Phat Dat promotes industrial township development in its multi-sector strategy
After the debut in the industrial real estate sector with a project in Cai Mep International Terminal (Ba Ria – Vung Tau), Phat Dat Real Estate Development Corporation (Stock code: PDR) has made another steady advance with a 1,152-hectare project in Dung Quat (Quang Ngai), modeled on an industrial township per Company strategy.
To create a large-scale project that meets the cutting-edge standards in terms of infrastructure, engineering – technology, connectivity platforms for the green and modern industrial development, Phat Dat coordinates with reputable consulting firms for industrial township development to complete the planning following the Company’s orientation. The project is expected to contribute to the development of Dung Quat Economic Zone (EZ) in particular and Quang Ngai Province in general.
Officially approved by the People’s Committee of Quang Ngai Province on 22nd April 2021, the Phat Dat – Dung Quat Industrial Township project is planned with a proposed 1,152-hectare area on Vo Van Kiet Street – the artery road of Dung Quat EZ. Owning a convenient traffic system, Phat Dat – Dung Quat Industrial Township directly connects to trade gateways such as Dung Quat Port, Chu Lai Airport, Da Nang International Airport, Lien Chieu Port, etc., via National Route 1A and Quang Ngai-Da Nang Expressway.
As in the plan, the project is modeled on an integrated industrial township, satisfying the growing manufacturing demand while providing urban services such as residential utilities, recreations, green open space, and health – medical – educational facilities, which ensures a healthy and balanced lifestyle for experts, workers and local residents.
An integrated industrial township is a socio-economic development model that has been popularized in many countries in place of old-fashioned industrial zones; it has yet to be widely deployed in Vietnam. The change in socio-economic development thinking and the modern manufacturing requirements have driven many experts to believe the demand for this model in Vietnam will bloom soon. That is why Phat Dat “ventures” into the industrial real estate sector with the strategic industrial township orientation. Accordingly, out of 1,152 hectares, Phat Dat – Dung Quat Industrial Township preserves 838 hectares for IZ infrastructure and 314 hectares for residential properties. The project is expected to bring stable revenue streams for PDR in the near future.
Dung Quat Economic Zone (Quang Ngai)
Planned by the Government to become a multi-sector economic zone with an area of 45,332 hectares, Dung Quat EZ possesses many advantages to become an attractive destination for domestic and foreign investors. Despite many challenges in 2020, up to now, there are 353 active investment projects with over VND 296,000 billion capital and more than 169 operating businesses in Dung Quat Economic Zone and Quang Ngai’s industrial zones. According to Quang Ngai’s Industrial Development Plan for 2021-2025, the provincial People’s Committee expects Dung Quat EZ and industrial zones to attract about US$5-6 billion investment. Located in Dung Quat Economic Zone, Phat Dat – Dung Quat Industrial Township inherits many available advantages such as synchronous transportation & deep-water port infrastructure, a large number of interested investors, and many tax incentives.
Phat Dat – Dung Quat Industrial Township is planned and developed to follow the success of the General Warehouses, Port Logistics & Logistics at Cai Mep International Terminal.
Launched in October 2020, the 24-hectare Cai Mep project with an estimated VND 1,136 billion investment is currently implemented as scheduled and expected to generate revenue from late 2022.
Pre-tax profit from 2019 – 2020 and targeted pre-tax profit for 2021-2023 (source: PDR’s financial statements)
Phat Dat confirms the above developments in line with the company’s speedy and sustainable development orientation. Thanks to that, for the past 5 years, Phat Dat has grown rapidly, reaching the leading position in Vietnam’s residential real estate sector with a market capitalization of over USD 2 billion.
Fast growth, high efficiency, sustainable foundation, and great potentials are the investors’ common assessments about Phat Dat. Thus, the trustworthiness among financial institutions allows Phat Dat to be proactive in mobilizing capital. Besides, the Company elaborated on more contacts with international investors to utilize its advantage in choosing optimum capital sources for the next projects per its development plan. Phat Dat’s leadership also shared that the upcoming expanded access to foreign capital sources will pave the way for updating technology – engineering, extensive partner network, and professionalism, corresponding to the global standard of a billionaire corporation.
