Despite the unprecedented influx of new supply into the market, driven by administrative boundary adjustments and accelerated project licensing, absorption remains stable and rental prices continue their slight upward trend.
According to Nguyen Phuoc Thuan, Leasing Director of Cushman & Wakefield Viet Nam, the decision-making trends from tenants and investors are becoming increasingly selective, prioritising locations with long-term expansion potential, integrated infrastructure, and a clear legal framework. Locations with large land reserves and increasingly improved infrastructure will have significant advantages as manufacturers not only plan to enter the market but also aim to expand their operations over the next 5-10 years.
As the northern industrial market has entered a new phase of development, policy synchronisation and infrastructure readiness are becoming just as important as land availability, contributing to the formation of a transparent and efficient investment environment capable of attracting the next generation of manufacturing, electronics, and logistics businesses.
According to the report, by the end of Q4 2025, the total accumulated supply of industrial land in the northern market reached approximately 23,990 hectares. The market in the last quarter of the year continued its vibrant growth momentum with the addition of approximately 640 hectares of new industrial land from three strategic projects: Phuc Son Industrial Park (125 hectares), Que Vo 2 Industrial Park - Phase 2 (277.64 hectares), and Dong Van V Industrial Park in Ninh Binh (237 hectares).
This strong increase has been largely due to the redefinition of administrative boundaries and the merger of new provinces into the study area from the previous quarter, combined with the accelerated pace of new project licensing in 2025.
The industrial land market in the northern region recorded a net absorption of approximately 63 hectares in Q4 2025. The average occupancy rate across the region adjusted to 65.74%. This index represents a slight decrease compared to the 67% of the previous quarter and a decrease of about 2.26 percentage points compared to the 68% of the same period in 2024. The decline in the occupancy rate does not reflect a weakening of demand, but is mainly due to pressure from the large influx of new supply into the market, causing the actual absorption rate to lag behind the expansion of existing land.
The main drivers of demand in the quarter remained focused on high-tech industries, electronic component and circuit board manufacturing, exemplified by large-scale investment projects in the industrial hub of Bac Ninh. Looking at individual localities, Ha Noi continued to maintain a 100% occupancy rate due to land scarcity, while Bac Ninh maintained its attractiveness with an occupancy rate of 74.1%. Newly merged areas such as Quang Ninh (49.27%) and Phu Tho (52.87%) currently have average occupancy rates, creating significant potential to attract investors seeking large leased spaces at optimal costs.
Statistics showed that the average asking rent for industrial land across the northern region in Q4 2025 recorded a slight increase, reaching 135 USD/m2/lease term.
It is projected that during the 2026-2029 period, the market will receive approximately 5,050 hectares of new industrial land from projects currently under development. This expansion will not only focus on traditional industrial hubs but also spread strongly to satellite areas, helping to consolidate the northern region’s position as an important manufacturing and logistics centre of the country.
According to Dr. Nguyen Van Dinh, Vice Chairman of the Viet Nam Real Estate Association, the main growth drivers are the completion of strategic infrastructure projects such as Gia Binh International Airport and the expansion of the North-South Expressway, optimising the logistics network and inter-regional connectivity. Furthermore, the policy of administrative synchronisation after the provincial merger will remove legal barriers and create a favourable investment environment to attract multinational corporations in the high-tech and electronic components sectors.
Notably, by the end of Q4, 2025, the total accumulated supply of ready-built factory space (RBF) in the northern market reached 5,286,087 m2 of leasable floor area. The existing supply continues to grow, with Hai Phong continuing to lead the market share, accounting for nearly 45% of the entire region, followed by Bac Ninh with 23%.
A key strategic highlight is the simultaneous commencement of construction in key areas, creating momentum for future supply. Specifically, Ninh Binh province leads in new development scale with a total area of 92,728 m2, followed by Bac Ninh province with 84,000 m2 and Hai Phong city recording an additional 35,000 m2 of factory space for lease.
The ready-built factory (RBF) market in the North recorded an impressive net absorption of approximately 189,747 m2, a sharp increase of nearly 47.6% compared to 128,600 m2 in the same period of 2024. Thanks to strong demand, the occupancy rate across the region reached 86%, a significant breakthrough compared to 79% in the same period of 2024 and a slight decrease of 1 percentage point compared to 87% in the previous quarter.
This result confirmed that market absorption remains strong despite the continuous influx of existing supply, demonstrating the North’s position as a preferred destination in the global production chain. The main drivers of demand continue to focus on key sectors such as electronic component manufacturing, high-tech equipment, and precision mechanics.
Ha Noi has continued to maintain a 100% occupancy rate due to land scarcity, while neighbouring areas such as Hung Yen (95%), Ninh Binh (90%), and Hai Phong (87%) has continued to record stable demand. Maintaining high occupancy rates in these industrial hubs showed the effective shift of investors from the centre to satellite regions, creating a dynamic and seamlessly connected RBF (Regional Base Field) production belt across the region.
