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“BCM Chairman: Equity Fundraising Drive Can Be Extended to 2030 If Challenges Persist”

18 May, 2025

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The Challenge of Increasing Charter Capital

BCM’s 2025 Annual General Meeting was held in the morning of May 15 in Binh Duong – Photo: Thanh Tu

In his opening speech, BCM’s Chairman, Mr. Nguyen Van Hung, stated that the current context is witnessing decisive changes, especially the policy of merging some provinces, including Binh Duong’s integration into Ho Chi Minh City. This poses significant challenges but also presents new opportunities.

According to BCM’s leader, there are many issues that need to be addressed to adapt to the new situation. “We are entering a busy period with important tasks ahead of us to prepare the foundation for the next phase of development,” said Mr. Hung.

In 2025, BCM will prioritize exploring opportunities in Ho Chi Minh City and Binh Duong – two key areas in the government’s plan for double-digit economic growth. Despite the challenges faced by Ho Chi Minh City in its role as an expanded center, BCM believes that the integrated urban area will open up new development spaces for both businesses and residents.

Mr. Pham Ngoc Thuan – Member of the Board of Directors and General Director of Becamex IDC shared that the capital requirement to carry out the strategic tasks assigned by the Government and the province is enormous. However, with a charter capital of only VND 10,350 billion, the company is facing significant financial constraints, even when utilizing almost the entire 15% loan limit for each project as stipulated.

General Director of BCM speaking at the 2025 Annual General Meeting – Photo: Thanh Tu

Securities plunge, BCM postpones auction of 300 million shares

Mr. Thuan considers this amount to be just a “small fraction” compared to the actual need. In the period of 2025-2030, Becamex IDC aims to implement 5-6 large-scale industrial park and urban area projects, with a total investment of up to hundreds of thousands of billion VND. “To achieve sustainable growth, we must have strong financial resources. This decisive step will enable us to take the initiative in the new phase,” emphasized the leader of Becamex.

Discussion

Dividing the issuance of 300 million shares into smaller batches

How will unfavorable tariffs affect the company? What adjustments will the company make to cope with this situation?

Mr. Pham Ngoc Thuan – General Director: Tariffs imposed by the US will definitely have an impact. However, we need to look at the bigger picture. The US accounts for only about 25% of the global GDP, while the rest of the world accounts for 75%. Even if the US closes its doors, the world will continue to function as usual. Moreover, Vietnam has signed 15 free trade agreements with other countries. This provides stability and diversifies our trade partners, reducing the risk of dependence.

In addition, the Vietnamese government has acted swiftly to clarify its trade policies and proactively engage in international dialogue. As a result, even after the news of US tariffs, many investors continued with their investment plans in Becamex’s industrial parks. In fact, after April 10, when the situation became clearer, investors returned even more strongly. This indicates that Vietnam remains attractive, and our plans have not been significantly affected.

What is the progress and plan for new leasing activities in Bau Bang and Cay Truong industrial parks?

Mr. Pham Ngoc Thuan: We are currently developing a specialized industrial park model that integrates innovation and science and technology in Bau Bang and Cay Truong industrial parks. This new-generation model differs from traditional industrial parks and aims to attract high-quality investors. Becamex has been preparing for over a decade to build this ecosystem, which includes training centers, logistics, and innovation hubs, and has successfully operated in Binh Duong. BCM is now replicating this model in other provinces.

Regarding residential real estate, the company has a large portfolio of projects located in central areas, close to key urban and commercial centers. These projects have complete legal procedures and are in the commercialization phase. The plan for the transfer of these projects will be announced in specific phases to ensure the optimization of shareholder value.

When will the public offering of 150 million shares take place? How will the company ensure the success of the auction?

Mr. Pham Ngoc Thuan: The plan to issue 300 million shares was affected by the news of tariffs from the US, causing a sharp drop in share prices. Therefore, BCM decided to postpone the offering to protect the interests of shareholders and avoid dilution of shares at a low price.

Going forward, the company will divide the issuance process, starting with 150 million shares instead of 300 million as previously planned. This approach provides more flexibility and reduces market pressure. To implement this, BCM will organize meetings with domestic and foreign institutional investors to build consensus and increase the chances of a successful distribution.

Mr. Pham Ngoc Thuan acknowledged the significant capital requirement for these projects and shared the strategy of partnering with state-owned enterprises, large corporations, or private companies to jointly develop key projects, especially in the linked area of Ho Chi Minh City.

On which economic scenario is this year’s plan based?

Mr. Pham Ngoc Thuan: The 2025 plan is formulated amid a volatile and uncertain market. The company has adjusted its expectations to some extent but maintains a positive growth target. The scenarios are designed to be flexible to cope with the actual situation and avoid passivity.

Transitioning to Adapt

Chairman of the Board of Directors, Mr. Nguyen Van Hung, shared that the plan to issue a large number of shares by Becamex had to be temporarily postponed due to market fluctuations and share prices falling below expectations. However, with the current stable price level, BCM intends to proceed with the capital raising but on a smaller scale, lower than the previous plan, but more suitable for the new situation. The goal remains to reduce state ownership, expand the development space, and attract more strategic investors.

If difficulties persist, the company will propose to the government to extend the capital mobilization period until 2030 to have sufficient time to maneuver and take advantage of investment opportunities in the key economic region of the South, including Ho Chi Minh City, Binh Duong, and Ba Ria – Vung Tau.

The BCM Chairman emphasized the significant investment demand and the limited resources of the enterprise. Therefore, Becamex will promote cooperation with state-owned enterprises, private companies, and large corporations to jointly develop key projects, especially in the linked area of Ho Chi Minh City.

In the context of challenges arising from tariffs, global fluctuations, and environmental standards – causing difficulties for many businesses, Mr. Hung believes that this is also an opportunity for transformation, similar to how China overcame its stagnation. Becamex is undergoing a strong restructuring process and is ready to adapt and rise to the challenge.

The BCM Chairman expects that with the companionship of shareholders and partners, Becamex can aspire to become a company worth tens of billions of USD, contributing not only to Binh Duong but also to Ho Chi Minh City. “We have prepared thoroughly for this special period. We hope that shareholders will remain confident and accompany us on this journey,” he said.

At the end of the meeting, all proposals were passed. The Board of Directors added two new members, Mr. Nguyen The Duy and Mr. Vu Quang Vinh.

Members of the Board of Directors of BCM – Photo: Thanh Tu

Adding members to the Board of Directors and proposing to issue nearly 114 million shares as a dividend for 2024

In 2025, BCM submitted to the shareholders a plan with a consolidated revenue target of VND 9,500 billion, up 29% compared to the previous year; and after-tax profit of VND 2,470 billion, a slight increase of 3%. The dividend rate for 2024 is 11% in cash or shares, and for 2025 it is 10%.

To implement the 2024 dividend payment, if paid in shares, BCM plans to issue nearly 114 million shares (equivalent to 11% of the total circulating shares, not subject to transfer restrictions). The charter capital after the dividend payment will increase by nearly VND 1,139 billion to VND 11,489 billion. In case of cash dividend payment, the Board of Directors will implement it within six months from the date of the Annual General Meeting of Shareholders.

In 2025, BCM will start the construction of the Bau Bang Industrial Park expansion phase 2 with a scale of 380 hectares and Cay Truong Industrial Park with 700 hectares, increasing the land fund for leasing in Binh Duong province. The company is studying the investment in new-generation industrial parks in the field of science and technology, information technology in the province, and expanding investment in industrial park – urban and service projects with a new model to other provinces such as Tay Ninh, Khanh Hoa, Binh Thuan, and Binh Phuoc.

In addition, BCM is working on a social housing project in Zone 6 of Vietnam Singapore with 1,867 units, expected to be completed in 2027. The company has also been approved by the People’s Committee of Binh Duong province to invest in five other social housing projects in the province, with a total of more than 8,600 units, to be implemented from 2025.

In the field of transport infrastructure, in early February 2025, BCM and the members of the joint venture won the bid and started the construction of the Ho Chi Minh City – Thu Dau Mot – Chon Thanh expressway project under the BOT contract, with a total investment of over VND 8,833 billion. Becamex IDC participates with a 49% stake in this expressway project, which is expected to be completed in 2027.

Along with that, BCM proposes the Ring Road 4 project through Binh Duong province, expected to open for bidding in the second quarter of 2025, and is studying the proposal for the Ring Road 3 project through Binh Duong province.

The General Meeting will also elect two additional members to the Board of Directors for the term 2023-2028, including Mr. Nguyen The Duy (born in 1994), currently Deputy General Director of BCM and Member of the Board of Directors of Becamex – VSIP Joint Stock Company; and Mr. Vu Quang Vinh (born in 1977), currently Deputy General Director of Vietnam – Singapore Industrial Park Limited Company and Deputy General Director of VSIP – Sembcorp Gateway Company Limited.

Thanh Tu

– 12:40 15/05/2025