INDUSTRIAL PARK (IP) LAND
SUPPLY: OVER 1,100 HA OF INDUSTRIAL LAND ENTERING THE MARKET
As of Q1 2026, the total accumulated industrial land supply in the region exceeded 25,100 hectares, (+4.7% QoQ; +17.9% YoY). During the quarter, the market recorded additional practical supply following the groundbreaking of five industrial parks in Hai Phong, Bac Ninh, and Ninh Binh, contributing more than 1,100 hectares of new leasable land. Among the newly added supply, Hai Phong accounted for approximately 68% of total new supply, followed by Bac Ninh (~21%) and Ninh Binh (~11%). The ongoing development of IP infrastructure continues to support the scale and prominence of established industrial centers such as Hai Phong and Bac Ninh while also reflecting the gradual extension of industrial development into emerging satellite markets, including Ninh Binh.
DEMAND: OCCUPANCY RATE DECLINES AMID SURGING SUPPLY
The average occupancy rate across the Northern industrial land market reached 63% in Q1 2026, representing a decline 2.4 ppts from Q4 2025. This trend was anticipated and does not signal a slowdown in demand. The decrease is largely attributable to the substantial influx of new supply from provinces within the Northern Key Economic Zones, where initial absorption rates tend to be lower and require a longer ramp-up period.
Underlying demand remains robust in established industrial hubs. Industrial land in Hanoi reached nearing full occupancy, while Bac Ninh continues to record a strong occupancy rate of approximately 74%. Leasing activity remains concentrated in high value-added industries, particularly technology, electronic components, and printed circuit board manufacturing.
RENT: SUSTAINABLE ANNUAL GROWTH TREND
The average asking rent for industrial land in Q1 2026 was 137.6 USD/sqm/lease term, recording a slight 1.4% increase QoQ. On a YoY basis, rent still grew 5.0%, confirming a sustainable upward trend in key industrial zones.
MARKET OUTLOOK: SUPPORTED BY INFRASTRUCTURE AND POLICY REFORM
Between 2026 and 2028, approximately 6,600 hectares of new industrial land are expected to enter the market from projects in the development pipeline. Supply growth will increasingly extend beyond established hubs into satellite and emerging locations, reinforcing Northern Vietnam’s position as a key manufacturing and logistics center.
The outlook is underpinned by continued investment in strategic infrastructure, notably Gia Hai Phong Hanoi Hung Yen Ninh Binh Phu Tho Quang Ninh $0 Occupancy rate Binh International Airport and upgrades to the North–South Expressway, alongside Avg. primary asking price Source: Cushman & Wakefield Research, Vietnam administrative streamlining following provincial consolidation, which is expected to improve market accessibility and support demand from high-tech and electronic components manufacturers
READY-BUILT FACTORY (RBF) (*)
SUPPLY: NEARLY 190,000 SQM ENTERING THE MARKET
In Q1 2026, the total accumulated stock of ready-built factories (RBF) in Northern Vietnam reached approximately 5.6 million sqm of leasable space (+3.5% QoQ; +12.0% YoY).
The market welcomed over 190,000 sqm of new leasable space, coming from three projects: SLP Tien Du in Bac Ninh Province, KCN Vietnam Phuc Dien Plot A8, and VNIC Hai Phong in Hai Phong Province
DEMAND: STABLE RBF OCCUPANCY SUPPORTED BY STRUCTURAL DEMAND
In Q1 2026, the average occupancy rate for ready-built factories (RBFs) in Northern Vietnam reached approximately 86%, (+0.7 ppts QoQ; +4.5 ppts YoY). Hanoi continued to lead the market, with occupancy nearing 100%, reflecting limited available supply and sustained tenant demand. Satellite provinces such as Hung Yen, Ninh Binh, and Phu Tho also recorded strong performance, with occupancy levels exceeding 88%, supported by their close proximity to Hanoi and improving connectivity. Meanwhile, occupancy in core industrial provinces such as Bac Ninh and Hai Phong moderated to approximately 80% and 84%, respectively, declining by around 3 ppts QoQ. This softening was largely attributable to the entry of new RBF supply in Q1 2026, all of which was concentrated in these two provinces and will require additional time for absorption. Leasing demand continues to be driven primarily by high-value manufacturing sectors, including electronic components, circuit board manufacturing, and selected traditional industries. These occupiers show a strong preference for RBF solutions due to their ability to shorten set-up timelines and accelerated operational commencement.
RENT: SLIGHT GROWTH OBSERVED
The average asking rent Northern RBFs in Q1 2026 remained stable at USD 5.0 per sq m per month, (+0.9% QoQ; 1.8% YoY). The upward movement was partly driven by minor rental adjustments in selected projects within core industrial zones, notably Bac Ninh and Hai Phong, where demand remains strong. In addition, the market recorded the introduction of new, higher-quality RBF developments, which command higher average rents, contributing to the overall increase in asking rates across the Northern market
MARKET OUTLOOK: INFRASTRUCTURE-LED GROWTH
Between 2026 and 2028, Northern Vietnam is expected to add nearly 918,000 sq m of new leasable industrial floor space, with a supply peak in 2026, driven by more than 674,000 sq m of new completions. The phased delivery of supply through 2028 is expected to support market balance while meeting sustained demand from FDI manufacturers in the electronics and high-tech sectors, particularly in Hai Phong, Bac Ninh, and Phu Tho. The outlook is underpinned by continued progress on strategic infrastructure projects, including Gia Binh International Airport and upgrades to the North–South Expressway, which will enhance regional connectivity and logistics efficiency. Demand momentum is further supported by the shift towards ESG-compliant and high-tech manufacturing, alongside administrative streamlining following provincial consolidation, reinforcing Northern Vietnam’s position as a leading regional hub for electronic components and semiconductor manufacturing and sustaining long-term high-quality FDI inflows
READY-BUILT WAREHOUSES (RBW) & MIXED-USE FACTORIES (RBH)(*)
SUPPLY: NO NEW SUPPLY ENTERING THE MARKET
No new RBW supply was delivered during Q1 2026. As of Q1 2026, the cumulative supply of ready-built warehouses (RBW) in Northern Vietnam stood at approximately 3.6 million sqm of net lettable area. The market remains highly concentrated in key logistics nodes, led by Bac Ninh, which accounts for 43.8% of total regional supply.
Outlook Other major markets include Hai Phong (23.7%), Hung Yen (19.4%), and Hanoi (approximately 6.6%), underscoring the close alignment between warehouse development and established industrial and logistics corridors.
DEMAND: MAINTAINING STABILITY
The occupancy rate of RBWs in Q1 2026 reached approximately 82%, (+2.5 ppts QoQ; +10.4 ppts YoY). Leasing demand remains concentrated in gateway locations and major consumption centres, where infrastructure connectivity is a key determinant of occupier decisions. Hanoi continues to record near-full occupancy at 100%, reflecting extremely limited supply conditions. Meanwhile, Hai Phong maintains strong operational performance with an occupancy rate of 85%, supported by its direct access to the deep-sea port system. In contrast, Bac Ninh, the largest warehouse market in Northern Vietnam with total stock exceeding 1.56 million sqm, currently records an occupancy rate of 72%. While this remains below the regional average, the province continues to attract large-scale logistics operators, underpinned by ample land availability and its strategic role in supporting storage and distribution needs for surrounding high-tech industrial clusters.
RENT: MAINTAINING STABILITY
The average asking rent for RBWs in Q1 2026 remained at 4.9 USD/sqm/month, unchanged QoQ and YoY. Rental stability reflects a balanced market, as steady leasing demand continues to be offset by sufficient existing supply, particularly in established logistics locations.
MARKET OUTLOOK: BAC NINH AND HAI PHONG – KEY DRIVERS OF FUTURE SUPPLY
Over the next three years, the Northern Key Economic Region is projected to deliver approximately 656,000 sqm of new ready-built warehouse (RBW) space. Upcoming supply will be heavily weighted towards Bac Ninh (around 53%) and Hai Phong (approximately 26%), further strengthening their positions as primary international logistics gateways supporting manufacturing activities and import-export flows.
Market momentum is expected to gain further traction from the anticipated breakthrough of the Free Trade Zone (FTZ) model, closely aligned with the master planning of a modern deep-sea port system and Gia Binh Airport. The convergence of advanced transport infrastructure, FTZ-related policy incentives, and the accelerating shift towards green (ESG-aligned) development is expected to be a key catalyst in attracting global supply chains. Together, these factors will strengthen Northern Vietnam’s position as a strategic node in the global logistics network
