The industrial park (IP) and industrial cluster business segment of the Vietnam Rubber Group (VRG) has shown remarkable growth and profitability, becoming a major contributor to the group’s total revenue and profit. This has affirmed industrial infrastructure as a core business sector, maximizing land-use efficiency and driving sustainable development within the group.
Strong Expansion Strategy Through 2030
Table of Contents
According to Mr. Do Huu Phuoc, Deputy General Director of VRG:
“For the 2021–2025 period, VRG targets to develop between 15,000 and 20,000 hectares of industrial parks.”
Under Resolution No. 30/NQ-HDQTCSVN dated July 10, 2020, VRG plans a total land area of 39,177 ha for industrial park and cluster development during 2021–2030 — including 37,387 ha for IPs and 1,790 ha for clusters. The group is actively converting selected rubber plantation land into industrial parks, coordinating with local authorities in Southeast Vietnam to align with regional planning.
Flexible Solutions Driving Post-Pandemic Recovery
To accelerate post-COVID recovery and improve business performance, VRG’s IPs implemented a range of adaptive measures in early 2022:
-
New investment promotion models adapted to pandemic conditions.
-
Support for tenant enterprises in labor recovery and operational stability.
-
Fee incentives — reductions, exemptions, or deferred payments for infrastructure and management fees.
-
Expansion of ancillary services, including logistics, parking, commercial centers, and supporting facilities.
These efforts have not only stabilized operations but also boosted investor satisfaction and enhanced the overall attractiveness of VRG’s industrial parks.
As a result, in 2022, the IP segment exceeded all major targets:
-
Revenue: over VND 6,679 billion (+21.4% vs plan)
-
Post-tax profit: over VND 1,344 billion (+34% vs plan)
-
Return on charter capital: > 66% (+24% vs plan)
-
Tax contribution: VND 406 billion (+21% vs plan)
-
Average employee income: VND 13.6 million per month (+9% vs plan)
In recent years, VRG’s IPs have paid dividends averaging above 30%, with some exceeding 60%, and maintained average ROE above 60%. Notably, three VRG IPs were ranked among Vietnam’s Top 10 Most Reputable Industrial Real Estate Companies 2022.
Exemplary IP Performance
Nam Tan Uyen Industrial Park JSC, VRG’s first IP company, continues to lead the sector after 17 years of operation:
-
Revenue: VND 429 billion
-
Post-tax profit: VND 246 billion
-
ROE: 102%
-
Tax payment: VND 106 billion
-
Average income: VND 14.5 million per month
General Director Mr. Ha Trong Binh shared that the company is enhancing digital transformation and online investment promotion through virtual platforms and is preparing to expand support services such as a medical zone (Medical VN), a shopping center (Le Minh), logistics services, and public parking areas.
Tan Binh Industrial Park JSC has achieved continuous success, earning the Vietnam Sustainable Business Certificatefor four consecutive years (2019–2022) and the Vietnam Golden Star Award 2021.
General Director Mr. Nguyen Anh Tuan emphasized the company’s focus on green and sustainable IP development, flexible policies, and efficient investor support. With Phase 1 (352.5 ha) fully occupied, Tan Binh offers attractive tax incentives — two-year tax exemption and 50% reduction for the following four years.
Dau Giay Industrial Park JSC led VRG’s IP cluster in worker income:
-
Revenue: VND 151 billion (+4% vs plan)
-
Profit after tax: VND 73 billion (+10% vs plan)
-
ROE: 82% (+38% vs plan)
-
Average income: VND 22 million per month (+21% vs plan).
Meanwhile, Long Khanh Industrial Park JSC improved wastewater-treatment capacity, expanded rental workshops, and optimized labor allocation to boost productivity.
Its 2022 results included:
-
Revenue: VND 123 billion (+1%)
-
Post-tax profit: VND 54 billion (+0.4%)
-
Tax contribution: VND 21 billion (+44%)
-
Average income: VND 15 million per month.
Expansion Momentum Across the VRG Network
VRG currently manages a land fund of approximately 407,800 ha, offering a significant advantage for industrial park expansion through rubber-land conversion. Compared with other developers, VRG enjoys lower land-compensation costs, strategic locations, comprehensive infrastructure, and competitive rental prices.
Upcoming expansion projects (2023–2025) include more than 5,000 ha of new industrial park development:
-
Tan Binh II Expansion: 1,055.8 ha
-
Tan Lap 1 IP: 400 ha
-
Hoi Nghia IP: 560 ha
-
Minh Hung 2 Expansion: 590 ha
-
Bac Dong Phu & Nam Dong Phu Expansions: 800 ha (total)
-
Dau Giay Expansion: 75 ha
-
Long Khanh Expansion: 500 ha
-
Nam Pleiku Expansion: 200 ha.
Mr. Huynh Van Thi, Deputy General Director of Binh Long Industrial Park JSC, noted that the park has achieved full occupancy and is now fast-tracking procedures for Phase II expansion (577 ha) to meet strong demand from existing and new investors.
Outlook: Sustained Growth and Investment Potential
With its favorable locations, comprehensive infrastructure, investor-friendly policies, and stable post-pandemic labor supply, VRG’s industrial park system is positioned for robust and sustainable growth in the coming years. The group’s IP segment continues to serve as a key profit driver and a cornerstone of Vietnam’s industrial real estate development strategy.