VSIP Industrial Parks’ Profits Decrease
The profits of the owners of the three VSIP industrial parks in Binh Duong, as well as the parks in Bac Ninh and Hai Phong, have decreased by over half in the first six months of the year.
Lower Profits, Increasing Ownership Capital
According to a recent report, the Vietnam-Singapore Industrial Park Joint Venture Company (VSIP) recorded a post-tax profit of over 440 billion VND in the first six months. This represents a decrease of over 55% compared to the same period last year. Despite the decline in profits, the company’s ownership capital still increased by over 6%, reaching approximately 14,100 billion VND. However, the amount of debt to be repaid increased by 21%, totaling around 10,300 billion VND at the end of June. Out of this, bonds accounted for one-tenth, around 1,000 billion VND.
Debt from Bond Issuance
The debt originates from a batch of bonds issued in July 2021, with a maturity period of 7 years. These bonds have an annual interest rate of 9% and regular interest payments. The purpose of the bond issuance was to invest in the VSIP III – Binh Duong, VSIP Nghe An projects, and expand the scale of the company’s operating capital. In 2022, the company spent over 84 billion VND to pay interest on these bonds.
Business Results for the First Half of the Year
The business results for the first half of this year for VSIP show a setback compared to the previous period. Since 2020, the company’s post-tax profits have consistently increased every year. In 2022 alone, profits soared to over 2,200 billion VND, a nearly 26% increase compared to 2021.
About VSIP
The Vietnam-Singapore Industrial Park Joint Venture Company was established in 1996 through a partnership between the Investment and Industrial Development Corporation (Becamex IDC) and a consortium of Singaporean investors led by Sembcorp Development. Currently, the company operates 10 industrial parks nationwide.
The company started with the first VSIP industrial park in Binh Duong, then expanded to VSIP II and VSIP III. In the northern region, the company has built industrial parks in Bac Ninh, Hai Phong, and Hai Duong. The VSIP brand is also present in the central region, with parks in Quang Ngai, Nghe An, Quang Tri, and Binh Dinh provinces.
To date, VSIP has attracted approximately 880 customers from 30 countries and territories to their industrial parks, with a total foreign investment of 18 billion USD. These projects have created 300,000 jobs.
Becamex IDC’s Investment in VSIP
According to the consolidated financial report for the second quarter, Becamex IDC announced an investment value of over 5,300 billion VND in the VSIP joint venture by the end of June. In their annual general meeting last year, Becamex IDC set the goal of taking the VSIP joint venture public in the future to further its development.
Source: Business Today