Back to Previous Page
IDICO Corporation (IDC VN) – H1 2025 – Leasing Outlook Brightens as FDI Rebounds in Vietnam
Summary of H1 2025 results and outlook of IDICO Corporation JSC (IDC VN)
- IDC secured 48 ha of new lease contracts in the period, up from 43 ha a year earlier, accounting for 15% of total net absorption in Tier 1 markets across both Northern and Southern regions. Its sizable land bank in well-connected locations positions the company to capture sustained demand for industrial land amid a prolonged shortage of new supply. Furthermore, its well-diversified tenant base, weighted toward domestic demand-driven sectors, provides resilience against tariff-related headwinds.
- Net profit declined 43.1% y/y to VND641 bn, mainly due to the timing of pre-sold land deliveries. IDC handed over only 28 ha compared with 65 ha in the same period last year, as tenants were still completing procedures required for final handover.
- Looking ahead, the easing of tariff-related uncertainties should help restore confidence among global manufacturers and support a new wave of FDI inflows. Under the final U.S. tariff framework effective August 1, the rate on Vietnamese goods has been reduced to 20% from the initial level of 46%. This is broadly in line with regional peers such as Thailand, Indonesia, and Malaysia (all at 19%) and remains well below India’s 25%. With only a slight tariff difference, Vietnam’s structural advantages, including strategic location, competitive production costs, and political stability, continue to outweigh any disadvantages, reinforcing its position as a reliable manufacturing hub in global supply chains.
- IDC is well-positioned to benefit from renewed FDI momentum, supported by a land bank of 1,346 ha in key manufacturing hubs. With greater clarity on tariff policy, many prospective tenants, particularly from China, are moving forward with leasing contracts, strengthening the company’s leasing outlook.
- For H2/2025, we expect the company to hand over 61 ha across five ongoing projects, lifting the full-year leased area to 89 ha (-7.7% y/y). Meanwhile, contributions from the energy and toll fee segments are anticipated to remain stable. Over 2025-2029, we estimate earnings to be driven mainly by the launch of four new IPs with a combined leasable area of 910 ha.
Read our previous analysis on IDC’s quarterly earnings.
Watch our latest insights on Vietnam industrial park sector here.
Company ratings and target prices are accessible for clients only.
If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.
Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.
Featured image credit: https://cafef.vn/
