Ready-built factory developed by KTG Industrial

Occupancy rates remain high in Hanoi, Bac Ninh, and Haiphong, underscoring the persistent need for high-quality industrial facilities. The total industrial land supply in the northern key economic region has now reached 23,563 hectares, up 37 per cent compared to the period before administrative mergers across the country.

In the first quarter alone, three new industrial parks (IPs) were launched in Phu Tho, Haiphong, and Ninh Binh, adding more than 700 ha of leasable land. The expansion highlights the north’s accelerating industrialisation and its efforts to close the gap with the south.

According to the latest report from Cushman & Wakefield, the average occupancy rate in northern IPs stands at 67 per cent. Demand remains particularly strong in several key provinces, with Hanoi nearing full capacity and Bac Ninh maintaining an 86 per cent occupancy rate. Leasing activity is driven mainly by electronics, circuit board, and high-tech component manufacturers.

The average rental rate reached $133 per square metre per lease cycle, up 4 per cent on-year, continuing a steady upward trend.

By 2028, northern Vietnam is projected to add about 6,500 ha of new industrial land. Among the key developments, Ninh Binh stands out with the Dong Van V and VI industrial park projects by Western Pacific, offering nearly 500ha for lease and an initial investment of around VND2.9 trillion ($116 million).

Developed under the Industrial Park & Logistics Cluster (LIC) model, Dong Van V features ready-built infrastructure, five-storey factories, and flexible land plots starting from 0.5ha – designed to attract both foreign investors and small and medium-sized enterprises (SMEs).

"Our goal is to develop physical infrastructure while creating an integrated industrial park ecosystem with comprehensive logistics," said Tran Anh Vuong, CEO of Western Pacific. "One where global investors and SMEs can connect, optimise value chains, and promote sustainable regional supply chain development."

Dong Van V IP focuses on enabling SMEs and suppliers in multi-tiered industrial chains to engage more deeply in the production ecosystem. Tier 2 suppliers, those producing specialised components or subassemblies for Tier 1 firms (which directly integrate into original equipment manufacturer end products), will receive priority support.

Meanwhile, Tier 3 suppliers, providing raw materials or semi-processed inputs to Tier 2, are also encouraged to participate, forming a closed three-tier supply chain that supports manufacturing at multiple levels of complexity and scale.

According to Cushman & Wakefield, as of the third quarter, Ninh Binh will have 5,000ha of industrial land and 3,000ha of planned expansion. Rental prices, ranging from $130–$140 per sq.m for lease cycle, are far lower than neighbouring areas, strongly attracting capital from Korea, Japan, China, the US, and Europe.

Major manufacturers such as Honda, Canon, Hyundai, and LG Display have already chosen Ninh Binh as a production hub, creating an industrial hive effect that spreads across the region.

Ready-built factory (RBF) supply in the North has reached 5.1 million sq.m, up 14 per cent. In the third quarter alone, nearly 100,000 sq.m of new space was added, including KTG Industrial VSIP Bac Ninh 2 (43,000 sq.m) and another project in Hung Yen province.

The occupancy rate of IPs remains high at 87 per cent, up 4 percentage points from the previous quarter. Hotspots include Hanoi (nearly 100 per cent), Hung Yen (93 per cent), Haiphong (87 per cent), and Bac Ninh (86 per cent).

The ready-built warehouse (RBW) segment is also vibrant, particularly in Bac Ninh and Haiphong, with total supply reaching 3.4 million sq.m, up 7.6 per cent. The occupancy rate increased 7 percentage points to 77 per cent, driven by year-end storage demand.

The expansion of administrative boundaries is forming a northern industrial belt with significant regional connectivity. A series of key projects such as Gia Binh International Airport and the expanded North-South Expressway will serve as new logistics backbones, helping reduce supply chain costs for enterprises.

Administrative mergers and infrastructure investments are shaping a seamless industrial-logistics ecosystem, paving the way for large-scale e-commerce distribution centres.

In summary, the northern region is entering a dual-growth cycle, expanding in both scale and quality. The administrative merger not only enlarges the map but also repositions the north as a new industrial growth pole for Vietnam.