On June 27, the Vietnam Rubber Group (VRG) held a conference reviewing industrial and cluster park investment (KCN/CCN) up to 2024 and outlining the development orientation for 2025–2030, with a vision toward 2035. The industrial park sector remains one of VRG’s core business areas, playing a crucial role in optimizing land use efficiencyand fulfilling both economic and political mandates assigned to the Group.
Strong Growth in 2015–2020
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VRG began investing in industrial infrastructure in 1995. By the early 2000s, as key southern provinces expanded industrial zones to attract foreign investment, many localities planned industrial parks on converted rubber land—an approach that offered ready infrastructure, low compensation costs, and fast site clearance.
Today, VRG has invested in 11 companies operating in this sector, managing 14 industrial parks with a total area of 4,126.5 hectares, primarily located in Binh Duong, Binh Phuoc, Dong Nai, Tay Ninh, Gia Lai, and Hai Duong.
These zones have attracted over 710 projects, including 394 FDI projects and 316 domestic projects, with total investment capital of USD 3.815 billion and VND 34,295 billion. They have generated VND 18,243 billion in revenue, VND 7,625 billion in post-tax profits, created approximately 200,000 jobs, and contributed VND 7,052 billion to the state budget.
VRG’s dividend income from member companies in the industrial sector has reached over VND 3,036 billion, averaging 253% of invested capital, reflecting strong financial returns since 2018.
Sustained Contribution to Local Economic Development
Industrial park operations on rubber-converted land have not only enhanced VRG’s efficiency but also stimulated socio-economic growth and employment in host provinces. The Group’s projects support local security, defense, and social stability, underscoring the dual economic and social value of VRG’s investments.
According to Mr. Do Huu Phuoc – Deputy CEO of VRG, industrial zones have significantly modernized Vietnam’s infrastructure system, contributing to industrialization, trade, services, and investment attraction, while ensuring efficient capital use and national benefit.
Strategic Direction: Overcoming Challenges and Expanding Capacity
In recent years, VRG has faced challenges from climate impacts on rubber production, global trade tensions, geopolitical conflicts, and the COVID-19 pandemic, all of which affected its business operations, including the industrial infrastructure sector.
As of mid-2024, some projects—such as Nam Tan Uyen expansion, Rach Bap, and Dầu Giây Industrial Parks—remain delayed due to land planning constraints and procedural approvals. Only 0.5 ha of new industrial land has been leased (compared to a 244 ha target). Revenue reached VND 538 billion, with VND 338 billion profit, achieving 36% of the 2024 plan.
Deputy CEO Do Huu Phuoc emphasized the need for proactive coordination with local and central authorities to accelerate approvals, expand existing zones, and develop new ones.
Long-Term Vision: Toward Sustainable and Profitable Industrial Growth
VRG’s strategic plan identifies the industrial park sector as a key driver for long-term growth, aiming to position the Group as Vietnam’s leading IP/IC developer. Based on the 2021–2030 national and provincial land-use plans, VRG is drafting a Southeastern Industrial Park Development Proposal for state approval.
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By 2030, VRG aims to develop or expand industrial parks totaling 10,122 ha, including Hiep Thanh IP (Tay Ninh, 573.8 ha) — bringing total industrial land to approximately 14,248 ha.
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Post-2030, an additional 8,927 ha will be developed, raising the total to 23,175 ha.
Over a 50-year investment cycle, average profit per hectare from industrial infrastructure is estimated at VND 7 billion, compared to VND 1.5 billion from rubber cultivation, confirming the superior financial performance of industrial development.
Strengthening Operations and Brand Value
According to Mr. Tran Quoc Thai – Deputy Head of VRG’s Industrial Park Development and Management Board, VRG will prioritize:
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Revenue diversification through rental warehouses, ready-built factories, and investor services
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Digital transformation for efficient park management and information sharing
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Enhanced customer service systems to build the VRG Industrial Park brand as a benchmark for green, modern, and investor-friendly zones
These initiatives aim not only to improve operational efficiency but also to strengthen VRG’s reputation as a national leader in sustainable industrial development.