Vietnam's Long Hau approves $58M BIDV loan for industrial park expansion
What's the deal? Long Hau Corporation (HOSE: LHG) has approved a plan to borrow up to VND1,500 billion (roughly $58 million) from Vietnam's BIDV to fund infrastructure for its Long Hau Industrial ParkDealroom has a profile for this one. Try Dealroom → Phase 2 Expansion. The 84-month facility will be disbursed as construction progresses, the board said in a resolution dated October 2026.
What's the endgame? The loan covers a 90-hectare project in Tây Ninh Province, next to Ho Chi Minh City. Shareholders approved the project's VND3,158 billion total investment at the April 2026 AGM, structured as VND480 billion in equity, VND1,500 billion in credit and about VND1,178 billion from operating cash flow.
Why now? The expansion is accelerating as nearby transport links near completion. The Bến Lức–Long Thành Expressway opened along its full route in early October 2026, giving the park direct access via the Nguyễn Văn Tạo interchange to seaports, Long Thành International Airport and the wider Southeast region.
By the numbers: The project's total investment rose from about VND2,592 billion estimated in 2021 to VND3,158 billion — a 21.8% increase. Long Hau attributes the jump to higher costs for compensation, site clearance and resettlement, pricier construction materials, and new financial obligations for protecting rice-growing land.
What could go wrong? Long Hau is borrowing while its performance softens. First-half 2026 revenue fell 20.1% year on year to VND365.37 billion, and net profit dropped 6.1% to VND187.61 billion, with gross margin narrowing from 58.5% to 52.7%.
The signal: The financing underscores how Vietnam's industrial-park developers are leaning on bank credit to expand capacity around new transport corridors, betting that improved logistics will draw manufacturing tenants — even as near-term earnings cool.
Read more: stockbiz.vn
Image credit: Long Hau Industrial Park
