The Dong Nai-based Industrial Urban Development JSC No 2 (D2D) expects post-tax profits in 2020 to slump by 51.5 percent year-on-year to 178.7 billion VND (7.7 million USD).(Photo cafef.vn)Hanoi (VNS/VNA) - Industrial park owners are forecasting a drop in 2020 profits,blaming the ongoing damage inflicted by the COVID-19 pandemic.
The DongNai-based Industrial Urban Development JSC No 2 (D2D) expects post-tax profitto slump by 51.5 percent year-on-year to 178.7 billion VND (7.7 million USD).
D2D alsoestimates that revenue this year will fall by 49 percent to 414 billion VND.
In 2019,D2D recorded net revenue of 763 billion VND and post-tax profit of 368.5billion VND, 2.7 and 4 times higher than in 2018, respectively.
Thecompany attributed the sudden slump to the investment efficiency of the Loc AnKDC project in Long Thanh district.
SonadeziLong Thanh Holding Company (SZL), also in Dong Nai, has revised its revenuetarget in 2020 to 409 billion VND, down 4 percent year-on-year, and post-taxprofit of 87 billion VND, down 16 percent compared to 2019.
SonadeziLong Thanh has authorised its board of directors to adjust its business plansto match the complicated developments of COVID-19. However, shareholders willneed to be advised if the targets fall by more than 30 percent.
Tin NghiaIndustrial Park Development JSC (TIP) expects its revenue to reach 166 billionVND, down 24 percent against 2019, and pre-tax profit to touch 93 billion VND,down 19 percent year-on-year.
TIP saidthis year the company will face difficulties regarding slow and complicatedadministrative procedures, higher costs for compensation and site clearance,and less FDI due to COVID-19.
SONADEZIChau Duc Shareholding Company (SZC) has also forecast post-tax profit of 115billion VND, down 14 percent.
TheCOVID-19 pandemic is becoming increasingly complicated, SZC’s Board ofDirectors said, and that the company's investment attraction will be negativelyaffected.
In 2020,revenue from industrial land leasing, factory leasing, management fees andindustrial infrastructure services is estimated at 282 billion VND. The companyis also continuing the construction of the Chau Duc Urban Industrial Park andGolf Course.
Higherprofit
Among theindustrial park operators suffering the severe impacts of the pandemic, somestill expect a higher profit in 2020.
Phuoc HoaRubber JSC (PHR) has forecast total revenue of 2.46 trillion VND, an increaseof 52 percent, and pre-tax profit of 1.15 trillion VND, double the figure in2019.
The boardof directors at PHR said it would respond to each specific scenario during theCOVID-19 pandemic.
Thecompany will also restructure projects it has invested in, including Truong PhatRubber JSC and Phuoc Hoa Kampong Thom Rubber Development Co Ltd.
Accordingto Viet Dragon Securities Co, PHR's industrial parks were located in the mostfavourable locations in Binh Duong province so rental rates are expected toremain high, at around 60-80 USD per metre square in Tan Binh and 90 USD permetre square in Nam Tan Uyen.
Rentaldemand is expected to continue to increase as FDI in Vietnam, and in particularBinh Duong province, is still rising, making the industrial zone segment a keydriver for PHR.
However,these comments were made by VDSC before the COVID-19 pandemic.
Vinh PhucInfrastructure Development (IDV) aims to earn 264 billion VND in revenue, and 151.6billion VND in post-tax profit, up 62 percent and 54 percent, respectively,compared to 2019.
Remarkably,thanks to the large profit made by its subsidiary VPID Ha Nam, IDV's revenueand profit in Q1 reached 109 billion VND and 60.6 billion VND, respectively.
Theseearnings in Q1 fulfilled nearly half of the target set for 2020.
Thisyear, IDV plans to increase investment attraction at the Chau Son IndustrialPark, and focus on expanding the Khai Quang Industrial Park and developing newindustrial park projects./.
VNA
