Next-Gen Factories and the Rise of Smart Industrial Parks in Vietnam
The Rise of Automation-Ready Factories
As the global economy evolves, so too does the landscape of industrial production in Vietnam. The KTG Industrial site in the Vietnam-Singapore Industrial Park Bac Ninh 2 epitomizes this shift, covering 14 hectares and launching seven factories in its initial phase. With over 44,000 square meters of floor space, these factories are not just vast—they are meticulously designed to meet the demands of automated production lines.
A key feature of these factories is their highly engineered floors, compliant with ACI standards. This enables the installation of high-precision machinery while significantly reducing vibrations. Such design considerations are essential for modern, automated operations, ensuring efficiency and precision throughout production cycles.
State-of-the-Art Infrastructure
The KTG Industrial site also incorporates a robust electrical infrastructure, initially designed for 100W per square meter but scalable to 200W. Energy efficiency is a priority: facilities are equipped with LED lighting, water-saving fixtures, and improved insulated roofing. Furthermore, rooftops are engineered for future solar panel installations, and parking spaces are prepared for electric vehicle use—demonstrating a commitment to sustainability.
According to Tran Quang Trung, head of Project Development at KTG Industrial, their vision transcends mere industrial space provision. Their aim is to enhance workplace productivity while also safeguarding the environment and improving the quality of life for employees.
Advancements in Warehouse Design
Parallel to these factory developments, logistics is undergoing a transformation with initiatives like Mitsubishi Estate Vietnam’s Logiscross Nam Thuan project in Tay Ninh. This facility, developed as a ready-built warehouse, includes three single-storey structures featuring 200 lux LED lighting and advanced fire safety systems. Designed for rapid operations and automations, this site boasts 64 loading docks, an impressive ceiling height of 11 meters, and a robust floor capacity of three tonnes per square meter—facilitating efficient storage and heavy-duty logistics.
Mitsubishi Estate is planning further expansions, underscoring the growing importance of modern logistics in Vietnam’s industrial landscape.
Green Technology in Industrial Parks
Construction of the Nam Binh Xuyen Green Park Industrial Zone in Phu Tho showcases the integration of modern technology with sustainable practices. Spanning nearly 300 hectares, this project features a centralized AI-driven management system to oversee operations around the clock. This technology promotes efficiencies across critical areas such as electricity and environmental management.
Importantly, the park’s designs accommodate solar power systems, expected to deliver a total capacity of 102MVA—demonstrating a future-forward approach to energy. With its advanced water supply and wastewater systems meeting stringent environmental standards, the park is actively pursued green certifications like LEED and EDGE.
Meeting Rising Demand for Industrial Space
Vietnam is witnessing an uptick in demand for premium ready-built factories, driven by global supply chain shifts. Bui Trang, country head of Cushman & Wakefield Vietnam, notes that entire supply chains are relocating to Vietnam to benefit from stable policies and favorable tariffs. This scenario substantially boosts the ready-built factory segment, transitioning from a perceived weakness to a competitive advantage.
According to recent reports, Vietnam’s supply of ready-built factories has surged to roughly 11 million square meters, with occupancy rates exceeding 85%. Key industrial hubs, such as Ho Chi Minh City and Bac Ninh, are leading this growth, attracting both domestic and foreign investors.
Engineering Excellence
Today’s Vietnamese factories are not only spacious; they are meticulously constructed, featuring pre-engineered steel frameworks with anti-corrosion coatings and enhanced insulation. Features such as ceiling heights ranging from four to 13 meters and load capacities up to 4,000 kilograms per square meter enable diverse industrial applications. These technical specifications are meticulously aligned with national standards for safety, lighting, and air quality.
As Bui Trang points out, the capabilities of these factories now meet industry demands comprehensively, particularly benefitting sectors like electronics, semiconductors, and automation.
Custom Solutions for Diverse Needs
For businesses requiring specialized setups such as cleanrooms or advanced flooring, developers are prepared to offer bespoke solutions. The flexibility in design systems and readily available resources means that modifications can be performed quickly, catering to various industrial requirements.
A Promising Future
Looking ahead, the outlook remains optimistic for Vietnam’s industrial real estate market. Enhanced foreign investment policies and commitments to infrastructural upgrades set the stage for further growth. The rise of environmentally friendly factories designed to meet international standards signifies Vietnam’s readiness to meet global stakeholders’ stringent environmental and governance demands.
Expanding Industrial Park Developments
Driven by foreign investments and favorable economic conditions, a wave of new industrial park developments is unfolding across Vietnam. In Tay Ninh, plans for the Binh Hoa Nam 1 Industrial Park reflect a commitment to high-tech industries and environmentally conscious manufacturing. This aligns with the broader provincial vision aimed at increasing its industrial capacity to meet ambitious growth targets.
Similarly, in Ho Chi Minh City, the development of the Cay and Bau Bang 2 Industrial Parks is a testament to the city’s drive toward creating a smart eco-industrial hub. Collaboration with organizations like the World Bank further demonstrates a commitment to integrating sustainability into industrial development.
The momentum is unmistakable: Vietnam is poised to emerge as a key player in the global supply chain and industrial landscape, championing modern, sustainable production practices that align with both economic and environmental priorities.