Earnings accelerate

Despite concerns earlier this year that U.S. reciprocal tariffs could hurt foreign direct investment (FDI) flows and weigh on industrial park developers, Q3 and nine-month results remained robust.

Idico (IDC) reported Q3 revenue of VND2.87 trillion dong ($108.85 million), up 26% from a year earlier, and net profit of VND981 billion ($37.19 million), up 71%.

Nine-month revenue and profit reached VND6.43 trillion ($243.7 million) and VND1.81 trillion ($68.78 million), respectively, down 7% year-on-year.

Broker Agriseco said the improvement came from land-handover activities qualifying for one-off recognition.

In Q2, Idico continuously recorded lease contracts and MoUs from partners such as Hyosung, Vifon, and Topsun Logistic. The company also reported rising interest from Chinese manufacturers at its Phu My II and Que Vo II industrial parks (IPs).

Its long-term unearned revenue rose by more than VND800 billion from the start of the year to VND5.41 trillion ($205.19 million).

Becamex IDC (BCM), the dominant developer in the former Binh Duong province (now part of Ho Chi Minh City), posted Q3 net profit of VND422 billion ($16 million), up 16.2%, while nine-month profit surged nearly threefold to VND2.27 trillion ($86.03 million).

New leases at the Bau Bang expansion IP and gains from land transfers and joint ventures and associates supported results.

Income from joint ventures and associates rose 76% year-on-year to over VND1.34 trillion ($50.96 million), led by VSIP and Becamex IJC, with BW Industrial and Becamex Binh Phuoc also contributing.

Kinh Bac City Development (KBC) saw stronger revenue recognition from industrial land sales, property transfers, and factory leases, lifting Q3 net profit 55% to VND312 billion ($11.83 million). Nine-month profit rose almost four-fold to VND1.56 trillion ($59.24 million).

The company recently secured investment approvals for several new industrial and urban area projects, including Trang Due 3, Kim Thanh 2 phase 1, Que Vo 2 Expansion, Phu Binh, Song Hau 2, Binh Giang, Trang Cat urban area, and Trump International Complex.

To accelerate investment, KBC expanded its borrowings to more than VND27 trillion ($1.02 billion), 2.7 times higher than at the start of the year, while inventories rose more than 80% to VND25.1 trillion.

Other developers, including Saigon VRG (SIP), Long Hau (LHG), and Sonadezi (SNZ), also posted strong nine-month profits.

Sector-wide earnings rose 24% year-on-year in Q3 and 51% in the first nine months, driven mainly by BCM and KBC, according to another broker MBS.

Sector moves past tariff shock

MBS said the U.S. tariff shock in early April has eased, with the new tariffs effective from August 7 imposing a 19% rate on Vietnamese goods - similar to Thailand, Indonesia, the Philippines and Malaysia. India, meanwhile, faces a 50% rate, while average U.S. tariffs on Chinese goods remain high at around 47%.

Vietnam and the U.S. are still negotiating rules on transshipment. Goods classified as transshipped could face tariffs of up to 40%. The U.S. is also conducting a Section 232 investigation that could affect autos, semiconductors, timber and furniture, with a review period of up to nine months.

FDI disbursements have remained solid. Ministry of Finance data show implemented FDI rose 8.8% year-on-year in the first 10 months to $21.3 billion, the highest level in five years.

Industrial land markets are also stabilizing. CBRE reported average asking rents in Q3 rose 2% quarter-on-quarter and 4% year-on-year, with absorption improving from the previous quarter in both northern and southern regions, though still lower than a year earlier.

Developers are expected to benefit from provincial mergers and regulatory improvements. Bac Ninh has approved a revised provincial plan that adds major infrastructure projects, including Gia Binh International Airport, routes connecting the airport with major city centers (Hanoi, Hai Phong), adds four new IPs, and increases the area for three IPs.

The proposed Hai Phong-Hai Duong merger would accelerate infrastructure links to Hai Phong’s ports, the Dinh Vu-Cat Hai Economic Zone, Hai Phong Southern Coastal Economic Zone, and the Lach Huyen deep-sea port. A planned Lao Cai-Hanoi-Hai Phong rail link would also enhance logistics.

Policy and planning changes create new opportunities

Ho Chi Minh City is drafting its adjusted planning framework after its administrative mergers, with major inter-provincial transport projects involving the former Binh Duong and Baria-Vung Tau provinces set to be accelerated.

MBS said industrial park stocks have brighter prospects thanks to resilient FDI inflows, the return of tenant negotiations, faster land-bank expansion, and quicker compensation and infrastructure development.