In 2024, the supply of industrial land in northern Vietnam continued to increase, with occupancy rates in key industrial zones surpassing 83%. Despite this growth, rental prices remain competitive, about 22% lower than in the south.
Plenty of available industrial land
Northern Vietnam’s industrial real estate market is expanding rapidly in 2024, with nearly 2000 hectares of new leasable land added to meet demand from industries like electronics, textiles, and automotive manufacturing. By the third quarter of 2024, the total industrial land area in the region reached 16.700 hectares, up 16% from the same period last year.
Along with newly developed industrial zones, northern Vietnam is home to several key industrial zones featuring modern infrastructure and convenient transport connections, attracting major manufacturers and high-tech companies. Some notable industrial parks include Nam Dinh Vu Industrial Park, Deep C Hai Phong Industrial Park, VSIP Bac Ninh, and Yen Phong 2 Industrial Park, etc.
Some key industrial zones in northern Vietnam
According to the Institute of Construction Economics (under the Ministry of Construction), the occupancy rate in key industrial zones in northern Vietnam has surpassed 83%. On average, ready-built warehouses have an occupancy rate of around 73%, while ready-built factories reach 85%, indicating consistently strong demand for industrial land.
Competitive land rental prices
Despite the increase in supply, industrial land rental prices in northern Vietnam remain competitive, about 22% lower than in the south. As of the end of the fourth quarter of 2024, the average rental price in the region was 137 USD per square meter for the remaining lease term. Rental prices at some industrial parks in northern Vietnam include Viet Han Industrial Park (expanded) in Bac Giang, which has a rental price of 140 USD/m²/lease term; Binh Xuyen Industrial Park in Vinh Phuc, at around 160 USD/m²; and Tam Duong Industrial Park in Vinh Phuc, at approximately 145 USD/m². While some industrial parks have rental rates higher than the regional average, northern Vietnam remains more affordable than the south, where the average price is 175 USD/m²/lease term, giving the region a competitive edge in attracting investment.
(Source: Cushman & Wakefield report)
Experts predict that industrial land rental prices in northern Vietnam will continue to increase by 4-8% per year from 2025 to 2027. For the ready-built warehouse and factory segment, the expected increase ranges from 0-4% per year, as the market continues to welcome new projects in key industrial zones.
With expanding supply and reasonable rental prices, northern Vietnam remains an attractive destination for both domestic and international investors. Leading provinces in FDI attraction in 2024 include Bac Ninh, Hai Phong, Quang Ninh, and Hanoi. Notably, the region has drawn 7 out of the world’s top 10 semiconductor corporations, with Bac Ninh alone hosting four major companies: Samsung Electronics, Amkor Technology, Hanmi Semiconductor, and Victory Giang.
Source: Quan Khu 7 Newspaper, Construction Newspaper
See more: Regulations on industrial land and housing ownership in Vietnam for foreign investors
See more: Industrial land rental prices in Hanoi reach 220 USD/m²
