On September 30, 2019, Phuoc Hoa Rubber JSC signed a compensation agreement with Vietnam Singapore Industrial Park (VSIP) when Phuoc Hoa Rubber JSC transfers 691 hectares to VSIP to execute VSIP III Project under the government approval.

Accordingly, VSIP will compensate and support the damage because of the liquidation of rubber trees at an average price of VND1,3 billion/hectares, equivalent to VND898.3 billion. This amount will be paid in 2019 and 2020, as from September 2019.

VSIP will share 20% of profit with Phuoc Hoa Rubber JSC from land leasing. In any case, the profit that VSIP shares with Phuoc Hoa Rubber JSC will not be lower than VND1.2 billion/hectares (based on an area of 691 hectares). That means in any case the profit Phuoc Hoa Rubber JSC receives will not be less than VND829.2 billion. However, the profit will be paid according to the land lease schedule. Besides, VSIP will pay compensation for other assets on the land to Phuoc Hoa Rubber JSC.

The two sides is negotiating to sign a cooperation agreement, of which Phuoc Hoa Rubber JSC will contribute 20% charter capital into VSIP III Project and receive profit based on annual business performance.