Vietnam-Singapore industrial parks' profits fall by half

The Vietnam-Singapore Industrial Park Joint Venture company said post-tax profits for the first half were VND440 billion (US$18.2 million), down 55% from the same period last year.

Its debts increased by 21% to VND10.3 trillion as of the end of June, with bonds accounting for VND1 trillion.

The seven-years bonds, issued in July 2021 at a 9% coupon rate, were meant to raise money for VSIP III-Binh Duong and VSIP Nghe An and increase working capital.

In 2022 the company paid out over VND84 billion as interest on the bonds.

Since 2020 the company’s profits rose steadily, and surged in 2022 by 26% to over VND2.2 trillion.

The company, a joint venture, was established in 1996 by the Investment and Industrial Development corporation (Becamex IDC) and a Singaporean investor consortium led by the Sembcorp Development corporation. It now operates nine industrial parks in Vietnam, including three in the southern Binh Duong Province.

The company said the parks now have around 880 tenants from 30 countries and territories and total foreign investment of $15 billion.

They employ 250,000 people.