FECON BECOMES INVESTOR OF 256-HECTARE INDUSTRIAL PARK IN BAC GIANG

The Hoa Yen Industrial Park Project, spanning 256 hectares in Bac Giang Province, has received official approval. The development is backed by FECON Hoa Yen, an associate company of FECON Corporation (stock code: FCN).

Deputy Prime Minister Tran Hong Ha has just signed a decision approving the investment policy for the construction and infrastructure business project of Hoa Yen Industrial Park (Bac Giang). At the same time, the Government approved FECON Hoa Yen JSC, an associate company of FECON Investment Corporation (FECON Corporation stock code FCN - HoSE), to become the investor

The Hoa Yen Industrial Park project spans over 256 hectares, with a total investment of VND 3,745 billion, including VND 561.8 billion contributed by FECON Hoa Yen. The project is approved for a 50-year operational period from the date of investment policy approval.

FECON Hoa Yen was established in September 2023, primarily operating in the real estate business and land use rights management, including ownership, usage, and leasing. At its inception, the company had a charter capital of VND 600 billion, with FECON Corporation holding 55%.

However, by December 2022, FECON Hoa Yen's charter capital had suddenly decreased to only VND 50 billion, reducing FECON Corporation's ownership ratio at FECON Hoa Yen to 36%. Subsequently, by April 2023, the company's charter capital increased back to VND 600 billion.

According to FECON's reviewed semi-annual financial report for 2024, at the end of the second quarter of 2024, FECON Hoa Yen will be an indirect associate of FECON Corporation with a voting ratio of 36% and an interest ratio of 32.59%.

Originally established as one of Vietnam’s leading underground and foundation construction enterprises, FECON is gradually expanding into related fields, including residential and industrial park real estate.

FECON has pursued 10 residential real estate, industrial parks, and industrial cluster projects in many provinces across the country.

Since 2021, FECON has pursued 10 residential real estate, industrial park, and industrial cluster projects in many provinces in Vietnam. Most of these projects are in the process of completing legal documents and land clearance. In all projects, FECON serves as the master planner and one of the units participating in the bidding to select investors.

At the recent 2024 Annual General Meeting of Shareholders, FECON's Board of Directors revealed that FECON's real estate project portfolio currently has a total value of about USD 2 billion, including many large projects such as Nam Thai Urban Area (Thai Nguyen), My Hao Urban Area (scale of VND 16,000 billion, Hung Yen), Cam Ranh New Urban Area (scale of VND 12,000 billion, Khanh Hoa), etc.

Recently, FECON Hiep Hoa Joint Stock Company - a subsidiary of FECON announced information on the investment implementation of the Danh Thang - Doan Bai Industrial Cluster with a scale of 75 hectares in Doan Bai and Danh Thang communes, Hiep Hoa district, Bac Giang province. This industrial cluster has a total investment of VND 954 billion.

(According to Industry & Trade Review)