VSIP Reports 146% Surge in H1 Profits Amid Expanding Industrial Park Portfolio

• Sommana Yan
• 21 October 2024
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Vietnam-Singapore Industrial Park J.V. Co., Ltd (VSIP), Vietnam’s leading industrial park developer, reported a significant 146% increase in net profit, reaching USD 43.84 million in the first half of this year, driven by robust growth in its industrial park operations. This performance boosted the company’s return on equity (ROE) to 6.61%, up from 3.13% in the same period last year, according to theinvestor.vn​ dated 05 September 2024.

As of 30 June 2024, VSIP—a joint venture between Singapore’s Sembcorp Development Ltd. and Vietnam’s Becamex IDC (HoSE: BCM)—had an owner’s equity of USD 663.7 million, reflecting a 16.6% year-on-year increase. The company’s debt-to-equity ratio climbed from 0.73x to 1.16x over the past year. However, the company has increased its debt, which means it owes more money than it did a year ago. The increase in its debt-to-equity ratio shows this. The total amount of money the company owes is now USD 770 million. This includes USD 120.65 million in bonds that the company has issued. These bonds are like IOUs that the company must pay back in seven years. The company will also need to pay interest on these bonds at a rate of 9% or 10.5% per year. This means that the company will need to pay a certain amount of money to the bondholders every year until the bonds are paid back.

Established in 1996, VSIP launched its first industrial park in Binh Duong province and has since expanded its portfolio to 13 industrial parks and townships spanning 10,600 hectares across six provinces in Vietnam. Currently, VSIP manages approximately 7,600 hectares of industrial park area, representing 8% of the total industrial park land in the country, and has outlined plans to develop 14 additional parks. The company has attracted around USD 15 billion in investment capital from tenants hailing from 30 countries and territories, further solidifying its position as a key player in Vietnam’s industrial park sector.

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