Property rentals drive Viglacera profits to multi-year high

By Tat Dat January 9, 2023 | 09:49 pm PT

Viglacera’s Yen Phong Industrial Park in Bac Ninh Province, where Samsung has a plant. Photo courtesy of VGC

Construction materials company Viglacera has reported pre-tax profits of VND2.288 trillion (US$95.3 million) last year, the highest since 2010, with real estate accounting for a major share.

Profits from leasing of industrial parks and workers’ housing were worth VND1.62 trillion, 57% higher than in 2021. It was for a second straight year that real estate fetched profits of over VND1 trillion.

According to the Vietcombank Securities Company, a large part of Viglacera’s revenues came from industrial parks, especially the expanded Yen Phong in the northern province of Bac Ninh.

Prices of construction glass, its main product, rose sharply in the first half of last year.

Viglacera plans to build more than 10 new industrial parks with a combined area of 2,000-3,000 hectares by 2025, increasing its total number of parks to 20.

The firm is also developing more social housing in Bac Ninh, Quang Ninh and Ha Nam provinces, the latter two also in the north, for leasing out to workers.

However, Vietcombank Securities does not expect Viglacera’s revenues and profits to grow strongly this year since there is not much rentable land left in its industrial parks and the prices of construction glass have fallen sharply due to weaker demand and increased supply.