region is decreasing, especially in Binh Duong province. BCM, however, still has 848 hectares of land available, with Cay Truong Industrial Park slated to start leasing in 2025.
Additionally, industrial land rental prices are on the rise. According to a report by CBRE, in the second quarter of 2024, Tier 1 industrial land rents in the North and the South reached US$134 and US$173 per square meter, up 4.5 percent and 1 percent year-over-year, respectively. This trend is expected to continue, which could provide a significant boost to BCM’s business results as demand for industrial space increases.
Of note, since the end of April until Tuesday, BCM’s stock price has risen by around 42 percent.
In May, the Deputy Prime Minister approved the reduction of state ownership of BCM from 95.44 percent to 65 percent by the end of 2025.
Disclosure: The author does not have any financial interest in BCM stock.
See also: Investing in Real Estate Projects in Vietnam for Foreign Firms 2024