INDUSTRIAL PARK (IP) LAND
SUPPLY: OVER 700 HA OF INDUSTRIAL LAND ENTERING THE MARKET
In an exciting development for the Northern Economic Region, the recent administrative redefinition has significantly boosted the total industrial land supply, now totaling 23,563 hectares. This new estimate represents a remarkable 37% increase in the total stock compared to previous periods. Notably, three new industrial parks (IPs) have broken ground in Phu Tho, Hai Phong, and Ninh Binh, contributing over 700 hectares of new leasable land to the market. These changes signal a robust response to the growing demands of businesses seeking space in Vietnam’s evolving industrial landscape.
DEMAND: OCCUPANCY RATE DECLINES AMID SURGING SUPPLY
As of Q3 2025, the average occupancy rate in the Northern industrial land market has dipped to 67%, down from the previous quarter. However, this decrease should not be confused with a faltering demand; rather, it reflects the substantial influx of supply from areas outside the key economic zones, such as Bac Giang and Phu Tho. These regions typically see slower absorption rates. Nevertheless, demand remains strong in industrial hotspots. For instance, Hanoi’s industrial land is nearly fully occupied, with Bac Ninh holding an impressive occupancy rate of around 75%. This high demand is largely driven by sectors focused on high value-added industries, including technology, electronic components, and circuit board manufacturing.
RENT: SUSTAINABLE ANNUAL GROWTH TREND
The average asking rent for industrial land reached $133 per square meter per lease term in Q3 2025, reflecting a slight decline of 2% from the previous quarter. This dip is primarily attributed to the increased inclusion of provinces with lower rental levels into the market. However, when measured on a like-for-like basis, rental prices have shown a commendable 4% year-on-year growth. This trend underscores the resilience and upward trajectory of rental rates in key industrial zones despite minor fluctuations in the broader market.
MARKET OUTLOOK
Looking ahead, the market is poised for substantial growth, anticipating the addition of approximately 6,500 hectares of industrial land between 2025 and 2028. Ninh Binh is positioning itself as a burgeoning economic center, with the development of two significant industrial parks—Dong Van V and Dong Van VI—expected to yield nearly 500 hectares of new leasable land. The provincial merger is critical in fostering a continuous industrial economic belt that enhances the competitive edge of Northern Vietnam. Streamlined administrative processes and optimized resource allocations will make it easier for large-scale investors to enter the market, further supported by critical infrastructure projects like the expansion of Gia Binh Airport and improvements to the North-South Expressway, which will bolster regional connectivity.
READY-BUILT FACTORY (RBF)
SUPPLY: NEARLY 100,000 SQM ENTERING THE MARKET FROM MAJOR DEVELOPERS
In a booming market for ready-built factories (RBFs), Q3 2025 brought the total accumulated stock in Northern Vietnam to approximately 5.1 million square meters of leasable space. This marks a significant 14% increase compared to pre-merger figures, driven by the introduction of nearly 100,000 square meters from two key projects, including the KTG Industrial VSIP Bac Ninh 2—Phase 1, contributing around 43,000 square meters, and another development in Hung Yen.
DEMAND: STRONG DEMAND DRIVES IMPRESSIVE OCCUPANCY GROWTH
The standout feature of Q3 2025 was the occupancy rate of RBFs rising to about 87%, a 4 percentage point increase from the previous quarter. This remarkable growth comes as the market successfully absorbed nearly 100,000 square meters of new supply. The data indicates that demand is outpacing supply, particularly in well-located projects. Hanoi leads the market with nearly full occupancy, while other strong contenders like Hung Yen (93%), Hai Phong (87%), and Bac Ninh (86%) also report high rates of occupancy. The driving force behind this demand is heavily influenced by high-tech industries, particularly those involved in electronics and circuit boards, which are favoring RBF solutions for their swift setup advantages.
RENT: MAINTAINING STABILITY
The average asking rent for RBFs stabilized at $5.00 per square meter per month in Q3 2025, consistent with Q2 figures. This steadiness reflects the market’s ability to balance new supply against strong demand. Year-on-year, the rent experienced a modest increase of 2%, indicating a healthy long-term growth outlook driven by robust underlying demand.
MARKET OUTLOOK: ACCELERATING WITH THE HIGH-TECH MANUFACTURING WAVE
The Northern RBF market is set for a significant boost, with approximately 900,000 square meters of new leasable space expected to be added over the next three years. A notable trend is the shift among developers from focusing solely on warehousing to prioritizing factory developments, showcasing their adaptability in the face of evolving market demands. This growth is further supported by completed expressways and anticipated airport expansions, such as Gia Binh, which promise to enhance logistics networks. The merger of provinces opens new avenues for sustained RBF growth by facilitating the creation of a vast, interconnected industrial belt. This administrative coordination is vital for diminishing investment barriers and fortifying the core advantages of RBFs, particularly their expedient availability, appealing to investors in high-tech and electronic-component sectors eager to establish supply chains efficiently.
READY-BUILT WAREHOUSES (RBW) & MIXED-USE FACTORIES (RBH)
SUPPLY: 18,000 SQM OF LEASABLE SPACE ENTERING THE MARKET
The ready-built warehouse (RBW) market in Northern Vietnam has also expanded, with the total accumulated stock reaching approximately 3.4 million square meters of leasable space, reflecting a 7.6% increase compared to pre-merger levels. The market welcomed an additional 18,000 square meters from a single project based in Hung Yen.
DEMAND: STRONG YEAR-END DEMAND GROWTH
Notably, the occupancy rate of RBWs saw a significant uptick to about 77% in Q3 2025, a 7 percentage point increase from Q2. This surge in demand is largely attributed to inventory accumulation for the year-end holidays, particularly in sectors like confectionery and food, alongside stable growth in traditional manufacturing and construction materials. Regions like Hanoi, Ninh Binh, and Quang Ninh are seeing nearly full occupancy rates ranging from 97-100%, with Hung Yen around 80% and Hai Phong at 78%.
RENT: MAINTAINING STABILITY
The average asking rent for RBWs remained stable at $4.90 per square meter per month during Q3 2025, unchanged from earlier in the year. Nevertheless, this rate saw a modest year-on-year uptick of 2%, indicative of continuing long-term growth trends.
MARKET OUTLOOK: BAC NINH AND HAI PHONG – KEY PILLARS OF FUTURE SUPPLY
Over the next three years, Northern Vietnam’s key economic region is projected to introduce approximately 800,000 square meters of new RBW space. This future supply will be heavily concentrated in Bac Ninh (~49%) and Hai Phong (~31%), reinforcing these provinces’ statuses as essential international logistics hubs for manufacturing and import-export activities. The recent provincial merger has acted as a strategic catalyst for growth within the RBW segment, supported by substantial infrastructure investments aiming to optimize distribution networks, lower operational costs, and facilitate swift establishment of modern distribution centers by international investors. With major infrastructure projects like the North-South Expressway in progress, RBWs are expected to play a critical role in fostering the growth of e-commerce ecosystems and industrial supply chains across the region.